CLEAN DEVELOPMENT MECHANISM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM-PoA-DD) Version 01 CONTENTS

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1 CDM Executive Board page 1 CLEAN DEVELOPMENT MECHANISM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM-PoA-DD) Version 01 CONTENTS A. General programme of activities (PoA) B. Duration of the programme of activities C. Environmental Analysis D. Stakeholder comments E. Application of a baseline and monitoring methodology to a typical CDM Programme Activity (CPA) Annexes Annex 1: Contact information on Coordinating/managing entity and participants of PoA Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan NOTE: This form is for the submission of a CDM PoA whose CPAs apply a large scale approved methodology. At the time of requesting registration this form must be accompanied by a CDM-CPA-DD form that has been specified for the proposed PoA, as well as by one completed CDM-CPA-DD (using a real case).

2 CDM Executive Board page 2 SECTION A. General programme of activities (PoA) A.1 Title of the programme of activities: City of Cape Town Landfill Gas Extraction and Utilisation Programme Version 01 Date: 23/03/2012 A.2. Description of the programme of activities: 1. General Operating and Implementing Framework of the PoA The operating framework of the PoA encapsulates the capture of landfill gas (LFG) at solid waste disposal sites (landfills) in the municipality of Cape Town, South Africa. The scenario existing prior to the start of the implementation of the project activity is the uncontrolled release of LFG to atmosphere (also the baseline scenario). LFG comprises predominantly methane (CH 4 ) and carbon dioxide (CO 2 ). CH 4 is a strong greenhouse gas (GHG) with a global warming potential approximately 21 times greater than that of CO 2. LFG which is captured from the landfills will be either (subject to the availability of sufficient gas supply): be combusted on-site in purpose built engines to generate electricity which will be exported to the South African grid system; or be combusted off-site for the generation of heat in boilers or air heaters by industrial processes close to the landfill. Greenhouse gas emissions will therefore be reduced by the capture and combustion of methane which would otherwise be released to the atmosphere. Each CPA will be implemented within the proposed PoA in accordance with the eligibility criteria outlined in this PoA-DD. In order to facilitate the development of the gas management projects, the City of Cape Town will enter into contractual agreements with technical specialists, who will be responsible for the implementation, management and monitoring of the LFG management systems at each site. 2. Policy/measure or stated goal of the PoA The goal of the proposed PoA is to: Contribute to sustainable development within Cape Town Municipality; Expand the use of renewable energy technologies in Cape Town Municipality. Reduce uncontrolled emissions of GHG to atmosphere; and Reduce other potentially adverse environmental effects of uncontrolled LFG (e.g. odour nuisance). 3. Confirmation that the proposed PoA is a voluntary action by the coordinating/managing entity It is confirmed that the implementation of this PoA is a voluntary action by the coordinating/managing entity (City of Cape Town). There are no mandatory requirements in South Africa regarding capturing and flaring or use of landfill gas.

3 CDM Executive Board page 3 Contribution to sustainable development The proposed PoA will contribute to sustainable development within Cape Town Municipality by virtue of the following: reducing GHG emissions by avoiding emissions of LFG to the atmosphere; reducing GHG emissions through the substitution of fossil-fuel based grid electricity use; increasing the use of renewable energy sources in the Cape Town area; reducing the potential for other issues including odour nuisance and explosion risk associated with uncontrolled emissions of LFG; transferring technology for efficient capture and utilisation of LFG; transferring knowledge and capacity building by implementation of the proposed PoA; and creating jobs as additional staff will be required during the development of a particular CPA, and then during the operation of the project activity in monitoring and operating the gas collection system. A.3. Coordinating/managing entity and participants of POA: The Coordinating entity of the PoA and which will communicate with the Board will be the City of Cape Town. The City will be appointing project implementers to develop individual CPAs as part of the PoA. These appointments will be made following the completion of a thorough and transparent procurement process. Name of Party involved (*) (host) indicates a Host Party Private and/or public entity(ies) project participants (*) (as applicable) Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) The Republic of South Africa (host) City of Cape Town No (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required. Full contact information for the project participants is provided in Annex 1. A.4. Technical the programme of activities: A.4.1. Location of the programme of activities: Within the municipal boundary for the City of Cape Town, as currently defined by the Local Government Municipal Demarcation Act (Act 27 of 1998). A Host Party(ies):

4 CDM Executive Board page 4 The Republic of South Africa A Physical/ Geographical boundary: With one possible exception, the CPAs included in the PoA will be implemented within the municipal boundary for the City of Cape Town as shown below. The exception is the potential site at Kalbaskraal. If this site is included, it falls partly outside the boundary of the municipal boundary as shown on the plan below.

5 PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM CDM Executive Board page 5

6 CDM Executive Board page 6 Figure 1: Municipal Boundary for the City of Cape Town

7 CDM Executive Board page 7 A.4.2. Description of a typical CDM programme activity (CPA): Each CPA under the proposed PoA will comprise the controlled extraction and collection of LFG, which will subsequently be combusted via a combination of flaring and use for either electricity generation or as a source of heat. A Technology or measures to be employed by the CPA: Prior to the implementation of the project activity, the pre-existing scenario (also the baseline scenario) is the uncontrolled release of landfill gas to atmosphere. The technology and measures to be employed by each CPA to collect LFG and either generate electricity or produce heat will include the following items of equipment: A network of vertical and horizontal landfill gas collection wells installed within the waste; Landfill gas collection pipework connected to the wells, which will draw the collected gas back to a single location (gas compound); Blowers to apply suction to the pipework, allowing the landfill gas to be extracted; Condensate management systems to remove excess liquid from the gas collection pipework; and An enclosed compound area which will provide the focal point for gas collection and also house associated monitoring instrumentation and data recording systems as required to monitor the CPA. Once the landfill gas has been captured, it will subsequently be combusted on-site to produce electricity which will be exported to the South African grid supply network (offsetting the consumption of power which would otherwise have been generated by fossil fuel sources) or carried by further pipework to an adjacent industrial location for combustion to generate heat. The additional items of equipment to be provided will comprise: For electricity generation: Purpose built landfill gas engines; and Transformer equipment and switchgear necessary to connect to the South African grid supply network. For heat generation: Additional pipework to transport collected gas to the designated off-site end user; and Additional blowers to ensure suitable rates of gas delivery (if required). Each CPA site will also be provided with an enclosed landfill gas flaring system which will be used to combust any gas which cannot otherwise be used to generate electricity or produce heat in the nearby industrial process. The general layout of the installation for the capture and utilisation of landfill gas is presented in Figures 2 and 3 below.

8 CDM Executive Board page 8 Figure 2: General Layout of the Installation (Electricity Generation) Figure 3: General Layout of the Installation (Combustion for Heat Generation) A Eligibility criteria for inclusion of a CPA in the PoA: In accordance with the requirements of the Standard for Demonstration of Additionality, Development of Eligibility Criteria and Application of Multiple Methodologies for Programme of Activities (Version 01.0), eligibility criteria to be considered prior to enrolling each CPA under the proposed POA will include the following:

9 CDM Executive Board page 9 Eligibility Criterion 1 The geographical boundary of the CPA is consistent with the geographical boundary of the POA. 2 The CPA is uniquely identified (e.g. by signage and site referencing) to avoid double counting 3 The CPA meets the applicability criteria set by ACM00001 Version and all associated tools which are relevant to the CPA 4 The CME has confirmed through documentary evidence that the start date of the CPA is not prior to the commencement of validation of the PoA 5 The CME confirms that funding from Annex I parties, if any, does not result in diversion of official development assistance 6 The CPA has in place the required environmental authorisations 7 Local stakeholder consultations have been undertaken prior to enrolment 8 The CPA will not receive funding from Annex I parties that results in a diversion of official development assistance 9 The baseline scenario comprises the atmospheric release of LFG, or partial capture and destruction of LFG to comply with regulations or contractual requirements, or to address safety and odour concerns. 10 The project activity comprises the capture of LFG and use in generating electricity or generating heat 11 The project activity would not otherwise be developed without the financial benefits provided by registration as a CDM project (the project is additional). The criteria for demonstrating additionality of a CPA are described in section E.5. A.4.3. Description of how the anthropogenic emissions of GHG by sources are reduced by a CPA below those that would have occurred in the absence of the registered PoA (assessment and demonstration of additionality): The Proposed PoA is additional because: The proposed PoA is a voluntary coordinated action by the City of Cape Town; There are no regulatory requirements in RSA regarding the capture and flaring or use of LFG and therefore such projects would not be implemented in the absence of the PoA; and Prevailing practice in RSA is for waste to be deposited in landfills or dumpsites without landfill gas capture. This is the current situation in Cape Town. Emissions of GHG will therefore be reduced, by the implementation of the CPAs, to a level below those that would have occurred in the absence of the registered PoA. A.4.4. Operational, management and monitoring plan for the programme of activities: A Operational and management plan:

10 CDM Executive Board page 10 The proposed PoA involves a range of operational activities which will be required to successfully implement and manage each CPA. Whilst overall responsibility for the PoA will lie with the City of Cape Town (as the Coordinating Managing Entity (CME)), technical support and management/monitoring input will be required for each CPA site from third parties (project implementers or their sub-contractors) within the PoA. As the coordinating/managing entity, the City of Cape Town will be responsible for the overall management of the PoA, collation of data and preparation of Monitoring Reports for verification purposes, and providing the interface with the DOE and UNFCCC EB. In order to deliver each CPA in the most effective manner, the City will enter into contractual agreements with partner organisations who will be responsible for the implementation, management and monitoring of landfill gas management systems at each CPA site. The City of Cape Town, through a clearly defined and structured procurement process, will ensure that all partner organisations and sub-contractors will satisfy the required standards of the PoA, ensuring the quality of the gas management systems and the management procedures are maintained at a consistently high level. Record Keeping System For each CPA, there will be a detailed monitoring plan and system of electronic data management (which will be automated where practicable) in place prior to the commencement of the first crediting period. Each site will have its own installed data capture systems which will be accessible to the verifying DOE. All relevant monitoring data will be compiled in an electronic workbook, and will be supported by field notes/records and details of all instrument/equipment calibrations (including dates and copies of calibration certificates where available). All data collected on each site will be provided to the CME in an agreed format to provide a central point for the maintenance of all records applicable to the PoA. Detailed roles and responsibilities will be defined and agreed as part of the procurement process which the City of Cape Town will undertake to secure suitably qualified and experienced technical support. These will be defined in a PoA Management Manual which will be developed and adopted prior to the start of the first PoA crediting period. The CME will be responsible for the regular collation, review and storage of monitoring data from each CPA. Avoiding Double Counting As each CPA site will be under the control of the CME, there will be no scope for double counting of emission reductions. Each CPA will be assigned a unique identification reference (including the landfill name and a numerical code) and data from each site will be managed and stored separately to facilitate the verification process. Subscription to the PoA Each CPA will take place on landfill sites which are under the control of the City of Cape Town and therefore the CME will be directly aware of those sites which are already included in the PoA. There will therefore be no formal requirement to seek further agreement for inclusion of a CPA within the PoA, and no potential for the City to be unaware of the inclusion of a CPA. A Monitoring plan:

11 CDM Executive Board page 11 The verification method will not use sampling, but each CPA will be verified on an individual basis. General monitoring measures are discussed further in Annex 4 and will be supplemented by CPA-specific considerations to be defined in each CPA-DD Section B.6.1. Each CPA will be identified by a unique reference number and name for clarity. Monitoring data and site records applicable to each CPA will be collected and stored in independent workbooks (likely to be spreadsheet based e.g. Microsoft Excel or similar). Collected data and other key information (e.g. instrument calibrations records) for each CPA will be reviewed on at least a monthly basis, and aggregated into summary monthly data reports which will be subject to QA checking by the CME, or it s appointed advisors. Monthly data reports will be stored electronically and aggregated for inclusion in CPA-specific monitoring reports which will be made available to the DOE for verification. A.4.5. Public funding of the programme of activities: The PoA does not obtain public funding. SECTION B. Duration of the programme of activities B.1. Starting date of the programme of activities: 28/11/2011 Starting date represents the confirmation of award of contract to SLR Consulting Limited to provide technical and project management support for the implementation of this Programme of Activities. B.2. Length of the programme of activities: 28 years C.1. Please indicate the level at which environmental analysis as per requirements of the CDM modalities and procedures is undertaken. Justify the choice of level at which the environmental analysis is undertaken: 1. Environmental Analysis is done at PoA level 2. Environmental Analysis is done at CPA level C.2. Documentation on the analysis of the environmental impacts, including transboundary impacts: Not applicable as analysis of environmental impacts is done at CPA level.

12 CDM Executive Board page 12 C.3. Please state whether in accordance with the host Party laws/regulations, an environmental impact assessment is required for a typical CPA, included in the programme of activities (PoA),: All CPA are a scheduled activity in terms of the National Environmental Management Waste Act 59 of 2008 (NEMWA) and Regulations (GN R718) and required a waste management licence in terms of section 49 of the NEMWA from the Department of Environmental Affairs (DEA). WSP Environment & Energy (WSP) was appointed to undertake the function of independent Environmental Assessment Practitioner in facilitating the waste management licence application procedure for each CPA which included a basic (environmental) assessment in accordance with the National Environmental Management Act 107 of 1998 (NEMA) and the related Environmental Impact Assessment (EIA) Regulations (GN R385), in terms of GN R718, Category A, Clause 13 (The extraction, recovery or flaring of landfill gas) and Clause 18 (The construction of facilities for activities listed in Category A). All CPA undertook this process and got issued with a valid waste management licence. Any additional environmental legal requirements are addressed at a CPA level. SECTION D. Stakeholders comments D.1. Please indicate the level at which local stakeholder comments are invited. Justify the choice: 1. Local stakeholder consultation is done at PoA level 2. Local stakeholder consultation is done at CPA level D.2. Brief description how comments by local stakeholders have been invited and compiled: Not applicable see specific CDM-CPA-DD D.3. Summary of the comments received: Not applicable see specific CDM-CPA-DD D.4. Report on how due account was taken of any comments received: Not applicable see specific CDM-CPA-DD SECTION E. Application of a baseline and monitoring methodology E.1. Title and reference of the approved baseline and monitoring methodology applied to each CPA included in the PoA: The proposed PoA uses the approved large-scale consolidated methodology ACM0001 Flaring or use of landfill gas Version The programme will also use the following tools:

13 CDM Executive Board page 13 Methodological tool Emissions from solid waste disposal sites (Version ); Combined tool to identify the baseline scenario and demonstrate additionality (Version ); Tool to determine project emissions from flaring gases containing methane ; Tool to calculate baseline, project and/or leakage emissions from electricity consumption (Version 01); Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion (Version 02); Tool to determine the remaining lifetime of equipment (Version 01); Tool to determine the baseline efficiency of thermal or electric energy generation systems (Version 01); Tool to determine the mass flow of a greenhouse gas in a gaseous stream (Version ); and Tool to calculate the emission factor for an electricity system (Version ) E.2. Justification of the choice of the methodology and why it is applicable to each CPA: The methodology ACM0001 Flaring or use of landfill gas (Version ) is applicable to each CPA as the project activities will: Install new LFG capture systems in new or existing SWDSs; Flare the LFG and/or use the captured LFG to: o generate electricity; o generate heat in a boiler, air heater or brick kiln; or o supply LFG to consumers through a natural gas distribution network; and not reduce the amount of organic waste that would be recycled in the absence of the project activity. The methodology is also applicable as the most plausible baseline scenario is partial or total release of the LFG from the SWDS, generation of electricity in the grid and generation of heat using fossil fuels. Applicability of Methodological tool Emissions from solid waste disposal sites (Version ) The tool is applicable to the POA under Application A: the CDM project activity mitigates methane emissions from a specific existing SWDS. The tool is applied for the ex-ante estimation of emissions in the CPA-DD. Emissions will be monitored during the crediting period using the appropriate approaches in the methodology ACM0001 Version Applicability of Combined tool to identify the baseline scenario and demonstrate additionality (Version ) The tool is applicable to the POA as its use is explicitly prescribed by methodology ACM0001 Version Applicability of Tool to determine project emissions from flaring gases containing methane The tool is applicable to the POA as the residual gas (LFG) contains the combustible gas methane, and the LFG is obtained from the decomposition of organic material in a landfill.

14 CDM Executive Board page 14 Applicability of Tool to calculate baseline, project and/or leakage emissions from electricity consumption (Version 01) The tool is applicable to the POA as electricity consumption will be either from the grid (Scenario A), from an off-grid fossil fuel fired captive power plant (Scenario B), or from a combination of the two sources (Scenario C). The scenario which is applicable to each CPA will be specified in the individual CPA-DD. Applicability of Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion (Version 02) The tool will be applicable to those CPAs within the POA which consume fossil fuels in the project activity, to calculate CO 2 emissions from fossil fuel combustion based on the quantity of fuel combusted and its properties. The application of the tool (where applicable) will be described in the individual CPA- DD. Applicability of Tool to determine the remaining lifetime of equipment (Version 01) The tool is applicable to the POA in cases where project activities involve the replacement of existing equipment with new equipment or which retrofit existing equipment as part of energy efficiency improvement activities. The application of the tool (where applicable) will be described in the individual CPA-DD. Applicability of Tool to determine the baseline efficiency of thermal or electric energy generation systems (Version 01) The tool is applicable to the POA in cases where project activities improve the energy efficiency of an existing system through retrofits or replacement of the existing system by a new system. The tool will be applied to energy generation systems that generate only electricity (and no heat) or produce only thermal energy (and no electricity). The application of the tool (where applicable) will be described in the individual CPA-DD. Applicability of Tool to determine the mass flow of a greenhouse gas in a gaseous stream (Version ) The tool is applicable to the POA as the flow and composition of residual or flared gases will be measured for the determination of baseline or project emissions. The gaseous stream that the tool will be applied to is the LFG delivery pipeline to each item of equipment. The greenhouse gas for which the mass flow will be determined is methane. Monitoring will be continuous and the simplification identified in the tool for calculating the molecular mass of the gaseous stream is confirmed as being valid in ACM00001 Version Applicability of Tool to calculate the emission factor for an electricity system (Version ) The tool is applicable to the estimation of the Operating Margin (OM), Build Margin (BM) and/or Combined Margin (CM) emission factor when calculating baseline emissions for a project activity that substitutes grid electricity, i.e. where a project activity supplies electricity to a grid or a project activity that results in savings of electricity that would have been provided by the grid (e.g. demand-side energy efficiency projects). This will be the case for CPAs which use LFG to generate electricity and therefore the tool will be applicable in those cases.

15 CDM Executive Board page 15 E.3. Description of the sources and gases included in the CPA boundary In accordance with methodology ACM0001 Version , the project boundary of the project activity (CPA) shall include the site where the LFG is captured and, as applicable: Sites where the LFG is flared or used; Captive power plants or power generation sources connected to the grid, which are supplying electricity to the project activity; Captive power plants or power generation sources connected to the grid, which are supplying electricity in the baseline that is displaced by electricity generated by captured LFG in the project activity; and Heat generation equipment or sources which are supplying heat in the baseline that is displaced by heat generated by captured LFG in the project activity. The CPA boundaries are presented graphically in Figures 4 and 5 below. Figure 4: Schematic Representation of the Project Boundary (Electricity Generation)

16 CDM Executive Board page 16 Figure 5: Schematic Representation of the Project Boundary (Heat Generation) Based on the information provided within methodology ACM0001 Version , the following sources of emissions and respective greenhouse gases are identified for the CPA. Table 1: Summary of greenhouse gases and sources included in and excluded from the project boundary Baseline Project Activity Source Gas Included Justification Emissions from decomposition of waste at the SWDS site Emissions from electricity generation Emissions from heat generation Emissions from fossil fuel consumption for purposes other than electricity generation or transportation due to the project activity CH 4 Yes The major source of emissions in the baseline N 2 O No N 2 O emissions are small compared to CH 4 emissions from SWDS. This is conservative. CO 2 No CO 2 emissions from decomposition of organic waste are not accounted since the CO 2 is also released under the project activity. CO 2 Yes Major emission source if power generation is included in the project activity. CH 4 No Excluded for simplification. This is conservative. N 2 O No Excluded for simplification. This is conservative. CO 2 Yes Major emission source if heat generation is included in the project activity. CH 4 No Excluded for simplification. This is conservative. N 2 O No Excluded for simplification. This is conservative. CO 2 Yes May be an important emission source. CH 4 No Excluded for simplification. This emission source is assumed to be very small. N 2 O No Excluded for simplification. This emission source is assumed to be very small. Emissions from CO 2 Yes May be an important emission source.

