Pdd Jilin Baicheng Chaganhot Wind - China

8/14/2019 Pdd Jilin Baicheng Chaganhot Wind - China

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

CDM Executive Board

page 1

CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)Version 03 - in effect as of: 28 July 2006

CONTENTS

A. General description of project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders comments

Annexes

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan


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SECTION A. General description of project activity

A.1 Title of the project activity:

>>Jilin Baicheng ChaganHot Wind Power Project

Version number of the document: 3

Date: March 8th, 2007

A.2. Description of the project activity:

>>

The objective of Jilin Baicheng ChaganHot Wind Power Project (hereafter refers to the proposed project)

is to utilize wind resources for electricity generation through the installation and operation of 30MWwind farm at Baicheng, Jilin Province, P. R. China. The proposed project is a grid-connected renewable

energy project, from which the electricity generated will be sold to the Jilin Provincial Power Grid, an

integral part of the North East China Power Grid. The proposed project activity will achieve obvious

greenhouse gas (GHG) emission reductions by avoiding CO2 emissions, as grid-connected fossil fuel-

fired power plants are dominated in the North East China Power Grid.

The proposed project is located in ChaganHot Tourism and Economy Development Area, Baicheng City,

Jilin Province, Peoples Republic of China. It will construct a wind farm with total capacity of 30MW,

and a 66kV substation. The project is designed to produce 50.635GWh of electricity per year from wind

energy with the proposed total installation capacity, replacing fossil fuel consumption, and thus reducing

GHG emissions. Economic growth, social benefits and environmental improvement will be achieved in

the region by conducting of the project. Furthermore, the proposed project plans to utilize domestic madestate-of-the-art wind turbines to promote Chinese wind turbine manufacturing industry by increasing its

market share and the employment opportunities.

A.3. Project participants:

>>

Please list project participants and Party(ies) involved and provide contact information in Annex 1.Information shall be in indicated using the following tabular format.

Name of Party involved (*)

((host) indicates a host

Party)

Private and/or public

entity(ies)

project participants (*)

(as applicable)

Kindly indicate if

the Party involved

wishes to be

considered as

project participant

(Yes/No)

Peoples Republic of China

(host)

CWIC Baicheng Wind Power

Development Co., Ltd.No

Spain Endesa Generacin S. A. No(*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public

at the stage of validation, a Party involved may or may not have provided its approval. At the time ofrequesting registration, the approval by the Party(ies) involved is required.


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Host Country: Peoples Republic of China, which has ratified the Kyoto Protocol to the United Nations

Framework Convention on Climate Change in August 2002

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

>>

A.4.1.1. Host Party(ies):

>>

Peoples Republic of China

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

Jilin Province

A.4.1.3. City/Town/Community etc:

>>

ChaganHot Tourism and Economy Development Region, Baicheng City

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

unique identification of this project activity (maximum one page):

>>

The proposed project is located in the ChaganHot Tourism and Economy Development Area of BaichengCity, Jilin Province, Peoples Republic of China. The project is 40 km away from the Baicheng City, and

in the north of provincial highway No.204. The project has geographical coordinates with east longitude

of 12022 2.1 and north latitude of 4553 50.8.

Figure A1. The proposed project in the map of Jilin Province, P. R. China


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ChaganHot

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

>>

Category: Renewable electricity in grid connected applications

Sectoral Scope: 1 Energy industries

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

>>

The proposed project involves the installation of 40 wind turbines with each capacity of 750 kW, and

totals up an installation capacity of 30MW. The 40 wind turbines of 750kW will be supplied by the

biggest Chinese wind turbine manufacturer Goldwind Science & Technology Ltd. The S48/750 wind

turbine is advanced domestic made wind turbine in China. The machine has a nominal electrical power of

750kW, the designed life span amounts 20 years.

Wind resource in the region is good, with an average wind speed about 5.1m/s at a height of 10m and

6.6m/s at a height of 48m. The situation of the disastrous wind speed that is over 20m/s is rare according

to the data collected during the on-site wind resource assessment.

The capacity factor is estimated to be 20.29% based on extensive monitoring of the available local wind

resource. The proposed project is therefore expected to generate approximately50.635GWhof electricity

per year that will be sold to the Jilin Provincial Power Grid, which is an integral part of the North East

China Power Grid,

A 66kV substation and a 2km transmission line will be set up at the site, which connect the proposed

project to the 220kV substation in Baicheng. By so-doing, the power produced in the wind farm can be

transmitted to the North East China Power Grid.


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A.4.4 Estimated amount of emission reductions over the chosen crediting period:

>>A crediting period of 7 (seven) years (renewable twice) is selected for the project activity. An estimation

of emissions reductions expected over the crediting period is provided in the table below1.

Years Annual estimation of emission reductions

in tonnes of CO2e

2007 18,590

2008 55,771

2009 55,771

2010 55,771

2011 55,771

2012 55,771

2013 55,771

2014 37,181

Total estimated reductions

(tonnes of CO2e) 390,397

Total number of crediting years 7

Annual average over the crediting period of

estimated reductions (tonnes of CO2e)55,771

A.4.5. Public funding of the project activity:

>>

There is no public funding for this project.

1 The feasibility study of the proposed project was developed in June 2005 and got approved in Oct 2005. The

proposed project reached ERPA with Endesa in Sept 2006 and started construction in the same month. The

proposed project is expected to be put into delivery in May 2007 and to be registered at EB around Sept 1st 2007.

The first seven year crediting period will start from Sept 1, 2007 to August 30, 2014.


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SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the

project activity:

>>

The approved methodology applied in the proposed project activity is ACM0002 Consolidated

methodology for grid-connected electricity generation from renewable sources, Version 6. Wind source

that is utilized in the proposed project is included in the applicable conditions of ACM0002. For more

information regarding the methodology please refer to http://cdm.unfccc.int/metholdogies/approved.

Version 2 of Tool for the Demonstration and Assessment of Additionality is also applied in the proposed

project.

B.2 Justification of the choice of the methodology and why it is applicable to the project

activity:

>>

The approved consolidated methodology: ACM0002 is applied here to determine the of the proposed

project. The project activity is a newly installed electricity capacity from wind energy in the North East

China Power Grid. The grid can be clearly identified and information on its characteristics is available,

which is in line with the ACM0002 requirements. The proposed project meets all applicability conditions

of methodology ACM0002 which are listed as follows:

1) The proposed project will install a new electricity capacity from wind energy;

2) The proposed project does not involve switching from fossil fuels to renewable energy at the site;3) The geographic and system boundaries of North East China Power Grid to which the proposed

project will be connected can be clearly identified and information on the characteristics of the gird is

available.

B.3. Description of the sources and gases included in the project boundary

>>

According to the methodology ACM0002, Version 6, a grid-connected wind power project like the

proposed project is required to consider only the CO2 emissions from fossil fuels fired power plants in

baseline scenario.

Source Gas Included? Justification / Explanation

CO2 Yes Major emission sources

CH4 No Excluded for simplification. This is

conservative.

Baseline Fossil fuels

fired power

plants

N2O No Excluded for simplification. This is

conservative.

CO2 No Excluded for simplification.

CH4 No Excluded for simplification.

Project

Activity

On-site fuel

combustion

to the project

activityN2O No Excluded for simplification.
http://cdm.unfccc.int/metholdogies/approvedhttp://cdm.unfccc.int/metholdogies/approved


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According to the methodology (ACM0002), a project electricity system is defined by the spatial extent of

the power plants that can be dispatched without significant transmission constraints. The proposed projectis within the boundary of the North East China Power Grid, which geographical range includes

Heilongjiang Province, Jilin Province and Liaoning Province2.

B.4. Description of how the baseline scenario is identified and description of the identified

baseline scenario:

>>

In absence of the proposed project, reasonable and credible alternatives that are in accordance with

current laws and regulations include:

1) The proposed project not taken as CDM project;2) Construction of a fossil fuel power plant with equivalent amount of installed capacity or annual

electricity output;3) Construction of a power plant using other source of renewable energy with equivalent amount of

installed capacity or equivalent amount of annual electricity output; and

4) Supply of equivalent annual power output by the Grid where the proposed project is connected.

