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UNFCCC/CCNUCC

CDM – Executive Board Page 1

PROJECT DESIGN DOCUMENT FORM


FOR CDM PROJECT ACTIVITIES (F-CDM-PDD)
Version 04.1

PROJECT DESIGN DOCUMENT (PDD)

Liangzhou District 50MWp Grid-connected


Title of the project activity
Solar PV Power Project
Version number of the PDD 2.2
Completion date of the PDD 04/09/2013
Project participant(s) Sinohydro Wuwei Solar Power Co., Ltd.
Host Party(ies) P. R. China
Sectoral Scope 1: Energy industries (renewable
- / non-renewable sources)
Methodology: ACM0002 “Consolidated
Sectoral scope and selected methodology(ies)
baseline methodology for grid-connected
electricity generation from renewable
sources”(version 13.0.0)
Estimated amount of annual average GHG
63,831 tCO2e
emission reductions
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SECTION A. Description of project activity


A.1. Purpose and general description of project activity
>>
Liangzhou District 50MWp Grid-connected Solar PV Power Project (hereinafter referred to as the
proposed project) is developed by Sinohydro Wuwei Solar Power Co., Ltd.. It is located in Liangzhou
District, Wuwei City, Gansu Province, P. R. China. It involves the installation of 47 sub PV arraies,
providing a total capacity of 50 MWp1. The annual output of the proposed project is estimated to be
72,6682 MWh. The proposed project will help reduce greenhouse gas (GHG) emissions generated from
the high-growth, fossil fuel-dominated power generation in the Northwest China Power Grid, (hereinafter
referred to as NWPG for short). When the proposed project is operated, the electricity generated by the
proposed project will displace part of the electricity from the NWPG, and thus GHG (CO2) generated by
fossil fuel-fired power plants could be reduced. The estimated annual GHG emission reductions are
63,831 3 tCO2e. The total emission reductions of the project will be 446,817 tCO2e during the first
crediting period (01/01/2014-31/12/2020).
The purpose of the proposed project is to generate electricity and supply it to the NWPG. For the
proposed project:
a) The scenario existing prior to the start of the implementation of the project activity is that
electricity delivered to the NWPG 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.
b) The baseline scenario is the same as the scenario existing prior to the start of implementation of
the project activity.
The proposed project will not only supply renewable energy to the grid, but also contribute to sustainable
development of the local community and the host country by means of:
1) The operation of the proposed project will increase local revenues and promote local economy;
2) The proposed project will not only reduce GHG emissions but also mitigate local environment
pollution caused by pollutant emission from fossil fuel-fired power plants;
3) The proposed project will create permanent and temporary employment for the local residents;
4) The operation of the proposed project will regulate local energy source composition by increasing
renewable energy.

A.2. Location of project activity


A.2.1. Host Party(ies)
>>
P. R. China

A.2.2. Region/State/Province etc.


>>
Gansu Province

1
Actually, according to the signed contracts, the proposed project will install 99,360 pieces of solar modules with
unit capacity of 245W and 112,320 pieces of solar modules with unit capacity of 240W, the installed capacity is a
little more than designed capacity, which is common practice for the solar PV power projects in China, even with
the actually capacity for the investment analysis, the project is still additional.
2
Average annual output during the operation period considering the attenuation coefficient of the equipment..
3
The actual calculated value is 63,831.57, 63,831 is taken for conservative.
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A.2.3. City/Town/Community etc.


>>
Liangzhou District, Wuwei City

A.2.4. Physical/Geographical location


>>
The proposed project is located in Liangzhou District, Wuwei City, Gansu Province, P. R. China. The
central geographical coordinates of the proposed project is 102.3350°E, 38.1061°N. Figure 1 illustrates
the location.

Gansu Province
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Project Location

Figure 1 Location of the proposed project


A.3. Technologies and/or measures
>>
The proposed project generates electricity by utilizing the renewable solar energy, the electricity
generated by the proposed project will displace part of the electricity from the NWPG. The NWPG is
dominated by fossil fuel fired power generation4.
The scenario existing prior to the implement of the project activity:
Electricity delivered to the grid (NWPG) 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.
Project scenario:
The project scenario is the implementation of the proposed project, i.e., the installation and operation of
47 sub PV arraies, providing a total capacity of 50 MWp, which will supply an average annual generation
of 72,668 MWh to the NWPG and achieve greenhouse gas emission reduction 63,831 tCO2e by replacing
the same amount of electricity generation by fossil-fuel fired power plants connected to the NWPG.
Baseline scenario:
The baseline scenario is the same as the scenario existing prior to the start of implementation of the
project activity.
Annual equivalent full load hours of the project activity is estimated to be 1,453.4 hours, which is sourced
from the Feasibility Study Report (FSR) issued by a Design Institute with national qualification
certification. By calculation, the plant load factor (PLF) of the proposed project is 0.166 and the annual
electricity generation is 72,668 MWh. The PLF is determined in the FSR by one qualified third party
contracted by the project participant, it complies with Annex11 of EB 48th meeting, the “guidelines for
the reporting and validation of plant load factors”
The main technical parameters of the proposed project are shown in table 1.
Table 1 Main technical parameters of the proposed project

4
<China Electric Power Yearbook> (2009~2011)
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Parameters Value
Model YL240P-29b JAP6-60-245/3BB
Maximum Power (Wp) 240 245
Open Circuit Voltage (V) 37.2 37.45
Solar
Operating Voltage (V) 29.5 29.63
Modules
Short Circuit Current (A) 8.14 8.78
Life (Year) ≥25 ≥25
Manufacturer Yingli Solar JA Solar
Total Amount 112,320 99,360

Parameters Value
Rated Power (kW) 500 500
Max input current (A) 1250 1200
Inverter
Max Efficiency (%) 98.669 98.7
Manufactures Shenzhen Yonglian Yangguang Dianyuan
Amount 26 72
Date source: The Technical Agreements of the proposed project
The electricity output will be transmitted through the 35kV/110kV transformer at the project site, then by
110kV transmission line to the grid. Two bi-directional electricity meters (main meter M1 and back-up
meter M2) will be installed at the higher side of 35kV/110kV transformer. Electricity exported to and
imported through the main line from the NWPG will be measured by the meter M1/M2. The accuracy of
the two meters will be no lower than 0.5S. At the same time, for the safe and smooth operation of the
propsoed project, a spare line will be connected to NWPG to import the electricity in emergency situation,
M3 with accuracy no less than 1.0 will be installed at the spare line to measure the electricity imported
through the spare line.
Only trained staffs are involved in the operation of the monitoring system. The technology employed by
the proposed project is environmentally safe. The simplified flow diagram is shown in Figure 2.
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The proposed project

solar module
Inverter
array
solar module
Inverter Transformer
array
M1

M2
NWPG

solar module
Inverter M3 spare line
array
solar module
Inverter
array

M Meter instruments Transformer spare line

Figure 2 Simplified flow diagram of the proposed project


There is no technology transferred from developed countries involved in this project activity.

A.4. Parties and project participants

Party involved Private and/or public entity(ies) Indicate if the Party involved
(host) indicates a host project participants wishes to be considered as
Party (as applicable) project participant (Yes/No)

Sinohydro Wuwei Solar Power Co.,


P. R. China (host) Yes
Ltd.

A.5. Public funding of project activity


>>
No public funds from Annex I countries are involved in the proposed project..

SECTION B. Application of selected approved baseline and monitoring methodology


B.1. Reference of methodology
>>
The proposed project applies the approved consolidated baseline and monitoring methodology ACM0002
“Consolidated baseline methodology for grid-connected electricity generation from renewable sources”
(version 13.0.0).
The methodology also refers to the latest approved versions of the following tools:
 Tool to calculate the emission factor for an electricity system (version 03.0.0);
 Tool for the demonstration and assessment of additionality (version 07.0.0);
The methodolgy and tools can be found at:
http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html

B.2. Applicability of methodology


>>
The proposed project meets all the applicability conditions stated in the methodology with relevance to
Solar PV power project, as follows:
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 This methodology is applicable to grid-connected renewable power generation project activities


that: (a) install a new power plant at a site where no renewable power plant was operated prior
to the implementation of the project activity (greenfield plant); (b) involve a capacity addition;
(c) involve a retrofit of (an) existing plant(s); or (d) involve a replacement of (an) existing
plant(s).
The proposed project is the installation of a new grid-connected renewable power plant at a site where no
renewable power plant was operated prior to the implementation of the project activity;

 The project activity is the installation, capacity addition, retrofit or replacement of a


power plant/unit of one of the following types: hydro power plant/unit (either with a run-of-
river reservoir or an accumulation reservoir), wind power plant/unit, geothermal power
plant/unit, solar power plant/unit, wave power plant/unit or tidal power plant/unit;
The proposed project is the installation of a Solar PV power plant, which will be connected to the NWPG
 The methodology is not applicable to the following:
 Project activities that involve switching from fossil fuels to renewable energy sources at
the site of the project activity, since in this case the baseline may be the continued use of
fossil fuels at the site;
 Biomass fired power plants;
 A hydro power plant that results in the creation of a new single reservoir or in the increase
in an existing single reservoir where the power density of the power plant is less than
4 W/m2.
The proposed project does not involve switching from fossil fuels to renewable energy sources at the site
of the project activity, and is neither a biomass fired power plant nor a hydro power plant.Therefore,
methodology ACM0002 “Consolidated baseline methodology for grid-connected electricity generation
from renewable sources” (version 13.0.0) is applicable to the proposed project activity.
In addition, the proposed project meets the applicability conditions included in the “Tool to calculate the
emission factor for an electricity system” (version 03.0.0). The proposed project will supply electricity to
the NWPG, so it can use this tool to estimate the OM, BM and CM for calculating baseline emissions.

B.3. Project boundary


According to the methodology ACM0002 (version 13.0.0), the spatial extent of the proposed project
boundary includes the proposed project power plant and all power plants connected physically to the
electricity system that the CDM project power plant is connected to. The proposed project is to be
connected to the NWPG, which is composed by Shaanxi Province, Gansu Province, Qinghai Province,
Ningxia Hui Autonomous Region and Xinjiang Uygur Autonomous Region.
The project boundary can be illustrated by a schematic diagram, as shown in Figure 3.
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Solar energy

CO2 Emissions
Solar module
array

110kV
Substation All fossil-
Transformers fired
power
Inverters M NWPG plant
connected
Meters to the
NWPG

Figure 3 Project boundary of the proposed project


For the purpose of calculating project emissions and baseline emissions, the emission sources and gases
which are included in the project boundary are listed in Table 2.
Table 2 Emission sources included in the project boundary

Source GHGs Included? Justification/Explanation


Project scenario Baseline scenario

Main emission source and the


Emissions from electricity CO2 Yes only gas identified in the
generation in fossil fuel fired baseline methodology
power plants in the NWPG that
are displaced due to the proposed CH4 No Minor emission source
project activity
N2O No Minor emission source

CO2 No
According to ACM0002
Emissions caused by the CH4 No (Version 13.0.0), project
proposed project activity emission is considered as zero
for a Solar PV power project.
N2O No

B.4. Establishment and description of baseline scenario


>>
The proposed project activity is the installation of a new grid-connected Solar PV power plant, which will
be connected to the NWPG. According to ACM0002 (version 13.0.0), the baseline scenario is as follows:
Electricity delivered to the grid (NWPG) 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, as reflected in the combined margin (CM) calculations described in the “Tool to calculate
the emission factor for an electricity system” (version 03.0.0).
According to ACM0002, baseline emissions are equal to the power generated by the project that is
delivered to the NWPG multiplied by the baseline emission factor. The baseline emission factor
( EFgrid , CM , y ) is calculated as a combined margin (CM), which consists of operating margin (OM)
emission factor and build margin (BM) emission factor. The key parameters used for emission reductions
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calculation are sourced from China DNA’s “2012 Baseline Emission Factors for Regional Power Grids in
China”5.
For detailed information, please see Annex 4.

