3265 Revised PDD

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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

1

CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)

Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders’ comments

Annexes

Annex 1: Contact information on participants in the proposed small scale project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information

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Revision history of this document

VersionNumber

Date Description and reason of revision

01 21 January

2003

Initial adoption

02 8 July 2005 • The Board agreed to revise the CDM SSC PDD to reflect

guidance and clarifications provided by the Board since

version 01 of this document.

• As a consequence, the guidelines for completing CDM SSC

PDD have been revised accordingly to version 2. The latest

version can be found at

<http://cdm.unfccc.int/Reference/Documents>.

03 22 December

2006

• The Board agreed to revise the CDM project design

document for small-scale activities (CDM-SSC-PDD), takinginto account CDM-PDD and CDM-NM.

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SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity:

>>

Yennehole - 1 Mini Hydel Scheme

Version 03

28/04/2010

A.2. Description of the small-scale project activity:

>>

The proposed project activity is a 15MW run-of-river hydro power plant located in the state of

Karnataka, India. The project envisages utilizing the flow of the Swarna river originating at

Kudaremukh, Chikkamangalore district wherein the catchment area receives rainfall. The development

of the project activity would reduce greenhouse gas (GHG) emissions produced by the regional grid

generation mix which is mainly dominated by fossil fuel based power plants. Emission reduction fromhydroelectric power projects arise as they replace grid electricity with a zero-emission source of

electricity generation.

The project relates to the establishment of three 5000kW turbine generators to produce electricity to

export to the Southern grid through sale to the Karnataka Power Transmission Corporation Ltd

(KPTCL). A power purchase agreement will be entered into with the KPTCL for the export of the

electricity. The project activity has chosen a renewable crediting period and is expected to reduce 39,049

tCO2e per year. In the absence of the project activity the electricity will continue to be generated by the

existing generation mix operating in the grid.

Contribution of the project activity to sustainable development

The project activity will contribute to sustainable development through socio-economic development in

the region. The proposed project activity will generate new job opportunities for the local community

and hence help in development of basic amenities leading to an improvement in living standard of the

local community. People from the local area will be employed during the construction and operation

phase of the project activity which will indirectly lead to economic benefits in the area. The project

activity will also improve connectivity of the area through the construction of roads to the site which will

benefit the villagers located on and nearby these roads. The project is run-of river and hence there is no

displacement of population and no rehabilitation and resettlement (R&R) issues occur.

Contribution of the project activity to environmental well being

Through the generation of hydro electricity for supply to the grid the project activity will have a direct

environmental benefit. The generation of power from hydro has long term benefits related to climatechange given that the alternative is a fossil fuel based generation system. Local pollution will be reduced

as hydro power is a zero emission source. The project does not invoice any environmental impacts and

there are no adverse effects on the flora and fauna.

A.3. Project participants:

>>

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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)

India (host) Private Entity: GVP InfraProjects Pvt. Ltd.

No

United Kingdom Private Entity: Agrinergy Pte Ltd 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.

Contact details as listed in Annex 1.

A.4. Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity:

>>

A.4.1.1. Host Party(ies):

>>

India

A.4.1.2. Region/State/Province etc.:

>>

Karnataka

A.4.1.3. City/Town/Community etc:

>>District Udupi, Taluk Karkala

A.4.1.4. Details of physical location, including information allowing the

unique identification of this small-scale project activity :

>>

The project is proposed on Swarna river which originates at Kudaremukh, Chikkamangalore district in

Karnataka State. The power station is located near downstream of existing barrage/ Road Bridge

connecting Jarkala and Karkala near Tallaru village on Swarna river. The geographical coordinates1 of

the project activity location are:

Latitude: 13° 35’ N

Longitude: 74° 75’ E

The location of the project is highlighted in the map below:

1 http://www.fallingrain.com/world/IN/19/Udipi.html

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A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:

>>

Sectoral Scope 1: Energy Industries (Renewable/non-renewable sources)

Type I: Renewable Energy Projects

Category D: Grid Connected renewable energy generation

Project

Activity

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The project produces renewable energy by utilizing hydro power as an energy source and converting the

potential energy available in the water flow into mechanical energy using turbine and then to electrical

energy using generators.

