CDM-SSC-PDD (version 02) CDM – Executive Board page 1

CLEAN DEVELOPMENT MECHANISM

SIMPLIFIED PROJECT DESIGN DOCUMENT FOR SMALL-SCALE PROJECT ACTIVITIES (SSC-CDM-PDD)

Version 02

CONTENTS

A. General description of the small-scale project activity B. Baseline methodology C. Duration of the project activity / Crediting period D. Monitoring methodology and plan E. Calculation of GHG emission reductions by sources F. Environmental impacts G. Stakeholders comments Annexes Annex 1: Information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline Information

CDM-SSC-PDD (version 02) CDM – Executive Board page 2 SECTION A. General description of the small-scale project activity A.1. Title of the small-scale project activity: >> Rice husk based cogeneration power plant-II at SBPML

Version 03

Date 07 December 2006

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

Purpose

Shree Bhawani Paper Mills Limited (SBPML) is putting up a 3 MW rice husk based cogeneration facility

to meet the heat and power requirement of the paper mill expansion. In absence of this project activity the

heat and power requirement of the paper manufacturing facility expansion could have been met from rice

husk fired low pressure boilers and grid based power respectively. SBPML has already got one similar

project, operating at the same location, registered as a CDM project for which CERs have been issued upto

31st December 2005. This has prompted SBPML to opt for another high pressure rice husk based

cogeneration system alongwith the expansion of the paper manufacturing facility.

Biomass Availability

SBPML would be procuring rice husk from the neighboring districts. The latest available statistics

summary of district wise rice crop production (in tonnes) in the catchment region was as follows1:

District / Year Rae Bareli Allahabad Sultanpur Pratapgarh

2000-01 209,971 385,279 329,125 172,170

2001-02 299,278 364,115 358,477 231,694

2002-03 223,545 315,023 263,269 179,042

Average 244,264 354,805 316,957 194,302

Rice husk (28% of the rice crop) 68,394 99,345 88,748 54,404

Thus it can be seen that on an average the total rice husk available from the neighboring regions is of the

order of 310,891 tonnes per annum (tpa). The requirement of rice husk for this project is around 40,000

1 http://upgov.up.nic.in/engspatrika/zspmenu.asp?state=V2

CDM-SSC-PDD (version 02) CDM – Executive Board page 3 tpa. This is besides about 55,000 tpa of rice husk being presently consumed by SBPML. Thus it is ensured

that sufficient quantity of rice husk is available for the project.

Project Activity’s contribution to Sustainable Development

The contributions of the project activity towards sustainable development are as follows:

Social well being – The project activity results in generation of employment. The employment generation

would be during the time of construction of the project activity and also during the operational phase

wherein people would be employed for running the cogeneration facility once it gets commissioned.

Economic well being – The project activity would require rice husk which would be procured from the

nearby areas. This would lead to additional income generation for the local farmers who would be able to

sell the rice husk for effective utilization in the project activity.

Environmental well being – The project activity helps in sustainable usage of natural resources. By

replacing the fossil fuel based power generation with rice husk fired boilers for power generation the

project activity results in reduction in GHG emissions.

Technological well being – The technology being used in the project activity represents the best available

environmentally safe and sound technology for the application. The equipments being supplied for the

project activity are from well established equipment manufacturers in the Indian market.

Thus it is ensured that the project activity contributes positively to the stipulated sustainable development

indicators.

A.3. Project participants: >> Name of Party involved (*)

((host) indicates a host party)

Private and/or public entity(ies) Project participants(*)

(as applicable)

Party involved wishes to be considered as project

participant (Yes/No)

India (host) Shree Bhawani Paper Mills Limited No

CDM-SSC-PDD (version 02) CDM – Executive Board page 4 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.: >> Uttar Pradesh A.4.1.3. City/Town/Community etc: >> Industrial area one, Sultanpur road, Rae Bareli A.4.1.4. Detail of physical location, including information allowing the unique identification of this small-scale project activity(ies): >> The project activity is located at industrial area No. 1, Sultanpur road, Rae Bareli in the premises of

SBPML. It is located on the Lucknow – Allahabad highway at a distance of about 80 kms from Lucknow.

CDM-SSC-PDD (version 02) CDM – Executive Board page 5

Location of the Project Activity (map not to scale)

CDM-SSC-PDD (version 02) CDM – Executive Board page 6 A.4.2. Type and category(ies) and technology of the small-scale project activity: >>

Main Category :

Type I – Renewable energy projects

Sub – Category :

D – Grid connected renewable electricity generation

The basic criteria for a small scale CDM project activity of Type (i) renewable energy project activities is

that maximum output capacity of project activity should not exceed 15 MW. Since the proposed project

activity is biomass (Renewable energy) based cogeneration power plant of capacity 3 MW, it clearly

satisfies the required criteria. Hence, the project falls under the Type I - Renewable energy projects of

indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity

categories. Further, this project displaces grid based power supply hence it falls under the Category D -

Grid connected renewable electricity generation.

And further to qualify under this category, the sum of all forms of energy output shall not exceed 45

MWthermal. E.g., for a biomass based co-generating system the rating for all the boilers combined shall not

exceed 45 MWthermal. The project activity clearly qualifies the said criteria since the rating of the boiler is

less than the stipulated limit as shown below:

Boiler Capacity: 24 TPH

6.67 kg/s (= 24 *1000/3600)

Energy of steam: 3300 kJ/kg (at 45 Kg/cm2 pressure and 440 °C temperature)

3.3 MJ/kg

Energy of water (at 100 °C) 418 kJ/kg

0.418 MJ/kg

Boiler rating: 6.67*(3.3 – 0.418)

19.22 MWthermal

Technology of project activity

The project activity is a rice husk based cogeneration plant wherein high-pressure steam turbine

configuration will be used. Fluidized Bed Combustion (FBC) technology will be used for generating steam,

which represents the best available technology as compared to pile burning and stoker fired boilers2. Since

2 http://www.nrdcindia.com/pages/fbc.htm

CDM-SSC-PDD (version 02) CDM – Executive Board page 7 there is requirement of steam as well as power at the manufacturing set-up, so extraction cum condensing

turbine is the best option for the project. The project activity will also have an electrostatic precipitator to

control the emissions arising due to the combustions. The specifications of the systems in the project

activity are as follows:

Boiler

Type: Atmospheric Fluidized Bed Combustion (AFBC) Boiler

Pressure: 44 kg/cm2

Temperature: 440 °C

Capacity: 24 tph

Fuel: Rice Husk

Efficiency: 82 %

Turbine

Type: Multistage, Extraction cum condensing turbine, Horizontal, Impulse type

Capacity: 3 MW

Inlet steam pressure: 42 kg/cm2

Temperature: 430 °C

Rated speed: 8250 RPM

Gearbox output speed: 1500 RPM

Alternator

Rating: 3 MW, 3750 kVA

Type: Brushless Excitation

Generation Voltage: 400/440 Volts

Frequency: 50 Hz

Speed: 1500 RPM

Condensor

Capacity: 11 tph

Cooling water inlet temp.: 32 °C

Cooling water outlet temp.: 40 °C

Total cooling water flow-rate: 785 m3/Hr

CDM-SSC-PDD (version 02) CDM – Executive Board page 8 A.4.3. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gas (GHGs) by sources are to be reduced by the proposed small-scale project activity, including why the emission reductions would not occur in the absence of the proposed small-scale project activity, taking into account national and/or sectoral policies and circumstances: >>

The project activity will be displacing grid based power with a carbon neutral fuel (rice husk) for power

generation. Thus the GHG emissions which would have been produced due to the combustion of fossil fuels

(coal, gas) in the grid based power plants will be avoided.