B.5. Demonstration of additionality


>>
Prior consideration of CDM before the construction of the proposed project
On the base of additionality demonstration, an overview of the key events in the development of the
proposed project is listed in Table 3. It can be seen that CDM revenue has been seriously considered
during the early planning stages of the proposed project.
At the early stage of the proposed project, the project owner realized that the financial returns of the
project were too low to practically attract investment. With the financial analysis presented in the FSR,
the project owner decided to develop the proposed project as a CDM project, as the financial condition of
the proposed project can be improved. The Feasibility Study Report of the project considering the CDM
revenue was finally completed in September 2012 by a third party.
Following the “guideline on the demonstration and assessment of prior consideration of the CDM”
(version 04) made in the EB 62 meeting, the project owner submitted the Prior Consideration of the CDM
Form about the proposed project to EB on 08/04/2013 and the Notification Form about the proposed
project to the Chinese DNA on 16/04/2013 respectively. And the proposed project was approved as a
CDM project on 05/08/2013.
The timeline of the project activity is shown as the following Table 3:

Table 3 Overview of key events in the development of the project

Date Events
08/2012 Completed the Environmental Impact Assessment Report.
03/09/2012 Received the Environmental Impact Assessment Report Approval.
09/2012 Completed the Feasibility Study Report (FSR).
29/09/2012 Received the Feasibility Study Report Approval.
The project developer made the decision to develop the proposed project as a
06/11/2012
CDM project.
10/11/2012 Project construction contract was signed (starting date of the project)
Submitted the Prior Consideration of the CDM Form about the proposed project
08/04/2013
to EB.
Submitted the Notification Form about the proposed project to the Chinese
16/04/2013
DNA.
04/2013 Collected the stakeholders’ responses on the project.
The proposed project was reviewed by China DNA 6 during the 114 Review
10/07/2013
Meeting.
05/08/2013 The proposed project was approved as a CDM project by China DNA.
Demonstration and assessment of additionality

5
http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File2975.pdf
6
http://www.ccchina.gov.cn/archiver/cdmcn/UpFile/Files/Default/20130621112710528237.pdf
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The additionality will be demonstrated by the “Tool for the demonstration and assessment of
additionality” (version 07.0.0). The tool includes the following steps:
Step 1: Identification of alternatives to the project activity consistent with current laws and
regulations
According to the applied methodology ACM0002 (version 13.0.0), the baseline scenario of a new grid-
connected renewable power plant is the flowing:
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, as reflected in
the combined margin (CM) calculations described in the “Tool to calculate the emission factor for an
electricity system”.
Therefore, there is no need to identify credible alternatives to the proposed project activity.
Outcome of Step 1: The electricity delivered to the grid by the proposed project activity would have
otherwise been generated by the operation of grid-connected power plants and by the addition of new
generation sources.
Step 2: Investment analysis
Sub-step 2a: Determine appropriate analysis method
According to “Tool for the demonstration and assessment of additionality” (version 07.0.0), three options
can be applied for the investment analysis:
 Option I: the simple cost analysis;
 Option II: the investment comparison analysis;
 Option III: the benchmark analysis.
Option I is not applicable for the proposed project because the project activity will generate economic
benefits from electricity sale other than CERs income.
Option II is also not applicable for the proposed project because the baseline scenario, providing the same
capacity or electricity output by the NWPG, is not a new investment project.
To conclude, Option III will be used to identify whether the financial indicators (such as IRR) of the
proposed project is better than relevant benchmark value.
Sub-step 2b: Option III. Apply benchmark analysis.
According to the “Interim Rules on Economic Assessment of Electrical Engineering Retrofit Projects”7
issued by State Power Corporation of China, the benchmark project IRR (after tax) of power industry is
8%. This benchmark is widely used for the power investment in China.
Sub-step 2c: Calculation and comparison of financial indicators.
The basic parameters for calculating financial indicators are shown in Table 4:

Table 4 Main parameters for calculating financial indicators


Item Unit Amount Source

7
Issued by the Operation Department of Power Generation and Transmission, State Power Corporation on
10/09/2002
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Installed capacity MWp 50 FSR


Annual electricity output MWh 72,668 FSR
Static total investment Million RMB 610.3695 FSR
Fluid capital Million RMB 1.5005 FSR
Average annual O&M cost Million RMB 13.7929 FSR
Electricity tariff (Including VAT) RMB/kWh 1.00 FSR
Value added tax rate 17% FSR
Income tax rate 25% FSR
Urban maintenance and construction tax rate 5% FSR
Surtax for education rate 5% FSR
Depreciation rate 6.33% FSR
Depreciable life Year 15 FSR
Rate of residue value 5% FSR
Project life time Year 25 FSR
Staff Person 30 FSR
Million
Salary 0.05 FSR
RMB/Person
Rate of employee welfare, labour and protection
fund, housing fund, education fund, labour union 41% FSR
fund
Insurance rate 0.25% FSR
Rate for maintenance 1.5% FSR
Material fees RMB/kW 15 FSR
RMB/kW
Miscellaneous costs 20 FSR
Long-term loan interest rate 6.55% FSR
Short-term loan interest rate 6.00% FSR
The financial analysis in PDD has adopted the data from officially approved FSR.
The financial indicator (project IRR) without income from selling CERs is listed in Table 5. Without
income from selling CERs, the project IRR of the proposed project is 6.29%, lower than the benchmark
IRR 8%, and the proposed project is not economically attractive.

Table 5 Comparison of financial indicators of the proposed project with benchmark

Item Without income from CERs Benchmark


The Project IRR 6.29% 8%
Sub-step 2d: Sensitivity analysis
The objective of this sub-step is to show that the conclusion regarding the financial attractiveness is
robust under reasonable variations of the critical assumptions.
Four factors are considered in the following sensitivity analysis:
1) Static total investment;
2) Annual operation and maintenance (O&M) cost;
3) Electricity tariff;
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4) Annual electricity output.


In China, the range of sensitivity analysis is normally chosen to be -10% to 10% in the project investment
analysis, which has been defined by Project decision analysis and evaluation8. Therefore, the range of the
proposed project sensitivity analysis is chosen to be -10% to 10%.
Assuming the above four factors vary in the range of -10% to 10%, the project IRR of the proposed
project (without CERs) varies to different extent, as shown in Table 6 and Figure 4.
Table 6 Sensitivity analysis of the project
-10% -5% 0% 5% 10%
Static total investment 7.73% 6.99% 6.29% 5.63% 5.01%
Annual O&M cost 6.58% 6.43% 6.29% 6.14% 5.98%
Electricity tariff 4.90% 5.60% 6.29% 6.94% 7.58%
Annual electricity output 4.90% 5.60% 6.29% 6.94% 7.58%

Figure 4 Sensitivity analysis of the project


Table 6 and Figure 4 show that the IRR of the proposed project keeps lower than the benchmark when the
four parameters fluctuate within the range from -10% to 10%.
Alternatively, when the project IRR is equal to the benchmark, the variations of critical parameters are
shown in the Table 7 below:
Table 7 Parameter variation when project IRR is equal to the benchmark

Static total Annual O&M Electricity Annual electricity


Parameter
investment cost Tariff output

8
Project decision analysis and evaluation, 2008 version, China Plan Press, p393.
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Project IRR=
-11.75% -60.29% 13.39% 13.39%
Benchmark
 Only when the static total investment has a drop of 11.75%, can the project IRR reach the
benchmark rate. However, for Solar PV project, the cost of equipments and engineering
construction comprise the main part of the static total investment, as the prices of raw materials
have been increasing in Gansu Province 9 , which results in the price of equipments and
construction rising. Besides, the designed total investment of the proposed project is 610.3695
million, till now,the actual happened cost for the equipment and construction of the project has
reached 559.0987 million, which accounts for 91.60% of designed total investment, considering
the project is still under construction, more costs will happen, so a significant reduction of
investment as 11.75% is unlikely.
 Only when the annual O&M cost has a drop of 60.29%, can the project IRR reach the
benchmark rate. The annual O&M costs mainly include the raw material cost, maintenance cost
and wages for the workers, insurance and miscellaneous cost etc. In recent years, the price of
material and salaries of the employees are increasing gradually in China10, which leads to the
rise of annual O&M cost. Thus it’s impossible for the annual O&M cost to decrease 60.29% to
reach benchmark IRR.
 Only when the estimated electricity tariff increases by 13.39%, can the project IRR reach the
benchmark. However there is extremely unlikely for the tariff of the proposed project to have
an increase of 13.39%. Based on the Notification on the tariff of solar PV power generation
projects, Fagaijiage [2011]1594 which was released by NDRC on 24 July, 2011, China has
regulated its feed-in tariff for solar PV power: in Gansu Province, the tariff of the Solar PV
power projects which approved before 01/07/2011 and start to operate before 31/12/2011 will
be 1.15 RMB/kWh (Including VAT); and the tariff of the Solar PV power projects which
approved before 01/07/2011 and start to operate after 31/12/2011, or approved after 01/07/2011
will be 1.00 RMB/kWh (Including VAT)11. The proposed project was approved on 29/09/2012,
so the electricity tariff of the proposed project is 1.00 RMB/kWh (Including VAT). Therefore,
the electricity tariff will not be changed to make the project IRR equal to or higher than the
benchmark.
 Only when the annual electricity output increases by 13.39%, can the project IRR reach the
benchmark rate. In the FSR, the expected annual electricity output of the proposed project is
72,668 MWh, which was calculated on the basis of the historical average sunshine hours
between 1980 and 200912. The solar radiation resource of the project site is stable over the past
thirty years. As the operational hours of the proposed project is based on long term historical
data, assuming a sustained 13.39% of increase in annual electricity output in the whole
crediting period of the proposed project is not reasonable.
In a word, it is very unlikely for the project to become commercially attractive through an variations of
the four parameters.
Step 3: Barrier analysis
The proposed project does not adopt barrier analysis.

