Download as pdf or txt
Download as pdf or txt
You are on page 1of 65

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

CLEAN DEVELOPMENT MECHANISM


PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)
Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders’ comments

Annexes

Annex 1: Contact information on participants in the proposed small scale project


activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information

1
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Revision history of this document

Version Date Description and reason of revision


Number
01 21 January Initial adoption
2003
02 8 July 2005 • The Board agreed to revise the CDM SSC PDD to
reflect guidance and clarifications provided by the
Board since version 01 of this document.
• As a consequence, the guidelines for completing
CDM SSC PDD have been revised accordingly to
version 2. The latest version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
03 22 • The Board agreed to revise the CDM project design
December document for small-scale activities (CDM-SSC-
2006 PDD), taking into account CDM-PDD and CDM-
NM.

2
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity:


>>
Title of the project activity : 7.5 MW Biomass based Power Plant

CDM Document Version No. : 09

Date of completion of CDM PDD: 30/01/2012

A.2. Description of the small-scale project activity:


>>
Purpose of the project activity:

The aim of the project activity is to displace the fossil fuel generated electricity with
renewable Biomass based electricity. In absence of which the equal amount of energy
would be generated by fossil fuel fired power plants connected to the grid. The project
activity is to utilize renewable type biomass residues or biomass waste type1 as a source
of energy to generate 7.5 MW electricity. Utilization of such sub-types of renewable
biomass within biomass waste type will produce eco-friendly power, and achieve
sustainable development of the power generation industry and agriculture by reducing
CO2 emission and other GHG emissions. In the proposed project activity the biomass
will be combusted in the boiler to produce the steam, the steam at high temperature and
pressure will be fed to turbine generator which will generate 7.5 MW electricity. The
generated electricity will be exported to the regional grid. The part of the generated
electricity will be used to meet the auxiliary power requirement of the power plant, in
case of any grid failure and power plant failure emergency power will be provided by DG
set of 125 KVA.

Technology Employed:
The project activity involves the electricity generation from renewable biomass fired 1 X
34 tph boiler. Renewable biomass based boiler will generate super heated steam at 66
kg/cm2 pressure and at 495± 0C temperature. This superheated steam will be fed to the
turbine generator to generate 7.5 MW electricity. The super heated steam will be
produced from FBC boiler by firing with renewable biomass. The FBC boiler can also
use low grade Coal. Coal or coal based low grade fuel can be fired in boiler either along
with the Biomass or without biomass. Hence technically co fired system will be adopted
in the project activity.

The total emission reductions for the entire crediting period of 10 years have been
calculated as 286599 tCO2 equivalent.

1
Biomass residue and biomass waste considered as renewable biomass in line with EB23, Annex
18 would only be used in the project activity. ( in this type of biomass residue and biomass waste
type of biomass; several sub types of biomass like Rice Husk, Paddy straw, wood sawn dust, Sal
Seed DOC, Lops and Tops etc are also available in surplus in the region which are possible to be
used; however only Rice husk is considered for the ex ante estimation as it is the cheapest subtype
of biomass and available in highest surplus as compared to any other subtypes of the biomass
waste within this type)

3
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Contribution towards sustainable development

The project activity will lead towards the sustainable development and sustainable growth
by conserving the natural resources such as coal and producing green power.

Social well-being: Displacement of fossil fuel by renewable biomass leads to use of


agricultural residue as fuel. Additional income to farmers will generate through sale of
surplus agricultural residue. This additional income will improve the farm and living
infrastructure.

Economical well-being:
Employment generation for the local population which results in economic well being.
Generation of additional income for rural farmers due to creation of commercial value for
the neglected biomass in and around the project region would bring in additional
investment consistent with the needs of the people.

Technological well-being: The CDM project activity will encourage similar type of
projects to be implemented which would lead to reduction of GHG emission and would
help to conserve the natural resources.

Environmental well being: The proposed CDM project activity involves use of
renewable energy source for electricity generation instead of fossil fuel based electricity
generation hence reducing GHG emissions.

A.3. Project participants:


>>
Name of the Party Private and /or public Kindly indicate if the
Involved (host) indicates entity(ies) Project Party involved wishes to
a host party participants (as be considered as project
applicable) participant (yes/no)
India (Host party) Real Power Private Ltd No
(Formerly known as NRI
Power and Steel Pvt. Ltd) –
Private entity

A.4. Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity:


>>
A.4.1.1. Host Party(ies):
>> India
A.4.1.2. Region/State/Province etc.:
>> Chhattisgarh
A.4.1.3. City/Town/Community etc:
>> Village-Khamhardih Gram Panchayat Rambod, Block-Patharia, District-
Bilaspur

4
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

A.4.1.4. Details of physical location, including information


allowing the unique identification of this small-scale project activity :
>>
The project activity is located at South West side of Bilaspur City at a distance of
about 30 KM and about 7 KM on North West side from NH-200 at Village-
Rambod, Block-Patharia, District- Bilaspur State- Chhattisgarh, Country India.

The unique identification of the project is as follows:


Latitude of the project site: 21.94139 N,
Longitude of the project site : 81.98944 E

A.4.2. Type and category(ies) and technology/measure of the small-scale


project activity:
>>
The proposed project activity is a renewable energy generation project and falls under
category (ies)

Type I- Renewable Energy Projects

Project Category: I.D. Grid connected renewable electricity generation

Approved methodology: AMS.I.D. Version 16 Sectoral Scope: 01, EB-54.

Technology Employed:

5
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

The project activity involves the electricity generation from renewable biomass fired 1 X
34 tph boiler. Renewable biomass based boiler will generate super heated steam at 66
kg/cm2 pressure and at 495±5 0C temperature. This superheated steam will be fed to the
turbine generator to generate 7.5 MW electricity. The super heated steam will be
produced from FBC boiler by firing with renewable biomass. The FBC boiler can also
use low grade Coal. Coal or coal based low grade fuel can be fired in boiler either along
with the Biomass or without biomass. Hence technically co fired system will be adopted
in the project activity.

Technological specifications of the boiler and STG installed under project activity
are depicted in table below:

Technology employed Co-fired


Generation Capacity 7.5 MW
(Overload capacity 8 MW)
Fuel (1) Renewable biomass, ( as per
EB-23 Annex -18)
(2) Fossil fuel
Boiler Type – FBC
Steam capacity 34 TPH
Steam temperature 495± 50C
Steam pressure 66 kg/cm2
Efficiency 79±2 %
Turbine Turbine Type Impulse type bleed
cum Condensing
Inlet steam flow 32.1 TPH
Inlet steam temperature 4900C
Inlet steam pressure 64 kg/cm2
Turbine Efficiency 30.26%
Project life In the project activity new equipments
are installed and project life is expected
to be 15 years.
Estimated Plant Load factor First year - 80%, 2nd yr onwards – 90%

Energy balance mass flow:


Turbine energy requirement
Electricity generation
In let steam Flow =32.1 TPH
7500 KW
Steam Pressure : 64 kg/cm2
Temperature : 4900 C
Quantum of steam enthalpy kJ
/hour

Boiler steam energy production


Steam flow Capacity: 34 TPH
Fuel energy requirement
Steam pressure: 66kg/cm2
Boiler efficiency: 79±2 % Steam temperature: 495± 50C
Fuel energy required: 120012360.5 kJ/hr
Quantum of steam enthalpy
feed to Turbine 97210012
kJ/hr
6
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Utilization of renewable biomass will produce eco-friendly power, and achieve


sustainable development of the power generation industry and agriculture by reducing
CO2 emission and other GHG emissions. Thus technology used in the project activity is
environmentally safe and sound. And there is no technology transfer involved in the
project activity.

A.4.3 Estimated amount of emission reductions over the chosen crediting


period:
>>
The estimated amount of emission reductions due to the project activity for ten (10) years
under fixed crediting period option would be 286,599 tCO2e as per details on annual
emission reductions provided below:

Years Estimation of annual emission


reductions in tonnes of CO2e.
2011-12 25,761.00
2012-13 28,982.00
2013-14 28,982.00
2014-15 28,982.00
2015-16 28,982.00
2016-17 28,982.00
2017-18 28,982.00
2018-19 28,982.00
2019-20 28,982.00
2020-21 28,982.00
Total estimated reduction 286,599.00
(tonnes of CO2e)
Total number of crediting 10
years
Annual average of the 28,659.00
estimated reduction over the
crediting period (tCO2e)

A.4.4. Public funding of the small-scale project activity:


>>
No public funding from parties included in Annex 1 is available for the project activity

A.4.5. Confirmation that the small-scale project activity is not a debundled


component of a large scale project activity:

As per de-bundling guidelines specified in Appendix C to the Simplified Modalities and


Procedures for Small Scale CDM project activities, a proposed small scale project
activity shall be deemed to be a De-bundled component of a large project activity, if there

7
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

is a registered small scale project activity or an application to register another small scale
project activity under the CDM:

• with the same project participants;


• in the same project category and technology/measure; and
• Registered within the previous 2 years; and
• whose project boundary is within 1 Km of the proposed small-scale project
activity at the closest point.

The PP has no other registered project activity neither in same project


category/technology nor proposed any within 1 km of the the proposed small-scale
project activity at the closest point. Hence it is not a de-bundled component of a large
scale project activity.

SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology
applied to the small-scale project activity:
>>
Title: Grid Connected Renewable Electricity Generation

Reference: AMS.I.D. Version 16, Sectoral Scope 01, EB- 54

B.2 Justification of the choice of the project category:


>>
Sr.No Category requirement Applicability
1 This category comprises renewable The project activity is generation
energy generation units, such as of electricity from renewable
photovoltaic, hydro, tidal/wave, wind, biomass and generated electricity
geothermal and renewable biomass that will be supplied to regional grid
supply electricity to a national or a i.e. NEWNE.
regional grid.

Project activities that displace electricity Project activity would not


from an electricity distribution system displace electricity from an
that is or would have been supplied by at electricity distribution system but
least one fossil fuel fired generating unit would supply the electricity to the
shall apply AMS-I.F. regional grid. Thus AMS-1-F is
not applicable to the project
activity.
2 This methodology is applicable to The project activity is new green
project activities that (a) install a new field plant and prior to the project
power plant at a site where there was no activity there was no renewable
renewable energy power plant operating energy power plant in operation
prior to the implementation of the at the project site. Hence this
project activity (Greenfield plant); (b) applicable condition is justified
involve a capacity addition; (c) involve a and satisfied on the project
retrofit of (an) existing plant(s); or (d) activity.
involve a replacement of (an) existing

8
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

plant(s).
3 Hydro power plants with reservoirs that The project activity is not a
satisfy at least one of the following Hydro power plants but a
conditions are eligible to apply this renewable biomass based green
methodology: field power plant. Hence this
condition is not applicable on
• The project activity is project activity.
implemented in an existing
reservoir with no change in the
volume of reservoir;
• The project activity is
implemented in an existing
reservoir, where the volume of
reservoir is increased and the
power density of the project
activity, as per definitions given
in the Project Emissions section,
is greater than 4 W/m2;
• The project activity results in new
reservoirs and the power density
of the power plant, as per
definitions given in the Project
Emissions section, is greater
than 4 W/m2.

4 In the case of biomass power plants, no The project activity utilizes only
other biomass types than renewable renewable biomass type within
biomass are to be used in the project which sub types like i.e. Rice
plant. husk, Rice straw, De-oiled
salseed cake (DOC), Saw mill
wood dust, Lops and tops of trees
would be combusted in project
activity2 and these biomass
residue and biomass generated
from waste streams from
agriculture, forestry, and related
industries. These are renewable
biomass as per Annex 18 EB 23.
No other biomass type will be
used than renewable biomass.
Hence this applicability condition
is justified to the project activity.
5 If the new unit has both renewable and The project activity is new green
non- renewable components (e.g., a field plant to generate 7.5 MW
wind/diesel unit), the eligibility limit of electricity, which is less than
15 MW for a small-scale CDM project 15MW.
activity applies only to the renewable

2
Project activity will utilizes Rice husk but in emergency conditions other define renewable
biomass would be combusted in the project activity.

9
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

component. If the new unit co-fires The project activity is a new


fossil fuel, the capacity of the entire unit renewable Biomass and fossil
shall not exceed the limit of 15 MW. fuel co-fired unit in which power
generation of entire unit will not
exceed the limit of 15 MW
during the entire crediting period.

Hence this criterion is justified


on Project activity and
requirement is satisfied.
6 Combined heat and power (co- The project activity does not
generation) systems are not eligible comprise of combined heat and
under this category power (co-generation) system.

Hence this criteria is not


applicable on Project activity
7 In the case of project activities that The project activity is new green
involve the addition of renewable energy field plant does not involve
generation units at an existing renewable addition of renewable energy
power generation facility, the added generation unit at an existing
capacity of the units added by the project renewable power generation
should be lower than 15 MW and should facility.
be physically distinct from the existing
units. Hence this criteria is not
applicable on Project activity.
8 In the case of retrofit or replacement, to The project activity is new green
qualify as a small-scale project, the total field plant does not involve
output of the retrofitted or replacement retrofitting or replacement.
unit shall not exceed the limit of 15 Hence this criteria is not
MW. applicable on Project activity.

