Académique Documents
Professionnel Documents
Culture Documents
CONTENTS
D. Environmental impacts
E. Stakeholders’ comments
Annexes
Annex 1: Contact information on participants in the proposed small scale project activity
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Title: 5 MW Solar PV Power Project in Sivagangai Village, Sivaganga District, Tamil Nadu
Version: 01
Date: 05/03/2010
Sapphire Industrial Infrastructures Private Limited (SIIPL), a subsidiary of Moser Baer Clean Energy
Limited proposes to develop a 5 MW (P) grid connected solar PV power project in Sivaganga District in
the State of Tamil Nadu in Southern India. The project activity is expected to generate 8322MWh of net
electricity per annum. The entire power generated from this project will be sold to Tamil Nadu Electricity
Board (TNEB) by connecting it to southern grid through a power purchase agreement with TNEB. The
purpose of this project is to generate electricity by utilizing clean solar energy and to reduce the green
house gas emissions that have been emitted by the carbon intensive southern grid in India.
Economic well-being
The enhanced employment opportunities created by this project activity will lead to alleviation of
poverty, and educated unemployment, as it is ideal and more feasible for the project developer to employ
local workforce during the construction period and operational life time.
Environmental well-being
This project activity would be using the available solar potential in Sivagangai region for power
generation process, which has no associated GHG emissions. This will certainly have a positive impact on
the environment both at local and global level.
Technological well-being
The project activity will be making use of the reliable and proven technology available locally to ensure
that an environmentally safe technology is only being implemented in the proposed project activity.
1
http://envfor.nic.in/divisions/ccd/cdm_iac.html
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Setting up of this project will also increase the private sector participation in this project category thereby
contributing to more green power to the grid system.
Name of Party involved Private and/or public Kindly indicate if the Party
((host) indicates a host Party) entity(ies) involved wishes to be
project participants considered
(as applicable) as project participant (Yes/No)
The project location is situated about 8 km from the Sivagangai town in Sivaganga district in the State of
Tamil Nadu. Sivaganga district is situated in southern part of India near South Eastern coast and is bound
by Madurai district on Western side, Pudukkottai district on Northern side and Ramanathapuram district
on Southern side. The location map of the project is as given below –
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The nearest railway stations are in Karaikudi and Manamadurai they are at distances of 65 km and 16 km
respectively from the project site. The nearest airport is in Madurai and is 41 km from the project site.
The project site is well connected from airport and railway station by NH 49 and NH/SH 7 & 45B
respectively. The geographic co-ordinate of the project location is 78026’42.7” to 78027’56.3” (E)
Longitude and 09048’04.7” to 9048’31.3” (N) Latitude.
A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:
Technology/Measure
This category comprises renewable energy generation units, such as photovoltaics, hydro, tidal/wave,
wind, geothermal and renewable biomass, that supply electricity 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. As the proposed project activity is the implementation of grid connected solar power
generation project, it falls under this category.
Technical description
The project activity is solar photovoltaic based power generation. The rated capacity of the power plant
will be 5MW at standard test conditions of 1000W/m2 solar radiation, 250C ambient temperature and 1.5
air mass.
The proposed plant will be predominantly north south oriented and layout with flat panel of thin film type
modules of PV array will be prepared.
Photovoltaic module consists of several photovoltaic cells connected by circuits and sealed in an
environmentally protective laminate, which forms the fundamental building blocks of the complete PV
generating unit. Several PV panels mounted on a frame are termed as PV Array.
The DC electric power generated by the photo voltaic modules will be converted into 415V, 3 phase,
50Hz, AC power in a number of outdoor inverters, stepped up to 11000V through a set of outdoor
transformers located in a distributed manner all over the plant. From the outgoing side of the
transformers, power will be transmitted through a set of cable feeders to 11kV indoor switchboard in a
centrally located grid interface substation. In the substation, the total power generated will be stepped up
to 110kV in a 6.3MVA, 11/110kV power transformer with its associated 110kV outdoor switch gear
located in a switch yard for interconnection to the 110kV transmission line of TNEB.
A technical detail of different equipment of the proposed solar PV system is summarized below:
SN Parameters Description
1 Type of PV Modules 1. Flat panel or thin film type
PV modules
2 Capacity of each Module proposed 78W (P) / any other compatible
size.