The Uttar Pradesh State Power Policy 2003 as given by the Government of Uttar Pradesh (GOUP) states

that it would encourage and support power generation through renewable energy sources such as solar,

wind etc. GOUP will come up with special policy framework to support such projects3, as of now no such

framework is existent. The New and Renewable Energy Policy Statement 20054 as given by Ministry of

Non-conventional Energy Sources (MNES), Government of India also does not talk of such kind of project

activities. The project activity being carried out by SBPML is a voluntary initiative to reduce the GHG

emissions.

A.4.3.1 Estimated amount of emission reductions over the chosen crediting period: >>

Years Annual Estimation of emission reduction in tonnes of CO2e

2007-08 13,993 2008-09 13,993 2009-10 13,993 2010-11 13,993 2011-12 13,993 2012-13 13,993 2013-14 13,993 2014-15 13,993 2015-16 13,993 2016-17 13,993

Total estimated reductions (tonnes of CO2e) 139,930

Total number of crediting years 10 years

Annual Average over the crediting period of estimated reduction (tonnes

of CO2e)

13,993

3 http://upgov.nic.in/ 4 http://mnes.nic.in/Rene%202005_new.pdf

CDM-SSC-PDD (version 02) CDM – Executive Board page 9 A.4.4. Public funding of the small-scale project activity: >>

No public funding as part of project financing from parties included in Annex I of the convention is

involved in the project activity.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a larger project activity: >>

The guideline for de-bundling mentioned in paragraph 2 of appendix C of the Simplified Modalities and

Procedures for Small-Scale CDM project activities is given as follows:

A proposed small scale project activity shall be deemed to be a de-bundled component of a large project

activity, if there is a registered small-scale CDM project activity or an application to register another

small-scale CDM project activity.

• With the same project participants;

• In the same project category and technology/measure; and

• Registered within the previous 2 years

• Whose project boundary is within 1 km of the project boundary of the proposed small-scale

activity at the closest point.

The project proponent has already got a registered CDM project in same project category at the same

location5. Since the total size of both the projects combined with the proposed project activity will be

equivalent to 38.44 MWthermal (2x19.22), it is below the limits specified for the small-scale CDM

project activities which is 45 MWthermal Thus the project activity qualifies for the use of simplified

modalities and procedures for small-scale CDM project activities.

5 http://cdm.unfccc.int/Projects/DB/TUEV-SUED1135237103.39/view.html

CDM-SSC-PDD (version 02) CDM – Executive Board page 10

SECTION B. Application of a baseline methodology: B.1. Title and reference of the approved baseline methodology applied to the small-scale project activity: >>

As mentioned in A.4.2, the project activity satisfies the eligibility criteria to use “Simplified modalities and

procedures for small-scale CDM project facilities”.

The approved baseline methodology has been referred from the Indicative simplified baseline and

monitoring methodologies for selected small-scale CDM project activity categories - version 09 -

28 July 2006. From this reference, the following category is selected for the project activity:

Type I – Renewable energy projects

Category D – Grid connected renewable electricity generation.

B.2 Project category applicable to the small-scale project activity: >>

As explained in A4.2, the proposed project activity falls under the Type I Category D – Grid connected

renewable electricity generation.

Baseline for projects under Category I.D has been detailed in paragraphs 7, 8, 9, 10 and 11 of “Indicative

simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories”

- version 09 - 28 July 2006. Due to the following reasons, the paragraphs 7, 8 and 11 are not applicable to

this project activity:

• the project activity is not a landfill gas, waste gas, waste water treatment and agro industries

project

• power generation through diesel generators is economically prohibitive

• the project activity does not seek to retrofit or modify an existing facility for renewable energy

generation.

The baseline of the project activity would be based on the paragraph 9, which is given as follows.

Paragraph 9 – The baseline is the kWh produced by the renewable generating unit multiplied by an

emission coefficient (measured in kg CO2equ/kWh) calculated in a transparent and conservative manner

as:

CDM-SSC-PDD (version 02) CDM – Executive Board page 11 (a) A combined margin (CM), consisting of the combination of operating margin (OM) and build margin

(BM) according to the procedures prescribed in the approved methodology ACM0002. Any of the four

procedures to calculate the operating margin can be chosen, but the restrictions to use the Simple OM and

the Average OM calculations must be considered

OR

(b) The weighted average emissions (in kg CO2equ/kWh) of the current generation mix. The data of the year

in which project generation occurs must be used.

Calculations must be based on data from an official source (where available) and made publicly available.

The project activity would displace the electricity which would have been drawn from the grid. The

baseline is calculated according to the procedures prescribed in the approved methodology ACM0002. The

first step to estimate the baseline emission coefficient is selection of grid boundary. There are five regions

in India with respect to electrical transmission systems namely Northern Region, North Eastern Region,

Eastern Region, Southern Region and Western Region. Northern region grid comprises of Delhi, Punjab,

Haryana, Chandigarh, Rajasthan, Jammu & Kashmir, Uttranchal, Uttar Pradesh and Himachal Pradesh.

The project activity is located in Uttar Pradesh state, which falls under Northern region. Hence, Northern

region grid is selected as grid boundary to estimate the baseline emission factor.

The baseline emissions are calculated using the average of the approximate operating margin and the build

margin, which takes into consideration the trends of future capacity additions. Hence, it would represent the

realistic anthropogenic emissions by sources that would occur in absence of the project activity. The details

of baseline emission estimation are given in Annex 3.

B.3. 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: >>

The implementation of the project activity faces the following barriers:

Investment barrier

SBPML has got one similar project operating at the same location registered as a CDM project for which

CERs have been issued upto 31st December 2005. This prompted SBPML to undertake the next project

activity also as a CDM project. The carbon credit revenues that would accrue from the project activity

were informed to the various investors. Financial closure for the project activity has been achieved due to

the consideration of CDM revenues. The loan component of the project has been financed by the same two

bankers who funded the earlier CDM project. For raising the equity component, the existing shareholders

CDM-SSC-PDD (version 02) CDM – Executive Board page 12 were offered fresh equity shares on Rights basis. This was the first Rights Issue of equity shares by a

Company in India, which had a registered CDM project and the proceeds from the issue were used to fund

the next CDM project.

In the letter of offer for Rights issue mailed to all the shareholders on 1st April 2006, detailed information

about the CDM projects being carried out by SBPML was given. Subsequently, on 21st April 2006,

individual letters were mailed to shareholders informing them about the earlier CDM project of SBPML

which got registered on 3rd February 2006. Other details of communication with the shareholders will be

shared with the DOE. The CDM consideration has led to achieving the financial closure of the project

activity. Also, subsequently CDM revenues would help in overcoming the increase in the rice husk prices

as is being seen in other parts of the country.