The project activity meets the applicability criteria of the methodology AMS I.D. Version
16, EB 54 and
the application of the methodology is thus justified.

Since, the maximum electricity generating capacity is limited by the design of the plant
and machinery and by the license issued by the state authorities; hence, there is no
possibility of exceeding the limits of small-scale CDM project activity during the
crediting period and the project activity will remain as a small- scale project activity.

Since the generated electricity is intended for export to the regional grid system, the
applicable methodology is AMS-I.D. The latest version of the methodology, Version 16
is applied.

B.3. Description of the project boundary:


>>
In accordance with approved methodology AMS.I.D. Version 16 /paragraph 9, the
physical, geographical site of the renewable generation source delineates the project
boundary as outline below:

10
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Project Boundary

GEOGRAPHICAL BOUNDARY OF REGION - 50 KM

BIOMASS STORAGE
COAL
STORAGE

BOILER

STEAM TURBINE
GENERATOR

AUXILIARY
ELECTRICITY CONSUMPTION
GENERATED

Grid import + Emergency


power from DG set
GRID

The project boundary covers from the point of fuel supply to the point of power export to
the grid where the project proponent has full control i.e. fuel storage , boiler, steam
turbine generator and all other power generating equipments, and auxiliary consumption
units.

B.4. Description of baseline and its development:


>>
Baseline:
As per AMS.I.D Version 16 paragraph 10, “If the project activity is the installation of a
new grid-connected renewable power plant/unit, the baseline scenario is the electricity
delivered to the grid by the project activity that otherwise would have been generated by
the operation of grid-connected power plants and by the addition of new generation
source”.

Justification:
The project activity is the installation of a new grid-connected renewable power plant,
hence as per approved small scale methodology AMS I D the baseline scenario is the
electricity delivered to the grid by the project activity that otherwise would have been
generated by the operation of grid-connected power plants and by the addition of new
generation sources.Further to this generating electricity from the project activity would
be delivered to regional grid “NEWNE” hence “NEWNE” grid is identified as baseline.

As per AMS.I.D Version 16 paragraph 11:

11
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

The baseline emissions are the product of electrical energy baseline EGBL, y expressed in
MWh of electricity produced by the renewable generating unit multiplied by the grid
emission factor.

BEy = EGBL, y* EF CO2grid,y

Where:
BEy = Baseline Emissions in year y (t CO2)
EGBL, y = Quantity of net electricity supplied to the grid as a result of the
implementation of the CDM project activity in year y (MWh)
EF CO2grid,y = CO2 emission factor of the grid in year y (t CO2/MWh)

As per methodology AMS.I.D Version 16 para12, The Emission Factor can be


calculated in a transparent and conservative manner as follows:

(a) A combined margin (CM), consisting of the combination of operating margin


(OM) and build margin (BM) according to the procedures prescribed in the .Tool
to calculate the Emission Factor for an electricity system.

OR

(b) The weighted average emissions (in t CO2/MWh) of the current generation mix.
.The data of the year in which project generation occurs must be used.

PP selected option (a) and Combined margin (CM) is calculated according to the
procedures prescribed in the “Tool to calculate the Emission Factor for an electricity
system” Version 02.2 EB- 61 Annex 12. And the emission factor calculated as per CM
approach is fixed ex-ante for the entire crediting period. And detail procedure is given in
Section B 6. 1.

Key variable and parameters used for baseline emission calculation are as follows:

Variable Description Data source


EFCO2.grid,y CO2 emission factor of the grid in
year y (t CO2/MWh) is calculated CEA database Version
as per “Tool to calculate the 4
Emission Factor for an electricity
system” Version 02.2 EB- 61
Annex 12
EG BL,y Quantity of net electricity supplied Calculated based on
to the grid as a result of the JMR reading certified
implementation of the CDM project by CSEB personal and
activity in year y (MWh). representative of PP,
fuel consumption of
each of the fuels
combusted in the
project activity and
specific energy
consumption.

12
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Renewable Biomass:

A biomass assessment survey was carried out and the details of the biomass generation
and consumption of the biomass fuels in the project region (within the radius of 50 km
from the project site) have been presented in the Biomass assessment report furnished to
the DOE. Renewable Biomass assessment report established that in project activity
region renewable biomass is in surplus state.

B.5. Description of how the anthropogenic emissions of GHG by sources are


reduced below those that would have occurred in the absence of the registered
small-scale CDM project activity:

NATIONAL POLICY RELEVANT TO BASELINE –


In compliance with section 3 of the Electricity Act 2003 the Central Government hereby
notifies the National Electricity Policy 3
• Feasible potential of non-conventional energy resources, mainly small hydro,
wind and bio-mass would also need to be exploited fully to create additional
power generation capacity. With a view to increase the overall share of non-
conventional energy sources in the electricity mix, efforts will be made to
encourage private sector participation through suitable promotional measures
• Coal would necessarily continue to remain the primary fuel for meeting future
electricity demand.
• Imported coal based thermal power stations, particularly at coastal locations,
would be encouraged based on their economic viability. Use of low ash content
coal would also help in
reducing the problem of fly ash emissions.
• Significant Lignite resources in the country are located in Tamil Nadu, Gujarat
and Rajasthan and these should be increasingly utilized for power generation.
Lignite mining technology needs to be improved to reduce costs.

Table 1: Sector- wise installed capacity (MW) as on 31.03.20084.

Sector Hydro Coal Gas Diesel Nuclear Renewable Total


State 26086.76 42047.50 3834.22 604.61 0.00 2200.04 74773.13
Central 8592.00 29010.00 6638.99 0.00 4120.00 0.00 48360.99
Private 1230.00 4991.38 4183.00 597.14 0.00 9994.53 20996.05
All 35908.76 76048.88 14656.21 12- 4120.00 12194.57 144130.17
India 01.75

It is evident from Table 1 that the installed capacity is predominantly coal based and
therefore, it is a major source of carbon dioxide emissions in India. Hence, there exists
scope for reducing the CO2 emissions in the country by way of fuel substitution,

3
The Gazette of India ,Extra Ordinary, Part I –Section 1, Ministry of Power (No.
23/40/2004-R&R (Vol.II) dated 12th, February, 2005

4
http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver4.pdf

13
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

increased use of renewable energy sources, and also by improving the thermal efficiency
of power generation.

Investment in biomass power project is not mandatory in host country. There is no


national or local law or regulations that mandate this investment. Setting of biomass
power project in the state of Chhattisgarh is a voluntary activity.

Demonstration of serious CDM consideration for the project activity:

As per EB49-Annex 22 since start date of the project activity is before 02/08/2008, hence
its fall under the category of “Existing Project Activities”

The chronology of key events is as follows (Real action is highlighted in bold):

S.No. Event Date Project CDM status


implementation
1 Board Resolution to invest 01/05/2004 - Consideratio
in Project Activity of 6 n of CDM
MW with the support of support
CDM.
2 Application submitted 05/05/2004 Action towards -
before CREDA for NOC to implementation
establish the 6 MW power of project
plant in Block- Bilha activity.
Bilaspur (C.G.)
3 Board Resolution for the 07/05/2004 - Step towards
appointment of first CDM CDM
consultant viz. SR registration.
Corporate Consultants
Pvt. Ltd.
4 NOC received from CREDA 25/05/2004 Action towards
for setting up of 6 MW implementation
biomass based power of project
project. activity.
5 Board Resolution 15/06/2004 Action towards -
regarding decision to implementation
change the capacity of of project
Project activity from 6MW activity.
to 7.5 MW.
6 Application to CREDA for 25/06/2004 Action towards -
enhancement of capacity and implementation
rectification in name of of project
location. activity.
7 Permission from CREDA for 01/07/2004 Action towards -
change of project capacity implementation
(from 6 MW to 7.5 MW) of project
and rectification in location activity.
from Block Bilha, District
Bilaspur to village Rambod
Block Patheria, District

14
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Bilaspur.
8 Advance paid to 22/11/2004 First real -
manufacturer (Thermax) action towards
for supply of plant project
equipments. implementation
(Start date of
Project
activity).
9 Interview before DNA for 22/09/2005 - Step towards
HCA CDM
registration
10 HCA received from DNA 9/11/2005 . Step towards
CDM
registration
11 Board resolution for the 26/06/2006 - Step towards
appointment of additional CDM
internal CDM Consultants registration
(namely “Beneficial
securities Pvt. Ltd).
12 Correspondence between 03/07/2006 - Step towards
NRI’s and Beneficial CDM
Securities Pvt. Ltd. (Internal registration
CDM consultant) regarding
CDM registration activity
13 Date of Commissioning of 31/08/2006 Project activity -
project activity. commissioning
completed.
14 Commercial production 26/12/2006 Step towards -
started Project
implementation
15 ERPA signed between PP 23/01/2007 - Step towards
and SBM Gmbh CDM
registration
16 Correspondence between 23/04/2007 - Step towards
NRI’s and Beneficial 20/06/2007 CDM
Securities Pvt. Ltd. (Internal 26/06/2006 registration
CDM consultant) regarding 29/06/2007
CDM registration activity
17 Email Offer for CDM 21/08/2007 - Step towards
consultancy from Zenith CDM
Energy Services registration
18 Appointment of Third 02/10/2007 - Step towards
CDM Consultants (namely CDM
“Zenith Energy Services”) registration
19 Email correspondence from 13/11/2007 - Step towards
Zenith Energy Services- CDM
requesting information to registration
move further towards CDM
registration.
20 Quotation for service of 17/11/2007 - Step towards

15
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

CDM validation by DNV CDM


registration
21 Email correspondence from 17/12/2007 - Step towards
Zenith Energy Services- for CDM
Stakeholder consultation, registration
DOE appointment.
22 Letter from PP to Zenith 15/01/2008 - Step towards
inquiring about CDM status CDM
registration
23 Board resolution for 15/05/2008 Administrative -
inclusion of new director action. The
process of
change in
management of
Project activity.
24 Board Resolution for 08/09/2008 - Step towards
Termination of Third CDM CDM
consultant i.e. Zenith Energy registration
Services.
25 Termination letter issued to 09/09/2008 - Step towards
third CDM consultant i.e. CDM
Zenith Energy Services registration
26 Agreement between M/s. 10/10/2008 - Step towards
I.T.F.C. Ltd. and NRI CDM
registration
27 Local Stake holder 28/10/2008 - Step towards
comments were invited CDM
through Newspaper registration
advertisement.
28 Local Stakeholders meeting 28/11/2008 - Step towards
CDM
registration
29 DOE appointment 30/03/2009 - Step towards
CDM
registration
30 Change in name of company 21/05/2009 Administrative -
from M/s. NRI Power and action. And
Steel Private Ltd to M/S Registrar of
Real Power Private Ltd. companies
issued fresh
Certificate of
incorporation
consequent to
change of
Name.
31 Revised HCA issued in the 15/06/2010 Step towards
name of M/s Real Power CDM
Private Ltd. registration

Real and continuing actions to secure CDM status -

16
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

The chronology of events clearly demonstrate that there is less than 2 years of a gap
between the documented evidence hence it can be concluded that continuing and real
actions were taken to secure CDM status for the project activity.

In summary, serious action to ascertain CDM benefits was taken in the form of
appointment of CDM consultant 4 months prior to the project start date. Hence, as a
result the project activity received Host country approval (on 09/11/2005) viz. 11 months
prior to the start of commercial production.

However, due to lack of response from the appointed consultant, a new CDM consultant
(Zenith Energy) was appointed on 02/10/2007 to expedite the CDM process.

Due to non registration of the project as a CDM activity, the project started facing loss5
and the original promoter’s Dr Y.R Krishna and Mrs. Y Kamla transferred their rights to
Mr. Pawan Agrawal and Mr. Ramesh Kumar Agrawal from dated 15/05/2008 onwards.
Due these episodes CDM processing work of the project activity could not take shape in
time. New directors had experience of power generation and CDM process too. And the
new promoters appointed a new CDM consultant viz. ITFC Limited vide work order
dated 10/10/2008. The new CDM consultant expedited the CDM process and also
assisted in appointment of a DOE on 30/03/2009.

Additionality:

In accordance with Attachment A to Appendix B and “Non-binding best practice


examples to demonstrate additionality for SSC project activities” EB-35 Annex 34, the PP is
required to provide explanation to show that project activity would not have occurred due
to at least one of the following barriers:

(a) Investment barrier: a financially more viable alternative to the project


activity would have led to higher emissions;
(b) Access-to-finance barrier: the project activity could not access
appropriate capital
without consideration of the CDM revenues;
(c) Technological barrier: a less technologically advanced alternative to the
project activity involves lower risks due to the performance uncertainty
or low market share of the new technology adopted for the project
activity and so would have led to higher emissions;
(d) Barrier due to prevailing practice: prevailing practice or existing
regulatory or policy
requirements would have led to implementation of a technology with
higher emissions;
(e) Other barriers such as institutional barriers or limited information,
managerial resources, organizational capacity, or capacity to absorb new
technologies.

5
Audit reports of PP certified by the statutory auditors.

17
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

PP has identified investment barrier as the most relevant barrier to the Project activity.