9
http://www.gs.chinanews.com/news/2013/04-19/210716.shtml
10
http://jjckb.xinhuanet.com/opinion/2013-01/14/content_423554.htm
11
http://www.sdpc.gov.cn/zcfb/zcfbtz/2011tz/t20110801_426501.htm
12
Feasibility Study Report of the proposed project
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Step 4: Common practice analysis


The proposed project is not a first-of-its kind project, so the above additionality test is complemented
with an analysis of the extent to which the proposed project type has already diffused in the relevant
sector and region.
Following the “Guideline on Common Practice (version 02.0)”, the following stepwise approach will be
applied for the common practice analysis for the proposed project.

Step 4-1: Calculate applicable capacity or output range as +/-50% of the total design capacity or
output of the proposed project activity:
According to the guideline, the power plants with capacity of +/-50% of the proposed project will be
chosen for the common practice. As the installed capacity of the proposed project is 50MWp, the projects
with installed capacity between 25MWp and 75MWp will be chosen for the common practice analysis.
Step 4-2: identify similar projects (both CDM and non-CDM) which fulfill all of the following
conditions:
(a) The projects are located in the applicable geographical area;
(b) The projects apply the same measure as the proposed project activity;
(c) The projects use the same energy source/fuel and feedstock as the proposed project activity,
if a technology switch measure is implemented by the proposed project activity;
(d) The plants in which the projects are implemented produce goods or services with
comparable quality, properties and applications areas (e.g. clinker) as the proposed project
plant;
(e) The capacity or output of the projects is within the applicable capacity or output range
calculated in Step 4-1;
(f) The projects started commercial operation before the project design document (CDM-PDD)
is published for global stakeholder consultation or before the start date of proposed project
activity, whichever is earlier for the proposed project activity13.
For the proposed project:

(a) according to the guideline, the applicable geographical area covers the entire host country as a default,
so the entire host county (P. R. China) is selected as the geographical scope for the common practice
analysis of the proposed project;

(b) The projects apply the same measure as the proposed project activity should be identified, according
to the guideline, type (b) of Measure: Switch of technology with or without change of energy source
including energy efficiency improvement as well as use of renewable energies (example: energy
efficiency improvements, power generation based on renewable energy). The proposed project
generates electricity by utilizing the renewable energy (solar), which is belong to this type of measure,
so the projects included in type (b) of Measure are selected for the common practice analysis of the
proposed project;

(c) The proposed project generates electricity by utilizing the solar energy, so the projects use solar
energy is selected for the common practice analysis of the proposed project;

13
While identifying similar projects, project participants may also use publicly available information, for example
from government departments, industry associations, international associations on the market penetration of
different technologies, etc.
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(d) Not applicable to the proposed project;

(e) As calculated in step 4-1, the projects with installed capacity between 25MWp and 75MWp will be
chosen for the common practice analysis;

(f) The starting date of the proposed project was 10 November, 2012, so the projects identified in this step
should be the ones that put into commercial operation before 10 November, 2012.

Based on the analysis above, four categories of power projects are identified in this step and listed below:

Category 1: Solar PV power projects with the installed capacity between 25MWp and 75MWp in Gansu
Province, and put into commercial operation before 10 November, 2012, that are neither registered CDM
project activities, project activities submitted for registration, nor project activities undergoing validation;
Category 2: Solar PV power projects with the installed capacity between 25MWp and 75MWp in other
provinces of China, and put into commercial operation before 10 November, 2012, that are neither
registered CDM project activities, project activities submitted for registration, nor project activities
undergoing validation;
Category 3: Solar PV power projects with the installed capacity between 25MWp and 75MWp in Gansu
Province, and put into commercial operation before 10 November, 2012, that are registered CDM project
activities, or project activities submitted for registration, or project activities undergoing validation;
Category 4: Solar PV power projects with the installed capacity between 25MWp and 75MWp in other
provinces of China, and put into commercial operation before 10 November, 2012, that are registered
CDM project activities, or project activities submitted for registration, or project activities undergoing
validation;
For the Solar PV power projects: base on the latest statistics information from China Electric Power
Yearbooks 2010-2012 14 , Gansu Province development &reform commission website 15 , the UNFCCC
website 16, and China DNA website17, three Solar PV power projects was identified with the installed
capacity between 25MWp and 75MWp in Gansu Province, and put into commercial operation before 10
November, 2012, and listed below:

Installed CDM application


No. Project name capacity (MW) status
Gansu Dunhuang 50MWp Solar PV Power Station Registered as
1 50
Project CDM project 18
Registered as
2 Gansu Jinta Solar Power Generation Project 40
CDM project19
Gansu Jinchuan 50MW Solar Photovoltaic Power Registered as
3 50
Generation Project CDM project20
However, these projects are successfully registered as CDM project. So, the number of projects identified
for category 1 (N1) is 0 and the number of projects identified for category 3 (N3) is 3.
And assume the number of projects identified for category 2 and 4 are N2 and N4, respectively.
14
China Electric Power Yearbooks (2010-2012)
15
http://www.gspc.gov.cn/xxgk/Index.asp?page=1
16
http://cdm.unfccc.int/Projects/projsearch.html
17
http://cdm.ccchina.gov.cn/NewItemList.aspx
18
http://cdm.unfccc.int/Projects/DB/TECO1348832160.15/view
19
http://cdm.unfccc.int/Projects/DB/JCI1356429134.55/view
20
http://cdm.unfccc.int/Projects/DB/Applus1355997958.55/view
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Step 4-3: within the projects identified in Step 4-2, identify those that are neither registered CDM
project activities, project activities submitted for registration, nor project activities undergoing
validation. Note their number Nall.
From step 4-2 above, category 3 and category 4 are projects which registered CDM project activities, or
project activities submitted for registration, or project activities undergoing validation. According to the
guidline, the projects of category 3 and category 4 should be excluded from the Nall.

So Nall=N1+N2=0+N2=N2
Step 4-4: within similar projects identified in Step 3, identify those that apply technologies that are
different to the technology applied in the proposed project activity. Note their number Ndiff.
Different technologies in the context of common practice are identified in the guideline as technologies
that deliver the same output and differ by at least one of the following (as appropriate in the context of the
measure applied in the proposed clean development mechanism (CDM) project activity and applicable
geographical area):

(a) Energy source/fuel (example: energy generation by different energy sources such as wind and hydro
and different types of fuels such as biomass and natural gas);
(b) Feed stock (example: production of fuel ethanol from different feed stocks such as sugar cane and
starch, production of cement with varying percentage of alternative fuels or less carbon-intensive
fuels);
(c) Size of installation (power capacity)/energy savings:
(i) Micro (as defined in paragraph 24 of decision 2/CMP.5 and paragraph 39 of decision 3/CMP.6);
(ii) Small (as defined in paragraph 28 of decision 1/CMP.2);
(iii) Large.
(d) Investment climate on the date of the investment decision, inter alia:
(i) Access to technology;
(ii) Subsidies or other financial flows;
(iii) Promotional policies;
(iv) Legal regulations;
(e) Other features, inter alia:
(i) Nature of the investment (example: unit cost of capacity or output is considered different if the
costs differ by at least 20 %).
Identify Ndiff: the number of all plants that apply technologies different to the technology applied in the
proposed project activity included in Nall.
For Category 2: in China, the power grid of each province was specified in power supply and demand,
grid construction and development plan, annual achievement and management method. And provincial
governments are authorized to regulate power plants in each province by the NDRC, and the power plant
proposals are approved by the provincial DRC, the investment climate, tariff, promotional policies,
regulations, land policy, and energy sources etc. are usually different for power plants in the different
province. The location of the proposed project belongs to Gansu Province. According to the the definition
of different technologies of the guideline, “(d) Investment climate on the date of the investment decision”,
the power projects in other provinces of P.R.China are proved to have different investment climate and
therefore have different technologies with the proposed project, can be identified as different projects.
Therefore: Ndiff=N2
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Step 4-5: Calculate factor F=1-Ndiff /Nall representing the share of similar projects (penetration rate
of the measure/technology) using a measure/technology similar to the measure/technology used in
the proposed project activity that deliver the same output or capacity as the proposed project
activity.

Ndiff N2
F=1- =1- =1-1=0 , Nall-Ndiff=N2-N2=0
Nall N2
As per the guideline, the proposed project activity is a “common practice” within a sector in the
applicable geographical area if the factor F is greater than 0.2 and Nall-Ndiff is greater than 3.

For the proposed project, F=0< 0.2, and Nall-Ndiff=0<3, so the proposed project is not common practice.

There are no any similar project activities observed. Thus it can be concluded that the proposed project is
not a common practice, the proposed project is not a common practice.

Conclusion of the assessment and demonstration of additionality


In summary, it can conclude that the proposed project has additionality. And “the project is undertaken
without being registered as a CDM project activity” is not financially attractive to investors, thus it is not
feasible. Being registered as a CDM project, the CERs revenues can alleviate the identified barriers,
therefore the project is additional.
B.6. Emission reductions
B.6.1. Explanation of methodological choices
>>
Emission reductions by the proposed project can be calculated based on the ACM0002 (version 13.0.0)
and the methodological tool “Tool to calculate the emission factor for an electricity system” (version
03.0.0). Details are shown below:

1. Project emissions ( PEy )

According to ACM0002 (version 13.0.0), the emission of Solar PV power project activity is zero.

PEy = 0
2. Baseline emissions ( BEy )

Baseline emissions include only CO2 emissions from electricity generation in fossil fuel fired power
plants that are displaced due to the project activity. ACM0002 assumes that all project electricity
generation above baseline levels would have been generated by existing grid-connected power plants and
the addition of new grid-connected power plants. The baseline emissions are to be calculated as follows:
BEy  EGPJ , y  EFgrid , CM , y (1)
Where:
BEy = Baseline emissions in year y (tCO2/yr)

EGPJ , y = Quantity of net electricity generation that is produced and fed into the grid as a result of
the implementation of the CDM project activity in year y (MWh/yr)

EFgrid , CM , y = Combined margin CO2 emission factor for grid connected power generation in year y
calculated using the latest version of the “Tool to calculate the emission factor for an
electricity system” (Version 03.0.0) (tCO2/ MWh)
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The proposed project activity is the installation of a new grid-connected renewable power plant at a site
where no renewable power plant was operated prior to the implementation of the proposed project activity,
then:
EGPJ , y  EGfacility , y (2)
Where:
EGPJ , y = Quantity of net electricity generation that is produced and fed into the grid as a result
of the implementation of the CDM project activity in year y (MWh/yr)

EGfacility , y = Quantity of net electricity generation supplied by the project plant/unit to the grid in
year y (MWh/yr)