Technological barrier

There are primarily two types of combustion technologies available for biomass combustion – grate firing

and fluidised bed combustion. The first is a traditional technology whilst the second is a fairly recent

innovation6. SBPML has opted for the more advanced fluidised bed combustion technology for the high

pressure boiler of the project activity. As compared to the less technologically intensive stepped grate

furnace which has a lower efficiency of around 55-60%, the fluidised bed combustion technology gives

higher efficiencies of the order of 75-80%7. The FBC also results in reduced NOx emissions because of the

lower temperatures involved and in process capture of SO2. As per the available statistics the penetration of

FBC boilers in the pulp & paper industry in India is only around ten percent8.

Rice husk ash contains high percentage of silica which leads to rapid erosion of the equipments. Due to

high silica content and the shape of rice husk, equipments like ID fan, cone portion of air pre-heater and top

portion of the stack get eroded which leads to high maintenance cost, frequent breakdown and increased

downtime. Presence of silica in rice husk ash also corrodes boiler tubes which require frequent maintenance

of the boiler. Further, in rice husk fired boilers, escape of fluidized media along with flue gas is a common

problem. To compensate this and to maintain fluidized bed thickness, fluidizing media is required to be

added at regular intervals. This leads to variation in the air requirement; also the fuel flow control with

respect to the steam output is difficult in biomass fired boilers. Hence, the operation & control of biomass

fired boiler requires skilled boiler operators.

6 http://europa.eu.int/comm/energy_transport/atlas/htmlu/bioeint.html 7 http://www.nrdcindia.com/pages/fbc.htm

CDM-SSC-PDD (version 02) CDM – Executive Board page 13 SBPML had perceived above-mentioned technological risks associated with biomass utilization based on

their experience in running the boilers. For overcoming the problem of corrosion of equipments, an Electro

Static Precipitator (ESP) has been installed although the air pollution norms could have been met by

installing Mechanical Dust Collectors (MDC), which is much cheaper. The CDM revenues would

compensate this additional investment and costs involved in overcoming the other technical problems.

Barriers due to prevailing practices

The Uttar Pradesh State Power Policy 2003 as given by the Government of Uttar Pradesh (GOUP) states

that it would encourage and support power generation through renewable energy sources such as solar,

wind etc. GOUP will come up with special policy framework to support such projects9. The project activity

being carried out by SBPML is a voluntary initiative to reduce the GHG emissions. Thus due to lack of

government policy the paper industry sector has little or no incentive to move towards implementation of

technologies which would lead to lower emissions.

There are around 82 paper mills existent in the state of Uttar Pradesh10 and they are meeting their power

requirement by one of the following modes as listed below:

S.No

. Mode of Power Supply

Investment

(per MW)

GHG

Emissions

No. of

Units

%age of

Units

1 Power through state grid Low High

2 Power through captive DG sets Moderate High 70

3 Power through Coal based cogeneration

system High Very High 1

87

4 Power through biomass based cogeneration

system High Nil 11 13

Total 82 100

From the above figures it is clearly demonstrated that the prevailing practice in the region is power

generation through GHG emitting sources whether it is grid based supply or diesel or coal based captive

8 http://www.cleantechindia.com/eicnew/bhup.htm 9 http://upgov.nic.in/ 10 Indian Agro and Recycled Paper Mills Association, New Delhi

CDM-SSC-PDD (version 02) CDM – Executive Board page 14 power generation. Only few paper mills have registered rice husk fired FBC type high pressure boilers11

installed at their premises for steam and power generation in the state. Presently of these paper mills only

12 units (including SBPML) have high pressure boilers at their manufacturing facilities. Of these one is a

coal fired boiler and the rest are based on biomass with provision of firing coal during shortage of biomass.

The SBPML project activity is fully based on rice husk with no provision of coal firing.

Further, as per information in public domain, the following four paper mills in the state of Uttar Pradesh

are in the process of availing carbon benefits through CDM for similar biomass based cogeneration

projects:

1. K. R. Pulp & Papers Pvt. Ltd.12

2. Garg Duplex & Papers Pvt. Ltd.13

3. Yash Papers ltd.14

4. Siddeshwari Industries Pvt. Ltd.15

This clearly demonstrates that rice husk based cogeneration activity in paper mills is not a prevailing

practice in the region.

Other barriers

Assured supply of fuel

Continuous and uninterrupted supply of grid supply or fuel (diesel for generators) from nearby depots of

the oil companies at Kanpur/Lucknow does not require SBPML to deploy manpower. On the other hand,

rice husk being an agricultural produce is dependent on the vagaries of the nature, has to be sourced from a

large number of suppliers and is seasonal in nature. Getting assured supply of biomass is dependent on

many uncontrolled parameters thereby increasing the risks in the project activity.

Although so many barriers are associated with the project activity still SBPML has gone ahead with the

implementation of the project activity taking CDM into consideration. CDM funding to SBPML would also

encourage other paper industries to follow suit and thereby contribute towards GHG emission reduction.

11 Boiler Directorate of Uttar Pradesh 12 http://cdm.unfccc.int/Projects/Validation/DB/PTLZA11EUGT9OTMV2HKNYYJUH0HBTY/view.html 13 http://cdm.unfccc.int/Projects/Validation/DB/PTLZA11EUGT9OTMV2HKNYYJUH0HBTY/view.html 14 http://cdm.unfccc.int/Projects/Validation/DB/ZLWQKJSXMQI3EUQ04OBFRAK5N3ZD4G/view.html 15 http://cdm.unfccc.int/Projects/Validation/DB/4K382Z6OP1U3O84O8505L1BXY0PKCK/view.html

CDM-SSC-PDD (version 02) CDM – Executive Board page 15 B.4. Description of how the definition of the project boundary related to the baseline methodology selected is applied to the small-scale project activity: >>

As per the guidelines provided in the approved methodology, project boundary encompasses the physical

and geographical site of the renewable generation source. The project boundary covers the biomass based

cogeneration power plant, which starts from the biomass storage to the point of power supply to paper mill

where the project proponent has a full control. Thus, project boundary includes biomass storage, biomass

fired boiler, electricity and steam generation from the cogeneration system, auxiliary consumption and

electricity supplied to paper mill. However, for the purpose of calculation of baseline emissions, northern

grid is included in the system boundary. The project boundary is illustrated in the following diagram:

Rice husk source

Rice husk storage

Rice husk fired boiler

Electricity & steam generation

Electricity & steam to paper mill

Auxiliary consumption

Emissions generated

Emissions sequesterd

Project Boundary

CDM-SSC-PDD (version 02) CDM – Executive Board page 16

B.5. Details of the baseline and its development: >>

B.5.1. The baseline for the proposed project activity has been estimated by using the methodology specified

in the applicable project category for small-scale CDM project activities. The baseline is the product of

annual electricity (in GWh) generated by the project activity and northern grid emission factor of 750.87

tCO2/GWh detailed in Annex 3.

B.5.2. Date of completion of the baseline in DD/MM/YYYY

06/12/2006

B.5.3. Name of person/entity determining the baseline:

Shree Bhawani Paper Mills Limited. The entity is also a project participant listed in Annex 1 of this

document.

