Gia Lai Final PDD Ver 08 16 09 2013

UNFCCC/CCNUCC
CDM – Executive Board Page 1
PROJECT DESIGN DOCUMENT FORM

FOR SMALL-SCALE CDM PROJECT ACTIVITIES (F-CDM-SSC-PDD)
Version 04.1
PROJECT DESIGN DOCUMENT (PDD)
Title of the project activity Biomass Power Project of Gia Lai Cane Sugar
and Thermoelectricity Joint Stock Company
Version number of the PDD 08

Completion date of the PDD 16/09/2013
Project participant(s)  Gia Lai Cane Sugar and
Thermoelectricity Joint Stock
Company (SEC)
 Investment and Trade Consultancy
Company Limited
(INTRACO Co., Ltd.)
 Nordic Environment Finance
Corporation NEFCO in its capacity as
Fund Manager to the NEFCO Carbon
Fund (NeCF)
Host Party(ies) Viet Nam

Sectoral scope(s) and selected methodology(ies)  Sectoral Scope I: Energy Industries
(renewable/ non-renewable sources).
 Type I – Renewable Energy Projects
 Selected methodology (ies): Category
AMS I.C version 19 – Thermal energy
production with or without electricity.
Estimated amount of annual average GHG 37,350 tCO2e

emission reductions
UNFCCC/CCNUCC
SECTION A. Description of project activity

A.1. Purpose and general description of project activity
>>
The proposed project ”Biomass Power Project of Gia Lai Cane Sugar and Thermoelectricity Joint
Stock Company” developed by Gia Lai Cane Sugar and Thermoelectricity Joint Stock Company
(hereafter referred to as “SEC”) at Cheo Reo Ward, Ayunpa Town, Gia Lai Province is a cogeneration
project involving the installation of a 75 TPH boiler and 12 MW generator. The project is located near an
existing power plant, both of which are adjacent to a sugar factory of the Project developer.
The project activity will utilize bagasse and rice husk as fuels which could be considered renewable
biomass as per “Definition of Renewable Biomass” Annex 18 of EB 23 and Glossary of CDM Terms,
version 05. Prior to the implementation of the project activity, electricity in Vietnam is generated mainly
from fossil fuel sources and is solely distributed to consumers via the unique national electricity grid.
The purpose of the project activity is to generate electricity fuelled by bagasse that is produced from the
milling of sugar cane and by rice husk purchased from existing nearby wood processing facilities to
supply to the Vietnam Power Grid. The proposed project is expected to achieve greenhouse gas (GHG)
reduction by avoiding CO2 emissions from electricity generation in grid-connected fossil fuel power
plants in the absence of the proposed project. Emission reductions are not accounted for baseline
emissions from the generation of steam. The estimated annual gross power generation is about 86,400
MWh1 and an estimated 64,800 MWh per annum will be delivered to the national power grid.
During the crushing season from October to April next year (07 months or 210 days), the project activity
will utilize bagasse from the sugar mill for power generation, during non-crushing season, the project
activity would also use surplus biomass residues available in the region for power generation, which
would essentially be rice husk. This electricity generation partly substitutes the power generation
by carbon intensive Vietnam regional grid (which is primarily served by plants using carbon emissive
conventional fuels like coal, diesel/oil, natural gas etc.) and power generation in sugar mill,
currently generated through low efficiency power plant.
Pre-project Scenario:
The scenario existing prior to the implementation of the project activity is as follows:
Steam
The steam supplied to the sugar mill by two boilers

Description Boiler 1 Boiler 2
Model SHS20-2.45/400-G(Y) SHS20-2.45/400-G(Y)
Steam generating capacity 20 TPH 20 TPH
Steam pressure into turbine 2.45 Mpa 2.45 Mpa
Steam pressure at outlet turbine 0.24 Mpa 0.24 Mpa
supplied to the sugar mill
Fuel 100% bagasse 100% bagasse
Boiler efficiency 82% 82%
Commissioning date2 05/07/1997 05/07/1997
Remaining lifetime3 12 years 05 months 12 years 05 months
1
Approved FSR of the project activity
2
The commission date based on the acceptance and handover for operation minutes between boiler’s operator,
equipment manufacturer and authorized inspection body
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Power
Two numbers steam turbines of rated output capacities of 1.5 MW each power utilizing steam at 2.4 Mpa
pressure were used for meeting all the electricity demand of the sugar manufacturing facility.
Bagasse
The bagasse generated in the sugar plant was utilized in the sugar plant for steam and power generation.
Any surplus bagasse available at the end of crushing season was used as startup fuel in the next season.
Biomass Residues
The region has surplus biomass residues (rice husk) which were not utilized for any industrial energy use.
Project Scenario
In the project scenario, a turbine and a generator of 12 MW is be added along with a new 75 TPH boiler
producing high pressure steam at 3.82 Mpa in addition to the existing system in order to optimally
utilize the bagasse from the sugar processing facility. The cogeneration system would now provide
the high pressure steam to run the 12 MW turbine and generator as well as provide for the low
pressure steam requirement at the sugar process plant. The pre existing turbines and boilers would be kept
as standby by SEC
Steam
The steam from the project activity would be supplied to sugar plant to meet its steam requirement.
Power
The project activity involves the addition of 12 MW condensing turbine which would enable SEC
to optimally utilize the bagasse and other biomass residues and generate sufficient power required
to completely meet the requirements of sugar facility in both crushing & non crushing season. The
surplus power generated would be exported to the regional grid.
Total emission reductions of the proposed project over the fixed ten-year crediting period are estimated to
be 37,350 tCO2e per year.
The proposed project will contribute to sustainable development in Vietnam as follows:
 By utilizing bagasse and rice husk to generate electricity, the proposed project has contribution to
promote local and national sustainable development by reducing impacts in using fossil fuels for
electricity generation. Furthermore, the proposed project will avoid uncontrolled burning of
biomass in the region, which avoids air pollution and subsequent smoke impacts to local road
transportation. Economic growth, social benefits and environmental improvement will be
achieved in the region
 Reducing GHG emissions and the emission of other pollutants resulting from the power
generation industry in Vietnam compared to fossil fuels power plants.
 Acting as a driving factor that makes the other Sugar Plants in Vietnam to adopt and extend the
modern technology of clean energy.
3
Remaining lifetime determined by calculation as difference between the technical lifetime of 25 years as per EB
50 Annex 15, option c) and operation time calculated from the first date of commissioning on 05/07/1997 until the
date of investment decision on 14/12/2009, the technical lifetime will be ended on 04/07/2022. However, when
consideration of the end of 10 years credit period from 01/01/2013 to 31/12/2022, the credit period is selected
from 01/01/2013 to 04/07/2022.
UNFCCC/CCNUCC
 Providing more employment opportunities for local residents and increasing local incomes. The
proposed project will directly benefit the local region by creating new jobs and investment
opportunities, simulating economic development.
A.2. Location of project activity

A.2.1. Host Party(ies)
>>
Viet Nam
A.2.2. Region/State/Province etc.
>>
Gia Lai Province
A.2.3. City/Town/Community etc.

>>
Cheo Reo Ward, Ayunpa City
A.2.4. Physical/ Geographical location

>>
The proposed project is located within the sugar plant of Gia Lai Cane Sugar and Thermoelectricity Joint
Stock Company at 561 Tran Hung Dao Road, Cheo Reo Ward, Ayunpa City, Gia Lai Province, Viet
Nam, 100 km from Pleiku city to the South East. The geographical coordinates of the project are: latitude:
13°25’36” N and longitude: 108°25’35”E.
The below map indicates the location of the proposed project:
Gia Lai Province
Project location
Figure A4.1.4.1: Project location

UNFCCC/CCNUCC
A.3. Technologies and/or measures

>>
The technology employed is a 75 tonnes steam per hour boiler used to produce steam. The generator has
an electrical generation capacity of 12 MW, generated at 6.3 kV.
The electricity will be used to meet the internal electricity demand (auxiliaries and equipment) of the
sugar plant and the remaining is exported to the national electricity grid.
Table A.4.2.1 The main technical parameters of the Project Activity
Parameters Value Source

Installed Capacity (MW) 12 MW Approved FSR
Auxiliary consumption (MW) 10 % of the gross output Approved FSR
Electricity to the sugar plant (MWh) 12,960 Approved FSR
Operation hours 7,200 Approved FSR
Annual gross power generation (MWh) 86,400 Approved FSR
Annual power supplied to the grid (MWh) 64,800 Approved FSR
Plant Load Factor4 82% Calculated
Technology of project activity
The cogeneration project activity consists of the following main units:

 1 number of biomass fired boiler
 1 number of steam turbine
 1 number of electrical generator
 Appropriate power evacuation system and the related instrumentation and controls
The technical specifications of the key units are as follows:
Table A.4.2.2 Steam generator (Boiler)
Description Value Source

Model WDLC 75/3.82-1 Equipment Contract
Steam generating capacity 75 TPH Equipment Contract
Steam pressure 3.82 Mpa Equipment Contract
Steam temperature at superheater outlet 485 °C Equipment Contract
Feed water temperature 105 °C Equipment Contract
Efficiency 87% Equipment Contract
Fuel Biomass (bagasse, rice Equipment Contract
husk)
Technical lifetime 25 years Default value
4
The Plant load factor (PLF) for this proposed project was determined by the annual electricity output and the
capacity which were provided by the third party who designed the FSR of the project. FSR has been approved by
the national authority. So it is in line with the EB 48 annex 11 “The plant load factor determined by a third party
contracted by the project participants (e.g. an engineering company)”
PLF = Operation time / 8760 * 100%, in which 8760 is hours of one year. So PLF = 7200 / 8760 * 100% = 82%.
UNFCCC/CCNUCC
provided at EB50
Report, Annex 15,
page 4
Table A.4.2.3 Steam Turbine
Description Value Source

Model B12-343/02/470 Equipment Contract
Rate capacity 12 MW Equipment Contract
Voltage 6.3 KV Equipment Contract
Power Factor 0.8 Equipment Contract
Technical lifetime 25 years Default value
provided at EB50
Report, Annex 15,
page 4
The project is designed to produce clean energy by utilizing renewable biomass residue which is a carbon
neutral fuel, hence does not cause any threat to the environment as compared to the technology being
used by the fossil fuel based thermal energy generation unit. The technology employed is
environmentally safe. The project activity involves no technology transfer.
A.4. Parties and project participants
Private and/or public Indicate if the Party involved

Party involved
entity(ies) project participants wishes to be considered as
(host) indicates a host Party
(as applicable) project participant (Yes/No)
Gia Lai Cane Sugar and

Viet Nam (host) Thermoelectricity Joint Stock No
Company (SEC)
Investment and Trade

Viet Nam (host) Consultancy Company Limited No
(INTRACO Co., Ltd.)
Kingdom of Sweden Nordic Environment No

Finance Corporation
NEFCO in its capacity as
Fund Manager to the
NEFCO Carbon Fund
(NeCF)
Contact details are listed in Appendix 1
The carbon purchaser is the Nordic Environment Finance Corporation NEFCO in its capacity as Fund
Manager to the NEFCO Carbon Fund (NeCF)
NEFCO Carbon Fund (NeCF)

UNFCCC/CCNUCC
NEFCO, the Nordic Environment Finance Corporation, is a multilateral risk capital institution financing
environmental projects in Central and Eastern Europe, with an emphasis on the Russian Federation and
Ukraine. Its purpose is to facilitate the implementation of environmentally beneficial projects in the
neighbouring region, with trans boundary effects that also benefit the Nordic region. Today, NEFCO
manages funds in an aggregate of approximately €470 million. NEFCO is located in Helsinki, Finland.
The NEFCO Carbon Fund (NeCF) was established as a Public Private Partnership in April 2008, to
provide financial assistance to projects by purchasing emission reduction credits from projects under the
JI and CDM mechanisms. The NEFCO Carbon Fund (NeCF) has the Danish Energy Agency, DONG
Energy, Eesti Energia, the Industrialisation Fund for Developing Countries (Denmark), Ministries of
Environment and Foreign Affairs of Finland, Etelä-Pohjanmaan Voima Oy (Finland), Kymppivoima Oy
(Finland), GDF Suez, the Norwegian Finance Ministry and NEFCO itself, as participants in the fund. The
total available resources are ca. €165 million.
NEFCO is the Fund Manager of the NeCF, and has been authorised by the governments investing in the
NeCF to participate on their behalf in actions leading to the generation, transfer and acquisition of CERs
under Article 12 of the Kyoto Protocol.
A.5. Public funding of project activity