The methodological tool “Tool to calculate the emission factor for an electricity system” (version 03.0.0)
determines the CO2 emission factor for the displacement of electricity generated by power plants in the
NWPG, by calculating the “combined margin” emission factor (CM) of the NWPG. The CM is the result
of a weighted average of two emission factors pertaining to the NWPG: the “operating margin” (OM) and
the “build margin” (BM). The operating margin is the emission factor that refers to the group of existing
power plants whose current electricity generation would be affected by the CDM project activity. The
build margin is the emission factor that refers to the group of prospective power plants whose
construction and future operation would be affected by the proposed CDM project activity.
The following six steps are applied to calculate the emission factor for an electricity system:
 Step 1: Identify the relevant electricity systems.
 Step 2: Choose whether to include off-grid power plants in the project electricity system
(optional).
 Step 3: Select a method to determine the operating margin (OM).
 Step 4: Calculate the operating margin emission factor according to the selected method.
 Step 5: Calculate the build margin (BM) emission factor.
 Step 6: Calculate the combined margin (CM) emission factor.
Step1: Identify the relevant electricity systems
In accordance with Chinese DNA’s announcement of “2012 Baseline Emission Factors for Regional
Power Grids in China”21, the NWPG is selected as the project electricity system, which is composed by
Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region and Xinjiang
Uygur Autonomous Region.
For the purpose of determining the build margin emission factor, the spatial extent is limited to the project
electricity system, except where recent or likely future additions to transmission capacity enable
significant increases in imported electricity. In such cases, the transmission capacity may be considered a
build margin source.
For the proposed project, the spatial extent for determining the build margin emission factor is limited to
the project electricity system, i. e. the NWPG, as there are no recent or likely future additions to
transmission capacity that would enable significant increases in imported electricity. The data in Annex 4
shows that imports are relatively small and have not changed significantly in the period covered.
Therefore, the transmission capacity is not considered a build margin source.
Step 2: Choose whether to include off-grid power plants in the project electricity system (optional)

21
http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File2720.pdf
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Project participants may choose between the following two options to calculate the operating margin and
build margin emission factor:
 Option I: Only grid power plants are included in the calculation.
 Option II: Both grid power plants and off-grid power plants are included in the calculation.
Following the guideline of the DNA, and the statistical data available, Option I is chosen.
Step3: Select a method to determine the operating margin (OM)
The calculation of the operating margin emission factor ( EFgrid , OM , y ) is based on one of the following
methods, which are described under step 4:
a) Simple OM, or
b) Simple adjusted OM, or
c) Dispatch data analysis OM, or
d) Average OM
The simple OM method (option a) can only be used if low-cost/must-run resources22 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. The low-cost/must-run resources only constitute 24.71%,
22.43%, 21.82%, 24.40% and 24.01% 23 of total generation of NWPG from the year 2007 to 2011,
respectively, which are far less than 50% of total grid generation in the five most recent years. Therefore,
the simple OM method (option a) is used to calculate OM emission factor for the proposed project.
For the simple OM method, the emission factor can be calculated using either of the two following data
vintages:
 Ex ante option: If the ex ante option is chosen, the emission factor is determined once at the
validation stage, thus no monitoring and recalculation of the emission factor during the crediting
period is required. For grid power plants, use 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. For
off-grid power plants, use a single calendar year within the five most recent calendar years prior to
the time of submission of the CDM-PDD for validation.
 Ex post option: If the ex post option is chosen, the emission factor is determined for the year in
which the project activity displaces grid electricity, requiring the emission 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.
For the proposed project, “Ex ante option” is chosen: the emission factor is determined once at the
validation stage, thus no monitoring and recalculation of the emissions factor during the crediting period
is required. For grid power plants, use 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.
Step 4: Calculate the operating margin emission factor according to the selected method
The simple OM emission factor is calculated as the generation-weighted average 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.

22
Low-cost/must-run resources are defined as power plants with low marginal generation costs or power plants that
are dispatched independently of the daily or seasonal load of the grid. They typically include hydro, geothermal,
wind, low-cost biomass, nuclear and solar generation. If coal is obviously used as must-run, it should also be
included in this list, i.e. excluded from set of plants.
23
China Electric Power Yearbooks 2008~2012.
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The simple OM may be calculated by one of the following two options:


Option A: Based on the net electricity generation and a CO2 emission factor of each power unit; or
Option B: Based on net electricity generation, the average efficiency of each power unit and the fuel type
consumption of the project electricity system,
Option B can only be used if:
(a) The necessary data for Option A is not available; and
(b) Only nuclear and renewable power generation are considered as low-cost/must-run power sources
and the quantity of electricity supplied to the grid by these sources is known; and
(c) Off-grid power plants are not included in the calculation (i.e., if Option I has been chosen in Step
2).
As the data of fuel consumption, net electricity generation and the average efficiency of each power unit
are unavailable in China, thus option A cannot be used. Nevertheless, the data of the total net electricity
generation of all power plants serving the system and the fuel types and total fuel consumption of the
project electricity system are available, and, nuclear and renewable power generation are considered as
low-cost/must-run power sources and the quantity of electricity supplied to the grid by these sources is
known, therefore, Option B is chosen for the proposed project.
Under Option B, the simple OM emission factor of the NWPG is calculated based on the net electricity
supplied to the grid by all power plants serving the system, not including low-cost/must-run power
plants/units, and based on the fuel type(s) and total fuel consumption of the project electricity system, as
follows:

  FC
i, y  NCVi , y  EFCO 2, i , y 
EFgrid , OMsimple, y  i
(3)
EGy
Where:
EFgrid , OMsimple, y = Simple operating margin CO2 emission factor in year y (tCO2/MWh)
FCi , y = Amount of fossil fuel type i consumed in the project electricity system in year y
(mass or volume unit)
NCVi , y = Net calorific value (energy content) of fossil fuel type i in year y (GJ/mass or
volume unit)
EFCO 2, i , y = CO2 emission factor of fossil fuel type i in year y (tCO2/GJ)
EGy = Net electricity generated and delivered to the grid by all power sources serving
the system, not including low-cost/must-run power plants/units, in year y (MWh)
i = All fossil fuel types combusted in power sources in the project electricity system
in year y
y = The three most recent years for which data is available at the time of submission
of the CDM-PDD to the DOE for validation (ex ante option)
Referring to “2012 Baseline Emission Factors for Regional Power Grids in China”, the simple operating
margin CO2 emission factor ( EFgrid , OMsimple, y ) of the NWPG is calculated as 0.9913 tCO2/MWh. The
detailed information is listed in the Annex 4.
EFgrid,OMsimple,y =0.9913 tCO2/MWh
Step 5: Calculate the build margin (BM) emission factor
In terms of vintage of data, one of the following two options can be chosen to calculate the build margin
emission factor:
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Option 1: For the first crediting period, calculate the build margin emission factor ex-ante based on the
most recent information available on units already built for sample group m at the time of CDM-PDD
submission to the DOE for validation. For the second crediting period, the build margin emission factor
should be updated based on the most recent information available on units already built at the time of
submission of the request for renewal of the crediting period to the DOE. For the third crediting period,
the build margin emission factor calculated for the second crediting period should be used. This option
does not require monitoring the emission factor during the crediting period.
Option 2: For the first crediting period, the build margin emission factor shall be updated annually, ex-
post, including those units built up to the year of registration of the project activity or, if information up to
the year of registration is not yet available, including those units built up to the latest year for which
information is available. For the second crediting period, the build margin emissions factor shall be
calculated ex-ante, as described in option 1 above. For the third crediting period, the build margin
emission factor calculated for the second crediting period should be used.
For the proposed project, option 1 is chosen to calculate build margin (BM) emission factor. And the
capacity additions from retrofits of power plants are not included in the calculation of the build margin
emission factor.
The build margin emissions factor is the generation-weighted average emission factor (tCO2/MWh) of all
power units m during the most recent year y for which electricity generation data is available, calculated
as follows:
 EG  EF
m, y EL , m , y

EFgrid , BM , y m
(4)
 EG
m
m, y

Where:
EFgrid , BM , y = Build margin CO2 emission factor in year y (tCO2/MWh)
EGm, y = Net quantity of electricity generated and delivered to the grid by power unit m in year
y (MWh)
EFEL, m, y = CO2 emission factor of power unit m in year y (tCO2/MWh)
m = Power units included in the build margin
y = Most recent historical year for which power generation data is available
The build margin calculations featured below are derived from the “2012 Baseline Emission Factors for
Regional Power Grids in China”5, which was published by the Chinese DNA and accepted by EB24.
Therefore for the proposed project: First, calculate the share of different power generation technology in
recent capacity additions; second, calculate the weight for capacity additions of each power generation
technology; and finally, calculate the emission factor use the efficiency level of the best technology
commercially available in China.
Because the generating capacity of the coal-fired, oil-fired and gas-fired technology cannot be separated
from the existing statistical data, the BM calculation in this PDD adopts the following method: First, use
the available data in the energy balance tables on the most recent year, then calculate the proportion of
CO2 emissions from solid, liquid and gaseous fuels corresponding to the total emissions of CO2 emissions.
Second, the proportion used as the weight, based on the emission factors of the optimal efficient and
commercial technologies, calculate the emission factor of the thermal power in the NWPG. Finally, this
thermal emission factor is multiplied by the proportion of thermal power added capacity in the newly
installed 20% capacity, the result is BM emission factor.

24
Deviation for projects in China (DNV, 7 Oct 05), see https://cdm.unfccc.int/Projects/deviations
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According to “Tool to calculate the emission factor for an electricity system” and EB accepts, the main
steps related formulas for BM calculation are as follows:
Sub-step 5-1: Calculation of weights of CO2 emissions by coal-fired, oil-fired and gas-fired plants in
total CO2 emissions of NWPG.
 F
iCOAL , j
i, j, y  NCVi , y  EFCO 2, i , j , y
 Coal , y  (5)
F
i, j
i, j, y  NCVi , y  EFCO 2, i , j , y

 F
iOIL , j
i, j, y  NCVi , y  EFCO 2, i , j , y
 Oil , y  (6)
F
i, j
i, j, y  NCVi , y  EFCO 2, i , j , y

 F
iGAS , j
i, j, y  NCVi , y  EFCO 2, i , j , y
 Gas , y  (7)
F
i, j
i, j, y  NCVi , y  EFCO 2, i , j , y