CDM-SSC-PDD (version 02) CDM – Executive Board page 17 SECTION C. Duration of the project activity / Crediting period: C.1. Duration of the small-scale project activity: C.1.1. Starting date of the small-scale project activity: >> 03/02/2006 C.1.2. Expected operational lifetime of the small-scale project activity: >> 25 years C.2. Choice of crediting period and related information: >> The project activity will use the fixed crediting period. C.2.1. Renewable crediting period: C.2.1.1. Starting date of the first crediting period: >> Not selected C.2.1.2. Length of the first crediting period: >> Not selected C.2.2. Fixed crediting period: >> 10 years C.2.2.1. Starting date: >> 15/01/2007 C.2.2.2. Length: >> 10 years

CDM-SSC-PDD (version 02) CDM – Executive Board page 18 SECTION D. Application of a monitoring methodology and plan: D.1. Name and reference of approved monitoring methodology applied to the small-scale project activity: >>

The project activity uses the approved monitoring methodology as follows:

Type I – Renewable energy projects

Category D – Grid connected renewable electricity generation.

Reference: The monitoring methodology of the project activity is referred from ‘Paragraph 13’ of Type I -

Category D of indicative simplified baseline and monitoring methodologies for selected small-scale CDM

project activity categories - version 09 – 28 July 2006’.

D.2. Justification of the choice of the methodology and why it is applicable to the small-scale project activity: >>

As per the paragraph 12 of Simplified Modalities and Procedures for Small Scale CDM Project activities,

a proposed project activity shall,

(a) Meet the eligibility criteria for small-scale CDM project activities set out in paragraph 6 (c) of decision

17/CP.7;

(b Conform to one of the project categories in appendix B to this annex;

(c) Not be a de-bundled component of a larger project activity, as determined through appendix C to this

annex.

As explained earlier in A4.2, the project activity meets the eligibility criteria for small-scale CDM project

activities set out in paragraph 6 (c) of decision 17/CP.7, falls under small-scale CDM project of Type I.

Category D and is not a de-bundled component of a larger project activity.

The monitoring plan has been drawn as per the guidance provided in paragraph 13 of ‘Indicative simplified

baseline and monitoring methodologies for selected small-scale CDM project activity categories Type I -

Category 1.D - version 09 – 28 July 2006’

Description of monitoring plan

The project activity will have two separate meters to record the gross power produced and auxiliary power

consumed. The monitoring and verification system would mainly comprise of these meters as far as power

CDM-SSC-PDD (version 02) CDM – Executive Board page 19 supplied to the manufacturing facility is concerned. The rice husk input is also to be monitored. All

monitoring and control functions will be done as per the internally accepted standards of SBPML. All

instruments will be calibrated and marked at regular intervals so that the accuracy of measurement can be

ensured all the time.

GHG Sources

Direct On-Site Emissions

Direct on-site emissions of the project activity arise from the combustion of rice husk in the boiler. These

emissions mainly include CO2. However, the CO2 released is very less as compared to the amount of CO2

sequestered during the growth of the rice, thereby making it a carbon neutral fuel.

Direct Off-Site Emissions

Direct off-site emissions in the project activity arise from the rice husk transport.

Indirect On-Site Emissions

The indirect on site GHG source is the consumption of energy and the emission of GHGs involved in the

construction of rice husk based power plant. Considering the life of the cogeneration plant and the

emissions to be avoided in the life span, emissions from the above-mentioned source are too small and

hence neglected. No other indirect on-site emissions are anticipated from the project activity.

Project Parameters affecting Emission Reduction

Fuel related parameters:

Quantity of rice husk used in the boiler as fuel

The rice husk received is stored in the plant’s storage area. The amount of rice husk entering the plant will

be measured and records of the same will be maintained. The weighing system needs to be calibrated

regularly to ensure the accuracy of the measurement. The data will be recorded for further verification. The

amount of rice husk purchased will be based on invoices / receipts from fuel contractors.

Quality of rice husk used in the boiler

The properties of the rice husk used as fuel in the boiler would be determined from ultimate analysis.

CDM-SSC-PDD (version 02) CDM – Executive Board page 20

Operational Parameters of the power generating Unit

Total Electricity Generated

The total electricity generated by the cogeneration project will be measured in the plant premises to the best

accuracy and will be monitored and recorded, on a continuous basis by the electronic power and energy

meter. The integrated readings are recorded on manual log book for every 8 hour shift.

Auxiliary Consumption

The electricity consumed by plant auxiliaries will be recorded in the plant premises to the best accuracy.

This will be monitored and recorded on a continuous basis by the electronic power and energy meter. The

integrated readings are recorded on manual log book for every 8 hour shift. The total quantum of electricity

consumed by the auxiliaries would affect the total electricity supplied to the manufacturing facility and

therefore the amount of GHG reductions.

Power exported to the manufacturing facility

It will be calculated based on deduction of auxiliary consumption from the total electricity generated.

Verification

The performance of the rice husk based cogeneration project leads to CO2 emission reductions. In other

words, the longer the power plant runs and supplies power to the manufacturing facility, more would be the

emission reductions. The major activities to be verified are as under

• Verification of various measurement and monitoring methods

• Verification of instrument calibration methods

• Verification of measurement accuracy

CDM-SSC-PDD (version 02) CDM – Executive Board page 21 D.3 Data to be monitored: >> a) Parameters affecting the emission reduction potential of the project activity

ID No.

Data Variable

Data unit Source of data

Measured (m), calculated (c) or estimated (e)

Recording frequency

Proportion of data to be monitored

How will the data be archived? (electronic/ paper)

For how long is archived data to be kept?

Comment

1 Total electricity generated

kWh Electronic Power

and Energy meter,

Daily log books

m Every 8 hours

Total Paper Crediting Period (CP)+2 years

Measured in plant premises and monitored and recorded every shift (8 hours). Along with the energy meter recording the kW, Ampere and power factor will also be monitored on an hourly basis. This will help in cross-checking the gross generated figure.

2 Auxiliary consumption

kWh Electronic meter, Daily log

books

m Every 8 hours

Total Paper CP + 2 years Measured in plant premises and monitored and recorded continuously.

3 Power supplied to plant

kWh Daily log books

c Every 8 hours

Total Paper CP+2 years

CDM-SSC-PDD (version 02) CDM – Executive Board page 22 b) Fuel related parameters affecting the project activity ID No.

Data variable

Data unit

Source of data

Measured (m), calculated (c) or estimated (e)

Recording frequency

Proportion of data to be monitored

How will the data be archived? (electronic/ paper)

For how long is archived data to be kept?

Comment

1 Rice husk quantity

MT Invoice M Daily 100% paper CP+2 years To be monitored at purchase, storage and usage.

2 Rice husk calorific value

Kcal/kg Test reports

M - Sample testing

paper CP+2 years Obtained through sample testing

CDM-SSC-PDD (version 02) CDM – Executive Board page 23 D.4. Qualitative explanation of how quality control (QC) and quality assurance (QA) procedures are undertaken: >>

Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored.

(Data items in tables contained in section D.3 (a to b) above, as applicable)

Data

Uncertainty level of

data

(High/Medium/Low)

Are QA/QC

procedures

planned for

these data?

Explain QA/QC procedures planned for these data, or why

such procedures are not necessary.