The proposed project activity is a run-of-river development without any storage of water, utilizing the

water of Swarna river by harnessing a maximum gross head of 12.5m. Allowing a loss of 0.5m in the

head regulator penstock the net head available is 12m to generate 15MW of power. The project proposes

to install three generating sets of 5000kW each and total design discharge of 149m3 /s. After power

generation the water is discharged into the stream through a 175m long tail race channel.

The power will be generated at 11kV and will be evacuated through a 110kV transmission line to be

terminated at the Karkala sub-station and finally fed into the Southern grid of India.

The principal technical parameters of the scheme are as follows:

TURBINE

Type of turbine Horizontal Full Kaplan ‘S’

type

Number of Units 3

Rated capacity (kW) 5000

Continuous overloading 20%

Speed (rpm) 1500

Runner diameter (mm) 2900

GENERATOR

Type Synchronous

Rated capacity (kW) 5000

Power factor 0.85

Voltage (V) 415

Frequency (Hz) 50

Speed (rpm) 750

PENSTOCK

Length of penstock 50m

Diameter of penstock 4m

The main operational parameters are:

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Tail water level EL 19.5m

Design discharge/ unit 49.7 m3 /sec

Catchment area of Swarna

River

60 km2

Gross annual energy 45,330 MWh

Losses 50MWh

Net saleable energy 45,280 MWh

The unit and station auxiliary supply will be obtained through the auxiliary transformer which can be fed

either from the generator or the 11 kV system. The backup power supply in the event of station shut

down will be grid supply. The in-feed from the diesel set will be kept as a second backup to be used to

start up the generators in case of a station shut down coupled with the failure of the grid supply. Therating of diesel generator set will be 125 kVA.

The technology employed is environmentally safe and tested. There is no transfer of technology to the

host country since the technology is available in, and supplied from, India.

A.4.3 Estimated amount of emission reductions over the chosen crediting period:

>>

A seven year renewable crediting period has been chosen.

Years Estimation of annual emission reductions in tonnes

of CO2e

Year 1 39,049

Year 2 39,049

Year 3 39,049

Year 4 39,049

Year 5 39,049

Year 6 39,049

Year 7 39,049

Total estimated reductions (tonnes of CO2e) 273,343

Total number of crediting years 7

Annual average of the estimated emission

reductions over the crediting period (tCO2e)

39,049

A.4.4. Public funding of the small-scale project activity:

>>

The project will not receive any public funding from parties included in Annex I of the UNFCCC.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a

large scale project activity:

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Appendix C, paragraph 2 of the Simplified Modalities and Procedures for Small-Scale CDM project

activities states:

“A proposed small-scale project activity shall be deemed to be a debundled component of a large project

activity if there is a registered small-scale CDM project activity or an application to register another

small-scale CDM project activity:

• With the same project participants;

• In the same project category and technology/measure; and

• Registered within the previous 2 years; and

• Whose project boundary is within 1 km of the project boundary of the proposed small-scale

activity at the closest point.”

As there is currently no registered CDM project or applied for registration at the site either large scale or

small scale, the project proponents undertake that the project activity is not a debundled component of alarge scale project.

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SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to thesmall-scale project activity:

>>

AMS I D – Grid connected renewable electricity generation

Version 13

B.2 Justification of the choice of the project category:

>>

Project type: Type I

Category: D

Paragraph 1 of the methodology states – “This category comprises renewable energy generation units,

such as photovoltaics, hydro, tidal/wave, wind, geothermal and renewable biomass, that supplyelectricity to and/or displace electricity from an electricity distribution system that is or would have been

supplied by at least one fossil fuel fired generating unit.”

The project activity is the generation of hydro power that will be fed into the southern grid of India. In

the absence of the project activity this power would have been produced by the current grid generation

mix which is predominantly fossil fuel based, thus the project activity meets the requirements of

paragraph 1.

Paragraph 2 of the methodology states – “ If the unit added has both renewable and non-renewable

components (e.g. a wind/diesel unit), the eligibility limit of 15MW for a small-scale CDM project activity

applies only to the renewable component. If the unit added co-fires fossil fuel1, the capacity of the entire

unit shall not exceed the limit of 15MW.”

The project activity involves the installation of three turbines of 5000kW each running on renewable

resources, thus remaining within the 15MW limit required by the above paragraph.

Paragraph 3 of the methodology states – “Combined heat and power (co-generation) systems are not

eligible under this category.”

The project activity is not a cogeneration unit.