Specific analysis on the four alternative scenarios in absence of the proposed project is as follows:

1) The development of a new wind energy project of the same capacity (30MW) under a fullycommercialized condition without CDM is very difficult in China. Without additional financial

support directly, significant barriers are expected for a new wind farm development that are presented

in details in Step 3 Barrier Analysis. Therefore, the Scenario 1) cannot be considered as an alternative.

2) Same installation capacity of a fossil fuel power plant as the proposed project (30MW) will nothappen, because coal-fired plants with a capacity of 135MW or less are prohibited from building in

large grid such as provincial girds3

according to current regulations in China. Its known that

operational hour of a fossil fuel power plant is at least 2 times more than that of a wind power project

with the same capacity. Therefore, the alternative fossil fuel power plant with the equivalent power

output as the proposed project refers to a fossil fuel power plant of 15MW or less, which is not

possibly built either under Chinas existing regulatory framework. Consequently, this is not a feasible

alternative scenario to replace the proposed project.

3) Besides wind energy, solar PV, geothermal, biomass and hydro are the possible grid-connectedrenewable energy technologies that could be applied in the North East China Power Grid. Due to the

technology development status and the high cost for power generation, solar PV, geothermal and

biomass of the similar installed capacity as the proposed project are alternatives far from being

attractive investment in the grid in China. Only hydropower projects have the investment return ratethat can compete over that of wind power projects in China. For the proposed project, the site is a

piece of flat grassland with no exploitable resources for hydropower development. Despite the fact

that Jilin province has the most abundant hydropower resources in Northeast China, its left no more

exploitable resources for the development of any new hydropower plant with medium-large scale.

Moreover, although there is some potential for the development of small-scale hydropower projects,

2 The electricity import and output between Northeast China Power Grid and other girds (North China Power Grid)

is very insignificant and not necessary to be considered when calculating EF of grid.

3 Notice on Strictly Prohibiting the Installation of Fuel-fired Generation with the Capacity of 135MW or below

issued by the General Office of the State Council, decree no. 2002-6


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obvious hurdles still exist. As a matter of fact, existing hydropower plants in Jilin province at present

are mainly used for the purpose of peak load regulation and the grid security of the North East ChinaPower Grid. In conclusion, with limited usable hydropower resources in Northeast China, and with

higher amount of investment cost (not less than that of wind power) and less annual operating hours,

the economic return of a hydropower plant with similar capacity is less attractive than that of the

proposed project. Only 25.6MW new capacity from hydropower in Jilin Province has been installed

from 2001 to 20044. It is obvious that the development of hydropower plant similar with the proposed

project in the province will meet significant investment barrier and not feasible under fully

commercial condition at present. Hence the Scenario 3) is not feasible as an alternative scenario.

4) The installed capacity of North East China Power Grid keeps increasing for many years. In 2003, thetotal installed capacity increased by 8.9% with new power plants installed as well as capacity

additions from existing power plants. Hence, the alternative 4) is a feasible alternative. As a result,

North East China Power Grid is selected as the baseline for the proposed project.

In conclusion, the only practical and feasible baseline scenario is the alternative 4).

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

those that would have occurred in the absence of the registered CDM project activity (assessment

and demonstration of additionality): >>

The additionality of the proposed project is demonstrated and assessed by the approved Tool for the

Demonstration and Assessment of Additionality. Following steps include:

Step 0. Preliminary screening based on the starting date of the project activity

The crediting period of the proposed project will not start before the registration of the project activity.

Step 1. Identification of alternatives to the project activity consistent with current laws and

regulations

Define realistic and credible alternatives to the project activity(s) that can be (part of) the baseline

scenario through the following sub-steps:

Sub-step 1a. Define alternatives to the project activity:

In absence of the proposed project, reasonable and credible alternatives that are in accordance with

current laws and regulations include:

1) The proposed project not taken as CDM project;2) Construction of a fossil fuel power plant with equivalent amount of installed capacity or annual

electricity output;3) Construction of a power plant using other source of renewable energy with equivalent amount of

installed capacity or equivalent amount of annual electricity output; and

4) Supply of equivalent annual power output by the Grid where the proposed project is connected.

In conclusion, as discussed in B4, the only practical and feasible baseline scenario is the alternative 4).

Sub-step 1b. Enforcement of applicable laws and regulations:

4 Source: China Power Year Book 2002 and 2005


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TheB4 contains the confrontation of the alternatives with Chinas applicable laws and regulations.

Alternative 1), 2) and 3) are excluded.

A further argument is that the project activity is consistent with the national policies for environmental

protection, energy conservation and sustainable development. However, there possesses no binding legal

and regulatory requirements for this type of projects yet. The adoption of Chinas Renewable Energy Law

by the National Peoples Congress on 28th

February 2005 should be qualified as a Type E- law, and hence,

not be considered as the baseline scenario.

It could be concluded that the alternative 4) is in line with the existing Chinese laws and regulations.

Step 2. Investment analysis

The purpose of this step is to determine whether the proposed project activity is economically or

financially less attractive than other alternatives without an additional funding that may be derived fromthe CDM project activities. The investment analysis was conducted in the following steps:

Sub-step 2a. Determine appropriate analysis method

The three analysis methods suggested by Tools for the demonstration and assessment of additionality are

simple cost analysis (option I), investment comparison analysis (option II) and benchmark analysis

(option III). Since the proposed project will earn revenues from not only the CDM but also the electricity

output, the simple cost analysis method is not appropriate. Investment comparative analysis method is

only applicable to the case that alternative baseline scenario is similar to the proposed projects, so that

comparative analysis can be conducted. The alternative baseline scenario of the proposed project is the

North East China Power Grid rather than a new investment project. Therefore option II is not an

appropriate method either. The proposed project will use benchmark analysis method based on total

investment IRR and NPV.

Sub-step 2b Apply benchmark analysis (Option III)

With reference toInterim Rules on Economic Assessment of Electric Engineering Retrofit Projects, the

financial benchmark IRR of Chinese power industry is 8% the total investment, which has been used

widely for Feasibility Studies of the power project investments, including wind power projects in China.

Sub-step 2c. Calculation and comparison of financial indicators

Based on the above-mentioned benchmark, the calculation and comparative analysis of financial

indicators for the proposed project are carried out in sub-step 2c.

(1) Basic parameters for calculation of financial indicatorsBased on the Feasibility Study Report of the proposed project, basic parameters for calculation of

financial indicators are listed in Annex 5.

(2) Comparison of IRR for the proposed project and the financial benchmark

In accordance with the benchmark analysis (Option III), the proposed project will not be considered as

financially attractive if its financial indicators (such as IRR) are lower than the benchmark rate.

Table 1 shows the fluctuating situation of IRR of the proposed project, with and without CDM revenues.

Without the CDM revenue, the IRR of total investment is lower than the benchmark rate 8%. Thus the

proposed project does not look financially attractive to the investors. However, with the CDM revenue,


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IRR of total investment is significantly improved and exceeds the benchmark rate. Therefore, the

proposed project with the CDM revenue can be considered as financially viable to the investors.

Table 1. Financial indicators of the Jilin Baicheng ChaganHot wind power project

IRR (Total investment, benchmark=8%)

Without CDM revenue 6.64%

With CDM revenue 8.56%

Sub-step 2d. Sensitivity analysis (only applicable to options II and III):

The purpose of the sensitivity analysis is to examine whether the conclusion regarding the financial

viability of the proposed project is sound and tenable with those reasonable variations in the assumptions.

The investment analysis provides a valid argument in favour of additionality only if it consistently

supports (for a realistic range of assumptions) the conclusion that the project activity is unlikely to be themost financially attractive or is unlikely to be financially attractive.