17 CDM Executive Board page 17 electricity consumption due to the project activity CH 4 No Excluded for simplification. This emission source is assumed to be very small. N 2 O No Excluded for simplification. This emission source is assumed to be very small. E.4. Description of how the baseline scenario is identified and the identified baseline scenario: Methodology ACM0001 Version requires use of the Combined tool to identify the baseline scenario and demonstrate additionality to identify the baseline scenario. The tool incorporates a series of steps as follows: Step 0: Demonstration whether the proposed project activity is the First-of-its-kind This step is optional and is not applied as the proposed project activity is not the First-of-its-kind. Step 1: Identification of alternative scenarios In accordance with the methodology, the following alternative scenarios are applicable to the PoA. LFG1: The project activity implemented without being registered as a CDM project activity (i.e. capture and flaring or use of LFG) LFG2: Atmospheric release of the LFG or partial capture of LFG and destruction to comply with regulations or contractual requirements, or to address safety and odour concerns LFG3: LFG is partially not generated because part of the organic fraction of the solid waste is recycled and not disposed in the SWDS LFG4: LFG is partially not generated because part of the organic fraction of the solid waste is treated aerobically and not disposed in the SWDS LFG5: LFG is partially not generated because part of the organic fraction of the solid waste is incinerated and not disposed in the SWDS E1: Electricity generation from LFG, undertaken without being registered as a CDM project activity E2: Electricity generation in existing or new on-site or off-site renewable based captive power plant(s) E3: Electricity generation in existing and/or new grid-connected power plants. H1: Heat generation from LFG undertaken without being registered as a CDM project activity H2: Heat generation in existing or new on-site or off-site fossil fuel fired cogeneration plant(s) H3: Heat generation in existing or new on-site or off-site renewable based cogeneration plant(s) H4: Heat generation in existing or new on-site or off-site fossil fuel based boiler(s), air heater(s) or kiln(s)

18 CDM Executive Board page 18 H5: Heat generation in existing or new on-site or off-site renewable energy based boiler(s), air heater(s) or kiln(s) H6: Any other source, such as district heat H7: Other heat generation technologies (e.g. heat pumps or solar energy) The combined tool also defines potential alternative scenarios as follows: S1: the proposed project activity undertaken without being registered as a CDM project activity S2: where applicable, no investment is undertaken by the project participants but third party(ies) undertake(s) investments or actions which provide comparable outputs or services to users of the project activity, for example: In the case of a greenfield power project, an alternative scenario may be that the project participants would not invest in another power plant but that power would be generated in existing and/or new power plants in the electricity grid. S3: where applicable, the continuation of the current situation, not requiring any investment or expenses to maintain the current situation, such as, inter alia: The continued venting of methane from a landfill; The continued release of N2O from adipic or nitric acid production. S4: Where applicable, the continuation of the current situation, requiring an investment or expenses to maintain the current situation, such as, inter alia: The continued use of an existing boiler involving expenses for operation and maintenance; The continued use of a specific fuel mix for power generation in existing power plant. S5: other plausible and credible alternative scenarios to the project activity scenario, including the common practices in the relevant sector, which deliver outputs or services (e.g. electricity, heat or cement) with comparable quality, properties and application areas, taking into account, where relevant, examples of scenarios identified in the underlying methodology. S6: where applicable, the proposed project activity undertaken without being registered as a CDM project activity to be implemented at a later point in time (e.g. due to existing regulations, end-of-life of existing equipment, financing aspects). Step 1 of the tool is broken down into two sub-steps which involve firstly identifying alternative scenarios to the proposed project activity (sub-step 1a) and then assessing consistency with mandatory applicable laws and regulations (sub-step 1b). The outcome of step 1 is a list of potential alternative scenarios which are compliant with prevailing legislation in the host country. The methodology also requires project participants to demonstrate that the identified baseline fuel used for generation of electricity and/or heat is available in abundance in the host country and there is no

19 CDM Executive Board page 19 supply constraint. The South African grid supply system is primarily based on combustion of fossil fuels, with around 95% of the supply being produced by coal and diesel 1 which are available in abundance. Step 2: Barrier Analysis Barrier analysis is then undertaken on the list of alternative scenarios identified by Step 1. This involves consideration of: Investment barriers; Technological barriers; Lack of prevailing practice; and Other barriers (if relevant). The outcome of Step 2 is a list of barriers that may prevent one or more of the identified alternative scenarios from occurring. If there is only one alternative scenario which is not prevented by any barrier, and this alternative scenario is not the proposed project activity undertaken without being registered as a CDM project activity, then this alternative scenario is identified as the baseline scenario. No investment analysis is required and project participants can proceed to Step 4 (see below). Step 3: Investment Analysis If, following completion of Step 2, there are still several scenarios remaining, including the proposed project activity undertaken without being registered as a CDM project activity, an investment analysis is required to compare the economic or financial attractiveness of the remaining alternative scenarios. The outcome of Step 3 (if required) is a ranking of the short list of remaining alternative scenarios from Step 2, according to the most suitable financial indicator, and taking into account the results of a sensitivity analysis. Step 4: Common Practice Analysis This provides a credibility check to demonstrate additionality by analysing the extent to which the proposed project type has already diffused in the relevant sector and geographical area. The proposed project activity is regarded as common practice if similar activities can be observed and essential distinctions between the proposed CDM project activity and similar activities cannot be identified. The outcome of Step 4 is a conclusion that the project is not regarded as common practice (and therefore additional) or is regarded as common practice (and is therefore not additional). Description of the Baseline Scenario The baseline scenario will be identified for each CPA but, under the requirements of this PoA is likely to comprise the continued atmospheric release of the LFG (LFG2 and S3), with electricity being generated in existing or new grid-connected power plants (E3 - where applicable) and heat being generated in 1 (accessed 31/01/2012).

20 CDM Executive Board page 20 existing or new on-site or off-site fossil fuel based boilers, air heaters or brick kilns (H4 and S4 where applicable). E.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the CPA being included as registered PoA (assessment and demonstration of additionality of CPA): E.5.1. Assessment and demonstration of additionality for a typical CPA: Additionality will be assessed for each project activity at CPA level using the Combined tool to identify the baseline scenario and demonstrate additionality as described in Section E.4 above. An example assessment of the additionality of a typical CPA (based on the generation of electricity end use) is presented below. The tool (Version ) comprises the following steps: Step 0: Demonstration whether the proposed project activity is the First-of-its-kind; Step 1: Identification of alternative scenarios; Step 2: Barrier analysis; Step 3: Investment analysis (if applicable); and Step 4: Common practice analysis. These steps are presented below. Step 0: Demonstration whether the proposed project activity is the First-of-its-kind This step is optional and is not applied as the proposed project activity is not the First-of-its-kind. Step 1: Identification of alternative scenarios This step serves to identify all alternative scenarios to the proposed CDM project activity which can be the baseline scenario via the following sub-steps: Sub-step 1a: Define alternative scenarios to the proposed CDM project activity Identification of the alternatives has been completed considering the scenarios derived from the methodology ACM0001 Version and described in Section E.4 above. Outcome of Step 1a The potential alternative baseline scenarios which have been identified for a typical CPA incorporating electricity generation are presented below: Scenario Baseline LFG Table 2: Alternative Scenarios to the CPA Electricity Description of Scenario 1 LFG2 (S3) E3 Atmospheric release of the landfill gas. Electricity generated in

21 CDM Executive Board page 21 existing grid connected power plants. (the baseline scenario). 2 LFG1 (S1) E1 The project activity undertaken without being registered under CDM. Electricity generation from LFG, undertaken without being registered as a CDM project activity. 3 LFG1 (S1) - The project activity limited to flaring only (no electricity or heat generation from LFG) and undertaken without being registered under CDM. 4 LFG5 (S5) E3 Development of an Energy from Waste (EfW) facility on site to treat the solid waste by incineration. Electricity generated in new grid connected power plant. Sub-step 1b: Consistency with mandatory applicable laws and regulations The following South African waste legislation governs the management of waste within the country 2. The South African Constitution (Act 108 of 1996) Hazardous Substances Act (Act 5 of 1973) Health Act (Act 63 of 1977) Environment Conservation Act (Act 73 of 1989) Occupational Health and Safety Act (Act 85 of 1993) National Water Act (Act 36 of 1998) The National Environmental Management Act (Act 107 of 1998) Municipal Structures Act (Act 117 of 1998) Municipal Systems Act (Act 32 of 2000) Mineral and Petroleum Resources Development Act (Act 28 of 2002) Air Quality Act (Act 39 of 2004) National Environmental Management: Waste Act, 2008 (Act 59 of 2008) Outcome of Step 1b All scenarios described above are compliant with this suite of legislation and therefore the list of potential alternatives remains unchanged as a result of Sub-step 1b. Step 2: Barrier analysis This step serves to identify barriers and to assess which alternative scenarios are prevented by these barriers. The latest approved version of the Guidelines for objective demonstration and assessment of barriers has been taken into account when applying this step. Sub-step 2a: Identify barriers that would prevent the implementation of alternative scenarios Investment barriers 2 South African Waste Information Centre (2012): Legislation. Available at (website accessed on 12/01/12)

22 CDM Executive Board page 22 The development of a landfill gas management and utilisation system requires a high capital outlay. Furthermore, the supply of electricity in South Africa continues to be dominated by Eskom, who are able to charge economical rates for supply based on economies of scale and the low cost, abundant supply of coal which exists. There is thus limited incentive for potential developers to get involved in energy generation projects. Despite recent developments implemented by the South African government to encourage renewable energy projects (initially known as REFIT and now the IPP procurement programme), there are still significant risks and uncertainties involved, which are unlikely to make such projects attractive to potential funders. Technological barriers Similar CDM projects have been developed in South Africa and therefore availability of the appropriate technology should not create a barrier to the proposed project activity. Lack of prevailing practice barriers No similar projects are being developed in South Africa without the support of CDM. The common practice for waste disposal is landfilling and there are no current regulations which require the capture and flaring or use of landfill gas. South African landfills which have gas extraction and utilisation infrastructure installed have been developed as CDM projects. Other barriers No other barriers are identified. Outcome of Step 2a Based on the analysis described above, the barriers which may prevent implementation of one or more of the alternative scenarios comprise: Prevailing practice barrier as demonstrated by the absence of similar projects in the Host Country without the support of CDM. Sub-step 2b: Eliminate alternative scenarios which are prevented by the identified barriers The analysis described above demonstrates that the following scenarios are prevented by at least one of the barriers listed in Sub-step 2a: Scenario 2 (investment and prevailing practice barrier); Scenario 3 (investment and prevailing practice barrier); and Scenario 4 (investment and prevailing practice barrier). Outcome of Step 2b The alternative scenarios to the project activity that are not prevented by any barrier are:

23 CDM Executive Board page 23 Scenario 1 - Atmospheric release of the landfill gas. Electricity generated in existing or new grid connected power plants. Outcome of Step 2 There is only one alternative scenario that is not prevented by any barrier, and this alternative scenario (Scenario 1) is not the proposed project activity undertaken without being registered as a CDM project activity. Therefore, Scenario 1 is identified as the baseline scenario. Registration of the CDM project activity will alleviate the investment and prevailing practice barriers that prevent the proposed project activity from occurring in the absence of the CDM, as demonstrated by the presence of similar CDM projects in South Africa. Step 3: Investment analysis The objective of investment analysis, if required, is to compare the economic or financial attractiveness of the alternative scenarios remaining after barrier analysis. The latest approved version of the Guidelines on the assessment of investment analysis will be taken into account when this step is applied for a CPA. The investment analysis will be presented in a transparent manner, with all relevant assumptions provided, in the CDM-CPA-DD where required. A sensitivity analysis will also be included to assess whether the conclusion regarding the financial attractiveness is robust to reasonable variations in the critical assumptions. Outcome of Step 3 The outcome of Step 3 (where applicable) will be a ranking of the shortlist of alternative scenarios according to the most suitable financial indicator, taking into account the results of the sensitivity analysis. Step 4: Common practice analysis The previous steps will be complemented with an analysis of the extent to which the proposed project type has already diffused in the relevant sector and geographical area. This will provide a credibility check to demonstrate additionality. Common practice within South Africa demonstrates that continuation of landfilling is the most viable option for disposal of municipal solid waste. As explained above, the prevailing common practice in South Africa is to deposit waste in dumps or landfills without the controlled extraction and use of landfill gas. Gas may be vented to atmosphere to reduce its concentration below hazardous levels, but landfill gas capture is not commonly installed. Other landfill gas capture projects in South Africa are operated or being developed as CDM projects, specifically 3 : 3 Source: CDM pipeline January 2012

24 CDM Executive Board page 24 CDM0243: Durban Landfill-gas-to-electricity project Mariannhill and La Mercy Landfills (1MW installed capacity) CDM0947: Durban Landfill-Gas Bisasar Road (6.5MW installed capacity) CDM1382: EnviroServ Chloorkop Landfill Gas Recovery Project (flaring only) CDM2588: Ekurhuleni Landfill Gas Recovery Project South Africa (currently flaring only, potential for 1MW at two landfill sites) CDM3633: Alton Landfill Gas to Energy Project (potential for up to 0.5MW). Step 4a: The proposed project activity applies measure(s) that are listed in the definitions section of the tool The proposed project activity incorporates methane destruction and therefore Step 4a applies. Sub-step 4a(1): Calculate the applicable output range as +/-50% of the design output or capacity of the proposed project activity. Using a theoretical generation capacity of 2MW, this results in an applicable output range of 1-3MW. Sub-step 4a(2): Identify all plants that deliver the same output or capacity within the applicable output range in the applicable geographical area. Using the applicable output range of 1-3MW identified above, there are no such plants being developed in South Africa which are not included in the CDM pipeline, therefore N all = 0. Sub-step 4a(3) As no similar plants are being developed within South Africa outside of the CDM process, N diff = 0. Sub-step 4a(4) As both N all and N diff are zero, and therefore factor F is also zero, the project is not regarded as common practice. Outcome of Step 4 Similar activities (i.e. the capture and use of landfill gas without the benefit of CDM) cannot be observed in the host country. The proposed project activity is not regarded as common practice and therefore the proposed project activity is additional. Conclusion The proposed CPA exceeds the requirements of prevailing legislation in South Africa and, in the absence of CDM, is clearly not the most financially attractive option for the project developer (City of Cape Town) and therefore the proposed project activity is additional. Prior Consideration of CDM

25 CDM Executive Board page 25 Date July 2011 Prior Consideration of CDM Transaction advice study completed that included technical, legal and financial feasibility 31 October 2011 Approval given for procurement of CDM consultancy support City s Bid Adjudication Committee minutes of 31 October 2011: item SCMB- 95/10/11 5 August 2011 Consultancy contract advert published. Contract notice published on webpage showing tenders awarded on the City s SCM website 4 November 2011 Consultancy contract awarded at BAC meeting 31 October Award letters were sent to the contractor on 4 November 2011 March 2012 Prior notification to DNA and UNFCCC Secretariat E.5.2. Key criteria and data for assessing additionality of a CPA: The key criteria for assessing additionality of a CPA when proposed to be included in the registered PoA will be based on the example additionality assessment undertaken in E.5.1 above. Key criteria to be assessed at the time of inclusion of a typical CPA will include: That the baseline scenario comprises the atmospheric release of LFG, or partial capture and destruction of LFG to comply with regulations or contractual requirements, or to address safety and odour concerns; That common practice for disposal of solid waste is landfilling; and That the project activity would not otherwise be developed without the financial benefits provided by registration as a CDM project. Barrier analysis or (if required) investment analysis will be carried out for the CPA to provide supporting evidence of additionality. E.6. Estimation of Emission reductions of a CPA: E.6.1. Explanation of methodological choices, provided in the approved baseline and monitoring methodology applied, selected for a typical CPA: All methodological choices selected for CPAs which are to be included in this POA are defined by methodology ACM0001 (Version ) and the relevant associated tools as listed in Section E.1. Baseline Emissions Baseline emissions in any given year y are defined in the methodology as the sum of: baseline emissions of methane from the SWDS (BE CH4,y ); baseline emissions associated with electricity generation (BE EC,y ); baseline emissions associated with heat generation (BE HG,y ); and baseline emissions associated with natural gas use (BE NG,y ). BE CH4,y will be calculated ex-ante using Step A.1.1 of the methodology and the Methodological tool Emissions from solid waste disposal sites (Version ).

26 CDM Executive Board page 26 Baseline emissions of methane from the SWDS will be calculated ex-post based on the amount of methane which is captured, flared and used in accordance with the Tool to determine the mass flow of a greenhouse gas in a gaseous stream (Version ). Where applicable, BE EC,y will be calculated using Step B of the methodology and the Tool to calculate baseline, project and/or leakage emissions from electricity consumption (Version 01). Where applicable, BE HG,y will be calculated using Step C of the methodology and the Tool to determine the baseline efficiency of thermal or electric energy generation systems (Version 01). Where applicable, BE NG,y will be calculated using Step D of the methodology and the Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion (Version 02). Project Emissions Project emissions are defined in the methodology as the sum of emissions from consumption of electricity due to the project activity and emissions from consumption of fossil fuels due to the project activity, for purposes other than electricity generation. The former will be calculated using the Tool to calculate baseline, project and/or leakage emissions from electricity consumption. Where applicable, the latter will be calculated using the Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion (Version 02). Any project emissions which are attributable to flaring of LFG will be calculated in accordance with the methodological Tool to determine project emissions from flaring gases containing methane. Leakage ACM0001 Version states that no leakage effects are required to be accounted for under the methodology. Emission Reductions Following completion of the above procedures, emission reductions (ER y ) are calculated simply by subtracting project emissions (PE y ) from baseline emissions (BE y ). E.6.2. Equations, including fixed parametric values, to be used for calculation of emission reductions of a CPA: Baseline Emissions Baseline emissions are determined according to equation 1 of ACM0001 Version as follows: BE y = BE CH4,y + BE EC,y + BE HG,y + BE NG,y Where: BE y = Baseline emissions in year y (t CO 2 e/yr) BE CH4,y = Baseline emissions of methane from the SWDS in year y (t CO 2 e/yr)

27 CDM Executive Board page 27 BE EC,y = Baseline emissions associated with electricity generation in year y (t CO 2 /yr) BE HG,y = Baseline emissions associated with heat generation in year y (t CO 2 /yr) BE NG,y = Baseline emissions associated with natural gas use in year y (t CO 2 /yr) Step A: Baseline emissions of methane from the SWDS (BE CH4,y ) Baseline emissions of methane from the SWDS are determined as follows, based on the amount of methane that is captured under the project activity and the amount that would be captured and destroyed in the baseline. In addition, the effect of methane oxidation that is present in the baseline and absent in the project is taken into account: 4 BE CH4,y = ( 1- OX top_layer ) ( F CH4,PJ,y F CH4,BL,y ) GWP CH4 Where: BE CH4,y = Baseline emissions of LFG from the SWDS in year y (t CO 2 e/yr) OX top_layer = Fraction of methane in the LFG that would be oxidized in the top layer of the SWDS in the baseline (dimensionless) F CH4,PJ,y = Amount of methane in the LFG which is flared and/or used in the project activity in year y (t CH 4 /yr) F CH4,BL,y = Amount of methane in the LFG that would be flared in the baseline in year y (t CH 4 /yr) GWP CH4 = Global warming potential of CH 4 (t CO 2 e/t CH 4 ) In accordance with ACM0001 Version , the following values are applied: OX top_layer = 0.1 (default value for baseline calculations stipulated in ACM0001 Version ); F CH4,BL,y = 0 (where there is no capture, flaring or use of landfill gas in the baseline scenario and therefore Case 1 of ACM0001 Version applies); and GWP CH4 = 21(default value stipulated in ACM0001 Version ). ex-ante Calculations F CH4,PJ,y is calculated ex-ante as follows: F CH4, PJ, y = η BE PJ CH4,SWDS,y /GWP CH4 Where: 4 OX top-layer is the fraction of the methane in the LFG that would oxidize in the top layer of the SWDS in the absence of the project activity. Under the project activity, this effect is reduced as a part of the LFG is captured and does not pass through the top layer of the SWDS. This oxidation effect is also accounted for in the methodological tool Emissions from solid waste disposal sites. In addition to this effect, the installation of a LFG capture system under the project activity may result in the suction of additional air into the SWDS. In some cases, such as with a high suction pressure, the air may decrease the amount of methane that is generated under the project activity. However, in most circumstances where the LFG is captured and used this effect was considered to be very small, as the operators of the SWDS have in most cases an incentive to main a high methane concentration in the LFG. For this reason, this effect is neglected as a conservative assumption.

