PDD CDM Talara-2022

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM – Executive Board
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CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 03 - in effect as of: 28 July 2006
CONTENTS
A. General description of project activity
B. Application of a baseline and monitoring methodology
C. Duration of the project activity / crediting period
D. Environmental impacts
E. Stakeholders’ comments
Annexes
Annex 1: Contact information on participants in the project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring plan

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SECTION A. General description of project activity
A.1. Title of the project activity:
Talara Wind Farm Project

Version: 01.4
Date of completion: 23/11/2012
A.2. Description of the project activity:
The proposed project activity consists in the installation and operation of a 30.6 MW grid-connected wind
farm located in La Campana Pampa, District of Pariñas in the Province of Talara in Peru. The proposed
project activity will be developed by Energía Eólica S.A.
For the implementation of the proposed project activity 17 wind turbines, each with a capacity of 1.8 MW
will be installed. The total installed capacity of the proposed project activity will be 30.6 MW with an
expected electricity generation of 123 306 MWh per year, displacing thermal generation and GHG
emissions. The Project is expected to have a minimum plant operating life of 20 years. The estimated
annual emission reductions will be 86 866 tCO2e.
In the existing scenario (prior to the implementation of the project activity) there is no power plant
operating at the project site. If the project activity is not implemented the most viable baseline scenario is
power supplied by power plants connected to the National Interconnected System (SEIN) (continuation of
the current situation). SEIN is dominated by fossil fuel-fired power plants, which on 2010 represented
approximately the 41.28% of the total generation of the grid. The baseline emissions correspond to CO2
emissions attributable to the generation of the 123 306 MWh/year (projected generation of the wind farm)
that would have been generated by a mix of power plants connected to the SEIN.
Also the development of Talara Wind Farm project will allow the achievement of several objectives
which represents a contribution to the sustainable development at local, regional and global levels. Some
examples of these contributions are:
• Wind energy operations do not generate air or water emissions and do not produce hazardous
waste. Nor do they deplete natural resources such as coal, oil, or gas, or cause environmental
damage through resource extraction and transportation, or require significant amounts of water
during operation. Hence, the project activity will contribute to the generation of clean energy in
Peru and will displace electricity generation from thermal power plants, reducing 86 866 ton
CO2e/year. This will result in the reduction of Greenhouse Gas (GHG) emissions, thus providing
a sustainable option in the diversification and increase of energy production in the country.
• The operation of the wind farm will help to reduce the thermal power plant operation in the
SEIN, reducing so the emission of local pollutants as NOx, SOx and PM.
• Helping the country to improve its hydrocarbon trade balance through reduction of oil derivates
consumption to be used for electricity generation.
• The project will contribute to promoting, developing and strengthening the renewable energy
sector in Peru.
• Creating employment opportunities in the nearby area where the project is located, during the
assembly and installation of wind turbines and for operation of the proposed project;
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• Contributing to fiscal accounts though the payment of taxes.

• The project will contribute to technology and know-how transfer to Peru. The project activity will
install state-of-the-art technology that will provide clean and safe power generation; moreover,
the installation and operation of these turbines will bring to the region new knowledge and
experience for the benefit of local workers while requiring for specialized labour.
A.3. Project participants:

>>
Kindly indicate if the Party

Private and/ or Public involved wishes to be
Name of Party involved (*)
entity(ies) Project considered as project
((host) indicates a host Party)
participants(*) (as applicable) participants
(Yes/ No)
Peru (Host) Energia Eolica S.A NO
United Kingdom of Great Britain Gazprom Marketing and Trading
NO
and Northern Ireland Limited (private entity).
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:

>>
A.4.1.1. Host Party(ies):
Republic of Peru
A.4.1.2. Region/State/Province etc.:
La Piura/Province of Talara
A.4.1.3. City/Town/Community etc.:
La Campana Pampa, District of Pariñas
A.4.1.4. Details of physical location, including information allowing the

unique identification of this project activity (maximum one page):
The project will be located in the Peruvian coast in La Campana Pampa, District of Pariñas in the
Province of Talara, approximately 8 kilometres from Talara city, Peru. The area where the wind turbines
will be installed is within the following vertices (coordinates UTM 17 S WGS 84):
Vertex East North

C1 475768.325 9495586.454
C2 476231.925 9495399.181
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C3 476381.742 9495770.062
C4 475904.235 9495962.952
C5 476729.285 9498002.788
C6 479058.123 9497369.729
C7 479058.124 9495004.753
C8 478083.054 9493612.208
C9 478640.072 9493222.180
C10 479280.065 9493222.180
C11 479050.047 9491841.220
C12 475768.326 9491841.219
Figure 1. Project Location.
A.4.2. Category(ies) of project activity:
Category: Renewable electricity in grid connected applications

Sector scope (1): Energy industries
A.4.3. Technology to be employed by the project activity:
The project activity consists in a 30.6 MW wind power facility, which is expected to produce 123 306
MWh with an average plan load factor of 46%. The minimum expected operational lifetime is 20 years.
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The Project will be equipped with V100-1.8 MW turbines manufactured by Vestas; the selection of these
turbines was made on the basis of suitability studies for the particular strong and continuous wind
conditions that prevail at the Project site and the general region, as well as of maintenance and operation
criterion.
The project technical data is as follows:
Total power Capacity 30.6 MW

Rated Power per turbine 1.8 MW
Cut in-cut-out wind 4 – 20 m/s
Diameter 100 m
Swept area 7850 m2
Hub Height 80 m
Rated output Voltage 690 V
Frequency 60 Hz
No. Of Turbines 17
Plant Load Factor 46 %
Annual Power Production 123 306 MWh
Transmission line length 25.6 km
Transmission line Voltage 220 kV
Table 1. Project technical data-
For project implementation, an arrangement consisting of 17 Vestas V100, each of 1.8 MW design
capacity has been selected. Each turbine will be mounted on an 80 m steel tower and will have a rotor
diameter of 100 m. Energy electricity will be generated in the wind turbines and transferred to the
SEIN by means of a 220kV transmission line connected to the Piura sub-station.
Vestas is a company related with the wind energy technology, turbine manufacturing and wind project
development. The main idea of Vestas is that the wind power is a renewable, predictable and clean source
of energy and with this energy a substantial capacity can be built up quickly, offering energy
independence to the world’s largest and fastest growing economies. The main goal of the company is by
2020 the 10 percent of the world’s electricity consumption will come from renewable energy.
Vestas is one of the top suppliers of modern energy solutions. It has installed more than 43 000 wind
turbines in 66 countries on six continents. It installs an average of one wind turbine every three hours,
twenty-four hours a day. In fact, their wind turbines generate more than 90 million MWh of energy per
year, enough electricity to supply millions of households.
All the wind turbines will be interconnected to each other and to the central control room. Information
from weather monitoring stations and the electrical substation of the park will also be gathered to this
control room, which will receive all the real-time information, displaying on the monitor of computer.
All the technology besides the individual benefits for the wind farm will represent a knowledge and
technology transfer to the country, through training sessions for the operation and maintenance of the
equipment.
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A.4.4. Estimated amount of emission reductions over the chosen crediting period:
Estimate of emission reductions

Year
(tonnes of CO2e)
2013 46 408
2014 86 866
2015 86 866
2016 86 866
2017 86 866
2018 86 866
2019 86 866
2020 40 458
Total estimated reductions over the
608 063
crediting period
Total number of crediting years 7
Annual average of estimated emission
86 866
reductions (tCO2e)
A.4.5. Public funding of the project activity:
There is no public funding for the proposed project.

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SECTION B. Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the
project activity:
The project activity is developed under the approved consolidated baseline and monitoring methodology
ACM0002 “Consolidated baseline methodology for grid-connected electricity generation from
renewable sources” (version 12.3.0).
According to the methodology, the identification of the baseline scenario and the demonstration of
additionality shall be assessed by applying the latest version of the:
• “Tool for the demonstration and assessment of additionality” (version 06).
Also, following the ACM0002, version 12.3.0 guidelines, the

• “Tool to calculate project or leakage CO2 emissions from fossil fuel combustion” (version 02);
• “Tool to calculate the emission factor for an electricity system” (version 02.2.1)
are to be applied in the development of the PDD for this proposed CDM project activity.
B.2. Justification of the choice of the methodology and why it is applicable to the project
activity:
The proposed approved methodology “Consolidated baseline methodology for grid-connected electricity
generation from renewable sources” (version 12.3.0) 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).
In this case, the project involves option (a) install a new power plant at a site where no renewable power
plant was operated prior to the implementation of the project activity, which in the specific case of the
proposed project activity is the installation of a 30.6 MW wind farm.
The following conditions from ACM0002 (version 12.3.0) make the proposed project activity applicable
as a CDM under the methodological framework mentioned:
Applicability conditions Fulfillment of conditions

• The project activity is the installation, The proposed project activity consists of the
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capacity addition, retrofit or replacement of installation and operation of a 30.6 MW grid

a power plant/unit of one of the following connected wind power plant.
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;
• In the case of capacity additions, retrofits or This condition is not related to the proposed
replacements (except for wind, solar, wave project activity since no capacity additions, retrofit
or tidal power capacity addition projects or replacements are contemplated.
which use Option 2: on page 10 to calculate
the parameter EGPJ,y): the existing plant
started commercial operation prior to the
start of a minimum historical reference
period of five years, used for the calculation
of baseline emissions and defined in the
baseline emission section, and no capacity
expansion or retrofit of the plant has been
undertaken between the start of this
minimum historical reference period and the
implementation of the project activity;
• In case of hydro power plants, one of the This condition is not related to the proposed
following conditions must apply: project activity, since it is not a hydro power plant.
o The project activity is implemented in
an existing reservoir, with no change in
the volume of reservoir; or
o The project activity is implemented in
an existing reservoir, where the volume
of reservoir is increased and the power
density of the project activity, as per
definitions given in the Project
Emissions section, is greater than 4
W/m2; or
o The project activity results in new
reservoirs and the power density of the
power plant, as per definitions given in
the Project Emissions section, is
greater than 4 W/m2.
The methodology is not applicable to the following:
Applicability conditions Fulfillment of conditions

• Project activities that involve switching from The proposed project activity does not involve
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fossil fuels to renewable energy sources at switching from fossil fuels to renewable energy at
the site of the project activity, since in this the site of the project activity.
case the baseline may be the continued use
of fossil fuels at the site;
• Biomass fired power plants; The proposed project activity does not involve
biomass fired power plants.
• Hydro power plants that result in new This condition is not related to the proposed
reservoirs or in the increase in existing project activity since the proposed project activity
reservoirs where the power density of the does not involve hydro power plants.
power plant is less than 4 W/m2.
• In the case of retrofits, replacements, or This condition is not related to the proposed
capacity additions, this methodology is only project activity since no capacity additions, retrofit
applicable if the most plausible baseline or replacements are contemplated.
scenario, as a result of the identification of
baseline scenario, is “the continuation of the
current situation, i.e. to use the power
generation equipment that was already in
use prior to the implementation of the
project activity and undertaking business as
usual maintenance”.
Therefore, based on the information above it is concluded that the methodology is applicable to the
proposed project activity.
The “Tool to calculate project or leakage CO2 emissions from fossil fuel combustion” (version 02) is
applicable in cases where CO2 emissions from fossil fuel combustion are calculated based on the quantity
of fuel combusted and its properties.
The “Tool to calculate the emission factor for an electricity system” (version 2.2.1) is applied to calculate
baseline emissions for a project activity that substitutes grid electricity. Under this tool, the emission
factor for the project electricity system can be calculated either for grid power plants only or, as an
option, can include off-grid power plants. In the latter case, there are specific conditions that should be
met. Since the electricity system affected by the proposed project activity includes only grid connected
power plants, no specific conditions should be assessed. The tool is not applicable if the project electricity
system is located partially or totally in an Annex-I country.
B.3. Description of the sources and gases included in the project boundary:
The spatial extent of the project boundary includes Talara Wind Farm and all power plants connected
physically to the electricity system that the CDM project power plant is connected to. Since there is a
single national electricity grid within Peru (SEIN, National Interconnected Power Grid of Peru) to which
the wind farm project will be connected, the SEIN is included in the project boundary.
The greenhouse gases and emission sources included in or excluded from the project boundary are shown
below.
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Source Gas Included? Justification/Explanation
CO2 emissions from electricity CO2 YES Main source of emissions in the baseline.
Baseline
generation in fossil fuel fired

CH4 NO Minor emission source.
power plants that are displaced
due to the project activity. N2O NO Minor emission source.
CO2 NO
According to ACM0002 version 12.3.0,
Activity
Project
Emissions from electricity

CH4 NO there are no project emissions from wind
generation
farm projects.
N2O NO
B.4. Description of how the baseline scenario is identified and description of the identified
baseline scenario:
The project activity does not modify or retrofit an existing electricity generation facility or involves the
addition of renewable energy generation units. The proposed project activity is the installation of a new
grid-connected renewable power plant.
Therefore, as stated in the approved methodology ACM0002 “Consolidated baseline methodology for
grid-connected electricity generation from renewable sources”, version 12.3.0, if the project activity is
the installation of a new grid-connected renewable power plant/unit, the baseline scenario is the
following:
Electricity delivered to the grid by the project activity would have otherwise been generated by the
operation of grid-connected power plants 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 baseline scenario consists of the electricity that would have been generated and delivered to the
grid in the absence of the proposed project activity by:
a) Other plants currently connected to the SEIN, and
b) New additions to the system
The SEIN (National Interconnected Power Grid of Peru) had a total effective capacity equal to 6
463.79 MW in 2010, of which 47.93% was hydroelectric power generation and 52.07% was
thermal generation. In 2010 the total national power generation was 32 426.83 GWh, of which
58.48% was based on hydroelectric plants and 41.52% from thermal power plants.
2006 2007 2008 2009 2010

Total Effective Capacity (MW) 4800.15 5152.38 5147.48 5848.34 6463.79
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Share by Generation Technology

Coal 2.92% 2.75% 2.76% 2.43% 2.20%
Diesel/Residual Fuel oil 14.43% 12.62% 12.30% 11.54% 8.47%
Natural Gas 24.52% 30.20% 30.24% 37.15% 41.09%
Hydroelectric 58.10% 54.43% 54.70% 48.88% 47.93%
Others 0.00% 0.00% 0.00% 0.00% 0.31%
Table 2: Historical effective capacity per generation technology. Source: Operational Statistics “Estadística de Operaciones” 2010, 2009, 2008,
2007 and 2006 available on http://www.coes.org.pe/wcoes/inicio.aspx
2006 2007 2008 2009 2010

Total Power Generation (GWh) 24762.78 27254.93 29558.71 29807.25 32426.83
Share by Generation Technology
Coal 3.56% 3.08% 3.08% 3.12% 3.29%
Diesel/Residual Fuel oil 3.65% 1.85% 4.47% 2.88% 2.69%
Natural Gas 17.40% 26.87% 31.53% 31.09% 35.30%
Hydroelectric 75.40% 68.20% 60.93% 62.91% 58.48%
Others 0.00% 0.00% 0.00% 0.01% 0.24%
Table 3: Historical power generation per technology. Source: Operational Statistics “Estadística de Operaciones” 2010, 2009, 2008, 2007 and
2006 available on http://www.coes.org.pe/wcoes/inicio.aspx
In terms of adding new energy to the system, the 2010 Annual Memory specified that Peru’s installed
744.7 MW of additional power capacity in 2010 from which 68% is of thermal power plants and the 32%
of hydroelectric power units. As it can be seen in the tables above the electricity supply comes mainly
from hydroelectric sources (more than 58%) and the rest from thermal power plants. However, it can also
be observed that the production and installed capacity share of hydropower has been decreasing in 2006
the hydropower generation share was of 75.40% and in 2010 it decreased to a level of 58.48%. This
situation clearly justifies that the power requirements of Peru have been increasing year by year and more
thermal power have been built (specially natural gas power plants) in order to cover the power demand.
Until 1992, all planning, investments and operation of the Peruvian power sector were
exclusively under the control and authority of the state. Following the issuance of the Law of
Electric Concessions in 1992, state-owned enterprises were privatized and investments in new
power generation plants and transmission systems became the domain of private companies.
The Law sets forth the norms of operation of the interconnected electric systems, for which an
autonomous entity named Committee of Economic Operation of the Electric System (COES)
was created.
COES is made up of the shareholders of generation companies, the main transmission system,
the distribution companies and the consumers. COES is responsible for the coordination of the
SEIN system operation at minimum cost, guarantee in the security of the electric power supply
and the best use of energy resources.
The new regulatory model proposes private initiatives of new investment in power generation.
However, there are a number of circumstances, which determine that new generation capacity
especially that installed by newcomers, is predominantly thermoelectric.
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The traditional electrical energy source in Peru had been hydropower. However, since 1998, as
a result of the discovery of the substantial gas fields of Camisea5, government policy supporting
exploitation of the natural gas deposits has caused a shift in the overall trajectory for the
Peruvian electricity sector. In support of the current and expected annual electricity demand
growth rates of over 10%, natural gas has become the preferred choice for power generation in
Peru.
Regarding the policies and circumstances that promote the support of the realistic and credible
alternative of natural gas power plants have been effective and confirmed. The natural gas of
Camisea has been operational since August 2004 and most of the new additions have been
natural gas thermal plants. Figures 2 and 3 show the evolving share of the natural gas
participation in the SEIN.
Figure 2: Evolution of Energy Generation in the SEIN per Source. Source: Operational Statistics “Estadística de Operaciones” 2010
available on http://www.coes.org.pe/wcoes/inicio.aspx
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Figure 3: Energy Generation Share in the SEIN per Source. Source: Operational Statistics “Estadística de Operaciones” 2010 available on
http://www.coes.org.pe/wcoes/inicio.aspx
Up to today they are no wind power sources in the national electricity system. Therefore, the proposed
project activity will help to promote the development of wind energy sources for power generation and
also will reduce anthropogenic GHG emissions by supplying zero GHG emission power, which will
displace conventional electricity generation. Based on official statistics, it is possible to see that the
electricity that would have to be generated in the absence of the project would from the current fuel mix
of the grid including fossil fuel power plants.
In the absence of the Project, GHG emissions are not likely to be reduced due to prohibitive
barriers faced by wind power plant developers in Peru, and the existence of other conventional
alternatives (i.e. natural gas power plants) for power generation that are financially more
attractive.
B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered CDM project activity (assessment
and demonstration of additionality):
>>
The project developers knew about the relevance for the project activity of the CDM consideration since
its conception. A time line indicating the main milestones in the project implementation and CDM
consideration is presented below:
Date Event
2008 – January Several activities related to the preliminary analysis of the project activity were
2010 performed, such as:
• Installation of the wind measurement tower
• Connection studies
• Wind turbines evaluation
• Transportation routes studies
• Wind studies.
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04/01/2010 Pre-feasibility Study for the project activity prepared by SISENER INGENIEROS,
S.L.
26/01/2010 Signature of the PPA between Energia Eólica S.A. and the Energy & Mine Ministry
(This is considered the date of the project investment decision)
25/03/2010 The Prior CDM Consideration was sent to the UNFCCC
01/06/2010 Environmental Impact Assessment Report for Talara Wind Farm prepared by Pacific
Protección Integral de Recursos (PIR) S.A.C.
15/12/2010 Issuance of “Certificate for Inexistence of Archaeological Remains” (CIRA) from
the Culture Ministry
19/01/2011 Resolution No 016-2011-MEM/AAE in which the project EIA is approved.
24/02/2011 The Project Idea Note (PIN) of Talara Wind Farm was sent to the Peruvian DNA
(Environmental Minestry) – Leter No 37-2011-DGCCDRH/DVMDERN/MINAM
07/03/2011 Signature of the Transmission Concession Agreement between Energia Eólica S.A.
and the Energy & Mine Ministry
09/03/2011 The Prior CDM Consideration was sent to the Peruvian DNA – Letter No 80-
2011/ENERGIA EOLICA S.A.
03/06/2011 Signature of the Generation Concession Agreement between Energia Eólica S.A.
and the Energy & Mine Ministry
31/05/2011 Signature of CDM Services Contract with external Consultant
22/10/2012 Signature of the Wind Turbines Supply (expected project starting date)
The starting date of the project activity has been considered 22/10/2012, corresponding to the expected
date of the signing of the Wind Turbines Supply Contract, as is shown above in the project timeline. As
the signature of the Wind Turbines Supply Contract will represent the highest capital expenditures related
to the project activity (more than 70% from the total investment) this date can be considered as the project
starting date, as defined in the CDM Glossary of terms “The starting date of a CDM project activity is the
date at which the implementation or construction or real action of a project activity begins... In light of
the above definition, the start date shall be considered to be the date on which the project participant has
committed to expenditures related to the implementation or related to the construction of the project
activity. This, for example, can be the date on which contracts have been signed for equipment or
construction/operation services required for the project activity...”
Therefore, based on the above it is demonstrated that the CDM project activity has seriously considered
the CDM benefits for the development of the proposed project activity.
The additionality of the project activity is demonstrated and assessed applying the “Tool for the
demonstration and assessment of additionality” (version 06), as stated in ACM0002 version 12.3.0.
The tool provides a step-wise approach to demonstrate and assess additionality. These Steps include:
• Identification of alternatives to the project activity;
• Investment analysis to determine that the proposed project activity is either: 1) not the most
economically or financially attractive, or 2) not economically or financially feasible;
• Barriers analysis; and
• Common practice analysis.
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Step 1: Identification of alternatives to the project activity consistent with current laws and
regulations
Sub-step 1a: Define alternative scenarios to the project activity

Two realistic and credible alternatives were identified as available to the Project participants, which
provide outputs or services comparable with the proposed CDM project activity. These are:
a) The proposed project activity undertaken without being registered as a CDM project activity;
b) Continuation of the current situation, i.e. no project activity undertaken. This would imply that
electricity would be generated by the operation of the grid-connected power plants and new
capacity additions. This business-as-usual scenario is dominated by thermal power plants that
burn fossil fuels in order to operate, therefore producing CO2 emissions to the atmosphere.
Sub-step 1b: Consistency with mandatory laws and regulations
The identified alternatives are in compliance with all applicable legal and regulatory
requirements, including Peru’s Electric Concession Law of 1992, Law 25844 (ECL)1. Several
articles of the ECL imply that the alternatives described above are valid and realistic options,
including:
a) Article 1: Electricity generating activities can be developed by people or legal entities,
whether they are nationals or foreigners. Legal entities, i.e. private companies, should
be incorporated under Peruvian laws;
b) Article 3: A concession is required for the development of power generation projects
using Renewable Energy resources if their installed capacity is greater than 500 kW;
c) Article 6: The concessions and authorizations can be granted by Peru’s Department of
Energy and Mines (MINEM);
d) Article 7: Electricity generating activities that do not require a concession or
authorization can be developed freely provided they comply with technical standards
and adhere to conservation of environmental quality and cultural heritage. The
developer of such activities should inform the MINEM of the project activity and its
technical characteristics;
e) Article 9: The Peruvian government seeks to preserve the environmental quality and
cultural heritage of the country, as well as the rational use of natural resources in the
development of activities related to generation, transmission and distribution of
electricity.
None of the identified alternatives contradicts any legal or regulatory requirement, or poses a
risk to do so in the future.
Step 2: Investment analysis
The purpose of this step is to show that the proposed project activity is economically and financially less
attractive than at least one other alternative, identified in step 1, without the revenue from the sales of
certified emission reductions (CERs). The analysis is in compliance with the “Guidance on the
Assessment of Investment Analysis” (Version 04- EB 61 Annex 13).
Sub-step 2a. Determine appropriate analysis method
1
http://intranet2.minem.gob.pe/web/archivos/dge/publicaciones/compendio/dl25844.pdf
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The project activity generates financial and economic benefits other than CDM related income, so a
simple cost analysis (Option I) cannot be applied. The available alternatives are investment comparison
analysis (Option II) and benchmark analysis (Option III).
As stated in the “Guidance on the Assessment of Investment Analysis” (version 04): “If the proposed
baseline scenario leaves the project participant no other choice than to make an investment to supply the
same (or substitute) products or services, a benchmark analysis is not appropriate and an investment
comparison analysis shall be used. If the alternative to the project activity is the supply of electricity from
a grid this is not to be considered an investment and a benchmark approach is considered appropriate.”
The guidance further states that:
“The benchmark approach is therefore suited to circumstances where the baseline does not require
investment or is outside the direct control of the project developer, i.e. cases where the choice of the
developer is to invest or not to invest.”
This is clearly the case for the proposed project activity. Thus, this justifies the choice of Option III:
Benchmark analysis.
Sub-step 2b. Option III. Benchmark analysis
The indicator that will be used is the project IRR. This is a suitable financial indicator for the
Project and is compared to a benchmark, which is the discount rate that represents the returns
investors or borrowers would normally expect in Peru.
For the benchmark analysis, the project IRR is considered the most suitable indicator for the project type.
The project IRR will be used, since it includes all in and out cash flows.
According to the “Tool for the demonstration and assessment of additionality” (Version 06) several
options/sources are available for the determination of the benchmark value. For the proposed project
activity option d) was used to determine the discount rate and benchmark used for the benchmark
analysis.
(d) Government/official approved benchmark where such benchmarks are used for investment decisions;
A discount rate of 12 % has been selected as a benchmark to evaluate the economic viability of
an investment in the electric sector in Peru according to the national legislation and electric
market operation. The 12% benchmark is a specific discount rate for the electric sector, which has been
determined by MINEM for every energy-related project assessment – Article 79 Electricity Concessions
Law (Decree Law 25844).
The 12% benchmark rate is considered valid and appropriate since it has a legal background and there are
official documents that confirm its use:
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• The Ministry of Economy and Finance issued Decree 015-20072 “Terms of reference for
feasibility studies for rural electrification in Peru” where states that the 12% benchmark should be
used electrification projects which include electric generation projects (both renewable and non-
renewable);
• The Ministry of Environment and the Ministry of Energy and Mines have formally confirmed3
that 12% has being used broadly as a benchmark for the government to evaluate the viability of
investments in the electric sector in Peru;
• Independent studies such as a World Bank study in 20084 (“Economic and Technical feasibility
of Hydropower in Peru”) and a study from the European Union “Wind Energy in Peru”5 confirm
the use of 12% as a benchmark for investment decisions in the sector;
• In addition, the applied benchmark has been used in several CDM registered Peruvian projects
i.e. El Platanal (registration Nº:2426), Santa Cruz I Hydroelectric Power Plant (registration Nº:
2405) and Santa Cruz II Hydroelectric Power Plant (registration Nº: 3337).
Hence, it can be concluded that the chosen benchmark represents an official rate of discount for the
Peruvian electric sector, and has been used widely for investment evaluations by both the private and the
public sectors.
Sub-step 2c. Calculation and comparison of financial indicators

The Internal Rate of Return (IRR) of the proposed project activity was calculated based on the financial
data of the proposed project at the time of the investment decision, using the basic parameters for the
calculation of financial indicators such as the net generation for sale, electricity tariff, capital investment,
operation and maintenance costs, taxes, depreciation, etc . A summary of the basic parameters included in
the benchmark analysis is presented below:
Financial Parameter Value Unit

Project Capacity MW 30.6
Investment USD/MW 1 500 000
Plant Load Factor % 46
Power Generation MWh 1 203 306
Electricity Sale Price USD/MWh 87
Total O&M Cost USD/MWh 35
Tax (IS) % 30
Depreciation % 20
In accordance with the benchmark analysis (Option III), the proposed project will be financially
unattractive if the financial indicators of the proposed project (e.g. project IRR) are lower than the
benchmark rate.
2
http://www.mef.gob.pe/contenidos/inv_publica/docs/normas/normasv/snip/RD_008_anex.pdf
3
http://www.tech4cdm.com/userfiles/20_Aspectos%20tarifarios%20d%20ela%20energia%20eolica%20en%20Peru
%20Rmitma.pdf
4
http://siteresources.worldbank.org/INTPERUINSPANISH/Resources/EnriqueCrousillat_Sesion2.pdf
5
http://www.tech4cdm.com/uploads/documentos/documentos_La_Energia_Eolica_en_Peru_13aed1f1.pdf
page 18
Based on the parameters mentioned above, the Internal Rate of Return (IRR) of the proposed project in
the absence of CDM revenues is substantially lower than the benchmark rate, thus, the proposed project
activity is unattractive without considering CDM revenues. Including CDM revenues, the project is
attractive and above the benchmark.
Table 4: Comparison of the IRR for the proposed project activity

Project IRR without income Project IRR with income
Benchmark
from CERs from CERs
9.86% 13.55% 12.00%
Sub-step 2d. Sensitivity analysis
The purpose of the sensitivity analysis is to examine whether the conclusion regarding the financial
attractiveness is robust to reasonable variations in the critical assumptions. The investment analysis
provides a valid argument in favour of additionality only if it consistently supports (for a realistic range of
assumptions) the conclusion that the project activity is unlikely to be the most financially attractive.
A sensitivity analysis has been applied to the project IRR to explore if in a variation of ± 10% for the key
financial parameters the IRR would reach the benchmark. Four key parameters have been chosen for this
exercise: total investment, O&M costs and power generation. The results are summarized in the following
table.
Parameter -10% Base Case +10%

Investment 11.63% 9.86% 8.37%
O&M costs 10.94% 9.86% 8.76%
Power generation 7.08% 9.86% <12.51%
Table 5: Sensitivity Analysis
The probability of increase or decrease in any of the individual parameters, as shown in the table above, is
considered to be practically zero. Particularly, increasing the energy generation by 10% is not considered
possible, as shown in the wind availability studies available for validation purposes. Additionally any
additional MWh delivered to the grid to those contracted under the PPA would be paid at an uncertain
pool price from SEIN, which is typically between 2-4cUSD/kWh6. Hence the increase of the IRR due to a
10% increment on the power generation will always be lower than 12.51%, as the marginal amount of
electricity generated will be paid at a significant lower price than the one defined in the PPA for the
contracted amount of electricity. Therefore, considering the impossibility of reaching and exceeding the
IRR benchmark, it can be concluded that the Project is not financially attractive for private investors, and
requires CDM revenues from the sale of CERs to become feasible.
In conclusion, the sensitivity analysis conducted above confirms that the Project is not financially
attractive and its successful implementation requires CDM registration. As a result, the Project is
considered additional under Step 2.
6
Pool prices from SEIN can be seen at
http://www.coes.org.pe/DAtaWeb3/2012/STR/valweb/marzo/CmargCMGM032012.pdf
page 19
Step 3: Barrier Analysis
According to the “Tool for the demonstration and assessment of additionality” (Version 06) if after the
sensitivity analysis it is concluded that the proposed CDM project activity is unlikely to be
financially/economically attractive, then proceed to Step 4 (Common practice analysis). The tool further
states that in this case, Step 3 (Barrier analysis) is optional. Thus, this step is not being applied.
Step 4: Common practice analysis
Sub-step 4a: Analyze other activities similar to the proposed project activity:
The tool to Demonstration and assessment of additionality (version 06) proposes four steps to determine
if the proposed project activity is a common practice.
Step 1: Calculate applicable output range as +/-50% of the design output or capacity of the proposed
project activity.
Hence, considering the project activity installed capacity of 30.6 MW.
The output Range of the design capacity is 15.3 MW – 45.9 MW
Step 2: In the applicable geographical area, identify all plants that deliver the same output or capacity,
within the applicable output range calculated in Step 1, as the proposed project activity and have started
commercial operation before the start date of the project. Note their number Nall. Registered CDM
project activities and project activities undergoing validation shall not be included in this step.
The following table shows all plants that deliver the same ouput or capacity in the applicable
geographical are (which is the entire country of Peru)
Power Plant Installed Capacity (MW) Technology CDM project activity?

PARAMONGA 23.00 THERMAL Yes
YANANGO 42.84 HYDRO No
HUAMPANI 31.36 HYDRO No
CHICLAYO OESTE 26.68 THERMAL No
CHIMBOTE 20.96 THERMAL No
PIURA 39.91 THERMAL No
ARICOTA I 23.80 HYDRO No
INDEPENDENCIA 22.92 THERMAL No
TUMBES 18.68 THERMAL No
YARINACOCHA 25.36 THERMAL No
ORQUENDO 31.00 THERMAL No
CAHUA 43.60 HYDRO No
GALLITO CIEGO 34.00 HYDRO No
page 20
HUANCHOR 18.36 HYDRO No
Based on the above Nall = 13
Step 3: Within plants identified in Step 2, identify those that apply technologies different that the
technology applied in the proposed project activity. Note their number Ndiff.
Power Plant Installed Capacity (MW) Technology Different Technology?

YANANGO 42.84 HYDRO Yes
HUAMPANI 31.36 HYDRO Yes
CHICLAYO OESTE 26.68 THERMAL Yes
CHIMBOTE 20.96 THERMAL Yes
PIURA 39.91 THERMAL Yes
ARICOTA I 23.80 HYDRO Yes
INDEPENDENCIA 22.92 THERMAL Yes
TUMBES 18.68 THERMAL Yes
YARINACOCHA 25.36 THERMAL Yes
ORQUENDO 31.00 THERMAL Yes
CAHUA 43.60 HYDRO Yes
GALLITO CIEGO 34.00 HYDRO Yes
HUANCHOR 18.36 HYDRO Yes
Based on the above Ndiff = 13
Step 4: Calculate factor F=1-Ndiff/Nall representing the share of plants using technology similar to the
technology used in the proposed project activity in all plants that deliver the same output or capacity as
the proposed project activity.
The results are shown below:
F = 1-Ndiff/Nall Nall - Ndiff

F = 1-13/13 Nall - Ndiff = 13-13
F=0 Nall - Ndiff = 0
According to the tool to Demonstration and assessment of additionality (version 06) 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. In the case of the proposed project activity the factor F is 0 which
is lower than 0.2 and Nall-Ndiff is 0 which is lower than 3. Therefore, the proposed project is not common
practice.
page 21
At the moment, there are no wind energy projects operating in the SEIN. At a national level, the project
would be one of the first wind farm projects and dispatch electricity to the SEIN. The prevailing practice
is based on thermal and hydroelectric generation.
Sub-step 4b: Discuss any similar options that are occurring
As stated in Sub-step 4a similar activities are not widely observed or commonly carried out since there
are essential distinctions (fundamental and verifiable) between them and the proposed project activity..
Currently there are no wind farms projects in operation in the SEIN.
As a result of applying the “Tool for demonstration and assessment of additionality” ver. 06 it is
concluded that based on conservative approaches and assumptions the proposed project activity “Talara
Wind Farm” fulfills all the additionality requirements demonstrating that the CDM registration is required
and fundamental for its implementation.
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
The procedures to determine the emission reductions attributable to the Project activity are described
below, according to the selected approved methodology ACM0002 v.12.3.0 "Consolidated baseline
methodology for grid-connected electricity generation from renewable sources".
Project emissions
According to ACM0002 version 12.3.0 project emissions (PEy) for wind farms are zero.
Then, PE y = 0
Baseline emissions
Baseline emissions include only CO2 emissions from electricity generation in fossil fuel fired power
plants that are displaced due to the project activity. The methodology assumes that all project electricity
generation 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:
BE y = EGPJ , y × EFgrid , CM , y (Equation 6, ACM0002 v.12.3.0)
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)
page 22
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 02.2.1, (tCO2/MWh)
Calculation of EGPJ,y
If the project activity is the installation of a new grid-connected renewable power plant/unit at a site
where no renewable power plant was operated prior to the implementation of the project activity
(Greenfield plant), then:
EGPJ , y = EG facility , y (Equation 7, ACM0002 v.12.3.0)
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)
Calculation of the combined margin CO2 emission factor for grid connected power generation in year y
(EFgrid,CM,y)
According to methodology ACM0002 version 12.3.0, EFgrid,CM,y is calculated using the latest version of
the “Tool to calculate the emission factor for an electricity system” (version 02.2.1).
The combined margin emission factor (EFCM,y) consists of the weighted average of the Operating Margin
emission factor (EFOM,y) and the Build Margin emission factor (EFBM,y), as detailed in below.
According to the “Tool to calculate the emission factor for an electricity system” version 02.2.1, project
participants shall apply the following six steps:
• 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 emission factor.
• STEP 6. Calculate the combined margin (CM) emission factor.
Step 1: Identify the relevant electricity systems

For determining the electricity emission factors, identify the relevant project electricity system.
Similarly, identify any connected electricity system.

page 23
The relevant electricity system for the proposed project activity is the National Interconnected Electricity
System of Peru (SEIN).
Step 2: Choose whether to include off-grid power plants in the project electricity system
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.
Since information from power generation is available for grid connected power plants and the dispatch
data analysis for the calculation of the EFgrid,OM,y is used, in order to calculate the operating margin and
build margin emission factor only grid power plants are included in the calculation. Hence, option I is
chosen.
Step 3: Select a method to determine the operating margin (OM)

The calculation of the operating margin emission factor (EFgrid,OM,y) is based on option (c) of the “Tool to
calculate the emission factor for an electricity system” version 02.2.1: Dispatch data analysis OM.
The Dispatch data analysis OM method involves the power units that are actually dispatched at the
margin during each hour h where the project will be displacing electricity. Public official information is
available for the Peruvian power units (COES) and this option that captures variations in the electric
market is considered the best option.
This approach is not applicable to historical data and, thus, requires annual monitoring of EFgrid,OM,y. The
emission factor will be calculated ex post, determined for the year in which the project activity displaces
grid electricity, and will be updated annually during monitoring.
Step 4: Calculate the operating margin emission factor according to the selected method
(c) Dispatch data analysis OM
The dispatch data analysis OM emission factor (EFgrid,OM-DD,y) is determined based on the grid power units
that are actually dispatched at the margin during each hour h where the project is displacing grid
electricity.
Since EFgrid,OM-DD,y is not applicable to historical data and, thus, must be calculated ex post and adjusted
on an annual basis, in order to estimate ex ante emission reductions, historical data has been applied to
calculate an ex ante EFgrid,OM-DD,y , which is necessary for the ex ante estimation of BEy
The emission factor is calculated as follows:
∑ EG Pj , h
× EFEL , DD , h
EFgrid , OM − DD , y = h
EGPj , y
(Equation 10, “Tool to calculate the emission factor for an electricity system”, version 02.2.1)
page 24
Where:
EFgrid,OM-DD,y = Dispatch data analysis operating margin CO2 emission factor in year y (tCO2/MWh)
EGPJ,h = Electricity displaced by the project activity in hour h of year y (MWh)
EFEL,DD,h = CO2 emission factor for grid power units in the top of the dispatch order in hour h in
year y (tCO2/MWh)
EGPJ,y = Total electricity displaced by the project activity in year y (MWh)
h = Hours in year y in which the project activity is displacing grid electricity
y = Year in which the project activity is displacing grid electricity
Since hourly fuel consumption data is not available, the hourly emissions factor is determined based on
the energy efficiency of the power unit and the fuel type used, as follows
∑ EG × EF n, h EL , n , y
EFEL , DD , h = n
∑ EG n
n,h
Where:
EFEL,DD,h = CO2 emission factor for grid power units in the top of the dispatch order in hour h in year y
(tCO2/MWh)
EGn,h = Electricity generated and delivered to the grid by grid power unit n in hour h (MWh)
EFEL,n,yy = CO2 emission factor of grid power unit, n in year, y (tCO2/MWh)
n = Grid power units in the top of the dispatch (as defined below)
h = Hours in year y in which the project activity is displacing grid electricity
y = Year in which the project activity is displacing grid electricity
The CO2 emission factor of each power unit n (EFEL,n,y = EFEL,m,y) is determined as per the guidance in step
4 (a) for the simple operating margin using the option A2, as follows:
EFCO 2 , n ,i , y ⋅ 3.6
EFEL , n , y =
η n, y
Where:
EFEL,n,y = CO2 emission factor of power unit n in year y (tCO2/MWh).
EFCO2,n,i,y = Average CO2 emission factor of fuel type i used in power unit n in year y (tCO2/TJ).
ηn,y = Average net energy conversion efficiency of power unit n in year y (ratio).
page 25
m = All power units serving the grid in year y except low-cost/must-run power units.
y = Applicable year during monitoring (ex post basis).
To determine the set of grid power units n that are in the top of the dispatch, the following steps are
applied:
i. At each hour h, each grid power unit’s electricity generation is stacked using the merit order of
the grid.
ii. The group of grid power units n in the dispatch margin includes the units in the top x% of total
electricity dispatched in the hour h, where x% is equal to the greater of either:
a. 10%; or
b. The quantity of electricity displaced by the project activity during hour h divided by the
total electricity generation by grid power plants during that hour h (%).
Step 5: Calculate the build margin (BM) emission factor

In terms of vintage of data, the project participant has chosen option 2 of the “Tool to calculate the
emission factor for an electricity system” (version 02.2.1):
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.
The sample group of power units m used to calculate the build margin is determined as per the procedure
presented in the “Tool to calculate the emission factor for an electricity system” (version 02.2.1),
consistent with the data vintage selected above, as follows:
a) Identify the set of five power units, excluding power units registered as CDM project activities, that
started to supply electricity to the grid most recently (SET5-units) and determine their annual
electricity generation (AEGSET-5-units, in MWh);
b) Determine the annual electricity generation of the project electricity system, excluding power units
registered as CDM project activities (AEGtotal, in MWh). Identify the set of power units, excluding
power units registered as CDM project activities, that started to supply electricity to the grid most
recently and that comprise 20% of AEGtotal (if 20% falls on part of the generation of a unit, the
generation of that unit is fully included in the calculation) (SET≥20%) and determine their annual
electricity generation (AEGSET-≥20%, in MWh);
c) From SET5-units and SET≥20% select the set of power units that comprises the larger annual electricity
generation (SETsample);
Identify the date when the power units in SETsample started to supply electricity to the grid. If none
of the power units in SETsample started to supply electricity to the grid more than 10 years ago, then
use SETsample to calculate the build margin. In this case ignore steps (d), (e) and (f).
Otherwise:
page 26
d) Exclude from SETsample the power units, which started to supply electricity to the grid more than 10
years ago. Include in that set the power units registered as CDM project activity, starting with
power units that started to supply electricity to the grid most recently, until the electricity
generation of the new set comprises 20% of the annual electricity generation of the project
electricity system (if 20% falls on part of the generation of a unit, the generation of that unit is fully
included in the calculation) to the extent is possible. Determine for the resulting set (SETsample-CDM)
the annual electricity generation (AEGSET-sample-CDM, in MWh);
If the annual electricity generation of that set is comprises at least 20% of the annual electricity
generation of the project electricity system (i.e. AEGSET-sample-CDM ≥ 0.2 × AEGtotal), then use the
sample group SETsample-CDM to calculate the build margin. Ignore steps (e) and (f).
Otherwise:
e) Include in the sample group SETsample-CDM the power units that started to supply electricity to the
grid more than 10 years ago until the electricity generation of the new set comprises 20% of the
annual electricity generation of the project electricity system (if 20% falls on part of the generation
of a unit, the generation of that unit is fully included in the calculation);
f) The sample group of power units m used to calculate the build margin is the resulting set (SETsample-
CDM->10yrs).
The build margin emissions factor (EFgrid,BM,y) 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. EFgrid,BM,y is calculated applying equation 13 of the “Tool to calculate the emission factor for an
electricity system” version 02.2.1, as follows:
∑ EG × EF
m, y EL , m , y
EFgrid , BM , y = m
∑ 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
As explained above, the CO2 emission factor of each power unit m (EFEL,n,y = EFEL,m,y) is determined as per
the guidance in step 4 (a) for the simple operating margin using the option A2
Step 6: Calculate the combined margin emissions factor

page 27
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.
According to the “Tool to calculate the emission factor for an electricity system”, version 02.2.1, the
weighted average CM method (option A) should be used as the preferred option. Thus, option A is
chosen.
(a) Weighted average CM
The combined margin emissions factor is calculated as follows:
EFgrid ,CM , y = EFgrid , OM , y × wOM + EFgrid , BM , y × w BM
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)
wOM = Weighting of operating margin emissions factor (%)
wBM = Weighting of build margin emissions factor (%)
According to the tool, wind and solar power generation project activities should apply the following
values of wOM and wBM for the first crediting period and for subsequent crediting periods:
wOM = 0.75 and wBM = 0.25
Leakage
According to the methodology ACM0002 v.12.3.0, no leakage emissions are considered.
Emission reductions
Emission reductions are calculated as follows:
ERy = BE y − PE y (Equation 11, ACM0002 v.12.3.0)
Where:
ERy = Emission reductions in year y (tCO2e/yr)
BEy = Baseline emissions in year y (tCO2e/yr)
PEy = Project emissions in year y (tCO2e/yr)
page 28
B.6.2. Data and parameters that are available at validation:
No data and parameters available. All parameters will be monitored ex-post during the entire crediting
period.
B.6.3. Ex-ante calculation of emission reductions:
According to the selected approved methodology (ACM0002 v.12.3.0), the results of applying the steps
and formulas to determine the emission reductions attributable to the Project activity are:
Project emissions
PE y = 0
Leakage
According to the methodology ACM0002 v.12.3.0, no leakage emissions are considered.
Baseline emissions
Baseline emissions are calculated applying equation 6 of ACM0002 version 12.3.0:
BE y = EGPJ , y × EFgrid , CM , y
Where EGPJ , y = EG facility , y
Since at the time of presenting this PDD for validation the Talara Wind Farm did not started operation,
the value of EGPJ,y was estimated ex ante based on the wind farm installed capacity and the estimated
plant load factor.
The ex ante value of EGPJ,y is 123 306 MWh/yr.
This value is estimated considering a capacity of 30.6 MW and a plant load factor of 46%. Thus:
EG facility , y = 30.6 MW × 0.46 × 8760 h = 123306 MWh

y y
As detailed in section B.6.1 of this PDD, the combined margin grid emission factor for year y (EFgrid,CM,y)
is calculated applying the dispatch analysis method, as described in the following paragraphs.
Step 1: Identify the relevant electricity systems

The relevant electricity system for the propose project activity is the National Interconnected Electricity
System of Peru (SEIN).
page 29
Step 2: Choose whether to include off-grid power plants in the project electricity system
For the proposed project activity only grid power plants are included in the calculation.
Step 3: Select a method to determine the operating margin (OM)

The method selected for the calculation of the operating margin emission factor (EFgrid,OM,y) is option (c)
of the “Tool to calculate the emission factor for an electricity system” version 02.2.1: Dispatch data
analysis OM. This approach is not applicable to historical data and, thus, requires annual monitoring of
EFgrid,OM,y. The emission factor will be calculated ex post, determined for the year in which the project
activity displaces grid electricity, and will be updated annually during monitoring.
Step 4: Calculate the operating margin emission factor according to the selected method (c) Dispatch
data analysis OM
Since EFgrid,OM-DD,y is not applicable to historical data and, thus, must be calculated ex post and adjusted
on an annual basis, in order to estimate ex ante emission reductions, historical data has been applied to
calculate an ex ante EFgrid,OM-DD,y.. Data for one year prior to the submission of this CDM-PDD has been
collected and applied for the calculation of the EFgrid,OM-DD,y and the EFgrid,BM,y. The period evaluated was
January 2010 to December 2010.
EFgrid,OM-DD,y was calculated applying equation 10 of the “Tool to calculate the emission factor for an
electricity system” (version 02.2.1), as follows:
∑ EG Pj , h
× EFEL , DD , h
EFgrid , OM − DD , y = h
EGPj , y
The electricity displaced by the project activity in hour h of year y (EGPJ,h ) was estimated based on the
estimated annual power generation of the wind farm. The applied value is 14.08 MWh.
The calculation of EFgrid,OM-DD,y is presented in a detailed spreadsheet which will be provided to the DOE.
The results are not presented in this PDD since 8760 values were calculated.
The CO2 emission factor for grid power units in the top of the dispatch order in hour h in year y
(EFEL,DD,h) is determined as applying equation 12 of the “Tool to calculate the emission factor for an
electricity system” (version 02.2.0), as follows:
∑ EG × EF n, h EL , n , y
EFEL , DD , h = n
∑ EG n
n,h
Since hourly fuel consumption data is not available, the hourly emissions factor is determined based on
the energy efficiency of the power unit and the fuel type used, as follows
The data of the type of fuel used and the energy efficiency of each power unit was taken from the COES
Annual Statistic Report 2010 (http://www.coes.org.pe/wcoes/coes/estadistica/estadanual.asp).
page 30
Since there are no publicly available country specific CO2 emission factors of fossil fuels, the CO2
emission factor of each fossil fuel is estimated based on the 2006 IPCC Guidelines for National
Greenhouse Gas Inventories, as detailed in section B.7.1.
The grid system dispatch order of operation and the electricity generated and delivered to the grid by each
grid power unit in the system during each hour h that the project activity is displacing electricity, is
obtained from the COES operation reports, publicly available at the COES website7.
To determine the set of grid power units n that are in the top of the dispatch, the following steps are
applied:
i. At each hour h, each grid power unit’s electricity generation is stacked using the merit order of
the grid.
ii. The group of grid power units n in the dispatch margin includes the units in the top x% of total
electricity dispatched in the hour h, where x% is equal to the greater of either:
a. 10%; or
b. The quantity of electricity displaced by the project activity during hour h divided by the
total electricity generation by grid power plants during that hour h (%).
For the ex ante estimation of emission reductions from the proposed project activity, the information
required for the calculation of the dispatch data analysis OM emission factor (EFgrid,OM-DD,y) was gathered
and processed by a Calculation Spreadsheet developed by the CDM consultant, which applies the
equations presented above. During the implementation of the project activity, the calculation of EFgrid,OM-
DD,y will be done using the same calculation spreadsheet and if required a new spreadsheet might be
developed which will be subject to revision during the future CDM verifications.
Hourly dispatch data from the plants connected to the SEIN, their merit order and energy efficiency is
publicly available at the COES website (http://www.coes.org.pe). For every day and on an hourly basis,
the spreadsheet calculates the accumulated electricity generation of the grid power units in the top of the
dispatch order, until 10% of the total SEIN generation is reached. Then, the hourly emission factor of the
grid power units in the top of the dispatch order is obtained applying equation 12, by dividing the CO2
emissions (calculated based on the energy efficiency and fuel type of the group of n plants, and the fossil
fuel emission factors) by the electricity generation of the group of n plants.
In order to obtain the dispatch data analysis OM emission factor (EFgrid,OM-DD,y), the hourly emission
factor of the grid power units in the top of the dispatch order is then multiplied by the hourly electricity
generation of the proposed project activity. The sum of this product for a whole year is divided by the net
electricity generation produced and fed into the grid by the project activity for a whole year, according to
equation 10 of the “Tool to calculate the emission factor for an electricity system” (version 02.2.1).
The estimated ex ante EFgrid,OM-DD,y is 0.74952 tCO2e/MWh.
Step 5: Calculate the build margin (BM) emission factor
7
http://www.coes.org.pe/wcoes/coes/estadistica/estadanual.asp (COES Annual Statist Report 2010. Chart No 4.7)
page 31
The sample group of power units m used to calculate the build margin was determined as per the
procedure presented in the “Tool to calculate the emission factor for an electricity system” (version
02.2.1). The following steps have been taken:
a) The set of five power units, excluding power units registered as CDM project activities, that started
to supply electricity to the grid most recently (SET5-units) has been identified and their annual
electricity generation (AEGSET-5-units, in MWh) has been determined;
b) The annual electricity generation of the project electricity system, excluding power units registered
as CDM project activities (AEGtotal, in MWh) has been determined. In addition the set of power
units, excluding power units registered as CDM project activities, that started to supply electricity
to the grid most recently and that comprise 20% of AEGtotal (SET≥20%) has been identified and their
annual electricity generation (AEGSET-≥20%, in MWh) has been determined;
c) From SET5-units and SET≥20% the set of power units that comprises the larger annual electricity
generation (SETsample) has been selected.
The sample group of power units m used to calculate the build margin (SETsample) consists of the set
of power units, excluding power units registered as CDM project activities, that started to supply
electricity to the grid most recently and that comprise 20% of AEGtotal (SET≥20%). This set of power
units comprises a larger annual generation than the set of five power units that have been built most
recently.
The date when the power units in SETsample started to supply electricity to the grid has been
identified.
Steps (d), (e) and (f) are ignored since none of the power units in SETsample started to supply electricity to
the grid more than 10 years ago.
The following table shows the set of power units used to calculate the build margin. The selection is
based on the available information at the time of the CDM-PDD submission to the DOE for validation.
Table 6: Set of power units included in the calculation of the Build Margin (SETsample)
Most recent
Date of Entry Accumulated
Power Plant Plant Type year generation %
To SEIN Generation (GWh)
(GWh)
PISCO TG1 Sep‐10 Natural Gas turbine 3.60 3.60 0.01%
PISCO TG2 Sep‐10 Natural Gas turbine 10.20 13.80 0.04%
INDEPENDENCIA Sep‐10 Diesel 2 5.27 19.07 0.06%
RONCADOR Apr‐10 Hydro 7.65 26.71 0.08%
LAS FLORES Apr‐10 Natural Gas turbine 13.08 39.79 0.12%
KALLPA TG3 Feb‐10 Natural Gas turbine 1078.30 1118.10 3.45%
PARAMONGA Jan‐10 Biomass 77.48 1195.57 3.69%
SANTA ROSA TG8 Sep‐09 Natural Gas turbine 763.86 1959.44 6.04%
CHILCA1 TG3 Aug‐09 Natural Gas turbine 930.46 2889.90 8.91%
KALLPA TG2 Jun‐09 Natural Gas turbine 1252.34 4142.23 12.77%
TRUJILLO NORTE Jun‐09 Diesel 2 / Residual 120.97 4263.20 13.15%
page 32
OQUENDO Mar‐09 Natural Gas turbine 203.60 4466.80 13.78%

CHILCA1 TG2 Jul‐07 Natural Gas Turbine 406.19 4872.99 15.03%
KALLPA TG1 Jul‐07 Natural Gas Turbine 880.43 5753.42 17.74%
CHILCA1 TG1 Dec‐06 Natural Gas Turbine 1092.95 6846.37 21.11%
The build margin emissions factor (EFgrid,BM,y) is the generation-weighted average emission factor
(tCO2/MWh) of all power units m during the most recent year y for which power generation data is
available. EFgrid,BM,y is calculated applying equation 13 of the “Tool to calculate the emission factor for
an electricity system” version 02.2.1, as follows:
∑ EG × EF
m, y EL , m , y
EFgrid , BM , y = m
∑ EG
m
m, y
The CO2 emission factor of each power unit m (EFEL,m,y) is determined based on the total net electricity
generation of the m the power units included in the build margin, the fuel types and energy efficiency of
the power unit; using for y the most recent historical year for which power generation data is available.
Since there are no publicly available country specific CO2 emission factors of fossil fuels, the CO2
emission factor of each fossil fuel is estimated based on the 2006 IPCC Guidelines for National
Greenhouse Gas Inventories, as detailed in section B.7.1.
The electricity generated and delivered to the grid by each grid power unit in the system for one year was
obtained from the COES operation reports, publicly available at the COES website8. Data from 2010 has
been analyzed.
Table 7: Estimation of the CO2 emission factor of the power plants included in the Build Margin
SETsample (SET≥20%) EGm,y (MWh) ηm,y (%) EFCO2,m,i,y (KgCO2/Tj) EFEL,m,y (tCO2/MWh)

PISCO TG1 3602.68 27% 54300 0.72400
PISCO TG2 10195.67 27% 54300 0.72400
INDEPENDENCIA 5267.44 39% 72600 0.67015
RONCADOR 7646.19 NA 0 0.00000
LAS FLORES 13082.49 34% 54300 0.57494
KALLPA TG3 1078303.49 34% 54300 0.57494
PARAMONGA 77475.38 NA 0 0.00000
SANTA ROSA TG8 763864.22 35% 54300 0.55851
CHILCA1 TG3 930457.59 33% 54300 0.59236
KALLPA TG2 1252339.07 34% 54300 0.57494
OQUENDO 203598.40 34% 54300 0.57494
CHILCA1 TG2 406185.47 35% 54300 0.55851
8
http://www.coes.org.pe/wcoes/inicio.aspx
page 33
KALLPA TG1 880434.62 33% 54300 0.59236

TRUJILLO NORTE 120970.23 38% 72600 0.68779
CHILCA1 TG1 1092946.93 35% 54300 0.55851
Applying equation 13 of the “Tool to calculate the emission factor for an electricity system” version
02.2.1, EFgrid,BM,y = 0.56934 tCO2/MWh
Step 6: Calculate the combined margin emissions factor

As stated in section B.6.1, the calculation of the combined margin (CM) emission factor (EFgrid,CM,y) is
based on method (a) Weighted average CM of the “Tool to calculate the emission factor for an electricity
system”, version 02.2.1.
The combined margin emission factor is calculated as follows:
EFgrid ,CM , y = EFgrid , OM , y × wOM + EFgrid , BM , y × w BM
According to the tool, wind and solar power generation project activities should apply the following
values of wOM and wBM for the first crediting period and for subsequent crediting periods:
wOM = 0.75 and wBM = 0.25
Having EFgrid,BM,y = 0. 56934 tCO2/MWh, and EFgrid,OM,y = 0.74952 tCO2/MWh.
The ex ante estimation of EFgrid,CM,y is 0.70448 tCO2/MWh. This value will be adjusted ex-post on an
annual basis.
Applying equation 6 of ACM0002 version 12.3.0 for the calculation of ex ante baseline emissions and
since PEy and Leakage emissions are 0 the total project emission reductions will be calculated as: ERy =
BEy.
ERy = BEy = EGy x EFgrid,CM,y
ERy = 123 306 MWh/year X 0.70448 tCO2/MWh
ERy = 86 866 tCO2/y
For more detailed information, see section B.6.4.
B.6.4 Summary of the ex-ante estimation of emission reductions:
Project
Activity Leakage
Baseline Emissions Emission Reductions
Year Emissions (tonnes of
(tonnes of CO2e) (tonnes of CO2e)
(tonnes of CO2e)
CO2e)
2013 46 408 0 0 46 408
page 34
2014 86 866 0 0 86 866

2015 86 866 0 0 86 866
2016 86 866 0 0 86 866
2017 86 866 0 0 86 866
2018 86 866 0 0 86 866
2019 86 866 0 0 86 866
2020 40 458 0 0 40 458
Total
(tonnes of 608 063 0 0 608 063
CO2e)
B.7. Application of the monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:
Data / Parameter: EGfacility,h (or EGPJ,h )

Data unit: MWh/h
Quantity of net electricity generation supplied by the project plant/unit to the
Description:
grid in hour h
Source of data to be
Data measured from power meters.
used:
Value of data applied
for the purpose of
calculating expected 14.08 MWh/h (estimated from expected annual electricity generation)
emission reductions in
section B.5
Description of
measurement methods Continuous measurements and monthly recording.
and procedures to be The accuracy of the power meter will be 0.2%
applied:
Electricity meters will be calibrated according to the manufacturer’s
QA/QC procedures to specification. Data collected from the project meter has low uncertainty levels
be applied: and to guarantee its accuracy it will be cross checked with the electricity sales
invoices.
Any comment: Data will be archived at least for two years after crediting period.
Data / Parameter: EGfacility,y (or EGPJ,y )

Data unit: MWh/yr
Quantity of net electricity generation supplied by the project plant/unit to the
Description:
grid in year y
Source of data to be
Data measured from power meters.
used:
for the purpose of 123 306 MWh/yr
calculating expected
page 35
section B.5
Description of
Continuous measurements and monthly recording.
measurement methods
The accuracy of the power meter will be 0.2%
and procedures to be
applied:
Electricity meters will be calibrated according to the manufacturer’s
QA/QC procedures to specification. Data collected from the project meter has low uncertainty levels
be applied: and to guarantee its accuracy it will be cross checked with the electricity sales
invoices.
Any comment: Data will be archived at least for two years after crediting period.
Data / Parameter: EFCO2,i,y and EFCO2,m,i,y

Data unit: tCO2/TJ
Description: CO2 emission factor of fossil fuel type i used in power unit m in year y
Source of data to be IPCC Guidelines for National Greenhouse Gas Inventories, Reference Manual,
used: Volume 2 (2006), chapter 1. Table 1.4. IPCC default values at the lower limit
of the uncertainty at a 95% confidence interval
for the purpose of Fuel Value
calculating expected Coal 87.3 tCO2/TJ
emission reductions in Natural Gas 54.3 tCO2/TJ
section B.5 Diesel Nr. 2 72.6 tCO2/TJ
Residual Fuel Oil 75.5 tCO2/TJ
Description of
measurement methods The values will be reviewed annually for the year y in which the project
and procedures to be activity is displacing grid electricity.
applied:
Since country specific emission factors for fuels are not available 2006 IPCC
default figures will be used.
QA/QC procedures to The values will be reviewed annually for the year y in which the project
be applied: activity is displacing grid electricity.
Any comment:
Data / Parameter: EGm,y and EGn,h

Data unit: MWh
Description: Net electricity generated by power plant/unit m or n in year y or hour h
Source of data to be Official publications from the COES http://www.coes.org.pe/wcoes/inicio.aspx
used:
for the purpose of
calculating expected Please refer to the spreadsheets “EFgrid-DD-OM_Talara”
section B.5
Description of In the case of EGn,h the values will be monitored hourly for each hour h in the
page 36
measurement methods year y in which the project activity is displacing grid electricity.
applied: In the case of EGm,y the values will be monitored annually for the year y in
which the project activity is displacing grid electricity.
Reports will be downloaded from the COES website and processed as part of
the emission factor calculation
Collected data will be archived electronically and be kept at least for 2 years
after the end of the last crediting period.
QA/QC procedures to The COES records present the best available and verifiable information. These
be applied: records are available at the web: http://www.coes.org.pe/wcoes/inicio.aspx
Any comment:
Data / Parameter: n,y and m,y

Data unit: %
Description: Average net energy conversion efficiency of power unit m or n in year y (ratio).
Source of data to be Official publications from the COES http://www.coes.org.pe/wcoes/inicio.aspx
used:
for the purpose of
calculating expected Please refer to the spreadsheets “EFgrid-DD-OM_Talara”
section B.5
Description of Each year this data will be checked with the last available annual report of
measurement methods COES.
applied: Collected data will be archived electronically and be kept at least for 2 years
after the end of the last crediting period.
QA/QC procedures to If the data obtained from the manufacturer, the utility, the dispatch center of
be applied: official records is significantly lower than the default value provided in Annex
1 of the “Tool to calculate the emission factor for an electricity system
v.02.2.1” for the applicable technology, project proponents should assess the
reliability of the values, and provide appropriate justification if deemed
reliable. Otherwise, the default values provided in Annex 1 of the tool shall be
used
Any comment:
Data / Parameter: EFgrid, CM,y

Data unit: tCO2/MWh
Description: Combined margin CO2 emission factor for grid connected power generation in
year y calculated using version 02.2.1 of the “Tool to calculate the emission
factor for an electricity system”.
Source of data to be Calculated as per the “Tool to calculate the emission factor for an electricity
used: system” version 02.2.01
See worksheet: EFgrid-DD-OM_Talara
page 37

for the purpose of
calculating expected 0.70448 tCO2/MWh
section B.5
Description of
measurement methods Calculation as per the “Tool to calculate the emission factor for an electricity
and procedures to be system” (version 02.2.1).
applied:
QA/QC procedures to Collected data will be archived electronically and be kept at least for 2 years
be applied: after the end of the last crediting period.
Any comment:
B.7.2. Description of the monitoring plan:
The monitoring methodology applicable to this project is the approved methodology ACM0002 v.12.3.0,
“Consolidated baseline methodology for grid-connected electricity generation from renewable sources”.
The Monitoring Plan describes the procedures to be followed in order to collect information and auditing
required for the project activity development. This plan is necessary to determine and verify emission
reductions achieved by the project activity.
The purpose of the monitoring plan is to ensure that the required data is accurately monitored and
recorded to enable the calculation of the emission reductions achieved by the project, then before the start
of the crediting period of the project activity, the following procedures and activities will be
implemented:
• To establish and maintain data collection and recording systems.
• Procedure for quality assurance for internal and external data acquisition.
• Procedure for project performance review before submitted for verification.
• Procedure for storing and maintain records (paper and electronic information).
• Identification of training needs to enable operational staff to meet the needs of the project and this
monitoring plan.
• Procedure for corrective actions to improve future monitoring and reporting.
Data gathering and recording
According to methodology ACM0002 (version 12.3.0), the main parameters that need to be monitored
during the operation of the wind farm are:
• EGPJ,y = Quantity of net electricity generation supplied by the project plant/unit to the grid in year
y (MWh/yr), and
• 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 02.2.1).
page 38
Monitoring of electricity supplied by the project to the national interconnected system (SEIN):
As described in section B.7.1, the quantity of net electricity supplied to the grid by the proposed project
activity (EGPJ,h) will be measured by power meters class 0.2. The measurement in the wind farm
substation will follow the same measurement system as the Peruvian electrical system standard.
Figure 4: Monitoring/measurement points of Talara Wind Farm
The net electricity generation, measured at the wind farm substation, will be monitored continuously and
integrated and stored every 15 minutes using electricity meters located at the project site. Electricity
generation data will be aggregated and recorded on a daily basis.
Collected data on the power measurement will be crosschecked against the electricity sales receipts. In
case of deviations exceeding 3% of the monthly generation, the following corrective and preventive
actions will be executed:
• The measurement equipment of the wind farm substation will be checked. If any malfunction is
detected, internal correction procedure shall be executed.
• If no malfunction of the measurement equipment is detected, the grid operator (SEIN) shall be
consulted in order to exclude any malfunctions of their equipment.
Calculation of the Combined Margin grid emission factor of the SEIN:

page 39
The Combined Margin emission factor for the national interconnected system of Peru (EFgrid,CM,y) will be
calculated ex post using dispatch data, and adjusted annually.
The Operating Margin and the Build Margin emission factors will be calculated using a spreadsheet
developed by the project owner, which follows the guidelines detailed in section B.6.3 of this PDD and is
in accordance with the “Tool to calculate the emission factor for an electricity system” (version 02.2.1).
The spreadsheet gathers data on net electricity generation by each power plant/unit n of the SEIN in hour
h (EGn.h), their energy efficiency and the merit order of the SEIN, using reports from the SEIN operations,
and processes this information in order to calculate the hourly dispatch emission factor. These reports are
available on the COES’s website.
Quality Assurance and Quality Control
The quality assurance and quality control procedures for recording, processing and archiving data will be
followed, according to EB rules and requirements, to ensure accurate and consistent data is collected, and
to allow the proper verification of the emission reductions on an annual basis.
The metering equipment used to record the net electricity sold to the grid will be calibrated at least every
two years. The calibration will be carried out by specialized companies or with certified equipment.
Calibration records will be kept by the project owner for verification purposes.
The values on electricity generation by the project activity will be applied according to the measurements
and procedures described in section B.7.1. If there is a failure in the electricity meter, the measurement is
assured by a back up meter located at the project site.
All electronic data will be backed up.
Data Management System and Responsibilities
The monitoring of electricity generation and emission reductions of the project will be carried out by the
project staff as described below. They will be responsible for the maintenance of traceable and updated
records for verification purposes.
• CDM Project Coordinator:

o Responsible for CDM data monitoring and recording activities, and review of calculations on
emission reductions.
o Responsible for communications with CDM parties (DOE, etc.), associates, and miscellaneous
procedures related to CDM project activities
• Monitoring Department
o Responsible for updating the spreadsheet to calculate the emission factor of the electricity
system; gathering information on electricity generation by the project activity, and the
calculation of emission reductions.
o In charge of printing/retrieving data on electricity generation, and reporting to the commercial
department.
page 40
o Responsible for addressing and reporting any condition that could prevent the correct
monitoring or data acquisition.
o Responsible for gathering data on electricity displaced by the project activity every hour and
reporting on any condition that could prevent the monitoring or data acquisition by the control
system.
Managers of the project must maintain credible, transparent, and adequate data estimation, measurement,
collection, and tracking systems to successfully develop and maintain the proper set of information to
undergo an audit for a greenhouse gas (GHG) emission reduction investment. These records and
monitoring systems are needed to subsequently allow a Designated Operational Entity to verify project
performance as part of the verification and certification process. In particular, this process reinforces the
fact that GHG reductions are real and credible to the buyers of the Certified Emission Reductions (CERs).
Training of Monitoring Personnel
All people that participate in the monitoring process for the CDM project will be suitably qualified and
trained in the operation and maintenance of the plant. The training for operating and maintaining the plant
may be provided by the supplier of electro-mechanical and wind turbine equipment as part of the contract
terms with the equipment suppliers or have especial training under the guidance of the project developer.
They will also receive appropriate training in the CDM monitoring requirements, which will include an
overview of the CDM and all elements of the monitoring plan in detail.
Duration of the Monitoring Plan
The Monitoring Plan will be implemented over the 7-year crediting periods of project activity. All data
and evidences collected as part of monitoring will be archived electronically and be kept at least for 2
years after the end of the last crediting period.
B.8. Date of completion of the application of the baseline study and monitoring methodology and
the name of the responsible person(s)/entity(ies):
Date of completion of Baseline Study: 20/10/2011
Name of person/entity determining the baseline: Alfonso Rodríguez Villalba

Email: alfonso.rodriguezvillalba@gmail.com
SECTION C. Duration of the project activity / crediting period
C.1. Duration of the project activity:
C.1.1. Starting date of the project activity:

>>
22/10/2012
(Expected date for the signature of the Wind Turbines supply contract)
page 41
C.1.2. Expected operational lifetime of the project activity:
20 years and 0 month
C.2. Choice of the crediting period and related information:
C.2.1. Renewable crediting period:
C.2.1.1. Starting date of the first crediting period:
20/06/2013 (or date of registration, whichever is later)
C.2.1.2. Length of the first crediting period:
7 years and 0 month
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:

NA
C.2.2.2. Length:
NA
SECTION D. Environmental impacts

>>
D.1. Documentation on the analysis of the environmental impacts, including transboundary

impacts:
>>
The Environmental Impact Assessment (EIA) of the Project was performed in June 2010 and finalized on
January 2011, in accordance with the Peruvian legislation. The approval process was finalized in 2011,
approved by the Ministry of Energy and Mines on 2011/01/19 Resolution No 016-2011-MEM/AAE.
The EIA carried out identified the environmental impacts of the project in order to propose mitigation
measures to minimize these impacts. In general, a wind power generator is an activity which produces
electricity and is more compatible with the environment. This has a favorable environmental aspect due to
the operational characteristics of wind turbines, and further that, is an example of clean energy that don’t
produce effluents into the environment.
In conclusion, the impacts in the environment and habitats during the process of preparation and
construction at the site will not be significant. During the stage of operation of the project activity, the
regeneration of the vegetation will become in a natural way. Also, the advantages that will be obtained by
the project activity exceed the possible negative environmental impacts.
page 42
D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
The construction, operation and closing of the wind farm could generate environmental impacts due to the
activities developed in each stage. Among the possible impacts are:
Construction Stage:
• Alteration of the air quality due to the mobilization of machineries, vehicles and equipment, load
and discharge of aggregate material and material work surplus.
• Increase in the NOx, SOx and CO2 levels in the air due to the increase of the mobilization
machinery, vehicles and equipment
• Change in sound levels due to the mobilization of vehicles, machinery and equipment.
• Impact on the availability of water resources
• Soil contamination due to spills of fuel and oils and inadequate disposition of dangerous and not
dangerous solid residues.
• Displacement of wildlife due to the noise generated by the mobilization machinery, vehicles and
equipment.
• Alteration of the landscape due to the presence of auxiliary facilities, machinery and vehicles.
Operation Stage:
• Soil contamination by possible spill of oils used in the maintenance of machinery.
• Alteration of the landscape for the presence of the wind farm.
• Possible noise pollution.
• Alteration of wildlife habitat (i.e. birds collision) due to project operation.
Closing Stage
• Alteration of the air quality due to the mobilization of machineries, vehicles and equipment, load
and discharge of residues.
• Change in sound levels due to the mobilization of vehicles, machinery and equipment.
• Soil contamination due to spills of fuel and oils.
Hence, in addition to the EIA, an Environmental Management Plan has been developed for the project
activity including several measures to mitigate and minimize the possible impacts from the wind farm on
its surroundings. The programs and plans considered are:
• Environmental Prevention, Mitigation or Control Plan

• Environmental Monitoring Program
• Flora and Fauna Monitoring Program – Construction and operation Phase
• Birds Monitoring Program
• Solid Waste Management Plan
• Reforestation Program
• Explosive management Program
• Archeological Management Program
• Training Program
• Community Relations Plan
page 43
• Contingencies Plan
• Abandon/Closure Plan
SECTION E. Stakeholders’ comments

>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
On October 19th, 2011 Energía Eólica S.A. performed a meeting/workshop with the local stakeholders.
The local stakeholders were invited through invitation letters.
Also additional media as posters and radio announcements were used in order to invite any interested
person to the meeting.
• The stakeholder meeting was announced in the radio during 7 days, from Wednesday 12th
October 2011 to Tuesday 18th October 2011.
• The stakeholders meeting was also announced using big-size posters. Theses posters were placed
in several strategic places such as local municipalities and other public places (restaurants, banks)
of the community.
Around 45 guests from municipal and regional authorities, institutions, associations and other stakeholder
attended the stakeholder meetings. To record all participation, the project developer made a complete
attendance list of all guests. Among the stakeholders that participated in the meeting/workshop are:
Table 8: List of attendees to the stakeholder meeting

Name Company or Institution Position
Piura Regional Government Natural Resources and
Martin López Castillo Environmental Issues Manager
María Castillo Mercedes Talara Province Governor
Mónica Juárez Flero Piura Regional Government Minister
ENACEI‐TALARA Neighbors President
Sra. Janet Guerrero García Board
Culture and Young Submanager
Development of Talara
David Bueno Herrera Municipality
Arturo Rodríguez Cueva Talara Alta Comisary Secretary
Nueva Esperanza‐Talara President
María Montenegro Huertas Neighbors Board
Talara Community Submanager
Nancy Mejía de Galán Participation
Catherine Paucar Gonzales Vaso de Leche Nueva Talara President
9 de Octubre‐Talara Neighbors President
Juan Chira Delgado Board
Cristhian Silva Aguirre Talara Municipality Alderman
page 44
Eduardo Meléndez Talara Municipality Press Chief

Hugo Quiroz Pingo A.A.H.H Jorge Chávez‐Talara President
Figure 5: Stakeholders consultation process.
During the meeting/workshop the PP made a presentation about the project activity and the CDM process,
the main topics discussed were:
• Introduction to renewable energies (i.e. wind projects)
• Talara Wind Farm project description
• Impacts and benefits from the project activity
• Climate Change and the CDM process
In addition to this, questionnaires were provided to all the assistance in order to obtain feedback so as any
additional comment or question regarding the project activity.
A stakeholders meeting report including the evidences of the questionnaires, invitation letters and other
resources used for the stakeholders’ consultation process has been prepared and will be provided to the
DOE.
E.2. Summary of the comments received:

>>
During the stakeholders’ meetings, a list of attendance was filled out and a questionnaire was delivered
and filled out by each stakeholder.
The following questions were included in the questionnaires:

1. How long you have been living in the zone?
2. How far do you live from the project site?
3. Do you think that it is important to implement the proposed CDM project activity of wind energy
generation?
4. Do you agree in the implementation of the proposed CDM project activity?
5. Do you think that the project will bring benefits to the community?
6. Do you have any comments about the project activity?
7. Do you have any suggestion for the project activity?
page 45
In general, the comments obtained regarding the project presentation were positive. Some notable aspects
mentioned were the contribution of this type of project towards improving the interest of other industries
in global warming. Most of the participants expressed their awareness of projects that reduce GHG
emissions. The project’s contribution to greenhouse gas mitigation was clearly understood.
E.3. Report on how due account was taken of any comments received:
>>
Comments received by local stakeholders were positive about the implementation of the project activity.
The comments were in line with the main social and environmental concerns of the local community.
All questions of stakeholders were answered and clarified directly by Energia Eólica S.A. during the
meeting.
page 46
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: Energía Eólica S.A.

Street/P.O.Box: No 348 Camino Real Avenue, Torre El Pilar. Office 701-702.
City: San Isidro
State/Region: Lima
Country: Peru
Telephone: +511 441 0859
FAX: +511 422 4180
Represented by: Juan Rodolfo Wiesner Rico
Title: Legal Representative
Salutation: Mr.
Last name: Weisner Rico
First name: Juan Rodolfo
Direct FAX: +511 441 0859
Direct tel: +511 422 4180
e-mail: jrwiesner@inmobiliari.com.pe
mdl@eolica.com.pe
Organization: Gazprom Marketing and Trading Limited .

Street/P.O.Box: 20 Triton Street
City: London
State/Region: London
Postfix/ZIP: NW1 3BF
Country: United Kingdom
Name of contact Mr. Ignacio Gistau
person
Department: Head of Trading & Portfolio Clean Energy
FAX: +44 (0) 207 756 9740
Telephone: +44 (0) 207 756 0052
e-mail: Ignacio.gistau@gazprom-mt.com
global_carbon@gazprom-mt.com
page 47
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
No public funding is available for the project activity.

page 48
Annex 3
BASELINE INFORMATION
Baseline information is included in sections B.6.1, B.6.2 and B.6.3

page 49
Annex 4
MONITORING INFORMATION
The monitoring plan is described in section B.7.2
-----

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PDD CDM Talara-2022

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03

CDM – Executive Board

CLEAN DEVELOPMENT MECHANISM

A. General description of project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

CDM – Executive Board

SECTION A. General description of project activity

A.1. Title of the project activity:

Talara Wind Farm Project

A.2. Description of the project activity:

CDM – Executive Board

• Contributing to fiscal accounts though the payment of taxes.

A.3. Project participants:

Kindly indicate if the Party

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

A.4.1.1. Host Party(ies):

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

A.4.1.3. City/Town/Community etc.:

La Campana Pampa, District of Pariñas

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

Vertex East North

CDM – Executive Board

Figure 1. Project Location.

A.4.2. Category(ies) of project activity:

Category: Renewable electricity in grid connected applications

A.4.3. Technology to be employed by the project activity:

CDM – Executive Board

The project technical data is as follows:

Total power Capacity 30.6 MW

CDM – Executive Board

Estimate of emission reductions

A.4.5. Public funding of the project activity:

There is no public funding for the proposed project.

CDM – Executive Board

SECTION B. Application of a baseline and monitoring methodology

Also, following the ACM0002, version 12.3.0 guidelines, the

Applicability conditions Fulfillment of conditions

CDM – Executive Board

capacity addition, retrofit or replacement of installation and operation of a 30.6 MW grid

The methodology is not applicable to the following:

Applicability conditions Fulfillment of conditions

CDM – Executive Board

CDM – Executive Board

Source Gas Included? Justification/Explanation

generation in fossil fuel fired

Emissions from electricity

2006 2007 2008 2009 2010

CDM – Executive Board

Share by Generation Technology

2006 2007 2008 2009 2010

CDM – Executive Board

CDM – Executive Board

CDM – Executive Board

CDM – Executive Board

Sub-step 1a: Define alternative scenarios to the project activity

Sub-step 1b: Consistency with mandatory laws and regulations