Four financial parameters including: total investment, tariff and annual O&M cost were identified as the

main variable factors for sensitive analysis of financial attractiveness. Their impacts on IRR of total

investment were analyzed in this step.

For detailed results of sensitive analysis of the three indicators, please see Table 2.

Table 2. Sensitivity of total investment IRR to different financial parameters

Range

Parameters

-10% -7.50% -5% -2.50% 0 2.50% 5% 7.50% 10%

Total investment8.090% 7.700% 7.330% 6.980% 6.640% 6.310% 5.990% 5.690% 5.390%

O&M cost 6.760% 6.730% 6.700% 6.670% 6.640% 6.600% 6.570% 6.540% 6.510%

Tariff 5.350% 5.680% 6.000% 6.320% 6.640% 6.950% 7.260% 7.570% 7.870%

Figure 2. Sensitivity of total investment IRR to different financial parameters


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As shown in Table 2 and Figure 2, the IRR of total investment of the proposed project varies to different

extents, when the above three financial indicators fluctuated within the range from -10% to +10%. In

comparison, the impact of the tariff on IRR is most significant. When the tariff increases by 7.5%, the

IRR of total investment exceeds the benchmark. However, it is not possible for the initial tariff estimated

in FS to be raised, which can be proved by the approved tariff of similar projects nearby.: Taobei Fuyu

49.5 MW Wind Power Project is close to the proposed project, and was put into delivery in 2006 with an

approved tariff of 0.56yuan/KWh(after tax). The location and resource conditions of Taobei Fuyu Project

are similar to the proposed project. Besides , the tariff of the proposed project in the Feasibility Study was0.59yuan/KWh(after tax), but now the intent tariff is 0.56 yuan/KWh(after tax), which represents clearly

that it is unlikely for the occurrence of upward trend of the tariff. Therefore, the tariff of the proposed

project is estimated not to be higher than 0.56yuan/KWh. That is, it is impossible for the tariff to rise by

5%.Next is the total investment. Its displayed in the graphics that the IRR of total investment exceeds the

benchmark when the total investment decreases by 8%. As the cost of the proposed project is increased

due to the changes of geological conditions and price rising of raw materials during construction, the total

investment is not likely to be reduced. Among the four indicators, the impact of annual O&M cost on IRR

is least sensitive.

After above sensitive analysis, when financial indicators change within reasonable range, the proposed

project is not financially feasible without CDM support.

Step 3. Barrier analysis

If this step is used, determine whether the proposed project activity faces barriers that:

(a) Prevent the implementation of this type of proposed project activity; and

(b) Do not prevent the implementation of at least one of the alternatives.

Use the following sub-steps:

Sub-step 3a. Identify barriers that would prevent the implementation of type of the proposed project

activity:


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Establish that there are barriers that would prevent the implementation of the type of proposed project

activity from being carried out if the project activity was not registered as a CDM activity. Such barriersmay include, among others:

Investment barriers

The wind energy development in China is still hurdled by the high investment cost, which makes wind

energy a financially unattractive technology for power generation. The per kW investment cost of wind

energy is much higher than that of the fossil fuel power plants.

The wind resource is the most important parameter for determination of wind farm investment. Before the

development of the wind farm, an assessment of the local wind resource was conducted for over one year.

The result shows the wind resource in the proposed site is adequate but not very good.

When developing the Feasibility Study of the proposed project, the project developer started realizingmore clearly that the impact of the marginal wind resource on the project will result a marginal

investment return. The IRR of total investment is lower than the benchmark of 8%, which makes the

project unattractive in investment.

The proposed project enjoys neither preferential pricing policies nor preferential financing. The proposed

project has to be financed under a fully commercialised condition. However, it is difficult to attract

investment facing low investment return and technology risk resulted from marginal wind resource.

Tariff barriers

Regarding to the tariff issue for power production projects, a very well-known indicator, the average

inter-grid sales tariff, was 0.231 yuan/kWh in 20025, which is remarkably lower than the very necessarytariff for wind power projects. This kind of situation inevitably raises risks when much higher tariff is

acquired by the wind power project, but neither the local grid nor the governmental bodies are willing to

absorb the additional cost. .

The first wind farm in Jilin province is the Jilin Tongyu 30.06MW wind farm that was put into delivery in

2000. Due to the favorable tariff policy at that time, Jilin Tongyu Project managed to obtain a tariff of

0.900 yuan/kWh (after tax).However, the tariff in Feasibility Study for the proposed Jilin BaichengChaganHot Wind Power Project is 0.59 yuan/kWh (after tax), and the intent tariff is only 0.56yuan/kWh

(after tax). Contrastively, the wind resource of Jilin Baicheng ChaganHot Wind Power Project is much

lower than that of Jilin Tongyu Project. Therefore, the lower tariff obstructed the development of the

proposed project.

Technology barriers

In the technological aspect of a wind farm, the wind turbine takes the core technical know-how. From the

first wind farm developed, as a new technology, the key international players of wind turbine have

dominated the wind turbine market in China. Ten years ago, the Chinese wind turbine manufacturing

industry started to grow. However, the technology level of Chinese wind turbine still has a distance from

the advanced international technology. Moreover, there are still risks in the performance and liability of

domestic made wind turbines, which will impact directly on the electricity output of the wind farm, and

5 Data derived from China Electric Power Yearbook 2003 page 122.


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thus the investment return of the proposed project. The proposed project will employ the domestic made

wind turbines- S48/750, which will leave the common technology risk to the project developer. That isthe technology barrier of the proposed project.

The proposed project is the first wind farm to be developed by the project developer. Lacking of previous

experience in the investment, development and operation for wind farms, the project developer will

inevitably face significant risks, especially the problem of short of experienced staffs on construction,

operation and maintenance. Therefore, trainings on required technology for the staffs will be needed

during implementation of the proposed project.

Evidently, the proposed project development will be baffled by technology barrier.

Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one ofthe alternatives (except the proposed project activity):

The four alternative scenarios of the proposed project were analyzed in the Sub-step 1a Only alternative 4

could be the alternative scenario. In this scenario, the power output from the grid is mainly from the coal

fuel power source. The coal-fired plant in China is a well- commercialized technology and the coal

resource in China is very rich as well. Therefore the investment barrier, technology barrier and tariff

barrier mentioned above of the proposed project will not be applicable to coal-fired plants.

Step 4. Common practice analysis

Sub-step 4a. Analyze other activities similar to the proposed project activity:

Before 2003, wind power projects in China were undertaken under non-commercial conditions with the

supporting policies, such as the cost-plus power pricing, monopolistic power company pilot-projects,domestic loan subsidies, bilateral soft loan financing and multilateral finance. This resulted in a series of

wind farms capacity less than 30MW, however, on which the sector still could not be commercialized.

Table 4 shows the wind farms developed and under development in Jilin province, where the proposed

project happens.

Table 4 Wind Farm Development in Jilin Province6

Project name Delivery year Total

capacity

Wind turbine

employed

Project

developer

CDM activities

Jilin Yongyu 2000 30MW MADE &

Nordex

Jilin Wind

EnergyStockholding

Co. Ltd.

No (high tariff

and earlydeveloped)

Jilin Taonan 2005 49.3MW Gamesa G58 Jilin Noble

Wind Power

Stockholding

Company Ltd

Registered

Jilin Changling 2005 10.1MW Gamesa G58 Jilin Wind Under CDM

6 Source: Statistic of wind farm development of China in 2005 by Professor Shi Pengfei and

http://cdm.ccchina.gov.cn


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Energy

StockholdingCo. Ltd.

developed,

selected DOE isDNV

Jilin Taobei

Huaneng

2005 49.3MW Gamesa G58 Huaneng New

Energy

Industrial Co.

Ltd

Registered

Jilin Taobei

Fuyu

2005 49.5MW Goldwind

S48/750

Baicheng Fuyu

Wind Power

Co, Ltd.