D.3.(a)1 Low Yes This data will be used for calculation of emission reductions

by project activity. The gross generation figure can be cross

checked by the voltage meter, ammeter and power factor meter

readings which are recorded on an hourly basis. A spare

master meter is also in place in case the power meter goes out

of order or the calibration is disturbed. The energy meters

installed to measure the total power generated would be

tamper proof and would retain the last recorded reading even

under power failure conditions. They will have class 1.0

accuracy conforming to IS 13779 standards. For digital read

outs the error is computed in counts:

Class 1.0 = ±1% of the full scale + 1 counts.

Calibration of the meters from external certified agencies

would be carried out annually.

D.3.(a)2 Low Yes This data will be used for calculation of emission reductions

by project activity. The auxiliary consumption figure can be

cross checked by the voltage meter, ammeter and power factor

meter readings which are recorded on an hourly basis. A spare

master meter is also in place in case the auxiliary meter goes

out of order or the calibration is disturbed. The energy meters

installed to measure the auxiliary power consumption would

be tamper proof and would retain the last recorded reading

even under power failure conditions. They will have class 1.0

accuracy conforming to IS 13779 standards. For digital read

outs the error is computed in counts:

CDM-SSC-PDD (version 02) CDM – Executive Board page 24 Data

Uncertainty level of

data

(High/Medium/Low)

Are QA/QC

procedures

planned for

these data?

Explain QA/QC procedures planned for these data, or why

such procedures are not necessary.

Class 1.0 = ±1% of the full scale + 1 counts

Calibration of the meters from external certified agencies

would be carried out annually.

D.3.(a)3 Low Yes This is a calculated value

D.3.(b)1 Medium No This data will be used as supporting information.

D.3.(b)2 Low No The calorific value of the rice husk is fairly constant and thus

no QA/QC procedures are required

D.5. Please describe briefly the operational and management structure that the project participant(s) will implement in order to monitor emission reductions and any leakage effects generated by the project activity: >>

SBPML would ensure accuracy of the measurement system as follows:

• The shift in-charges will be responsible for the hourly data recording of the relevant parameters

and also the recording of the total energy generated for every 8 hour shift. Any discrepancy

observed in the readings (based on the past data) is addressed promptly. The mechanical and

electrical managers will ensure that the data is properly archived.

• The managers will be qualified technical personnel with more than 20 years experience in relevant

field. All the shift in-charges will be diploma holders.

D.6. Name of person/entity determining the monitoring methodology: >>

Shree Bhawani Paper Mills Limited

The entity is also a project participant as listed in Annex 1 of this document.

CDM-SSC-PDD (version 02) CDM – Executive Board page 25

SECTION E.: Estimation of GHG emissions by sources: E.1. Formulae used: E.1.1 Selected formulae as provided in appendix B: >>

Not applicable

E.1.2 Description of formulae when not provided in appendix B: >>

E.1.2.1 Describe the formulae used to estimate anthropogenic emissions by sources of GHGs due to the project activity within the project boundary: >>

Essentially there would be no GHG emissions due to the project activity within the project boundary

because the fuel being used is rice husk. The GHG emission due to the burning of rice husk is negated by

the sequestration done during the growth of rice, thereby making it a carbon neutral fuel. Thus there are no

anthropogenic emissions due to the project activity within the project boundary.

E.1.2.2 Describe the formulae used to estimate leakage due to the project activity, where required, for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities >>

As per the methodology leakage estimation is only required if renewable energy technology is equipment

transferred from another activity. This does not apply to the project case. However, the only source of

considerable GHG emissions, which are attributable to the project activity lying outside the project

boundary will be the emissions arising during the transportation of rice husk. The same have been

estimated below.

Emissions due to the transportation of Rice husk

Total rice husk required 40,000 tonnes/year

Rice husk transported by truck 40,000 tonnes/year

Rice husk load per truck 8 tonnes

Total number of Trips 5,000

Max distance between the 60 km

CDM-SSC-PDD (version 02) CDM – Executive Board page 26 Project site and collection centers

Consumption of diesel per trip (to and fro) 30 Liters

(@ 4 km/ lit)

Total Diesel Consumption 150,000 Liters

Calorific Value of Diesel 0.0000283 TJ/lit

Emission Factor for Diesel 74.1 tonnes of CO2/TJ

Total Emissions due to transportation of Rice husk 315 tCO2

Since these emissions are less than 2% of the total emission reductions by the project activity, they have not

been considered in the calculation of emission reductions.

E.1.2.3 The sum of E.1.2.1 and E.1.2.2 represents the small-scale project activity emissions: >>

There are no emissions due to the small-scale project activity.

E.1.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of GHGs in the baseline using the baseline methodology for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities: >>

The baseline emission is due the electricity displaced from the northern grid. The present power

generation mix of northern region grid has been used to estimate the net baseline emission factor. It is

estimated as per the guidelines given in the paragraph 9 of ‘Indicative simplified baseline and

monitoring methodology for selected small-scale CDM project activity - Type I - Category D - version

09 – 28 July 2006’.

The emission coefficient has been calculated as ‘the average of the approximate operating margin and

the build margin’.

The step-by-step calculation of base line emission is as follows:

STEP 1. Calculation of Operating Margin emission factor (EFOM)

j

jjiji

jiyOM GENCOEFFEF ∑∑ ×= /,,

,,

Where

CDM-SSC-PDD (version 02) CDM – Executive Board page 27 COEFi, j - the CO2 emission coefficient of fuel i (t CO2 / mass or volume unit of the fuel),

GENj, - the electricity (GWh) delivered to the grid by source j

Fi, j -the amount of fuel i (in a mass or volume unit) consumed by relevant power sources j, calculated as given below

j - the power sources delivering electricity to the grid, not including low-operating cost and must-run power plants

The CO2 emission coefficient COEFi is estimated as

iiCOii OXIDEFNCVCOEF ××= ,2

Where

NCVi - the net calorific value (energy content) per mass or volume unit of a fuel i

EFCO2,i - the CO2 emission factor per unit of energy of the fuel i

OXIDi - the oxidation factor of the fuel

The OM emission factor (EFOM, y) has been calculated ex-ante, separately for the most recent three years

(2003-2004, 2004-2005 and 2005-2006) and an average value has been considered as the OM emission

factor for the baseline (EFOM,).

∑= 3/, yOMOM EFEF

Where y represents the year

STEP 2. Calculation of the Build Margin emission factor (EF BM,)

It is calculated as the generation-weighted average emission factor (t CO2/GWh) of a sample of power

plants m of grid, as follows:

mm

mimimi

BM GENCOEFFEF ∑∑ ×= /,,,

Where

F i, m, COEF i ,m and GEN m - are analogous to the variables described in OM method above for plants m.

The Build Margin emission factor EF BM has been calculated as ex-ante based on the most recent

information available on plants already built for sample group m of Northern region grid at the time of

PDD submission. The sample group m consists of the recent 20 % of power plants supplying electricity to

northern region grid, as it comprises of larger annual power generation.

CDM-SSC-PDD (version 02) CDM – Executive Board page 28 Further, none of the power plant in the sample group has been registered as CDM project activities.