Paragraph 4 of the methodology states – “ In the case of project activities that involve the addition of

renewable energy generation units at an existing renewable power generation facility, the added

capacity of the units added by the project should be lower than 15 MW and should be physically distinct2

from the existing units.”

There was no power generation on site before the project activity hence this paragraph is not applicable.

Paragraph 5 of the methodology states – “Project activities that seek to retrofit or modify an existing

facility for renewable energy generation are included in this category. To qualify as a small-scale

project, the total output of the modified or retrofitted unit shall not exceed the limit of 15 MW.”

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There is no existing power generation on the site of the project activity thus negating the above

paragraph.

It is therefore concluded that the project activity qualifies as a Type I.D. project.

B.3. Description of the project boundary:

>>

As per paragraph 6 of the methodology “The project boundary encompasses the physical, geographical

site of the renewable generation source.”

The project boundary includes the equipments installed for the operation of a new hydro power plant –

the main elements of which are the turbine, generator and the transformer.

Electricity to Southern grid

In terms of gases, the project boundary is restricted to CO2. For the purpose of the project activity the

relevant grid is defined by the power generating units serving the same grid as the project activity. The

Indian power grid system is split into two regions by the Central Electricity Authority (CEA) – NEWNE

and southern. The regional grids facilitate the transfer of electricity between states, which is supplied by

state-owned and central sector power generating stations. The state of Karnataka falls within the

southern region, hence the southern grid is chosen for the analysis. The boundary for the calculation of

the grid emission coefficient for the project activity is thus the southern grid in India which falls in

spatial extent of the project boundary.

B.4. Description of baseline and its development:

>>

Two possible baseline scenarios for the project activity have been identified as:

CDM Boundary

Swarna River (Water

Source)

Power House (TG,

generators etc.)

Main Transformer

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1. The proposed project activity without CDM i.e. the construction of a new hydro electricity

generation plant with an installed capacity of 15MW connected to the regional grid, implemented

without CDM.

2. Continuation of the current situation i.e. electricity will continue to be generated by the existing

generation mix operating in the grid.

Alternative 1 – The investment analysis in Section B.5 shows that the proposed project faces an

investment barrier that would prevent its implementation without the CDM revenues. Hence this is not a

suitable baseline scenario.

Alternative 2 – This represents a plausible baseline scenario and it does not face any barriers.

From the above analysis and the demonstration of additionality, Alternative 2 i.e. the regional grid has

been taken as the baseline and baseline emissions have been calculated in accordance with paragraph 9 of

the methodology.

Paragraph 9 of the methodology states - “For all other systems, the baseline is the kWh produced by the

renewable generating unit multiplied by an emission coefficient (measured in kg CO2e/kWh) calculated

in a transparent and conservative manner as:

(a) A combined margin (CM), consisting of the combination of operating margin (OM) and build margin

(BM) according to the procedures prescribed in the ‘Tool to calculate the emission factor for an

electricity system’.

OR

(b) The weighted average emissions (in kg CO2e/kWh) of the current generation mix. The data of the year in which project generation occurs must be used .

Calculations must be based on data from an official source (where available) and made publicly

available.”

The emission coefficient for the southern grid has been provided by Central Electricity Authority (CEA)

following the approach in paragraph 9(a) as a combined margin consisting of combination of operating

margin and build margin2.

Paragraph 10 of the methodology states – “In the case of project activities that involve the addition of

renewable energy generation units at an existing renewable power generation facility, where the existing

and new units share the use of common and limited renewable resources (e.g. streamflow, reservoir

capacity, biomass residues), the potential for the project activity to reduce the amount of renewableresource available to, and thus electricity generation by, existing units must be considered in the

determination of baseline emissions, project emissions, and/or leakage, as relevant.”

2 See Annex 3.

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The project does not involve addition of renewable energy generation units at an existing renewable

power generation facility as there is currently no power generation on the site, thus negating baseline

scenario specified above.

Paragraph 11 of the methodology states – “For project activities that seek to retrofit or modify an

existing facility for renewable energy generation the baseline scenario is the following:”

The project does not seek to retrofit or modify an existing facility as there is currently no power

generation on the site, thus negating baseline scenario specified in paragraph 11 above.