Registered

Tongyu wind farm was developed and was operational in 2000 with the support of high tariff. From 2000

to 2004, not a single wind power project was newly built in the province. In 2005, four new wind farms

started construction by different developers. The approved tariff of the four projects is the same, causingsimilar problem on tariff. Despite of the tariff barrier, the four projects are still under development due to

the main reason that CDM plays a crucial role for the project developer to determine the project

investment and execution. Without CDM, new wind farms in Jilin province including the proposed

project are not likely to happen.

Sub-step 4b. Discuss any similar options that are occurring:

As it is demonstrated in Sub-step 4a, earlier wind energy developments in China were quite small in scale.

Since 2004, some new wind farms with similar scale as the proposed project are under development.

These new wind farms in developing have the same barriers as analyzed in Step 3 Barrier Analysis

section. However, CDM revenue was widely considered by the developer of these new wind farms as a

feasible solution to overcome the barriers. Without CDM, new wind farms in Jilin province including the

proposed project are not likely to happen.

As stated above, it is concluded that the proposed project is not common practice, as it was undertaken

without the preferential tariff or preferential financing.

Step 5. Impact of CDM registration

The project developer is one of the earliest developers who involved in CDM development, and had

successful experience in financing project with the support from CDM. Therefore, CDM was introduced

into the project as a potential measure to improve the return of the project.

A research on the possibility of CDM impact to the project was carried out in the Feasibility Study Report.The conclusion is that the ChaganHot wind farm is a renewable source to electricity project that will

generate emission reductions. With the successful registration as CDM project, the risk of the high

investment cost could be mitigated and the operation and maintenance cost would be more guaranteed as

well. The CDM revenue will have a significantly positive impact on the proposed project.

Before making the decision to invest in the proposed project, the project developer had contacted with

CER buyers and signed CER sales agreement with the buyer. The project developer finally decided to

develop the proposed project, because it is confirmed that there will be additional revenue from CDM so

as to increase investment return and reduce risks of the proposed project.


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The project developers inexperience in wind power project development will cause risks on the

construction, operation and maintenance of the proposed project and hence investment return. Theproposed project will employ domestic made wind turbine that still exist technology barrier comparing

with international state-of-the-art technology. With the successful registration of the proposed project,

the CDM finance could provide additional revenue to support the maintenance of the wind turbines and

the operation of the project, and consequently generate more electricity and GHG emission reductions in

return.

Without the support from CDM, the proposed project will not be developed and generate GHG emission

reductions. Taking into account the additional barriers that the project has to face, including the tariff and

wind resource, the CDM can be regarded as a mechanism to ensure the success of the proposed project.

The proposed project is additional.

In summary, the CDM would have the following positive impacts on the project:

1. The CER revenue potential has been taken into consideration by project investors from an early

stage and was notably proposed in the Feasibility Study as a possible measure to improve the

financing of the proposed project. As the IRR of total investment is lower than the benchmark,

the project developer has signed CER Sales Agreement with the buyer before it decided to

develop the proposed project.

2. The CER revenue would provide extra finance to overcome the marginal tariff and additional cost

to be occurred during the implementation of the project and ensure the financing and investment

return of the project.

3. The CER revenue would provide extra support to reduce the technology risks resulting from theinexperience of project developer in wind power industry.

4. The CER revenue will enable the project developer to carry out additional training activities for

staff and construction workers associated with the employment of the new technology. Moreover

the additional revenue will help ensure that the skills and knowledge gained by the project can be

transferred throughout China.

5. The CER revenue will ensure the ultimate success of the project that is currently still marginal

both in terms of the wind resource and the investment return.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

>>

The GHG emission calculation of the proposed project was based on the instruction of ACM0002. All the

data employed in the calculation is based on the available data from North East China Power Grid. The

baseline emission factor (EFy) is calculated as a combined margin (CM), consisting of the combination of

operating margin (OM) and build margin (BM) factors according to the following three steps:

STEP 1. Calculate the Operating Margin emission factor(s) (EFOM,y)

Calculation of the Operating Margin should be based on one of the four following methods according

to the instruction of ACM0002:


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(a) Simple OM, or

(b) Simple adjusted OM, or(c) Dispatch Data Analysis OM, or

(d) Average OM.

Although Dispatch Data Analysis should be considered the first methodology choice as required in the

ACM0002, unavailability of detailed information in China, such as the dispatch data make method (c) not

feasible for the calculation in China.

In China, specific data from the grid or each power plant is treated as business confidential and thus not

publicly available. Therefore, the Simple adjusted OM (b) cannot be possibly used for the proposed

project either.

Without any nuclear source, the North East China Power Grid only possesses 5.83% of its total electricity

generation that come from renewable energy sources in 2004, 4.72% in 2003, 5.43% in 2002, 7.02% in

2001 and 5.89% in 20007.Hence, the low operating cost/must run sources is much less than 50% of the

total grid generation, which accords with the defined condition of method (a), but not method (d).

Consequently, Simple OM method is selected to calculate the Operating Margin emission factor of the

proposed project.

The Simple OM emission factor (EFOM,simple,y) is calculated as the generation-weighted average emissions

per electricity unit (t CO2e/MWh) of all generating sources serving in the system, excluding low-

operating cost and must-run power plants:

=

j

yj

yji

ji

yji

ysimpleOMGEN

COEFF

EF,

,,

,

,,

,,

Where:

Fi,j,y the amount of fuel i consumed by relevant power sources j in year(s) y. The index j runs over allpower sources including imports, but excludes low operating costs and must-run power plants.

COEFi,j,y the CO2 emission coefficient of fuel i, taking into account the carbon content of fuels usedby relevant power sources j and the percentage oxidation of the fuel in year(s) y;

GENj,y the electricity delivered to the grid by source j in year y.

The CO2 emission coefficient is equal to the net calorific value of fuel i, multiplied by the oxidation factor

of the fuel and the CO2 emission factor per unit of energy of the fuel i.

iiCOii OXIDEFNCVCOEF = ,2

NCViis the net calorific value (TJ per mass or volume unit) of fuel i;OXIDi is the oxidation factor of the fuel. IPCC default values are used.

7 China Electric Power Yearbook


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EFCO2,i, is the CO2 emission factor per unit of energy of the fuel i (tCO2e/TJ).EFCO2,i of fossil fuels is from

IPCC defaults.

STEP 2. Calculate the Build Margin emission factor (EFBM,y)

The Build Margin Emission Factor is calculated as the generation weighted average emission factor

(measured in tCO2e/MWh) of a sample of m power plants:

=

m

ym

mi

ymiymi

yBMGEN

COEFF

EF,

,

,,,,

,

Where Fi,m,y the amount of fuel i consumed by relevant power sources m in year(s) y. The index m runs overall power sources including imports.

COEFi,m,y the CO2 emission coefficient of fuel i, taking into account the carbon content of fuels usedby relevant power sources m and the percentage oxidation of the fuel in year(s) y;

GENm,y the electricity delivered to the grid by source m in year y.ACM0002 provides two options for calculatingEFBM,y :

Both options have the same requirement on sample group m: either the five power plants built most

recently, or the power plants capacity additions in the electricity system that comprising 20% of the

system generation (in MWh) and that have been built most recently.

However, it is very difficult to obtain the data of the five power plants built most recently because these

data are considered as confidential information by the company itself and the Grid in China. Therefore, a

deviation approved by the EB is applied here in the calculation that is to calculate the new capacity

additions and the proportion of each technology of power generation. Then the weighing of capacity

additions of different technologies will be worked out. Finally the emission factor will be calculated by

employing the efficiency factor representing the best technology commercially available.