STEP 3. Calculation of the electricity baseline emission factor (EFy)

It is calculated as the weighted average of the Operating Margin emission factor (EF OM,) and the Build

Margin emission factor (EF BM,):

BMBMOMOMy EFWEFWEF ×+×=

where the weights W OM and W BM, by default, are 50% (i.e., WOM = WBM = 0.5), and EFOM, and EFBM are

calculated as described in Steps 1 and 2 above and are expressed in t CO2/GWh.

yyy EGEFBE ×=

Where

BEy - are the baseline emissions due to displacement of electricity during the year y in tons of CO2

EGy- is the net quantity of electricity generated by the project activity during the year y in GWh, and

EF y- is the CO2 baseline emission factor for the electricity displaced due to the project activity in tons

CO2/GWh.

In case, the same amount of electricity is generated by the Northern region grid mix, it adds to the

emissions that are ultimately getting reduced by the project activity. Therefore, the baseline estimated

using above methods / scenarios would represent the realistic anthropogenic emissions by sources that

would have occurred in absence of the project activity.

The uncertainties in the baseline, arising out of capacity additions trends are already taken into

consideration during estimation of combined margin factor. The key information and data related to

baseline estimation is given in Annex 3.

E.1.2.5 Difference between E.1.2.4 and E.1.2.3 represents the emission reductions due to the project activity during a given period: >>

Following formula is used to determine emission reduction

CO2 emission reduction due to project activity

= (Baseline emission) - (Project emissions )

CDM-SSC-PDD (version 02) CDM – Executive Board page 29 E.2 Table providing values obtained when applying formulae above: >> Emission Reductions

Year

Baseline Emission

factor (tCO2/GWh)

Net Power produced (GWh)

Baseline emissions (tonnes of

CO2 )

Project emissions (tonnes of

CO2)

Emission reductions (tonnes of

CO2) 2007-08 750.87 18.635 13,993 0 13,993 2008-09 750.87 18.635 13,993 0 13,993 2009-10 750.87 18.635 13,993 0 13,993 2010-11 750.87 18.635 13,993 0 13,993 2011-12 750.87 18.635 13,993 0 13,993 2012-13 750.87 18.635 13,993 0 13,993 2013-14 750.87 18.635 13,993 0 13,993 2014-15 750.87 18.635 13,993 0 13,993 2015-16 750.87 18.635 13,993 0 13,993 2016-17 750.87 18.635 13,993 0 13,993 TOTAL 186.35 139,930 0 139,930

The proposed project activity will generate 186.35 GWh of electricity during the ten years crediting period

and displace equivalent units of electricity from the northern grid. It would result in the reduction of

139,930 tonnes of CO2 emissions during the ten year crediting period.

CDM-SSC-PDD (version 02) CDM – Executive Board page 30 SECTION F.: Environmental impacts: F.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: >>

The project activity – rice husk based cogeneration results in effective utilization of the biomass is for the

betterment of the environment. There are no significant adverse impacts arising due to the project activity.

As the project investment is less than INR 500 million so carrying out an Environmental Impact

Assessment (EIA) is not mandatory for the project activity16as per Indian legislation. The project activity

complies with all environmental legislations and meets all the consent requirements (under the Water Act

and Air Act) given by the State Pollution Control Board.

There are no significant adverse impacts arising due to the project activity. The various environmental

aspects and impacts associated with the project activity are:

S.No. Aspect - Impact Identified Mitigation Measures/Remarks

1. Air Quality:

The emissions will be generated on the

combustion of rice husk in the boilers during

operations.

Electrostatic Precipitator would be installed and

flue gases shall be discharged into the atmosphere

through a chimney of appropriate height.

2. Water:

There shall be no significant effect on

surface water quality and hydrology.

Extensive water recycling would be carried out in

the plant, no water from the cogeneration plant

would be discharged outside the factory.

3. Noise:

Additional noise will be produced once the

project activity is in operation stage.

Though the impact on the noise level is minimum

due to use of silencers and will be in the

permissible limits, plantation will be done in and

around the mill and mufflers / ear-plugs would be

distributed to the workers.

4. Land:

No additional land acquisition is required No rehabilitation program is required.

16 http://envfor.nic.in/legis/eia/so-60(e).html

CDM-SSC-PDD (version 02) CDM – Executive Board page 31

since the project activity is carried out

within the premises. Ash would be generated

due to the burning of rice husk.

The ash would be given to the local villagers for

putting in the field for top soil improvement and

land filling.

5. Socio-Economic:

Implementation of the project activity would

not have any adverse impact on the socio

economic aspects of the life of people

residing in the village in core zone.

--------

6. Flora and Fauna:

There will a negligible effect on the flora

and fauna of the region due to increase in

industrial and domestic activity.

--------

CDM-SSC-PDD (version 02) CDM – Executive Board page 32 SECTION G. Stakeholders’ comments: G.1. Brief description of how comments by local stakeholders have been invited and compiled: >>

SBPML gave an invitation to their employees, the adjoining village heads (Pradhans), rice mill owners,

and rice husk suppliers - who are directly and indirectly related to the project activity. They were invited

for a meeting held on 7th November 2005 at the manufacturing facility premises. The agenda of the meeting

was to inform them about the proposed project activity of SBPML and get their views on it. The queries

raised by the local stakeholders were addressed during the meeting by the Company representative.

G.2. Summary of the comments received: >>

The various queries raised during the stakeholder consultation meeting were as follows:

Comment Reply

Why is SBPML spending so much capital for the

project activity since they already have diesel

generator sets? This capital could have been used

for further capacity increase of the paper

manufacturing facility which would have led to

further employment generation.

SBPML is committed towards environmental

conservation. Diesel generators lead to air and noise

pollution, which adversely impacts the health of the

local people. For the project activity SBPML is

investing substantial capital for the installation of

electro-static precipitator (ESP) to address the air

pollution arising due to rice husk combustion. The

diesel generators would be used only as standby

units when the boiler is shut for maintenance.

What would be the benefit of the project activity to

the local people?

The project activity would lead to employment

generation. Over the years the expenditure incurred

for rice husk purchase has gone up substantially.

This money is going to the local people. The project

activity would be contributing positively towards

direct and indirect employment generation.

What arrangements have been made for

transportation of rice husk so that no traffic

The feeding point of the project activity boiler

would be separate and a new road for that would be

CDM-SSC-PDD (version 02) CDM – Executive Board page 33 clogging occurs due to the increased influx of

vehicles?

laid, thus no traffic clogging would occur.

What safety measures are being adopted for the new

boiler being installed?

The boiler would be operated after the Boiler

Directorate has certified it. This certification is done

annually. Moreover, safety valves are installed on

the boiler.

Will there be any delay in the release of payments

for the rice husk supplied?

No delay in payments for rice husk would occur.

Will the project activity lead to any water or noise

pollution?

The water used in the project activity remains in the

cyclic system and is not released, thus there is no

water pollution arising due to the project activity.

Due to silencer the noise pollution would be

controlled.

G.3. Report on how due account was taken of any comments received: >>

No adverse comments have been received for the project activity. In view of various direct and indirect

benefits (social, economical, and environmental), no concerns were raised during the consultation with

stakeholders.

CDM-SSC-PDD (version 02) CDM – Executive Board page 34 Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Shree Bhawani Paper Mills Limited

Street/P.O.Box: 33, Dayanand Marg

Building: --

City: Allahabad

State/Region: Uttar Pradesh

Postcode/ZIP: 211 002

Country: India

Telephone: 91-532-2607958, 2607959, 2607960

FAX: 91-532-2607957

E-Mail: sbpmills1@sancharnet.in

URL:

Represented by:

Title:

Salutation: Mr.

