JCM Model Project. Introduction of Amorphous high efficiency transformers in power distribution systems of Southern Power Corporation (SPC)

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JCM SEMINAR IN IINO HALL & CONFERENCE CENTER, JAPAN 3 rd Mar, 2016 JCM Model Project Introduction of Amorphous high efficiency transformers in power distribution systems of Southern Power Corporation (SPC) KUROYANAGI Hiromi System Service Department Yuko Keiso Co.,Ltd. Contents 1. Corporate Profile and Business in Vietnam 1 1. Corporate Profile Overview 1 2. Our Business in Japan 1 3. Our Business in Vietnam 2. Introduction of Amorphous high efficiency transformers in power distribution systems 2 1. Project General Information 2 2. Overview of project 2 3. Consortium Structure 2 4. Responsibilities of parties in the Consortium 2 5. Project Schedule 2 6. Schedule for JCM Registration 2 7. Project Cycle of the JCM 2 8. Applied JCM Methodology 2 9. Applied JCM Methodology 3. Project Advantages and Challenges 3 1. Project Advantages (1), (2) 3 2. Project Challenges 4. Project Expansion 4 1. Project Expansion 4 2. Expansion of Project Area

1. Corporate Profile and Business in Vietnam 1 1. Corporate Profile Overview Company's Name YUKO KEISO Co.,Ltd Founded December, 1963 Headquarters Tokyo Office & Subsidiaries Domestic (Japan) : 4 offices (Yokohama, Saitama, Tochigi, Tokyo) Overseas (Vietnam): 1 subsidiary (Hanoi) Employees 161 Capital 100 million JPY Annual sales 2.88 billion JPY (the term ended May, 2015) Lines of Business Sales of instruments and automatic control equipment Engineering service for instrumentations and automatic control systems Design and installation of electric equipment, electrical communications equipment, air conditioning systems, security systems and disaster prevention equipment, and facilities Maintenance and management of equipment and facilities related to each item listed above 1. Corporate Profile and Business in Vietnam 1 2. Our Business in Japan YUKO-KEISO provides total control systems based on advanced system engineering for wide-ranging building facilities such as air conditioning, electrical equipment, disaster prevention, and security protection. + ENERGY SAVING SERVICE We have participated in the construction of many landmark structures in the central Tokyo area. Figure: Building Automations System Configurations http://www.azbil.com/products/bi/ba/index.html

1. Corporate Profile and Business in Vietnam 1 3. Our Business in Vietnam Office in Vietnam (No.32 Pham Huy Thong Str., Ba Dinh District, Hanoi, Vietnam) http://www.worldatlas.com/webimage/countrys/printpage/printp age.php?l=/webimage/countrys/asia/lgcolor/vncolor.gif Company's Name Founded July, 2012 Lines of business Yuko Vietnam Co., Ltd. Provide consulting services, installation and maintenance related to the installation of industrial machinery and equipment, mechanical electric air equipment, fire protection systems. Design and technical consulting, software development, assembly and installation of the control panel, integrating, commissioning, maintenance and technical support for the control systems of industrial plants, and control systems for factory automation, control systems and building management systems to save energy and protect environment. Supervise the installation of electrical equipment and civil and industry works. Support JCM Feasibility Study (FY 2012 15) 2. Introduction of Amorphous high efficiency transformers in power distribution systems 2 1. Project General Information This project aims to introduce amorphous high efficiency transformers to power distribution systems of Electricity of Viet Nam, and expects to reduce transmission losses of the systems. Name of Project Introduction of Amorphous high efficiency transformers in power distribution systems of Southern Power Corporation (SPC) Host Country Vietnam Project Participants JAPAN: YUKO KEISO Co., Ltd. Vietnam: Southern Power Corporation (EVN SPC) Total equipment cost Approximately 400 million JPY Period From beginning of Feb, 2015 to end of Mar, 2016 Site Transmission and distribution network in southern Vietnam Technology Amorphous high efficiency transformer With the use of amorphous high efficiency transformers, it is able to realize a reduction of transmission and distribution losses and contribute to Green House Gas emission reduction Scale of investment EVN Southern Power Corporation is planning to purchase and install 1,618 Amorphous high efficiency transformers Finance JCM support from Ministry of Environment of Japan Expected GHG 623 tco2/year Reductions