Where:
Fi , j , y = The amount of fuel i (in a mass or volume unit) consumed by province j
in year y
NCVi , y = The net calorific value of the fuel type i in year y (GJ/mass or volume
unit)
EFCO 2, i , j , y = The CO2 emission factor of fuel type i in year y (tCO2/GJ)
COAL , OIL and GAS = The aggregation of various kinds of coal, oil, and gas as fossil fuels
COAL, OIL, and GAS is the aggregation of various kinds of coal, oil, and gas as fossil fuels
Sub-step 5-2: Calculate the emission factor of thermal power generation of the NWPG
EFThermal , y is calculated as a weighted emission factor as the following formula:
EFThermal , y  Coal , y  EFCoal , Adv, y  Oil , y  EFOil , Adv , y  Gas , y  EFGas , Adv, y (8)
Where:
EFCoal , Adv, y , EFOil , Adv, y and EFGas , Adv, y are the emission factor proxies of efficiency level of the best
coal-fired, oil-based and gas-based power generation technology commercially available in China.
Based on the above calculation principle for BM, basic data and parameters, the calculation process for
BM is shown in Annex 4.
Sub-step 5-3: Calculation of Build Margin (BM) emission factor of NWPG
CAPThermal , y
EFgrid , BM , y   EFThermal , y (9)
CAPTotal , y
Where:
CAPTotal , y = The total amount of newly added installed capacity
CAPThermal , y = The increased installed capacity of the thermal power generation
Referring to “2012 Baseline Emission Factors for Regional Power Grids in China”, the result is:
EFgrid , BM , y = 0.5398 tCO2/MWh
For the detailed information, please see the Annex 4.
Step 6: Calculate the combined margin emission factor
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The calculation of the combined margin (CM) emission factor (EFgrid,CM,y) is based on one of the
following methods:
(a) Weighted average CM; or
(b) Simplified CM.
The weighted average CM method (option a) should be used as the preferred option.
The simplified CM method (option b) can only be used if:
 The project activity is located in a Least Developed Country (LDC) or in a country with less than 10
registered CDM projects at the starting date of validation; and
 The data requirements for the application of step 5 above cannot be met.
The proposed project uses method (a): Weighted average CM to calculate the combined margin emission
factor, as follows:
EFgrid , CM , y  EFgrid , OM , y  OM  EFgrid , BM , y   BM (10)
Where:
EFgrid , BM , y = Build margin CO2 emission factor in year y (tCO2/MWh)
EFgrid , OM , y = Operating margin CO2 emission factor in year y (tCO2/MWh)
OM = Weighting of operating margin emission factor (%)
 BM = Weighting of build margin emission factor (%)
The following default values should be used for wOM and wBM:
 Wind and solar PV power generation project activities: wOM = 0.75 and wBM = 0.25 (owing to their
intermittent and non-dispatchable nature) for the first crediting period and for subsequent crediting
periods;
 All other projects: wOM = 0.5 and wBM = 0.5 for the first crediting period, and wOM = 0.25 and wBM =
0.75 for the second and third crediting period, unless otherwise specified in the approved
methodology which refers to this tool.
The proposed project is a PV power generation project, so wOM = 0.75 and wBM = 0.25.
Applying the default weights for the proposed project, we calculate a Baseline Emission Factor as follows:
EFgrid , CM , y = 0.9913 tCO2/MWh ×0.75+0.5398 tCO2/MWh ×0.25=0.8784 tCO2/MWh
3. Leakage
According to ACM0002 (version 13.0.0), no leakage emissions are considered.
4. Emission reductions
Emission reductions are calculated as follows:
ERy  BEy  PEy (11)

Where:
ERy = Emission reductions in year y (tCO2e/yr)

BEy = Baseline emissions in year y (tCO2/yr)

PEy = Project emissions in year y (tCO2e/yr)

B.6.2. Data and parameters fixed ex ante


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Data / Parameter FCi,y


Unit Mass or volume unit
Description Amount of fossil fuel type i consumed in the project electricity system in
year y
Source of data China Energy Statistical Yearbook (2009-2011)
Value(s) applied See Annex 4 for details
Choice of data or
Measurement methods China Energy Statistical Yearbook (2009-2011)
and procedures
Purpose of data Calculation of baseline emissions
Additional comment -

Data / Parameter NCVi,y


Unit GJ/mass or volume unit of a fuel
Description The net calorific value (energy content) per mass or volume unit of a fuel
i in year(s) y
Source of data China Energy Statistical Yearbook (2009-2011)
Value(s) applied See Annex 4 for details
Choice of data or
Measurement methods China Energy Statistical Yearbook (2009-2011)
and procedures
Purpose of data Calculation of baseline emissions
Additional comment -

Data / Parameter EF CO2,i.y


Unit tCO2/GJ
Description The CO2 emission factor of energy of fossilfuel type i in year y
Source of data 2006 IPCC Guidelines for National Greenhouse Gas Inventories
Value(s) applied See Annex 4
Choice of data or
Measurement methods 2006 IPCC Guidelines for National Greenhouse Gas Inventories
and procedures
Purpose of data Calculation of baseline emissions
Additional comment -
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Data / Parameter EGy


Unit MWh
Description Net electricity generated and delivered to the grid by all power sources
serving the system, not including low-cost/must-run power plants/units, in
year y
Source of data China Electric Power Yearbook 2009-2011
Value(s) applied See Annex 4 for details
Choice of data or
Measurement methods China Electric Power Yearbook (2009-2011)
and procedures
Purpose of data Calculation of baseline emissions
Additional comment -

Data / Parameter GENEbest,coal


Unit %
Description Best electricity supply efficiency for coal fired plant
Source of data Notification on Determining Baseline Emission Factor of China’s Grid
Value(s) applied 39.65
Choice of data or
Measurement methods Official statistical data
and procedures
Purpose of data Calculation of baseline emissions
Additional comment -

Data / Parameter GENEbest,oil/gas


Unit %
Description Efficiency level of the best technology commercially available in China
for gas-fired and oil-fired power generators
Source of data Notification on Determining Baseline Emission Factor of China’s Grid5
Value(s) applied 51.93
Choice of data or
Measurement methods Official statistical data
and procedures
Purpose of data Calculation of baseline emissions
Additional comment -
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Data / Parameter CAPj,y


Unit MW
Description Installed capacity in province j in year y of NWPG
Source of data China Electric Power Yearbook 2009-2011
Value(s) applied See annex 4 for details
Choice of data
or
China Electric Power Yearbook (2009-2011)
Measurement methods
and procedures
Purpose of data Calculation of baseline emissions
Additional comment -

Data / Parameter Fi , j , y
Unit Mass or volume unit
Description Amount of fossil fuel type i (in a mass or volume unit) consumed by
province j in year y
Source of data China Energy Statistical Yearbook (2009-2011)
Value(s) applied See annex 4 for details
Choice of data
or
China Energy Statistical Yearbook (2009-2011)
Measurement methods
and procedures
Purpose of data Calculation of baseline emissions
Additional comment -

B.6.3. Ex ante calculation of emission reductions


>>
According to the calculation method in B.6.1, the results are as follows:
Baseline emissions
Emission factors of the NWPG are shown in Table 8.
Table 8 Emission factors of the NWPG
Emission factors Unit: tCO2/MWh
EFgrid , OM , y 0.9913
EFgrid , BM , y 0.5398
EFgrid , CM , y 0.8784
The detailed calculations and data are listed in Annex 4.
According to the Feasibility Study Report of the proposed project, the estimated annual electricity
generation delivered to the power grid will be:
EGPJ , y  EGfacility , y = 72,668 MWh/yr
Thus,
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BEy  EGPJ , y  EFgrid , CM , y  EGfacility , y  EFgrid , CM , y = 72,668 MWh/yr × 0.8784 tCO2/MWh


=63,831 tCO2/yr
Project emissions
According to ACM0002 (version 13.0.0), the emission of Solar PV power project activity is zero, i.e.
PEy = 0
Leakage
According to ACM0002 (version 13.0.0), No leakage emissions are considered, i.e.
LEy = 0
Emission reductions
The annual emission reductions of the project during the first crediting period are estimated to be:
ERy  BEy  PEy = 63,831 tCO2/yr -0 tCO2e/yr = 63,831 tCO2e/yr

B.6.4. Summary of ex ante estimates of emission reductions


The proposed project adopts renewable crediting period (3×7 years). Annual emission reductions of the
first crediting period of the proposed project are estimated to be 63,831tCO2e. The total emission
reductions of the project will be 63,831tCO2e during the first crediting period (01/01/2014-31/12/2020).
Baseline Project Emission
Leakage
Year emissions emissions reductions
(t CO2e)
(t CO2e) (t CO2e) (t CO2e)
2014 63,831 0 0 63,831
2015 63,831 0 0 63,831
2016 63,831 0 0 63,831
2017 63,831 0 0 63,831
2018 63,831 0 0 63,831
2019 63,831 0 0 63,831
2020 63,831 0 0 63,831
Total 446,817 0 0 446,817
Total number of crediting years 7 years
Annual average over the
63,831 0 0 63,831
crediting period
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B.7. Monitoring plan


B.7.1. Data and parameters to be monitored

Data / Parameter EGexport,y


Unit MWh/yr
Description Electricity exported to the grid by the proposed project in year y.
Source of data Electricity meters
Value(s) applied EGexport, y =72,668 MWh/yr
Measurement methods This parameter will be measured by meters M1and M2.
and procedures
Monitoring frequency This parameter will be continuously measured and monthly recorded. The
data monitored and required for verification and issuance will be kept for
two years after the end of the crediting period or the last issuance of CERs
for this project activity, whichever occurs later.
QA/QC procedures The meters will be calibrated at least once a year. The accuracy of the
meters will be no lower than 0.5S.
The data will be cross checked by electricity sales receipts or relevant
commercial data.
Purpose of data Calculation of baseline emissions
Additional comment Refer to section B.7.3

Data / Parameter EGimport,y,1


Unit MWh/yr
Description Electricity imported from the grid through the main line by the proposed
project in year y.
Source of data Electricity meters
Value(s) applied EGimport,y,1= 0 MWh/yr
Measurement methods This parameter will be measured by meters M1and M2.
and procedures
Monitoring frequency This parameter will be continuously measured and monthly recorded. The
data monitored and required for verification and issuance will be kept for
two years after the end of the crediting period or the last issuance of CERs
for this project activity, whichever occurs later.
QA/QC procedures The meters will be calibrated at least once a year. The accuracy of the
meters will be no lower than 0.5S.
The data will be cross checked by electricity sales receipts or relevant
commercial data.
Purpose of data Calculation of baseline emissions
Additional comment Refer to section B.7.3
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Data / Parameter EGimport,y,2


Unit MWh
Description Electricity imported from the grid through the spare line by the proposed
project in year y.
Source of data Electricity meter
Value(s) applied EGimport,y,2= 0 MWh
Measurement methods This parameter will be measured by meter M3.
and procedures
Monitoring frequency This parameter will be continuously measured and monthly recorded. The
data monitored and required for verification and issuance will be kept for
two years after the end of the crediting period or the last issuance of CERs
for this project activity, whichever occurs later.
QA/QC procedures The meter will be calibrated at least once a year according to national
standards. The accuracy of the meter will be no lower than 1.0.
The data will be cross checked by electricity sales receipts or relevant
commercial data.
Purpose of data Calculation of baseline emissions
Additional comment Refer to section B.7.3

Data / Parameter EGfacility,y


Unit MWh/yr
Description Quantity of net electricity generation supplied by the proposed project to
the grid in year y.
Source of data Electricity meters
Value(s) applied 72,668 MWh/yr (ex-ante estimated data)
Measurement methods This value is calculated as the difference of exported electricity and
and procedures imported electricity.
EGfacility,y = EGexport,y - EGimport,y,1- EGimport,y,2
Monitoring frequency
QA/QC procedures
Purpose of data Calculation of baseline emissions
Additional comment Refer to section B.7.3

B.7.2. Sampling plan


>>
Not applicable. None of the data and parameters monitored in section B.7.1 above are to be determined
by sampling approach.

