The Joint Crediting Mechanism (JCM) Feasibility …gec.jp/jcm/en/wp-content/uploads/2017/05/2015FS207_sum_en.pdfCorporation Ltda.（hereinafter EDC）to rehabilitate the Tongonan geothermal

JCM Feasibility Study (FS) 2015 – Final Report

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The Joint Crediting Mechanism (JCM) Feasibility Study (FS) 2015 Summary of the Final Report

“（Geothermal Power Generation in Southern Santiago）”

(Implementing Entity: Deloitte Touche Tohmatsu LLC)

1．Overview of the Proposed JCM Project

Study partners Mitsubishi Hitachi Power Systems, Ltd. (MHPS)

Energy Development Corporation Chile Ltda.（EDC） Project site Chile

Description of project

Heavily relying on imports for more than 75% of its energy demand, Chile is facing increasing its demand for energy in recent years. Enhancing the country’s power generation capacity has been a top priority. By utilizing the country’s abundant geothermal resources, the project aims to satisfy the above needs and reduce CO2 emissions. At the same time, the project is also trying to spread the use of geothermal power generation technologies to other South America countries.

Expected project implementer

Japan Mitsubishi Hitachi Power Systems, Ltd. Host country Energy Development Corporation Chile Ltda.（EDC）

Initial investment 11,400,000 (Thousand Yen) Start of construction November 2016

Annual maintenance cost 590,000 (Thousand Yen)

Construction period About 4 to 5 years

Willingness to investment

Strong (based on geothermal concessions, the prior consultation regarding the transmission line connection, which includes the drilling schedule for the production well has already been carried out, and the project plan was reported to the Ministry of Energy (Ministerio de Energia))

Date of project commencement 2021

Financial plan of project

The Chilean government decided not to provide any subsidies or other preferential treatments aimed to promote specified renewable energy at this time. EDC is interested in utilizing promotions such as subsidies and other financial supports overseas. Currently, EDC is looking to obtain drilling compensation and a credit line from the Inter-American Development Bank (IDB) or fundraising, which includes institutional finance with credit line provision from international development banks such as the Japan Bank for International Cooperation (JBIC) in order to reduce the cost of investment.in the project.

CO2 emission reductions

2,426,625 [t-CO2] ＝annual emission reduction of 161,775 [t-CO2/year]×Statutory durable life of the equipment 15 [years]

Reference emissions: 166,622 [t-CO2/year] = Amount of electricity transferred to the grid for project 366.1 [GWh/year] x Emission factor of the grid to be replaced for the project 0.455 [t-CO2/MWh]*

Project emissions: 4,847 [t-CO2/year] * Provisional emission factor is calculated by utilizing the tool to calculate the emission factor (hereinafter TOOL07) and by using the latest data of the amount of power generated and fuel consumed in the Chile Sistema Interconectado Central (SIC) grid at the point of this FS summary report.

GHG emission reductions Same as CO2 emission reductions


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2. Target of the Project Study [1]Outline of the Project Project objective

Objective of the project is to verify the feasibility of implementing Japanese technologies into geothermal power plant construction project that is under development. The project site is located 300 km south of Santiago, the capital of Chile.

Effect of GHG emissions reduction GHG emissions reduction amount will be estimated based on the feasibility study results. EDC initially planned to

build a power plant with 50MW capacity in Mariposa. For the recent rapid development of NCRE (Non-Conventional Renewable Energy: hydro under 20MW, solar, wind, geothermal, biomass), the emission factor was updated to 0.455 [t-CO2/MWh] by utilizing TOOL07.