>>
No public funding or ODA from Appendix I Parties is involved in the proposed project activity. Thus the
project participant hereby confirms that there is no diversion of Official Development Assistance to the
project activity.
A.6. Debundling for project activity
>>
This project activity is not a debundled component of any larger project activity.
According to paragraph 2 of Appendix C to the Simplified Modalities and Procedures for Small-Scale
CDM project activities (FCCC/KP/CMP/2005/8/Add.1), a proposed small-scale project activity shall be
deemed to be a debundled component of a large project activity if there is a registered small-scale CDM
project activity or a request for registration by another small-scale project activity:
 By the same project participants;

 In the same project category and technology/measure; and
 Registered within the previous 2 years; and
 Whose project boundary is within 1 km of the project boundary of the proposed small-scale
activity at the closest point.
The project participant is promoting the proposed CDM project and confirms that it has not registered any
small scale/large scale CDM project activity or applied for registration of another small scale/large scale
CDM project activity within 1 km of the project boundaries of this proposed project activity, with the
same or different technology/measure in the last 2 years. Hence, this project is not a de-bundled
component of a large scale project activity.
SECTION B. Application of selected approved baseline and monitoring methodology
B.1. Reference of methodology
>>
The approved baseline and monitoring methodology applied to this project is: “Thermal energy
production with or without electricity”, AMS I.C. / Version 19 (EB 61)
In addition, the following methodological tools are applied in this PDD:

UNFCCC/CCNUCC
 “Tool to calculate baseline, project and/or leakage emissions from electricity consumption”
Version 01 (EB 39, Annex 7).
“Tool to calculate project or leakage CO2 emissions from fossil fuel combustion” Version 02 (EB41,
Annex 11).
B.2. Project activity eligibility

>>
The project activity conforms to the applicability conditions of the methodology AMS I.C/Version 19 –
“Thermal energy production with or without electricity” under Appendix B of the SSC M&P as
demonstrated in the table below:
Applicability Criteria for AMS I.C. Project Activity

1. This category comprises renewable energy The project activity is a biomass based
technologies that supply users with thermal energy cogeneration project which is only claiming the
that displaces fossil fuel use. These units include emission reductions for the electricity supplied to
technologies such as solar thermal water heaters and the grid. As the applicability condition comprises
dryers, solar cookers, energy derived from renewable of the renewable energy technologies that supply
biomass and other technologies that provide thermal users with thermal energy that displaces fossil
energy that displaces fossil fuel. fuel usage, whereas, the project activity is not
displacing any fossil fuel for the generation of
thermal energy, as prior to the project activity,
the thermal energy was generated by a
biomass (bagasse) based boiler only.
Thus, this condition is not applicable for the project
activity.
2. Biomass-based cogeneration systems are included The project activity is a biomass based cogeneration
in this category. For the purpose of this system to meet the thermal and electrical
methodology “cogeneration” shall mean the requirements at the unit and will export the excess
simultaneous generation of thermal energy and power to the grid. Moreover, the project activity
electrical energy in one process. Project activities produces heat and power in a same elemental
that produce heat and power in separate element process, thereby meeting the given applicability
processes (for example heat from a boiler and condition.
electricity from a biogas engine) do not fit under the
definition of cogeneration project.
3. Emission reductions from a biomass cogeneration The project activity is a biomass based cogeneration
system can accrue from one of the following system to meet the thermal and electrical
activities: requirements at the unit and will claim emission
(a) Electricity supply to a grid; reduction due to export of the clean power to the
(b) Electricity and/or thermal energy (steam or regional grid. Thus, the project activity satisfies the
heat) production for on-site consumption or for given applicability condition (a) of the applicability
consumption by other facilities; condition.
(c) Combination of (a) and (b).
4. The total installed/rated thermal energy As the project activity is a Cogeneration project
generation capacity of the project equipment is equal activity, which claims emission reduction solely
to or less than 45 MW thermal. on account of electricity generation. Thus, the
relevant applicability condition of the project
would be as per paragraph 6 of the
methodology. The same is explained below.
5. For co-fired systems, the total installed thermal Not applicable. The project does not involve co-
energy generation capacity of the project equipment, firing. Only biomass residues will be used as fuel.
when using both fossil and renewable fuel shall not
UNFCCC/CCNUCC
exceed 45 MW thermal (see paragraph 6 for the

applicable limits for cogeneration project activities).
6. The following capacity limits apply for biomass The emission reductions of the cogeneration project
cogeneration units: activity are solely on account of electrical energy
production (i.e. no emission reductions accrue from
(a) If the project activity includes emission thermal energy component), the total installed
reductions from both the thermal and electrical electrical energy generation capacity of the project
energy components, the total installed energy equipment of the cogeneration unit, which is not
generation capacity (thermal and electrical) of the exceed 15 MW. Thus, scenario (c) is applicable.
project equipment shall not exceed 45 MW thermal.
For the purpose of calculating this capacity limit the
conversion factor of 1:3 shall be used for converting
electrical energy to thermal energy (i.e. for
renewable energy project activities, the maximal
limit of 15 MW(e) is equivalent to 45 MW thermal
output of the equipment or the plant);
(b) If the emission reductions of the cogeneration

project activity are solely on account of thermal
energy production (i.e. no emission reductions
accrue from electricity component), the total
installed thermal energy production capacity of the
project equipment of the cogeneration unit shall not
exceed 45 MW thermal;
(c) If the emission reductions of the cogeneration

project activity are solely on account of electrical
energy production (i.e. no emission reductions
accrue from thermal energy component), the total
installed electrical energy generation capacity of the
project equipment of the cogeneration unit shall not
exceed 15 MW.
7. The capacity limits specified in the above This is to replace two turbines (1.5 MW each)
paragraphs apply to both new facilities and retrofit and two biomass boilers (20 TPH each) which
projects. In the case of project activities that involve are used previously. The project activity involves
the addition of renewable energy units at an existing addition of new unit of12 MW biomass residue
renewable energy facility, the total capacity of the fired cogeneration plant, which is operated next to
units added by the project should comply with the existing plant fired of 3 MW with the same
capacity limits in paragraphs 4 to 6, and should be type of biomass residue as in the project plant. Also,
physically distinct from the existing units. the total capacity of the unit added by the project
which is not exceed 15 MW complies with the
capacity limits as mentioned in paragraph 4 to 6 of
the methodology and is physically distinct from
each other. Hence, the project activity satisfies the
applicability condition.
8. Project activities that seek to retrofit or modify an Not applicable. The project activity does not seek to
existing facility for renewable energy generation are retrofit or modify an existing facility for renewable
included in this category. energy generation.
9. New Facilities (Greenfield projects) and project This is to replace two turbines (1.5 MW each)
activities involving capacity additions compared to and two biomass boilers (20 TPH each) which
the baseline scenario are only eligible if they comply are used previously. The project activity is
with the related and relevant requirements in the involving capacity additions compared to the
UNFCCC/CCNUCC
“General Guidelines to SSC CDM methodologies”. baseline scenario and complies with the
related and relevant requirements in the
General Guidelines to SSC CDM methodologies.
10. If solid biomass fuel (e.g., briquette) is used, it Not applicable. The project activity uses bagasse
shall be demonstrated that it has been produced using and rice husk not to use solid biomass fuel as
solely renewable biomass and all project or leakage combustion fuel.
emissions associated with its production shall be
taken into account in emissions reduction
calculation.
11. Where the project participant is not the producer Not applicable. The project activity does not use the
of the processed solid biomass fuel, the project processed solid biomass fuel.
participant and the producer are bound by a contract
that shall enable the project participant to monitor
the source of the renewable biomass to account for
any emissions associated with solid biomass fuel
production. Such a contract shall also ensure that
there is no double-counting of emission reductions.
12. If electricity and/or steam/heat produced by the After meeting the captive process and power
project activity is delivered to third party i.e. another requirements at the sugar mill, the project activity
facility or facilities within the project boundary, a will supply the excess power to the regional grid and
contract between the supplier and consumer(s) of the no power would be supplied to any other facility
energy will have to be entered into that ensures there outside the project boundary. Also, the project
is no double-counting of emission reductions. participant and the sugar mill is the same legal
entity, therefore a contract between the supplier and
consumer(s) of the energy is not necessary.
13. If the project activity recovers and utilizes biogas Not applicable. The project activity does not
for power/heat production and applies this recover and utilize biogas for power/heat
methodology on a stand alone basis i.e. without production and applies this methodology on a stand
using a Type III component of a SSC methodology, alone basis.
any incremental emissions occurring due to the
implementation of the project activity (e.g. physical
leakage of the anaerobic digester, emissions due to
inefficiency of the flaring), shall be taken into
account either as project or leakage emissions.
14. Charcoal based biomass energy generation Not applicable. The project activity does not
project activities are eligible to apply the involve charcoal based biomass energy generation.
methodology only if the charcoal is produced from
renewable biomass sources provided:
(a) Charcoal is produced in kilns equipped with

methane recovery and destruction facility; or
(b) If charcoal is produced in kilns not equipped with

a methane recovery and destruction facility, methane
emissions from the production of charcoal shall be
considered. These emissions shall be calculated as
per the procedures defined in the approved
methodology AMS-III.K. Alternatively, conservative
emission factor values from peer reviewed literature
or from a registered CDM project activity can be
used, provided that it can be demonstrated that the
parameters from
UNFCCC/CCNUCC
these are comparable e.g. source of biomass,

characteristics of biomass such as moisture, carbon
content, type of kiln, operating conditions such as
ambient temperature.
Based on the above explanations, AMS-I.C, version 19 is applicable for this project activity
B.3. Project boundary

>>
As per paragraph 15 of AMS I.C, version 19:
The spatial extent of the project boundary encompasses:
(a) All plants generating power and/or heat located at the project site, whether fired with
biomass, fossil fuels or a combination of both;
(b) All power plants connected physically to the electricity system (grid) that the project
plant is connected to;
(c) Industrial, commercial or residential facility, or facilities, consuming energy generated
by the system and the processes or equipment affected by the project activity;
(d) The processing plant of biomass residues, for project activities using solid biomass fuel
(e.g. briquette), unless all associated emissions are accounted for as leakage emissions;
(e) The transportation itineraries, if the biomass is transported over distances greater than
200 kilometres, unless all associated emissions are accounted for as leakage emissions;
(f) The site of the anaerobic digester in the case of project activity that recovers and utilizes
biogas for power/heat production and applies this methodology on a standalone basis i.e.
without using a Type III component of a SSC methodology.
Accordingly, the boundary of the project activity is defined to include the physical and geographical
limits of the biomass boiler and turbo generator set in the project activity and the Vietnam National
Electricity Grid, to which the electricity of the plant is exported, and shown in the process flow chart:
UNFCCC/CCNUCC
CDM Boundary
Biomass fuels (bagasse
Sugar plant of SEC and rice husk) store
Steam
BIOMASS
BOILER
12W Generator
Vietnam National Electricity

Electricity Grid
Figure B.3.1 Flow diagram of the project boundary
The GHGs and emission sources included in the project boundary are shown in below table.
Table B.3: Sources and gases included in or excluded from the

project boundary
UNFCCC/CCNUCC
Source GHGs Included? Justification/Explanation

CO2 Included Main emission source
Electricity CH4 Excluded Excluded for simplification. This is
Baseline scenario
generation conservative.
N2 Excluded Excluded for simplification. This is
conservative.
CO2 Excluded Main emission source
Heat generation CH4 Excluded Excluded for simplification. This is conservative.
N2O Excluded Excluded for simplification. This is conservative.
On-site fossil fuel CO2 Included May be an important emission source

and electricity CH4 Excluded for simplification. This emission
consumption due to Excluded source is assumed to be very small
the project activity
Project scenario
N2O Excluded for simplification. This emission

Excluded source is assumed to be very small
CO2
May be an important emission source
Off-site transportation Included
of biomass residues CH4 Excluded for simplification. This emission
N2O Excluded for simplification. This emission
B.4. Establishment and description of baseline scenario

>>
In the pre project scenario, the sugar mill met their process and electricity requirement by biomass
based cogeneration plant.
Project alternatives:
Alternatives for the project activity included the following options:
1. Continuation of the pre project scenario (as explained in section A.2).