Deviated Calculation of Build Margin (BM):

Sub-step 1. Calculation of weights of CO2 emissions of solid, liquid and gas fuel in total emissions for

power generation

=

ji

jiyji

jCOALi

jiyji

CoalCOEFF

COEFF

,

,,,

,

,,,

=

ji

jiyji

jOILi

jiyji

OilCOEFF

COEFF

,

,,,

,

,,,


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=

ji

jiyji

jGASi

jiyji

GasCOEFF

COEFF

,

,,,

,

,,,

Where:

Fijy: the consumption of fuel i for province j in year y (tce);

COEFijy: the emission factor (tCO2/tce) of fuel i, taking into account the carbon content of fuel i and

the percentage of oxidation of the fuel in year y;

COAL,OIL and GAS respectively refers to the group of solid, liquid, and gas fuels.

Sub-step 2: Calculation of Emission Factor of Relevant Thermal Power

AdvGasGasAdvOilOilAdvCoalCoalThermal EFEFEFEF ,,, =

Where: EFCoal,Adv, EFOil,Adv and EFGasAdv respectively refers to the emission factor representing best

technology commercially available for fuel of coal, oil or gas fired power plants.

Sub-step 3: Calculation of BM of the Grid

Thermal

Total

ThermalyBM EF

CAP

CAPEF =,

Where:CAPTotal is the total of new capacity additions;

CAPThermal is the new capacity addition of thermal power.

STEP 3. Calculate the baseline emission factorEFy

The Baseline Emission Factor is calculated as a Combined Margin, using a weighted average of the

Operating Margin and Build Margin.

The default value of weighted factor are:

wOM = 0.75 wBM = 0.25

Baseline Emissions are calculated by multiplying the ex-ante Baseline Emission factor by annual power

generation.

yyyE EFEGBL =,2

With:

BEy the baseline emission of North East China Power Grid in year y,

EGy the amount of power generated by the project and supplied to the grid,

EFy the ex-ante emission factor in year y.


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Emissions from project activity

The Jilin Baicheng ChaganHot Wind Power Project is a zero-emission electricity generating activity;therefore no emissions from the project activity were identified.

Leakage

The project does not consider leakage according to the requirements of methodology applied.

Emission Reductions

The annual emission reductions ERy for the project activity are calculated as the baseline emissions minus

the project emissions. Being the project of a zero-emission activity the final GHG emission reductions

are calculated as follows:

ERy(tCO2e/yr) = EBy - EPy = (EGy * EFy) - 0

Where:

EGy(MWh/yr) = Electricity supplied to the grid by the project each year;

EFy(tCO2e/MWh) = GHG emission factor of the North East China Power Grid (ex-ante).

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

Data / Parameter: EFOMData unit: tCO2/ MWh

Description: Operating Margin Emission Factor

Source of data used: Baseline Emission Factors for Power Grids in China, sourced from

http://cdm.ccchina.gov.cn/

Value applied: 1.1983Justification of the

choice of data or

description of

measurement methods

and procedures actually

applied :

Calculated according to the updated Baseline Emission Factors for Power Grids

in China based on ACM0002 and EB guidance

Any comment:

Data / Parameter: EFBMData unit: tCO2/ MWh

Description: Build Margin Emission Factor



Value applied: 0.8108

Justification of the

choice of data or

description of

measurement methods


Calculated according to the updated Baseline Emission Factors for Power Grids

in China based on ACM0002 and EB guidance


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applied :

Any comment:

Data / Parameter: NCViData unit: MJ / tonne or km

3

Description: Net Calorific Value of fossil fuel typeIconsumed by the power plants in the

grid



Value applied: N/A


choice of data or

description of

measurement methodsand procedures actually

applied :

According to the updated Baseline Emission Factors for Power Grids in China.

Any comment:

Data / Parameter: EFCO2,iData unit: tc/TJ

Description: CO2 emission factor of fossil fuel typeIconsumed by the power plants in the

grid



Value applied: N/AJustification of the

choice of data or

description of

measurement methods


applied :


Any comment:

Data / Parameter: Carbon Oxidation Factor

Data unit: %

Description: Carbon Oxidation Factor of fossil fuel type i consumed by the power plants in

the grid



Value applied: N/A


choice of data or

description of

measurement methods


applied :


Any comment:


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B.6.3 Ex-ante calculation of emission reductions:>>

As described in B.6, the emission reductions of the proposed project are calculated as follows:

Baseline emissions

Annual generation (net of auxiliary power i.e. the on-site electricity usage for the operation of the

windfarm) is estimated as 50,635 MWh.

The ex-ante baseline emission factor: 1.101425 tCO2/ MWh

Annual baseline emissions: 55,771 tCO2 (details in Annex 3)

Project emissions

According to the baseline methodology ACM0002, the GHG emission of the proposed project within the

project boundary is zero, i.e.

PEy=0

Leakage

According to the baseline methodology ACM0002, the leakage of the proposed project is not considered,

LPy = 0

Project Emission Reductions

Net emission reductions of the proposed project = Total baseline emissions Total project emissions

The total annual baseline emissions are 55,771 tCO2The total annual project emissions are 0 tCO2.

The annual emission reductions are estimated to be: 55,771 tCO2. The proposed project activity is

expected to achieve 390,397 tCO2e of net emission reductions during the first 7-year crediting period.

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

>>

Year Estimation of

project activity

emissions

(tonnes of CO2e)

Estimation of

baseline emissions

(tonnes of CO2e)

Estimation of

leakage

(tonnes of CO2e)

Estimation of

overall emission

reductions

(tonnes of CO2e)

2007 0 18,590 0 18,590

2008 0 55,771 0 55,771

2009 0 55,771 0 55,771

2010 0 55,771 0 55,771

2011 0 55,771 0 55,771

2012 0 55,771 0 55,771


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2013 0 55,771 0 55,771

2014 0 37,181 0 37,181Total

(tonnes of

CO2e)

0 390,397 0 390,397

B.7 Application of the 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: EGyData unit: MWh

Description: Net electricity supplied to the Grid by the proposed project during year y

Source of data to be

used:

Electricity meter reading at the connection point between the proposed project

and the Grid

Value of data applied

for the purpose of

calculating expected

emission reductions in

section B.5

50,635

Description of

measurement methods

and procedures to beapplied:

The readings of the electricity meter will be hourly measured and monthly

recorded. Data will be archived for 2 years following the end of the crediting

period by means of electronic and paper backup.

QA/QC procedures to

be applied:

The electricity generation from the plant will be monitored and recorded at the

on-site control centre using a computer system. The project operator is

responsible for recording this set of data. Receipts from electricity sales will also

be obtained for double check.

Any comment:

B.7.2 Description of the monitoring plan:

>>

The monitoring plan should ensure that updated requirements and standards for the monitoring

procedures are incorporated. Before the proposed project starts operation, detailed monitoringarrangements will be determined, according to the monitoring plan, and with the support of the proposed

project owner, the CDM developer will complete a CDM manual which serves as a guideline for the

project owner to manage and monitor the proposed project during the project implementation. As

identified in the monitoring plan, the following key tasks will need to be undertaken:

1. Continuous measurement (electronic data from wind farm)

Electricity supplied to the Grid by the project

2. Monthly reporting (electronic and hard copies)


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Monthly summary of continuous measurement data for electricity supplied to the Grid by the

project All documentation regarding electricity sales to the Grid will be collated in hard copy for

inspection

3. Annual reporting.

Electricity supplied to the Grid by the project (EGy)

4. Calibration of electricity meter

The accuracy of the electricity meter is 0.5s that meets the national requirement. The metering

equipment will be properly calibrated and checked annually for accuracy. The national

calibration standard dl/t448-2000 will be applied in the proposed project. Calibration iscarried out by the Grid with the records being provided to the proposed project owner

The responsibilities for carrying out these tasks are illustrated in the table below, and the specific

details in monitoring plan are described in Annex 4.

General Manager

CDM Project Manager

Technical ChiefFinancial ChiefPlant Operational

Manager in Charge of

Monitoring

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

the name of the responsible person(s)/entity(ies)

>>

Date of completion of Baseline Study: 01/11/2006

Name of person/entity determining the baseline:

Ms. Lin, Wei

Easy Carbon Consultancy Co. Ltd.