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A.4.3 Estimated amount of emission reductions over the chosen crediting period:
A.4.5. Confirmation that the small-scale project activity is not a debundled component of a
large scale project activity:
According to paragraph 2 of Appendix C3 to the Simplified Modalities and Procedures for Small-Scale
CDM project activities (FCCC/CP/2002/7/Add.3), a small-scale project is considered as 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 activity:
None of the above applies to the proposed project activity and the project participant has not registered or
applied for registration of another project. Therefore the proposed project is not a debundled component
of a larger CDM project activity.
2
Renewable crediting period of 7 years is assumed
3
http://cdm.unfccc.int/EB/Meetings/007/eb7ra07.pdf
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B.1. Title and reference of the approved baseline and monitoring methodology applied to the
small-scale project activity:
AMS I-D draws into following tool to determine baseline for electricity system
The position of the CDM project activity vis-à-vis applicability conditions in the AMS-I.D is described in
the following table.
Applicability Conditions Position of the project activity vis-à-vis
applicability conditions
This category comprises renewable energy The project activity is a 5MW (P) solar PV based
generation units, such as photo-voltaics, hydro, power generation project that generates and exports
tidal/wave, wind, geothermal and renewable renewable electricity to the southern grid system.
biomass, that supply electricity 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.
Hydro power plants with reservoirs that satisfy at The project activity is not a hydro power plant.
least one of the following conditions are eligible to
apply this methodology:
• The project activity is implemented in an existing
reservoir with no change in the volume of
reservoir;
• The project activity is implemented in an existing
reservoir, where the volume of reservoir is
increased and the power density of the project
activity, as per definitions given in the Project
Emissions section, is greater than 4 W/m2;
• The project activity results in new reservoirs and
the power density of the power plant, as per
definitions given in the Project Emissions section,
is greater than 4 W/m2.
If the unit added has both renewable and non- The project activity is only 5 MW (P) solar PV
renewable components (e.g.. a wind/diesel unit), based renewable electricity generation project. It
the eligibility limit of 15MW for a small-scale does not include any non renewable unit and co-
CDM project activity applies only to the renewable firing system.
component. If the unit added co fires fossil fuel, the
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The project activity is installation of 5 MW (P) of solar PV modules and there would not be any change in
the capacity of the project during its crediting period. Since the project generates and exports renewable
electricity to the grid system and the capacity of the project activity is well below the qualifying limit of
15 MW. Hence the choice of project Type and category is justified.
As per Para 7 of Indicative simplified baseline and monitoring methodologies for selected small scale
CDM project activity category, the physical, geographical site of the renewable generation source
delineates the project boundary.
SUN
Project boundary
Hence the project boundary includes the Solar PV system and metering/substation system.
The project activity is generation of electricity using solar energy and exporting the same to the grid
system, which is also fed by other fuel sources such as fossil and non-fossil types. Emission reductions
due to the project activity are considered to be equivalent to the emissions avoided in the baseline
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scenario by displacing the grid electricity. Emission reductions are related to the electricity exported by
the project and the actual generation mix in the grid system.
As per applied methodology, the baseline emissions is the product of electrical energy baseline EGBL,y,
expressed in kWh of electricity produced by the renewable generating unit multiplied by an emission
factor.
Where,
BEy is the baseline emissions in year y, tCO2
EGBL,y is the energy baseline in year y; kWh
EFCO2 is the CO2 emission factor in year y, tCO2e/kWh
The emission factor can be calculated in a transparent and conservative manner as follows:
(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.
Option (a) has been considered to calculate the grid emission factor as per the ‘Tool to calculate the
emission factor for an electricity system’ as data is available from an official source.
In this project activity, Grid emission factor has been calculated and fixed ex-ante.
The Operating Margin has been taken as an average of the past 3 years:
Operating Margin4
According to ‘Tool to calculate the emission factor for an electricity system’, Build Margin of the last one
year has been selected:
Build Margin5
Year 2008-09
Build Margin (tCO2/MWh) 0.8179232
4
Baseline carbon dioxide database version-05 published by Central Electricity Authority.
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm
5
Baseline carbon dioxide database version-05 published by Central Electricity Authority.
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm
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• Source: Baseline Carbon Dioxide Emissions from Power Sector, Central Electricity Authority,
India6. For more detail calculation, please refer Annex-3 in this PDD.