2. Installing the project scenario (biomass based 75 TPH boiler & 12 MW turbine) without the
CDM benefits.
Both these alternatives are taken for further consideration.
Baseline scenarios:
As per paragraph 19 of applied methodology (AMS - I C/Version 19), project activities

producing both heat and electricity shall use one of the following baseline scenarios:
(a) Electricity is imported from grid and thermal energy (steam/heat) is produced using fossil fuel;
(b) Electricity is produced in an on-site captive power plant using fossil (with a possibility of export to
the grid) and thermal energy (steam/heat) is produced using fossil fuel;
UNFCCC/CCNUCC
(c) A combination of (a) and (b);
(d) Electricity and thermal energy (steam/heat) are produced in a cogeneration unit using fossil fuel
(with a possibility of export of electricity to grid/other facilities and/or thermal energy to other
facilities);
(e) Electricity is imported from grid and/or produced in an on-site captive power plant using fossil fuels
(with a possibility of export to grid); steam/heat is produced from biomass;
(f) Electricity is produced in an on-site captive power plant using biomass (with a possibility of export to
the grid) and/or imported from the grid; steam/heat is produced using fossil fuel;
(g) Electricity and thermal energy (steam/heat) are produced in a biomass fired cogeneration unit (without
a possibility of export of electricity either to the grid or to other facilities and without a possibility of
export of thermal energy to other facilities). This scenario applies to a project activity that installs a
new grid connected biomass cogeneration system that produces surplus electricity and this surplus
electricity is exported to a grid. The baseline scenario is that the electricity would otherwise have
been generated by the operation of grid-connected power plants and by the addition of new
generation sources to the grid;
(h) Electricity and/or thermal energy produced in a co-fired system.
(i) Electricity is imported from a grid and/or produced in a biomass fired cogeneration unit (without a
possibility of export of electricity either to the grid or to other facilities); steam/heat is produced in a
biomass fired cogeneration unit and/or a biomass fired boiler (without a possibility of export of
thermal energy to other facilities). This scenario applies to a project activity that installs a new
biomass cogeneration system that displaces electricity which otherwise would have been imported
from a grid.
In view of the pre project scenario, out of the various alternatives provided in the methodology, the
appropriate baseline scenario, for the project activity is the scenario as described in A M S
I . C / V e r s i o n 1 9 , paragraph 19 (g), which states the following.
Electricity and thermal energy (steam/heat) are produced in a biomass fired cogeneration unit
(without a possibility of export of electricity either to the grid or to other facilities and without a
possibility of export of thermal energy to other facilities). This scenario applies to a project activity
that installs a new grid connected biomass cogeneration system that produces surplus electricity and
this surplus electricity is exported to a grid. The baseline scenario is that the electricity would
otherwise have been generated by the operation of grid-connected power plants and by the addition
of new generation sources to the grid;
Hence, as per paragraph 34 of the methodology we need to refer to paragraph 21 of the

methodology which states that baseline emissions for supply of electricity to and/or displacement
electricity from a grid shall be calculated as per the procedures detailed in AMS-I.D.
So, as AMS – I D (Version 17), the baseline is the kWh produced by the renewable generating unit
multiplied by an emission coefficient (measured in kg CO2e/kWh) calculated in a transparent
and conservative manner as per paragraph 12 of AMS-I D:
UNFCCC/CCNUCC
a) A Combined margin (CM), consisting of the combination of operating margin (OM) and build
margin (BM) according to the procedures prescribed in the “Tool to calculate the emission factor for
an electricity system”.
OR
b) The weighted average emissions (in kg CO2e/kWh) of the current
generation mix.
Option (a) is used for calculation of the emission factor.
EFCO2,grid,y = EFgrid,CM,y
Therefore, the baseline emissions are calculated as follow:

BEy = EGBL,y. EFgrid,CM,y
The Viet Nam national electricity grid, which is operated and monopolized by the EVN and is the unique
transmission and distribution line, to which all power plants in Viet Nam are physically connected to is
the project electricity system. Thus the baseline scenario of the proposed project is the delivery of
equivalent amount of annual power output from the Viet Nam national grid to which the proposed project
is also connected. The database for calculating the baseline is published by the DNA of Viet Nam.
Data source for the key parameters used to calculate emission reductions is furnished below:
Table B.4.1 Key information and data used to determine the baseline
Variable Value / Unit Source
Operating Margin Emission 0.6464 tCO2/MWh Grid Emission Factor Report (2000-2008)
Factor approved by DNA Vietnam dated 26th March
2010
Build Margin Emission Factor 0.5064 tCO2/MWh Grid Emission Factor Report approved (2000-
2008) by DNA Vietnam dated 26th March 2010
Combined Margin Emission Grid Emission Factor Report (2000-2008)
Factor 0.5764 tCO2/MWh approved by DNA Vietnam dated 26th March
2010
Electricity exported to the 64,800 MWh/ year Approved FSR
National Grid
The detailed calculations and data are listed in Appendix 4.
B.5. Demonstration of additionality

>>
CDM Prior consideration
A summary of the key events in the development of the project as a CDM project are provided in below
demonstrated the compliance with on “Guidelines on the Demonstration and Assessment of Prior
Consideration of The CDM” (EB 62, Annex 13). Based on the guidelines, The major milestones in
developing the investment project and CDM application are summarized in the below table.
Activity Date Supporting Document

FSR approved by the local 30/11/2009 Construction Permit & Investment
authority license
CDM Consideration by the 14/12/2009 Minute of Board meeting
Management Board
UNFCCC/CCNUCC
Notification to the DNA of Viet 13/07/2009 F-form to DNA Viet Nam & DNA
Nam Vietnam Website
Notification to the UNFCCC 11/01/2010 F-form to UNFCCC & UNFCCC site
Equipment contract signed 15/01/2010 EPC contract
(Starting date of project activity)
Host Country LoA obtained 19/08/2010 Host Country LoA
ERPA signed with CERs buyer 22/09/2010 The first ERPA
The ERPA was terminated 01/02/2011 ERPA termination letter
The new buyer appointed 04/08/2011 Signed letter of intent for buying CER
The second ERPA signed 11/11/2011 The second ERPA
The PDD was published for GSP 01/02/2012 UNFCCC Website
Additionality demonstration
In accordance with paragraph 28 of the simplified modalities and procedures for small-scale CDM project
activities, a simplified baseline and monitoring methodology listed in Appendix B may be used for a
small-scale CDM project activity if project participants are able to demonstrate to a designated
operational entity that the project activity would otherwise not be implemented due to the existence of
one or more barrier(s) listed in Attachment A of Appendix. B as listed below:
Investment barrier
An investment analysis has been undertaken to calculate the returns from the project activity. The
analysis has been undertaken over a period of 25 years, i.e. the technical lifetime of the project activity.
All the input values for the investment analysis have been sourced from the Approved Feasibility Study
Report (FSR) of the project prepared by the project owners in 2009. Hence as per paragraph 6, Annex 5
of EB 62, all the input values in the investment analysis were valid and applicable at the time of
investment decision taken by the project participant
Since there is no compulsion on the part of the project developer in the project activity, the “choice of the
developer is to invest or not to invest”. Therefore, as per paragraph 19 of Guidelines on the assessment of
investment analysis version 05 the benchmark analysis is appropriate for the project activity.
Project IRR has been selected as the financial indicator. Since the project is funded by a mix of debt and
equity, guidance to investment analysis permits the use of project IRR to demonstrate additionality and
that the project IRR is one of the financial indicators normally used by the banks and investors alike to
gauge the investment worthiness of the project, adoption of project IRR is considered appropriate
financial indicator for the project having regard to the project type and decision making context.
The key parameters used to calculate the project IRR based on the approved FSR. The complete financial
model includes justification of all of the parameters used and assumptions made.
Table B.5.1 Assumption parameters
No. Description Units Value Source

Capacity MW 12 Approved FSR
Operating hours hours/yr 7,200 Approved FSR
UNFCCC/CCNUCC
Bagasse used5 tonnes/yr 157,678 Approved FSR

Rice husk used6 tonnes/yr 43,547 Approved FSR
Gross electricity
Approved FSR
generation MWh/yr 86,400
Electricity to the
Approved FSR
sugar plant MWh/yr 12,960
Auxiliary
electricity
consumption
Approved FSR
(10% of the gross
electricity
generation ) MWh 8,640
Electricity to the
Approved FSR
grid MWh 64,800
Rice husk price VND/tonnes 300,000 Biomass fuel contract
Electricity price VND/kWh 698 PPA Contract
Operating costs -
Approved FSR
boiler 1000 VND 6,335,610
Salvage value % 10% Approved FSR
Total investment
Approved FSR
cost (before tax) 1000 VND 211,187,000
Depreciation
Equipments years 10 Approved FSR based on Circular 203/2009/TT
Civil works years 20 BTC dated 20/10/2009
Debt 1000 VND 150,000,000 Loan contract
Equity 1000 VND 61,187,000 Loan contract
Lending interest
Loan contract
rate % 14 %
Repayment
Loan contract
period year 10
Selected
benchmark % 12.0%
Approved FSR based on Decree
Income tax rate % 25% 124/2008/NDCP dated 11/12/2008
CERs
Emission
Calculated
Reductions tCO2e/year 37,350
http://www.bluenext.eu/statistics/downloads.php,
CER price EUR/tCO2 12.94
Exchange rate VND/EUR 27,451 http://www.vietcombank.com.vn
5
The capacity of the sugar mill of crushing of 2500 tons sugar cane per day in 210 days (1 ton of sugar cane
produced 0.315 ton of bagasse as per approved FSR and plant record), the total output of bagasse calculated is
165,375 ton/year, the boiler of 75 TPH for 12 MW power required 157,678 ton of bagasse calculated at the heat
balance method between deference of Enthalpy of feed in water and Enthalpy of steam ( the formula is available at
standard steam table at http://www.spiraxsarco.com/resources/steam-tables/superheated-steam.asp), the difference
between volume of the total bagasse produced of 165,375 ton/year and the utilized bagasse of 157,678 tons is 3.7
% calculated at handling lost.
6
Rice husk required for 90 days operation of 43,547 ton/year calculated at the heat balance method between
deference of Enthalpy of feed in water and Enthalpy of steam
UNFCCC/CCNUCC
The project activity will utilize bagasse and rice husk as fuels to generate electricity. The bagasse used in
the project activity that is produced from the sugar mill. The bagasse from sugar mill provided to the
project activity considered without any cost for conservative financial calculation because the sugar mill
and the project activity are developed by the same project owner.
Benchmark analysis
As the project generates financial benefits other than CDM related income, investment
comparison analysis or benchmark analysis needs to be used to demonstrate additionality. As there
are no other credible and realistic baseline scenario alternatives other than electricity supply from the
grid and supply heat from the fossil fuel fired boilers, benchmark analysis is chosen to proof additionality.
The financial indicator selected to assess the project is the project internal rate of return (Project IRR). As
per the Guidance on the Assessment of Investment Analysis version 05 Annex 5 of EB 62, para 12, the
benchmark for project IRR can be derived from: ‘Local commercial lending rates or weighted average
costs of capital (WACC) are appropriate benchmarks for an equity IRR’
Hence, the selected benchmark is local commercial lending rate at the time on which investment decision
was made. The commercial rate of interest in Vietnam is based on the State Bank of Vietnam’s base
interest rate. The project IRR of the proposed project will be calculated and compared to the local
commercial lending rate, which was offered by the local commercial Vietnamese banks at time point
making decision to implement the proposed project by the Board of Directors.
State Bank of Vietnam periodically publishes the Prime interest rate in its website http://www.sbv.gov.vn
. These published rates are prime interest rates. The local commercial banks do not lend at these rates.
However, the maximum rate at which they can lend is determined by Article 476 of Civil Code
(http://mirrors.creativecommons.org/international/vn/civil-code-2005-(English).pdf) which states, “The
lending interest rate shall be agreed upon by the parties, but must not exceed 150% of the basic interest
rate announced by the State Bank for loans of the corresponding type”7. However, the banks have been
charging interest in excess of 150% of prime interest rate as the following table would reveal:
Year SBV published Prime Permissible Prevailing Commercial