B.7.3. Other elements of monitoring plan


>>
The purpose of monitoring plan is to ensure that the monitoring and calculation of emission reductions of
the proposed project within the crediting period is complete, consistent, clear and accurate. The plan will
be implemented by the project developer with the support of the grid corporation.
1. Management structure
The project owner will take the responsibility for the monitoring plan implementation. A CDM working
team will be established which consists of project manager, monitoring section, audit section. The project
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manager will responsible for the implementation of the monitoring activity. There will be two
departments organized for monitoring section and audit section. Monitoring section is to monitor, collect
and archive the data, while the audit section is to audit the work of the Monitoring Section and execute
the QC/QA procedures. The monitoring system flowchart of this project is shown in Figure 5.

Monitoring Section

Project manager

Audit Section

Figure 5 The operational and management structure


2. Description of the monitoring system
The baseline emission factor is calculated ex-ante. The above mentioned monitoring parameters
EGexport,y ,EGimport,y,1 and EGimport,y,2 will be measured simultaneously.
EGexport,y : Electricity exported to the grid by the proposed project in year y.
EGimport,y,1: Electricity imported from the grid through the main line by the proposed project in year y;
EGimport,y,2: Electricity imported from the grid through the spare line by the proposed project in year y;
EGfacility,y: Quantity of net electricity generation supplied by the proposed project to the grid in year y.
Where:
EGfacility,y = EGexport,y - EGimport,y,1- EGimport,y,2
Figure 6 illustrates the positioning of monitoring equipment. The electricity output will be transmitted by
the 35kV transmission lines to the 110kV substation, and then delivered to the grid. Two bi-directional
electricity meters M1(main meter) and M2(back up meter) will be installed at the higher side of 110kV
substation at the project site, which can measure annual electricity exported to and imported from the grid.
The accuracy of those meters will be no lower than 0.5S. At the same time, for the safe and smooth
operation of the project, a spare line will be connected to NWPG to import the electricity in emergency
situation, M3 with accuracy no less than 1.0 will be installed at the spare line to measure the electricity
imported through the spare line.
Only trained staffs are involved in the operation of the monitoring system.
The records of electricity exported to and imported from the grid will be cross-checked with the
electricity sales receipts or relevant commercial data.
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The proposed project

solar module
Inverter
array
solar module
Inverter Transformer
array
M1

M2
NWPG

solar module
Inverter M3 spare line
array
solar module
Inverter
array

M Meter instruments Transformer spare line

Figure 6 Monitoring system of the proposed project

3. Quality Assurance and Quality Control (QA/QC)


The quality assurance and quality control procedures for recording, maintaining and archiving data shall
be improved as part of this CDM project activity according to CDM EB rules and real practice in terms of
the need for verification of the emission reductions on an annual basis according to this PDD.
The meters will be installed according to the requirements of “Technical administrative code of electric
energy metering” DL/T 448-2000. The accuracy of M1/M2shall be no lower than 0.5S, and the accuracy
for M3 shall be no lower than 1.0. The metering equipments will be properly calibrated and checked by
an independent third party at least once a year according to the requirements of “Verification Regulation
of Electrical Energy Meters with Electronics” JJG596-2012, to ensure its accuracy.
The relative recording files will be supplied to the project owner. These recording files will be preserved
by the project owner and provide to DOE for Verification.
4. Emergency situation
 If the reading of the main meter (M1) in a certain month is so inaccurate as to be out of the error
range or the meter does not work normally, the grid-connected generation shall be read by its backup
meter (M2).
 If the readings of main meter and backup meter are beyond allowable error, the project owner and
power grid company shall jointly prepare a reasonable and conservative estimate of the net electricity
supplied to the grid during this period according to the PPA, the emission reductions will be
calculated with conservative manner.
5. Information collection and management
It is the responsibility for the project owner to provide necessary information and data for validation and
verification. The measurement of the whole production data is controlled and stored by the project owner.
On-duty staff will watch the operation status of metering equipments on site. Furthermore, the designated
staff will collect the measured electricity data and complete the corresponding records. The data from
these records will be digested and analyzed and the results will be reported to project manager.
All physical documents including the readings in electronic and/or manual form of the meters, electricity
transaction notes will be stored by the project owner and kept one copy in order to facilitate the
verification of DOE. The monthly records of power supplied to the grid and received from the grid,
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relevant accounting documents and electricity transaction notes and the results of calibration shall be
collected in a central place by the project owner.
All data collected as part of monitoring will be kept for two years after the end of the crediting period or
the last issuance of CERs for this project activity, whichever occurs later.
6. Staff Training
The CDM project manager will ensure that only trained staffs are involved in the operation of the
monitoring system. The training contains CDM knowledge, operational regulations, quality control (QC)
standard, data monitoring and data management etc.
7. Monitoring Report
The Project owner will prepare monitoring reports including metering values of power supplied to and
received from the grid, copies of sales/billing receipts, calibration and calculation of emission reductions.
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SECTION C. Duration and crediting period


C.1. Duration of project activity
C.1.1. Start date of project activity
>>
10/11/2012 (the date when the project construction contract was signed)

C.1.2. Expected operational lifetime of project activity


>>
25 years and 0 month

C.2. Crediting period of project activity


C.2.1. Type of crediting period
>>
Renewable crediting period

C.2.2. Start date of crediting period


>>
01/01/2014 or the effective date of registration, whichever is later

C.2.3. Length of crediting period


>>
7 years 0 month
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SECTION D. Environmental impacts


D.1. Analysis of environmental impacts
>>
The Environmental Impact Assessment of the proposed project has been approved by the Gansu Province
Environment Protection Department on 3rd September, 2012. The main contents of the environmental
impact assessment section are summarized as follows:
Impact on Noise Environment
The noise of the project in construction phase is from vehicles and machines on-site. However, the
proposed project is located in a desert region, which is far from the residential areas, schools, and other
residential areas, so the constructing noise will not interrupt the residents, and the magnitude of the
impacts during the construction period will only exist temporarily, and disappear after completion of the
construction period. During the operation period, no obvious impact of noise on acoustic environment
from the proposed project will occur, which meets the relevant requirements. So the impact of noise from
the proposed project will be very slight.
Impact on Waste Water
The waste water in construction phase will be collected and reused in construction work after treatment.
The possible impacts in operation phase are the washing water of solar panel, and the household
wastewater produced by builders and staff, which will be reused for green area irrigation. Therefore, there
is no impact on water environment caused by the project.
Impact on Air Environment
The powder and dust produced in the constructing process are the main factors for the air pollution during
construction period due to the construction activities including the transportation of construction material,
and road construction etc.. The impacts on air environment will be ended when the construction is
completed. Several measures shall be taken into account, such as spraying water when undertaking
construction, avoid construction in windy days and so on will be carried out to reduce the impact. Hence,
air pollution caused by the project is not significant to the surrounding environment.
Impact on Solid Waste
The possible impacts are the solid waste produced by builders and staff, and the waste earth from digging
of the foundation in the construction phase. The amount of household solid waste will be very little,
which will not have impact on the environment. The waste earth from the digging should be firstly used
for refilling. Besides, the solid waste will be collected and moved to the landfill site of the nearest city.
The abandoned optoelectronic device components will be recovered by the qualified organizations. So the
impact of solid wastes from the proposed project will be very slight.
Impact on Ecosystem Environment
The impact on the ecological environment is mainly happened during construction period. The excavation,
transport and the storage of equipments and materials will lead to the destruction of vegetation and
changes of earth’s surface structure. The construction area will be strictly arranged. The recovery
measurements will be carried out to protect environment. Moreover, there are no endangered species in
the region of the proposed project activity.
There is no migration caused by the proposed project.
Conclusion
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The proposed project does not have any major adverse impacts on the environment during its construction
and operation phases.
D.2. Environmental impact assessment
>>
The EIA report for the proposed project indicated that the proposed project would not bring significant
impacts on environment, and was approved by the Gansu Province Environment Protection Department
on 3rd September, 2012.
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SECTION E. Local stakeholder consultation


E.1. Solicitation of comments from local stakeholders
>>
To investigate the comments on the proposed project, a survey was made in April 2013 among the
potential stakeholders by the project developer. The survey was conducted through distributing and
collecting responses to a questionnaire, which was designed to be easily filled in.

The questionnaire consists of the following sections:

1) Project introduction
Liangzhou District 50MWp Grid-connected Solar PV Power Project is located in Liangzhou District
Wuwei City, Gansu Province, P. R. China. It provides a total capacity of 50 MWp. The proposed project
will help reduce greenhouse gas (GHG) emissions generated from the high-growth, coal-dominated
power generation in the NWPG, and it can also bring good environmental and social benefits.
2) Respondent’s basic information
Name, age, educational background and other information
3) Questions on:
 What level do you know about the proposed project?
 Impacts of the project on local environment;
 Do you think which negative impact on the environment may be caused by the project?
 Impacts of the project to local economic development and society;
 What impacts on your life may be caused by the project?
 Whether to support the construction of the CDM project?
 Other suggestions
4) Space for the respondents’ signature and date.

E.2. Summary of comments received


>>
The investigated stakeholders include the individuals from the construction site and nearby. The
stakeholders also include the groups from the government and association. The investigation has taken
full account into the public advice of different ages, education levels and occupations.
50 questionnaires were sent out and 50 ones were collected. Table 9 is the structure of the investigated
persons and Table 10 is analysis of their responses.

Table 9 Structure of the investigated persons


Numbers
No. Item Ratio (%)
(Person)
Male 27 54
1 Gender
Female 23 46
~29 10 20
2 Age
30~39 22 44
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40~ 18 36
Primary school 21 42
Junior high school 20 40
3 Education level
Senior high school 6 12
College 3 6
Peasant 22 44
Worker 18 36
4 Career
Government official 5 10
Others 5 10
Table 10 Results of the questionnaires
Numbers Ratio
Questions Options
(Person) (%)
Know very well 28 56
What level do you know about the
Know a little 22 44
proposed project?
Know nothing 0 0
Positive effect 42 84
Impacts of the project on local
Negative impact 2 4
environment;
No impact 6 12
Noise of the construction and operation 2 4
Do you think which negative Construction waste water 0 0
impact on the environment may be Impact of dust on air quality 0 0
caused by the project? (Multiple Construction waste 0 0
Choice) land occupation 0 0
Ecological environment 0 0
Impacts of the project on local Beneficial 50 100
society and economic Adverse 0 0
development; No impact 0 0
Increasing family income 28 56
Ensuring power supply 50 100
What impacts on your life may be
Increasing job opportunities 32 64
caused by the project? (Multiple
Improving air quality 17 34
Choice)
Increasing local tourism resources 12 24
Others 0 0
Support 50 100
Whether to support the
Nonsupport 0 0
construction of the CDM project?
Indifferent 0 0
Other suggestions No other suggestions were received.
Comments from the questionnaires show that 100% of the investigated stakeholders agree with the
project construction. The proposed project receives strong supports from the stakeholders.
In conclusion, the stakeholders are supportive of this project.