Assuming the operation rate of the power plant is 90% and self-consumption rate of the power plant amount is 7%, the GHG emission reduction effect can be calculated as:

REy = RGPJ,y * RFgrid,CM,y

REy : Reference emissions in year y [t-CO2/y] RGPJ,y : Amount of net electricity generated and fed to the grid as a result of the implementation of the JCM

project activity in year y [MWh/y] RFgrid,CM,y : Combined margin CO2 emission factor for grid connected to power generation in year y; 0.455

[t-CO2/MWh]

REy = 50 [MW] × 8,760 [h] × 0.9 × (1-0.07) × 0.455 [t-CO2/MWh] = 366.6 [GWh] × 0.455 [t-CO2/MWh] = 166,622 [t-CO2]

Project emission is calculated as follows:

PEy = PEFF,y + PEGP,y

PEy : Project emissions in year y [t-CO2/y] PEFF,y : Emissions from fossil fuel consumption in year y [t-CO2/y] PEGP,y : Emissions from operation of geothermal power plants due to the release of NCG in year y [t-CO2/y]

Emissions from fossil fuel consumption can be calculated by using the following equation:

PEFF,y = PFCi,y * NCVi,y

PFCi,y : Project consumption of fossil fuel i (diesel, kerosene, natural gas, etc.) for the applicable equipment in year y [kl, t, 1000Nm3 /y]

NCVi.y : Net calorific value of fossil fuel i (diesel, kerosene, natural gas, etc.) in year y [t-CO2/ kl, t, 1000Nm3y]

For preliminary calculation, project consumption of fossil fuel will be very little. For simplicity, the calculation is as

follows: PEFF,y = 0

Project participants need to account for fugitive emissions of CO2 and CH4 due to release of NCG from produced

steam. NCG in geothermal reservoirs usually consists mainly of CO2 and H2S, but they also contain a small amount of hydrocarbons, including predominantly CH4. In the geothermal power project, NCG flows with the steam into the power plant. A small proportion of the CO2 is converted to carbonate/bicarbonate in the cooling water circuit. In addition, part of the NCG is reinjected into the geothermal reservoir. However, as a practical approach, fugitive CO2 and CH4 emissions due to well testing and well bleeding are not considered, as they are supposed to be almost the same as the amount before testing; therefore, they should be negligible. PEGP,y is calculated as follows:


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PEGP,y = (wsteam,CO2,y + wsteam,CH4,y * GWPCH4) * Msteam,y

wsteam,CO2,y : CO2 concentration in the produced steam in year y [t-CO2/t-steam] wsteam,CH4,y : CH4 concentration in the produced steam in year y [t-CH4/t-steam] GWPCH4 : Global warming potential of CH4 valid for the relevant commitment period [t-CO2/t-CH4]

Msteam,y : Amount of steam produced in year y [t steam/y]

At the time of this study, the steam condition is still unknown. Using data for other CDM projects, the amount of fugitive emissions of CO2 and CH4 are calculated as follows:

PEGP,y = （0.001 [t-CO2/kWh] + 0.0000012 [t-CH4/t steam] * 21） * 4,728,045 [t-steam]

= 4,847 [t-CO2] Emission reduction is calculated as follows:

ERy = REy – PEy

ERy : Emission reductions in year y [t-CO2/y] REy : Reference emissions in year y [t-CO2/y] PEy : Project emissions in year y [t-CO2/y]

ERy = 166,622 [t-CO2/y] – 4,847 [t-CO2/y]

= 161,775 [t-CO2/y]

Assuming durable life of equipment is 15 years, total emission reduction will be: 161,755 [t-CO2/y] * 15 = 2,426 [kt-CO2]

Scale and performance of the introduced facility/equipment Upon consideration of the facility/equipment to be introduced, the geothermal power plant capacity was initially

determined. During the site survey in Chile in 2015, it was found that there would be an exploration drilling of three production wells around 3,000m deep in Mariposa from 2016 to 2017. After the drilling, the production test is carried out, so the steam condition can be determined. At the time of this study, the steam condition is still unknown. As a result, the study was conducted on the premise of a 50MW capacity geothermal power plant with provisional steam condition.

As a next step, the most general and widely used power generation method, Single Flash System, was selected for this project. The mechanism of the Single Flash System is as follows:

Figure 1 System Flow of the Single Flash System

Upon consideration of the facility/equipment to be introduced, the conceptual design of the geothermal power

generation equipment is based on the Single Flash System. Based on the above condition, the specification of the


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50MW geothermal power generation facility is shown in table 1. However, the specification below is optimized based on the projection well which will be drilled in the future.