Interest Rate Commercial Lending Lending rates
rate at 150%
2006 December 8.25% 12,38% 13.7%
(IMF Report in Dec 2007)
2007 December 8.25% 12.38% 13.7%
(IMF Report in Dec 2007)
2008 December 8.50% 12.75 % 11.5%
(IMF Report in April 2009),
the lending rate in 2008 is
lower than normal rate
because of the subsidy by
Government to overcome the
financial crisis, it ended in
beginning of 2009 (See HSBC
Report issued 08/02/2010
page 6)
2009 December 8.00% 12.00% 12.7%
(IMF Report in Sept 2010)
7
State Bank of Vietnam publishes only Prime Interest rate, Discount rate and Refinancing rate. Of the three relevant basis for
commercial lending is Prime Interest rate
UNFCCC/CCNUCC
At the time of the decision-making on 14/12/2009, The State Bank of Viet Nam’s base interest rate was
8% according to the decision No.2665/QĐ-NHNN 8 dated 25/11/2009, effected from 01/12/2009.
According to the country’s civil code, the commercial lending rate of banks may charge up to of 150% of
the base interest rate, the commercial lending rate, therefore, should be 12% (= 8 x 150%).
Moreover, the commercial lending rate which was published by the International Monetary Fund (IMF)
in September 2009 was 12.7%9 at the time of decision making. On the other hand, it was observed that
the project signed a loan contract with Sacombank in 2009 at interest at 14%.
Hence, the benchmark based on the Prime Lending Rate as per the published information from the state
bank of Vietnam is compared above keep remaining as lower lending rate can be applied, therefore, the
benchmark selected at 12% in accordance with the Guidance on the Assessment of Investment Analysis
version 05 Annex 5 of EB 62.
In the web-hosting PDD, the benchmark selected as 12.7% according to the report of International
Monetary Fund (IMF) for the commercial lending rate, however, a comparison with the lending rate
based on the prime lending rate published by the state bank of Vietnam, the more conservative figure of
12% is selected.
Calculation and comparison of financial indicators:
The calculation of the Project IRR is based on the project cash inflows from sale of electricity to
grid/third party and project cash outflows related to cost of operation and maintenance of the plant, fuel
cost, etc. All these costs are in line with local regulations. Detail analysis will be submitted to the
respective DOE during validation of the project activity.
On the basis of the assumptions, the Project IRR without the inclusion of CER revenues was found to be
9.14 % and increases to 12.52% after the inclusion of CER revenue.
Table B.5.2 IRR Calculation

IRR without CDM Benchmark IRR with CDM
9.14% 12.0% 12.52%
Therefore it may be concluded that the CDM project activity has a less favourable indicator (and only
after the inclusion of CDM revenue, it become higher. Then, the project activity with aid of CDM
revenue will be more attractive to invest. Thus the proposed CDM project activity cannot be considered
as financially attractive option without considering successful CDM registration.
Sensitivity analysis
A sensitivity analysis of the project activity has been conducted to test the robustness of the
above calculations. Guidance on the Assessment of Investment Analysis - Version 05, EB 65, Annex 05
defines critical assumptions as those which constitute more than 20% of total project costs or
total project revenue and reasonable variation has been defined as a range of +10% and -10%. Five
parameters were identified as critical as defined in the Guidance on the Assessment of Investment
Analysis include:
1) The Plant load factor
8
State bank of Vietnam http://www.sbv.gov.vn
9
http://www.imf.org/external/pubs/ft/scr/2010/cr10281.pdf
UNFCCC/CCNUCC
2) O&M annual costs

3) Project cost
4) Price of biomass
5) Tariff
The results of sensitivity analysis for the project activity are given below:
Table B.5.3: Sensitivity Analysis:
S.No. Parameters Variation IRR Comments

Project scenario (Base Case) 0% 9.14%%
10% 11.77% Even after the variation of
+10% in the PLF, the
1 Plant Load Factor (PLF) Project IRR is still less
than the benchmark. The
PLF reach the benchmark
when the PLF increase of
10.9%. It is impossible to
be happen since the
proposed project is the
cogeneration system which
has been designed with the
maximum load factor, on
the other hand, the
cogeneration system are
supplied both electricity
and heat where thermal
load is put into the
highest priority. It is
difficult to increase of
10.9% of the PLF
compared with the
current estimation for the
entire crediting period
-10% 9.46% The O&M cost is described in
the PDD as 1.0% of the
2 O&M Annual Costs investment cost. The OM cost
reaches the benchmark when
it decreases of -93.5%. A
change of -93.5% is simply
too large a variation to be
realistic.
UNFCCC/CCNUCC
-10% 10.9% The project IRR reaches

benchmark when the project
3 Project Cost cost decrease of 15.55%.
The probability of a
15.55% decrease in the
total investment cost is
not likely to happen
because the country
inflation trend positive in
the recent years. In fact, the
actual costs of the project
increases compared to what
was budgeted. So this
option shall be discarded.
-10% 9.79% Even after the variation of

-10% in the market price
4 Price of Biomass of the biomass, the project
IRR is still less than the
benchmark. The project IRR
only reaches benchmark
when the price of biomass
decreases of -45.4%. This
option will be discarded.
Even after the variation of
10% 11.34% +10% in the market price
5 Tariff of the electricity, the project
IRR is still less than the
benchmark. The project IRR
reaches benchmark when the
electricity tariff increases of
13.1 %. It is very unlikely
because the tariff for the
project activity has been
fixed in the PPA contract, it
is difficult to change the
tariff rate for the project
activity.
As evident from the above statistics (and the graph below), the IRR without CDM is below the ascertained
benchmark even after introducing variation of 10% in some critical parameters (except when the plant load
factor and he tariff for the project activity increases by 10%) that are applicable to the project activity
As the requirement from DOE to demonstration of the addtionality with 9 MW biomass project activity
because the existing 3 MW is kept as back up
The key parameters used to calculate the project IRR based on the quotation from the equipment supplier
for the project activity in case of 9 MW biomass power stations is employed. The complete financial
model includes justification of all of the parameters used and assumptions made.
Table B.5.4 Assumption parameters

UNFCCC/CCNUCC
N
o. Description Units Value Source
Capacity MW 9 Equipment quotation
Operating hours hours/yr 7,200 Approved FSR
Basgaase used10 Tones/yr 126,151 Calculated
Rice husk used11 tonnes/yr 34,841 Calculated
Gross electricity generation MWh/yr 64,800 Approved FSR
Auxiliary electricity
consumption (10% of the
gross electricity generation ) MWh/yr 6,480 Equipment specification
Electricity to the grid MWh 58,320 Calculated
Rice husk price VND/tonnes 300,000 Biomass fuel contract
Electricity price VND/kWh 698 PPA Contract
Operating costs – boiler ( 3%
Approved FSR
of the project cost) 1000 VND 5,758,710
Salvage value % 10% Approved FSR
Total investment cost (before Equipment cost and construction
tax) 1000 VND 191,957,000 cost
Depreciation
Equipments years 10 Approved FSR based on Circular
Civil works years 20 203/2009/TT BTC dated 20/10/2009
Debt 1000 VND 134,369,900 Assumed as 70%
Equity 1000 VND 57,587,100 Assumed as 30%
Lending interest rate % 14 % Loan contract
Repayment period year 10 Loan contract
Selected benchmark % 12.0%
Approved FSR based on Decree
Income tax rate % 25% 124/2008/NDCP dated 11/12/2008
CERs
Emission Reductions tCO2e/year 33,615 Calculated
http://www.bluenext.eu/statistics/dow
CER price EUR/tCO2 12.94 nloads.php,
Exchange rate VND/EUR 27,451 http://www.vietcombank.com.vn
Exchange rate VND/USD 18,469 http://www.vietcombank.com.vn
Calculation and comparison of financial indicators:
The calculation of the Project IRR is based on the project cash inflows from sale of electricity to
grid/third party and project cash outflows related to cost of operation and maintenance of the plant, fuel
10
Basgaase used for 9 MW calculated for 60 TPH boiler in 210 days/year at the heat balance method between
deference of Enthalpy of feed in water and Enthalpy of steam ( the formula is available at standard steam table at
http://www.spiraxsarco.com/resources/steam-tables/superheated-steam.asp), the difference between total utilized
bagasse of 157,678 tons and the bagasse required for 9 MW of 126,151 calculated for use of the existing 3 MW
power in case of 9 MW employed
11
Rice husk used for 9 MW calculated for 60 TPH boiler in 90 days/year at the heat balance method between
deference of Enthalpy of feed in water and Enthalpy of steam
UNFCCC/CCNUCC
cost, etc. All these costs are in line with local regulations. Detail analysis will be submitted to the
respective DOE during validation of the project activity.
On the basis of the assumptions, the Project IRR without the inclusion of CER revenues was found to be
9.7 % and increases to 13.04% after the inclusion of CER revenue.
Table B.5.5 IRR Calculation

IRR without CDM Benchmark IRR with CDM
9.7% 12.0% 13.04%
Therefore it may be concluded that the CDM project activity has a less favourable indicator (and only
after the inclusion of CDM revenue, it become higher. Then, the project activity with aid of CDM
revenue will be more attractive to invest. Thus the proposed CDM project activity cannot be considered
as financially attractive option without considering successful CDM registration.
Sensitivity analysis
A sensitivity analysis of the project activity has been conducted to test the robustness of the
above calculations. Guidance on the Assessment of Investment Analysis - Version 05, EB 65, Annex 05
defines critical assumptions as those which constitute more than 20% of total project costs or
total project revenue and reasonable variation has been defined as a range of +10% and -10%. Six
parameters were identified as critical as defined in the Guidance on the Assessment of Investment
Analysis include:
1) The Plant load factor

2) O&M annual costs
3) Project cost
4) Price of biomass
5) Tariff
The results of sensitivity analysis for the project activity are given below:
Table B.5.6: Sensitivity Analysis:
Project IRR -10% 0 10%

Plan load factor 7.42% 9.70% 11.84%
Investment cost 11.48% 9.70% 8.18%
O&M cost 10.01% 9.70% 9.39%
Electricity price 7.42% 9.70% 11.84%
Biomass price 10.26% 9.70% 9.13%
Project IRR with CDM 13.04%
Benchmark 12%
As evident from the above statistics (and the graph below), the IRR without CDM is below the ascertained
benchmark even after introducing variation of 10% in some critical parameters (except when the plant load
factor and he tariff for the project activity increases by 10%) that are applicable to the project activity
Based on the above investment analysis, it can be concluded that the project activity is not
financially feasible without the revenue from Certified Emission Reductions in both cases 12 MW and 9
MW, and is therefore additional.
UNFCCC/CCNUCC
National and/or sectoral policies:
(a) National and/or sectoral policies or regulations that give comparative advantages to more emissions-
intensive technologies or fuels over less emissions-intensive technologies or fuels. Up to date, the
government of Vietnam has not implemented any such E+ policies that are available to access by public.
(b) National and/or sectoral policies or regulations that give comparative advantages to less
emissions-intensive technologies over more emissions-intensive technologies (e.g. public
subsidies to promote the diffusion of renewable energy or to finance energy efficiency programs):
in the latest Master Plan - Master Plan VI that was approved by the Prime Minister in 2007. Main
capacity additions (new power plants) as set out in the Master Plan is fossil fuel fired power
plants. There are no special incentives for less emission intensive technologies. According to EB
22, annex 3, it is not needed be taken into account in developing a baseline scenario as it is
implemented after 11 November 2001.
B.6. Emission reductions

B.6.1. Explanation of methodological choices
>>
Baseline Emissions:
As per paragraph 34 of AMS I.C “For case 15 (g), baseline emissions from the production of electricity
that displaces grid electricity import and/or supply electricity to the grid, shall be calculated as per
paragraph 21. Emission reductions from both the generation of electricity and thermal energy
(steam/heat) for onsite consumption are not eligible.”
As per paragraph 21 “Baseline emissions for supply of electricity to and/or displacement of electricity
from a grid shall be calculated as per the procedures detailed in AMS-I.D12 or AMS-I.F as applicable.”
Calculation of the EF of the national electricity grid:
The description below follows the steps of “Tool to calculate the emission factor for an electricity
system” Version 02.2.1 (Annex 19, EB 63; 29/09/2011 (here in after referred as “Tool”) and focuses on
the key process of the calculation of the emission factors. Please see Appendix 4 for the baseline data and
underlying calculated values of emission factors.”
Step 1: Identify the relevant electric power system
Determination of project electricity system

Although Viet Nam DNA did not publish a delineation of the project electricity system and connected
electricity but as indicated in National electricity master plan VI approved by the prime minister on
18/07/2007 at decision 110/2007/QD-TTg, Viet Nam has only one electricity system operated by
Electricity of Viet Nam (EVN) that all power plants are physically connected through transmission and
distribution lines to project activity, and there are no differences in electricity price in regions of Viet
Nam. There is only one electricity dispatch system in Viet Nam, i.e., National Dispatching Load Centre
(NDLC) under EVN. Therefore, the project electric power system, as defined above, is identified as the
Viet Nam National Grid which is used as default.
Step 2: Choose whether to include off grid power plants in the project electricity system (optional).
Project participants may choose between the following two options to calculate the operating margin and
build margin emission factor:
12
AMS-I.D “Grid connected renewable electricity generation”
UNFCCC/CCNUCC
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 there is no data available in the Grid Emission Factor Report approved by DNA Vietnam dated
26/03/ 2010, project proponent has considered Option I i.e., only grid power plants are included in the
calculation.
Step 3: Select a method to determine the Operating Margin (OM)