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:
This project activity is an initiative of Sapphire Industrial Infrastructures Private Limited (SIIPL), a
subsidiary of Moser Baer Clean Energy Limited. The proposed project activity is implementation of 5
MWp grid connected solar power project in Sivaganga District in the State of Tamil Nadu in Southern
India.
The additionality for the Project Activity has been demonstrated as per “Non-binding best practice
examples to demonstrate additionality for SSC project activities” (EB35, Annex 34).
As per EB35 report, Annex 34, Project participants shall provide an explanation to show that the project
activity would not have occurred anyway due to atleast one of the following barriers:
(a) Investment Barrier: a financially more viable alternative to the project activity would have led
to higher emissions
(b) Access-to-finance barrier: the project activity could not access appropriate capital without
consideration of the CDM revenues
(c) Technological barrier: a less technologically advanced alternative to the project activity
involves lower risks due to the performance uncertainty or low market share of the new
technology adopted for the project activity and so would have led to higher emissions
(d) Barrier due to prevailing practice: prevailing practice or existing regulatory or policy
requirements would have led to implementation of a technology with higher emissions;
Best practice examples include but are not limited to, the demonstration that project is among the first
of its kind in terms of technology, geography, sector, type of investment and investor, market etc.
(e) Other barriers: such as institutional barriers or limited information, managerial resources,
organizational capacity, or capacity to absorb new technologies.
The additionality for this project activity is established with a more in depth investment analysis and
barrier due to prevailing practice which may affect the successful implementation and operation of the
proposed project activity.
Investment Barriers:
For the purpose of carrying out an investment analysis, the prime financial indicator that has been used is
the Internal Rate of Return of the project activity i.e. the Project IRR. The Project IRR is one of the most
commonly used tools to assess the feasibility of the project. As per Guidance on the Assessment of
6
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm
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Investment Analysis, version-03, EB 51/Annex 58, the benchmark chosen is the Prime Lending Rate
(PLR) published by RBI in a weekly statistical supplement dated 25th July 2008 which is 12.75%7.
The project profitability statement has been developed by taken into consideration the following
assumptions –
Technical Parameters:
Parameters Value Unit Reference/Remarks
Project capacity 5 MW (P) -
Plant load factor 19% % The PLF has been taken from detailed project report
prepared by a third party contracted by PP. The same
report was submitted to Bank for Loan approval. This
is in line with “GUIDELINES FOR THE REPORTING
AND VALIDATION OF PLANT LOAD FACTORS,
Version” 1, EB48.
Financial parameters:
Parameters Value Unit Reference/Remarks
Total project cost Rs. 9990 Rs. In lacs As per project report.
Lacs
Grant from Rs. 1920 lacs Rs. In lacs Letter from IFC.
International
finance corporation
(IFC)
Debt Rs. 4900 lacs Rs. In lacs As per project report
Equity Rs. 3170 lacs Rs. In lacs As per project report
Interest rate 12% % As per project report
Corporate tax 33.99% % IT act (2008-09)
Minimum 11.33% % IT act (2008-09)
Alternative Tax
SLM depreciation 3.34% % As per company’s law 1956,
on Civil works www.fastfacts.co.in/resources/DepCoAct.rtf
SLM depreciation 10.34% % As per company’s law 1956,
on Plant & www.fastfacts.co.in/resources/DepCoAct.rtf
machinery
IT depreciation on 10% % As per income tax act 2008-09
civil works
IT depreciation 15% % As per income tax act 2008-09
Annual O & M cost Rs. 9.00 Lakhs/MW As per project report
Annual escalation 5.72% % As per project report
on O & M cost
Power tariff 4.50 Rs./KWh TNERC endorsement letter dated 25/09/2009
MNRE incentive 10.50 Rs./KWh As per MNRE guideline,
http://mnes.nic.in/pdf/guidelines_spg.pdf ; para 4.3
Moratorium 12 Months As per project report
7
http://rbidocs.rbi.org.in/rdocs/Wss/PDFs/86374.pdf
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Considering the above mentioned assumptions and working out a project profitability statement over
project life time the Project IRR without considering the revenues from CDM works out to 9.99% as
against the Benchmark of 12.75%.