11-2805, Jianwai SOHO, 39 Dongsanhuan Zhonglu, Chaoyang District, Beijing 100022, P. R.China

Phone/fax: +86 1058697045-604/59000064

Email: [email protected]

Mr. Guan, Yisong


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Easy Carbon Consultancy Co. Ltd.

11-2805, Jianwai SOHO, 39 Dongsanhuan Zhonglu, Chaoyang District, Beijing 100022, P. R.ChinaPhone/fax: +86 1058697045-603/59000064

Email: gyisong@ easy-carbon.com

Above persons are not Project Participants.

Mr. Wang Yiqun

China Water Investment Group Corporation

No. 12, Lane 2, Baiguang Road, Xuanwu District, Beijing 100053, P. R. China

Phone/fax: 86 1063581188-286263548904

[email protected]

Mr. Jia Xuelang



Phone/fax: 86 1063581188-286563548904

[email protected]

Ms. Wang Hongyuan



Phone/fax: 86 1063581188-286663548904

[email protected]

Mr. Zhang, Jun



Phone/fax: 86 1063581188-262063548904

[email protected]


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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:

>>

01/09/2006(starting date of construction)

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

>>

21 years

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

C.2.1. Renewable crediting period

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

>>

01/08/2007

C.2.1.2. Length of the first crediting period:

>>

7 years

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:

>>

Not applicable

C.2.2.2. Length:

>>

Not applicable


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SECTION D. Environmental impacts>>

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

impacts:

>>

The environmental impact assessment for this project was carried out by Jilin Xinghuan Environmental

Technical Service Co., Ltd. in 2005. A summary of the report is illustrated as below:

Impact on air

The air pollution from dust and waste gas existed mainly in the period of construction. Protective

measures to be adopted include stopping work on windy days and reducing the speed of vehicles. As theperiod of construction is short, the impacts on air will be insignificant after conducting these mitigation

measures. During operation, there will be no bad gas emissions generated by the Project.

Impact from noise

The operation of the wind turbines will generate continuous noise. It is said in EIA that 600m away from

the turbine is a safe distance for residents. The nearest resident area however, is 2.3km away from the

project location. Therefore, the noise of the turbines will not affect the local residents.

Electromagnetic impact

The operation of the wind farm will generate electromagnetic energy, however, it will be very little.

According to the survey to the local residents near the Project, no impact to local residents and electronicequipments was detected. Furthermore, the site of the Project is far from the resident area. Therefore,

there is no significant electromagnetic impact to be generated.

Impacts from solid waste

Most of the waste earth produced in the construction shall be refilled back to the foundation of the

turbines. The household waste will be collected and transported to Baicheng municipal landfill plant.

Impacts on plant

The area permanently taken by the project will be 68,847m2, most of which are grassland. There is little

biomass and no rare plant in the location. As the lands will be replanted after completion of the project

construction, the impacts on grassland are insignificant.

Biological impact

Given the environment of the project location, there are very few animals at the site, and no protected

animal has been detected. Therefore, there is no significant impact by the Project to the local biology.

The Environment Impact Assessment was approved by Jilin Provincial Environmental Protection Bureau

in October 2005.


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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 environmentalimpact assessment undertaken in accordance with the procedures as required by the host Party:

>>

The environmental impacts of the Jilin Baicheng ChaganHot Wind Power Project are not considered

significant.


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SECTION E. Stakeholders comments>>

E.1. Brief description how comments by local stakeholders have been invited and compiled:

>>

Comments on the construction of the wind farm is required by local government and the construction

company through means of informal discussions, hearing of witnesses and visits to guarantee the

successful implementation of the Project with the interests of stakeholders being taken into account.

The project developer and local environmental protection department have distributed questionnaires to

the villagers in the surrounding villages (Sumawan village and Dayangbu village) of the project site in

Chayouzhongqi on June, 2006, collecting for constructive suggestions for the wind farm construction. 50

replies were received. The project developer organized a stakeholder comments consultation meeting on

June 23, 2006. Officials from Administrative Department of ChaganHot Tourism and Economy

Development Area, representatives from Jilin Xinghuan Environmental Technology Service Ltd. and

villagers from sumawan village and dayanbu village participated the meeting. In the meeting, the project

developer introduced the propose project, project plan, impact by the proposed project and CDM

development plan of the proposed project. Participated stakeholders raised their questions about the

proposed project.

E.2. Summary of the comments received:

>>

The summary of survey is listed as the following:

Items

Middle schoolHigh

school

Polytechnic

schoolCollege Master OtherEducation level of the

interviewee35 15 0 0 0 0

Farmer WorkerGovernment

officialStudent

Teache

rOtherOccupation of the

interviewee45 0 0 5 0 0

Satisfied Unsatisfied Not sureSound environment

(noise) 50 0 0

Yes No Not sureDisturbance of the

TV signal receiving 0 50 0

Yes No Not sureNegative impact on

their life from the

wind farm

050 0

Yes No Not sureWhether the project

will improve the

living condition43 7

0

Concerns

Disturbance of

the TV signal

receiving

Impact

from noise

Waste water


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9 38 3

Yes No Dont careWhether support theproject 50 0 0

Other concerns No information

It can be learned from the survey summary that the villagers investigated fully support the construction of

the project. In the stakeholder comments consultation meeting, the participated governmental officals and

local villagers showed quite positive comments on the proposed project. The local stakeholders believe

that the proposed project could contribute to the local economic development, environment protection and

create more job opportunities.

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

>>No negative comments have been received on the project. Moreover, the local community possesses

strong positive comments on the effects that the proposed project will make on the local economy and

infrastructure. There has therefore been no reason to modify the plans due to comments received.


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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: CWIC Baicheng Wind Power Development Co., Ltd

Street/P.O.Box: ChaganHot Tourism and Economy Development Region

Building:

City: Baicheng City

State/Region: Jilin Province

Postfix/ZIP: 137017

Country: P.R.China

Telephone: 86436-6180043

FAX: +86-10-63581188-2885

E-Mail: [email protected]

URL:

Represented by: Yang, Wenhong

Title: General Manager

Salutation:

Last Name: Yang

Middle Name:

First Name: Wenhong

Department:

Mobile: 13901309046

Direct FAX: +86-10-63581188-2885

Direct tel: +86-10-63581188-2600

Personal E-Mail: [email protected]

Organization: Endesa Generacin S.A.

Street/P.O.Box: C/Ribera del Loira, 60

Building:

City: Madrid

State/Region:

Postfix/ZIP: 28042

Country: Spain

Telephone: (0034) 91 213 10 00FAX:

E-Mail:

URL: www.endesa.es

Represented by: Jesus Abadia Lbanez

Title: Director of Environment and Sustainable Development of Endesa

Salutation: Mr.

Last Name: Abadia

Middle Name:

First Name: Jesus


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Department:

Mobile: (0034) 656600488Direct FAX: (0034) 9121 31052

Direct tel: (0034) 9121 31052

Personal E-Mail: [email protected]
mailto:[email protected]:[email protected]


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There is no public funding for the Jilin Baicheng ChaganHot Wind Power Project.