The “Tool to calculate the emission factor for an electricity system” (Version 02.2.1) provides four
options for calculating the Operating Margin:
(a) Simple OM; or
(b) Simple adjusted OM; or
(c) Dispatch data analysis OM; or
(d) Average OM
Option (a) can only be used if low-cost/must-run resources constitute less than 50% of total grid
generation (based on either average of the five most recent years, or on long-term averages for hydro
electricity production). Between 2004-2008, the average contribution of low-cost/must-run resources to
the EVN was 34.77%, as shown in Table B.6.1 below. On this basis, the Simple OM has been used.
The rate of low-cost/must run resources based on electricity generation in Viet Nam is showed in the
following table:
Table B.6.1 Rate of low cost/must-run sources based on electricity generation13
Year 2004 2005 2006 2007 2008 Average

Rate of low
cost/must-run sources 39.71% 32.52% 34.13% 33.74% 34.72% 34.77%
generation, %
The “Tool” offers the choice between two data vintages to calculate the Simple OM emission factor
(EFgrid,,OMsimple,,y):
 Ex-ante option: If the ex ante option is chosen, the emission factor is determined once at the
validation stage, thus no monitoring and recalculation of the emissions factor during the crediting
period is required. For grid power plants, use a 3-year generation-weighted average, based on the
most recent data available at the time of submission of the SSC-CDM-PDD to the DOE for
validation For off-grid power plants, use a single calendar year within the five most recent
calendar years prior to the time of submission of the CDM-PDD for validation.
 Ex-post option: If the ex post option is chosen, the emission factor is determined for the year in
which the project activity displaces grid electricity, requiring the emissions factor to be updated
annually during monitoring. If the data required to calculate the emission factor for year y is
usually only available later than six months after the end of year y, alternatively the emission
factor of the previous year y-1 may be used. If the data is usually only available 18 months after
the end of year y, the emission factor of the year proceeding the previous year y-2 may be used.
The same data vintage (y, y-1, y-2) should be used throughout all crediting periods.
The simple OM emission factor is calculated ex-ante using the data from 2006, 2007, 2008 available in
the Grid Emission Factor Report approved by DNA Vietnam dated 26/03/ 2010. As power plants
13
Grid Emission Factor Report approved by DNA Vietnam dated 26/03/ 2010
UNFCCC/CCNUCC
registered as CDM project activity are only hydro power project14 which are excluded from calculating
simple OM.
Step 4: Calculate the operating margin emission factor according to the selected method
The simple OM emission factor is calculated as the generation-weighted average CO2 emissions per unit
net electricity generation (tCO2/MWh) of all generating power plants serving the system, not including
low-cost/must-run plants.
The “Tool to calculate the emission factor for an electricity system” (Version 02.2.1) identifies two
options to calculate the Simple OM:
- Option A: Based on the net electricity generation and a CO2 emission factor of each power unit;
or
- Option B: Based on the total net electricity generation of all power plants serving the system and
the fuel types and total fuel consumption of the project electricity system.
As the data of fuel consumption of individual power plant connected to the Viet Nam National Grid is
available in Grid Emission Factor Report approved by DNA Vietnam dated 26/03/ 2010 so option A and
A1 are applied and used to calculate the Simple OM emission factor as follows:
 EG  EF
, m, y EL, m, y
EFgrid,OMsimple, y m
(Equation 1 of Tool)
 EG
m
m, y
Where:
EFgrid,OMsimple,
Simple operating margin CO2 emission factor in year y (tCO2/MWh )
y
EGm,y Net electricity generated and delivered to the grid by power plant/unit m in year y
(MWh)
EFEL, m,y CO2 emission factor of power unit m in year y (tCO2/MWh)
m All power units serving the grid in year y except low-cost/must-run power units
y The relevant year as per the data vintage chosen in step 3
Under Option A, EFEL, m,y is determined using one of the following 3 sub-options:
 Option A1: if for a power unit m data on fuel consumption and electricity generation is available
for relevant power units.
 Option A2: if for a power unit m only data on electricity generation and the fuel types is
available.
 Option A3: If for a power unit m only data on electricity generation is available, an emission
factor of 0 tCO2/MWh can be assumed as a simple and conservative approach.
As the data of fuel consumption of individual power plant connected to the Vietnam National Grid is
available in Grid Emission Factor Report approved by DNA Vietnam dated 26/03/ 2010 and the formula
referred in the DNA Viet Nam published report “Grid Emission Factor Report approved by DNA
14
Grid Emission Factor Report approved by DNA Vietnam dated 26/03/ 2010
UNFCCC/CCNUCC
Vietnam dated 26/03/ 2010” corresponds to the formula (1) and (2) of the Tool, so option A and A1 of the
tool are applied and used to calculate the Simple OM emission factor as follows:
 FC i ,m , y  NCVi , y  EFCO2,i, y
EFEL,m,y  i
EG m,y
Where:
EFEL,m,,y CO2 emission factor of power unit m in year y (tCO2/MWh )
FCi,m,y Amount of fuel type i consumed by power plant/unit m in year y. (Mass or
volume unit of the fuel)
Net calorific value (energy content) of fossil fuel type i in year y (GJ/mass or
NCVi,y
volume unit)
EFCO2,i,y CO2 emission factor of fossil fuel type i in year y ( tCO2/GJ)
EGm,y Net quantity of electricity generated and delivered to the grid by power
plant/unit m in year y (MWh)
i All fossil fuel types combusted in power sources in the project electricity
system in year y
All power plants/units serving the grid in year y except low-cost/must-run
m
power units
y The relevant year as per the data vintage chosen in step 3
Calculation of simple OM is not included low cost/must run power plants but electricity imported from
China is included. The emission factor of imported electricity is 0 tCO2e/MWh as indicated in Step 1
above.
Note: The Grid Emission Factor Report approved by DNA Vietnam dated 26/03/ 2010 provides fuel
specific fuel emission factors and plant specific NCVs and the same has been provided to the DOE for
validation.
Step 5: Calculate the build margin (BM) emission factor
According to “Tool to calculate the emission factor for an electricity system” (Version 02.2.1), there are
two options:
Option 1: For the first crediting period, calculate the build margin emission factor ex-ante based on the
most recent information available on units already built for sample group m at the time of CDM-PDD
submission to the DOE for validation, For the second crediting period, the build margin emission factor
should be updated based on the most recent information available on units already built at the time of
submission of the request for renewal of the crediting period to the DOE. For the third crediting period,
the build margin emission factor calculated for the second crediting period should be used. This option
does not require monitoring the emission factor during the crediting period.
Option 2: For the first crediting period, the build margin emission factor shall be updated annually, ex-
post, including those units built up to the year of registration of the project activity or, if information up to
the year of registration is not yet available, including those units built up to the latest year for which
information is available. For the second crediting period, the build margin emissions factor shall be
calculated ex ante, as described in Option 1 above. For the third crediting period, the build margin
emission factor calculated for the second crediting period should be used.
In terms of vintage of data, Option 1 shall be chosen for the proposed project. Details are as follows: in
the first and fixed crediting period, calculating the BM emission factor ex-ante shall be based on the most
UNFCCC/CCNUCC
recent information available on units already built for sample group m at the time of CDM-PDD
submission to the DOE for validation.
In term of vintage of data, the sample group of power units (m) used to calculate the build margin is
determined as per following procedure:
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) and determine their annual
electricity generation (AEGSET-5units, in MWh);
b) Determine their annual electricity generation of the project 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 (AGESET≥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.
Steps (d), (e) and (f) of the “Tool to calculate the emission factor for an electricity system” (Version
2.2.1, EB 63) are ignored because all the power plant units identified in SETsample started to supply
electricity to the grid less than 10 years ago. (Please refer to the appendix 4 of the PDD for details)
The comparison carried out by the project participants shows that the group of power capacity additions
that have been built most recently and comprise 20% of the system electricity generation (SET≥20%) has
the larger annual generation than the group of five power units (SET5-units) that have been built most
recently and hence it (SETsample) is employed. The calculated values of a) and b) are provided in DNA
Viet Nam published report “Viet Nam national electricity grid emission factor” dated 26/03/2010.
Moreover, 2008 being the most recent year for which DNA Viet Nam has published the BM for 2008
vintage conservatively based on part (b) of Tool.
The build margin emission factor is the generation-weighted average emission factor (tCO2/MWh) of all
power plant units m during the most recent year y for which electricity generation data is available at the
time of preparing the PDD.
The Build Margin is calculated as:

 EG  EF
m, y EL,m, y
EFgrid,BM,y m
 EG
m
m, y
Where:
EF grid,BM,y The build margin CO2 emission factor in year y ( tCO2/MWh)
EG m,y The net quantity of electricity generated and delivered to the grid by power
unit m in year y (MWh)
EF EL,m,y CO2 emission factor of power unit m in year y (tCO2/MWh) by following
equation (2) of the tool.
m Power units included in the build margin
y The most recent historical year for which power generation data is available
Step 6: Calculate the combined margin (CM) emission factor
UNFCCC/CCNUCC
The calculation of the combined margin (CM) emission factor EFgrid,CM,y is based on one of the following
methods:
(a) Weighted average CM; or
(b) Simplified CM.
The weighted average CM method (option A) should be used as the preferred option and hence has been
used for the project activity .
The combined margin emission factor EFgrid,CM,y is calculated as follows

EFgrid,CM,y = EFgrid,OM,y × wOM + EFgrid,BM,y × wBM (Equation 14 of Tool)
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 the operating margin emission factor (%)
wBM Weighting of the build margin emission factor (%)
The default weightings are used: wOM =0.5 and wBM=0.5 for the fixed crediting period .
Project emissions
As per paragraph 45 of AMS I.C, version 19, project emissions include:
CO2 emissions from on-site consumption of fossil fuels due to the project activity shall be calculated
using the latest version of the “Tool to calculate project or leakage CO2 emissions from fossil fuel
combustion”.
As the proposed project activity is a biomass based cogeneration plant, there would be zero project
emissions as only carbon neutral biomass would be utilized for energy generation.
Though, in case of any emergency where the fossil fuel might be used, the project emissions will include
the CO2 emission from on site consumption of fossil fuels which would then be calculated using the
‘Tool to calculate project or leakage CO2 emissions from fossil fuel combustion”
According Version 02 of the tool, the project emissions from fossil fuel combustion are calculated based
on the quantity of fuels (FO) combusted and the CO2 emission coefficient of those fuels, as follows:
Where:
PEFC,j,y Are the CO2 emissions from fossil fuel combustion in process
j during the year y; tCO2/y
FCi,j,y Is the quantity of fuel type i combusted in process j during the
year y (mass or volume unit/year)
COEFi,y Is the CO2 emission coefficient of fuel type i in year y
(tCO2/mass or volume unit)
I Are the fuel types combusted in process j during the year y
The CO2 emission coefficient COEFi,y can be calculated using Option B, as follows:
UNFCCC/CCNUCC
Where:
NCVi,y Is the weighted average net calorific value of the fuel type i in year y;
(GJ/mass or volume unit)
EFCO2,i,y Is the weighted average CO2 emission factor of fuel type i in year y
(tCO2/GJ)
I Are the fuel types combusted in process j during the year y
Therefore, the project emissions from Fuel Oil combustion in the boiler are calculated as follows:
Where:
PEFC,boiler,y Are the CO2 emissions from FO combustion during the year y; tCO2/y
FCFO,boiler, Is the quantity of FO combusted during the year y (mass or volume
unit/year)
y
NCVFO,y Is the weighted average net calorific value of FO in year y (GJ/mass or

volume unit)
EFCO2,FO,y Is the weighted average CO2 emission factor of FO in year y (tCO2/GJ)
In ex-ante emission calculation, the Fuel Oil consumption is assumed as zero. Because of Fuel Oil
consumed only for handling of biomass is expected so small. Therefore, the emissions from
consumption of Fuel Oil is considered very negligible or PEFC,y = 0 ex-ante.
The accurate emission from consumption of fuel oil is monitored and calculated in the monitoring period
CO2 emissions from electricity consumption by the project activity using the latest version of the “Tool to
calculate baseline, project and/or leakage emissions from electricity consumption”.
As the project activity will consume electricity, the “Tool to calculate baseline, project and/or leakage
emission from electricity consumption” Version 01 hereafter referred to as “Electricity Tool” (version 01)
is applied to calculate project emission from electricity consumption (PEEC,y).
Scenario A (electricity consumption from the grid) from the tool applies and emissions are calculated as
follows:
PEEC,y =  EC PJ , j , y  EFEL, j , y  1  TDL j , y  (Electricity Tool: 1)

j
Where:
Parameter Description Unit Source

Project emissions from electricity
PEEC,y tCO2e/yr Calculated
consumption in year y
Quantity of electricity consumed
ECPJ,j,y by the project electricity (MWh/yr) Calculated
consumption source j in year y
UNFCCC/CCNUCC
Emission factor for electricity (tCO /MWh) Please refer to section