Sensitivity Analysis
Sensitivity analysis has been carried out to test the project additionality for the reasonable variation of
critical parameters that may impact the performance of the project activity. As required by Annex 58 EB
51 “Guidance on the assessment of investment analysis” only those parameters that constitute more than
20% of either total project costs or total project revenues are subjected to reasonable variation. The
critical parameters thus identified are Project cost, Operation and Maintenance (O&M) expenses, the
Plant load factor (PLF) and power tariff.
Sensitivity analysis with respect to identified parameters has been tabulated below:
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In addition to this, private companies are eligible to get production based incentive for power fed to the
grid from megawatt capacity solar power plants set up on build own and operate basis in the country10.
The National Action Plan on Climate Change has also identified development of solar energy in the
country by setting up a Solar Mission11.
Though the Ministry is implementing several schemes to promote solar energy but the growth of
utilization of solar PV power systems is very nominal in the country. This is because of the high initial
cost of solar energy systems which is a barrier in large scale utilization of solar energy systems, especially
for power generation12.
The growth of Indian Power Sector is quite impressive as the installed capacity has grown from 124287.2
MW13 as on 31/03/2006 to 144130.2 MW14 as on 31-03-08 but at the same time the growth of grid
connected solar PV power is negligible. There was not any grid connected solar PV power plant in India
8
http://mnes.nic.in/press-releases/press-release-19112007-1.pdf
9
http://mnes.nic.in/press-releases/press-release-12102007.pdf
10
http://mnes.nic.in/press-releases/press-release-31032008.pdf
11
http://mnes.nic.in/press-releases/press-release-15122008-3.pdf
12
http://mnes.nic.in/press-releases/press-release-13072009.pdf
13
http://www.cea.nic.in/planning/c%20and%20e/user%20guide%20ver1.1.pdf
14
http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver4.pdf
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till 31/01/200715. In the financial year 2007-08, with the financial support from Indian Government a total
of 33 grid interactive solar PV power plants have been installed with aggregate capacity of 2.12
Megawatt with estimated generation of 2.55 million units of electricity in a year16. There was no further
addition to the installed grid interactive solar PV power generation till 31/03/2009 and the total
cumulative achievement on grid connected solar PV power capacity as on 31/03/2008 is only 2.12MW
against the estimated potential of 50MW/Sq. KM17. The following table clearly demonstrates the growth
of grid connected power sources in India.
It is evident from the table above that around 64% of installed capacity comes from thermal stations, 25%
from hydro, 3% from nuclear stations and 8% from renewable sources. Against this, the grid connected
solar PV power projects in operation in India is only 2.12MW with a contribution of 0.00147% of total
installed grid power, which is negligible.
Apart from this, under the demonstration programme of MNRE a 2MW capacity grid interactive solar
photovoltaic power plant is being set up by West Bengal Green Energy Development Corporation
Limited in Asansol district in West Bengal and it is likely to be commissioned in December 2009. In
15
http://mnes.nic.in/annualreport/2006_2007_English/HTML/ch2_pg4.htm
16
http://mnes.nic.in/press-releases/press-release-31032008.pdf
http://mnes.nic.in/press-releases/press-release-28042008-5.pdf
17
http://mnes.nic.in/annualreport/2008-09EN/overview.htm
18
http://www.cea.nic.in/planning/c%20and%20e/user%20guide%20ver1.1.pdf
19
http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver2.pdf
20
http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver4.pdf
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addition, Karnataka Power Corporation Limited is also setting up a mega watt capacity solar photovoltaic
power plant under the same programme in Raichur district at the tail-end of the grid21.
Table: Solar PV Power Projects under Implementation
Location Developer Capacity (MW)
Asansol district, West bengal West Bengal Green energy 2
development corporation
limited
Raichur district in Karnataka Karnataka Power corporation 1
limited
The power generation capacity of Tamil Nadu is around 10214 MW which includes Central share and
Independent Power Producers. Other than this, the state has installations in renewable energy sources like
windmill up to 4300 MW22. The quantum of grid connected solar system in Tamil Nadu is at present only
0.165 MW23. The % shares of these sources are summarized in Table below.
Table: % share of different grid connected power sources in Tamil Nadu
Sources % share
Thermal 29%
Central Share 28%
Hydro 21%
IPP 12%
Gas 5%
Grid connected solar 0.00162%
The above analysis demonstrates that the installed grid connected power is predominantly thermal based
(64%) and the contribution of grid connected solar PV power in India is negligible. The contribution of
total grid connected solar PV power in India is 0.00147% of total installed capacity and the share of grid
connected solar PV power in Tamil Nadu is only 0.00162%. It also demonstrates that the project activity
is the country’s largest grid interactive solar PV power plant and country’s first private sector megawatt
size grid connected solar PV power plant.