28 CDM Executive Board page 28 F CH4,PJ,y = Amount of methane in the LFG which is flared and/or used in the project activity in year y (t CH 4 /yr) BE CH4,SWDS,y = Amount of methane in the LFG that is generated from the SWDS in the baseline scenario in year y (t CO 2 e/yr) η PJ = Efficiency of the LFG capture system that will be installed in the project activity GWP CH4 = Global warming potential of CH 4 (t CO 2 e/t CH 4 ) In accordance with ACM0001 Version , the following values are applied: η PJ = 0.5 (default assumption of 50% collection efficiency); and GWP CH4 = 21(default value stipulated in ACM0001 Version ) BE CH4,SWDS,y has been determined using the methodological tool Emissions from solid waste disposal sites. The following guidance has been taken into account when applying the tool: f y in the tool is assigned a value of 0 because the amount of LFG that would have been captured and destroyed is already accounted for in equation 2 of methodology ACM0001 Version ; In the tool, x begins with the year that the SWDS started receiving wastes (e.g. the first year of SWDS operation); and Sampling to determine the fractions of different waste types is not necessary because the waste composition has been obtained from previous studies. Step B: Baseline emissions associated with electricity generation (BE EC,y ) The following step will only be applicable to those CPAs where the LFG is used to generate electricity. This will be clearly identified in the CDM-CPA-DD. The baseline emissions associated with electricity generation in year y (BE EC,y ) are calculated using the Tool to calculate baseline, project and/or leakage emissions from electricity consumption. Where: The source of electricity consumption in the baseline is the South African grid system (Scenario A as defined within the tool). Option A1 allows the calculation of the combined margin emission factor for the applicable electricity system, using the procedures in the latest version of the Tool to calculate the emission factor for an electricity system (EF EL,j/k/l,y = EF grid,cm,y ). This option produces a lower emission factor value (see below) and therefore provides a conservative estimate of baseline emissions and emission reductions.

29 CDM Executive Board page 29 Grid Emission Factor The Grid Emission Factor (GEF) is calculated in accordance with the Tool to calculate the emission factor for an electricity system (Version ). The tool requires project participants to apply the following six steps: STEP 1. Identify the relevant electricity systems; STEP 2. Choose whether to include off-grid power plants in the project electricity system (optional); STEP 3. Select a method to determine the operating margin (OM); STEP 4. Calculate the operating margin emission factor according to the selected method; STEP 5. Calculate the build margin (BM) emission factor; STEP 6. Calculate the combined margin (CM) emission factor. Step 1. Identify the relevant electricity systems The tool defines a project s electricity system as the spatial extent of the power plants that are physically connected through transmission and distribution lines to the project activity and that can be dispatched without significant transmission constraints. On this basis, the project electricity system will comprise all of the power plants attached to the Republic of South Africa national grid system (see Annex 3). Step 2. Choose whether to include off-grid power plants in the project electricity system The tool allows project participants to choose between two options, specifically: Option I: only grid power plants are included in the calculation; or Option II: both grid power plants and off-grid power plants are included in the calculation. For the purposes of calculating the combined margin emission factor, Option I is selected as grid power plants predominate in the provision of electricity in South Africa. Step 3. Select a method to determine the operating margin (OM) The tool allows the OM to be calculated using one of the following four methods: (a) Simple OM; or (b) Simple adjusted OM; or (c) Dispatch data analysis OM; or (d) Average OM. Option (a) Simple OM can only be used is low-cost/must-run resources constitute less than 50% of total grid generation in either the average of the five most recent years or based on long-term averages for hydroelectricity production. Data are published in Eskom Annual Reports which show the composition of the RSA grid system. The 2011 report demonstrated that the average of the five most recent years ( ) was approximately 93% in terms of coal fired power generation (see Annex 3). Therefore the Simple OM option is applied. The ex-ante option is applied to calculate the OM emission factor based on the most recent 3-year generation weighted average data available at the time of the submission of this CDM-PoA-DD to the

30 CDM Executive Board page 30 DOE for validation. Data are provided on the Eskom website 5 for the years 2008/2009, 2009/2010 and 2010/2011. Step 4. Calculate the operating margin emission factor according to the selected method The simple OM emission factor is calculated as the generation-weighted average CO 2 emissions per unit net electricity generation (tco 2 /MWh) of all generating power plants serving the system, not including low-cost/must-run power plants/units. The tool allows simple OM to be calculated using one of the following two options: Option A: Based on the net electricity generation and a CO 2 emission factor of each power unit; or Option B: Based on the total net electricity generation of all power plants serving the system and the fuel types and total fuel consumption of the project electricity system. Option A is selected as the necessary data are available and are published by Eskom. Under Option A, the simple OM emission factor is calculated based on the following equation: The CO 2 emission factor for each power unit m is determined using Option A1, as data on fuel consumption and electricity generation is available, based on the following equation: 5 (website accessed 22/02/12).

31 CDM Executive Board page 31 The full set of data used in the calculation of the Operating Margin are provided in the accompanying spreadsheet _RSA_GEF_Calcs which demonstrates a value of: EF grid,omsimple,y = tco2/mwh Step 5. Calculation of the build margin (BM) emission factor In terms of vintage of data, Option 1 is selected. For the first crediting period, the build margin emission factor is calculated ex ante based on the most recent information available on units already built for sample group m at the time of CDM-PoA-DD submission to the DOE for validation. The most recent information available covers the period For future crediting periods, the build margin emission factor will be calculated in accordance with the requirements of Option 1 under Step 5 of the tool. The sample group of power units m is determined by a staged process commencing with the identification of the set of five power units, excluding power units registered as CDM project activities, that started to supply electricity to the grid most recently (SET 5-units ) and determination of their annual electricity generation (AEG SET-5-units, in MWh) (step a). The following set has been identified (taken from the accompanying spreadsheet _RSA_GEF_Calcs. Plant Name Capacity (MW) Commission Date Fuel Type Low Cost / Must- run Electricity Generation (MWh) 2007/8 2008/9 2009/ /11 3- Year Total Average Contribution (%) Grootvlei* /03/2008 Coal N 237,138 1,249,556 2,656,230 3,546,952 7,452,738 2,484, % Camden* 1,430 31/03/2005 Coal N 5,171,057 6,509,079 7,472,070 7,490,836 21,471,985 7,157, % Komati* /01/2009 Coal N 0 0 1,016,023 2,060,141 3,076,164 1,025, % Majuba 3,843 01/04/1996 Coal N 23,680,971 22,676,924 22,340,081 24,632,585 69,649,590 23,216, % Kendal 3,840 01/10/1988 Coal N 26,517,420 23,841,401 23,307,031 25,648,258 72,796,690 24,265, % AEG SET- 5- units 63,378,772 The next step (b) is to identify the set of power units (SET 20% ), excluding power units registered as CDM project activities, that started to supply the grid most recently and that comprise 20% of the annual

32 CDM Executive Board page 32 electricity generation of the project activity system (AEG total, in MWh), and determine their annual electricity generation (AEG SET 20%, in MWh). The following set has been identified (taken from the accompanying spreadsheet _RSA_GEF_Calcs ). Plant Name Capacity (MW) Commission Date Fuel Type Low Cost / Must- run Electricity Generation (MWh) 2007/8 2008/9 2009/ /11 Majuba 3,843 01/04/1996 Coal N 23,680,971 22,676,924 22,340,081 24,632,585 69,649,590 23,216, % Kendal 3,840 01/10/1988 Coal N 26,517,420 23,841,401 23,307,031 25,648,258 72,796,690 24,265, % 22.83% AEG SET - >20% 50,280, Year Total Average Contribution (%) SET sample is then determined (step c) from SET 5-units and SET 20% by selecting the set of power units that comprises the larger electricity generation. In this case, SET 5-units is selected as SET sample. As several of the units in SET sample started to supply electricity to the grid more than 10 years ago, further steps (d-f) must be applied in the calculation of the build margin. Units which started to supply electricity to the grid more than 10 years ago are initially removed from SET sample. Step d) requires consideration of CDM project activities and their contribution to the annual electricity generation of the project electricity system. However, Eskom does not publish such data and therefore only steps e) and f) have been applied. Step e) requires the re-inclusion of power units that started to supply electricity to the grid more than 10 years ago, until the electricity generation of the new set comprises 20% of the annual electricity generation of the project electricity system (if 20% falls on part of the generation of a unit, the generation of that unit is fully included in the calculation. Step f) concludes by establishing the sample group of power units m used to calculate the build margin, which is the resulting set (SET sample-cdm->10yrs ). The calculations determine that SET sample-cdm->10yrs is equivalent to SET sample above. The build margin emission factor is the generation-weighted average emission factor (tco 2 /MWh) of all power units m during the most recent year y for which electricity generation data is available, calculated as follows:

33 CDM Executive Board page 33 As the power units included in the build margin m correspond to the sample group SET sample-cdm->10yrs the tool determines that only option A2 from guidance in Step 4 (a) can be used and the default values provided in Annex 1 of the tool shall be used to determine the parameter η m,y. The following equation is applied: On the basis of the above, the calculated build margin emission factor is EF grid,bm,y = tco2/mwh Step 6. Calculation of the combined margin emission factor Calculation of the combined margin (CM) emission factor (EF grid,cm,y ) can be based on one of the following methods: (a) Weighted average CM; or (b) Simplified CM. The weighted average CM method is used as the preferred option.

34 CDM Executive Board page 34 The tool states that for all projects other than wind and solar power generation project activities, default values of 0.5 should be applied for both W OM and W BM for the first crediting period. On this basis, the combined margin emission factor for the first crediting period is: EF grid,cm,y = tco 2 /MWh Full details of the above emission factor calculations are presented in the accompanying spreadsheet _RSA_GEF_Calcs. The technical transmission and distribution losses for providing electricity from the grid system are published by Eskom, and therefore the published data can be applied. The following values will therefore be applied to the ex-ante calculations: EF EL,k,y = TDL k,y = current data published by Eskom (5.68% for 2010/11) k = the South African national grid system EC BL,k,y is calculated by multiplying the electricity generation potential of the project (in MW) by 8,000 hours as a conservative assumption (equating to approximately 91% engine operating time in any given year). The calculation also conservatively considers transformer losses for supply of electricity to the grid of 6% (typical value for LFG utilisation projects). Step C: Baseline emissions associated with heat generation (BE HG,y ) The following step will only be applicable to those CPAs where the LFG is used to generate heat. This will be clearly identified in the CDM-CPA-DD. According to ACM0001 Version , the baseline emissions associated with heat generation in year y (BE HG,y ) are determined based on the amount of methane in the LFG which is sent to the heat generation equipment in the project activity (boiler, air heater and/or kiln), as follows: BE HG, y = NCV CH4 n ( R efficiency, j,y FCH4,HG,dest,j,y EFCO2,BL,HG, j ) j= 1 Where: BE HG,y = Baseline emissions associated with heat generation in year y (t CO 2 /yr) NCV CH4 = Net calorific value of methane at reference conditions (TJ/t CH 4 ) R efficiency,j,y = Ratio of the project and baseline efficiency of heat equipment type j in year y F CH4,HG,dest,j,y = Amount of methane in the LFG which is destroyed for heat generation by equipment type j in year y (t CH 4 /yr) EF CO2,BL,HG,j = CO 2 emission factor of the fossil fuel type used for heat generation by equipment type j in the baseline (t CO 2 /TJ) j = Heat generation equipment (boiler, air heater or kiln) n = Number of different heat generation equipment used in the project activity The values used in the ex-ante calculations are as follows: NCV CH4 = (default value specified in the methodology) R efficiency,j,y = 0.67 (default values of 0.6 (project) and 0.9 (baseline) specified in the methodology)