Investment Barrier:

Selection of appropriate investment analysis method: The alternative to project


activity is supply of electricity from grid, thus as per paragraph 19 of “Guidelines on the
assessment of investment analysis” benchmark approach is considered appropriate.

Selection of financial indicator : As per “Guideline on the assessment of Investment


Analysis, EB 61 Annex 13 ” The financial indicator identified for carrying out the
investment analysis is post-tax project Internal Rate of Return (IRR).

Appropriateness of choosing Benchmark: As per “Guideline on the assessment of


Investment Analysis, EB 61 Annex 13” Local commercial lending rates or weighted
average costs of capital (WACC) are appropriate benchmarks for a project IRR. PP has
selected post-tax project IRR to demonstrate the additionality hence as per para 12 of
Annex 13 EB 61 Post-tax WACC is applied as appropriate Benchmark for the project
activity.

As per paragraph 12 of “Guideline on the assessment of Investment Analysis, EB 61


Annex 13” PP has selected post-tax WACC as benchmark. For WACC calculation, the
cost of equity has been determined using the Capital Asset Pricing Model (CAPM)
considering Beta value of listed power generating companies in India. The CAPM
economic model is widely used to determine the required/expected return on equity based
on potential risk of investment.

WACC Calculation
Weighted average cost of capital (WACC) is calculated as weighted average cost of
equity and cost of debt as illustrated below:

Post Tax WACC =


[Debt/ (Debt+Equity)]*[Cost of Debt] *[1- Tax] + [Equity/
(Debt+Equity)]*[Cost of Equity ]

(a) Cost of debt :

The cost of debt has been taken as the average prime lending rate of nationalized
commercial bank prevailing at time of decision i.e 10.62%.

Tax: As per 80 IA of Income Tax Act; Renewable biomass power projects in


India are eligible to claim tax holiday for 10 consecutive years from the first 15
years, in such cases where the normal tax is exempted and the project has to pay
Minimum alternative tax only. Hence applicable tax is work out 8.42%.

b) Cost of Equity:
Expected return on equity has been arrived at using the Capital Asset Pricing
Model (CAPM). In estimating the expected return on equity, conservative and

18
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

published data has been used to arrive at beta value and market risk premium for
the project type.

Cost of Equity = (risk-free rate of return + beta *Market Risk Premium)

Risk free return:


The weighted average yield of long term Government of India Securities has
been taken as risk free return in the Indian economy. As per the Annual Report,
Reserve Bank of India, 2002-03, the weighted average yield for long term
Government of India security during year 2002-03 (value available during the
year of decision making) is 7.34%. The same has been used in the calculations.

Beta:
The beta is determined by referring return on publicly listed companies that are
engaged in similar type of business.

Following options to refer beta value

1. The Regression beta for an asset estimated by regressing the returns on


any asset against the index representing the market portfolio, over a
reasonable time period of five years:

Rj = a + b RM

Where,
Rj = is the return on investment j,
RM = is the return on the market index.
'
b" = slope of the regression is the beta

2. As the project activity type is power generation therefore power


generation companies working since last five years on the date of
decision listed on any stock exchange in India (both Bombay Stock
Exchange and National Stock Exchange) is referred.

3. The adjusted beta is determined by referring Regression beta

Adjusted Beta = Regression Beta (0.67) + 1.00 (0.33)

Name of company Scrip code Regression beta Adjusted


beta
TATA POWER 500400 1.38 1.26
REL INFRA 500390 0.95 0.97
CESC 500084 1.34 1.23
GIPCL 517300 1.19 1.13
BIRLA POWER 517001 1.04 1.03
SOLUTIONS
Average of adjusted beta 1.12

Average beta value based on adjusted beta values of power generation companies
worked out to be 1.12.

19
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Market Risk Premium:


In CAPM model the market risk premium is estimated by looking the difference
between average return on stocks and average return on government securities
over an extended period of time. Stock index has been taken to represent the
market return. BSE SENSEX has been taken to represent the market return. The
Market return arrived at based on the average annual return of the listed
Securities forming part of BSE SENSEX index starting from the base period 31
March 1978, prior to the Investment decision was 100. The value of the index as
on 31 March 2004 is 5,590.60 which give market return of 17.46%. Hence the
market risk premium workout 10.12%.

The above two values (cost of debt and cost of equity) have been used to
calculate WACC, which works out to be 12.41%.

WACC is calculated considering following parameters:

1 Market debt rate 10.62% RBI BPLR rates at the


time of decision making
2 Applicable tax rate (MAT) 8.42% Income Tax Act
3 Debt Equity ratio 70:30 CERC guidelines
4 Market Return 17.46% BSE Sensex data
5 Risk free return 7.34%6 Risk free Govt. Bond rate
6 Average adjusted Beta 1.12 Calculated based on BSE
data
7 Equity cost as per CAPM 18.69% Calculated
model

Based on above parameters, the Post Tax WACC works out to be 12.41 %.

The post-tax Project IRR has been calculated based on following parameters and
assumptions
Selection of appropriate biomass sub-type : In the proposed project activity the
biomass type waste or residue only is proposed to be used. As per biomass assessment
within type the following sub-types of biomass are also available in addition to the Rice
Husk, however the available of rice husk is most abundant and price wise most
economical or the cheapest sub-type of biomass fuel. In view of this the price of rice
husk alone has been considered for calculation of financial indicator. The prices of
different types of biomass are given below:

Sr.No. Sub-types of biomass Prices (in INR/MT)


1. Rice Husk 550.00
2. Rice Straw 850.00
3. Saw Mill Wood dust 1250.00
4. SAL DOC 1200.00
5. Lops and Tops 1500.00

6
http://rbi.org.in/scripts/AnnualReportPublications.aspx?Id=393

20
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

It may also be noted that the Chhattisgarh State Electricity Regulatory Commission as
well CREDA (Govt, of Chhattisgarh undertaking) have also considered only the rice husk
as the biomass subtype fuel for assessment of tariff for the grid.

Since the prices of biomass sub-types are much higher than Rice Husk thus if IRR is
calculated based on those than it would work out to be much lower than assessed by
considering Rice Husk, hence as a conservative approach not required to be calculated
based on other sub-type of biomass. Besides this none of the registered biomass project
activities located in the state of Chhattisgarh have considered these other sub-types of
biomass as an alternative biomass fuel although all these are also available in abundance
but are costlier than the rice husk. As discussed in the biomass assessment report other
sub types of biomass have some alternative usages like rice straw used for fodder as well
as paper making, saw mill wood dust and lops and tops are widely used as domestic fuel,
SAL DOC was also having some usage for which it was being exported as per the Annual
Report of The Solvent Extractors Association of India. However in the current years the
same is not being exported and normally used as fuel by the solvent plant units and
surplus is sold to biomass power plant. The market forces play an important role in
determining the prices of all these sub type of biomasses in which rice husk being highest
in surplus and being difficult for being used by other fuel requiring systems than the
boiler operators. Therefore rice husk is the cheapest type of biomass sub type of fuel. Due
to the market logic all other fuel become costlier for the reasons that they also have some
alternative usages whereas the rice husk is having only one use that is for being used as
fuel or left in the atmosphere for decay in open or combusted without any use. In view of
this use of rice husk only for the financial additionality calculations is most conservative
and most appropriate.

Parameter Unit Value Source


Installed capacity MW 7.5 DPR
Auxiliary Power
consumption % 10% DPR
Operating days Days 330 DPR
CERC
Debt-equity 70:30 guideline
O&M costs INR Millions 12.34 DPR
Price of Rice Husk7 INR/MT 550 DPR
Price of fossil fuel Quotation from
(Coal) INR/MT 1250 fuel supplier
Fuel Ratio
MNES
Biomass 75% guidelines
MNES
Fossil Fuel 25% guidelines
Annualised PLF 80% for first DPR submitted
year to CREDA for
Then 90% implementation
% second year approval (As

21
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

onwards per Annex-11


EB-48)
10.62% RBI BPLR
rates at the time
Interest Rate on Term of decision
Loan % making
10.62% RBI BPLR
rates at the time
of decision
Interest Rate on W.C. % making
Prevailing tariff
rate at the time
of decision
making,
Chhattisgarh
State
Government
Notification
dated
08/04/2002 and
subsequent
notification
dated
d Power export Tariff INR/kWh 2.25 04/02/2003.
The Indian
Companies Act
1956, Section
205, under
Depreciation on schedule xiv,
Building and Civil % 3.34 heading I.(b)
The Indian
Companies Act
1956, Section
205, under
Depreciation on Plant schedule xiv,
and Machinery % 5.28 heading I.(a)
Project Cost INR Million 282.35 DPR
Estimated
based on
Price of carbon credits Euro/CER 8 market trend
Foreign
exchange rates
Exchange rate INR/Euro 52.50 - RBI
Calculated
based on boiler
efficiency 77%
with only
biomass fire
SEC BIOMASS MJ/MWh 16832.90 situation
SEC COAL MJ/MWh 15248.63 Calculated

22
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

based on boiler
efficiency 85%
with only fossil
fuel (coal) fire
situation
Revised IRR calculation was done in response to “request for review” considering the
difference boiler efficiency for different type of fuel as per the SEC (SECBIOMASS
16832.90 MJ/MWh and SECCOAL 15248.63 MJ/MWh) arrived in the table given above
and Post Tax Project IRR was found to be 6.66%.

Outcome of financial analysis based on the above parameters is found as below:

S.No. Scenario IRR (without CDM) IRR (with CDM)

Considering SECBIOMASS= Considering SECBIOMASS=


16832.90 MJ/MWh and 16832.90 MJ/MWh and
SECCOAL=15248.63 SECCOAL=15248.63
MJ/MWh MJ/MWh
1. Project
IRR for 6.66% 12.02%
project
activity
2. Benchm 12.41%
ark
WACC

Sensitivity analysis: As per “Guidelines on the assessment of investment


analysis” para graph 20 Only variables, including the initial investment cost, that
constitute more than 20% of either total project costs or total project revenues
should be subjected to reasonable variation (all parameters varied need not
necessarily be subjected to both negative and positive variations of the same
magnitude), and the results of this variation should be presented in the PDD and
be reproducible in the associated spreadsheets.. Where a DOE considers that a
variable which constitute less than 20% have a material impact on the analysis
they shall raise a corrective action request to include this variable in the
sensitivity analysis.

Thus PLF, project cost, cost of fuel and O&M cost have been considered for
sensitivity analysis.

Sensitivity analysis:

The sensitivity analysis keeping in view the 10% variation in PLF, Project cost,
Fuel cost and O&M cost which are parameter contributing more than 20% of
revenue and cost from decision making contest is done and data obtained is
presented below

A. Increase in PLF
S.No. Scenario

23
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

IRR (without CDM)


Considering SECBIOMASS= 16832.90
MJ/MWh and SECCOAL=15248.63
MJ/MWh
1. Project case without CDM
revenue 6.66%
2. Increase in PLF 10%
8.95%
3. Decrease in PLF 10%
4.25%
4. Bench Mark WACC 12.41%

B. Decrease in fuel cost


S.No. Scenario
IRR (without CDM)
Considering SECBIOMASS= 16832.90
MJ/MWh and SECCOAL=15248.63
MJ/MWh
1. Project case without CDM
revenue 6.66%
2. 10% decrease in fuel prices
9.75%
3. 10%Increase in fuel price
2.83%
4. Bench Mark WACC 12.41%

C. Decrease in project cost


S.No. Scenario
IRR (without CDM)
Considering SECBIOMASS= 16832.90
MJ/MWh and SECCOAL=15248.63
MJ/MWh
1. Project case without CDM
revenue 6.66%
2. 10% decrease in Project
Cost 8.55%
3. 10%Increase in Project
cost 5.07%
4. Bench Mark WACC 12.41%

D. Decrease in O&M Cost


S.No. Scenario
IRR (without CDM)
Considering SECBIOMASS= 16832.90
MJ/MWh and SECCOAL=15248.63
MJ/MWh
1. Project case without CDM
revenue 6.66%
2. 10% decrease in O&M
Cost 7.46%

24
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

3. 10% increase in O&M


Cost 5.83%
4. Bench Mark WACC 12.41%

As given in the table above the IRR without CDM remains below benchmark i.e. 12.41%,
whereas with CDM support this crosses the benchmark level hence satisfies the
additionality requirement that CDM support helps in alleviating the barrier to the
investment.
B.6. Emission reductions:

B.6.1. Explanation of methodological choices:


>>
Baseline emissions
According to AMS I.D. para 11

The baseline emissions are the product of electrical energy baseline EGBL, y expressed in
MWh of electricity produced by the renewable generating unit multiplied by the grid
emission factor.

BEy = EG BL,y * EFCO2, grid,y

Where:
BEy = Baseline Emissions in year y; t CO2
EGBL, y = Quantity of net electricity supplied to the grid as a result
of implementation of the CDM project activity
in year y (MWh).
EFCO2, grid,y = CO2 emission factor of the grid in year y (t CO2/MWh)

CO2 emission factor of the grid (EFCO2, grid,y):

According to “Tool to calculate the emission factor for an electricity system - Version
02.2”, the emission factor is calculated as a Combined Margin (CM), based on the
following six steps.