From above analysis it can be concluded that implementation of solar PV power project is not a common
practice in the Host Country.
CDM Consideration:
As per the GUIDANCE ON THE DEMONSTRATION AND ASSESSMENT OF PRIOR
CONSIDERATION OF THE CDM, VERSION-3–
21
http://mnes.nic.in/press-releases/press-release-13072009-2.pdf
22
http://www.tneb.in/template_3.php?tempno=3&cid=0&subcid=184
23
http://tnerc.tn.nic.in/orders/Order%20No%206-11.07.08.pdf
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The project activity falls under “New Project Activities”. The project participant informed the Host
Party DNA and the UNFCCC secretariat in writing of the commencement of the project activity and of
their intention to seek CDM status. Such notification was made within six months of the project activity
start date.
Following demonstrates the serious consideration of CDM by PP in implementation of the project under
discussion-
This is a renewable power generation project, supplying the entire power generated from the solar farm to
the grid. This form of energy generation has no associated GHG emissions. So, the emission reductions
will just depend on the quantity of electricity being supplied to the grid system.
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The baseline emission 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.
Where,
BEy is the baseline emissions in year y, tCO2
EGBL,y is the energy baseline in year y, kWh
EFCO2 is the CO2 emission factor of the grid in year y (tCO2/kWh).
Leakage (Ly):
Leakage due to transfer of equipments from another activity:
The equipments installed in the project activity are not transferred from any other activity. Hence leakage
for this part is zero.
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Baseline emissions:
Baseline emission is calculated as per equation (1) in section B.6.1
BEy = EGy * EFy
PLF (19%) in base value has been taken from the report of Central Electricity Regulatory Commission on
Tariff regulation of Renewable energy. The same PLF has been given by a third party contracted by PP.
Project emissions:
Not applicable as this is a solar power generation project.
PEy = 0
Leakage emissions:
No leakage emissions occur due to this project activity.
LEy = 0
Emission reductions:
ERy = BEy – PEy - LEy
or
ERy = BEy as PEy = 0 and LEy = 0
ERy = 7866 tCO2/annum
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The organisation structure for the proposed power plant envisages a Site Engineer as the in-charge for the
entire power plant operations and maintenance. He will be positioned at site and will directly report to the
Board of Directors. He will be assisted by shift in charge and maintenance technicians.
The day-to-day operation like planning the routine maintenance, safety and environmental control will be
placed under the care of the shift in charges. All administrative functions like personnel, industrial
relations, labour welfare and financial functions will be looked after by SIIPL. The organizational
structure and responsibilities on project operation, monitoring and data recording has been mentioned
below: Director
Site Engineer
Shift engineer
Maintenance technician
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Organizational Structure
Designation Responsibilities
Director Holds complete control over monitoring aspects
pertaining to the project
Site Engineer • Operation & Maintenance
• Recording
• Storage of Data
Shift engineer & Maintenance • Day to day Operation
technician • Storage of data
• Data Recording
Operating and maintaining a solar PV power plant requires certain degree of skills and exposure to state
of the art equipment and technology. In order to maintain a close knit operation and safe maintenance,
sufficient training will be imparted to the O&M team before the implementation of the project.
The parameters required for monitoring would be the energy supplied to TNEB grid. This data would be
measured monthly and achieved annually. The electricity generated in the project activity will be
monitored using energy meter as specified in the project boundary. Measurement methods and procedures
will be according to that detailed in the Power Purchase Agreement. Main meter and check meter will be
installed with facilities to record export and import of energy and as per the standards stipulated in the
Central Electricity Authority’s Regulation 2006 and regulation issued by the State electricity regulatory
commission.
The energy generation readings will be taken on a said date on a month by TNEB personnel in the
presence of SIIPL site in-charge. All the monitoring data will be stored in log book and kept under safe
custody. Energy meters used would be in the custody of TNEB and they will be maintained as per the
norms stipulated in the PPA with TNEB. The energy generation data would be available for a period of 2
years beyond the crediting period date.