E.3. Report on consideration of comments received


>>
The survey shows that the project has strong local support amongst the public. All the interviewees
support the construction of the project. Most of them believe that the proposed project will have positive
effect on relieving the situation of the short supplement of electricity and decreasing the environment
pollution. The main issue concerned is the noise caused by construction of the project. However, as per
the environmental impact assessment report approved by the Gansu Province Environment Protection
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Department on 3rd September, 2012 indicated the magnitude of the impacts during the construction period
will only exist temporarily, and disappear after completion of the construction period. During the
operation period, no obvious impact of noise on acoustic environment from the proposed project will
occur. Therefore, there is little impact on local residents’ life. Besides, some effective measures that can
be taken by the project owner to reduce or avoid the negative effect caused by the project, such as choose
the lower noisy construction machines, etc, so as to achieve environmental benefits, social benefits and
economic benefits.
All of the investigated stakeholders agree with the project construction, therefore, there is no need to
modify the plans due to the comments received.
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SECTION F. Approval and authorization


>>
The letter(s) of approval from China was obtained on 05/08/2013.

-----
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Appendix 1: Contact information of project participants

Organization name Sinohydro Wuwei Solar Power Co., Ltd.


Street/P.O. Box No.21, West Street, Liangzhou District
Building
City Wuwei City
State/Region Gansu Province
Postcode 733099
Country P. R. China
Telephone +86-(0)10-58381405
Fax +86-(0) 10-58381446
E-mail Guriming8@163.com
Website
Contact person Riming Gu
Title
Salutation Mr.
Last name Gu
Middle name
First name Riming
Department
Mobile
Direct fax +86-(0) 10-58381446
Direct tel. +86-(0)10-58381405
Personal e-mail Guriming8@163.com
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Organization name Department of Climate Change, National Development and Reform


Commission of China
Street/P.O. Box No.38, Yuetan South Street
Building National Development and Reform Commission
City Beijing
State/Region Beijing
Postcode 100048
Country P. R. China
Telephone +86-(0)10-68502963
Fax +86-(0)10-68502358
E-mail sunch@ndrc.gov.cn; wangshu@ccchina.gov.cn
Website
Contact person Cuihua Sun
Title
Salutation Ms.
Last name Sun
Middle name
First name Cuihua
Department
Mobile
Direct fax +86-(0)10-68502358
Direct tel. +86-(0)10-68502963
Personal e-mail sunch@ndrc.gov.cn; wangshu@ccchina.gov.cn
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Appendix 2: Affirmation regarding public funding

No public funds from Annex I countries are involved in the proposed project.

Appendix 3: Applicability of selected methodology

No more information
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Appendix 4: Further background information on ex ante calculation of emission reductions

The Annex 4 provides the basic data and results of the baseline emission factor in the Northwest China
Power Grid (NWPG).

The table list used for calculation of combined margin emission factor ( EFgrid , CM , y ) (including data, data
sources and course of calculation) is as follows:

Table 4- 1 Low calorific values, CO2 emission factors and oxidation factors of fuels .............................. 44

Table 4- 2 Operating Margin Emission Factor ( EFgrid , OM , y ) of NWPG in 2008 ..................................... 45

Table 4- 3 Operating Margin Emission Factor ( EFgrid , OM , y ) of NWPG in 2009 ..................................... 46

Table 4- 4 Operating Margin Emission Factor ( EFgrid , OM , y ) of NWPG in 2010 ..................................... 47


Table 4- 5 Thermal Power to NWPG in 2008 ............................................................................................ 49
Table 4- 6 Thermal Power to NWPG in 2009 ............................................................................................ 49
Table 4- 7 Thermal Power to NWPG in 2010 ............................................................................................ 49
Table 4- 8 Summaries of power supply and CO2 emission in NWPG in 2008-2010................................. 49
Table 4- 9 CO2 emission of all kinds of fuels in NWPG in 2010 .............................................................. 51
Table 4- 10 Emission factors of the most advanced technologies for the relevant fuels ........................... 53
Table 4- 11 Installed capacity of NWPG for 2010..................................................................................... 53
Table 4- 12 Installed capacity of NWPG for 2009..................................................................................... 53
Table 4- 13 Installed capacity of NWPG for 2008..................................................................................... 53

Table 4- 14 Calculation of EFgrid , BM , y of NWPG .................................................................................... 54

Table 4- 15 Calculation of EFgrid , CM , y of NWPG .................................................................................... 54


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Table 4- 1 Low calorific values, CO2 emission factors and oxidation factors of fuels

Emission Factor Oxidation Rate


Fuels Low Calorific Values
(kgCO2/TJ) (%)

Raw Coal 20,908 kJ/kg 87,300 100


Cleaned Coal 26,344 kJ/kg 87,300 100
Mould Coal 20,908 kJ/kg 87,300 100
Other Washed Coal 8,363 kJ/kg 87,300 100
Coke 28,435 kJ/kg 95,700 100
Crude Oil 41,816 kJ/kg 71,100 100
Gasoline 43,070 kJ/kg 67,500 100
Diesel Oil 42,652 kJ/kg 72,600 100
Fuel Oil 41,816 kJ/kg 75,500 100
Other Oil Products 41,816 kJ/kg 72,200 100
Natural Gas 38,931 kJ/m3 54,300 100
Coke Oven Gas 16,726 kJ/m3 37,300 100
Other Gas 5,227 kJ/m3 37,300 100
LPG 50,179 kJ/kg 61,600 100
Refinery Gas 46,055 kJ/kg 48,200 100
Data Source: The net calorific values are quoted from <China Energy Statistical Yearbook>. The
emission factors are quoted from” 2006 IPCC Guidelines for National Greenhouse Gas Inventories”
Volume 2 Energy, as the lower value of 95% confidence interval.
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1. The data and calculation of Simple OM Emission Factor of NWPG


1) CO2 emission of all kinds of fuels in NWPG in 2008-2010
Table 4- 2 Operating Margin Emission Factor ( EFgrid , OM , y ) of NWPG in 2008
Carbon Fuel Average
Carbon CO2 emission
Fuel type Unit Shaanxi Gansu Qinghai Ningxia Xinjiang Total oxidation emission low calorific
content (tCO2e)
rate factor value
L=G×J×K/100000
(tC/TJ) (%) (kgCO2/TJ) (MJ/t,km3)
(mass unit)
L=G×J×K/10000
A B C D E G=A+…+E H I J K
(volume unit)
Raw coal 104 t 3620 2216.9 507.44 2330.72 1924.9 10599.96 25.8 100 87,300 20,908 193,477,720
Washed coal 104 t 0 25.8 100 87,300 26,344 0
Other washed
104 t 9.22 53.85 8.2 71.27 25.8 100 87,300 8,363 520,335
coal
4
Moulded coal 10 t 0 26.6 100 87,300 20,908 0
Coke 104 t 0 29.2 100 95,700 28,435 0
Coke oven gas 108 m3 0.35 0.74 0.13 1.22 12.1 100 37,300 16,726 76,113
Other gas 108 m3 18.38 0.2 18.58 12.1 100 37,300 5,227 362,249
Crude oil 104 t 0 20 100 71,100 41,816 0
Gasoline 104 t 0.05 0.01 0.06 18.9 100 67,500 43,070 1,744
Diesel oil 104 t 1.03 0.44 0.26 0.05 1.64 3.42 20.2 100 72,600 42,652 105,902
Fuel oil 104 t 0.86 0.04 0.02 0.92 21.1 100 75,500 41,816 29,045
LPG 104 t 0 17.2 100 61,600 50,179 0
Refinery gas 104 t 7.25 7.25 15.7 100 48,200 46,055 160,939
Natural gas 108 m3 0.94 0.24 2.99 7.2 11.37 15.3 100 54,300 38,931 2,403,565
Other petroleum
104 t 0.01 0.01 20 100 72,200 41,816 302
products
Other coking
104 t 0 25.8 100 95,700 28,435 0
products
4
10 t
Other energy standard 93.67 10.58 21.24 125.49 0 0 0 0 0
coal
Total 197,137,915
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Data Source: <China Energy Statistical Yearbook 2009>


Table 4- 3 Operating Margin Emission Factor ( EFgrid , OM , y ) of NWPG in 2009
Carbon Fuel Average low
Carbon CO2 emission
Fuel type Unit Shaanxi Gansu Qinghai Ningxia Xinjiang Total oxidation emission calorific
content (tCO2e)
rate factor value
L=G×J×K/100000
(tC/TJ) (%) (kgCO2/TJ) (MJ/t,km3)
(mass unit)
L=G×J×K/10000
A B C D E G=A+…+E H I J K
(volume unit)
4
Raw coal 10 t 3949.22 2060 467.05 2350.13 2380 11206.4 25.8 100 87,300 20,908 204,546,878
Washed coal 104 t 0 25.8 100 87,300 26,344 0
Other washed coal 104 t 8.34 56.01 6.66 71.01 25.8 100 87,300 8,363 518,437
Moulded coal 104 t 0 26.6 100 87,300 20,908 0
Coke 104 t 0 29.2 100 95,700 28,435 0
Coke oven gas 108 m3 0.49 0.8 0.12 1.41 12.1 100 37,300 16,726 87,967
Other gas 108 m3 18.37 0.44 18.81 12.1 100 37,300 5,227 366,733
Crude oil 104 t 0 20 100 71,100 41,816 0
Gasoline 104 t 0.02 0.02 18.9 100 67,500 43,070 581
Diesel oil 104 t 0.6 0.52 0.2 0.07 0.7 2.09 20.2 100 72,600 42,652 64,718
Fuel oil 104 t 0.25 0.08 0.06 0.39 21.1 100 75,500 41,816 12,313
LPG 104 t 0.02 0.02 17.2 100 61,600 50,179 618
Refinery gas 104 t 8.56 8.56 15.7 100 48,200 46,055 190,019
Natural gas 108 m3 0.91 0.07 3.93 7.83 12.74 15.3 100 54,300 38,931 2,693,177
Other petroleum
104 t 0 20 100 72,200 41,816 0
products
Other coking
104 t 0 25.8 100 95,700 28,435 0
products
4
10 t
Other energy standard 73.76 18.52 18.08 110.36 0 0 0 0 0
coal
Total 208,481,441

Data Source: <China Energy Statistical Yearbook 2010>


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Table 4- 4 Operating Margin Emission Factor ( EFgrid , OM , y ) of NWPG in 2010


Average
Carbon Fuel
Carbon low CO2 emission
Fuel type Unit shaanxi Gansu Qinghai Ningxia Xinjiang Total emission
oxidation rate calorific (tCO2e)
content factor
value
L=G×J×K/100000
(tC/TJ) (%) (kgCO2/TJ) (MJ/t,km3)
(mass unit)