Table 1 Scale and performance of the introduced facility/equipment

Item Specification Output （Power generation end） 50MW Number of Unit 1 Power Generation Method Condensing single flash cycle Main Stream Amount（turbine inlet） 320 t/h （including non-condensable gas） Main Stream Pressure（turbine inlet） 1.1 MPa A Pressure inside of Condenser 0.01 MPa A Frequency 50Hz In-house Power Usage About 7％of the total output

Site of the project Based on the geothermal survey conducted by the government of Chile in 2003, the geothermal potential in

Mariposa was confirmed. After that, based on additional research in 2010, the possibility of developing production wells of 320MW that can last for at least 30 years was confirmed. The map of the site is shown in figure 2. The site is located in the mountain area 300 Km south of Santiago, the capital of Chile, at an altitude about 2,000m. In Chile, the location belongs to region Ⅶ.

Figure 2 Project Site

[2]Background of the Project Motivation for participation by Japanese companies

Mariposa site is located in a cold district at an altitude about 2,000m, and the winter season usually lasts for five months. The condition of the site needs to be considered while planning for the plant construction. Mitsubishi Hitachi Power Systems (hereinafter MHPS), the Japanese partner of this project, has both geothermal power plant construction experience and technical capabilities working in high altitude and cold areas. For example, MHPS has high altitude construction experience in Los Azufres, Mexico (3,000m) and Olkaria, Kenya (2,000m). In addition, MHPS has cold climate construction experience in Akita Sumikawa, Japan. It has highly valued construction related know-how. With plenty of construction experience and value know-how, MHPS is capable to promote geothermal development in high altitude and cold areas in Chile, which is the main motivation for participation in the project.

The company does not only deliver facilities/equipment required for the geothermal power plant construction, but also it has the capacity to provide a wide range of Engineering, Procurement, and Construction (EPC) of the power plant. The company is also able to provide a power plant construction package service to the geothermal power


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developers, and it has many global EPC experience. In addition, it took an order from the Energy Development Corporation Ltda.（hereinafter EDC）to rehabilitate the Tongonan geothermal power plant in Philippines in February 2015. MHPS maintains good relationship with EDC in the power generation business.

It is viable to promote the plant construction preparation for JCM plant construction project?? by demonstrating a feasibility study, utilizing the expertise of EDC and MHPS to propose and plan subsidized facilty/equipment projects.

Motivation to participate by the project implementation entity in the host country EDC, the business owner in Mariposa, has abundant geothermal project experience as well as operational and

maintenance record. The company, whose headquarter is located in Philippines, is the Philippine’s largest geothermal power generation company. As the company’s global strategy is to promote geothermal development in Chile, Peru, and Indonesia with particular focus on geothermal development in South America. The company has high technical capacities capabilities in operations and management as well as having rich experience.

In 2011, EDC started geothermal research in Chile, and it recommended the preparation of exploratory drilling for a 155MW geothermal power plant in Mariposa.

The electricity market in Chile is highly liberalized, and competition has intensified in the area of reducing development cost and price of power. For this reason, using JCM or other subsidies, which can contribute to the reduction of cost for developing plants and using Japanese incentives such as financial schemes to further promote geothermal development will be a huge incentive for the project implementation entity in host country.

Need for surveyed projects in the host country In the 1960s in Chile, the Chile Economic Development Corporation (CORFO) and United Nations Development

Programmed (UNDP) performed geological, geochemical, and geophysical survey in selected areas. After that, the Geothermal Development Act (Statute No. 19657), which provides legal certainty of geothermal development to developers came into force, allowed for further promotion of geothermal development by obtaining concessions. However, as of February 2016, geothermal power plants under operation in Chile do not exist. Therefore, geothermal power generation projects in Mariposa could play an important role in improving the energy self-sufficient rate in Chile and contributing to a more stable power supply.