35 CDM Executive Board page 35 F CH4,HG,dest,j,y = equivalent to the ex-ante values of F CH4,PJ,y calculated in Step A above. EF CO2,BL,HG,j = applicable to the fossil fuel type in each specific CPA j = boiler n = 1 Step C.1: Determination of R efficiency,j,y The ratio of the project and baseline efficiency of an air heater, boiler or kiln is determined as follows: ηhg,pj, j,y R efficiency,j,y = min 1; (18) ηhg,bl,j Where: R efficiency,j,y = Ratio of the project and baseline efficiency of equipment type j in year y η HG,BL,j = Efficiency of the heat generation equipment type j used in the baseline η HG,PJ,y = Efficiency of the heat generation equipment type j used in the project activity in year y j = Heat generation equipment type (boiler, air heater or kiln) To estimate the baseline energy efficiency of an air heater, boiler or kiln (η HG,BL,j ) project participants shall apply the Tool to determine the baseline efficiency of thermal or electric energy generation systems. Default values are applied as referenced above. Step C.2: Determination of F CH4,HG,dest,j,y The amount of methane that is destroyed in the LFG that is sent to heat generation equipment j is determined with equation 19 if j is a boiler or air heater. F CH4, HG,dest,j,y = fd CH4,HG, j,default F CH4,HG, j,y (19) Where: F CH4,HG,dest,j,y = Amount of methane in the LFG which is destroyed for heat generation by equipment type j in year y (t CH 4 /yr) fd CH4,HG,j,default = Default value for the fraction of methane destroyed when used for heat generation equipment type j F CH4,HG,j,y = Amount of methane in the LFG which is used for heat generation equipment type j in year y (t CH 4 /yr) F CH4,HG,j,y is determined according to Step A.1, where j is each item of heat generation equipment: Step D: Baseline emissions associated with natural gas use (BE NG,y ) BE NG,y is estimated as follows: BE NG, y = LFG NG,y NCV LFG,NG,y EF CO2,NG,y Where: BE NG,y LFG NG,y = Baseline emissions associated with natural gas use in year y (t CO 2 /yr) = Amount of upgraded LFG sent to the natural gas network due to the project activity in year y (Nm 3 /yr)

36 CDM Executive Board page 36 NCV LFG,NG,y EF CO2,NG,y = Net Calorific Value of upgraded LFG sent to the natural gas network due to the project activity in year y (TJ/Nm 3 ) = Average CO 2 emission factor of natural gas in the natural gas network in year y (t CO 2 /TJ) EF CO2,NG,y is determined using the Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion. The parameter BE NG,y is not applied as the POA will not include substitution of the use of natural gas. BE NG,y is therefore assigned a value of zero. ex-post Calculations Step A.1: Ex post determination of F CH4,PJ,y During the crediting period, the key parameter is F CH4,PJ,y which is determined as the sum of the quantities of methane flared and used in power plant(s), boiler(s), air heater(s), kiln(s) and natural gas distribution network, as follows: F = F + F + F + F (3) CH4, PJ,y CH4,flared,y CH4,EL,y CH4,HG,y CH4, NG,y Where: F CH4,PJ,y = Amount of methane in the LFG which is flared and/or used in the project activity in year y (t CH 4 /yr) F CH4,flared,y = Amount of methane in the LFG which is destroyed by flaring in year y (t CH 4 /yr) F CH4,EL,y = Amount of methane in the LFG which is used for electricity generation in year y (t CH 4 /yr) F CH4,HG,y = Amount of methane in the LFG which is used for heat generation in year y (t CH 4 /yr) F CH4,NG,y = Amount of methane in the LFG which is sent to the natural gas distribution network in year y (t CH 4 /yr) The working hours of the power plant(s), boiler(s), air heater(s) and kiln(s) should be monitored and no emission reduction should be claimed for methane destruction during non-working hours. F CH4,EL,y, F CH4,HG,y and F CH4,NG,y are determined using the Tool to determine the mass flow of a greenhouse gas in a gaseous stream. The following requirements apply: The gaseous stream the tool shall be applied to is the LFG delivery pipeline to each item of electricity generation or heat generation equipment j, or the natural gas distribution system. F CH4,EL,y and F CH4,HG,y y are then calculated as the sum of mass flows to each item of electricity generation or heat generation equipment j; CH 4 is the greenhouse gases for which the mass flow should be determined; The flow of the gaseous stream should be measured on continuous basis; The simplification offered for calculating the molecular mass of the gaseous stream is valid (equations 3 or 17 in the tool); and The mass flow should be summed to a yearly unit basis (t CH 4 /yr).

37 CDM Executive Board page 37 The mass flow of the greenhouse gas methane (F CH4,t ) will be monitored continuously and Option F within the tool will be applied. Amount of methane destroyed by flaring (F CH4,flared,y ) F CH4,flared,y is determined as the difference between the amount of methane supplied to the flare(s) and any methane emissions from the flare(s), as follows: F CH4, flared,y PE flare,y = FCH4,sent_flare,y (4) GWP CH4 Where: F CH4,flared,y = Amount of methane in the LFG which is destroyed by flaring in year y (t CH 4 /yr) F CH4,sent_flare,y = Amount of methane in the LFG which is sent to the flare in year y (t CH 4 /yr) PE flare,y = Project emissions from flaring of the residual gas stream in year y (t CO 2 e/yr) GWP CH4 = Global warming potential of CH 4 (t CO 2 e/t CH 4 ) F CH4,sent_flare,y is determined directly using the Tool to determine the mass flow of a greenhouse gas in a gaseous stream, applying the requirements described above where the gaseous stream the tool shall be applied to is the LFG delivery pipeline to the flare(s). The mass flow of the greenhouse gas methane (F CH4,t ) will be monitored continuously and Option F within the tool will be applied. PE flare,y shall be determined using stepped procedure and equations provided in the Tool to determine project emissions from flaring gases containing methane. If LFG is flared through more than one flare, then PE flare,y is the sum of the emissions for each flare determined separately. For each CPA, enclosed flares will be used and the default flare efficiency value of 90% will be applied. Flare temperature will also be monitored to ensure that combustion temperatures are in excess of 500ºC in any particular hour. Where such temperatures are not achieved, or if no record is available, the flare efficiency during that hour will be assumed to be zero. Project Emissions Project emissions are calculated as follows: PE = PE + PE y Where: EC,y FC,y PE y = Project emissions in year y (t CO 2 /yr) PE EC,y = Emissions from consumption of electricity due to the project activity in year y (t CO 2 /yr) PE FC,y = Emissions from consumption of fossil fuels due to the project activity, for purpose other than electricity generation, in year y (t CO 2 /yr) PE EC,y is calculated according to the Tool to calculate baseline, project or leakage emissions from electricity consumption using the following equation Where:

38 CDM Executive Board page 38 The source of electricity consumption in the project is most likely to be the South African grid system (Scenario A as defined within the tool). Option A2, which allows the use of conservative default values for the grid emission factor, is applicable since Scenario A applies to both the baseline and the project electricity consumption sources; and the electricity consumption of the project sources is greater than the electricity consumption of the baseline sources, as required by the tool. Use of the conservative default value for grid emission factor produces a higher level of project emissions and hence a conservative calculation of emission reductions. The technical transmission and distribution losses for providing electricity from the grid system are published by Eskom, and therefore the published data can be applied. EC PJ,j,y will be calculated based on the anticipated electricity demand for the project, which will be determined at CPA level. The following values will therefore be applied to the ex-post calculations: EF EL,j,y = 1.3 (default value) TDL j,y = current data published by Eskom j = the South African national grid system If applicable, PE FC,y will be calculated using the Tool to calculate project or leakage CO 2 emissions from fossil fuel combustion and will be clearly documented in the CDM-CPA-DD. Emission Reductions Emission reductions are calculated as follows: ER y = BE y PE y Where: ER y = Emission reductions in year y (t CO 2 e/yr) BE y = Baseline emissions in year y (t CO 2 e/yr) PE y = Project emissions in year y (t CO 2 /yr) E.6.3. Data and parameters that are to be reported in CDM-CPA-DD form: Data / Parameter: Data unit: Source of data used: Regulatory requirements relating to landfill gas n/a Regulatory requirements for landfill gas management in RSA Publicly available information in the host country (e.g.

39 CDM Executive Board page 39 Value applied: Justification of the choice of data or Zero for the first crediting period The most recent legislation applicable to landfill management in South Africa is the draft Minimum Requirements for Waste Disposal by Landfill published in Active capture, flaring and/or destruction of LFG is not stated as a mandatory requirement, the minimum requirements provide safety guidelines relating to controlling accumulations of LFG by use of passive venting. Furthermore, the CPA Landfill Permit will be reviewed to ensure that it does not require the capture, flaring or use of LFG. Information will be reviewed and recorded annually, but will only be used to amend (if required) parameter F CH4,BL,R,y at the renewal of the crediting period. If changes have been made to the regulatory requirements during the first crediting period, emission reductions for the next crediting period will be calculated on the basis of the updated requirements. Data / Parameter: GWP CH4 Data unit: tco 2 e/tch 4 Global warming potential of methane Source of data used: IPCC Value applied: 21 Justification of the Value of 21 used for the first commitment period subject to revision according choice of data or to any future COP/MOP decisions Data / Parameter: OX top_layer Data unit: Dimensionless Fraction of methane that would be oxidised in the top layer of the SWDS in the baseline Source of data used: Consistent with how oxidation is accounted for in the methodological tool Emissions from solid waste disposal sites (Version ) Value applied: 0.1 Justification of the Applicable to Step A choice of data or Data / Parameter: EF EL,j,y Data unit: tco 2 /MWh Emission Factor for Electricity Generation Source of data used: Tool to calculate baseline, project and/or leakage emissions from electricity consumption Option A2 Value applied: 1.3

40 CDM Executive Board page 40 Justification of the choice of data or Applicable to Option A2 A conservative default value is used for power consumption by the project. For electricity displaced by the project activity (baseline emissions), a lower calculated grid factor (EF EL,k,y )is used which is also conservative. Taken from the Tool to calculate the emission factor for an electricity system (Version ) Data / Parameter: NCV i,y Data unit: GJ/mass or volume unit Net calorific value (energy content) of fossil fuel type i in year y Source of data used: Value applied: Justification of the Eskom publishes detailed data on an annual basis on all aspects of power choice of data or generation and supply in South Africa and is therefore considered to represent a reliable source of such information. Data / Parameter: Data unit: Source of data used: Value applied: Justification of the choice of data or FC i,m,y Mass or volume unit Amount of fossil fuel type i consumed by power plant m in year y See accompanying spreadsheet _RSA_GEF_Calcs Eskom publishes detailed data on an annual basis on all aspects of power generation and supply in South Africa and is therefore considered to represent a reliable source of such information. Data / Parameter: EF CO2,i,y Data unit: tco 2 /GJ CO 2 emission factor of fossil fuel type i used in power units m in year y Source of data used: IPPC Value applied: Justification of the IPPC default value for other bituminous coal choice of data or

