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PROJECT DESIGN DOCUMENT FORM FOR SMALL-SCALE CDM PROJECT ACTIVITIES (F-CDM-SSC-PDD) Version 04.1

PROJECT DESIGN DOCUMENT (PDD)

Title of the project activity Version number of the PDD Completion date of the PDD Project participant(s) Host Party(ies) Sectoral scope(s) and selected methodology(ies)

Phulibagar HEP, Uttarakhand 01.1 19/06/2012 Eastern Ramganga Valley Hydel Projects Co. Pvt. Ltd India Sectoral Scope - 1 Approved small scale methodology AMS-I.D. / Version 17, Sectoral Scope: 01, EB 61 of the Appendix B of Simplified Modalities and Procedures (M&P) of Small Scale CDM Project Activity. 17929

Estimated amount of annual average GHG emission reductions

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SECTION A. Description of project activity A.1. Purpose and general description of project activity Eastern Ramganga Valley Hydel Project Co. Pvt. Ltd., a Special Purpose Vehicle (SPV) of the parent company, Energy Development Company Ltd (EDCL) is the promoter of the project activity. EDCL has been involved in developing multiple hydro power projects all over the country and has sought financial support under CDM for investment in its hydro power projects. The project activity is a run of the river project which entails utilization of hydel energy from Jakula nadi which is a tributary of the river Eastern Ramganga. The project activity would have two units each of capacity 2.5 MW. Therefore the project activity would have an overall installed capacity of 5 MW. The electricity generated will be exported to the NEWNE1 Grid of India.

Purpose of the Project Activity

The purpose of the project activity is to utilize the hydro electricity generation potential of the Jakula nadi for generation of electricity. The project activity reduces anthropogenic emissions of greenhouse gases (GHGs) into the atmosphere, by displacing non-renewable fossil fuel based electricity that would have otherwise been generated by the operation and expansion of the fossil fuel based power plants connected to the NEWNE grid. Scenario existing prior to the implementation of the project activity This is a green-field project. No power generation facility existed at the project site before the project activity. Project Scenario The project activity under consideration involves installation of a 5 MW Hydro Power Project in the state of Uttarakhand, India. The project activity involves development, supply, erection, commissioning and operation of a 5 MW Hydro Power Plant. The project activity will generate approximately 20148 MWh of gross electricity per annum which will be exported to the NEWNE grid of India. The NEWNE grid is the inter-connected grid of the four regional grids namely, Northern, Eastern, Western and North-Eastern regional grids of India, in order to diversify the grid composition and reduce greenhouse gas emissions (i.e. displacement of electricity that would be provided to the grid by more-GHG-intensive means) thereby contributing to sustainable development. The project activity is expected to result in emission reductions of 17929 tonnes of CO2e per annum.

NEWNE: Northern Eastern Western North Eastern

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Baseline Scenario: According to the approved methodology AMS-I.D, the baseline scenario for the project activity is: The baseline scenario is that the electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources into the grid. In the absence of the project activity, an equivalent quantum of electricity would have been generated by the operation of grid-connected power plants and by the addition of new generation sources to the NEWNE Grid. Therefore, for the project activity under consideration the baseline scenario and the scenario existing prior to the start of the implementation of the Project activity are same.

Projects contribution to sustainable development The Government of India (host country government) has stipulated the following indicators for sustainable development in the interim approval guidelines for CDM projects Social well being Economic well being Environmental well being Technological well being

Social Well Being: The project activity would lead to development of roads and local infrastructure The project activity, during its various phases, would lead to the creation of job amongst the people of the nearby region Economic Well Being: The project activity would lead to the creation of business opportunities for the equipment manufacturers, suppliers, contractors and other consultants. The project will lead to improvement in power scenario in the state of Uttarakhand, thereby catering to power requirements of the local people and help in improvement of their quality of life. Furthermore it would attract other investors to invest in the same region, enhancing the business & employment opportunities for local populace. Environmental Well Being: The project involves power generation from renewable source (hydro power) and avoids combustion of fossil fuel for power generation and hence does not lead to any GHG emissions in the environment.

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Technological Well Being: The project would involve use of environmentally safe and sound technology for generation of power. The technology used in project activity is well-proven and successful implementation of the project will further promote the use of it. A.2. Location of project activity A.2.1. Host Party(ies) India A.2.2. Region/State/Province etc. State: Uttarakhand A.2.3. City/Town/Community etc. District Pithoragarh Tehsil: Munsiari Village - Phulibagar A.2.4. Physical/ Geographical location

The project activity is located at Phulibagar in Pithoragarh District in the state of Uttarakhand, India. The project activity is located on the Jakula nadi tributary of the Eastern Ramganga river. The nearest rail head from the project site is located at Tanakpur. The nearest airport to the proposed power project is at Dehradun. The geographical co-ordinates of the project site are: Latitude:300211 North Longitude:800906 East.