According to Chile’s renewable energy deployment strategy, which includes Mariposa, over 50 locations were under geothermal development from 2010. Because of the significantly increasing power demand, the need for largely expanding stable power generation capacity using market mechanism is getting stronger.

Conformity with related laws, regulations and policy in the host country Under Statute No. 19657 (2000), the concession for developing geothermal power generation is granted and legal

certainty is granted exclusive rights for concessionary of geothermal energy development. Under the National Energy Strategy 2012 – 2030, the energy policy in Chile is promoting Non-Conventional

Renewable Energy power development, and geothermal power is one of the main area for further development. Established in 2008 and amended in 2012, the Renewable Portfolio Standard (RPS) Act assigns power generation operators with a power generation facility of more than 200MW with the power generation amount of 7% of the NCRE in 2015. The assigned amount will increase up to 20% in 2025. Geothermal power generation, which emits near zero CO2 and provides stable power generation conforms with related laws, regulations and policy in Chile.

3. Feasibility Study Plan [1] Subject and Contents of the Study

Issues need to be solved to complete the FS project as well as the contents of the study, which are shown below: Topic 1: Geothermal generation related regulation and promotion policies

Confirm the geothermal generation related regulation and promotion policies in Chile, and figure out the possibility of introducing Japanese technologies into the marketplace.

The FS was conducted by researching literature related to regulation and promotion policies and interviewing Chilean government officials to figure out current implementation barriers and promotion policies that can be utilized. Topic 2: Connection to the grid for geothermal power plant development and electricity sale


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It is necessary to confirm the geothermal generation related regulation and promotion policies in Chile, and figure out the possibility of introducing Japanese technologies into the marketplace. Because the Chileean geothermal development site is at a high altitude location, the cost of constructing a transmission line to connect to the grid will significantly increase so that the probability of implementation is reduced. For such reason, it is also necessary to understand the electricity market such as wholesale and retail and the market price.

It is also important to conduct site visits and interview energy committee members as part of the feasibility study. Topic 3: Confirmation of the geothermal power plant development status and evaluation of the cost competitiveness and economic performance

It is necessary to evaluate the probability of the geothermal power plant construction site. During the study, the FS team estimated the cost of the power generation facilities via conceptual design. Also,

since there is no subsidy that can be utilized for the construction of the geothermal power plants in Chile, it could be a big incentive for the project implementation entity if JCM subsidies can be utilized to reduce the construction cost. For the FS, the impact of the subsidy and the timeline for using such subsidy need to be considered. Topic 4: MRV implementation possibilities for designing JCM methodology

For the operation of the geothermal power plant in Chile, it is necessary to investigate the monitoring possibility for each parameter used in proposed methodology for geothermal power generation

During the FS, the FS team interviewed EDC for related project experience. Topic 5: Determining electricity emission factors and other parameters for building JCM methodology

It is necessary to investigate the emission factor of the electricity grid. Mariposa’s grid belongs to SIC, the biggest grid in Chile. SIC has a high proportion of hydroelectric power. Also, in recent years, except for geothermal, Non-Conventional Renewable Energy (NCRE) started operations; therefore, updating the emission factor is necessary.

During the study, the FS team interviewed the Chilean government to determine if they planned to publish the emissions factor or whether they are considering to do so in the future. [2] Feasibility Study Team

The structure of the FS consortium is shown in figure 3 below. Deloitte Touche Tohmatsu LLC, who leads the study, assigns experienced members from the JCM feasibility study. The study team received research support from MHPS and received geothermal development related information from EDC during the site visit.

e

Figure 3 Feasibility Study Consortium

[3]Study Schedule

Feasibility study schedule is shown at table 2 below:


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Table 2 Feasibility Study Schedule

4． Results

[1]Feasibility of the Project 1] Project Implementation Plan Topic 1: Geothermal generation related regulation and promotion policy

For the NCRE development project, the study team carried out an interview with ME and found that currently there is no geothermal generation related promotional schemes in Chile. Such schemes are not under consideration right now. When developing NCRE, private enterprises need to use their judgment based on the profitability of the project. Most of the policies in Chile are market based mechanisms. Instead, the Ministry of Energy established a department which supports filing procedures related to project planning, implementation and operations. Topic 2: Connection to the grid for geothermal power plant development and electricity sale

For regular electricity sale, National Energy Commission (CNE) provides selling bid for the supply to consumers in regulated sector (general household, but electricity will be supplied from power distribution companies).