STEP 1: Identify the relevant electricity system.


STEP 2: Choose whether to include off-grid power plants in the project electricity system
(optional).
STEP 3: Select a method to determine the operating margin (OM).
STEP 4: Calculate the operating margin emission factor according to the selected method.
STEP 5: Calculate the build margin (BM) emission factor.
STEP 6: Calculate the combined margin (CM) emissions factor.

STEP 1: Identify the relevant electric power system

Historically, the Indian power system was divided into five independent regional grids,
namely Northern, Eastern, Western, Southern, and North-Eastern. Each grid covered
several states (see Table below). Since August 2006, however, all regional grids except
the Southern Grid have been integrated and are operating in synchronous mode, i.e. at
same frequency. Consequently, the Northern, Eastern, Western and North-Eastern grids
are treated as a single grid named as NEWNE grid in this document from FY 2007-08

25
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

onwards for the purpose of this CO2 Baseline Database. The Southern grid has also been
planned to be synchronously operated with rest of all Indian Grid by early 12th Plan
(2012-2017). Presently Southern grid is connected with Western and Eastern grid through
HVDC link and HVDC back to back systems.
Power generation and supply within the regional grid is managed by Regional Load
Dispatch Centre (RLDC). The Regional Power Committees (RPCs) provide a common
platform for discussion and solution to the regional problems relating to the grid. Each
state meets their demand with their own generation facilities and also with allocation
from power plants owned by the central sector such as NTPC and NHPC etc. Specific
quotas are allocated to each state from the central sector power plants. Depending on the
demand and generation, there are electricity exports and imports between states in the
regional grid. Moreover, there are also electricity transfers between regional grids, and
small exchanges in the form of cross-border imports and exports (e.g. from Bhutan).

Area covered under Regional Grid:


Regional States / Region Regional Grid States / Region covered
Grid covered
NEWNE Chandigarh SOUTH Andhra Pradesh
Delhi Karnataka
Haryana Kerala
Himachal Pradesh Tamil Nadu
Jammu & Kashmir Pondicherry
Punjab Lakshadweep
Rajasthan
Uttar Pradesh
Uttarakhand
Bihar
Jharkhand
Orissa
West Bengal
Sikkim
Goa
Chhattisgarh
Gujarat
Daman & Diu
Dadar and Nagar
Haveli
Chhattisgarh
Maharashtra
Arunachal Pradesh
Assam
Manipur
Meghalaya
Mizoram
Nagaland
Tripura

The project activity is located in the state of Chhattisgarh and connected to the NEWNE
grid.

26
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

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:
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.

In this PDD, Option I is chosen to calculate OM and BM emission factor.

STEP 3: Select a method to determine the operating margin (OM)

The calculation of the operating margin emission factor (EFgrid,OM,y) is based on one of the
following methods:

(a) Simple OM; or


(b) Simple adjusted OM; or
(c) Dispatch data analysis OM; or
(d) Average OM.

In this case, the simple OM is used.

The simple OM method (option a) can only be used if low cost/must-run resources
constitute less than 50% of total grid generation in: 1) average of the five most recent
years, or 2) based on long-term averages for hydroelectricity production.

The percentage shares of generation from low cost/must run power plants for the 5 most
recent years in the NEWNE grid is as follows:

2003-04 2004-05 2005-06 2006-07 2007-08


17.37 % 16.8% 18.0% 18.5% 19.0%

Source: CO2 Baseline Database for the Indian Power Sector (Version 3.0 &.4.0)

Percentages of total grid generation by low cost/must run power plants (on the basis of
average of five most recent years) = 17.93%.

Thus the simple OM method can be used to calculate the operating margin emission
factor, as low cost/must run resources constitute less than 50% of total grid generation.

Applying the Tool to calculate the emission factor for an electricity system , the project
participant choose an ex ante option for calculation of the operating margin emission
factor (EFgrid,OM,y) with a 3-year generation-weighted average, based on the most recent
data available at the time of submission of the PDD to the DOE for validation, without
requirement to monitor and recalculate the emissions factor during the crediting period.

STEP 4: Calculate the operating margin emission factor according to the selected
method

27
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

The simple OM emission factor is calculated as the generation-weighted average CO2


emissions per unit net electricity generation (tCO2/MWh) of all generating power plants
serving the system, not including low-cost/must-run power plants/units.

As per „Tool to calculate the emission factor for an electricity system , Option A (“Based
on the net electricity generation and a CO2 emission factor of each power unit”) is used to
calculate simple OM emission factor. Where Option A is used, the simple OM emission
factor is calculated based on the electricity generation of each power unit and an emission
factor for each power unit, as follows:

EFgrid,OMsimple,y = ( EGm,y X EFEL,m,y ) / EGm,y

Where:
EFgrid,OMsimple,y = Simple operating margin CO2 emission factor in year y (tCO2/MWh)
EGm,y = Net quantity of electricity generated and delivered to the grid by power
unit m in year y (MWh)
EFEL,m,y = CO2 emission factor of power unit m in year y (tCO2/MWh)
m = 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

The CO2 emission factor (EFEL,m,y) data for simple OM, available under the CEA
database (Version 4.0) for the last three years is as follows

CO2 Emission factor for simple OM ( tCO2/MWh) including Imports


GRID 2005-06 2006-07 2007-08
NEWNE 1.0194 1.0083 0.9991

The net electricity generation (EGm,y) data, available under the CEA database (Version
4.0), of all generating power plants (not including low-cost / must-run power plants /
units) for the last three year is as follows:

Net Electricity Generation for Simple OM (MWh) incl. Import.:


GRID 2005-06 2006-07 2007-08
NEWNE 364,124,000 384,597,000, 409,834,000

Thus, as can be seen from the above tables, the 3 years generation-weighted OM average
for the most recent three years available at the time of PDD for validation, i.e.2005-06,
2006-07 and 2007-08 for NEWNE grid is:
EFgrid,OMsimple,y = ( EGm,y X EFEL,m,y ) / EGm,y

= (364,124,000 X 1.0194+384,597,000 X 1.0083+409,834,000X0.9991) /


(364,124,000+384,597,,000+409,834,000)
= 1.0086 tCO2/MWh

STEP 5: Calculate the build margin (BM) emission factor

The build margin emission factor has been calculated ex-ante as per option (1) based on
the most recent information available on units already built for sample group m at the

28
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

time of CDM-PDD submission to the DOE for validation. This option does not require
monitoring the emission factor during the crediting period.

The sample group of power units m used to calculate the build margin should be
determined as per the following procedure, consistent with the data vintage selected
above:

The sample group of power units m used to calculate the build margin consists of either:

(a) Identify the set of five power units, excluding power units registered as CDM
project activities, that started to supply electricity to the grid most recently (SET5-
units) and determine their annual electricity generation (AEGSET-5-units, in MWh);

(b) Determine the annual electricity generation of the project electricity system,
excluding power units registered as CDM project activities (AEGtotal, in MWh).
Identify the set of power units, excluding power units registered as CDM project
activities, that started to supply electricity the grid most recently and that
comprise 20% of AEGtotal (if 20% falls on part of the generation of a unit, the
generation of that unit is fully included in the calculation) (SET 20%) and
determine their annual electricity generation (AEGSET- 20%, in MWh);

(c) From SET5-units and SET 20% select the set of power units that comprises the larger
annual electricity generation (SETsample);

Identify the date when the power units in SETsample started to supply electricity to
the grid. If none of the power units in SETsample started to supply electricity to the
grid more than 10 years ago, then use SETsample to calculate the build margin.
Ignore steps (d), (e) and (f).

Otherwise:
(d) Exclude from SETsample the power units which started to supply electricity to the
grid more than 10 years ago. Include in that set the power units registered as
CDM project activity, starting with power units that started to supply electricity
to the grid most recently, until the electricity generation of the new set comprises
20% of the annual electricity generation of the project electricity system (if 20%
falls on part of the generation of a unit, the generation of that unit is fully
included in the calculation) to the extent is possible. Determine for the resulting
set (SETsample-CDM) the annual electricity generation (AEGSET-sample-CDM, in MWh); If
the annual electricity generation of that set is comprises at least 20% of the
annual electricity generation of the project electricity system (i.e. AEGSET-sample-
CDM 0.2 × AEGtotal), then use the sample group SETsample-CDM to calculate the
build margin. Ignore steps (e) and (f).

Otherwise:

(e) Include in the sample group SETsample-CDM the power units that started to supply
electricity to the grid more than 10 years ago until the electricity generation of the
new set comprises 20% of the annual electricity generation of the project
electricity system (if 20% falls on part of the generation of a unit, the generation
of that unit is fully included in the calculation);

29
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

(f) The sample group of power units m used to calculate the build margin is the
resulting set (SETsample-CDM->10yrs).

Accordingly, the CEA database calculates the build margin as the average emissions
intensity of the 20% most recent capacity additions in the grid based on net generation by
applying “Tool to calculate the emission factor for an electricity system , the build
margin emission factor (EFgrid,BM,y) for the year 2007-08 (most recent year) for NEWNE
grid, applicable for the project is 0.5977 tCO2/MWh from the CEA database (Version
4.0).

STEP 6: Calculate the combined margin (CM) emissions factor

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.

Option A above viz. weighted average CM has been used.

The combined margin emissions factor is calculated as follows :

EF grid,CM,y = EFgrid, OM,y * wOM + EFgrid,BM,y * wBM

Where:
EF grid,CM,y = Combined Margin CO2 emission factor in year (tCO2/MWh)
EFgrid,BM,y = Build margin CO2 emission factor in year (tCO2/MWh)
EFgrid,OM,y = Operating margin CO2 emission factor in year y (tCO2/MWh)
wOM = Weighting of operating margin emissions factor (%)
wBM = Weighting of build margin emissions factor (%)
(where wOM + wBM = 1)

The “Tool to calculate the emission factor for an electricity system” requires the
following default values should be used for wOM and wBM:

• Wind and solar power generation project activities: wOM = 0.75 and wBM = 0.25
(owing to their intermittent and non-dispatchable nature) for the first crediting
period and for subsequent crediting periods;
• All other projects: wOM = 0.5 and wBM = 0.5 for the first crediting period , and
wOM = 0.25 and WBM = 0.75 for the second and third crediting period, unless
otherwise specified in the approved methodology which refers to this tool.

Hence the following given value is applied to calculate the CM for the CDM project
activity.
wOM = 0.50
wBM = 0.50

Using the values of emission factors for OM and BM for NEWNE grid, provided in the
official database and as computed above; and the weights provided above, the value of
the emission factor for the combined margin has been determined to be:

30
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

= 1.0086 * 0.50 + 0.5977 * 0.50 tCO2/MWh


= 0.8032 tCO2/MWh

Quantity of net electricity supplied (EG BL , y)

The project activity is a renewable energy based project, wherein biomass residues are
combusted in a boiler to produce steam, which drives a turbine connected to an alternator,
producing power. No anthropogenic emissions would occur due to utilization of biomass
as fuel. The project activity is permitted to use fossil fuel/coal to an extent of 25% of the
annual fuel consumption.

In accordance to the methodology AMS- I.D. para 22, for projects consuming biomass
and fossil fuel to produce electricity, a specific energy consumption of each type of fuel
(biomass or fossil) to be used should be specified ex ante. The consumption of each type
of fuel (biomass or fossil) shall be monitored.

If fossil fuel is used, the electricity generation metered should be adjusted by deducting
the electricity generation from fossil fuels using the specific energy consumption and the
quantity of fossil fuel consumed.

The amount of electricity generated using biomass fuels then shall be calculated using
specific energy consumption and amount of each type of biomass fuel used. The SEC for
all subtypes of biomass are considered the same as all are falling within the same Type of
Biomass waste/Residue. The lower of the two values should be used to calculate
emission reductions

EGBL,y = Lower ( The amount of electricity generated adjusted with the electricity
generation from fossil fuel calculated using specific energy consumption of fossil fuel
used and the amount of electricity generated from biomass calculated using specific
energy consumption of biomass fuel used )

As the project activity envisage the usage of coal for generation of power, in both the
approaches, the Station Heat Rate (SHR) of the biomass power project itself determines
the specific energy consumption.

The following are the detailed equations proposed to calculate specific energy
consumption. There by arrived specific energy consumption is fixed ex-ante for the entire
crediting period.

Specific Energy Consumption (SEC)


Specific energy consumption is the fuel consumption (in energy basis) per unit of
electricity generated (e.g., TJ of bagasse energy per MWh output).
However as a conservative approach it is assumed that the boiler will provide lower
efficiency considering as the biomass quantity being used was fired under 100% mode in
which the boiler efficiency is provided as ±79% by the power plant engineering
consultant company. As per which at lower side of efficiency i.e 77% when the SEC
(SECBIOMASS) is calculated, then it works out to be 16832.90MJ/MWh.

31
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Subsequently while considering the quantity of fossil fuel fired in the project activity as
in 100% mode then the boiler efficiency as per the manufacture specified as 83%,
however as per “Tool to determine the baseline efficiency of thermal or electric energy
generation systems” Ver-1 EB 48 it is considered as 85% as a conservative approach, thus
SEC (SECCOAL) worked out to be 15248.63 MJ/MWh.