B.8 Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
The date of completion of baseline and monitoring methodology is 17/12/2009. The contact details of the
entity responsible for same is as below –
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25 years
C.2 Choice of the crediting period and related information:
Yes
The start date of the crediting period is 01/05/2010 or a date not earlier than the date of registration of the
small scale project activity
7 years
NA
NA
C.2.2.2. Length:
NA
D.1. If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:
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As per the notification from MoEF dated September 14, 200624, the list of project activities which require
prior environmental clearance is stipulated. This does not include the proposed small scale project activity
type as it involves solar power generation.
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:
Following positive environmental impacts have been envisaged:
2. Using solar panels doesn't release carbon dioxide, nitrogen oxide, sulpher dioxide, or mercury
into the atmosphere as many traditional forms of electrical generation do.
3. The solar panels operate silently, have no moving parts, and don't release offensive smells.
4. Does not contribute to acid rain, global warming, or smog and it reduces the emission into
environment.
No significant negative impacts considered due to implementation of project activity by the host party.
Hence, no references or procedures specified here.
E.1. Brief description how comments by local stakeholders have been invited and compiled:
Stakeholder consultation for the project activity has been conducted to account for the views of the people
impacted either directly or indirectly due to the project activity. This has been carried out at all levels of
stakeholders –
SIIPL had published public notices in leading news papers on 17/06/2009. Through this notice SIIPL had
expressed their plan to develop the proposed 5 MW grid connected project as a CDM project activity and
called for the suggestions/comments of the local stakeholders. In line with the public notice, a meeting
was held in the Community Hall, Muthupatti Village Sivagangai District on 24/06/2009.
This meeting was attended by Mr. Ganesan – President, Muthupatti Village Panchayat, Mr. Samuel
Rajasekaran – Executive Engineer, TNEB, Tahsildar, the Block Development Officer and Mr. S.
Nagarajan - Honourable Additional Collector and Secretary – District Advisory Committee on Renewable
Energy, Sivagangai.
24
http://envfor.nic.in/legis/eia/so1533.pdf
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The representatives of SIIPL explained all stakeholder’s about the project activity and the likely social
benefits to the local populace from the proposed project in terms of employment opportunity.
The Executive engineer of Tamil Nadu, Sivagangai expressed his views and welcomed this solar power
project and mentioned that the necessary departmental support will be given to the project.
The Muthupatti Panchayat president also conveyed his best wishes to the project and extended his support
along with local people for success of the project.
E.3. Report on how due account was taken of any comments received:
There were no negative comments received from the stakeholders. Therefore, It was not necessary to take
due account of any of the other comments received.
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Annex 1
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Annex 2
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Annex 3
BASELINE INFORMATION
Calculation of Grid emission factor:
As per methodology:
(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.
Option (a) has been considered to calculate the grid emission factor as per the ‘Tool to calculate the
emission factor for an electricity system’ as per the methodology as data is available from an official
source.
The tool defines the electric power 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. Keeping this into consideration, the Indian grid system was
divided into five independent regional grids, namely Northern, Eastern, Western, Southern, and North-
Eastern. Each grid covered several states (see Table 3.1). Since August 2006, however, all regional
grids except the Southern Grid have been integrated and are operating in synchronous mode, i.e. at
same frequency. Consequently, the Northern, Eastern, Western and North-Eastern grids will be
treated as a single grid and is being named as NEWNE grid.
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The project activity is in the state of Tamil Nadu, which is connected to Southern Grid. Thus the Southern
grid has been considered for estimating the grid emission factor. These states under the regional grids
have their own power generating stations as well as centrally shared power-generating stations.
STEP2: Choose whether to include off-grid power plants in the project electricity system (optional)
Project participants may choose between the following two options to calculate the operating margin and
build margin emission factor:
The calculation of the operating margin emission factor (EFOM,y) is based on one of the following
methods:
(a) Simple OM, or
(b) Simple adjusted OM, or
(c) Dispatch data analysis OM, or
(d) Average OM.
Any of the four methods can be used, however, the simple OM method (option a) can only be used if low-
cost/must-run resources constitute less than 50% of total grid generation in:
1) average of the five most recent years, or
2) based on long-term averages for hydroelectricity production.
Table below analyses whether simple OM can be used in the project case or not:
Generation source 2004-0525 2005-06 2006-07 2007-08 2008-09 Average (last five
years)
Southern grid
Net Generation (GWh) 134675.841 138328.5 152205. 157315. 157,336 147,972.36
25
Net generation and % of low cost/must run sources has been taken from “Baseline carbon dioxide database”,
version-05 published by Central Electricity Authority.