For sale of electricity generated by geothermal power, it depends on the power wholesalers. Whether the electricity is selling to at least 2MW large-scale companies in liberalized sector, to companies in regulated sector, or to both liberalized and regulated sector is a huge factor when determining the profitability of the project. Topic 3: Confirmation of the geothermal power plant development status and evaluation of the cost competitiveness and economic performance

During the site visit, the development status was confirmed. Photos taken during the site visit are shown in figure 4 below.

The Mariposa area is close to the Argentinean border and 118km from the regional capital of Talca. At the site, roads are being maintained, and a base camp, which can accommodate over 100 people, was also constructed and under operation by EDC. It shows EDC’s positive attitude regarding geothermal development.

Project Outline Jul Aug Sep Oct Nov Dec Jan Feb

Current Situation SurveyInvestigation of Current Related Laws/Regulation and IssuesConsideration of the System IntroductionInvestigation of the Stakeholders InvolvedMethodology Preliminary InvestigationEmission Reduction Methodology Preliminary InvestigationField SurveyInterview and Consultation to the JCM relatedMinistries and AgenciesSite Visit

Methodology Proposal and Business Plan StudyGeothermal Power Generation Market ResearchEstimation of Emissions Reduction AmountBusiness Plan and Financial PlanReport Drafting

：Domestic ：Site


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Figure 4 Base Camp and Casing

For exploration drilling, EDC is planning to have two production wells in Laguna del Maule and one in Pellado.

After that the production test will be carried out to determine the steam condition. At the time of this study, the steam condition is unknown, so tentative condition is made for selecting the power generation facility/equipment.

For the geothermal power plant construction, EDC will contract with an EPC service provider and start construction in 2017 with the power plant expected to be operational in 2021. Negotiation related to the connection of the transmission line will be concluded in 2016 and then an Environmental Impact Assessment (EIA) needs to be conducted. Then, a capacity of 50MW at the beginning of the power plant operation is under final discussion.

Environmental Impact Assessment (EIA) is also required whenever a geothermal power plant is being constructed. However, if there is no residential district near the construction site, the permit is usually issued in a short period of time. Topic 4: MRV implementation possibilities for JCM methodology building

The study team consulted with EDC regarding the draft to the JCM methodology, which refers to prior geothermal power generation project methodology and conducts hearings on the monitoring possibility and frequency. EDC owns and operates a geothermal power plant in the Philippines. Topic 5: Determining electricity emission factors and other parameters for JCM methodology building

When calculating emissions factor of the SIC’s grid that connects to geothermal power plants in Mariposa, the date published by CNE is used, and the result is shown in table 3.

Table 3 Calculation result using TOOL07

OM BM CM Emission Factor [t-CO2/MWh] 0.321 0.588 0.455

Project consortium The project consortium that will carry out geothermal power plant construction project in Mariposa is shown in

figure 5 below.

Production well casing（preparing for exploration drilling）

Mariposa base camp（accommodation capacity over 100 people）


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Figure 5 Project consortium

Management structure and achievement of the project implementation entities

EDC has plenty of geothermal power generation related project experience and is one of the largest geothermal power providers. So far, there is no particular issue regarding the financial arrangement. The company also has various experience related to geothermal project management, including operations and maintenance. MHPS will provide EPC support in the area of spare parts supply, regulations, inspections and training.