41 CDM Executive Board page 41 Data / Parameter: Data unit: Source of data used: Value applied: Justification of the choice of data or EG m,y GWh Net electricity generated by power unit m in year y See accompanying spreadsheet _RSA_GEF_Calcs Eskom publishes detailed data on an annual basis on all aspects of power generation and supply in South Africa and is therefore considered to represent a reliable source of such information. Data / Parameter: η m,y Data unit: % Average net energy conversion efficiency of power unit m in year y Source of data used: Annex I of the Tool to calculate the emission factor for an electricity system (Version ) Value applied: 37 (before and in 2000) 39 (after 2000) Justification of the Value for Subcritical coal power plants as per Annex I of the Tool to calculate choice of data or the emission factor for an electricity system (Version ) Taken from the Methodological Tool Emissions from solid waste disposal sites Version Data / Parameter: f default Data unit: - Default factor for the model correction factor to account for model uncertainties Source of data used: Methodological Tool Emissions From Solid Waste Disposal Sites (Version ) Value applied: 0.75 Justification of the Applicable to Application A (dry conditions) according to Table 3: Default choice of data or values for the model correction factor Data / Parameter: OX Data unit: -

42 CDM Executive Board page 42 Oxidation factor (reflecting the amount of methane from SWDS that is oxidised in the soil or other material covering the waste) Source of data used: Methodological Tool Emissions From Solid Waste Disposal Sites (Version ) Value applied: 0.1 Justification of the In accordance with the default value stated in Methodological Tool Emissions choice of data or From Solid Waste Disposal Sites (Version ) Data / Parameter: F Data unit: - Fraction of methane in the SWDS gas (volume fraction) Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value applied: 0.5 Justification of the In accordance with the default value stated in Methodological Tool Emissions choice of data or From Solid Waste Disposal Sites (Version ) Default values are used in the ex-ante estimation of emission reductions. Calculations of ex-post emission reductions will use actual values recorded during monitoring of the CPA. Data / Parameter: DOC f,default Data unit: Weight fraction Fraction of degradable organic carbon (DOC) that can decompose Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value applied: 0.5 Justification of the In accordance with the default value stated in Methodological Tool Emissions choice of data or From Solid Waste Disposal Sites (Version ) for Application A Data / Parameter: MCF default Data unit: - Methane correction factor Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories Value applied: Refer to CPA-DD Justification of the choice of data or The value applied will be applicable to the CPA landfill site based on the criteria stated in the tool

43 CDM Executive Board page 43 Data / Parameter: DOC j Data unit: - Fraction of degradable organic content in the waste type j (weight fraction) Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories (adapted from Volume 5, Tables 2.4 and 2.5) Value applied: Default values for DOC j taken from Table 4 of the Methodological Tool Emissions from solid waste disposal sites Waste Type j DOC j (% wet waste) Wood and wood products 43 Pulp, paper and cardboard (other than sludge) 40 Food, food waste, beverages and tobacco (other 15 than sludge) Textiles 24 Garden, yard and park waste 20 Glass, plastic, metal, other inert waste 0 Justification of the choice of data or Waste type will be MSW therefore default values can be used. Data / Parameter: k j Data unit: - Decay rate for the waste type j Source of data used: IPCC 2006 Guidelines for National Greenhouse Gas Inventories (adapted from Volume 5, Table 3.3) Value applied: Default values for DOC j taken from Table 5 of the Methodological Tool Emissions from solid waste disposal sites Slowly degrading M de ately degrading Waste type j Boreal and Temperate (MAT 20ºC) Dry (MAP/PET 1) Pulp, paper, cardboard (other than 0.04 sl dge) t xtiles Wood, wood produ ts and straw 0. 2 Other (non-food) organic putrescible 0.05 garden and park waste

44 CDM Executive Board page 44 Rapidly degrading Food, food waste, sewage sludge, beverages and tobacco 0.06 Justification of the choice of data or The mean annual temperature for Cape Town is 16.5ºC The mean annual precipitation for Cape Town is 515mm The mean annual evapotranspiration for Cape Town is 1898mm Data Source: Temperature and precipitation data retrieved from Evapotranspiration data retrieved from Cape Town Weather Office Data / Parameter: f y Data unit: - Fraction of methane captured at the SWDS and flared, combusted or used in another manner that prevents the emissions of methane to the atmosphere in year y Source of data used: Project participants Value applied: Refer to CPA-DD Justification of the Value is applied to baseline emissions calculations choice of data or Value applied once for the crediting period (Application A). Data / Parameter: Data unit: Source of data used: Value applied: Justification of the choice of data or W x Tonnes Amount of waste disposed in the SWDS in year x Measured by City of Cape Town Refer to CPA-DD Data taken from historical records of landfill operation, aggregated into annual figures and provided by City of Cape Town. Figures are determined once ex-ante for the purpose of estimating emission reductions (Application A). Taken from the Methodological Tool to determine project emissions from flaring gases containing methane Data / Parameter: Data unit: P n Pa

45 CDM Executive Board page 45 Atmospheric pressure at normal conditions Source of data used: Tool to determine project emissions from flaring gases containing methane Value applied: 101,325 Justification of the To be used in ex-post calculations of project emissions choice of data or - Data / Parameter: R u Data unit: Pa.m3/kmol.K Universal ideal gas constant Source of data used: Tool to determine project emissions from flaring gases containing methane Value applied: 8, Justification of the To be used in ex-post calculations of project emissions choice of data or - Data / Parameter: T n Data unit: K Temperature at normal conditions Source of data used: Tool to determine project emissions from flaring gases containing methane Value applied: Justification of the To be used in ex-post calculations of project emissions choice of data or - Data / Parameter: MM i Data unit: Kg/kmol Molecular mass of residual gas component i Source of data used: Tool to determine project emissions from flaring gases containing methane Value applied: For i = methane (MM CH4 ) = For i = nitrogen (MM N2 ) = Justification of the To be used in ex-post calculations of project emissions choice of data or

46 CDM Executive Board page 46 Tool allows a simplified approach of measuring the volumetric fraction of methane and considering the difference to 100% as being nitrogen (N 2 ). Data / Parameter: AM j Data unit: kg/kmol Atomic mass of element j Source of data used: Tool to determine project emissions from flaring gases containing methane Value applied: For j = Carbon (AM c ) = For j = Hydrogen (AM h ) = 1.01 For j = Nitrogen (AM n ) = Justification of the To be used in ex-post calculations of project emissions choice of data or - Data / Parameter: NA j,i Data unit: - Number of atoms of element j in component i Source of data used: Tool to determine project emissions from flaring gases containing methane Value applied: For i = methane Where j = Carbon (NA c,ch4 ) = 1 Where j = Hydrogen (NA h,ch4 ) = 4 Justification of the choice of data or - For i = Nitrogen Where j = nitrogen (NA n,n ) = 2 To be used in ex-post calculations of project emissions Data / Parameter: ρ CH4,n Data unit: tch 4 /m 3 CH 4 Density of methane gas at normal conditions Source of data used: Methodological Tool to determine project emissions from flaring gases containing methane Value applied: Justification of the Value defined by the approved Methodological Tool to determine project choice of data or emissions from flaring gases containing methane The parameter ρ CH4,n refers to density of methane that will be used to calculate

47 CDM Executive Board page 47 ex-post project emissions from flaring Data / Parameter: MF O2 Data unit: Dimensionless O 2 volumetric fraction of air Source of data used: Methodological Tool to determine project emissions from flaring gases containing methane Value applied: 0.21 Justification of the Value defined by the approved Methodological Tool to determine project choice of data or emissions from flaring gases containing methane Data / Parameter: MV n Data unit: m 3 /Kmol Volume of one mole of any ideal gas at normal temperature and pressure Source of data used: Methodological Tool to determine project emissions from flaring gases containing methane Value applied: Justification of the Value defined by the approved Methodological Tool to determine project choice of data or emissions from flaring gases containing methane Data / Parameter: η flare,h Data unit: % Flare efficiency in the hour h Source of data used: Methodological Tool to determine project emissions from flaring gases containing methane Value applied: 90 Justification of the Approved default value will be applied. choice of data or - Data / Parameter: NCV CH4 Data unit: TJ/t CH 4 Net calorific value of methane at reference conditions Source of data used: ACM0001 Version

48 CDM Executive Board page 48 Value applied: Justification of the Value stated in ACM0001 Version used for ex-ante calculation of choice of data or baseline emissions for use of landfill gas in heat generation For heat generation projects only Data / Parameter: Data unit: Source of data used: Value applied: Justification of the choice of data or Data / Parameter: Data unit: Source of data used: Value applied: Justification of the choice of data or Data / Parameter: Data unit: Source of data used: Value applied: Justification of the EF CO2,BL,HG,j tco 2 /TJ CO 2 emission factor of the fossil fuel type used for heat generation by equipment type j in the baseline Table 1.4 of Chapter 1 of Vol. 2 (Energy) of the 2006 IPCC Guidelines on National GHG Inventories Refer to CPA-DD Value used in ex-ante calculation of baseline emissions will be the lower limit of the 95% confidence interval of the default values provided in Table 1.4 of the reference above For heat generation projects only. Appropriate factor to be applied for type of fuel used in the baseline. fd CH4,HG,j,default Default value for the fraction of methane destroyed when used for heat generation equipment type j The values for boilers and air heaters are based on default values provided in the 2006 IPCC Guidelines (Tier 3 approach for Chapter 2: Stationary Combustion of Volume 2: Energy Use). 1 for boilers and air heaters Based on the default values stated in ACM0001. For heat generation projects only. Applicable to calculating F CH4,HG,dest,j,y using equation 19 in Step C.2 of ACM0001 Version η HG,BL,j Dimensionless Efficiency of the heat generation equipment used in the baseline Methodological tool Tool to determine the baseline efficiency of thermal or electric energy generation systems (Version 01) Refer to CPA-DD Default value applicable to the equipment type

49 CDM Executive Board page 49 choice of data or For heat generation projects only E.7. Application of the monitoring methodology and the monitoring plan: E.7.1. Data and parameters to be monitored by each CPA: Data / Parameter: F CH4,BL,R,y Data unit: tch 4 /yr Amount of methane in the LFG which is flared due to a requirement in year y Source of data to be Information of the host country s regulatory requirements relating to LFG, used: contractual requirements, or requirements to address safety and odour concerns. Value of data applied Refer to CPA-DD for the purpose of calculating expected emission reductions in section B.5 Description of Annually checked and procedures to be applied: QA/QC procedures to - be applied: - Data / Parameter: Data unit: Dimensionless Fraction of LFG that is required to be flared due to a requirement in year y Source of data to be Information of the host country s regulatory requirements relating to LFG, used: contractual requirements, or requirements to address safety and odour concerns. Value of data applied Refer to CPA-DD for the purpose of calculating expected emission reductions in section B.5 Description of Annually checked and procedures to be applied: QA/QC procedures to - be applied: - The following parameters are taken from the Methodological tool Tool to determine the mass flow of a greenhouse gas in a gaseous stream.