The calculation of the SEC is done in the following manner:

Specific Energy Consumption (SEC) Quantity of fuel energy


MJ/MWh required(MJ/hr/)/hourly Electrical output
(MWh)

Quantity of fuel energy required(MJ/hr) Net Steam Enthalpy produced by the boiler
in( MJ/hr)/Efficiency of boiler for specific
fuel( %)
Net Steam Enthalpy produced by the Steam flow (tph)*1000X Net gain in
boiler in( MJ/hr) enthalpy of steam produced by boiler
(MJ/kg)
Net gain in enthalpy of steam produced by Enthalpy of steam produced by the boiler –
boiler (MJ) Enthalpy of feed water

Input values used for the determination of the SEC are based on the following
parameters specified by the manufacturer:

Parameter Value Unit Source or ref


Manufacturer' s
Electricity generation capacity 7.50 MW specification
Boiler capacity in terms of steam in Manufacturer' s
TPH 34.00 TPH specification
Manufacturer' s
Pressure of steam 66.00 kg/cm2 specification
Manufacturer' s
0
Temperature of steam 495±5 C specification
Calculated
Specific enthalpy of super heated from steam
steam 3405.43 kJ/kg table
Manufacturer' s
0
Temperature of feed water 130.00 C specification
Calculated
from water
properties
Enthalpy of feed water 546.31 kJ/kg table
Net gain in enthalpy of steam 2859.12 kJ/kg Calculated
Total Quantum of Steam Enthalpy
required per hour 97210012.00 kJ/hr calculated

Type of Fuel Biomass Fossil fuel


Considered Thermal efficiency of 77% 85%

32
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Boiler for the type of fuel


Quantity of Fuel energy required for
each MWh from the type of fuel
considering boiler efficiency as above
= SEC (Specific Energy Consumption)
(in MJ/MWh) 16832.90 15248.63

Considering the above Specific energy consumption the EGBLY is calculated as below by
computing EGa,y and EGb,y:as per option 1 and option 2 and the lowest of the two is
considered as EGBLY :

Option 1 for calculating EG BL , y

S.No 6 Vide Clause 22 of AMS- I.D. Version 16:

“If fossil fuel is used, the electricity generation metered should be adjusted by deducting
the electricity generation from fossil fuels using the specific energy consumption and the
quantity of fossil fuel consumed”

EGa,y = EGEXP,y - EGF,y

Where,
EGa,y = Quantity of net electricity supplied to the grid as a result of
implementation of CDM Project activity in year y after having adjusted
for Net electricity supplied from fossil fuel (MWh/annum)
EG EXP,y = Net electricity exported/supplied to the NEWNE grid system in year y
(MWh/annum)
EGF,y = The amount of net electricity supplied from fossil fuels in the year y
(MWh/annum).

EGF,y = EGF,Gross,y - EGF,Aux,y

EGF,Gross,y = The amount of electricity generated from fossil fuels in the


year y (MWh/annum).

EGF,Aux,y = Auxiliary consumption for the electricity generated from fossil


fuels in the year y (MWh/annum).

( FFc,y X NCVc,y)
EGF,Gross,y = ----------------------
SECCOAL

FFc,y = Quantity of fossil fuel type (coal) combusted in the project activity
during the year y (in MT)
SECCOAL= Specific energy consumption for fossil fuel (coal) ( MJ/ MWh)
NCVc,y = Weighted average net calorific value of fossil fuel(coal) combusted in the
project during the year y (MJ/MT)

33
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

EGF,Aux,y = EGF,Gross,y X EGAux%,y

EG EXP,y (Net electricity exported/supplied to the NEWNE grid system in year y


=MWh/annum) is the difference of the Gross electricity generation and the
auxiliary power consumption thus in order to assess the proportionate net
electricity generation due to the Biomass and due to the Fossil Fuel(Coal) it is
also important to Calculate the auxiliary power consumed in the entire system
and then work out the proportionate power consumption in % to the gross
generation and then apportion this % of auxiliary consumption to the gross power
generation due to Biomass and due to fossil Fuel (Coal). This will be done in the
following manner.
EGAux%,y = Auxiliary consumption of the project activity( %) is determined in the
following manner= (EG,Gross,y+ EGIMP,y - EG,EXP,y )*100/EGGross,y

Option 2 for calculating EG BL , y

“The amount of electricity generated using biomass fuels calculated shall be compared
with the amount of electricity generated calculated using specific energy fuel
consumption and amount of each type of biomass fuel used”

EGb,y = EG BF,Gross,y - EGBF,Aux,y

Where,
EGb,y = Quantity of net electricity supplied to the grid as a result of
implementation of CDM Project activity from biomass fuel
(MWh/annum)

EG BF,Gross,y = The gross electricity generation from the combustion of biomass


fuels during the year y (MWh/annum)
EGBF,Aux,y = Auxiliary consumption for the electricity generated from biomass
fuels in year y
(MWh/annum)

( BFk,y X NCVk,y )
EG BF,Gross,y = ----------------------
SEC

Where,
BFk,y = Quantity of dry biomass fuel type k combusted in the project
activity during the year y (MT)
SEC = Specific energy consumption of the biomass project activity
(MJ/MWh)
NCVk,y = Net calorific value of each biomass fuel type combusted in the
project during the year y (MJ/MT)

EGBF,Aux,y = EG BF,Gross,y X EGAux%,y


EGBL,y will be calculated as per both the options described above on the basis of actual
monitored parameters presented in section B.7.1 of the PDD. Lower of the two different
values arrived from option (1) (EGa,y ) and (2) (EGb,y) would be used as EGBL,y to
calculate baseline emissions ex-post.

34
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Project Emissions:

The possible project emissions for a biomass based power project would be due to
combustion of fossil fuels (other than those used in boiler, like in DG set)

Project emissions due to the combustion of fossil fuels (DG set) = PEFC,j,y

The project activity would install a diesel generator to meet the emergency requirements
of power house etc. Emissions due to use of fossil fuel (diesel) will be accounted as
project emissions based on the following equation:

PEFC,j,y = FCi,j,y X COEFi,y


i

Where,

PEFC,j,y = Are the CO2 emission from fossil fuel combustion in process j
during the year (tCO2/yr);
FCi,j,y = Is the quantity of fuel type i combusted in process j during the year
y (mass or volume unit/yr);
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.

FCi,j,y (mass) = FCi,j,y (vol)* pi,y

Where,

FCi,j,y (volume) = Quantity of fossil fuel (Diesel )combusted in DG set


during the year y ( m3/y)
pi,y = Is the weighted average density of fuel type i in the year
y (MT/1000 liters)

The CO2 emission coefficient COEFi,y is calculated based on option B of “ Tool to calculate
project or leakage CO2 emissions from fossil fuel combustion” as follows :

COEFi,y, = NCVi,y X EFCO2,i,y


Where,
NCV i,y = Is the weighted average net colorific value of the fuel type i in the
year y (TJ/Gg)
EFCO2,i,y = Is the weighted average CO2 emission factor of fuel type i in year y
(tCO2/TJ)
i = Are the fuel type combusted in process j during the year y

Hence,

PEFC,j,y = NCVi,y * FCi.j,y( mass) * EFCO2i,y

Leakage:
According to methodology AMS I.D. Version 16 para 20 leakage is to be considered only
if the energy generating equipment is transferred from another activity.

35
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Project activity is new green field project utilizing all the new equipments and rule out
any transfer of generating equipment from another activity. Hence such type of leakage in
Project activity is considered Zero.

However, as per General guidance on leakage in biomass project activities


version 3 “ For small-scale CDM project activities involving renewable biomass, there
are three types of emission sources that are potentially significant (>10% of emission
reductions) and attributable to the project activities:

A. Shifts of pre-project activities. Decreases of carbon stocks, for example as a


result of deforestation, outside the land area where the biomass is grown, due to
shifts of pre-project activities.
B. Emissions related to the production of the biomass.
C. Competing uses for the biomass. The biomass may in the absence of the project
activity be used elsewhere, for the same or a different purpose.

From the above only option C is relevant to the project according to which the following
is applicable:
(a) In some cases, the biomass used in the project activity could be used for other
purposes in the absence of the project. For example, biomass residues from
existing forests could have been used as fuel wood or agricultural biomass
residues could have been used as fertilizers or for energy generation. Competing
uses for biomass are not relevant, where the biomass is generated as part of the
project activity (new forests or cultivations).

(b) The project participant shall evaluate ex-ante if there is a surplus of the biomass
in the region of the project activity, which is not utilized. If it is demonstrated
(e.g. Using published literature, official reports surveys etc) at the beginning of
each crediting period that the quantity of available biomass in the region (e.g.50
Km radius). Is at least 25% larger than the quantity of biomass that is utilised
including the project activity, than this source of leakage can be neglected
otherwise that leakage shall be estimated and deducted from the emission
reduction.”

Biomass availability status at the time of decision to invest in project activity8 (In
MT)

Subtype of Availability Consump Consump Total Surplus


Biomass ( in MT) tion by tion by Consumpti Status
within the former Project on ( in %)
waste and users (in Activity ( including
residue type MT) in MT) Project
Biomass Activity(
in MT)
1 Rice Husk 639344.64 325123.38 55423.34 380546.74 About
69%
excess

8
Biomass assessment report

36
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

includin
g the
requirem
ent in
project
activity.
2 Rice 641805.45 182611.09 - 182611.09
Straw
3 DOC of 25317.26 12000.00 - 12000.00
Sal Seed
4 Saw Mill 6300 00 - 00
wood dust
5 Lops & 46898.58 00 - 00
Tops from
agro
forestry
Total 1359665.93 519734.47 55423.34 575157.81 More
than
25%
surplus

As the Type of “ Biomass waste and residue” and also sub-type (rice husk) of the
Biomass waste and residue proposed to be used in the Project activity is available 25%
surplus hence such type of leakage is not considered for the project activity.

Leakage due to combustion of fossil fuels for transportation of biomass residues to the
project site during the year y (LETy)

As the renewable biomass is not generated at site but is collected from an area of 50 km
radius, leakage due to combustion of fossil fuels for transportation of renewable biomass is
considered. The emissions are calculated based on the distance of travel and average truck
load.

BF T , k , y
LETy = k
X AVDy X EF km CO2 y
TLy

Where,
LETy : Leakage during the year y due to transportation of renewable
biomass to the project site (tCO2/yr)
AVDy : Average round trip distance (to and fro) between the renewable
biomass supply sites and the site of the project plant during the year
y (km)
EFkm,CO2,y Average CO2 emission factor for the trucks measured during the
year y (tCO2/km)
BFT,k,y : Quantity of renewable biomass that would be transported to the
project site during the year y (tons)
TLy : Average truck load of the trucks used (tons) during the year y
k : Sub-Types of biomass residues used in the project plant that would
be transported to the project plant in year y

37
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Leakage due to transportation

Sr. Parameters Unit Value


no.
1 Total biomass required for the project activity( t/yr 55423.349
BFT,k,y)
2 Average round trip distance for biomass Km 100
transportation as per biomass assessment study(
AVDy)
3 Average load per truck10 (TLy ) Tonnes 8
4 Net calorific value of diesel (IPCC default TJ/Gg 43.3
value)
5 Density of diesel( CEA CO2 baseline database) T/1000 litres 0.83
6 CO2 emission factor of diesel( IPCC default tCO2/TJ 74.8
value)
7 Average mileage of the truck11 km/litre 4.5
8 CO2 emission factor for trucks( EFkm,CO2,y) tCO2/km 0.0005974
9 Total leakage due to transportation( LETy) tCO2/yr 413.87

Leakage due to transportation of renewable biomass is calculated in the above table with
necessary assumptions. The average truck load is taken as 8 tonnes. The average mileage of
trucks is taken as 4.5 km/litre. The average round trip distance for procurement of renewable
biomass is taken as 100 km.

EFkm,CO2,y = ( 0.83 × 43.3 × 74.8) / ( 4.5 × 10^6) = 0.0005974 tCO2/km

Hence,

LEy = [(55423.34 / 8) × 100 × 0.0005974]

= 413.87 or 414 tCO2/yr

In line with General guidance on leakage in biomass project activities version


3, since the leakage emissions due to transportation of renewable biomass for the
project activity works out to be less than 10% of emission reductions(~ 414/
28659 = 1.44%) hence such type of leakage is not considered for the project activity.

Emission reductions:

As per AMS.I.D para 21, Emissions reductions are calculated as follows:

9
Biomass consumption from 2nd yr onwards has been considered for conservative estimate of
leakage( see section B.7.1 below)
10
Average load truck of 8 tonnes/truck is considered to be conservative figure for estimation of
leakage since the actual load truck observed per truck is in the range of 10-12 tonnes/truck.
Weighbridge slips have been submitted to DOE during validation as supporting evidence for the
same.
11
India Road Transport Service Efficiency Study by World Bank, November 2005.

38
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

ERy = BEy − PEy – LEy


Where:
ERy = Emissions reductions in year y (t CO2e/y).
BEy = Baseline Emissions in year y (t CO2e/y).
PEy = Project emissions in year y (t CO2/y).
LEy = Leakage emissions in year y (t CO2/y).