2] Financial Plan of the Project

Results for project profitability evaluation are as follows:

Table 4 Precondition for Profitability Evaluation Item Precondition

Construction Period 5 years Plant Capacity 50MW

Cost About 200Million USD（including Power Plant EPC, production well drilling/transmission line construction, and interest expense during construction）

Capital Structure Debt to equity ratio assumed to be 7:3 Operating Time Annual operation rate of 90% O&M cost 5.5% of the EPC cost Electricity Selling Price 10US cent/kWh Depreciation Straight-line method for 15 years Discount Rate 5% JCM subsidy for equipment

8.3Million USD（1 billion yen）

Table 5 Result of the Project IRR

Case PIRR（20 years）

Normal 11.3% With JCM subsidy 11.8%

EDC is trying to reduce the risk of geothermal resource exploitation by utilizing Clean Technology Fund’s

Geothermal Risk Mitigation Program (MiRig) provided by Inter-American Development Bank (IDB). Started in 2014, the MiRig was introduced by the partnership between IDB and Climate Investment Fund (CIF), which aims to backup projects that make little progress without concessional risk mitigation support. The program, whose size is 20 million USD, can be used to support geothermal developers who will make necessary investments for production well drilling and power plant construction. EDC has already obtained private consent to utilize this program.

Project Owner（EDC）

Power Plant EPC Service Provider（MHPS）

Power Plant Construction Company• Civil engineering and construction• Installation• Equipment transport

Production Well Drilling Company

EIA Consulting Company

Methodology DevelopmentMRV Capacity Building

（Deloitte Touche Tohmatsu LLC）

Utilization of Japanese Financial Scheme（ Deloitte Touche Tohmatsu LLC ）


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[2] Permits and Licenses for the Project Status on acquiring permits and licenses for the geothermal power generation project in Mariposa is summarized as

follows:

Table 6 Permits and licenses acquisition status

Licenses Acquisition Progress Contents Agency Granting the

Permit/License Required

Documents Exploration and Exploitation Rights （Geothermal Concession）

Acquired by EDC Permit for production well drilling and power plant construction. In Chile, exploration and exploitation permits come together.

Ministerio de Energia

Tender document

Environmental Impact Assessment（EIA）

Under process（EDC is preparing EIA consulting bid）

Investigate the impact of the life cycle of geothermal power plants on the surrounding environment and document the results.

Review conducted by Ministerio del Medio Ambiente (MMA) and other ministries

EIA report

Other than permits and licenses, reporting requirements for geothermal power development are as follows:

Table 7 Necessary Reporting

Name of Reporting Status Content Responsible Agency Required Documents

Start of Mining Completion To report at the start of the production well drilling


Report on the start of mining

Start of Power Plant Construction

Preparation To report at the start of the power plant construction


Report on the start of power plant construction

[3] Contribution from Japan 1] Social/economic effects for the host country

If the geothermal power plant in Mariposa can generate and transmit electricity, then there is no need to heavily rely on hydropower, which is dependent on weather condition, and stabilization of the power supply will be realized. In addition, advancement of geothermal development will improve the national standard of living by creating employment and increasing the electrification rate. Finally, geothermal development will attract and expand businesses in the private sector. As a result, problems such as population concentration in cities such as Santiago and economic disparity between rural and urban areas are expected to be relieved.

2] Transfer of Japanese geothermal technology and infrastructure export expansion Chile has large geothermal potential. If Japan can successfully introduce geothermal power generation projects to

other South American countries, it would contribute to the expansion and deployment of opportunities by providing outstanding hard (plant related) and soft (operation related) technologies owned by Japanese companies.

3] JCM diffusion and GHG emission reduction for Japan Expanding JCM project by participating geothermal power developers in Chile will contribute to the

reduction of GHG emissions in Japan. According to current estimation, a 50MW geothermal plant in Chile can contribute around 50 ktCO2 reduction annually. If Japan can introduce geothermal power plant with the capacity of 1/3 of Chile’s total geothermal potential (3GW), by simple calculation, the contribution to CO2 emission reduction will be around 6 MtCO2 annually.

[4] Environmental integrity and Sustainable development in host country 1] Environmental integrity


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Power generated by the geothermal power plant is supplied to the grid in Chile. Thus, power generated by thermal power plants that are supplied to the gird will be replaced. As a result, emissions of SOx and NOx will decrease.