Figure 1 illustrates the location of the proposed project.

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A.3. Technologies and/or measures Technical details of the project activity:

The project activity involves installation of a run-of -river hydro power project at Jakula nadi. The power house for the project will be located at right bank of river Jakula nadi near Kwiti village. Two turbines each with capacity of 2.5 MW would be installed. Therefore on an aggregate basis the project activity will have an overall installed capacity of 5 MW. A Penstock of diameter 1,300 mm is supposed to be constructed. With an installed capacity of 5 MW the project has got a gross generation capacity of 20148MWh/year. The technology employed in the project activity is environmentally safe and sound. The salient feature of the technology involved in the project activity is as follows:

Particulars Hydrology at Intake Gross Catchment Area Diversion Arrangement Type Length No. of gates

Description

69 sq. km

Trench weir 16m 1 at intake location and 1 at Silt Flushing Outlet

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Type of gates Penstock Number Diameter and thickness Length Bifurcation Power house Type of turbine Type of generator Installed capacity Number and Rating Power Generation Installed capacity Gross Generation Net Generation

Vertical lift gates

1 1300 mm dia, 10 mm thick 420m 1300 mm dia pipe shall be bifurcated into two 1000 mm dia pipes

Horizontal Shaft Francis Synchronous type 5 MW 2 Turbine generating unit, each of 2.5 MW

5 MW 20148MWh 19448MWh

With an installed capacity of 5 MW and plant load factor of 46%, the project activity has the potential to generate 20148MWh of gross power. The auxiliary consumption of the project activity is 0.5% and outage loss is around 5% and considering transformation loss of 0.5%, the net electrical energy connected to the NEWNE regional grid is to the tune of 19448. There will not be any free electricity supplied to the grid for the first 15 years , however after 15 years of operation 18% of electricity would be supplied free to the state .

As discussed in Section A.1 both the baseline and the pre project scenario are similar. There is no technology transfer involved in this project activity.

A.4. Parties and project participants Party involved (host) indicates a host Party India (Host) Private and/or public entity(ies) project participants (as applicable) Eastern Ramganga Indicate if the Party involved wishes to be considered as project participant (Yes/No)

Valley No

Hydel Projects Co. Pvt. Ltd

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A.5. Public funding of project activity No public funding or Official Development Assistance (ODA) will be used for the project activity. A.6. Debundling for project activity Paragraph 2 of Appendix C2 of the Simplified Modalities and Procedures for Small Scale CDM project activities states that: 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 The project activity shall install a total capacity 5 MW through two turbo-generators of 2.5 MW each at the Jakula nadi tributary of the Eastern Ramganga river. The project participant confirms that there is no registered CDM project activity or an application to register another small-scale CDM project activity of the same project category and technology, whose project boundary is within 1 km or the project boundary of the proposed small-scale activity. Therefore, it may be concluded that the project activity is not a de-bundled component part of any large scale project activity.

http://cdm.unfccc.int/EB/Meetings/007/eb7ra07.pdf

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SECTION B. Application of selected approved baseline and monitoring methodology B.1. Reference of methodology Title: Type: I- Renewable Energy Projects Category: I-D- Grid connected renewable electricity generation Reference: Appendix B of the simplified modalities and procedures for small-scale CDM project activities Indicative Simplified Baseline and Monitoring Methodologies for selected small-scale CDM project activity categories, Version 17: EB 61. The CDM-SSC-PDD has also referred to the methodological tool Tool to calculate the emission factor for an electricity system (Version 02.2.1), EB-63, Annex-19 Tool for demonstration and assessment of additionality (Version 06), EB 65, Annex 21 Tool to calculate project or leakage emissions from fossil fuel combustion (Version 02), EB 41, Annex -11 B.2. Project activity eligibility The applicability of the project activity has been described in the table below: Table B.1: Methodology Applicability for the Project Sl No. 1

Category (Applicability)

Justification

This methodology comprises renewable energy The project activity involves renewable generation units, such as photovoltaic, hydro, electricity generation by utilizing the hydro tidal/wave, wind, geothermal and renewable energy potential of the Jakula nadi. The biomass: electricity generated under the project

(a) Supplying electricity to a national or a activity will be supplied to the NEWNE grid regional grid;or of India. Hence, the project activity meets the (b)Supplying electricity to an identified consumer applicability criterion and its clause (a). facility via national/regional grid through a contractual arrangement such as wheeling.

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Illustration of respective situations under which According to Table 2 of the methodology each of the methodology (i.e. AMS-I.D, AMS-I.F AMS-I.D/Version 17, the project activity and AMS-I.A) applies is included in Table 2. complies with criteria (1) of the table, which states that the, Project supplies electricity to a national/regional grid.