B.6.2. Data and parameters that are available at validation:


(Copy this table for each data and parameter)

Data / Parameter: EF grid OM, y


Data unit: tCO2e/MWh
Description: Simple operating margin emission factor of NEWNE grid.
Source of data used: CENTRAL ELECTRICITY AUTHORITY: CO2
BASELINE DATABASE”- Ver-04
Value applied: 1.0086
Justification of the choice The data is considered from Official website of Central
of data or description of Electricity Authority of India, which is a Government of
measurement methods and India’s authority to deal with Power Sector.
procedures actually
applied :
Any comment: Ex-ante fixed value.

Data / Parameter: EF grid BM, y


Data unit: tCO2e/MWh
Description: Build Margin emission factor of NEWNE grid
Source of data used: “CENTRAL ELECTRICITY AUTHORITY: CO2
BASELINE DATABASE”- Ver-04
Value applied: 0.5977
Justification of the choice The data is considered from Official website of Central
of data or description of Electricity Authority of India, which is a Government of
measurement methods and India’s authority to deal with Power Sector
procedures actually
applied :
Any comment: Ex-ante fixed value.

Data / Parameter: EF CO2, grid , y


Data unit: tCO2e/MWh
Description: CO2 emission factor of NEWNE grid
Source of data used: Computed using the following formula
EFCO2,grid,y = WOM * EF grid OM, y + WBM * EF grid BM, y
Combined margin CO2 emission factor for grid connected
power generation in year y is calculated using the latest
version of the “Tool to calculate the emission Factor for an
electricity system – Version 02.2”

Value applied: 0.8032


Justification of the choice This is in accordance with the latest version of the
of data or description of applicable methodology AMS.I.D. Grid Connected

39
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

measurement methods and Renewable Electricity Generation and the “Tool to calculate
procedures actually the Emission Factor for an Electricity System, Version 2.2,
applied : EB-61 Annex 12.

Any comment: Ex-ante fixed value.

Data / Parameter: SECCOAL; SECBIOMASS


Data unit: MJ/MWh
Description: Ex-ante specific energy consumption is the fuel
consumption (in energy basis) per unit of electricity
generation in project facility for the type of fuel used to
generate electricity.
Source of data to be used: Technical specifications of project equipment.
Value applied 15248.63;16832.90

Justification of the choice Calculated on the basis of technical specifications of project


of data or description of equipment considering steam enthalpy required by the
measurement methods and turbine to generate each unit of electricity and then fuel
procedures actually energy required by boiler based on the boiler efficiency as
applied: 85% for Fossil Fuel (Coal); 77% for Biomass Fuel
However as a Conservative approach only the
SECCOAL(15248.63 MJ/MWh); SECBIOMASS (16832.90
MJ/MWh) is used for Calculating emission reduction.

Any Comment SEC for fossil fuel and Biomass type is Fixed Ex Ante for
the entire Crediting Period. The data will be maintained for
crediting period + 2years. It can be archived in electronic
form also.

Data / Parameter: BFSurplus,y


Data unit: %
Description: Surplus biomass available in the project activity region
Source of data to be used: Biomass assessment report
Value applied Surplus 25% than the quantity of biomass utilised in the
project activity (detailed under section B.6.1)

Justification of the choice The surplus availability of biomass in project activity region
of data or description of (50Km radius) is assessed based on the Biomass assessment
measurement methods and report. The same is in line with General guidance on leakage
procedures actually in biomass project activities Version 3 EB 47 Annex 28
applied: Section C Competing uses for the biomass.

Any Comment Determined ex-ante at the beginning of entire Crediting


Period

B.6.3 Ex-ante calculation of emission reductions:


>>
Baseline Emissions

40
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Giving estimated power generation and fuel consumption for ex-ante


estimation to demonstrate the procedure applied for calculating
emission reduction.
S.No. Parameters Assumption Source
1 Generation Capacity 7.5 MW DPR
2 Working days 330 day DPR
considered/year
3 Working hours 24 hours DPR
considered in day
4 Plant Load Factor 80% in 1st year and DPR submitted
90% from 2nd year to CREDA for
onwards implementation
approval (As
per Annex-11
EB-48)
5 Gross generation of First year:47520 Calculated
electricity(MWh/yr) Second year onwards:
53460

6 Auxiliary 10% DPR


consumption
7 Power Imported from 0 Assumption
the Grid( MWh/yr)
8 Net power exported to First year Calculated
the grid after = 47520-(
excluding Import of 47520X10%)-0
Power from Grid and = 42768
other emergency Second year onwards
source in = 53460-
MWh((EGEXP,y) (53460X10%)-0
=48114
9 Specific Energy 16832.90 MJ/MWh Calculated and
consumption applied fixed ex-ante
to assess the dry
quantity of biomass
required for estimated
power generation
10 Specific Energy 15248.63 MJ/MWh Calculated and
consumption applied fixed ex-ante
to assess the quantity
of coal required for
estimated power
generation
11 Assessment of First year: 44786.54 Calculated
Consumption of dry
quantity of biomass Second year onwards:
(MT/year) 50384.86

12 Fossil Fuel First year:11290.40 Calculated

41
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

consumption Second year onwards:


(MT/year) 12701.70
13 NCV of Dry Biomass Rice husk: 13395.20 CSERC order
fuels MJ/MT

14 NCV of fossil fuel Coal :16044.94 Published data


MJ/MT
15 Combined Margin 0.8032 Calculated
(CM) Emission factor
for NEWNE Grid
(EFCO2,grid,y )

Specific Energy Consumption (SEC)

As discussed in section B.6.1 the Specific energy consumption is the fuel consumption
(in energy basis) per unit of electricity generated (e.g., TJ of type of fuel energy per
MWh output of electrical energy). It has been calculated ex-ante based on manufacturer’s
specification of project equipment and works out to be as below for the respective type of
fuel used in the project activity

A. SEC coal : 15248.63 MJ/MWh


B. SECBIOMASS : 16832.90 MJ/MWh
C. SECcofire : 16001.65 MJ/MWh.

Baseline emissions = BEy = EGBL,y * EFCO2, grid,y ( as explained above in B.6.1)

EGBL,y = Lower ( The amount of electricity generated adjusted with the electricity
generation from fossil fuel calculated using specific energy consumption of fossil fuel
used and the amount of electricity generated from biomass calculated using specific
energy consumption of biomass fuel used )

For First year:-

Option 1

S.No. 6 Vide Clause 22 of AMS- I.D. Version 16:


“If fossil fuel is used, the electricity generation metered should be adjusted by deducting
the electricity generation from fossil fuels using the specific energy consumption and the
quantity of fossil fuel consumed.”

The emission reduction as per option 1 will be calculated as below:

a. Total quantity of fossil fuel consumed during the year “y”= FFc,y=11290.40 tonnes
b. Average Calorific value of the Fossil Fuel used= NCVc,y =16044.94 MJ/Tonne
c. Specific Energy Consumption of Fossil Fuel (SECCOAL )in MJ/MWh=15248.63
MJ/MWh

42
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

EGF,y = EGF,Gross,y - EGF,Aux,y

(FFc,y X NCVc,y )
EGF,Gross,y = SECCoal

Calculated for first year:


= (11290.40 X 16044.94)/ 15248.63
= 11880.00 MWh

Subsequent to the above; proportionate the auxiliary power consumed for the system is
deducted to arrive at the net power generation due to the fossil fuel energy in the power
plant. Thus the % of auxiliary power consumed in the entire Power plant is multiplied
with the calculated power generation due to fossil fuel energy as given below:

EGAux%,y is calculated based on the total power consumed in the auxiliary facility(EGAux,y)
of the Power plant ( which is the difference between the export of power and total of
gross power generation plus import power) divided with Gross power generated and
multiplied by 100 to arrive at percentage consumption which is denoted as EGAux,%y (for
ex ante estimation it is considered as 10%; whereas the actual ratio will be worked out
based on the measured data during the monitoring period). Based on this the EGF,Aux,y is
calculated in the following manner for ex ante estimation.

Calculated for first year:


EGF,Aux,y = 11880 X EGAux%,y
= 11880 X 10% = 1188 MWh

EGF,y = 11880- 1188


= 10692 MWh
Since the net power generation due to fossil fuel is Calculated as above, then the
subsequent step is applied as per the following formulae:
EGa,y = EG EXP,y - EGF,y

EG EXP,y = 42768 MWh


EGF,y = 10692 MWh
Thus

EGa,y = 42768 –10692


= 32076.00 MWh (now this generation figure will be compared
with the calculations given in option 2 and the lower of the two will be used ahead to
calculate the emission reduction).

Option 2
“The amount of electricity generated using biomass fuels calculated shall be compared
with the amount of electricity generated calculated using specific energy fuel
consumption and amount of each type of biomass fuel used”

EG BF,Gross,y = Calculated Gross power generation due to Biomass


energy as per SECBIOMASS

43
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

BFk,y = Monitored/Measured Quantity of Biomass consumed in


the Project activity to generate power in Tonnes during
the monitoring period “y”.
NCVk,y = Monitored/Measured average NCV of Biomass
consumed in the Project activity to generate power in
kCal/kg during the monitoring period “y”.
SECBIOMASS = Specific Energy consumption fir the type of biomass as
fixed ex-ante for the entire crediting period in MJ/MWh

Calculated for first year:

(BFk,y X NCVk,y )
EG BF,Gross,y = -------------------------
SECBIOMASS
= (44786.54X 13395.20) / 16832.90
= 35640.00 MWh

The proportionate auxiliary consumption due to biomass fuel energy is calculated


by multiplying the EGAUX%,y with the EGBF Gross,y to arrive at EGBF, Aux,y in the
following manner.

EGBF,Aux,y= 35640 X EGAux%,y


= 35640 X 10% = 3564 MWh

EGb,y = EG BF,Gross,y - EGBF,Aux,y

EGb,y = 35640-3564
= 32076.00 MWh

Hence, EGBL,y as per option 2 for first year = 32076.00 MWh

Lower of two values of EGBL,y calculated as per option 1 and 2 on the basis of monitored
parameters would be used for calculation of ex-post baseline emissions. Since in the
present ex-ante calculation both the values are found same thus any one is used but
during the monitoring period the lowest of the two will be used.

Calculated for Second year onwards:-


Option 1

Sr. No. 6 Vide Clause 22 of AMS- I.D. Version 16:

“If fossil fuel is used, the electricity generation metered should be adjusted by deducting
the electricity generation from fossil fuels using the specific energy consumption and the
quantity of fossil fuel consumed.”

EGa,y = EG EXP,y - EGF,y

EGF,y = EGF,Gross,y - EGF,Aux%,y

(FFc,y X NCVc,y )
EGF,Gross,y = SECCOAL

44
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

= (12701.7 X 16044.94)/ 15248.63


= 13365.00 MWh

EGF,Aux,y = 13365.00 X EGAux%,y


= 13365.00 X 10% = 1336.50 MWh

EG EXP,y = 48114 MWh

EGF,y = 13365.00 – 1336.50


= 12028.50 MWh

EGa,y = 48114 – 12028.50


= 36085.50 MWh

Calculated for Second year onwards:

Option 2

“The amount of electricity generated using biomass fuels calculated shall be compared
with the amount of electricity generated calculated using specific energy fuel
consumption and amount of each type of biomass fuel used”

EGb,y = EG BF,Gross,y - EGBF,Aux,y

(BFk,y X NCVk,y )
EG BF,Gross,y = -------------------------
SEC BIOMASS
= (50384.86X 13395.20) / 16832.90
= 40095.00 MWh
EGBF,Aux,y= 40095.00 X EGAux%,y
= 40095.00 X 10% = 4009.50 MWh

EGb,y = 40095.00 – 4009.50


= 36085.50 MWh

Hence, EGBL,y for second year onwards = 36085.50 MWh

Lower of two values of EGBL,y calculated as per option 1 and 2 on the basis of monitored
parameters would be used for calculation of ex-post baseline emissions.

BEy = EGBL,y * EFCO2, grid, y

For first year:


EG BL,y = 32076.00MWh
EF CO2,grid,y = 0.8032 tCO2/MWh
BEy First year = 32076.00 X 0.8032
= 25761.84 or say 25761.00 tCO2e/annum

Second year onwards:

45
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

EG BL,y = 36085.50 MWh


EF CO2,grid,y = 0.8032 tCO2/MWh
BEy second year = 36085.50 X 0.8032
= 28982.07 or Say 28982.00 tCO2/Annum

Project emissions:

The project emissions due to the combustion of diesel are considered as zero for
estimation of ex-ante calculations of emission reductions. The emissions from the
combustion of diesel for operation of the DG
set during emergency situations are considered negligible. However the quantity of diesel
combusted in the project activity will be monitored during each year of crediting period
(B.7.1) and deducted from baseline emissions, and necessary provision has been made in
Section B.6.1 by providing formulae to calculate project emissions. Since estimation of
quantity of diesel consumption is unpredictable before actual operation of the project and
also to simplify the ex-ante calculations of emission reductions, excluding its contribution
to project emissions is considered reasonable.