2. Introduction of Amorphous high efficiency transformers in power distribution systems 2 2. Overview of project Sites of Project The transmission and distribution network in southern Vietnam (EVN SPC) Subject of Project 4TRANSFORMERS are the subjects of the project. Project Transformer Amorphous high efficiency transformer By Tonbi ko, https://commons.wikimedia.org/w/index.php?curid=42713363 Single phase Three phase 2. Introduction of Amorphous high efficiency transformers in power distribution systems 2 3. Consortium Structure OECC MUMSS Support on procedure Support on developing methodology PDD Report activities MOEJ GEC YUKO KEISO Co., (Representative of consortium) Indirect management of technology installment and operation YUKO KEISO, as representative of the JCM consortium, plays a role of managing the project by collecting evidence of installation, operation of the Amorphous transformers from EVN SPC and applying for the JCM grant. YUKO KEISO is also in charge of reporting annual CO2 reduction volumes of the project to the MOEJ annually. Review Japan s Ministry of environment (MOEJ) supports EVN SPC s installment of the highefficient transformer (which uses Hitachi Metal s Amorphous metals) by providing the JCM grant up to 50% of the purchase cost. JCM Consortium Report Purchase Amorphous Order EVN SPC THIBIDI Hitachi Metals Delivery and support maintenance Delivery EVN SPC, as the representative of the consortium in Vietnam side buys and installs the Amorphous transformers utilized Hitachi Metal s Amorphous metals and reports the operation status to YUKO KEISO by submitting evidence records. EVN SPC also required to report the annual operation records to YUKO KEISO for calculating annual CO2 reduction volumes.

2. Introduction of Amorphous high efficiency transformers in power distribution systems 2 4. Responsibilities of parties in the Consortium YUKO KEISO Monitoring the purchasing, installation, operation of amorphous transformer. Applying, on behalf of the consortium, for JCM financing form MOEJ, then transferring the whole amount of financial support to Vietnam partners. Monitoring the number of purchased transformers as required Monitoring and reporting, on behalf of the consortium, the GHG emission reductions to MOEJ, so that MOEJ can inform MONRE as agreed in the MOU EVN SPC Purchasing, installing, operating amorphous transformers under the supervision of YUKO KEISO Providing financial and technical documents so that YUKO KEISO could complete the required procedure to get funding from MOEJ Providing operational data of purchased amorphous transformer for calculating the GHG emission reductions Following maintenances scheme and routines as recommended by YUKO KEISO 2. Introduction of Amorphous high efficiency transformers in power distribution systems 2 5. Project Schedule Actual project Develop JCM Consortium Agreement JCM Grant Application and notification Tender Producti on Installation and operation Reporti ng Intermediate Inspection Final Inspection Delivery the JCM grant

2. Introduction of Amorphous high efficiency transformers in power distribution systems 2 6. Schedule for JCM Registration 2. Introduction of Amorphous high efficiency transformers in power distribution systems 2 7. Project Cycle of the JCM JCM process Submission of proposed JCM methodology Responsible entity Project Participants (Project Owner) Role of project participant Provide necessary data/information for development of the methodology Approval of proposed JCM methodology Development of Project Design Document (PDD) Validation Registration Monitoring Verification Issuance of credits Joint Committee (JC) Project Participants Third Party Entity (TPE) Joint Committee (JC) Project Participants Third Party Entity (TPE) Joint Committee and Each Governments Explain the methodology to JC members if requested by JC Provide necessary data/information for development of the PDD Submit necessary documents to JC and TPE to begin validation process Cooperate with consultant and join the project site visit by TPE Explain the project to JC members if requested by JC Submit registration request to JC Conduct monitoring, provide necessary data/ information to complete monitoring report Cooperate with consultant and join the project site visit Explain the project and the monitored result to JC members if requested by JC Source: http://www.mmechanisms.org/document/20150929_jcm_goj_e_rev.pdf

2 8. Applied JCM Methodology Applied JCM Methodologies JCM_VN_AM005 Installation of energy efficient transformers in a power distribution grid, Version 1.0 Criterion 1 Criterion 2 JCM_VN_AM005 Eligibility Criteria Single phase and/or three phase oil immersed transformer with amorphous metal core is installed in the distribution grid Load losses of the project transformer determined in line with IEC 60076 1 or national/industrial standards complying with IEC 60076 1 is equal or smaller than the standard values or specification values of load loss, required by the power company of the grid where the project transformer is installed, corresponding to its capacity and number of phases. Monitoring requirement Energizing time of the project amorphous transformers Monitoring option: Based on the actual measurement using measuring equipment (data used: measured values) Source of data: On site measurement Measurement methods and procedures: counting the number of hours of this monitoring period Monitoring frequency: once at the end of the monitoring period 2. Introduction of Amorphous high efficiency transformers in power distribution systems 2 9. Applied JCM Methodology

3. Project Advantages and Challenges 3 1. Project Advantages(1) 1. The financing programme for JCM Model Project supported EVN SPC to install the amorphous transformers with the lower cost. (Tender price compared to JCM) Conventional (Phase2) Amorphous(Phase2) EVN SPC s total demand of transformers in 2015, Stage2 (not including Rural Energy projects using WB and KfW loan) Type of transformer Phase 2 EVN SPC tender $2 $2 Amorphous, 1 phase 1,466 Tender with JCM (before discount) Tender with JCM (after discount) $4 $2 0 1 2 3 4 million Amorphous, 3 phase 152 Conventional (silicon based), 1 phase 731 Conventional (silicon based), 3 phase 75 Total (pcs) 1,618 Calculated by THIBDI and OECC (8 Jan 2015) 3. Project Advantages and Challenges 3 1. Project Advantages(2) 2. Simple scheme This JCM Model Project only supported for equipment cost (Not included construction costs ) Project plan is clear and hence it lead to more certainty to complete 3. Contribute to capacity building Study tour to Japan (EVN SPC and THIBIDI visited an amorphous core factory) Effectively transfer the technology To build local capacity for manufacturing amorphous transformer in Vietnam 4. Currency is Japanese Yen 5. Property of the project will be thoroughly owned and managed by EVN SPC (lifetime management is 18 in the Japanese Law ) 6. Cooperative relationship

3. Project Advantages and Challenges 3 2. Project Challenges 1. Monitoring period After completing the installation, EVN SPC shall regularly report the operational status (number) to YUKO KEISO until 2020 2. Property management period Lifetime management of project transformers is 18 years in the Japanese Law 3. How to execute and perform the consortium agreement successfully 4. Manual preparation Implementing the project effectively is required documentation of procedure and 4. Project Expansion 4 1. Project Expansion Host Country Project Participants Total equipment cost Period Site Scale of investment Expected GHG Reductions Vietnam: EVN SPC Phase1 (JFY 2014) Phase2 (JFY 2015) JAPAN: Approximately 500 million JPY From beginning of Feb, 2015 to end of Mar, 2016 Transmission and distribution network in the southern part of Vietnam 1,618 Amorphous high efficiency transformers Vietnam YUKO KEISO Co., Ltd. Vietnam: EVN SPC EVN HCMC EVN CPC DNPC Approximately 3 billion JPY From beginning of Feb, 2016 to end of Mar, 2017 Transmission and distribution network in the southern and middle part of Vietnam 4,834 Amorphous high efficiency transformers 623 tco2/year 4,360 tco2/year

4. Project Expansion 4 2. Expansion of Project Area Phase1 JFY 2014 Phase2 JFY 2015 Phase 3 JFY 2016 Southern, Middle and North part of Vietnam By Tonbi ko, https://commons.wikimedia.org/w/index.php?curid=42713363 Thank you for your kind attention! http://www.yukokeiso.com/english/index.html [Contact address] Hiromi KUROYANAGI (MS) E mail: h kuroyanagi@yukokeiso.com