L=G×J×K/10000
A B C D E G=A+…+E H I J K
(volume unit)
Raw coal 104 t 4850.49 2771.89 483.72 2916.46 2494.9 13517.46 25.8 100 87,300 20,908 246,729,926
Washed coal 104 t 1.05 1.05 25.8 100 87,300 26,344 24,148
Other washed
104 t 11.01 42.96 6.82 60.79 25.8 100 87,300 8,363 443,822
coal
4
Moulded coal 10 t 0 26.6 100 87,300 20,908 0
Coke 104 t 355.13 37.86 163.58 2.85 559.42 25.8 100 87,300 8,363 4,084,269
Coke oven gas 108 m3 1.97 0.89 0.7 3.56 12.1 100 37,300 16,726 222,101
Top gas 108 m3 18.24 4.06 5.28 27.58 70.8 100 219,000 3,763 2,272,860
Converter gas 108 m3 0.31 0.31 46.9 100 145,000 7,945 35,713
Other gas 108 m3
Crude oil 104 t 0 20 100 71,100 41,816 0
Gasoline 104 t 0.01 0.03 0.01 0.05 18.9 100 67,500 43,070 1,454
Diesel oil 104 t 0.67 0.42 0.21 0.23 0.39 1.92 20.2 100 72,600 42,652 59,453
Fuel oil 104 t 0.17 0.09 0.1 0.7 1.06 21.1 100 75,500 41,816 33,465
LPG 104 t 0 17.2 100 61,600 50,179 0
Refinery gas 104 t 0 15.7 100 48,200 46,055 0
Natural gas 108 m3 0.87 2.48 0.3 8.54 12.19 15.3 100 54,300 38,931 2,576,909
Refinery dry gas 104 t 12.2 12.2 15.7 100 48,200 46,055 270,822
Other petroleum
104 t 0 20 100 75,500 41,816 0
products
Other coking
104 t 0.01 0.01 20 100 72,200 41,816 302
products
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104 t
Other energy standard 1.76 2.68 4.44 0 0 0 0 0
coal
Total 256,755,243

Data Source: <China Energy Statistical Yearbook 2011>


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2) Thermal power generation in NWPG in 2008-2010

Table 4- 5 Thermal Power to NWPG in 2008


Electricity Electricity Internal Supplied
Province
generation generation use rate electricity
(108kWh) (MWh) (%) (MWh)
shaanxi 715 71,500,000 6.95 66,530,750
Gansu 468 46,800,000 6.4 43,804,800
Qinghai 107 10,700,000 7.14 9,936,020
Ningxia 440 44,000,000 7.57 40,669,200
Xinjiang 397 39,700,000 39,700,000
Total 200,640,770
Data Source: <China Electric Power Yearbook 2009>
Table 4- 6 Thermal Power to NWPG in 2009
Electricity Electricity Internal Supplied
Province
generation generation use rate electricity
(108kWh) (MWh) (%) (MWh)
shaanxi 774 77,400,000 7.24 71,796,240
Gansu 441 44,100,000 6.88 41,065,920
Qinghai 107 10,700,000 7.01 9,949,930
Ningxia 447 44,700,000 7.76 41,231,280
Xinjiang 452 45,200,000 5.16 42,867,680
Total 222,100,000 206,911,050
Data Source: <China Electric Power Yearbook 2010>
Table 4- 7 Thermal Power to NWPG in 2010
Electricity Electricity Internal Supplied
Province
generation generation use rate electricity
(108kWh) (MWh) (%) (MWh)
shaanxi 958 95,800,000 7.23 88,873,660
Gansu 591 59,100,000 6.73 55,122,570
Qinghai 109 10,900,000 6.58 10,182,780
Ningxia 572 57,200,000 57,200,000
Xinjiang 539 53,900,000 8.7 49,210,700
Total 260,589,710
Data Source: <China Electric Power Yearbook 2011>
3) Summary of power supply and CO2 emission in NWPG in 2008-2010

Table 4- 8 Summaries of power supply and CO2 emission in NWPG in 2008-2010


2008 2009 2010
Total CO2 emission (tCO2) 197,137,915 208,481,441 256,755,243
Total supplied electricity (MWh) 200,640,770 206,911,050 260,589,710
Emission factor(tCO2/MWh) 0.98254 1.00759 0.98529
Data Source: <China Energy Statistical Yearbook 2009>, <China Energy Statistical Yearbook 2010>, <China
Energy Statistical Yearbook 2011>

4) Calculation of EFgrid , OM , y of NWPG


The weighted average emission factor of the three years is as follows:
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EFgrid , OM , y =0.9913 tCO2/MWh


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2. The data and calculation of BM Emission Factor of NWPG


1) Calculation of proportion of CO2 emitted by the coal, gas, oil used for power generation respectively in the total emission
Table 4- 9 CO2 emission of all kinds of fuels in NWPG in 2010
Average low Fuel
Carbon oxidation CO2 emission
Shaanxi Gansu Qinghai Ningxia Xinjiang Total calorific emission
rate (tCO2e)
value factor
Fuel type Unit A B C D E G=A+…+E H I J K=G×H×I/100,000
Raw coal 104 t 4,850.49 2,772 483.72 2,916.46 2,495 13,517.5 20,908 87,300 1 246,729,926
Washed coal 104 t 0 0 0 1.05 0 1 26,344 87,300 1 24,148
Other washed coal 104 t 11.01 0 0 42.96 6.82 61 8,363 87,300 1 443,822
Moulded coal 104 t 0 0 0 0 0 0 20,908 87,300 1 0
Coke 104 t 355.13 37.86 0 163.58 2.85 559 8,363 87,300 1 4,084,269
Other coking products 104 t 0 0 7.99 0 0 8 28,435 95,700 1 217,426
Sub-total 251,499,591
Crude oil 104 t 0 0 0 0 0 0 41816 71100 1 0
Gasoline 104 t 0.01 0 0.03 0 0.01 0.05 43070 67500 1 1,454
Diesel oil 104 t 0.67 0.42 0.21 0.23 0.39 1.92 42652 72600 1 59,453
Fuel oil 104 t 0 0.17 0.09 0.1 0.7 1.06 41816 75500 1 33,465
Other petroleum
104 t 0 0 0 0 0.01 0.01 41816 75500 1 316
products
Sub-total 94,688
7 3
Natural gas 10 m 8.7 0 24.8 3 85.4 122 38,931 54,300 1 2,576,909
Coke oven gas 107m3 19.7 8.9 0 0 7 36 16,726 37,300 1 222,101
Top gas 107m3 182.4 40.6 0 0 52.8 276 3,763 219,000 1 2,272,860
Converter gas 107m3 0 3.1 0 0 0 3 7,945 145,000 1 35,713
0ther gas 104 t 0 0 0 0 0 0 5,227 37,300 1 0
Refinery dry gas 104 t 12.2 12.2 46055 48200 1 270,822
Sub-total 5,378,404
Total 256,972,683

Data Source: <China Energy Statistical Yearbook 2011>


Calculate with data provided in Table 4- 9 as above and formula (5), (6), (7), the results is:
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 Coal = 97.87%,  Oil = 0.04%,  Gas = 2.09%.


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2) Calculation of EFThermal

Table 4- 10 Emission factors of the most advanced technologies for the relevant fuels
Electricity Fuel emission Carbon Fuel emission
Parameter supply factor oxidation factor
efficiency (%) (kgCO2/TJ) rate (tCO2/MWh)
A B C D=3.6/A/10,000×B×C
Coal-fired
EFCoal,Adv,y 39.65 87,300 1 0.7927
power plant
Oil-fired power
EFOil,Adv,y 51.93 75,500 1 0.5234
plant
Gas-fired
EFGas,Adv,y 51.93 54,300 1 0.3765
power plant
Data source: Notification on Determining Baseline Emission Factor of China’s Grid, issued by China’s DNA on 20,
October, 2011
EFThermal =  Coal ×EFCoal , Adv, y +  Oil ×EFOil , Adv, y +  Gas ×EFGas , Adv, y = 0.7839 tCO2/MWh

3) Installed Capacity of NWPG in the latest 3 years

Table 4- 11 Installed capacity of NWPG for 2010


Installed capacity Unit Shaanxi Gansu Qinghai Ningxia Xinjiang Total
Thermal power MW 21,370 13,240 1,930 12,710 11,720 60,970
Hydro power MW 2,210 6,110 10,680 430 2,990 22,420
Nuclear power MW 0 0 0 0 0 0
Wind power & others MW 0 1390 0 600 1360 3,350
Total MW 23,580 20,740 12,610 13,740 16,070 86,740
Data Source: <China Electric Power Yearbook 2011>
Table 4- 12 Installed capacity of NWPG for 2009
Installed capacity Unit Shaanxi Gansu Qinghai Ningxia Xinjiang Total
Thermal power MW 19,900 10,990 1,930 8,820 9,520 51,160
Hydro power MW 1,920 5,940 8,740 430 2,430 19,460
Nuclear power MW 0 0 0 0 0 0
Wind power & others MW 0 750 0 270.3 860 1,880
Total MW 21,820 17,680 10,670 9,520 12,810 72,500
Data Source: <China Electric Power Yearbook 2010>
Table 4- 13 Installed capacity of NWPG for 2008
Installed capacity Unit Shaanxi Gansu Qinghai Ningxia Xinjiang Total
Thermal power MW 17,850 8,980 2,000 7,540 8,200 44,570
Hydro power MW 1,810 5,440 5,910 430 2,190 15,780
Nuclear power MW 0 0 0 0 0 0
Wind power & others MW 0 600 0 170 510 1,280
Total MW 19,660 15,020 7,910 8,140 10,900 61,630
Data Source: <China Electric Power Yearbook 2009>
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4) Calculation of EFgrid , BM , y of NWPG

Table 4- 14 Calculation of EFgrid , BM , y of NWPG (Unit: MW)


Capacity Capacity Ratio to the
2008 2009 2010 addition from addition from total capacity
2008 to 20101 2009 to 20102 addition
A B C D E F
Thermal power 44,570 51,160 60,970 19,270 12,020 68.87%
Hydro power 15,780 19,460 22,420 6,640 2,960 23.73%
Nuclear power 0 0 0 0 0 0.00%
Wind power &
1,280 1,880 3,350 2,070 1,470 7.40%
others
Total 61,630 72,500 86,740 27,980 16,450 100.00%
Ratio to 2009's
32.26% 18.96%
capacity
Attention: 1 and 2 are capacity addition calculated considering installed capacity, shut-down capacity and pumped
storage capacity.
The EFgrid , BM , y of NWPG is:
EFgrid , BM , y = 0.7839×68.87%= 0.5398 tCO2/MWh
5) Calculation of EFgrid , CM , y of NWPG

Table 4- 15 Calculation of EFgrid , CM , y of NWPG (tCO2/MWh)


EFgrid , OM , y 0.9913
EFgrid , BM , y 0.5398
EFgrid , CM , y 0.8784
EFgrid , CM , y  0.75  EFgrid , OM , y  0.25  EFgrid , BM , y = 0.8784 tCO2/MWh
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Appendix 5: Further background information on monitoring plan

No more information

Appendix 6: Summary of post registration changes

No more information
-----

History of the document

Version Date Nature of revision


04.1 11 April 2012 Editorial revision to change version 02 line in history box from Annex 06 to
Annex 06b.
04.0 EB 66 Revision required to ensure consistency with the “Guidelines for completing
13 March 2012 the project design document form for CDM project activities” (EB 66, Annex
8).
03 EB 25, Annex 15
26 July 2006
02 EB 14, Annex 06b
14 June 2004
01 EB 05, Paragraph 12 Initial adoption.
03 August 2002
Decision Class: Regulatory
Document Type: Form
Business Function: Registration

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