This methodology is applicable to project This project activity under consideration activities that (a) install a new power plant at a involves installation of a new hydro-based site where there was no renewable energy power power plant at Jakula nadi. At the site of the plant operating prior to the implementation of the project power plant there is no other project activity (Greenfield plant); (b) involve a renewable power generating station

capacity addition; (c) involve a retrofit of (an) operating prior to implementation of the existing plant(s); or (d) involve a replacement of project activity. (an) existing plant(s).

Hydro power plants with reservoirs that satisfy at The project activity under consideration is a least one of the following conditions are eligible to apply this methodology: 5 MW run of the river hydro power plant on river Jakula. Therefore this condition is not

The project activity is implemented in an applicable for this project activity 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 new unit has both renewable and non- The project activity involves generation of

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renewable components (e.g., a wind/diesel unit), electricity from only the run-of-the river the eligibility limit of 15 MW for a small-scale hydro power plant and therefore has only CDM project activity applies only to the renewable component. The installed capacity renewable component. If the new unit co-fires of the power plant being 5 MW is well fossil fuel, the capacity of the entire unit shall not within the limit of 15 MW and therefore exceed the limit of 15 MW meets the applicability criteria of the methodology. 6 Combined heat and power (co-generation) The project activity involves generation of only one form of energy electricity, by utilizing the hydro energy potential of the Jakula nadi and does not entail installation or operation of any co-generation system. Hence the project activity complies with this criterion of the methodology.

systems are not eligible under this category

This applicability criterion is not relevant for In the case of project activities that involve the the project activity under consideration, as addition of renewable energy generation units at this will be newly installed hydro power an existing renewable power generation facility, generation project and not a capacity the added capacity of the units added by the enhancement project should be lower than 15 MW and should renewable be physically distinct from the existing units. project power at an existing facility.

generation

Therefore this condition is not applicable for this project activity.

In the case of retrofit or replacement, to qualify The project activity is a Greenfield hydro as a small-scale project, the total output of the power generation project and does not retrofitted or replacement unit shall not exceed involve retrofits and/or modifications of an the limit of 15 MW existing facility. Therefore this condition is not applicable for this project activity.

The above analysis clearly demonstrates that the project activity under consideration meets the applicability criterion of the methodology AMS-I.D, Version 17.

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B.3. Project boundary >> As per the guidance of the methodology AMS I.D, Version 17, The spatial extent of the project boundary includes the project power plant and all power plants connected physically to the electricity system that the CDM project power plant is connected to.

As per the methodology the project boundary encompasses the physical, geographical site of the renewable generation source. Thus here the project boundary consists of the tunnel, diversion weir, intake, penstock, powerhouse, interconnection point with the grid, tail race channel. For the purpose of determining the emission reduction, the project boundary will also include the NEWNE grid where an equivalent amount of electricity generation by mainly thermal power plants would be reduced with the implementation of the project activity. The entire NEWNE grid will be a part of the project boundary for the purpose of calculation of the grid emission factor.

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Table B.2: Gases excluded/included in the baseline scenario and the project activity

Source

Gas

Included ? Yes No No No No No No No No No

Justification / Explanation

CO2 Baseline

emissions

from

electricity CO2

Main Emission Source Minor Emission Source Excluded for simplification

generation in fossil fuel fired power CH4 plants that are displaced due to the project activity N2O

For geothermal power plants, fugitive CO2 emissions of CH4 and CO2 from non- CH4 condensable gases contained in N2O

Not applicable as the project is a Hydro Project and not a geothermal power project Not applicable as the project is a Hydro Project and not a solar thermal power project or a

geothermal steam

CO2 emissions from combustion of CO2 fossil fuels for electricity generation in CH4 solar thermal power plants and N2O CO2

geothermal power plants

geothermal power project. Minor Emission Source This is a run of the river hydro power project activity,

For hydro power plants, emissions of CH4 from the reservoir Project activity

therefore the construction of CH4 No reservoir Hence methane considered. N2O No Minor Emission Source is the not required. of not

emission is

(CH4)

B.4. Establishment and description of baseline scenario >> The project activity uses the approach described in the methodology, AMS-I.D Grid connected renewable electricity generation (EB 61, Version 17). According to the paragraph 10 of the methodology:

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The baseline scenario is that the electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources into the grid.

Since the project activity involves installation of a green field grid-connected renewable plant/unit, the baseline scenario is the electricity connected to the NEWNE grid that otherwise would have been generated by the operation of grid-connected power plants and by the addition of new generation sources. The project activity therefore, displaces electricity generated in NEWNE Grid and therefore the relevant Grid has been chosen as the baseline.

According to the paragraph 11 of the methodology AMS-I.D/Version 17, The baseline emissions are the product of electrical energy baseline EGBL, y expressed in MWh of electricity produced by the renewable generating unit multiplied by the grid emission factor.