Last Name: Srivastav

Middle Name: -

First Name: Kamal

Department: Finance

Mobile: -

Direct FAX: --

Direct tel: +91-535-2702155

Personal E-Mail: sbpml@sify.com

CDM-SSC-PDD (version 02) CDM – Executive Board page 35 Annex 2 INFORMATION REGARDING PUBLIC FUNDING

No public funding as part of project financing from Parties included in Annex 1 to the convention is

involved in the project activity.

CDM-SSC-PDD (version 02) CDM – Executive Board page 36 Annex 3 BASELINE INFORMATION Selection of Grid boundary In the approved consolidated methodology ACM0002, the following guideline is given for the selection of grid. “Where DNA guidance is not available, in large countries with layered dispatch systems (e.g. state/provincial/regional /national) the regional grid definition should be used. A state/provincial grid definition may indeed in many cases be too narrow given significant electricity trade among states/provinces that might be affected, directly or indirectly, by a CDM project activity”. As explained earlier in B.1.1, the electrical transmission system in India, is divided into five regions namely Northern Region, North Eastern Region, Eastern Region, Southern Region and Western Region. Northern region grid comprises of Delhi, Punjab, Haryana, Chandigarh, Rajasthan, Jammu & Kashmir, Uttranchal, Uttar Pradesh and Himachal Pradesh. The location of project activity is in Uttar Pradesh state which is coming under northern region. Therefore northern grid region is selected as grid boundary to estimate the baseline emission factor. Key elements to determine baseline for the project activity The following key parameters are used to estimate the baseline emission factor of the project activity: S No. Key Parameters Data Sources Reference

1 Generation of power of all the plants for the year 2001-02, 2002-03, 2003-04, 2004-05 and 2005-06

Annual reports of Northern Region Load Dispatch Center (NRLDC) 2001-02 and 2002-03 Section 7.1, Annual reports of Northern region Electricity Board (NREB) 2003-04 – Annex-10.1.3 2004-05 – Annexure 2.7 2005-06

http://www.nrldc.org/docs/7-1.pdf http://www.nrldc.org/docs/2001-02-section5onwards.pdf http://nreb.nic.in/Reports/Index.htm

2 Coal consumption of each coal fired power plant for the year 2003-04, 2004-05 and 2005-06

Annual Performance review of Thermal power plant (CEA)

www.cea.nic.in

3 Calorific value of coal CEA reports CEA General review 2004-05, CEA report - CO2 database for power sector, October 2006

4 Calorific value of gas Revised 2006 IPCC Guidelines 5 Oxidation factors Revised 2006 IPCC Guidelines 6 Efficiency of gas based power

plants supplying power to grid MNES study titled "Baselines for Renewable Energy Projects under Clean Development Mechanism". Chapter 2,

http://mnes.nic.in/baselinepdfs/chapter2.pdf

7 Emission factor of natural gas, Revised 2006 IPCC Guidelines Refer Note 8 Emission factor of non-coking

coal CEA report - CO2 database for power sector, October 2006

http://cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm

CDM-SSC-PDD (version 02) CDM – Executive Board page 37

9 Emission factor of Eastern and Western grids

CEA report - CO2 database for power sector, October 2006

http://cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm

Note: The value of emission factors given in “2006 IPCC Guidelines for national green house gas inventories: Reference Manual and Natcom report is in terms of carbon unit. It is converted in terms of CO2 as explained below:

Fuel Emission factor Emission factor

tC/TJ tCO2/TJ Natural gas 15.3 56.1 ( 15.3 x 44/12) Non-coking coal 26.13 95.8 ( 26.13 x 44/12) Power generation Mix of Northern Region for five years Energy Source 2001-02 2002-03 2003-04 2004-05 2005-06 Total Power Generation (GWh)

150935 154544 168110 172682 180854

Total Thermal Power Generation

113817 115986 122955 126342 132522

Total Low Cost Power Generation

37117 38559 45154 46339 48332

Thermal % of Total grid generation

75.41 75.05 73.14 73.16 73.28

Low Cost % of Total grid generation

24.59 24.95 26.86 26.84 26.72

% of Low Cost generation out of Total grid generation - Average of the five most recent years

25.99

Generation details The power generation of power plants falls under Northern grid region for the past three years is given below:

Name Type Fuel Generation (2003-04)

GWh

Generation (2004-05)

GWh

Generation (2005-06)

GWh Anta GPS Thermal Gas 2775.92 2595.77 2806.84 Auriya GPS Thermal Gas 4247.41 4119.47 4281.67 Badarpur TPS Thermal Coal 5428.96 5462.78 5380.54 Bairasiul Hydro Hydel 687.79 689.67 790.97

CDM-SSC-PDD (version 02) CDM – Executive Board page 38 Bhakra Complex Hydro Hydel 6956.9 4546.01 6838.78 Chamera HPS Hydro Hydel 2648.32 3452.25 3833.66 Dadri GPS Thermal Gas 5058.66 5527.71 5399.34 Dadri NCTPS Thermal Coal 6181.12 6842.52 6768.09 Dehar Hydro Hydel 3299.29 3150.52 3122.68 Dhauliganga Hydro Hydel - - 312.46 Delhi Thermal Coal 1164.11 5203.8 1559.10 Delhi Thermal Gas 5159.77 4091.37 4046.11 Faridabad GPS Thermal Gas 2792.58 3172.01 2954.64 H.P. Hydro Hydel 3666.39 3666.39 2870.48 Haryana Thermal Coal 6849.26 7192.41 8352.58 Haryana Hydro Hydel 251.73 251.73 258.30 J&K Hydro Hydel 851.03 851.03 1133.41 J&K Thermal Gas 15.41 23.51 28.31 NAPS Nuclear Nuclear 2959.44 2760.01 2138.45 Pong Hydro Hydel 1178.93 882.57 1730.70 Punjab Thermal Coal 14118.96 14390.42 14848.73 Punjab Hydro Hydel 4420.43 4420.43 4999.36 Rajasthan Thermal Coal 15044.48 17330.79 19903.79 Rajasthan Thermal Gas 201.37 360.7 432.58 Rajasthan Hydro Hydel 494.07 494.07 921.33 RAPS-A Nuclear Nuclear 1293.37 1355.2 1267.50 RAPS-B Nuclear Nuclear 2904.68 2954.43 2815.73 Rihand STPS Thermal Coal 7949.26 7988.06 10554.73 Salal Hydro Hydel 3477.42 3443.29 3480.87 Singrauli STPS Thermal Coal 15643.4 15803.34 15502.80 SJVNL Hydro Hydel 1537.92 1617.45 3867.12 Tanakpur HPS Hydro Hydel 510.99 495.17 483.26 Tanda TPS Thermal Coal 2872.81 3254.67 3329.89 U.P. Thermal Coal 20638.05 19788.21 19326.44 U.P. Hydro Hydel 2063.04 2063.04 1244.92 Unchahar-I TPS Thermal Coal 3252.14 3342.83 3544.89 Unchahar-II TPS Thermal Coal 3187.93 3438.28 3501.21 Uri HPS Hydro Hydel 2873.54 2206.71 2724.81 Uttaranchal Hydro Hydel 3452.96 3452.96 3496.87 TOTAL 168109.8 172681.6 180853.9

CDM-SSC-PDD (version 02) CDM – Executive Board page 39 Calculation of Operating Margin Emission Factor The following table gives a step by step approach for calculating the Simple Operating Margin emission factor for Northern Regional electricity grid for the most recent 3 years at the time of PDD submission i.e.2003-2004, 2004-2005 & 2005-2006.