INFORMATION REGARDING PUBLIC FUNDING

Annex 2


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Annex 3

BASELINE INFORMATION

All the tables related to the calculation of baseline emission reduction are presented below:

Calculation of Operating Margin (OM):

Table A1. Simple OM Emission Factor of North East China Power Grid in 2002

Fuel types Unit Liaoning Jilin Heilongjiang Subtotal

Emissio

n Factor

Oxida

tion

rate

Average

low Caloric

value

tc/TJ%

MJ/t,km3

H

A B C D=A+B+C E F G H

Raw coal 10000 ton 3258.52 1928.97 2422.27 7609.76 25.8 98 20908

Cleaned coal 10000 ton 1.45 9.31 10.76 25.8 98 26344

Other washed

coal 10000ton 347.55 13.65 140.4 501.6 25.8 98 8363

Coke 10000ton 0 29.5 98 28435

Coke oven

gas

108m

3

1.89 1.89 13 99.5 16726

Other coal

gas

108m

3

6.62 6.62 13 99.5 5227

Crude oil 10000 ton 8.63 8.63 20 99 41816

Diesel 10000 ton 0.6 1 0.11 1.71 20.2 99 42652

Fuel oil 10000 ton 25.47 1.75 8.31 35.53 21.1 99 41816


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LPG 10000 ton 0.04 0.04 17.2 99.5 50179

Refinery gas 10000 ton 6.99 0.38 7.37 18.2 99.5 46055

Natural gas 108

m3

0.02 2.56 2.58 15.3 99.5 38931Other oil product 10000 ton 0 20 99 38369

Other coking

product

10000 ton

0 25.8 98 28435

Other fuel 10000 tce 12.14 12.14 0 0 0

Subtotal

China Energy Statistical Yearbook 2000-2002

Table A2. Thermal Power Generation of North East China Power Grid in 2002

ProvincePower

GenerationPower

Generation

Ratio of Self

PowerConsumption of

Plant Power Supply108kWh) MWh) % MWh)

Liaoning 704.5 70450000 7.42 65222610

Jilin 260.34 26034000 7.81 24000745

Heilongjiang 450.61 45061000 8.88 41059583

Total 130282938China Power Yearbook 2003

Table A3. Emission Factor of North East China Power Grid in 2002

Parameter Unit Value Source

A

Total Power Supply of

North East China Power

Grid MWh 130282938 A=Total Power Generation of North East China Power


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B

Total Emissions of


Grid tCO2e 154209495

C

Emission Factor ofNorth East China Power

Grid tCO2e/MWh 1.1836507 C=B/A



Emissio

n Factor

Oxida

tion

rate

Average

low Caloric

value

tc/TJ%

MJ/t,km3

H


Raw coal 10000 ton 3556.51 2006.66 2763.62 8326.79 25.8 98 20908

Cleaned coal 10000 ton 70.83 3 73.83 25.8 98 26344

Other washed

coal 10000ton 617.04 15.9 53.41 686.35 25.8 98 8363

Coke 10000ton 0 29.5 98 28435

Coke oven

gas

108m

3

1.66 1.66 13 99.5 16726

Other coal

gas

108m3

5.31 5.31 13 99.5 5227

Crude oil 10000 ton 3.39 3.39 20 99 41816

Diesel 10000 ton 0.32 0.34 0.66 20.2 99 42652


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Fuel oil 10000 ton 14.87 0.7 4.32 19.89 21.1 99 41816

LPG 10000 ton 1.55 1.55 17.2 99.5 50179

Refinery gas 10000 ton 4.03 0.46 4.49 18.2 99.5 46055Natural gas 10

8m

30.04 4.47 4.51 15.3 99.5 38931

Other oil product 10000 ton 0 20 99 38369

Other coking

product

10000 ton

0 25.8 98 28435

Other fuel 10000 tce 29.38 29.38 0 0 0

Subtotal

China Energy Statistical Yearbook 2004


ProvincePower

GenerationPower

Generation

Ratio of Self

Power

Consumption of


Liaoning 797.51 79751000 7.17 74032853

Jilin 297.39 29739000 7.32 27562105

Heilongjiang 484.93 48493000 8.48 44380794


Table A6. Emission Factor of North East China Power Grid in 2003

Parameter Unit Value Source

A Total Power Supply of MWh 145975752 A=Total Power Generation of North East China Power


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Grid

B

Total Emissions of

North East China PowerGrid tCO2e 170716050

C

Emission Factor of





Emissio

n Factor

Oxida

tion

rate

Average

low Caloric

value

tc/TJ%

MJ/t,km3

H


Raw coal 10000 ton 4144.2 2310.9 3084.8 9539.9 25.8 98 20908

Cleaned coal 10000 ton 84.75 1.09 4.88 90.72 25.8 98 26344

Other washed

coal 10000ton 577.67 14.26 61 652.93 25.8 98 8363

Coke 10000ton 0 29.5 98 28435

Coke oven

gas

108m

3

4.83 2.91 7.74 13 99.5 16726

Other coal

gas

108m3

57.33 4.19 61.52 13 99.5 5227

Crude oil 10000 ton 0 20 99 41816

Diesel 10000 ton 2.04 1.16 0.24 3.44 20.2 99 42652


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Fuel oil 10000 ton 12.81 1.78 2.86 17.45 21.1 99 41816

LPG 10000 ton 2.19 2.19 17.2 99.5 50179

Refinery gas 10000 ton 9.79 1.14 10.93 18.2 99.5 46055Natural gas 10

8m

30.03 2.53 2.56 15.3 99.5 38931

Other oil product 10000 ton 0 20 99 38369

Other coking

product

10000 ton

0 25.8 98 28435

Other fuel 10000 tce 26.97 5.07 32.04 0 0 0

Subtotal

China Energy Statistical Yearbook 2005


ProvincePower

GenerationPower

Generation

Ratio of SelfPower

Consumption of


Liaoning 845.43 84543000 7.21 78447450

Jilin 332.42 33242000 7.68 30689014

Heilongjiang 534.82 53482000 7.84 49289011


Table A9. Emission Factor of North East China Power Grid in 2004Parameter Unit Value Source

A

Total Power Supply of


Grid MWh 158425475 A=Total Power Generation of North East China Power


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B

Total Emissions of


Grid tCO2e 195958649

C

Emission Factor ofNorth East China Power


Table A10. Operating Margin Emission Factor of North East China Power Grid

Year 2002 Year 2003 Year 2004 Total

AEmissions

(tCO2/year)154209495 170716050 195958649 520884193

BPower Supply

(MWh)130282938 145975752 158425475 434684165

C

CO2 Emission

Factor

(tCO2/MWh)

C = A/B 1.1983

The only grid that North East China Power Grid connected with is North China Power Grid. North East China Power Grid has

North China Power Grid.

Calculation of Build Margin (BM):

Step 1. Calculation of weights of CO2 emissions of solid, liquid and gas fuel in total emissions for power generation


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CDM Executive Board

=

ji

jiyji

jCOALi

jiyji

Coal

COEFF

COEFF

,

,,,

,

,,,

(2)

=

ji

jiyji

jOILi

jiyji

OilCOEFF

COEFF

,

,,,

,

,,,

(3)

=

ji

jiyji

jGASi

jiyji

GasCOEFF

COEFF

,

,,,

,

,,,

(4)

Where:

Fijy: the consumption of fuel i for province j in year y (tce);

COEFijy: the emission factor (tCO2/tce) of fuel i, taking into account the carbon content of fuel i and the percentage of

COAL,OIL and GAS respectively refers to the group of solid, liquid, and gas fuels.

Based on China Energy Statistical Yearbook 2005, the calculation of the weights of solid, liquid, and gas fuels in North E

Coal =98.79% Oil =0.34% Gas =0.87%

Step 2: Calculation of Emission Factor of Relevant Thermal Power

AdvGasGasAdvOilOilAdvCoalCoalThermal EFEFEFEF ,,, = (5)

Where:EFCoal,Adv,EFOil,Adv andEFGasAdv respectively refers to the emission factor representing best technology commer

oil or gas fired power plants. For specific workings, see the following:


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CDM Executive Board

Table A11. Emission factor representing best technology commercially available for fuel of coal, oil or gas fired po

VariableEfficiency of Power

Supply

Emission Coefficient ofFuel

(tc/TJ)

Oxidation

RateEmissions (

A B C D=3.6/A/1000*

Coal-fired

Power PlantEFCoal,Adv 36.53% 25.8 0.98 0.913

Gas-fired

Power PlantEFGas,Adv 45.87% 15.3 0.995 0.438

Oil-firedPower Plant

EFOil,Adv 45.87% 21.1 0.99 0.60

AdvGasGasAdvOilOilAdvCoalCoalThermal EFEFEFEF ,,, = =0.9084 (tCO2/MWh)

Step 3: Calculation of BM of the Grid

Thermal

Total

ThermalyBM EF

CAP

CAPEF =, (6)

Where: CAPTotal is the total of new capacity additions, and CAPThermal is the new capacity addition of thermal power.