On the other hand, because of the construction and operation of geothermal power plants, there are negative impacts to the environment such as land subsidence to the surrounding area and water pollution will be expected. However, the government of Chile has regulations in place that requires an environmental impact assessment (EIA), which became effective in December 2013. This geothermal project is EIA’s target. Any negative impacts determined by the EIA will prevent the construction of a plant. Therefore, construction of a plant is not expected to have a negative impact to the environment. 2] Sustainable Development in host country

This project as well as other similar projects will contribute to a stable power supply in Chile. Chile heavily relies on imports for more than 75% of its total energy demand. In Chile, thermal power generation and hydroelectric account for 64% and 29% respectively of the total power generated in 2012. Introducing geothermal power generation will possibly reduce power generated by thermal and hydro, which is highly weather dependent and contributes to a better energy mix in the long run. 5. JCM methodology Development [1]Data Collection and Analysis

Data which is required for the development of a methodology for this geothermal power generation project are summarized in table 8. It is possible to consult with EDC for data collection.

The amount of power generated by the power plants, which connects to the grid in Chile, needs to be reported to the Ministerio de Energia. The data can be used for monitoring the amount of power generated.

Table 8 Data Required for the Calculation of GHG Emissions Reduction Parameter Details Data Collection Method

PFCi,y Total consumption of fossil fuel i of the applicable equipment in year y

On-site measurements will be carried out using fuel meters connected to the power generation units

RGPJ,y

Amount of net electricity generated and fed in the grid as a result of the implementation of the JCM project activity in year y

The following parameters will be measured: (i) The amount of electricity supplied by the project plant to the grid; and (ii) The amount of electricity delivered to the project plant from the grid

wsteam,CO2,y CO2 concentration in the produced steam in year y

Non-condensable gases sampling is carried out at the steam field-power plant interface using ASTM Standard Practice E1675 for Sampling 2-Phase Geothermal Fluid for Purposes of Chemical Analysis

wsteam,CH4,y CH4 concentration in the produced steam in year y

Non-condensable gases sampling is carried out at the steam field-power plant interface using ASTM Standard Practice E1675 for Sampling 2-Phase Geothermal Fluid for Purposes of Chemical Analysis

Msteam,y Amount of steam produced in year y Amount of steam produced during the year in the production wells will be measured daily using a meter. Measurements will be recorded regularly in production reports.

RFgrid,OM,y Operating margin for CO2 emission factor for grid connected to power generation in year y

Operating margin for CO2 emission factor for grid connected power generation in year y calculated using the latest version of the TOOL07 (https://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v1.1.pdf/history_view)

RFgrid,BM,y Build margin for CO2 emission factor for grid connected power generation in year y

Generación Bruta SIC – SING (http://www.cne.cl/en/estadisticas/electricidad/) Consumo de Combustibles SIC (http://www.cne.cl/en/estadisticas/electricidad/)

[2]Organizational Plan for MRV According to the interview with EDC, the following MRV implementation team is capable of conducting

MRV for the monitoring items proposed in the past JCM geothermal power generation methodology and the ones required in CDM geothermal power generation methodology.


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Figure 8 MRV Implementation Team

6. Post Study Plan toward Project Realization

By participating in this project, EDC, the project owner, has a better understanding of Japan’s outstanding geothermal power generation technology. Also, as a result of the frequent communication, it has deepened its relationship with Japanese parties. With further communication and cooperation, development of the current project will be expected.

EDC（Project Developer）

Report

JCM Joint Committee

Third Party

・Credit application・Registration application

・Submission of PDD/monitoring report

Report

・Verification ・Notification of the verification result

Confirmation and approval of the monitoring report

Project General Manager

Confirmation and approval of the monitoring report

Preparation of the report

Monitoring Official

Based on the PDD and monitoring guidelines, implement the following:

• Data collection• Calculation of GHG emission

reductions

Monitoring Personnal

Capacity-building regarding MRV methodology

DeloitteTouche Tohmatsu LLC

・Monitoringemission factor ・Providing reference information