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm
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5 95 02
% of Low cost/ Must 25.36%
run sources 21.61% 27.00% 28.31% 27.08% 22.79%
The above table clearly shows that the percentage of total grid generation by low-cost/must-run plants (on
the basis of average of five most recent years) is much lesser than 50% of the total generation. Thus,
Simple OM method can be used for calculating the emission factor.
STEP 4. Calculate the operating margin emission factor according to the selected method:
For the simple OM, the simple adjusted OM and the average OM, the emissions factor can be calculated
using either of the two following data vintages:
• Ex ante option: A 3-year generation-weighted average, based on the most recent data available
at the time of submission of the CDM-PDD to the DOE for validation, without requirement to
monitor and recalculate the emissions factor during the crediting period, or
• Ex post option: The year in which the project activity displaces grid electricity, requiring the
emissions factor to be updated annually during monitoring. If the data required to calculate the
emission factor for year y is usually only available later than six months after the end of year y,
alternatively the emission factor of the previous year (y-1) may be used. If the data is usually only
available 18 months after the end of year y, the emission factor of the year proceeding the
previous year (y-2) may be used. The same data vintage (y, y-1 or y-2) should be used throughout
all crediting periods.
The simple OM emission factor is calculated as the generation-weighted average CO2 emissions per unit
net electricity generation (tCO2/MWh) of all generating power plants serving the system, not including
low-cost / must-run power plants / units.
In the project activity, (ex-ante) the generation-weighted average for the most recent 3 years for which
data are available at the time of PDD submission to DOE has been considered. The data is published by
the Central Electricity Authority. This is designed to be consistent with of the Tool to calculate the
emission factor for an electricity system published by CDM Executive Board. It is confirmed that ex-
ante vintage is considered in the project activity and cannot be changed during the crediting period.
Year Southern
Value (tCO2/ MWh)
2006-07 0.9991209
2007-08 0.9906235
2008-09 0.9729247
Simple OM, average 0.9875564
STEP 5. Identify the group of power units to be included in the build margin (BM):
The value of the data has been taken from the data published by CEA as referred in earlier step. The CEA
Baseline Database has been calculated as per the tool and the details of the key assumptions considered to
calculate the figure can be found in the User Guide of the same.
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Project participants can choose between one of the following two options:
Option 1:
Calculate the Build Margin emission factor EFBM,y ex-ante based on the most recent information available
on plants already built for sample group m at the time of PDD submission. The sample group m consists
of either the five power plants that have been built most recently or the power plant capacity additions in
the electricity system that comprise 20% of the system generation (in MWh) and that have been built
most recently. Project participants should use from these two options that sample group that comprises
the larger annual generation.
Option 2:
For the first crediting period, the Build Margin emission factor EFBM,y must be updated annually ex-post
for the year in which actual project generation and associated emissions reductions occur. For subsequent
crediting periods, EFBM,y should be calculated ex-ante, as described in option 1 above. The sample group
m consists of either the five power plants that have been built most recently or the power plant capacity
additions in the electricity system that comprise 20% of the system generation (in MWh) and that have
been built most recently. Project participants should use from these two options that sample group that
comprises the larger annual generation.
Option 1 as described above is chosen in the project activity. BM is calculated ex-ante based on the most
recent information available at the time of submission of PDD and is fixed for the entire crediting period.
STEP 7. Calculate the combined margin (CM) emissions factor (EFgrid, CM, y ):
Where:
Parameter Detail
EFgrid, OM,y Build Margin CO2 emission factor in the year y (tCO2/MWh)
EFgrid, BM,y Operating Margin CO2 emission factor in the year y (tCO2/MWh)
WOM Weighting of operating margin emission factor (%)
WBM Weighting of build margin emission factor (%)
Where:
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A weightage of 75:25 is assumed in the calculation of emission factor as this is a solar based power
generation project. The value chosen is taken from relevant official sources and is publicly available26.
Sub bundle OM, Operating Margin BM, Build Margin CM, Combined Margin
Value (tCO2/ MWh)
Southern Grid 0.9875564 0.8179232 0.9451481
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http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver5.pdf
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Annex 4
MONITORING INFORMATION
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