Table A12.Installed Capacity of North East China Power Grid in 2004

Installed

Capacity

Unit Liaoning Jilin Heilongjiang Total


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CDM Executive Board

Thermal

PowerMW 14960.3 5964.7 11259.1 32184.1

Hydro Power MW 1404.1 3601.2 844.6 3250.7

NuclearPower

MW 0 0 0 0

Wind Power

and OthersMW 142 36 39.3 137.7

Total MW 16506.4 9595.9 12143 96983.2

Source: China Power Yearbook 2005


Installed

Capacity

Unit Liaoning

Jilin

Heilongjiang Total

Thermal

PowerMW 12560.3 4428.6 9116 26104.9

Hydro Power MW 1223.1 3474.7 784.5 5482.3

Nuclear

PowerMW 0 0 0 0

Wind Power

and OthersMW 17 0 0 17

Total MW 13800.4 7903.3 9900.5 31604.2



Installed Unit Liaoning Jilin Heilongjiang Total


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CDM Executive Board

Capacity

Thermal

PowerMW 11191 4253.1 8794.1 24238.2

Hydro Power MW 1220.9 3246.1 637.9 5104.93

Nuclear

PowerMW 0 0 0 0

Wind Power

and OthersMW 0 0 0 0

Total MW 12411.9 7499.2 9432 29343.1


Table A15.Calculation of BM of North East China Power Grid

Installation in

year 1997

Installation in

year 1998

Installation in

year 2004

New Additions from

1997 to 2004

Ratio i

Addi

A B C D=C-A

Thermal PowerMW 24238.2 26104.9 32184.1 7945.9 89.

Hydro PowerMW 5104.9 5482.3 5849.9 745 8.3

Nuclear PowerMW 0 0 0 0 0.0

Wind PowerMW 0 17 217.3 217.3 2.4

TotalMW 29343.1 31604.2 38245.3 8902.2 100.Percentage compared

with installation of 200476.72% 82.64% 100%


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Table A16. Baseline Emission Factor of North East China Power Grid

Parameter Unit Amount

A Operating Margin Emission Factor tCO2/MWh 1.1983

B Build Margin Emission Factor tCO2/MWh 0.8108

CCombined Emission Factor

(C=0.75*A+0.25*B)tCO2 /MWh 1.1014

Build Margin Emission Factor of North East China Power Grid : EFBM,y=0.908489.26%=0.8108 tCO2/MWh

Table A17. Electricity Generation Baseline Emissions

Parameter Unit AmountSource or

EquationA Project installed capacity MW 30 Feasibility Study

B Annual electricity supplied MWh 50,635 Feasibility Study

C Baseline Emissions Factor tCO2 /MWh 1.1014 Table

DElectricity generation baseline

emissionstCO2/year

55,771D= B * C

CDM Executiv


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CDM Executive Board

page 45

Annex 4

MONITORING PLAN

1.Introduction of Monitoring Plan

This Monitoring plan will set out a number of monitoring tasks in order to ensure that all aspects of

projected greenhouse gas (GHG) emission reductions for the proposed project are controlled and reported.

This requires an on going monitoring of the project to ensure performance according to its design and that

claimed Certified Emission Reductions (CERs) are actually achieved.

The monitoring plan of the proposed project is a guidance document that provides the set of procedures

for preparing key project indicators, tracking and monitoring the impacts of the proposed project. Themonitoring plan will be used throughout the defined crediting period for the project to determine and

provide documentation of GHG emission impacts from the proposed project. This monitoring plan fulfils

the requirement set out by the Kyoto Protocol that emission reductions projects under the CDM have real,

measurable and long-term benefits and that the reductions in emissions are additional to any that would

occur in the absence of the certified project activity

The monitoring plan provides the requirements and instructions for:

3 Establishing and maintaining the appropriate monitoring systems for electricity generated by the

project;

3 Quality control of the measurements;

3 Procedures for the periodic calculation of GHG emission reductions;

3 Assigning monitoring responsibilities to personnel;

3 Data storage and filing system;

3 Preparing for the requirements of an independent, third party auditor or verifier.

2.User of the Monitoring Plan

The CWIC Baicheng Wind Power Development Co. Ltd., the proposed project owner, will use this

document as guideline in monitoring of the project emission reduction performance and will adhere to the

guidelines set out in this monitoring plan. This plan should be modified according to actual conditions

and requirements of DOE in order to ensure that the monitoring is credible, transparent, and conservative.

Operational manager of wind farm will collect the information and data required by the Monitoring Plan.The collected information will be documented and sent to the CDM manager and responsible staffs of the

CWIC Baicheng Wind Power Development Co. Ltd. monthly. The CDM manager will in charge of the

implementation of the Monitoring Plan and report to the General Manager of the company. The General

Manager of the company will make the confirmations on monitoring, calculation data and reports.

3. Key definitions

The monitoring plan will use the following definitions of monitoring and verification.

Monitoring: the systematic surveillance of the projects performance by measuring and recording

performance-related indicators relevant in the context of GHG emission reductions.


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page 46

Verification: the periodic ex-post auditing of monitoring results, the assessment of achieved emission

reductions and of the projects continued conformance with all relevant project criteria by a selectedDesignated Operational Entity (DOE).

4. Calibration of Meters & Metering

An agreement should be signed between the proposed project owner and the Grid that defines the

metering arrangements and the required quality control procedures to ensure accuracy. The accuracy of

the electricity meter is 0.5s that meets the national requirement. Both electricity supplied to the grid and

electricity purchased from the grid by the proposed project will be metered at the output of 66kV

substation connected to the grid. The metering equipment will be properly calibrated and checked

annually for accuracy. The project owner will prepare backup procedures to deal with any errors occurred

to the meters. In case of any errors happens, the grid-connected electricity generated by the proposed

project shall be determined by the project owner and the Grid jointly according to the error handling

procedures.

Calibration is carried out by the Grid with the records being provided to the proposed project owner

annually, and these records will be maintained by the proposed project owner and the third party

designated.

5. Monitoring

Grid-connected electricity generated by the proposed project will be monitored through metering

equipment at the substation (interconnection facility connecting the facility to the grid). When the project

is not in operation, electricity from the grid will be supplied to endure the minimum requirement of

running a plant. The electricity supplied from the grid will be monitored by the same meter that metering

the electricity supplied to the grid. The net electricity supplied to the grid will be counted for emission

reduction calculation. The data can also be monitored and recorded at the on-site control center using acomputer system. The meter reading will be readily accessible for DOE. Calibration tests records will be

maintained for verification.

6. Quality Assurance and Quality Control

The quality assurance and quality control procedures for recording, maintaining and archiving data shall

be improved as part of this CDM project activity. This is an on-going process that will be ensured through

the CDM in terms of the need for verification of the emissions on an annual basis according to this PDD

and the CDM manual.

7. Data Management System

This provides information on record keeping of the data collected during monitoring. Record keeping isthe most important exercise in relation to the monitoring process. Without accurate and efficient record

keeping, project emission reductions cannot be verified. Below follows an outline of how project related

records would be managed.

Overall responsibility for monitoring of GHG emissions reduction will rest with the CDM responsible

person of the proposed project. The CDM manual sets out the procedures for tracking information from

the primary source to the end-data calculations in paper document format. It is the responsibility of the

proposed project owner to provide additional necessary data and information for validation and

verification requirements of respective DOE. Physical documentation such as paper-based maps,

diagrams and environmental assessment will be collated in a central place, together with this monitoring

plan. All paper-based information will be stored by the proposed project owner and kept at least one copy.


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PROJECT DESI

Documents

Pdd Jilin Baicheng Chaganhot Wind - China