Hence, PEy = 0 tCO2e/year

Leakage:

LEy = 0 tCO2e/year (please refer B.6.1)

Emission reduction:

ERy = BEy – LEy– PEy

Where,
BEy = Baseline Emission = 25761.00 tCO2e/Year for 1st yr,
28982.00 tCO2e/Year
from 2nd yr onwards
LEy = Leakage = 0 tCO2/Year
PEy = Project Emission = 0 tCO2/Year

Hence,

For 1st yr

ERy = 25761.00 - 0 - 0

= 25761.00 tCO2e/Year

For 2nd yr onwards

ERy = 28982.00 - 0 - 0

= 28982.00 tCO2e/Year

B.6.4 Summary of the ex-ante estimation of emission reductions:

46
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

>>
Year Estimation of Estimation of Estimation Estimation
project baseline of leakage of overall
activity emissions (tCO2e) emission
emissions (tCO2e) reductions
(tCO2e) (tCO2e)
2011-12 0.0 25,761.00 0.0 25,761.00
2012-13 0.0 28,982.00 0.0 28,982.00
2013-14 0.0 28,982.00 0.0 28,982.00
2014-15 0.0 28,982.00 0.0 28,982.00
2015-16 0.0 28,982.00 0.0 28,982.00
2016-17 0.0 28,982.00 0.0 28,982.00
2017-18 0.0 28,982.00 0.0 28,982.00
2018-19 0.0 28,982.00 0.0 28,982.00
2019-20 0.0 28,982.00 0.0 28,982.00
2020-21 0.0 28,982.00 0.0 28,982.00
Total 0.0 286,599.00 0.0 286,599.00
(tonnes of
CO2e)

B.7 Application of a monitoring methodology and description of the monitoring


plan:

B.7.1 Data and parameters monitored:


(Copy this table for each data and parameter)

Data / Parameter: EGGross,y


Data unit: MWh/y
Description: Gross electricity generation of the biomass project activity in
year y.

Source of data to be Generation log books maintained on-site


used:
Value of data First year :47520
Second year onwards : 53460

Description of Electricity generation by the project activity is recorded


measurement methods hourly by plant personnel and data is recorded and maintained
and procedures to be in log books.
applied:
Measurement equipment – Energy meters
Accuracy class - 0.5s
Monitoring frequency - Continuous monitoring
Measurement interval – Hourly
Responsible person/entity – Representative of PP
QA/QC procedures to The energy meters will be tested/calibrated at least once in a
be applied: three year
Any comment: Data will be kept for crediting period + 2 years

47
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Data / Parameter: EGAux,y


Data unit: MWh
Description: Auxiliary consumption of the biomass project activity in year
y
Source of data to be Log books maintained on-site for auxiliary consumption
used:
Value of data First year :4752
Second year onwards : 5346

Description of Auxiliary consumption by the project activity is recorded


measurement methods hourly by plant personnel and data is recorded and maintained
and procedures to be in log books.
applied:
Measurement equipment – Energy meters
Accuracy class - 0.5s
Monitoring frequency - Continuous monitoring
Measurement interval – Hourly
Responsible person/entity – Representative of PP
QA/QC procedures to The energy meters will be tested/calibrated at least once in a
be applied: three year and the figure can be cross checked with the
calculated value of auxiliary power consumption as difference
between gross generation plus import minus net export to the
grid.
Any comment: Data will be kept for crediting period + 2 years.
EGAux,y is a monitored parameter to record the power
consumed in the entire project activity for the auxiliary
facilities like cooling tower, feed water pump, fuel handling
system and light and fan loads etc.. However because of the
monitoring of export power at the EHT/HT end the losses
incurred in transmission and transformation of power also get
included in the auxiliary consumption of project activity.
Since it is difficult to monitor this loss hence the total
auxiliary consumption is calculated in the following manner,
which can be compared at any time with the monitored
parameter EGAux y.
Because in other words EGAux CAL, y is sum of EGAux y and
losses incurred in transmission from generator to the
substation and losses in transformation from generation (HT)
voltage to grid (EHT) voltage.

EGAux CAL,y = Auxiliary consumption in the power project is


finally a calculated value between the total amount of energy
generated and imported minus the amount of electricity
exported to the grid.
Formula :
EGAux CAL,y = EG,Gross,y+ EGIMP,y - EG,EXP

The above calculated figure shall be further converted in to %


(EGAUX %,y) of auxiliary power consumed in the project

48
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

activity to proportionately attribute the auxiliary power


consumed for fossil fuel based power generation and for
biomass based power generation to arrive at power exported
due to the respective type of fuel.
Formula :
EGAux%,y = (EG,Gross,y+ EGIMP,y - EG,EXP,y )*100/EG,Gross,y

Data / Parameter: EGEXP,y


Data unit: MWh/y
Description: Electricity supplied to NEWNE grid in year y.
Source of data to be Joint Meter Reading (JMR) of meter (energy meter) installed
used: at grid interface of grid taken in the presence of CSEB
personnel and representative of PP. The JMR readings can be
cross checked with invoice for sold electricity. The value of
net electricity supplied can also be cross-checked with gross
energy generation minus auxiliary consumption and import
from grid.
Value of data First year :42768
Second year onwards : 48114

Description of Electricity supplied to grid will be calculated based on the


measurement methods measured values of export of electricity. Export of electricity
and procedures to be is measured by (energy meter) measured at the delivery point
applied: (i.e. connected substation) in the presence of CSEB personnel
and the representative of PP. Based on the two readings JMR
report is prepared by CSEB.

Measurement equipment – Energy meters


Accuracy class - 0.5s class
Monitoring frequency - Continuous monitoring
Measurement interval – Hourly
Recording frequency – Monthly
Responsible person/entity – Representative of PP and CSEB
personnel
QA/QC procedures to The energy meter is sealed and duly calibrated as per norms
be applied: of Grid, and will be calibrated timely as per norms of Grid
normally once in year.
For export -
Panel meter installed at connected substation is used to cross-
check the electricity export readings in a situation when main
meter is found error/faulty.
.
Any comment: Data will be kept for crediting period + 2 years

Data / Parameter: EGIMP,y


Data unit: MWh/y
Description: electricity import from NEWNE grid in year y.
Source of data to be Meter Reading of meter (energy meter) installed at project site

49
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

used: in the presence of CSEB personnel and representative of PP.


The readings can be cross checked with invoice for
purchase/sale of electricity from the grid.
Value of data First year :00
Second year onwards : 00

Description of Import of electricity is measured by yard meter (energy meter)


measurement methods installed at the biomass project site in the presence of CSEB
and procedures to be personnel and the representative of PP. Based on the two
applied: readings JMR report is prepared by CSEB.

Measurement equipment – Energy meters


Accuracy class - 0.5s class
Monitoring frequency - Continuous monitoring
Measurement interval – Hourly
Recording frequency – Monthly
Responsible person/entity – Representative of PP and CSEB
personnel
QA/QC procedures to The energy meters is sealed and duly calibrated as per norms
be applied: of Grid, and will be calibrated timely as per norms of Grid
normally once in year.

Check meter installed at yard adjacent to the main meter is


used to cross-check the electricity import readings in a
situation when main meter is found error/faulty

Any comment: Data will be kept for crediting period + 2 years.

Data / Parameter: EGBL, y


Data unit: MWh/y
Description: Electricity supplied to NEWNE grid from renewable energy
source in year y.
Source of data to be Calculated based on
used: - ex-ante specific energy consumption of all types of fuels used
in the project activity
- Consumption of biomass and fossil fuels.
- Electricity supplied to NEWNE grid
- Lower value among option 1 and 2 (calculated based on
monitored parameters) would be used as EGBL,y for ex-post
calculation of baseline emissions.
Value of data First year : 32076.00
Second year onwards: 36085.00
Description of Calculated as per procedures defined in AMS I.D./Version 16
measurement methods para 22( S no. 6).
and procedures to be
applied:
QA/QC procedures to Sales records and other records are used to ensure consistency.
be applied:
Any comment: -

50
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Data / Parameter: BFk,y


Data unit: MT/y
Description: Dry quantity of different subtypes12 of renewable biomass
classified within the “Biomass waste/residue Type” combusted
in the Project Activity in year y.
Source of data to be Weigh bridge records and lab analysis report of moisture content
used: in biomass procured
Value of data First year : 44786.54
Second year onwards: 50384.86
( consumption of other types of biomass combusted are assumed
to be zero)

Description of The trucks carrying specific biomass fuel is weighed by a


measurement methods calibrated weighbridge upon entry (loaded weight) and exit (tare
and procedures to be weight) to arrive at the net quantity of respective gross biomass
applied: fuel procured. The recorded data of weigh bridge can be cross
checked against the purchase receipts. Moisture content in
biomass will be adjusted in order to determine the quantity of
dry biomass using the following formula –

Dry weight of biomass = Gross weight of biomass × (1- %


moisture content in biomass fuel)

The total quantity of biomass procured for the project purpose


will be completely combusted in the power plant. Hence, the
total quantity of biomass procured and quantity of biomass
combusted is considered as same for the project activity.

Measurement equipment – Weighbridge


Accuracy of weighbridge - ± 1%
Monitoring frequency – For each fuel delivery
Responsible person/entity – Representative of PP
QA/QC procedures to Weighbridge undergoes maintenance subject to manufacturer’s
be applied: requirement. The weighbridge will be tested/calibrated once in
a year under Weights & measurement Act by Weight &
Measurement Controller Department of Chhattisgarh.
Any comment: Data will be kept for crediting period + 2 years

Data / Parameter: FFC,y


Data unit: MT/y
Description: Quantity of fossil fuel (Coal, Coal fines, Coal rejects,
Char/Dolochar, or ROM Coal etc.) combusted in the project
activity in year y.
Source of data to be Weigh bridge records
used:

12
Rice Husk, Rice Straw, Sal DOC, Saw Mill Wood Dust, Lops and Tops etc.

51
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Value of data First year :11290.40


Second year onwards:12701.70
( consumption of other types of fossil fuels combusted are
assumed to be zero)
Description of The trucks carrying fossil fuel is weighed by a calibrated
measurement methods weighbridge upon entry (loaded weight) and exit (tare weight) to
and procedures to be arrive at the net quantity of fossil fuel procured. The recorded data
applied: of weigh bridge can be cross checked against the purchase receipts.

The total quantity of fossil fuel procured for the project purpose
will be completely combusted in the power plant. Hence, the
total quantity of fossil fuel procured and quantity of fossil
combusted is considered as same for the project activity.

Measurement equipment – Weighbridge


Accuracy of weighbridge - ± 1%
Monitoring frequency – For each fuel delivery
Responsible person/entity – Representative of PP
QA/QC procedures to Weighbridge undergoes maintenance subject to manufacturer’s
be applied: requirement. The weighbridge will be tested/calibrated once in
a year under Weights & measurement Act by Weight &
Measurement Controller Department of Chhattisgarh.
Any comment: Data will be kept for crediting period + 2 years .

Data / Parameter: NCVc,y


Data unit: MJ/MT
Description: Weighted average net calorific value of fossil fuel (Coal, Coal
fines, Coal rejects, Char/Dolochar, or Roam Coal etc.)
consumed in year y
Source of data to be Lab reports
used:
Value of data Coal - 16044.94 (consumption of other types of fossil fuels
combusted are assumed to be zero)
Description of Samples of each fuel type would be collected from the plant and
measurement methods sent to third party laboratories where measurements are carried
rand procedures to be out as per national standards.
applied:
Monitoring frequency – Each fuel delivery from which
weighted average annual values will be calculated.
Responsible person/entity – Representative of PP
QA/QC procedures to Values will be verified with the uncertainty range of the IPCC
be applied: default values as provided in Table 1.2, Vol. 2 of the 2006 IPCC
Guidelines. If the values fall below this range additional
information will be collected from the testing laboratory to
justify the outcome or additional measurement will be
conducted. The third party labs would be having similar quality
standard to ISO17025.
Any comment: Data will be kept for crediting period + 2 years.

52
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Data / Parameter: NCVk,y


Data unit: MJ/MT
Description: Net calorific value of each subtype of biomass fuels consumed
in year y

Source of data to be Lab reports


used:
Value of data Samples of each biomass fuel subtype would be collected from
the plant and sent to third party laboratories where
measurements are carried out as per national standards.

Rice Husk - 13395.20 ( consumption of other subtypes of


biomass combusted are assumed to be zero; for the ex-ante
estimation)
Description of Monitoring frequency – Annual
measurement methods Responsible person/entity – Representative of PP
and procedures to be
applied:
QA/QC procedures to Consistency of the measurements results will be compared with
be applied: the measurement results of previous years, values in the relevant
data sources and default values by IPCC. If the measurement
results differ significantly from previous measurements or other
relevant data sources, additional measurements will be
conducted.
Any comment: Data will be kept for crediting period + 2 years.

Data / Parameter: Moisture contents in biomass fuel


Data unit: % water
Description: Moisture content in biomass fuel in year y.
Source of data to be Lab analysis reports
used:
Value of data 10
Description of Samples of each Biomass fuel subtype would be collected and
measurement methods sent to on-site laboratories where measurements are carried out
and procedures to be as per national standards.
applied:
Measured at monthly interval and weighted average will be
derived and weighted average value of moisture content will be
used to estimate the net quantity of dry biomass.
QA/QC procedures to Project participant has no control on the parameter. Hence, no
be applied: QA/QC procedures are applied.
Any comment Data will be kept for crediting period + 2 years.