EFEL,j,y 2
generation for source j in year y B.6.2
As per EB 39 Annex 7,
Average technical transmission “Tool to calculate
and distribution losses for baseline, project and/or
TDLj,y %
providing electricity to source j in leakage emissions from
year y electricity consumption”
version 1.
Since grid electricity will be used, thus EFEL,j,y = EFgrid,CM,y. Refer to Appendix 4 for calculation of the
combined margin grid emission factor for Viet Nam.
For the project activity, the project emissions due to electricity consumption are estimated in accordance
with “Tool to calculate baseline, project and/or leakage from electricity consumption” (version 01) in
which the Scenario A. Electricity consumption from the grid and the option A1 (p-4 of 16 of the tool)
are chosen.
Option A1 directs to calculate the combined margin emission factor of the applicable electricity system,
using the procedures in the latest approved version, i.e. version 02.2.1 of the “Tool to calculate the
Emission Factor for an electricity system” (EFELy = EFgrid,CM,y).
The project proponent has opted for approach (a) i.e. combined margin emission factor with ex-ante
approach where emission factor is fixed for the whole crediting period.
The grid emission factor has been calculated based on combined margin approach considering the data
from Grid Emission Factor Report approved by DNA Vietnam dated 26/03/ 2010 which is available at the
time of preparation and webhosting of the PDD. The combined margin emission factor worked out is
0.5764 tCO2/MWh.
Any other significant emissions associated with project activity within the project boundary;
There are no other significant emissions associated with the project activity within the project boundary
For geothermal project activities, project participants shall account for the following emission sources,
where applicable: fugitive emissions of carbon dioxide and methane due to release of non-condensable
gases from produced steam; and carbon dioxide emissions resulting from combustion of fossil fuels
related to the operation of the geothermal power plant.
The project activity is not a geothermal project.
The Project Participants confirmed that there is no greenhouse gas emission caused by the implementation
of the project activity which contributes to more than 1% of the expected annual emission reductions that
are not addressed by the applied methodology
Leakage
Paragraph 47 of the methodology AMS I.C/Version 19 states that- “If the energy generating equipment
currently being utilized is transferred from outside the boundary to the project activity, leakage is to be
considered.”.
UNFCCC/CCNUCC
As there is no transfer of energy generating equipment from outside the boundary to the project activity
as per equipment contract, all the equipments are brand-new, hence leakage is not considered.
Paragraph 48 of the methodology AMS I.C/Version 19 states that- “In case

collection/processing/transportation of biomass residues is outside the project boundary, CO2 emissions
from collection/ processing/ transportation of biomass residues to the project site shall be taken into
account as leakage. If biomass residues are transported over a distance of more than 200 kilometers due
to the implementation of the project activity then this leakage source attributed to transportation shall be
considered, otherwise it can be neglected.”
The collection and transportation of the biomass residue used in the project activity is done within a
distance of 200 kilometers from the project site (the rice husk purchase contract to define the collecting
point to the project site, bagasse is collected from the sugar mill next to the project site). Moreover, the
biomass residue used in the project activity that is bagasse and rice husk, is a waste product of agriculture,
and does not involve any processing. Hence, leakage on the account of
collection/processing/transportation of biomass residues is not applicable for the present case.
In the Attachment C to Appendix B “General Guidance on leakage in Biomass project activities” version
03, leakage identified in three types of emission sources:
Parameter Guidance on leakage Project activity status
Shift of pre project Shift of pre-Project activities are relevant This is not applicable since the
activities where in the absence of Project activity the project activity uses bagasse and
land areas would be used for other purposes rice husk which is a waste of the
(i,e agriculture) and the renewable biomass agricultures.
from existing or new forests
Emissions from the Potentially significant emission sources This is not applicable since the
production of the from the production of renewable biomass project activity uses bagasse and
renewable biomass can be rice husk which is a waste of the
(a) Emission from application of fertilizer; agricultures.
and
(b) Project emissions from clearance of land
Competing use for The Project developer shall evaluate ex ante In line with this guidance on
the biomass if there is a surplus of the biomass in the leakage associated with the use of
region of the project activity, which is not biomass material for project
utilized. If it is demonstrated (e.g, using activities, it is demonstrated
published literature, official reports, through biomass survey study that
surveys, etc.) that the quantity of available the quantity of surplus rice husk
biomass in the region (e.g 50 km radius) is available within a distance of 50
at least 25 % larger than the quantity of km from the project site is 120 %
biomass that is utilized including the larger than the quantity of rice
project activity, then this source of leakage husk that is utilized in the region
can be neglected otherwise this leakage including the project activity 15 .
shall be estimated and deducted from the The assessment has been
emission reductions conducted by third party. As the
surplus availability of biomass is
more than 25% leakage due to
competing use of biomass is not
considered.
Hence, leakage (LEy) is equal to 0.
15
The quantity of surplus rice husk available within a distance of 50 km from the project site is conducted by
Research and Technology Transfer Centre of Ho Chi Minh City Technology University dated 26th June 2011.
UNFCCC/CCNUCC
Emission reductions
As per paragraph 49 of AMS I.C/Version 19, the emission reductions calculations are as follows:
ERy  BE y  PE y  LEy
Where:
ERy Emission reductions of the project activity in year y (tCO2e)
BEy Baseline emissions of the project activity in year y (tCO2e)
PEy Project emissions of the project activity in year y (tCO2)
LEy Leakage emissions of the project activity in year y (tCO2)
B.6.2. Data and parameters fixed ex ante
Data / Parameter EFgrid,CM,y

Unit tCO2/MWh
Description Emission factor of the national power grid of Vietnam
Source of data Grid Emission Factor Report approved by DNA Vietnam dated 26th
March 2010
Value(s) applied 0.5764

Choice of data With reference to version 02.2.1 of “Tool to calculate the emission factor
or for an electricity system”
Measurement methods
and procedures Operating Margin Emission Factor 0.6464 tCO2/MWh
Build Margin Emission Factor 0.5064 tCO2/MWh
Combined Margin Emission Factor 0.5764 tCO2/MWh
Purpose of data Calculation of baseline emission

Additional comment This parameter has been fixed ex-ante.
B.6.3. Ex-ante calculation of emission reductions

>>
Baseline emissions:
Baseline emissions calculated as explained in section B.6.1 above are summarized as below.
BEy = EGy*EFgrid, CM, y
Where:
BEy Baseline emissions in year y, (tCO2e/yr) Calculated

EGy Electricity supplied by the Project activity to 64,800
the grid, (MWh)
UNFCCC/CCNUCC
EFgrid, CM, Combined margin CO2 emission factor for grid 0.5764
y connected power generation in year y
(tCO2/MWh)
Therefore:
Baseline emissions:
BEy, electric= EGy x EFgrid, CM, y = 0.5764tCO2/MWh x 64,800 MWh = 37,350 tCO2e/yr
Project emission
Project emissions are calculated mentioned in the section B.6.1, however for an-ante estimate, PEy is
considered as zero.
Leakage:
As explained in section B.6.1, leakage may be neglected.
Emissions reductions of the Project:

ERy = 37,350 – 0 – 0 = 37,350 tCO2e/yr
B.6.4. Summary of ex-ante estimates of emission reductions
Table B.6.4.1 Summary of estimation of overall emission reductions
Baseline Project Emission

Leakage
Year emissions emissions reductions
(t CO2e)
(t CO2e) (t CO2e) (t CO2e)
From 01/01/2014 to 31/12/2014 37,350 0 0 37,350
From 01/01/2015 to 31/12/2015 37,350 0 0 37,350
From 01/01/2016 to 31/12/2016 37,350 0 0 37,350
From 01/01/2017 to 31/12/2017 37,350 0 0 37,350
From 01/01/2018 to 31/12/2018 37,350 0 0 37,350
From 01/01/2019 to 31/12/2019 37,350 0 0 37,350
From 01/01/2020 to 31/12/2020 37,350 0 0 37,350
From 01/01/2021 to 31/12/2021 37,350 0 0 37,350
From 01/01/2022 to 04/07/2022 18,930 0 0 18,930
Total 317,730 0 0 317,730
Total number of crediting years 08 years, 06 months, 04 days
Annual 37,350 0 0 37,350
average over the crediting period
B.7. Monitoring plan

B.7.1. Data and parameters to be monitored
UNFCCC/CCNUCC
Data / Parameter QSteam, generated at boiler

Unit Tonnes
Description Quantity of steam generated at the boiler
Source of data Plant records
Value(s) applied 540,000 tonnes per annum
Measurement methods 1) Data Type: Measured
and procedures 2) Recording Frequency: Continuous monitoring, integrated
hourly and recorded monthly and yearly
3) Data Archiving: Paper/ Electronic
4) Monitoring Procedure: Steam Flow meter would be used to
measure the quantity of steam generated at the boiler
Monitoring frequency The meter would be calibrated annually.
QA/QC procedures This can be crosschecked with annual energy balance for the project
activity.
Additional comment Archived data will be kept 2 years beyond the crediting period.
Data / Parameter QSteam, supplied to the sugar process

Unit Tonnes
Description Quantity of steam supplied to the sugar process
Value(s) applied 270,000 tonnes per annum
and procedures 2) Recording Frequency: Continuous monitoring, integrated
4) Monitoring Procedure: Steam Flow meter would be used to
measure the quantity of steam supplied to the sugar process
Monitoring frequency The meter would be calibrated annually.
QA/QC procedures This can be crosschecked with annual energy balance for the project
activity.
UNFCCC/CCNUCC
Data / Parameter EGgross,y

Unit MWh
Description Gross electricity generated by the project activity
Value(s) applied 86,400
and procedures 2) Recording Frequency: Continuous monitoring, summarised
4) Monitoring Procedure: Energy Meters would be used to
measure the gross electricity generated by the project activity
Monitoring frequency The meter would be calibrated as per legal requirement (at least
once in two years)
QA/QC procedures This can be crosschecked with annual energy balance based on the fuel
type and quantity utilized in the project activity
Data / Parameter EGy

Unit MWh
Description Net power exported to grid
Source of data Joint Meter Reading Reports
Value(s) applied 64,800
and procedures 2) Recording Frequency: Continuous monitoring, summarized
4) Monitoring Procedure: Energy Meters would be used to measure
the net electricity delivered by the project activity to the Grid
Monitoring frequency As per the procedures of the Grid Company or as per legal
requirement (at least once in two years)
QA/QC procedures Measured net power exported to the grid would be cross checked
against the sales receipt/invoices.
UNFCCC/CCNUCC
Data / Parameter ECy

Unit MWh
Description Electricity Consumption of the project activity imported from the grid
Grid in year y
Source of data Electronic Energy meter
Value(s) applied 0
and procedures 2) Recording Frequency: Continuous monitoring, summarized
the electricity consumed by the project activity imported from the
Grid
Monitoring frequency As per the procedures of the Grid Company or as per legal
requirement (at least once in two years)
QA/QC procedures Measured power imported to the grid would be cross checked against
the sales receipt/invoices.
Data / Parameter FC DO,boiler,y

Unit Tonnes
Description Net quantity of Diesel oil in the boiler consumed in year y
Value(s) applied 0
and procedures 2) Recording Frequency: Daily/ Lot wise
4) Monitoring: Quantity of fossil fuel used in the project activity
would be measured continuously and recorded in log books
Monitoring frequency Yearly

QA/QC procedures The data would be cross checked from the store issue receipts.
Purpose of data Calculation of project emission
UNFCCC/CCNUCC
Data / Parameter NCVDO,boiler, y

Unit GJ/tonne
Description Weighted average net calorific value of fossil fuel type i in year y
Source of data IPCC default values at the upper limit of the uncertainty at a 95%
confidence interval as provided in table 1.2 of Chapter1 of Vol. 2
(Energy) of the 2006

and procedures 2) Recording Frequency: Annually
4) Monitoring: NCV of the fossil fuel type i would be tested by a
lab. NCV would be tested once in a year whenever the fossil
fuel type i is taken into use.