BE y = EGBL , y * EFCO2 , grid , y

Where:
BE y EGBL, y

Baseline Emissions in year y (t CO2) Quantity of net electricity supplied to the grid as a result of the implementation of the CDM project activity in year y (MWh)

EFCO 2 , grid , y

CO2 emission factor of the grid in year y (t CO2/MWh)

As per Para 12 of the baseline methodology, AMS-I.D (Version 17), 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 t CO2/MWh) of the current generation mix. The data of the year in which project generation occurs must be used.

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Calculations shall be based on data from an official source (where available) and made publicly available. As the project activity displaces electricity generated in NEWNE Grid, the project uses the approach (a) combined margin emission factor for the NEWNE grid, following seven steps of Tool to calculate the emission factor for an electricity system (Version 02.2.1, EB 63) and using publicly available data of Central Electrical Authority (the most recent version CO2 Baseline Database Version 7.03 available at the time of submission of the CDM PDD to the DOE for Global Stakeholders Consultation). The following information has been used for the calculation of baseline emissions:

Table B3: Combined Margin Emission Factor Calculation

Operating Margin CO2 emission factor (EFgrid,OM,y) Parameter Simple Year Unit Value 1.01 Source/Reference CO2 Baseline Database for Indian Power Sector version 0.98 07.0 published by the Central Electricity Authority, Ministry 0.97 of Power, Government of India4

Operating 2008- tCO2/MWh 09

Margin (NEWNE grid) Simple

Operating 2009- tCO2/MWh 10

Margin (NEWNE grid) Simple

Operating 2010- tCO2/MWh 11 weighted tCO2/MWh

Margin (NEWNE grid) 3 year generation

0.984984

Calculated

average of Operating Margin CO2 emission factor Note: 3 year generation weighted average of Operating margin CO2 emission factor has been calculated following the guidelines provided in Tool to Calculate the emission Factor for an Electricity System (Version 02.2.1)

Build Margin CO2 emission factor (EFgrid,BM,y) Parameter Year Unit Value 0.8587 Source/Reference CO2 Baseline Database for Indian Power Sector version 07.0 published by the Central Electricity Authority, Ministry

Build Margin (NEWNE 2010- tCO2/MWh grid) 11

33 4

http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

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of Power, Government of India

EFy = wOM * EFgrid,OM,y + wBM * EFgrid,BM,y

Combined margin CO2 emission factor (EFgrid,CM,y or EFy) 3 year generation weighted tCO2/MWh 0.984984 Refer the above table

average of Operating Margin CO2 emission factor (NEWNE grid), EFgrid,OM,y Build Margin (NEWNE grid), tCO2/MWh
EFgrid,BM,y

0.8587

Refer the above table

Weighting of operating margin emissions factor, wOM

50

Tool to Calculate the emission Factor for an Electricity System (Version 02.2.1)

Weighting of build margin emissions factor, wBM

50

Tool to Calculate the emission Factor for an Electricity System (Version 02.2.1)

Combined margin CO2 emission tCO2/MWh factor (EFgrid,CM,y or EFy)

0.9219

Calculated

Note: Combined margin CO2 emission factor has been calculated following the guidelines provided in Tool to Calculate the emission Factor for an Electricity System (Version 02.2.1)

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B.5. Demonstration of additionality >> The following analysis demonstrates that the project activity is additional and that the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in absence of the project activity. The analysis follows the guidance of the following UNFCCC tools and documents.

1. Attachment A to Appendix B of the simplified M&P for small scale CDM project activities 2. Non-binding best practice examples to demonstrate additionality for SSC project activities, EB 35, Annex 34. 3. Guidelines on the assessment of investment analysis, EB 62, Annex 05.

Investment Barrier: The project proponent has demonstrated through investment analysis that without CDM revenue the project activity is not a financially attractive proposition. For the purpose of carrying out an investment analysis, the financial indicator that has been used is the Internal Rate of Return of the project activity i.e. the Project IRR. As the project is funded by both debt and equity, project IRR is considered an appropriate financial indicator for demonstrating the additionality of the project.

As per Para 12 of the Guidance on the Assessment of Investment Analysis, Version 05, EB 62, Annex 5, Local commercial lending rate or weighted average costs of capital (WACC) are appropriate benchmarks for a project IRR. As per Para 13 of the same guideline, In the cases of projects which could be developed by an entity other than the project participant the benchmark should be based on parameters that are standard in the market. Thus following the above guidelines, Prime Lending Rate (PLR) of major nationalized banks of India is considered as an appropriate benchmark for the investment analysis. The PLR of major nationalized banks of India, published by the Reserve Bank of India, during October,2009, the period when EDCL had submitted their financial proposal to acquire the projects from Uttarakhand Infrastructure Company Private Limited, was 12.00% 5. This has been considered as the benchmark for investment analysis of the project.

The IRR for the project without considering CDM benefits is around 9% which is below the benchmark of 12.00%, as defined in the above paragraph.

http://www.rbi.org.in/scripts/WSSView.aspx?Id=14160

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The following primary information, available at the time of decision making for the project, has been used for the IRR calculation: Parameters Capacity Capital Cost IDC and Finace Charges Capital Cost with IDC Interest on Term Loan Loan Repayment Period Equity Portion Debt Portion ENERGY GENERATION Plant Load Factor Gross Generation of Energy After Outage @ 2.5% Auxiliary Consumption @ 1% Loss due to Transmission and Transformation @ 0.5% Net Energy Sent out to Grid Free Power supplied to the State (Year 1-15) Net Saleable Energy (Year 1-15) Free Power supplied to the State (beyond year 15) Net Saleable Energy (beyond year 15) Energy Selling Rate O & M Charges (inclusive of Insurance) O & M Escalation SLM Depreciation rate for Buildings as per companies act, Schedule XIV Unit MW lacs lacs lacs % Years % % % MU MU MU MU MU MU MU MU MU Rs/ kWh lacs/yr % % Value 5 3742.91 577.07 4319.98 12.50% 10 30% 70% 46% 20.15 19.64 0.20 0.10 19.45 0 19.45 3.40 15.95 3.40 100.00 5.72% 3.34 5.28 10 15 16.995% 33.99% 12.25%

SLM Depreciation rate for Plant & Machineries as per companies % act,Schedule XIV WDV Depreciation Rate for Building as per IT Act % WDV Depreciation Rate for Machineries as per IT Act MAT (Minimum Alt Tax) Income Tax Rate Interest on Working Capital % % % %

Sensitivity Analysis: The project is found to be sensitive to the following factors:

Plant Load Factor Project Capital cost Power Tariff

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10 % increase Project Capital Cost Power Tariff Plant Load Factor 8.02% 10.30% 10.30%

No Change 9.00% 9.00% 9.00%

10 % decrease 10.20% 7.63% 7.63%

The project IRR being financially not attractive, posed a serious obstacle to participate in the bid for undertaking implementation of the proposed hydro power project in Uttarakhand. Under such circumstances, EDCL has based its decision to participate in the bid for implementing the proposed hydro power project, depending primarily on revenue from CDM. The CDM revenue available from the project activity would partially absorb the financial impact The above is evident from the fact that benefits from CDM were seriously considered by the Board members of EDCL and approval for investment in the project activity was given based on expected benefits from CDM.

The table below shows the timeline chronology of different milestones substantiating the serious consideration of CDM and the real and continuing actions towards CDM registration in parallel to project implementation: Awareness of CDM Board / Management Approval 1. EDCL submitted their financial bid to Uttarakhand October,2009 Infrastructure Company Private Limited for the Phulibagar hydro electric project First Real Action 2 The project was awarded to EDCL by Uttarakhand November,2010 Infrastructure Company Private Limited

Since no major equipment for the project activity has been awarded, the project has a future start date. Therefore as per Guidelines on the demonstration and assessment of prior consideration of the CDM, Version 05.0, EB 62, Annex-5, prior consideration intimation is not required to be sent to UNFCCC.

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B.6. Emission reductions B.6.1. Explanation of methodological choices >> The emission reduction from undertaking the project activity is calculated below. The relevant equations for calculating project emission, baseline emission and leakage emissions are used to determine the value of the net estimated emission reduction. According to the paragraph 23 of the methodology AMS-I.D/version 17: Emission reductions are calculated as follows:

ER y = BE y PE y LE y .....................................................(1)
Where:

ER y
BE y

Emission reductions in year y (t CO2/y) Baseline Emissions in year y (t CO2/y) Project emissions in year y (t CO2/y) Leakage emissions in year y (t CO2/y)

PE y LE y

Baseline Emission calculation: According to the paragraph 11 of the methodology AMS-I.D/Version 17, The baseline emissions are the product of electrical energy baseline EGBL, y expressed in MWh of electricity produced by the renewable generating unit multiplied by the grid emission factor.

BE y = EGBL , y * EFCO2 , grid , y

Where:

..(2)

BE y EGBL, y

Baseline Emissions in year y (t CO2) Quantity of net electricity supplied to the grid as a result of the implementation of the CDM project activity in year y (MWh)

EFCO 2 , grid , y

CO2 emission factor of the grid in year y (t CO2/MWh)

The method of calculation of emission factor has been described in detail in Section B.4

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Project Emission Calculation

According to the paragraph 20 of the methodology AMS-I.D/Version 17, For most renewable energy project activities, PEy = 0. However, for the following categories of project activities, project emissions have to be considered following the procedure described in the most recent version of ACM0002.6 Emissions related to the operation of geothermal power plants (e.g. non-condensable gases, electricity/fossil fuel consumption); Emissions from water reservoirs of hydro power plants.

Since the project activity does not involve a geothermal plant or a water reservoir, PEy = 0

Leakage Emission: As per Paragraph 22 of the approved methodology AMS-I.D

If the energy generating equipment is transferred from another activity, leakage is to be considered

Since no major equipment for this project activity is transferred from another activity, therefore the leakage emission from this project activity is considered to be zero.

ACM0002 Consolidated baseline methodology for grid-connected electricity generation from renewable sources

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B.6.2. Data and parameters fixed ex ante

Data / Parameter Unit Description Source of data

EFgrid,OM,y tCO2/ MWh Simple operating Margin CO2 emission factor of the grid (NEWNE Grid) CO2 Baseline Database for Indian Power Sector version 07.0 published by the Central Electricity Authority, Ministry of Power, Government of India.The CO2 Baseline Database for Indian Power Sector is available at http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

Value(s) applied Choice of data or

0.984984 The value has been computed in accordance with Tool to Calculate the emission Factor for an Electricity System (Version 02.2.1, EB 63, Annex -

Measurement methods 19) and procedures Purpose of data Operating margin emission factor is used for the computation of combined margin emission factor as detailed in the tool above. Additional comment The value will remain fixed throughout the entire crediting period.

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Data / Parameter Unit Description Source of data

EFgrid,BM,y tCO2/ MWh Build Margin CO2 emission factor of the grid (NEWNE Grid) CO2 Baseline Database for Indian Power Sector version 07.0 published by the Central Electricity Authority, Ministry of Power, Government of India.The CO2 Baseline Database for Indian Power Sector is available at http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

Value(s) applied Choice of data or

0.8587 The value has been computed in accordance with Tool to Calculate the emission Factor for an Electricity System (Version 02.2.1, EB 63, Annex -

Measurement methods 19) and procedures Purpose of data Build Margin emission factor is used for the computation of combined margin emission factor as detailed in the tool above. Additional comment The value will remain fixed throughout the entire crediting period.

Data / Parameter Unit Description Source of data

EFgrid,CM,y tCO2/ MWh Combined Margin CO2 emission factor of the grid (NEWNE Grid) CO2 Baseline Database for Indian Power Sector version 07.0 published by the Central Electricity Authority, Ministry of Power, Government of India.The CO2 Baseline Database for Indian Power Sector is available at http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

Value(s) applied Choice of data or

0.9219 The value has been computed in accordance with Tool to Calculate the emission Factor for an Electricity System (Version 02.2.1, EB 63, Annex -

Measurement methods 19) and procedures Purpose of data Combined Margin emission factor is used for the calculation of baseline emission. Additional comment The value will remain fixed throughout the entire crediting period.

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B.6.3. Ex-ante calculation of emission reductions >> Baseline emissions:

Gross electricity generation = Capacity No of days No of hours Plant load factor

= 5X3652446%

= 20148 MWh/annum

Net electricity generation (EGy) after accounting auxiliary consumption, transformation and transmission losses and outage losses = 19448 MWh/annum

Now, Baseline Emission is computed using the equation:

BE y = EG BL , y * EFCO2 , grid , y
Now the combined margin emission factor calculated section B.4 is:

EFCO2,grid,y= 0.9219

BEy = 19448 X 0.9219 = 17929 tCO2

Project emissions: There is no project activity emissions associated with the project activity. However, the same shall be monitored in the case fossil fuel is used.

Leakage There is no leakage associated with the project activity.

Hence the baseline emission is the total emission reduction from this project activity and is equal to 17929 tonnes of CO2 per annum and 179290 over the entire crediting period of 10 years.

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B.6.4. Summary of ex-ante estimates of emission reductions Year Baseline emissions (tCO2 e) 1st April 2016- 31st March 2017 17929 0 0 0 Project emissions Leakage (tCO2 e) (tCO2 e) Emission reductions (tCO2 e) 17929 17929

1st April 2016- 31st 17929 March 2017 1st April 2017-31st 17929 March 2018 1st April 2018-31st 17929 March 2019 1st April 2019- 31st 17929 March 2020 1st April 2020-31st 17929 March 2021 1st April 2021-31st 17929 March 2022 1st April 2022-31st 17929 March 2023 1st April 2023-31st 17929 March 2024 1st April 2024- 31st 17929 March 2025 Total Total number of crediting years Annual average 179290

17929

17929

17929

17929

17929

17929

17929

17929

0 10

17929

over the crediting 17929 period

17929

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B.7. Monitoring plan B.7.1. Data and parameters to be monitored Data / Parameter Unit Description Source of data Value(s) applied Measurement and procedures MWh Net electricity supplied to the grid by the project activity in the year y On-site measurement data 19448 methods For measuring the energy delivered by the project activity, one set of main meter and check meter will be placed for measuring the net electricity from the project activity. Net electricity exported to the grid, will be monitored daily by the project proponent on the basis of the check meter readings. Monthly joint meter readings of the main meter and check meter at the interconnection point will be taken by the designated officials State Electricity Board and EDCL-Eastern Ramganga Valley Hydel Project Co. Pvt. Ltd. Monthly power export bills will be generated by EDCL against the main meter readings. Emission reductions will be claimed on the basis of the net electricity exported to grid as per the check meter readings. Net electricity exported to the NEWNE Grid will be verified against the monthly electricity bills.

Monitoring frequency QA/QC procedures

The energy consumption will be recorded daily The data will be used directly to calculate the emission reduction; hence the data shall be checked for accuracy with the electricity supply with the electricity supply invoice as received from the grid. Both the main meter and the check meter shall be calibrated annually by a Third party.

Purpose of data Additional comment

Calculation of baseline emissions The data will be archived for a period of two years beyond the crediting period.

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B.7.2. Sampling plan >> Not Applicable

B.7.3. Other elements of monitoring plan >> The proposed project activity reduces the carbon dioxide whereas an appropriate monitoring system ensures this reduction is quantified and helps maintaining the required level. The monitoring system for the CDM project activity has been developed in order to determine the baseline emissions and the project emissions (if any) over the entire credit period.

The major objectives of the Monitoring system are: To ensure proper monitoring and recording of all the parameters required for the computation of emission reductions from the project activity To identify any non conformance with the PDD and immediately resolve the same. Ensure calibration of the requisite meters as and when required and in conformance with the PDD

Recording & Reporting of Data: Registration of data (total electricity generated and auxiliary electricity) will be available online. The readings will be recoded directly in the Central Control Room on a daily basis. The Shift In-charge of the power plant will take readings of the data and will keep the complete and accurate records on a daily basis in the Plant Log Book for proper administration. The monthly reports will be prepared based on the recorded parameters.

QA/QC Procedure to be followed:

The parameters will be monitored with meters of reputed make.

The Shift In-charge will be responsible for regular maintenance and calibration of the energy meter which will ensure the accuracy and reliability of the metered parameters. Remedial actions will immediately be undertaken in case any discrepancy is identified.

The project proponent has developed a CDM Team who will be involved in monitoring, reporting and Verification of all the GHG performance related parameters.

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S/No 1

Designation Director

Responsibilities Implement the organization structure. Authorizing the CDM Manager to implement the PDD and the Monitoring plan

CDM Head

Direct the CDM team in relation to conformance with PDD and monitoring plan.

Randomly check data at any given time to ensure the consistency in the process

3 Shift-in-charge

Implement the PDD and the Monitoring Plan. Data checking to be done which has been entered by the Panel Operators

Report non-conformances with PDD, Monitoring plan and CDM managers directions.

Ensuring calibration of the monitoring equipments as and when required.

Panel Operators

Date entry in log books Data collection Preparation of Monitoring Report

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SECTION C. Duration and crediting period C.1. Duration of project activity C.1.1. Start date of project activity >> Since no major purchase orders for the project activity has been placed, the project is considered to have a future start date. Currently, preliminary studies are underway before start of civil work, and the start date for the project activity is estimated to be 31/10/2012.

C.1.2. Expected operational lifetime of project activity >> 35 Years, 00 months (This is as per the CERC Terms and conditions of Tariff Regulations, 2009) C.2. Crediting period of project activity C.2.1. Type of crediting period >> Fixed C.2.2. Start date of crediting period >> 1st April 2014 or registration of the project with UNFCC (whichever is later)

C.2.3. Length of crediting period >> 10 years 00 Months

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SECTION D. Environmental impacts D.1. Analysis of environmental impacts >> As per the notification from MOEF dated September 14, 20067, the list of project activities which require prior environmental clearance is stipulated. This does not include the proposed small project activity type as it involves power generation using renewable sources. The total capacity of the proposed hydro power project is 5 MW therefore it qualifies as a small scale project activity. Hence this project activity does not require Environmental Clearance.

http://envfor.nic.in/legis/eia/so1533.pdf

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SECTION E. Local stakeholder consultation E.1. Solicitation of comments from local stakeholders >> The promoters have invited comments/ suggestions from local stakeholders in connection to the proposed project activity. The identified stakeholders for the project activity have been the local village panchayat, the employees of the company and the major equipment supplier. The stakeholders were invited for their opinion regarding this initiative of the company via a written communication. Table-E.1: Stakeholder Consultation Protocol Phase Activity

Phase-I:

All the parties involved with the project activity at any stage of its implementation (i.e. from conceptualization to actual implementation) are considered to be a

Identification of potential stakeholder for the project activity. For the project activity under Stakeholders consideration, the following government and non-government parties and organizations are identified as the stakeholders:

Local Village Panchayat Employees of company Major Equipment Supplier

Phase-II: Information Sharing

The representatives from EDCL have explained to the identified stakeholders and shared with them the salient features of the project activity and its probable socioeconomic and environmental impacts on the locality (Information has been shared with the stakeholders by writing to them). They are encouraged to give their feedbacks either verbally or through written communications on all the aspects of the project activity implementation and its operation.

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Table-E.1: Stakeholder Consultation Protocol Phase Activity

Phase-III: Compilation the

The comments received from all the stakeholders are compiled and their of significance is considered by the project team of EDCL. All the identified

comments stakeholders have shared their feedback by writing to the project developer in and response to the letters sent to them by EDCL asking for the stakeholders opinion about the project activity undertaken. Appropriate measures are undertaken to address the issues raised by the stakeholders. In case of any significant comment received from the stakeholders, the same is escalated to the Management Level and necessary actions are implemented by the Management of EDCL.

received measures undertaken

E.2. Summary of comments received >> Table-E.2: Summary of Stakeholder Consultation Sl No Name of Mode of Communication Feedback Status The proponent The representatives of the Local Village village panchayat have been communicated project implementation. about the received The village panchayat has positive appreciated the endeavour of feedback the project proponent to the panchayat regarding project the activity from village project has a

Stakeholders

Panchayat

activity

invest in clean energy.

implementation.

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Table-E.2: Summary of Stakeholder Consultation Sl No Name of Mode of Communication Feedback Status The Management The employees of EDCL 2. Employees EDCL of have been communicated The employees have of EDCL has a consent the

Stakeholders

appraised the Managements received decision to implement the written project activity and assured from their support for the same. Employee representatives. The proponent received positive

about the project activity implementation.

project has a

Brief details on the project Major 3. Equipment Supplier activity implementation and its associated impacts are verbally explained to the equipment supplier of the project activity.

They have appreciated the initiative provided throughout successful. of EDCL and

feedback their equipment supplier.

from main

their to

support make it

They

have appreciated the effort of the Project proponent to

invest in clean energy.

E.3. Report on consideration of comments received >> No negative comments were received from the stakeholders. However, all the comments received from the global stakeholder consultation shall be addressed.

SECTION F. Approval and authorization >> The letter of approval for the project activity from the Host Party, i.e. India, is not available at the time of submission of the PDD to the validating DOE.

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Appendix 1: Contact information of project participants Organization Street/P.O. Box Building City State/Region Postcode Country Telephone Fax E-mail Website Contact person Title Salutation Last name Middle name First name Department Mobile Direct fax Direct tel. Personal e-mail lksadani@gmail.com Eastern Ramganga Valley Hydel Projects Co. Pvt. Ltd E -593, Great Kailash II EDCL Office New Delhi Uttarpradesh 110048 India + 91 33 3053 4983 +91 33 2290 3298 edcl.cal@edclgroup.com http://www.edclgroup.com/ Mr. L.K. Sadani Technical Advisor Mr. Sadani Kumar Lalit Technical +91-9831027058

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Appendix 2: Affirmation regarding public funding There is no public funding available for this project activity

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Appendix 3: Applicability of selected methodology This has been explained in detail in Section B.2

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Appendix 4: Further background information on ex ante calculation of emission reductions

Parameters Installed Capacity Plant Load Factor Annual Operating Hours Gross Generation Outage Loss @ 2.5% Transformation Loss @ .5% Auxilliary Loss @ .5% Net Generation Free Power to the State Net Saleable Power Baseline Emission Factor @ CEA Database Ver 06 Baseline Emission

Units MW % Hrs MWh MWh MWh MWh MWh % MWh tCO2/MWh tCO2

Symbol PLF OPHrs EGGEN EGAUX EGTrans EGOutage EGNET EGy EF BEy

Value 5 46.0% 8760 20148 504 98 98 19448 12.0% 17115 0.922 17929

CDM Contribution
CER Price Exchange rate

INR Million
EURO/CER INR/EURO

10.76
10 60

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Appendix 5: Further background information on monitoring plan This section has been described in Section B.2

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Appendix 6: Summary of post registration changes

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History of the document Version 04.1 04.0 Date 11 April 2012 EB 66 13 March 2012 EB 28, Annex 34 15 December 2006 EB 20, Annex 14 08 July 2005 Nature of revision Editorial revision to change history box by adding EB meeting and annex numbers in the Date column. Revision required to ensure consistency with the Guidelines for completing the project design document form for small-scale CDM project activities (EB 66, Annex 9). The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 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>. Initial adoption.

03

02

01

EB 07, Annex 05 21 January 2003 Decision Class: Regulatory Document Type: Form Business Function: Registration