50 CDM Executive Board page 50 Data / Parameter: V i,t,wb (also equivalent to V k,t,wb ) Data unit: m 3 gas i/k / m 3 wet gas Volumetric fraction of greenhouse gas i/k (methane in both cases) in a time interval t on a wet basis Source of data to be Measured by project participants to identify: used: Amount of methane sent to flare Amount of methane used for electricity generation Amount of methane used for heat generation Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: As appropriate to the use of LFG in the CPA n/a only used for ex-post calculations Continuous in-situ analysers to be used, positioned at the LFG delivery pipeline to each item of equipment (flare, engine or boiler/air heater). Calibration will include zero verification with an inert gas (e.g. N 2 ) and at least one reading verification with a standard gas (single calibration gas or mixture calibration gas). All calibration gases will have a certificate provided by the manufacturer and be under their validity period. Option F applied Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: M t,wb kg/h Mass flow of the gaseous stream (LFG) in time interval t on a wet basis Measured by project participants to identify: Amount of methane sent to flare Amount of methane used for electricity generation Amount of methane used for heat generation As appropriate to the use of LFG in the CPA n/a only used for ex-post calculations Continuous monitoring using instruments with recordable signal (analogical or digital), positioned at the LFG delivery pipeline to each item of equipment (flare, engine or boiler/air heater). Periodic calibration against a primary device provided by an independent accredited laboratory (mandatory). Calibration and frequency of calibration in accordance with the manufacturer s specifications. Option F applied The following parameters are taken from the Methodological Tool to determine project emissions from flaring gases containing methane.

51 CDM Executive Board page 51 Data / Parameter: fv i,h Data unit: - Volumetric fraction of component i in the residual gas in hour h Source of data to be used: Volumetric fraction of methane (i = CH 4 ) to be measured by project participants using a continuous gas analyser positioned at the LFG delivery pipeline to each Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: flare. n/a as it is only used in ex-post calculations Measured continuously. Values to be averaged hourly or at a shorter time interval. Ensure that the same basis (dry or wet) is considered for this measurement and the measurement of the volumetric flow rate of the residual gas (FV RG,h ) when the residual gas temperature exceeds 60ºC. Analysers will be periodically calibrated according to the manufacturer s recommendation. A zero check and a typical value check will be performed by comparison with a standard certified gas. As a simplified approach, only the methane content of the residual gas will be measured, with the remaining part considered as N 2. Data / Parameter: FV RG,h Data unit: m 3 /h Volumetric flow rate of the residual gas (LFG) in dry basis at normal conditions in the hour h Source of data to be Measurements by project participants using a flow meter used: Value of data applied n/a as it is only used in ex-post calculations for the purpose of calculating expected emission reductions in section B.5 Description of Measured continuously. Values to be averaged hourly or at a shorter time interval. Ensure that the same basis (dry or wet) is considered for this and procedures to be measurement and the measurement of the volumetric flow rate of the residual gas applied: (fv CH4,h ) when the residual gas temperature exceeds 60ºC. QA/QC procedures to Flow meters are to be periodically calibrated according to the manufacturer s be applied: recommendation. Data / Parameter: T flare Data unit: ºC Temperature in the exhaust gas of the flare Source of data to be Measurements by the project participants used: Value of data applied n/a as it is only used in ex-post calculations for the purpose of calculating expected

52 CDM Executive Board page 52 emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: Measured continuously using a Type N thermocouple. A temperature above 500ºC indicates that a significant amount of gases are still being burnt and that the flare is operating. Thermocouples should be replaced or calibrated every year. An excessively high temperature at the sampling point (above 700ºC) may be an indication that the flare is not being adequately operated or that its capacity is not adequate to the actual flow. Data / Parameter: Other flare operation parameters Data unit: - To include all data and parameters that are required to monitor whether the flare operates within the range of operating conditions according to the manufacturer s specification Source of data to be Measurements by project participants used: Value of data applied n/a as it is only used in ex-post calculations for the purpose of calculating expected emission reductions in section B.5 Description of Continuous monitoring and procedures to be applied: QA/QC procedures to be applied: Only applicable in case of use of a default value The following parameters are taken from the Methodological tool Tool to calculate baseline, project and/or leakage emissions from electricity consumption. Data / Parameter: TDL j,k,y Data unit: % Average technical transmission and distribution losses for providing electricity to source j (project) and k (baseline) in year y Source of data to be Recent accurate and reliable data available within the host country (Scenario A used: applies) Value of data applied Refer to CPA-DD for the purpose of calculating expected emission reductions in section B.5 Description of Monitored annually. In the absence of data from the relevant year, most recent figures should be used, but not older than 5 years. and procedures to be

53 CDM Executive Board page 53 applied: QA/QC procedures to Eskom generates approximately 95% of the electricity used in South Africa, and be applied: its core business is electricity generation, transmission, trading and distribution. It therefore provides a reliable source of official documentation. No leakage effects are accounted for under ACM0001 Version Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: Data / Parameter: Data unit: Source of data to be EC PJ,j,y MWh/yr Quantity of electricity consumed by the project electricity consumption source j in year y Measurements by project participants Refer to CPA-DD Measured continuously by electricity meter Electricity meter will be subject to regular maintenance and testing (in accordance with the recommendations of the manufacturer/supplier) to ensure accuracy Used to calculate PE EC,y EC BL,k,y MWh/yr Net amount of electricity generated using LFG Measurements by project participants Refer to CPA-DD Measured continuously by electricity meter Electricity meter will be subject to regular maintenance and testing (in accordance with the recommendations of the manufacturer/supplier) to ensure accuracy Used for electricity generation projects only to calculate BE EC,y Operation of the Energy Plant hr Operation of the energy plant Project participants

54 CDM Executive Board page 54 used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of Refer to CPA-DD Operating hours will be identified for each item of equipment and monitored on an hourly basis. - Monitored for electricity generation projects only to ensure that methane destruction is only claimed for methane used in the electricity plant when it is operational EF EL,k,y tco 2 /MWh Emission Factor for electricity generation for source k in year y Tool to calculate baseline, project and/or leakage emissions from electricity consumption Option A To be recalculated at the beginning of each crediting period. - Monitored in electricity generation projects only and only at the start of the second and third crediting periods. Use of the calculated value in baseline emissions is conservative (i.e. lower) compared to use of the default value which is applied in the calculation of project emissions. η HG,PJ,j,y Dimensionless Efficiency of the heat generation equipment used in the project activity in year y Project participants (if measured); Manufacturer s information; or Default value of 60% Refer to CPA-DD Recorded annually. If measurements are conducted, recognised standards will be

55 CDM Executive Board page 55 and procedures to be applied: QA/QC procedures to be applied: Data / Parameter: Data unit: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of and procedures to be applied: QA/QC procedures to be applied: used, such as the British Standard Methods for Assessing the thermal performance of boilers for steam, hot water and high temperature heat transfer fluids (BS845). - Monitored in heat generation projects only Operation of the Heat Generating Plant hr Operation of the heat generating plant Project participants Refer to CPA-DD Operating hours will be identified for each item of equipment and monitored on an hourly basis. - Monitored in heat generation projects only to ensure that methane destruction is only claimed for methane used in the boiler when it is operational E.7.2. Description of the monitoring plan for a CPA: As described in Section A , monitoring will be carried out at individual CPA level. Further monitoring information is presented in Annex 4 and will be augmented by CPA-specific details provided in the respective CDM-CPA-DD. E.8. Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies) The baseline study and monitoring methodology has been completed on 28/02/2012 by: SLR Consulting Limited Myttton Mill Forton Heath Montford Bridge Shrewsbury SY4 1HA United Kingdom Contact: Bob Couth Telephone: +44 (0) bcouth@slrconsulting.com

56 CDM Executive Board page 56 Annex 1 CONTACT INFORMATION ON COORDINATING/MANAGING ENTITY and PARTICIPANTS IN THE PROGRAMME of ACTIVITIES Organization: City of Cape Town Street/P.O.Box: PO Box 298 Building: City: Cape Town State/Region: Western Cape Postfix/ZIP: 8000 Country: Republic of South Africa Telephone: FAX: Review.Waste@capetown.gov.za URL: Represented by: Barry Coetzee Title: Manager: Technical Strategic Support, Utility Services Salutation: Mr Last Name: Coetzee Middle Name: - First Name: Barry Department: Utility Services Directorate Mobile: +27 +(0) Direct FAX: Direct tel: +27 +(0) Personal Barry.Coetzee@capetown.gov.za

57 CDM Executive Board page 57 The POA does not make use of public funding. Annex 2 INFORMATION REGARDING PUBLIC FUNDING

58 CDM Executive Board page 58 Annex 3 BASELINE INFORMATION For each CPA under the POA, baseline information specific to the individual project activity (for example annual waste inputs) will be described in Annex 3 of the respective CDM-CPA-DD. The following presents the general assumptions that have been used in establishing baseline conditions for the POA. For those CPAs where the end use of the LFG is electricity generation: a conservative assumption for transformer losses of 6% has been applied 6 ; and engines are assumed to be operational for 8,000 hours per annum in accordance with commonly applied engineering assumptions. Weather data applicable to the Cape Town municipality has been considered as follows: The mean annual temperature for Cape Town is 16.5ºC The mean annual precipitation for Cape Town is 515mm 7 The mean annual evapotranspiration for Cape Town is 1898mm 8 Grid Emission Factor Baseline Data Fuel Consumption and Electricity Generation of RSA Grid Connected Power Plants (sourced from Eskom Website CDM calculations table) 6 MV/LV transformer substations: theory and examples of short-circuit calculations. ABB. February Evapotranspiration data retrieved from Cape Town Weather Office

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60 CDM Executive Board page 60 Grid Share of Power Plant Types