QA/QC procedures The standard procedures and equipments would be used to calculate the
NCV of fossil fuel
Data / Parameter EFDO, boiler, y

Unit tCO2/GJ
Description Weighted average CO2 emission factor of fuel type i in year y
Source of data IPCC default values at the upper limit of the uncertainty at a 95%
confidence interval as provided in table 1.4 of Chapter1 of Vol. 2
(Energy) of the 2006
IPCC Guidelines on National GHG Inventories
Measurement methods -
and procedures
Monitoring frequency -
QA/QC procedures -
Additional comment Since the usage of fossil fuel is not envisaged in the project activity, thereby,
ex post determination of the emission factor would be incorporated.
Archived data will be kept 2 years beyond the crediting period.
UNFCCC/CCNUCC
Data / Parameter B Biomass,i,y

Unit Tonnes
Description Quantity of the biomass type i consumed in year y
Source of data Plant Records
Value(s) applied Bagasse: 118,125
Rice Husk: 37,428

and procedures 2) Recording Frequency: Daily/ Lot wise
4) Monitoring: A weigher would be put up on the conveyer belt to
measure the exact input feed of the fuel. Quantity of each kind of
biomass used in the project activity would be measured separately
and continuously recorded in log books
Monitoring frequency -
QA/QC procedures A weigher would be put up on the conveyer belt to measure the exact input
feed of the fuel. This can also be crosschecked with annual mass/energy
balance for the project activity.
Data / Parameter M Biomass, i, y

Unit % water
Description Moisture content of the biomass type i in year y
Source of data Lab test reports
Value(s) applied Bagasse: 25%
Rice Husk:
20%
and procedures 2) Recording Frequency: Monthly
4) Monitoring: The moisture content of biomass of homogeneous
quality shall be monitored for each batch of biomass

moisture content of the biomass.
UNFCCC/CCNUCC
Data / Parameter NCVBiomass, i, y

Unit GJ/tonne
Description Net calorific value of the biomass type i in year y
Source of data Lab test reports
Value(s) applied Bagasse: 11.720
Rice Husk: 12.725
and procedures 2) Recording Frequency: Annually
4) Monitoring: Measurement would be done through the sample
testing once in a year. The test would be conducted in a
laboratory. The data would be monitored annually.

NCV of biomass.
Data / Parameter EGstand by,y

Unit Mwh
Description The electricity generated of project activity in case of back up when two
generators (2x1.5MW) were used
Source of data Plan record

Value(s) applied 0
and procedures 2) Recording Frequency: Continuous monitoring in case of back up
when two generators (2x1.5MW) were used.
the electricity generated by the project activity which supply to the
sugar cane factory
Monitoring frequency At least once in two years

QA/QC procedures Measured net power supply to the sugar cane factory would be cross
checked against the plan record
Additional comment -
B.7.2. Sampling plan

>>
Not applicable
B.7.3. Other elements of monitoring plan

>>
1. Monitoring Objective
UNFCCC/CCNUCC
The objective of the monitoring plan is to assure the complete, consistent, clear, and accurate monitoring
and calculation of the project emission reductions during the whole crediting period. The project owner is
responsible for the implementation of the monitoring plan, and the grid company cooperates with the
project owner.
2. Monitoring data
According to the methodology, the data to be monitored as follows:
 Electricity exported to the Grid by the project activity (MWh)

 Emission Reductions by the project activity (t CO2 e)
Outline of the monitoring plan of the Project activity: The operation and management structure for
monitoring the Project’s emission reductions has been outlined in the following figure.
Project Owner
CDM Project Manager

Review and Internal Audit
Plant Manager
Verification of measurement
Monitoring Officer Technical Officer Financial Officer

Measurement, calculation of Equipment Maintenance Collect data (sale
emission reduction and monitoring records/receipt) to double-check
report
Fig. B.7.2.1 The operation and management structure for monitoring
Responsibility:
The CDM Project Manager is responsible for the overall monitoring process. The CDM Project Manager
will be appointed by the Board of Director of Company (Project Entity).
The first step is to measure the electrical energy supplied to the grid and report daily operations, which
will be organized and checked by Plant Manager. The Plant Manager should appoint a Monitoring Officer
whose responsibility is to measure the electricity supplied to the grid and collect sale receipts or invoices.
UNFCCC/CCNUCC
All of bought rice husk will be recorded in purchasing books and relevant invoices. The monitoring
officer will prepare operational reports of the project activity, recording the daily operation of the power
plant; including operating periods, power generation, power delivered to the grid, the quantity of rice
husk procured, the quantity of rice husk consumed, etc. The measurement should be checked weekly by
the Plant Manager.
All data will be recorded with reference to the data archiving procedures and stored electronically in a
systematic and transparent manner. The monitoring officer will review the data archived and submit a
complete set of documentation, which indicates the calculation procedure as well as the ex-post emission
reduction estimate following the formulas in the methodologies to the Plant manager for internal
verification regularly.
Monitoring reports will be verified by Plant manager. Plant manager through sale records/receipt supplied
by financial officer will double-check the monitoring report.
In the case of sale receipts matching with monitoring data, monitoring reports will be verified by Plant
manager. Plant manager also appoints Technical Officer to be responsible for maintenance and calibration
of monitoring equipment according to regulated procedures. Finally, the monitoring reports will be
reviewed by the CDM Project Manager
Installation of electricity meters and their location is implementted in accordance with the electricity
purchase and connection agreement signed between Project Entity and Electricity of Vietnam (EVN) as
well as the Decision No.02/2007/QD-BCN dated 09 January 2007 by Ministry of Industry of Vietnam.
The net electricity supplied to the grid by the Project is calculated as the electricity exported to the grid
subtracted by the electricity imported from the grid. The electricity generated will be continuously
monitored and monthly recorded through the main meter installed in the transformer substation which is
owned and managed by the grid company (EVN). The main meter is a bidirectional meter, and the
accuracy of the main meter will be no less than 0.5s16. It will be the revenue meter used for measurement
the quantity of electricity that will be traded between the grid company and the Project Owner. As this
meter provides the main CDM measurement, it will be the key part of the verification process.
To ensure maximum availability of CDM monitoring data and to introduce quality control of the CDM
data, a backup meter will be installed in addition to the main meter. The backup meter is also a
bidirectional meter, and the accuracy of the meter will be no less than 0.5s17. It will be installed before the
main meter and owned and managed by the project entity. Before the installation of the backup meter, it
shall be calibrated by the accredited organization in accordance with national regulations (Decision No.
13/2007/QD-BKHCN dated 06/07/2007 and Decision No.25/2007/QD-BKHCN dated 05/10/2007 issued
by Ministry of Science and Technology). The electricity exported to Grid of Vietnam and electricity
imported to the project will be continuously measured and monthly recorded by the backup meter.
1. Data record:
The plant manager and monitoring officer should be trained for implementing the monitoring process
before the plant be put into operation to assure that they have fully understood their responsibilities and
the requirements of the monitoring plan. During the monitoring process, the monitoring officer should
record the meter once an day, and fill the data into electricity statistic sheet on site. All records cannot be
altered and all original data must be conserved. If the monitoring officer cannot reach the site to record,
the Plant Manager should assign other employee to record in time and return the record to the monitoring
officer without any delay when the officer arrives. Both people should sign on the record of handing over.
The Plant Manager should check and verify the electricity statistic sheet every week, monitoring report
and send these to the CDM Project Manager after verification.
16
Decision No 02/2007/QD-BCN Specification of power meters
17
Decision No 02/2007/QD-BCN Specification of power meters
UNFCCC/CCNUCC
2. QA & QC and procedures in case of emergency:

The value metered by the grid company will be taken as the actual supply to the grid and is used in the
calculation of the Project’s emission reductions. The value metered by the measuring instruments at the
output side of the transformer of the Project power plant will be used as a plausibility check of the value
metered by the grid company. Two electricity meters should be installed to the output side of the
transformer, one for daily measurement and one for backup, and they should have the same inaccuracy
level. If the meter for daily measurement needs to be repaired or calibrated, the backup meter should be
put into operation. If the backup meter fails in the meantime, the value from the grid company should be
used alone. The data should be cross-checked against relevant electricity sales receipts and/or records
from the grid for quality control. Since the data required to be monitored is consist with the data required
during project operation by the Project Owner and the grid company, the Power Purchase Agreement
between these two parties can be used as reference.
Data record will be archived for a period of 2 years after the issuance of the CERs to which the records
pertain.
SECTION C. Duration and crediting period

C.1. Duration of project activity
C.1.1. Start date of project activity
>>
15/01/2010 (The date of signing equipment contract)
C.1.2. Expected operational lifetime of project activity
>>
25 year 0 month
C.2. Crediting period of project activity
C.2.1. Type of crediting period
>>
A fixed 10 years crediting period has been chosen
C.2.2. Start date of crediting period

>>
01/01/2014 or date of registration of the project, whichever is later.”
C.2.3. Length of crediting period

>>
8 years, 06 months, 04 days
SECTION D. Environmental impacts
D.1. Analysis of environmental impacts
>>
According to the Vietnamese Law on Environment Protection issued in November 2005 and Decision No.
80/2006/ND-CP dated 09/08/2006, the Environmental Impact Assessment Report (EIA report) was
completed by the Project Owner, and approved by the People’s Committee of Gia Lai Province on
09/06/2009. According to the EIA report, environment impacts and social-economic impacts possibly
caused by the Project and protective measures adopted by the Project owner are analyzed as follows:
Identified environmental impacts Measures taken

Water pollution
On the construction site Connect the drain to the sedimentation tank and recycle after
UNFCCC/CCNUCC
sedimentation.
Water contaminated with oil and Set oil filter tank and further treat together with the wastewater from
dirt from vehicles the daily life activities.
Air pollution
A showering system is to be installed to dampen and control
Dust during the construction
dust/particulate matter.
Closed transport is adopted to reduce the dust during the
Dust during the transportation
material/construction waste’s transportation, and regular sprinkling.
Noise pollution
Choose equipment with low noise output, build sound barrier walls
Excavation during construction
and ban construction activity in the evenings.
Solid waste
Waste from the construction Waste will be sent to the specific landfill or recycled.
Waste from the staff Collect and send to local waste treatment station.
Resettlement
There was no household to be resettled due to the project located in
the sugar plant.
SECTION E. Local stakeholder consultation

E.1. Solicitation of comments from local stakeholders
>>
According to the regulation, the Project owner sent invitation to local stakeholders and the meeting had
been conducted on 26/05/2009 at the meeting room of Gia Lai Cane Sugar and Thermoelectricity Joint
Stock Company at 561 Tran Hung Dao, Cheo Reo Ward, Ayun Pa Town , Gia Lai Province, Viet Nam,
the Project Owner has presented on the project activity and asked for the comments of the following
identified local stakeholders on the impacts of the Project:
 The People’ Committee of Cheo Reo ward (local authorities);

 Fatherland Front Committee of Cheo Reo ward.
 Nearby householders.
All the comments and concerns have been documented in a meeting minute
E.2. Summary of comments received

>>
The issue and concerns raised by the stake holders and the clarifications provided by the project
developer are summarized below:
Queries raised by stakeholders Clarifications by the project developer

Question raised by Representative of The project developer clarified that the implementation of
People Committee the project activity would entail direct and indirect
How is the project useful for the local employment opportunities, solve dumping of agricultural
residences? waste
Question raised by a representative of The project developer clarified that the local villagers will
local village be given preference for the manpower requirement of
Will there be employment opportunities construction work as well as requirements during the
for skilled labour available locally? operation lifetime of the project. However, they would have
to go through a proper selection procedure.
Question raised by Representative of The project developer personnel clarified that they have
UNFCCC/CCNUCC
Fatherland Front Committee already implemented Environmental Compliance

Will the installation of machines create Commitment in the neighbouring area and no such problem
noise and disturb the surroundings? has been reported anywhere owing to advanced machine
design that ensures minimal noise.
E.3. Report on consideration of comments received

>>
The action to be taken by the project activity to the concerns of the stakeholders
Concerns Action to be taken

How is the project useful for the local  The local residence will be a priority for
residences? employment plan by the project
 The rice husk will be purchased from surrounding
rice mills to reduce the dumping
Will there be employment opportunities  The long term employment contracts will be
for skilled labour available locally? provided to the skilled labour with a further training
programme by the project
Will the installation of machines create  The project equipment selected as advanced
noise and disturb the surroundings? technology and environmental friendly
 Environmental protection plan will be implemented
by the project activity
SECTION F. Approval and authorization