2003-04 2004-05 2005-06

Generation by Coal out of Total Generation (GWh) 102704.29 106451.00 112572.8 Generation by Gas out of Total Generation (GWh) 20251.12 19890.00 19949.49 Imports from others Imports from WREB (GWh) 282.02 1602.84 2153.23 Imports from EREB (GWh) 2334.76 3600.58 4112.67

Fuel 1 : Coal 2003-04 2004-05 2005-06

Avg. Calorific Value of Coal used (kcal/kg) 3820 3820 3624

Coal consumption (tons/yr) 70,397,000 73,279,000 73,279,000

Emission Factor for Coal (tonne CO2/TJ) 95.8 95.8 95.8

Oxidation Factor of Coal-IPCC standard value 1.0 1.0 1.0

COEF of Coal (tonneCO2/ton of coal) 1.532 1.532 1.454

Fuel 2 : Gas

Avg. Efficiency of power generation with gas as a fuel, % 45 45 45

Avg. Calorific Value of Gas used (kcal/kg) 11,464 11,464 11,464

Estimated Gas consumption (tons/yr) 3375955 3315755 3325672.3 Emission Factor for Gas- IPCC standard value(tonne CO2/TJ) 56.1 56.1 56.1 Oxidation Factor of Gas-IPCC standard value 1.0 1.0 1.0

COEF of Gas(tonneCO2/ton of gas) 2.693 2.693 2.693

EF (WREB), tCO2/GWh 880 890 890 EF (EREB), tCO2/GWh 1050 1040 1040

EF (OM Simple), tCO2/GWh 952.98 960.85 916.99

Average EF (OM Simple), tCO2/GWh 943.60

List of power plants considered for calculating build margin

During 2005-06, the total power generation in northern grid region was 180,853.94 GWh. Twenty % of total generation is about 36,170.79 GWh. The recently commissioned power plant whose summation of

CDM-SSC-PDD (version 02) CDM – Executive Board page 40 power generation is about 37,608.63 GWh is considered for the calculation of Build margin. The list is tabulated below: S. No.

Plant Date of commissioning

MW Generation of the unit in 2005-2006 (GWh)

Fuel Type

1 Dhauliganga unit-I 2005-2006 70 78.61 Hydro 2 Dhauliganga unit-II 2005-2006 70 78.61 Hydro 3 Dhauliganga unit-III 2005-2006 70 78.61 Hydro 4 Dhauliganga unit-IV 2005-2006 70 78.61 Hydro 5 Rihand Stage - II unit I 2004-2005 500 2593.70 Coal 6 Panipat # 7 2004-2005 250 921.46 Coal 7 Panipat # 8 2004-2005 250 1613.95 Coal 8 Chamera HEP-II (Unit 1) 2003-2004 100 567.67 Hydro 9 Chamera HEP-II (Unit 2) 2003-2004 100 567.67 Hydro 10 Chamera HEP-II (Unit 3) 2002-2003 100 567.67 Hydro 11 SJVPNL 2003-2004 1500 4104.25 Hydro 12 Baspa-II (Unit 3) 2003-2004 100 389.87 Hydro 13 Suratgarh-III (Unit-5) 2003-2004 250 2033.40 Coal 14 Kota TPS-IV (Unit-6) 2003-2004 195 1695.70 Coal 15 Baspa-II (Unit 1 & 2) 2002-2003 200 779.74 Hydro 16 Pragati CCGT (Unit II) 2002-2003 104.6 728.29 Gas 17 Pragati CCGT (Unit III) 2002-2003 121.2 843.86 Gas 18 Ramgarh CCGT Stage -II (GT-2) 2002-2003 37.5 146.80 Gas 19 Ramgarh CCGT Stage -II (GT-2) 2002-2003 37.8 147.97 Gas 20 Upper Sindh Extn (HPS)(1) 2001-2002 35 68.52 Hydro 21 Suratgarh stage-II (3 & 4) 2001-2002 500 3844.81 Coal 22 Upper Sindh Stage II (2) 2001-2002 35 68.52 Hydro 23 Malana-1 & 2 2001-2002 86 337.79 Hydro 24 Panipat TPS Stage 4 (Unit-6) 2000-2001 210 1688.29 Coal 25 Chenani Stage III (1,2,3) 2000-2001 7.5 3.88 Hydro 26 Ghanvi HPS (2) 2000-2001 22.5 69.71 Hydro 27 RAPP (Unit-4) 2000-2001 220 1432.17 Nuclear 28 Ranjit Sagar (Unit-1,2,3,4) 2000-2001 600 2012.84 Hydro 29 Gumma HPS 2000-2001 3 6.59 Hydro 30 Faridabad CCGT(Unit 1) (NTPC) 2000-2001 144 986.70 Gas 31 Suratgarh TPS 2 1999-2000 250 2112.17 Coal 32 RAPS-B (2) 1999-2000 220 1432.17 Nuclear 33 Uppersindh-2 HPS #1 1999-2000 35 68.52 Hydro 34 Faridabad GPS 1 & 2 (NTPC) 1999-2000 286 1959.71 Gas 35 Unchahar-II TPS #2 1999-2000 210 1732.60 Coal 36 Unchahar-II TPS #1 1998-1999 210 1767.20 Coal

CDM-SSC-PDD (version 02) CDM – Executive Board page 41 Built Margin Emission Factor is calculated as per the following table: Considering 20% of Gross Generation Sector Thermal Coal Based 20003.28 Thermal Gas Based 4813.33 Hydro 9927.69 Nuclear 2864.33 Total 37608.63 Built Margin Fuel 1 : Coal Avg. calorific value of coal used in Northern Grid, kcal/kg 3624 Coal consumption, tons/yr 12952313 Emission factor for Coal,tonne CO2/TJ 95.8 Oxidation factor of coal ( IPCC standard value) 1.0 COEF of coal (tonneCO2/ton of coal) 1.454 Fuel 2 : Gas Avg. efficiency of power generation with gas as a fuel, % 45 Avg. calorific value of gas used, kcal/kg 11464 Estimated gas consumption, tons/yr 802405 Emission factor for Gas (as per standard IPCC value) 56.1 Oxidation factor of gas ( IPCC standard value) 1.0 COEF of gas(tonneCO2/ton of gas) 2.693 EF (BM), tCO2/GWh 558.13 Therefore the net baseline emission factor as per combined margin

(OM + BM)/2 = 750.87 tCO2/GWh

Calculation of Net power

Plant Capacity kW 3000 Plant Load Factor % 87 Auxiliary consumption % 15 Net power supplied to paper mill kW 2218.5 Number of days of operation in a year 350 Number of hours of operation in a day 24 Number of hours of operation per year 8400 Gross energy generated GWh/year 21.92 Net energy generated GWh/year 18.635