B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below

those that would have occurred in the absence of the registered small-scale CDM project activity:

In line with Attachment A to Appendix B of the Simplified Modalities and Procedures for Small-Scale

CDM Project Activities, demonstration of additionality focuses on the barriers facing the project. In

showing that the project is additional we demonstrate that it is not part of the baseline scenario, which in

the case of the project activity would be the continuation of the power generation in the regional grid.

In terms of the specific barriers facing the project activity these fall under the investment barrier as

outlined in Attachment A to Appendix B of the Simplified Modalities and Procedures for Small-Scale

CDM Project Activities.

To analyze the feasibility of the project, the project proponents have analyzed the project internal rate of

return (IRR) for the project. The project will be financed with a mix of debt and equity in 70:30 ratio.

Given the subjectivity of the return on equity and the variation across companies, we have provided the

estimates of the cost of financing as a benchmark. To obtain this the commercial lending rates have to be

adjusted by guarantees required for India in line with the paragraph 6(b) of the additionality tool. The

cost of commercial lending is reported on the website of Reserve Bank of India (RBI) through the prime

lending rate (PLR) and which is quoted at 12.25 to 12.75%3

relating to the time of investment decision.The risk premium for India was calculated as 3.75%

4 by Dr. Aswath Damodaran in his published report –

“Country Default Spreads and Risk Premiums” which results in a benchmark of 16% for the project

activity5.

The most suitable indicator for comparison with the chosen benchmark is the project internal rate of

return (IRR). The only source of revenue for the project activity is from the sale of electricity using a

tariff of Rs 2.80/kWh, fixed for the first 10 years of operation as per the tariff order of Karnataka

Electricity Regulatory Commission (KERC). The total expenses include the costs to be incurred on

operation and maintenance and the interest paid on the working capital. The depreciation on various

components of the project has been worked out considering the life and also the lease period.

The project IRR has been calculated for the lifetime of the project activity i.e. 20years and includes all

the relevant revenues and costs associated with the project. The IRR of the project activity without

3 http://www.rbi.org.in/scripts/WSSView.aspx?Id=12213

4 2007

5 It should be recognized that as a project is funded by a mix of debt and equity, an unadjusted commercial lending

rate would not be suitable as this only represents the return on debt.

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taking into account the CER revenue is 10.25% which goes up to 14.29% with the inclusion of CDM

revenues. The input parameters of the investment analysis have been highlighted in the table below:

S. No. Parameter Unit Value1 Installed capacity MW 15

2 Plant Load Factor (PLF) % 35

3 Annual Gross generation MWh 45,990

4 Annual Auxiliary consumption & Losses MWh 50

5 Net exportable units (annual) MWh 45,940

6 Debt component % 70

7 Equity component % 30

8 Rate of interest for term loan % 13

9 Moratorium period Year 3

10 Repayment period Year 9

11 Operation & Maintenance cost % of project cost 1.5

11a Escalation on Operation & Maintenance cost % 4%12 Electricity tariff Rs/kWh 2.80

13 Interest on working capital % 12.25

14 Working capital components

14a O&M expenses Month 1

14b Receivables Months 2

14c Maintenance spares % of project cost 1

15 Book depreciation % 4.50

16 IT depreciation % 3.40

17 MAT rate % 11.33

18 Company tax rate % 33.99

19 Investment cost INR 1000 802,851

20 Operational lifetime Years 20

Sensitivity Analysis

The sensitivity analysis has been carried out in accordance with the – Guidance on the assessment of

investment analysis, version 02. The following parameters are expected to have a major impact on the

financial returns of the project activity and as per the guidance have been varied by ±10%:

1. Electricity tariff

2. Plant Load Factor (PLF)

3. Investment cost

4. Operation & Maintenance cost

The only revenue of the project activity comes from the export of power to the grid. Power will beexported to southern grid through a power purchase agreement with KPTCL. The results of the variation

are shown below:

Electricity Tariff

-10% -5% Base Case 5% 10%

IRR without 8.63% 9.45% 10.25% 11.01% 11.76%

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CDM

IRR with CDM 13.03% 13.66% 14.29% 14.89% 15.48%

An increase or decrease in Plant Load Factor (PLF) of the project activity will have an impact on thepower available for export to the grid thereby affecting the revenues of the project. The PLF has been

given a variation of ±10% to determine its effect on the financial situation of the proposed project.

PLF

-10% -5% Base Case 5% 10%IRR withoutCDM 8.63% 9.45% 10.25% 11.01% 11.76%

IRR with CDM 12.51% 13.41% 14.29% 15.13% 15.95%

The investment cost is unlikely to decrease due to time over runs related to small hydroelectric projects.

However the parameter has been given a variation of ±10% as per the investment guidance and the

results highlight the importance of CDM revenues for the setting up of the project activity.

Investment Cost


IRR with CDM 16.41% 15.30% 14.29% 13.34% 12.46%

The operation and maintenance cost associated with the project have been varied and the results are

tabulated below:

O&M cost


IRR with CDM 14.43% 14.36% 14.29% 14.21% 14.14%

The project IRR reaches the benchmark when either of the condition is met:

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1. The project just crosses the benchmark and achieves an IRR of 16.11% when the electricity tariff

is increased by 6.5% annually for the lifetime of 20 years. However such a situation is not

possible to occur since the tariff has been fixed by the Karnataka Electricity Regulatory

Commission (KERC).2. Even when the operation and maintenance cost is reduced to zero the IRR is 12.10% i.e. below

the benchmark. This condition is also not possible to achieve as there ought to be expenditure on

running the power plant during the technical lifetime of 20years.

3. The project attains an IRR of 16.00% and reaches the benchmark if there is a reduction of 27%

in the investment cost. This is a highly unrealistic condition since due to time over run in small

hydro power projects; the investment cost is always expected to increase.

4. The project achieves an IRR of 16.05% when the PLF increases by 40% i.e. PLF of 49%.

However such a situation is not possible as the PLF has been calculated in the DPR based on the

historical discharge data for the river and hence the PLF fluctuation to such a great extent is not

expected.

CDM Consideration

In line with Annex 46, EB41 since the start date of the project activity is after 2nd

August 2008, the

project proponents have notified the Designated National Authority (DNA) of India and the UNFCCC

about their intention to seek CDM status. The email and letters have been provided to the validator

during the site visit.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

>>

Baseline Emissions

In line with paragraph 9 of the methodology the baseline emissions have been calculated by the followingformula:

yCM grid y y EF EG BE ,,∗= Equation 1

Where:

BEy Baseline emissions in year y, tCO2e

EGy Net electricity exported by the project activity to the grid in year y, MWh

EFgrid,CM,y Combined margin CO2 emission factor for grid connected power generation in year y

, tCO2 /MWh

Since the combined margin CO2 emission factor determined in section B4 has been fixed ex-ante, this

equation may be simplified to the following:

85.0∗= y y EG BE Equation 2

Project emissions

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The project activity will not give rise to project emissions, as no fossil fuel will be combusted in the

project activity. Project emissions are therefore zero.

Leakage

Paragraph 12 of the methodology states – “ If the energy generating equipment is transferred from

another activity or if the existing equipment is transferred to another activity, leakage is to be

considered.”

No equipment transfer takes place thus no leakage is envisaged for the project activity.

Emission Reductions

y y y y LPE BE ER −−=

Equation 3

Where:ERy Emissions reductions generated in year y, tCO2e

BEy Baseline Emissions in year y, tCO2e

PEy Project emissions in year y, tCO2e

Ly Leakage emissions in year y, tCO2e

Since project emission and leakage values are zero the above equation reduces to:

y y BE ER =

Equation 4

Substituting the value of BEy from equation 2 emission reductions value becomes:

85.0∗= y y EG ER Equation 5

B.6.2. Data and parameters that are available at validation:

Data /

Parameter:

EFgrid,CM,y

Data unit: tCO2 /MWh

Description: Combined margin CO2 emission factor for grid connected power generation in year y

Source of data

used:

Central Electricity Authority - CO2 baseline database, version 04

http://cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.ht

m

Value applied: 0.85

Justification of

the choice of

data or

description of

measurement

methods and

procedures

The emission factor value has been provided by the Central Electricity Authority

(CEA), a government body for the southern grid in India.

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actually applied

:

Any comment: This parameter has been fixed ex-ante.

Data /

Parameter:

EFgrid,BM,y


Description: Build margin CO2 emission factor for grid connected power generation in year y

Source of data

used:



m

Value applied: 0.71

Justification of

the choice of

data ordescription of

measurement

methods and

procedures

actually applied

:

The build margin emission factor value has been provided by the Central Electricity

Authority (CEA), a government body for the southern grid in India.


Data /

Parameter:

EFgrid,OM,y


Description: Operating margin CO2 emission factor for grid connected power generation in year y

Source of data

used:



m

Value applied: 0.99

Justification of

the choice of

data or

description of

measurement

methods and

procedures

actually applied:

The operating margin emission factor value has been provided by the Central

Electricity Authority (CEA), a government body for the southern grid in India.


B.6.3 Ex-ante calculation of emission reductions:

>>

The emission reductions are calculated from equation 5 in Section B.6.1.

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85.0∗= y y EG ER

The project activity is expected to generate gross 45,990MWh of electricity annually and the saleable

energy is 45,940MWh after deduction of auxiliaries and losses amounting to 50MWh. The annual

emission reductions from the project activity are therefore estimated at 39,049 tCO2 from the above

equation.

2049,39 tCO ER y =

B.6.4 Summary of the ex-ante estimation of emission reductions:

>>

Year Estimation of

project activity

emission reductions

(tCO2 e)

Estimation of

baseline emissions

(tCO2 e)

Estimation of

leakage (tCO2

e) Estimation of

emission reductions

(tCO2 e)

Year 1 0 39,049 0 39,049

Year 2 0 39,049 0 39,049

Year 3 0 39,049 0 39,049

Year 4 0 39,049 0 39,049

Year 5 0 39,049 0 39,049

Year 6 0 39,049 0 39,049

Year 7 0 39,049 0 39,049

Total

(tonnes of

CO2 e)

0 273,343 0 273,343

B.7 Application of a monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored:

Data / Parameter: EGgross

Data unit: MWh

Description: Gross electricity generated by the project activity in year y

Source of data to be

used:

Plant records

Value of data 45,990

Description of

measurement methods

and procedures to be

A logbook will be maintained on site to record hourly readings from the energy

meter. The readings will be taken by the shift supervisor. This hourly data

will be signed off at the end of every shift by the engineer in charge of the shift

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applied: and again at the end of each day by the power plant manager.

QA/QC procedures to

be applied:

The generation energy meter will be calibrated at least once in three years6 by

an accredited independent third party. The accuracy level for active energy

measurement shall be as defined in the power purchase agreement.Any comment: All data will be kept for a minimum of 2 years following issuance of certified

emission reductions or the end of the crediting period, whichever is later.

Data / Parameter: EGaux

Data unit: MWh

Description: Auxiliary consumption by the project activity in year y


used:

Plant records

Value of data 50

Description of

measurement methods

and procedures to beapplied:

A logbook will be maintained on site to record hourly readings from the energy

meter. The readings will be taken by the shift supervisor. This hourly data

will be signed off at the end of every shift by the engineer in charge of the shiftand again at the end of each day by the power plant manager.

QA/QC procedures to

be applied:

The auxiliary meter will be calibrated at least once in three years by an

independent accredited third party. The accuracy level for active energy

measurement shall be as defined in the power purchase agreement.

Any comment: All data will be kept for a minimum of 2 years following issuance of certified


Data / Parameter: EGy

Data unit: MWh

Description: Net electricity exported by the project activity to the grid in year y


used:

Plant records

Value of data 45,940

Description of

measurement methods

and procedures to be

applied:

Joint meter readings will be taken at the interconnection point monthly by

representatives from the project activity and KPTCL. The accuracy level for

active energy measurement shall be as defined in the power purchase

agreement.

QA/QC procedures to

be applied:

The energy meter is a two way tri vector meter and will be calibrated as per the

power purchase agreement or at least once in three years by an independent

accredited third party. Invoices from KPTCL may be used as cross check for

net electricity used to calculate emission reductions.

Any comment: All data will be kept for a minimum of 2 years following issuance of certified


B.7.2 Description of the monitoring plan:>>

Monitoring shall consist of metering the gross generation, auxiliary consumption of electricity in the

project activity and the net electricity delivered to the grid at the interconnection point. The emission

6 As per paragraph 12(c), Annex 20, EB41, Indicative Simplified Baseline And Monitoring Methodologies For

Selected Small Scale CDM Project Activity Categories

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reductions will be calculated on the net electricity received by the grid. The power plant manager will

act as the overall authority for the monitoring of the project activity.

Internal AuditsAn internal audit will be carried out every year to ensure that the monitoring parameters are being

monitored in accordance with Section B.7.1. The audit reports will be provided to the DOE undertaking

periodic verification.

Monitoring procedures

There will be three 8 hour shifts and the readings from energy meters will be taken on a hourly basis by

the operators and recorded in logbooks. This hourly data will be signed off at the end of every shift by

the engineer in charge of the shift and again at the end of each day by the power plant manager. The

power plant manager will analyze the data every month and report to the head office. The joint meter

reading will be taken monthly at the interconnection point in the presence of representatives of KPTCL

and the project owner.

Period of archiving

The monthly data will be archived electronically at the end of the month and invoices of electricity

export and import will be maintained on site.

Training requirements

The suppliers of the equipments will train the staff in- charge during erection, to operate and maintain the

equipments efficiently. Apart from this, the equipment supplier will provide complete manuals and

documentation providing details for the maintenance schedule and the required activities associated with

it. After commissioning of the power plant, periodic training of employees would ensure that there are

no discrepancies in transferring of data from logbooks to soft copy.

Calibration of equipments

The monitoring meters will be calibrated according to national standards as defined in Section B.7.1.The calibration certificates will be made available at the time of verification.

QA/ QC of monitored data

The monitored data will be reported through GVP Infra Projects Pvt. Ltd. to Agrinergy Pte Ltd on a

monthly basis for the calculation and estimation of emission reductions. This data will be checked

against initial estimates and a summary report will be provided quarterly by Agrinergy. If the project is

not performing as expected or if there are any negative impacts on the volume of emission reductions

obtained, on the basis of the monthly data being monitored, a report will be sent to GVP Infra Projects

Pvt. Ltd. outlining where the project is deviating in its generation of emission reductions and the

immediate measures which need to be undertaken to maintain the expected generation of emission

reductions from the operation of this project. Should there be significant changes to the set-up or

operation of the plant, these will be notified to Agrinergy and amendments to the PDD will be requested

through a DOE.

B.8 Date of completion of the application of the baseline and monitoring methodology and the

name of the responsible person(s)/entity(ies)

>>

06/02/2009

Bhawna Singh

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Agrinergy Consultancy Pvt Ltd

[email protected]

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SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity: >>

08/07/2009 – Letter of Intent to TG manufacturer

C.1.2. Expected operational lifetime of the project activity:

>>

20y-00m

C.2 Choice of the crediting period and related information:

The project activity has opted for a 7 year renewable crediting period.

C.2.1. Renewable crediting period C.2.1.1. Starting date of the first crediting period:

>>

01/07/2010 or date of registration (whichever is later)

C.2.1.2. Length of the first crediting period:

>>

7y-00m

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:

>>

Not Applicable

C.2.2.2. Length:

>>

Not Applicable

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SECTION D. Environmental impacts

>>

D.1. If required by the host Party, documentation on the analysis of the environmental impacts

of the project activity:

>>

Existing Indian environmental legislation does not require an Environment Impact Assessment (EIA)7 to

be carried out for the project activity.

The project activity is a run-of-river project. As there is no storage structure, therefore, no submergence

is involved. The effects of project construction on flora and fauna aspects are negligible. There is no

displacement of any local inhabitants and therefore no rehabilitation measures are required. In terms of

air and water pollution the only anticipated pollution during construction phase of the project will be the

dust levels. Measures such as spraying water to combat dust and SPM levels will be followed during

construction to mitigate this.

The project thus does not endanger the species of flora and fauna in the area. The components of the

project are proposed on barren land and no forest cover is affected. The construction of project facilities

also does not involve any felling of any tree. The danger of erosion is minimal. The flows available in

the stream are proposed to be utilized without creating any additional storage. There will be no

disturbance to the existing eco-system.

D.2. If environmental impacts are considered significant by the project participants or the host

Party, please provide conclusions and all references to support documentation of an environmental

impact assessment undertaken in accordance with the procedures as required by the host Party:

>>

No environmental impacts were considered significant.

7 http://www.nlsenlaw.org/environmental-management/eia-public-hearing/law-policy/s-o-1533-e-14-09-2006-environmental-

impact-assessement-notification-2006-english/

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SECTION E. Stakeholders’ comments

>>

E.1. Brief description how comments by local stakeholders have been invited and compiled: >>

Comments from the local stakeholders regarding the project activity have been sought through publishing

a notification of the project activity in English and local language in the following newspapers:

1. The Times of India, Mangalore dated 17/02/2009

2. Vijaya Karnataka dated 17/02/2009

The notices provided information on the project activity and informed the local people of the company’s

intention to seek CDM status.

In addition to this the project is required to obtain mandatory approvals from other institutions. The

other stakeholders consulted are:

Stakeholder Name Function

Karnataka Renewable Energy

Development Limited (KREDL)

Policy implementation body in respect of renewable energy

projects in Karnataka. KREDL reviews the project

documentation and accords clearance for utilizing renewable

energy sources in the state

Karnataka Power Transmission

Corporation Limited (KPTCL)

The state owned electricity utility company that manages the

electricity transmission in Karnataka state. Any electricity

generation project proposed in Karnataka shall approach

KPTCL for power evacuation arrangements.

Karnataka State Pollution Control

Board (KSPCB)

A statutory local body that oversees the pollution control

aspects in the state. Any project activity shall obtain consent to

establish from the KSPCB before implementation.

Karnataka Irrigation Department Is part of Government of Karnataka and overseas utilization of

water in the state of Karnataka.

Local Village Panchayat Elected statutory body of the local populace will issue NOC for

implementing any project in the jurisdiction of the panchayat.

This body represents the local population.

Karnataka State Fisheries Department Accords clearance for the utilization of downstream flow of

water and disposal of silt.

Karnataka Urban Water Supply &

Drainage Board

The body grants permission for the construction of projects to

draw water.

Department of Energy, Government

of Karnataka

Accords permission to implement power projects in the state of

Karnataka.

Karnataka State Boilers Department Provides approval for any power project activity implemented inthe state.

E.2. Summary of the comments received:

>>

No comments have been received.

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E.3. Report on how due account was taken of any comments received:

>>

Since no comments were received no action has been taken.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: GVP Infra Projects Pvt. Ltd.

Street/P.O.Box: No.476, Tala Cauvery Layout, Amrutha Halli

Building: Byatarayanapura, New Bangalore Intl. Airport Road

City: Bangalore

State/Region: Karnataka

Postfix/ZIP: 560092

Country: India

Telephone: +91-80-41479522

FAX:

E-Mail:

URL:

Represented by:Title: Executive Director

Salutation: Mr.

Last Name: Rao

Middle Name: Padma

First Name: N

Department:

Mobile:

Direct FAX:

Direct tel: +91-80-41479522

Personal E-Mail: [email protected]

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Organization: Agrinergy Pte Ltd

Street/P.O.Box: 10 Hoe Chiang Road,

Building: #08-04 Keppel TowersCity: Singapore

State/Region:

Postfix/ZIP: 089315

Country: Singapore

Telephone:

FAX:

E-Mail:

URL: www.agrinergy.com

Represented by:

Title: Managing Director

Salutation: Mr

Last Name: AtkinsonMiddle Name:

First Name: Ben

Department:

Mobile:

Direct FAX: +65-63476181

Direct tel: +65-65920400

Personal E-Mail: [email protected]

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

The project has not received any public funding.

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Annex 3

BASELINE INFORMATION

The emission coefficient has been provided by Central Electricity Authority (CEA), a government body,

following the approach in paragraph 9(a) as a combined margin consisting of combination of operating

margin and build margin. The CEA has issued the CO2 baseline database, version 04 wherein the

emission factor for NEWNE and southern grid has been calculated as per the “Tool to calculate the

emission factor of the electricity system, version 01.1”. As the project activity lies in the southern part of

India, the southern grid has been taken as the relevant grid and the grid emission factor from CEA

database fixed ex-ante at 0.85tCO2 /MWh as shown in the below table:

Parameter tCO2 /MWh

Operating Margin 0.99

Build Margin 0.71

Combined Margin 0.85

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Annex 4

MONITORING INFORMATION

To implement the monitoring procedures described in Section B.7, the following organization structure

will be followed by the project owners:

The uncertainty in data is low as the meters will be regularly calibrated according to national standardsand also the data will be regularly monitored by Agrinergy Pte Ltd.

At the end of each year of operation Agrinergy will prepare a monitoring report that will be submitted to

a DOE for verification, however visits to the site may be undertaken by Agrinergy during the first year to

check that the procedures and monitoring plan are being followed. All data will be kept for a minimum

of 2 years following issuance of certified emission reductions or the end of the crediting period,

whichever is later.

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