Data / Parameter: FCi,j,y (vol)


Data unit: m3/y
Description: Quantity of fossil fuel (Diesel ) combusted in DG set during the
year y
Source of data to be Log books for diesel procured
used:

53
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Value of data 0 (assumed value for ex-ante calculation of emission reductions)


Description of On-site measurements using dip stick method.
measurement methods
and procedures to be Measurement equipment – Graduated linear scale
applied: Monitoring frequency – For each fuel delivery
Responsible person/entity – Representative of PP
Calibration frequency – once in a year

The total quantity of diesel procured for the project purpose will
be completely combusted in DG sets. Hence, the total quantity
of diesel procured and quantity of diesel combusted is
considered as same for the project activity.
QA/QC procedures to The data recorded can be cross checked against the fuel
be applied: purchase bills.
Any comment: Data will be kept for crediting period + 2 years.

Data / Parameter: EFCO2, i, y


Data unit: tCO2/TJ
Description: Weighted average CO2 emission factor of Diesel in year y
Source of data to be IPCC default value
used:
Value of data 74.8
Description of IPCC default value at the upper limit of the uncertainty at a
measurement methods 95% confidence interval as provided in Table 1.4 of chapter 1 of
and procedures to be Vol. 2 (Energy) of the 2006 IPCC Guidelines on National GHG
applied: inventories.
QA/QC procedures to Any future revision in the IPCC guideline will be taken in to
be applied: account.
Any comment: -

Data / Parameter: NCVi,y


Data unit: TJ/Gg
Description: Weighted average net calorific value of fossil fuel (Diesel)
combusted in DG set during the year y
Source of data to be IPCC default Value
used:
Value of data 43.3
Description of IPCC default value at the upper limit of the uncertainty at a
measurement methods 95% confidence interval as provided in Table 1.2 of chapter 1 of
and procedures to be Vol. 2 (Energy) of the 2006 IPCC Guidelines on National GHG
applied: inventories.
QA/QC procedures to Any future revision in the IPCC guideline will be taken in to
be applied: account.
Any comment: -

Data / Parameter: pi,y


Data unit: T/1000 litres
Description: Weighted average density of fossil fuel (Diesel) combusted in
year y

54
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Source of data to be CEA CO2 baseline data base


used:
Value of data 0.83
Description of CEA CO2 baseline data base
measurement methods
and procedures to be
applied:
QA/QC procedures to Any future revision in the CEA database will be taken in to
be applied: account.
Any comment: -

B.7.2 Description of the monitoring plan:


>
This monitoring plan would be developed in accordance with the modalities and
procedures for small scale CDM project activities and is proposed for grid-connected
biomass power project being implemented in state of Chhattisgarh in India. The
monitoring plan, which will be implemented by the project proponent describes about the
monitoring plan, operational and management structure, Data uncertainties and
emergency preparedness plan and roles and responsibilities for data collection and
archiving.

Monitoring Plan -

Monitoring plan covers monitoring of following major parameters:

1. Gross electricity generation of the biomass project activity.


2. Auxiliary consumption of the biomass project activity.
3. Monitoring of net electricity supplied to and purchased from
NEWNE grid.
4. Monitoring of quantity of each sub-type of biomass combusted in the
project activity.
5. Monitoring of fossil fuel i.e. coal quantity combusted in the project
activity.
6. Monitoring of fossil fuel i.e. diesel quantity consumed in DG set to
supply emergency power to project power plant.
7. Monitoring of NCV of each biomass sub-type
8. Monitoring of NCV of fossil fuel (coal)
9. Monitoring of moisture contents in each biomass sub-type
10. Weighted average CO2 emission factor of Diesel

Details of measurement procedures and calibration of equipment utilized for monitoring


of above parameters have been detailed in section B.7.1.

Operational and Management Structure –

The operational and management structure implemented by M/s Real Power is as


follows:

55
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Roles and responsibilities -


The responsibilities of various personnel in the organization in implementing the monitoring
plan are as follows:

Personnel Responsibility
Director Director is responsible for the total monitoring plan. Director will
examine the reports generated by General Manger (Tech.) with
reference to the monthly electricity generated; net electricity
exported to grid and annual emission reduction calculations as per
the monitoring plan.

He also examines the internal audit reports prepared by internal


auditor/ General manager and will in particular take note of any
deviations in data over the norms and monitor that the corrective
actions have resulted in adherence to standards
General Manager General Manager is responsible for the electricity generation of
(Tech.) the project. He would check and sign the daily plant operation
reports regularly, and report to Director for any abnormality. The
periodical tests of the monitoring equipments would be looked
after by him as per the monitoring plan.

The responsibility of storage and archiving of information in


good condition also lies with the General Manager. He would
also coordinate to obtain audit reports as per the monitoring plan .
General Manager Responsible to procure the fuels permitted by the Local statutory
(Comm. and authorities and to meet the plant daily requirement without any
Administration.) shortage.
In-charge Shift In-charge will monitor the plant parameters including the
(Operation) monitoring parameters as described in the PDD. He will collect
the data recorded in log sheets of respective sections and prepare
the consolidated report on fuel consumption, plant shut down
time, etc. for every shift. These reports would be submitted to the

56
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

General Manager for review.


In-charge Metering the electricity export to grid and electricity import from
(Electrical) Grid.

Data uncertainties and emergency preparedness plan –

Data uncertainty in the project activity monitoring could occur for the following parameters –

(a) Monitoring of electricity supplied to the NEWNE grid

Measurement procedure - Joint Meter reading of meter (energy meter) installed


at grid interface of Grid taken in the presence of Grid personnel and
representative of PP. The JMR readings can be cross checked with sale receipt
received from Grid.

Calibration - The energy meters (both main and check) are sealed and duly
calibrated as per norms of Grid, and will be calibrated timely as per norms of
Grid normally once in year. PP does not have any control over it.

Uncertainty procedure - During the tests, the meter is found to be beyond


permissible limits of error, meter shall be calibrated / changed immediately and
the reading from check meter will be used for CER calculation for the respective
period, the reading for check meter will be available with grid personals.

(b) Monitoring of fuel quantity( Biomass and fossil fuel combusted in Boiler)
Measurement procedure - The trucks carrying specific biomass fuel/fossil fuel is
weighed by a calibrated weighbridge upon entry (loaded weight) and exit (tare
weight) to arrive at the net quantity of respective gross biomass fuel/fossil fuel
procured. The recorded data of weighbridge can be cross checked against the
purchase receipts.

Calibration - Weighbridge undergoes maintenance subject to manufacturer’s


requirement. The weighbridge will be tested/calibrated once in a year under Weights
& measurement Act by Weight & Measurement Controller Department of
Chhattisgarh.

B.8 Date of completion of the application of the baseline and monitoring


methodology and the name of the responsible person(s)/entity(ies)
>>
Date of completing the final draft of this baseline and monitoring methodology: -
09//06/2011

Preparation of this document has been done by “Indus Technical and Financial
Consultants Ltd.”, who is project developer but not a Project Participant and whose
address is:

Shri Lalit Kumar Singhania, Dr R.K.Vishnoi , Shri Vikas Thakur


Indus Technical and Financial Consultants Ltd.
205, Samta Colony, In front of Shikarpuri Panchayat Bhawan.
Raipur City, Chhattisgarh State. 492001. INDIA

57
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Phone: +91 771-2255186, Fax: +91 771-2254188, Email: indusryp@satyam.net.in ,


Mobile: +91 94252-08189, +91 93011-93400

58
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity:


>> 22/11/2004 viz. Date of financial commitment for the CDM activity( first real action
towards project implementation)

C.1.2. Expected operational lifetime of the project activity:


>> 15 Years and 0.0 Months

C.2 Choice of the crediting period and related information:


Fixed crediting period has been selected

C.2.1. Renewable crediting period


Not Applicable.

C.2.1.1. Starting date of the first crediting period:


>> Not Applicable

C.2.1.2. Length of the first crediting period:


>> Not Applicable

C.2.2. Fixed crediting period:


Fixed crediting period of 10 years and 0 months

C.2.2.1. Starting date:


>> 15/08/2011 or from the date of complete submission of request of registration by the
DOE, whichever is later.

C.2.2.2. Length:
>> 10 Years 0 Month

59
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

SECTION D. Environmental impacts


>>
D.1. If required by the host Party, documentation on the analysis of the
environmental impacts of the project activity:
>>
As per the Ministry of Environment & Forest (MoEF), Government of India, Environmental
Impact Assessment (EIA) studies need not to be done for the projects less than 1000 millions
(Environment Impact Assessment Notification S.O. 60 (E), dated 27/01/1994). Since the total
cost of the project is only 300 millions and also comes under the small-scale category of
CDM projects as per UNFCCC guidelines, doesn’t call for EIA study. However prior to
implementation, the project shall notify to the Chhattisgarh Pollution Control Board for
necessary evaluation and approval. The project has obtained the “Consent to Establish” from
Chhattisgarh Pollution Control Board Environmental impact are considered in significant
as enumerated in D1, No adverse impact on environment will be there due to project
activity.

D.2. If environmental impacts are considered significant by the project


participants or the host Party, please provide conclusions and all references to
support documentation of an environmental impact assessment undertaken in
accordance with the procedures as required by the host Party:
>>
The environmental impacts of the project activity are not considered significant by the project
participant or by the host Party.

SECTION E. Stakeholders’ comments


>>

E.1. Brief description how comments by local stakeholders have been invited and
compiled:
>>
NRI identified the following as stake holders to keep the transparency in the operational
activity of the project promoter and thereby meeting local/ environmental
regulations –

1) Local Authority (Member of Legislative Assembly)


2) Local authority of Village Panchayat
3) State Pollution Control Board (PCB)
4) Chhattisgarh State Electricity Board (CSEB)

Management of Real Power Private Ltd (Formerly known as “NRI Power and Steel Pvt.
Ltd”) invited comments of local stakeholder upon project activity through public notice
published in newspapers namely “Deshbandhu” Bilaspur in Local language and
“Central Chronicle” in English language on dated 28/10/2008. A meeting of local
stakeholders of village panchayat Rambode was held on 28/11/2008 at NRI plant
premises and representative of management explain the CDM and project activity.

E.2. Summary of the comments received:


>> In response of news paper’s public notice no adverse comments were received
from stakeholders.

60
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Stakeholders who participated in the stakeholder’s meeting took part in the


discussion and after discussion they approved the project activity for
implementation at Village Khameria ,Rambod. District Bilaspur, Chhattisgarh.

List of comments raised in stakeholder meeting.

Sr. Name of villager Comments PP Response


No
1 Shri Tulsi Ram Sahu Preference should be Company has already
(Village-Rambod) given to local villagers employed good
in the employment number of local
villagers as skilled
and unskilled
labours.
2 Shri Mohan Preference should be Company has already
(Village-Rambod) given to local villagers employed good
in the employment number of local
villagers as skilled
and unskilled
labours.
3 Shri Rajesh Rajput Preference should be Company has already
(Village – Rambod) given to local villagers employed good
in the employment number of local
villagers as skilled
and unskilled
labours.
4 Shrimati Pushp Bai Rice husk should This will taken care.
(Village- Pendari) preferred for utilisation
5 Shrimati Shivkumar Power plant’s capacity Management
(Village- Pendari) should be enhanced. appreciated the
advice.
6 Shrimati Parmila Bai Power plant’s capacity Management
(Village – Pendari) should be enhanced. appreciated the
advise.
7 Shri Sanjay Dhruv Rice husk should This will be taken
(Village- Pendari) preferred for utilisation care.

E.3. Report on how due account was taken of any comments received:
>> There were no negative comments received from any of the stakeholder’s. Hence
no actions were required.

61
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT


ACTIVITY

Organization: Real Power Private Ltd


(Formerly known as “NRI Power and Steel Pvt. Ltd”)
Street/P.O.Box: Civil Lines, Opp. Holy Hearts School
Building: Vrindavan
City: Raipur
State/Region: Chhattisgarh
Postfix/ZIP: 492001
Country: India
Telephone: +91 771 4050600, 2445560
FAX: +91 771 2445510
E-Mail: rrpl@realispat.com
URL: -
Represented by: Mr. ShivAgrawal
Title: Director
Salutation: Mr.
Last Name: Agrawal
Middle Name: -
First Name: Shiv
Department: Administration
Mobile: +91 98271 33433
Direct FAX: +91 771 2445510
Direct tel: +91 771 4050600
Personal E-Mail: shivagrawal@realispat.com

62
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Annex 2

INFORMATION REGARDING PUBLIC FUNDING

NO PUBLIC FUNDING IS AVAILABLE FROM ANNEX-I COUNTRY

63
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

Annex 3

BASELINE INFORMATION

Please refer to section B.4 and B.6.1

Annex 4

64
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM – Executive Board

MONITORING INFORMATION

Please refer to section B.7.1 and B.7.2

65

You might also like