>>
The letter of approval (LoA) from DNA Viet Nam for propose project was obtained on 19th August 2010.
Letter of approval is provided along with the PDD
-----
UNFCCC/CCNUCC
Appendix 1: Contact information of project participants
Organization name Gia Lai Cane Sugar and Thermoelectricity Joint Stock Company
Street/P.O. Box 561 Tran Hung Dao, Cheo Reo Ward, Ayun Pa Town, Gia Lai Province,
Vietnam
Building
City Gia Lai Province
State/Region
Postcode
Country Vietnam
Telephone + 84 59 3657245
Fax + 84 59 3657236
E-mail
Website
Contact person Mr. Cap Thanh Dung
Title Director
Salutation Mr.
Last name Cap Thanh
Middle name
First name Dung
Department
Mobile
Direct fax + 84 59 3657245
Direct tel. + 84 59 3657236
Personal e-mail dungct@secgialai.vn
UNFCCC/CCNUCC
Organization name Investment and Trade Consultancy Company Limited

(INTRACO CO., Ltd.)
Street/P.O. Box Unit 501, Thai Ha Building, No 18/11 Thai Ha Street, Dong Da District,
Hanoi City, Vietnam
Building Thai Ha Building
City Hanoi City
State/Region
Postcode
Country Vietnam
Telephone + 84 4 3 512 2580
Fax + 84 4 3 512 2582
E-mail dung.hoang@carbonvietnam.com
Website http://www.carbonvietnam.com
Contact person Hoang Anh Dung
Title Director
Salutation Mr
Last name Hoang
Middle name
First name Anh Dung
Department
Mobile
Direct fax + 84 4 3 512 2582
Direct tel. + 84 4 3 512 2580
Personal e-mail
UNFCCC/CCNUCC
Organization name Nordic Environment Finance Corporation NEFCO in its capacity as

Fund Manager to the NEFCO Carbon Fund (NeCF)
Street/P.O. Box Fabianinkatu 34, P.O. Box 249, FI-00171 Helsinki, Finland
Building
City Helsinki
State/Region
Postcode FI-00171
Country Finland
Telephone +358 10 6180 651
Fax +358 9 630 976
E-mail
Website
Contact person Ash Sharma
Title Vice President,
Head, Carbon Finance and Funds Unit
Salutation Mr.
Last name Sharma
Middle name
First name Ash
Department
Mobile
Direct fax + 84 4 3 512 2582
Direct tel. + 84 4 3 512 2580
Personal e-mail ash.sharma@nefco.fi
Appendix 2: Affirmation regarding public funding

UNFCCC/CCNUCC
No public funding from Parties included in Annex I of UNFCCC is involved in the proposed project
Appendix 3: Applicability of selected methodology
Refer to section B.2 of the PDD

UNFCCC/CCNUCC
Appendix 4: Further background information on ex ante calculation of emission reductions
BASELINE INFORMATION
UNFCCC/CCNUCC
Table 1. CO2 emission factor of IPCC18
Type of fuel Default carbon Default carbon CO2 emission factor (kg/TJ)
content (kg/GJ) oxidation Default value 95 % confidence interval
factor
Lower Upper
Gas/oil DO 20.2 1 74,100 72,600 74,800
FO 21.1 1 77,400 75,500 78,800
Anthracite 26.8 1 98,300 94,600 101,000
Bituminous 25.8 1 94,600 89,500 99,700
coal
Natural gas 15.3 1 56,100 54,300 58,300
Source: IPCC
Table 2 Electricity generation (in MWh) of power plants (2004-2008)19
Group of plant 2004 2005 2006 2007 2008

Hydropower 17,859 16,365 19,508 22,385 25,934
Coal-based thermal plant 6,500 7,872 8,989 9,836 10,055
Gas turbine 19,053 24,017 26,543 29,475 33,857
Oil-based thermal plant 1,379 1,612 1,044 1,834 1,482
Diesel firing FO 68 50 80 105 90
Diesel firing DO 43 16 25 42 15
Bagasse-based thermal plant 34 26 34 42 36
Import electricity 39 373 937 2,629 3,220
Total domestic generation 44,936 49,958 56,223 63,719 71,469
Total domestic + import 44,975 50,331 57,160 66,348 74,689
generation
Table 3. Electricity consumption, emission and generation of the most 3 recent years (2006, 2007,
2008)20
Plant group Fuel consumption Electricity to the grid Emission (tCO2)
Coal: tons, oil: kton (MWh)
Gas: mm3
2006
Coal-based thermal 5,645.86 8,989,230 11,823,610
plant
Gas turbine 26,542,978 12,479,578
Gas turbine using gas 5,743,235.28 18,838,764 12,244,651
Gas turbine using oil 70.14 233,582 234,927
Waste heat recovery 0 7,470,632 0
Oil-based thermal plant 397.65 1,043,991 1,327,593
Diesel firing FO 16.60 80,000 51,642
Diesel firing DO 6.39 25,000 20,495
Import 937,000 0
Total 37,618,119 25,702,918
2007
18
Source: Grid Emission Factor Report approved by DNA Vietnam dated 26/03/ 2010
19
20
UNFCCC/CCNUCC

plant
Gas turbine 29,474,918 13,116,063
Diesel firing FO 25.15 104,626 79,867
Import 2,629,000 0
Total 43,921,501 28,544,283
2008
plant
Gas turbine 33,857,135 14,716,799
Diesel firing FO 22.48 90,465 71,385
Import 3,220,000 0
Total 48,719,874 29,963,699
Table 4.Result of OM emission factor in 200821
Year Total electricity (MWh) Total CO2 emission OM2008 (tCO2/MWh)

tCO2
2006 37,618,119 25,072,918
2007 43,921,501 28,544,283 0,646422
2008 48,719,874 29,963,699
Total 130,259,494 84,210,900
Calculation of BM emission factor in 2008

Total electricity output of Vietnam electricity system in 2008 is: 74,689,635.97MWh
20% of total electricity output of Vietnam electricity system in 2008 is: 14,937,927.19MWh
Table 5.BM calculation(including List of plant) in 2008
Plant Operation Fuel consumption Electricity to the Emission

Start year Coal: Tons, oil: kton grid(MWh) (tCO2)
Gas: mm3
5 newly constructed plants
A Vuong 2008 Hydropower 168,103.50 ----
TuyenQuang 2008 Hydropower 1,136,112.18 ----
Dai Ninh 2008 Hydropower 1,145,108.50 ----
NhonTrach 2008 Gas 166.38 544,808.60 378,023
Ca Mau 1,2 2007 Gas 647.24 2,106,807.24 1,431,048
21
22
Three years generation weighted average.
UNFCCC/CCNUCC
Waste heat 2,728,872.00 ----

recovery
Total 7,829,812.02 ----
Newly constructed plants constitute 20 % of total electricity generation
A Vuong 2008 Hydropower 168,103.50 ----
SROC 2006 Hydropower 241,556.00 ----
PhuMieng
IDICO
SE SAN 3A 2006 Hydropower 394,895.70 ----
TuyenQuang 2008 Hydropower 1,136,112.18 ----
Dai Ninh 2008 Hydropower 1,145,108.50 ----
SE SAN 3 2006 Hydropower 1,131,614.00 ----
Quang tri 2007 Hydropower 250,804.40 ----
Uong Bi 2 2007 Coal 281,759 532,000.00 581,017.63
Na Duong 2005 Coal 532 627,930 883,846.37
Cao Ngan 2007 Coal 526 708,693 1,081,145.84
Formosa 2004 Coal 495 560,295.00 1,291,302.96
NhonTrach 2008 Gas 166.38 544,808.60 378,023.07
Ca Mau 1.2 2007 Gas 647.24 2,106,807.24 1,431,047.61
Waste heat 2,728,872.00
Recovery
Phu My 2.2 2004 Gas 1,159.75 4,141,980.00 2,510,751.14
Dam Phu My 2006 Gas 56.15 4,716.00 133,868.48
CaiLan 2007 FO 22.48 90,465.01 71,384.99
VINASHIN
Total 16,514,761.12 8,362,386.09
Calculation result for BM emission factor
Total emission 8,362,386.09 tCO2
Total electricity 16,514,761.12 MWh
BM 0.5064 tCO2/MWh
Table6: Published value OM, BM and CM by DNA Viet Nam 23 (EFgrid,CM,y)

Variable Value / Unit Source
Operating Margin Emission Factor 0.6464tCO2/MWh Grid Emission Factor Report (2003-
2008) approved by DNA Vietnam
dated 26/03/ 2010
Build Margin Emission Factor 0.5064tCO2/MWh Grid Emission Factor Report
approved (2003-2008) by DNA
Vietnam dated 26/03/ 2010
Combined Margin Emission Factor 0.5764tCO2/MWh Calculated
Appendix 5: Further background information on monitoring plan
All details of the monitoring plan are provided in Section B.7.2.
23
UNFCCC/CCNUCC
Appendix 6: Summary of post registration changes
Not applicable
-----
UNFCCC/CCNUCC
-----
History of the document
Version Date Nature of revision

04.1 11 April 2012 Editorial revision to change history box by adding EB meeting and annex
numbers in the Date column.
04.0 EB 66 Revision required to ensure consistency with the “Guidelines for completing
13 March 2012 the project design document form for small-scale CDM project activities”
(EB 66, Annex 9).
03 EB 28, Annex 34  The Board agreed to revise the CDM project design document for
15 December 2006 small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD
and CDM-NM.
02 EB 20, Annex 14  The Board agreed to revise the CDM SSC PDD to reflect guidance and
08 July 2005 clarifications provided by the Board since version 01 of this document.
 As a consequence, the guidelines for completing CDM SSC PDD have
been revised accordingly to version 2. The latest version can be found
at <http://cdm.unfccc.int/Reference/Documents>.
01 EB 07, Annex 05 Initial adoption.
21 January 2003
Decision Class: Regulatory
Document Type: Form
Business Function: Registration

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UNFCCC/CCNUCC

CDM – Executive Board Page 1

PROJECT DESIGN DOCUMENT FORM

PROJECT DESIGN DOCUMENT (PDD)

Version number of the PDD 08

Host Party(ies) Viet Nam

Estimated amount of annual average GHG 37,350 tCO2e

CDM – Executive Board Page 2

SECTION A. Description of project activity

The steam supplied to the sugar mill by two boilers

CDM – Executive Board Page 3

The proposed project will contribute to sustainable development in Vietnam as follows:

CDM – Executive Board Page 4

A.2. Location of project activity

A.2.3. City/Town/Community etc.

A.2.4. Physical/ Geographical location

Figure A4.1.4.1: Project location

CDM – Executive Board Page 5

A.3. Technologies and/or measures

Table A.4.2.1 The main technical parameters of the Project Activity

Parameters Value Source

Technology of project activity

The cogeneration project activity consists of the following main units:

The technical specifications of the key units are as follows:

Table A.4.2.2 Steam generator (Boiler)

Description Value Source

CDM – Executive Board Page 6

Table A.4.2.3 Steam Turbine

Description Value Source

A.4. Parties and project participants

Private and/or public Indicate if the Party involved

Gia Lai Cane Sugar and

Investment and Trade

Kingdom of Sweden Nordic Environment No

Contact details are listed in Appendix 1

NEFCO Carbon Fund (NeCF)

CDM – Executive Board Page 7

A.5. Public funding of project activity

 By the same project participants;

In addition, the following methodological tools are applied in this PDD:

CDM – Executive Board Page 8

B.2. Project activity eligibility

Applicability Criteria for AMS I.C. Project Activity

CDM – Executive Board Page 9

exceed 45 MW thermal (see paragraph 6 for the

(b) If the emission reductions of the cogeneration

(c) If the emission reductions of the cogeneration

CDM – Executive Board Page 10

(a) Charcoal is produced in kilns equipped with

(b) If charcoal is produced in kilns not equipped with

CDM – Executive Board Page 11

these are comparable e.g. source of biomass,

B.3. Project boundary

CDM – Executive Board Page 12

Vietnam National Electricity

Figure B.3.1 Flow diagram of the project boundary

Table B.3: Sources and gases included in or excluded from the

CDM – Executive Board Page 13

Source GHGs Included? Justification/Explanation

On-site fossil fuel CO2 Included May be an important emission source

N2O Excluded for simplification. This emission

B.4. Establishment and description of baseline scenario

Alternatives for the project activity included the following options: