PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 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

Appendices Appendix 1: Monitoring Plan for Expenditure in Sustainable Development

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 2 SECTION A. General description of project activity A.1. Title of the project activity:

Title: Grid connected electricity generation project activity Date: 22 December 2011 Version: 01.1

A.2. Description of the project activity:

Description of the project activity

The Bajoli Holi Hydroelectric project is proposed as a Greenfield run-of-the-river scheme in Chamba district of Himachal Pradesh. The project activity is being developed by GMR Bajoli Holi Hydropower Private Limited (GBHHPL) which is a Special Purpose Vehicle (SPV) formed by GMR Energy Limited. GMR Energy Limited is a part of the GMR Group and is operating in the power and energy generation part of the diversified group’s interests.

The project activity would harness the head available in the upper reaches of Ravi river between Bajoli and Holi villages to supply net 761,696 MWh of clean electricity to the North-East-West-North East (NEWNE) grid. This would be done through three Vertical Axis Francis Turbines with installed capacity of 60.0 MW each.

The scope of the project activity includes a 66m high concrete gravity dam as diversion structure with slightly curved axis with the objective of regulating the spillway discharge, a Head Race Tunnel aligned on left bank of Ravi river, a surge shaft located near Sutkar village, a pressure shaft and 180 MW installed capacity surface powerhouse located on left bank of Ravi river just upstream of confluence of Kee Nala with Ravi. Keeping in view the long length of the Head Race Tunnel, five intermediate construction adits are also proposed to facilitate the construction activities.

Purpose of the project activity

India has a substantial shortage of power1 and the project activity will aid in bridging this gap in demand and supply and also increasing the share of renewable energy in the grid mix. The Indian grid is currently dominated by fossil fuel based modes of power generation, with thermal energy contributing to 65%2

In the absence of the project activity, the energy from flowing water would have remained unutilized. According to the approved consolidated methodology ACM0002, the baseline scenario for the project activity is “Electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources, as reflected in the combined margin (CM) calculations described in the Tool to calculate the emission factor for an electricity system”. The electricity exported by the proposed project activity would displace an equivalent amount of electricity generated by the power plants already operational and proposed to be added in the NEWNE Grid which relies predominantly on fossil fuels (particularly coal).

of the total installed capacity.

The estimation of GHG emission reductions by the project activity is limited to carbon dioxide (CO2) only and its primary source is the fossil fuels consumed in the NEWNE grid. The proposed project

1 http://www.cea.nic.in/reports/monthly/gm_div_rep/power_supply_position_rep/energy/Energy_2011_10.pdf and http://www.cea.nic.in/reports/monthly/gm_div_rep/power_supply_position_rep/peak/peak_2011_10.pdf 2 http://www.cea.nic.in/reports/monthly/executive_rep/oct11/1-2.pdf

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 3 activity would lead to an estimated emission reduction of 687,964 tCO2e annually over the chosen crediting period. The form for Prior Consideration of the CDM for the project activity was submitted under the title “Bajoli Holi Hydroelectric Project in Himachal Pradesh”.

Contribution of the project activity to sustainable development

Ministry of Environment and Forests (MoEF), Govt. of India has stipulated the following indicators for sustainable development in the interim approval guidelines for CDM projects3

• Social well being

:

o The project activity shall contribute towards generating employment opportunities for the local inhabitants during the installation and operation of the project activity.

o The project will lead to development of the road and telecommunication network and improvement in the local infrastructure that would boost the development and social upliftment of the region.

• Economic well-being

o The project activity is being implemented in an economically under developed region and will bring in a substantial investment into the region that will contribute to the local economy as well as set an example to other industries over the suitability of the region for investment.

o The project activity would improve the grid frequency and availability of electricity to the local consumers which would further provide opportunities for industries and economic activities to be setup in the area resulting in greater local employment and overall development of the region.

• Environmental well being

o The project would utilize hydel energy for generating electricity that would otherwise have been generated through alternate fossil fuel based power plants, contributing to reduction in GHG emissions and thereby contributing to the mitigation of climate change resulting from increased anthropogenic emissions of GHG.

o As hydropower projects produce no end products in the form of solid waste (ash etc.), they address the problem of solid waste disposal encountered by most other sources of power.

• Technological well being

o The project activity would utilize advanced hydro power generation technology. Thus the project activity is propagating the latest technology, which is comparable with best practices anywhere in the world.

o The project activity would generate electricity through a technology that is environmentally safe and sound.

The National CDM Authority has mandated GBHHPL to commit a minimum of 2% earning (net realization value) from sale of CERs towards Sustainable Development Activities including society and community development activities. The same would be monitored in the tabular format presented in Appendix 1.

A.3. Project participants: 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

3 http://cdmindia.nic.in/host_approval_criteria.htm

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 4

participant (Yes/No)

India (Host)

GMR Bajoli Holi Hydropower Private Limited (Private Entity) No

A.4. Technical description of the project activity: A.4.1. Location of the project activity: A.4.1.1. Host Party(ies):

India

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

Himachal Pradesh

A.4.1.3. City/Town/Community etc.:

District: Chamba Village: Bajoli and Holi

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 5

A.4.1.4. Details of physical location, including information allowing the unique identification of this project activity (maximum one page):

The project is accessible via Chamba-Holi road. The proposed diversion site is located between Bajoli and Nayagram village and is about 15 km upstream of Holi, a large village in the area. The powerhouse site is located near Barola village, which is about 2 km downstream of Holi.

The project area is connected by a metalled road from Chamba, which itself is connected to Pathankot through National Highway 33. In the project area, the Chamba-Holi-Nayagram road runs on the left bank of Ravi river. The Geographical Coordinates of the powerhouse are as below:

Latitude: 32.3478˚ N (or 32˚ 20’ 52” N) Longitude: 76.5328˚ E (or 76˚ 31’ 58” E)

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

The project activity is considered under “grid-connected electricity generation from renewable sources”, having a capacity of more than 15 MW. Therefore as per the scope of the project activity enlisted in the ‘list of sectoral scopes (CDM-ACCR-06) and related approved baseline and monitoring methodologies’, the project activity may principally be categorized in:

Scope Number – 1 Sectoral Scope – Energy Industries (renewable/non-renewable sources).

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 6 Methodology – ACM0002 Version 12.2.0 (EB 65) “Consolidated baseline methodology for grid-connected electricity generation from renewable sources”

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

Bajoli Holi Hydroelectric project is proposed in the upper reaches of the Ravi river in Chamba district of Himachal Pradesh. The Project is a run of the river scheme planned to generate 180 MW4

The project activity would aid in bridging the gap in demand and supply and also increasing the share of renewable energy in the grid mix. The electricity exported by the project would displace an equivalent amount of electricity generated by the power plants already operational and proposed to be added in the NEWNE Grid which relies predominantly on fossil fuels.

of clean electricity utilizing the potential energy of water to generate electrical energy for export to the grid.

Since the project activity is a Greenfield installation there was no electricity generation at the project site. CEA has approved power generation potential of the project based on historical hydrological data (discharge, flow etc) recorded in the river at the proposed site.

In accordance with the applicable consolidated baseline methodology ACM0002, Version 12.2.0, since the project activity is the installation of a new grid-connected renewable power plant/unit, the baseline scenario is the “Electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources”.

The project envisages the construction of a 66 m high concrete gravity dam near Bajoli village, approximately 950 m downstream of the confluence of Channi nallah and the river Ravi. The diverted water shall be carried through a water conductor system planned on the left bank of Ravi to a surface powerhouse. The water conductor system comprises a power intake structure which feeds two inlet tunnels that bring the water to two underground Desanding chambers which are connected to the headrace tunnel through two link tunnels. Water passes through HRT then into Surge Shaft, Pressure Shaft, Surface Power House and tail race tunnel and back into Ravi River. The rest of the water conductor system comprises of pressure shaft connected to the headrace tunnel through a surge shaft, and a tailrace channel which brings the water back into Ravi at the mouth of Kuther HEP reservoir. The surface powerhouse complex consist of, three units of 60MW, each, is proposed on a terrace available on the left bank of the river.

The technical parameters for the project activity are as follows:

Name of Scheme Bajoli Holi Hydroelectric Project Dam-Spillway Dam Height from Foundation Level 66.00 m Dam Length 178.0 m Surface Powerhouse Capacity of Plant 180 MW Type of turbine Vertical Axis Francis turbine Generator No. of generating units 3 Nos. Type of generator Suspended type Rated Discharge per unit 23.08 m3/sec Rated Head 291.47 m Installed Capacity 3 x 60 MW 4 With provision of 20% overload capacity

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 7 Energy Generation Annual generation average 769,390 MWh Auxiliary consumption and Transformation losses 1.0% Annual Net Saleable energy 761,696 MWh

Transfer of technological know-how is not a part of the project activity and the technology being implemented is environmentally safe and sound.

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

Years Annual estimation of emission reductions in tonnes of CO2e

25 December 2016 – 24 December 2017 687,964 25 December 2017 – 24 December 2018 687,964 25 December 2018 – 24 December 2019 687,964 25 December 2019 – 24 December 2020 687,964 25 December 2020 – 24 December 2021 687,964 25 December 2021 – 24 December 2022 687,964 25 December 2022 – 24 December 2023 687,964

Total estimated reductions (tonnes of CO2e) 4,815,747

Total number of crediting years 7 Annual average over the crediting period of estimated reductions (tonnes of CO2e) 687,964

A.4.5. Public funding of the project activity:

There is no recourse to any public funding from Annex I parties by GMR Bajoli Holi Hydropower Private Limited (GBHHPL) in the proposed project activity. The project proponent hereby confirms that there is no divergence of Official Development Assistance (ODA) to the proposed project activity. The required funds are being raised through various financial institutions and in-house funding.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 8 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:

Title of the baseline methodology: “Consolidated Baseline Methodology for grid connected electricity generation from renewable sources”

Title of the monitoring methodology: “Consolidated Baseline Methodology for grid connected electricity generation from renewable sources”.

Reference: ACM0002, Version 12.2.0 (EB 65), Sectoral scope: 1 It has been referred from the list of approved methodologies for CDM project activities in the UNFCCC CDM website (http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html).

The approved methodology also draws upon:

• Version 06.0.0 (EB 65, Annex 21, 25th November 2011) of the Methodological Tool “Demonstration and assessment of additionality”; and

• Version 02.2.1 (EB 63, Annex 19, 29th September 2011) of the “Tool to calculate the emission factor for an electricity system”

• Version 03.0.1 (EB 60, Annex 7, 11th August 2011) of the “Combined tool to identify the baseline scenario and demonstrate additionality”

• Version 02 (EB 41, Annex 11, 02nd August 2008) of the “Tool to calculate project or leakage CO2 emissions from fossil fuel combustion”

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

Justification of the choice of methodology

The project activity is Grid connected renewable power generation and meets the applicability conditions of the chosen methodology.

This methodology is applicable to grid-connected renewable power generation project activities that

(a) install a new power plant at a site where no renewable power plant was operated prior to the implementation of the project activity (greenfield plant);

(b) involve a capacity addition; (c) involve a retrofit of (an) existing plant(s); or (d) involve a replacement of (an) existing plant(s).

The project activity is the installation of a new hydro power plant as a run-of-the-river scheme on the Ravi River.

The methodology is applicable under the following conditions:

• The project activity is the installation, or modification/retrofit of a, capacity addition, retrofit or replacement of a power plant/unit of one of the following types: hydro power plant/unit (either with a run-of-river reservoir or an accumulation reservoir), wind power plant/unit, geothermal power plant/unit, solar power plant/unit, wave power plant/unit or tidal power plant/unit;

The project activity is the installation of a new hydro power plant as a run-of-the-river scheme on the Ravi River.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 9 • In the case of capacity additions, retrofits or replacements (except for wind, solar, wave or tidal

power capacity addition projects which use Option 2: on page 11 to calculate the parameter EGPJ,y): the existing plant started commercial operation prior to the start of a minimum historical reference period of five years, used for the calculation of baseline emissions and defined in the baseline emission section, and no capacity expansion or retrofit of the plant has been undertaken between the start of this minimum historical reference period and the implementation of the project activity;

The project activity is not a capacity addition, retrofit or replacement of an existing power plant.

• In case of hydro power plants, one of the following conditions must apply:

o The project activity is implemented in an existing single or multiple reservoirs, with no change in the volume of any of reservoirs; or

o The project activity is implemented in an existing single or multiple reservoirs, where the volume of any of reservoirs is increased and the power density of each reservoir, as per definitions given in the Project Emissions section, is greater than 4 W/m2; or

o The project activity results in new single or multiple reservoirs and the power density of each reservoir, as per definitions given in the Project Emissions section, is greater than 4 W/m2.

The Project is being developed as a run-of-the-river scheme with peaking storage capacity and a dam that is envisaged to provide live storage of 0.92 million m3 approx. The area of the new single reservoir at Full Reservoir Level (F.R.L.) is 16.50 hectares which translates to a power density of:

1091105.1610180

4

6

=××

W/m2 which is greater than 4 W/m2. Hence, this applicability criterion is satisfied.

• In case of hydro power plants using multiple reservoirs where the power density of any of the reservoirs is lower than 4 W/m2 all the following conditions must apply:

o The power density calculated for the entire project activity using equation 5 is greater than 4 W/m2;

o Multiple reservoirs and hydro power plants located at the same river and where are designed together to function as an integrated project that collectively constitute the generation capacity of the combined power plant;

o Water flow between multiple reservoirs is not used by any other hydropower unit which is not a part of the project activity;

o Total installed capacity of the power units, which are driven using water from the reservoirs with power density lower than 4 W/m2, is lower than 15MW;

o Total installed capacity of the power units, which are driven using water from reservoirs with power density lower than 4 W/m2, is less than 10% of the total installed capacity of the project activity from multiple reservoirs.

The project activity does not use multiple reservoirs. Hence, this applicability criterion is not required to be fulfilled.

The methodology is not applicable to the following:

• Project activities that involve switching from fossil fuels to renewable energy sources at the site of the project activity, since in this case the baseline may be the continued use of fossil fuels at the site;

The project activity does not involve switching from fossil fuels to renewable energy sources.

• Biomass fired power plants;

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 10 The project activity is not a biomass fired power plant.

• Hydro power plant that result in new single reservoir or in the increase in existing single reservoir where the power density of the power plant is less than 4 W/m2.

As described above, the project activity has a new single reservoir with power density of 1091 W/m2 which is greater than 4 W/m2.

Hence, the approved monitoring methodology ACM0002 "Consolidated monitoring methodology for grid-connected electricity generation from renewable sources" is applicable to the project activity.

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

ACM0002 Version 12.2.0 specifies that the project boundary will be:

“The spatial extent of the project boundary includes the project power plant and all power plants connected physically to the electricity system that the CDM project power plant is connected to.”

The proposed project would be feeding the electricity in the NEWNE regional grid which constitutes several states and Union territories including Himachal Pradesh. The proposed project would have marginal impact on all the generation facilities in the NEWNE grid. Thus all the power generation facilities connected to this grid form the project boundary for the purpose of baseline estimation. For conservative and accurate estimation, the imports of electricity from other regional grids have been included in the baseline calculation.

The project activity has a distinctive physical demarcated boundary. A diagram depicting the project boundary is shown below:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 11

Intake structure

Desilting Chamber

Penstock

Head Race tunnel intake portal

Diversion Structure

Penstock

Penstock

Penstock

POWER HOUSE

Flushing Channel

60 MW Turbine

Generator Set

60 MW Turbine

Generator Set

60 MW Turbine

Generator Set

Project Boundary

Switch yard Electricity to NEWNE grid

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 12 The greenhouse gases and emission sources included in or excluded from the project boundary are shown in Table below:

Overview on emission sources included in or excluded from the project boundary

Source Gas Included? Justification / Explanation

Bas

elin

e

CO2 emissions from electricity generation in fossil fuel fired power plants that are displaced due to the project activity.

CO2 Yes This is the main emission source because the combustion of fossil fuels for electricity generation leads to emission of CO2.

CH4 No This is a minor emission source because the emission of CH4 from the combustion of fossil fuels is low.

N2O No This is a minor emission source because the emission of N2O from the combustion of fossil fuels is low.

Proj

ect A

ctiv

ity

For geothermal power plants, fugitive emissions of CH4 and CO2 from non-condensable gases contained in geothermal steam.

CO2 No

The project activity is a run of the river hydroelectric project and not a geothermal project. Thus these emission sources are not applicable to the proposed project.

CH4 No

N2O No

For geothermal power plants, CO2 emissions from combustion of fossil fuels required to operate the geothermal power plant.

CO2 No

The project activity is a run of the river hydroelectric project and not a geothermal project. Thus these emission sources are not applicable to the proposed project.

CH4 No

N2O No

For hydro power plants, emissions of CH4 from the reservoir.

CO2 No

Since the power density of the project is1091 W/m2 which is greater than 10 W/m2, according to ACM0002, the project activity emissions (PEy) are zero.

CH4 No

N2O No

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

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 13

As the project activity is the installation of a new grid-connected hydro power plant/unit, according to ACM0002 Version 12.2.0, the baseline scenario is the following:

Electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources, as reflected in the combined margin (CM) calculations described in the “Tool to calculate the emission factor for an electricity system” described step wise under section B.6.

The Combined Margin has been calculated using the “Tool to calculate the emission factor for an electricity system” Version 02.2.1. The Operating Margin (OM) and Build Margin (BM) emission factors have been considered from the information (CO2 Baseline Database for the Indian Power Sector -Version 6.0) published by the Central Electricity Authority (CEA), Ministry of Power, Govt. of India which has been computed according to the procedures prescribed in the ‘Tool to calculate the emission factor for an electricity system”, version 02.2.1. Considering the individual weightings assigned to the OM and the BM emission factors respectively, as prescribed in the ‘Tool to calculate the emission factor for an electricity system (Version 02)’, the combined margin emission factor for the NEWNE Grid has been estimated at 0.9032 tCO2e/MWh.

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):

According to the “Guidance on the demonstration and assessment of prior consideration of the CDM” Version 4, if the PDD has been published for global stakeholder consultation before the project activity start date, there is no requirement of notification to host party DNA and UNFCCC Secretariat of the commencement of the project activity and the intention to seek CDM status. Nevertheless, this notification was made by GBHHPL to the Ministry of Environment and Forests on 07.04.2011 and UNFCCC Secretariat on 08.04.2011. An acknowledgment for the notification was also received from MoEF on 08.04.2011 and UNFCCC on 13.06.2011. Further, the implementation timeline and the steps taken for the CDM registration process are presented below:

Date Project Execution Step CDM registration efforts Evidence

26/08/2010 Appointment of CDM Consultant Letter of Intent to Consultant

30/10/2010 Stakeholder consultation Stakeholder consultation held at Bharmour, Chamba

Minutes of Meeting of Environmental Public Hearing

24/01/2011 Environmental clearance from MoEF

Letter from Ministry of Environment & Forests J-12011/86/2007/IA.I

07/04/2011 Intimation to MoEF for prior consideration

Copy of Letter GMR/Hydro/520/1399/11

08/04/2011 Intimation to UNFCCC for prior consideration

Copy of letter GMR/Hydro/520/1398/11

08/04/2011 Acknowledgment from MoEF for prior consideration

Email acknowledgment

09/06/2011 Acknowledgment from UNFCCC for prior Email acknowledgment

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 14

consideration 11/10/2011 Appointment of DOE Validation Agreement with DOE

31/03/2012 Proposed date of award of contract for Civil Works

Proposed

In accordance with the methodology, the additionality of the project activity is being demonstrated and assessed using the Methodological Tool “Demonstration and assessment of additionality” Version 06.0.0. The step-wise approach to establish additionality of the project activity as per the additionality tool is as follows:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 15

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) through the following Sub-steps:

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

Identify realistic and credible alternative(s) available to the project participants or similar project developers that provide outputs or services comparable with the proposed CDM project activity.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 16 Sub-step 1b: Consistency with mandatory laws and regulations:

The proposed project activity is a run-of-the-river hydro power project involving supply of electricity to NEWNE grid. Hence, according to baseline methodology ACM0002 Version 12.2.0, since the project activity is the installation of a new grid-connected renewable power plant/unit, the baseline scenario is the following:

Electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources, as reflected in the combined margin (CM) calculations described in the “Tool to calculate the emission factor for an electricity system”.

Paragraph 105 of the “Clean Development Mechanism Validation and Verification Manual” Version 01.2 states that “The PDD shall identify credible alternatives to the project activity in order to determine the most realistic baseline scenario, unless the approved methodology that is selected by the proposed CDM project activity prescribes the baseline scenario and no further analysis is required.”

Since, the methodology has prescribed the baseline scenario as discussed above, therefore there is no requirement of identification of alternatives to the project activity and Step 1 can be skipped.

Step 2: Investment analysis

Determine whether the proposed project activity is not:

(a) The most economically or financially attractive; or (b) Economically or financially feasible, without the revenue from the sale of certified emission

reductions (CERs).

The Methodological Tool “Demonstration and assessment of additionality” (Version 06.0.0) states that project participants may choose to apply Step 2 (Investment analysis) Or Step 3 (Barrier analysis) to demonstrate the additionality of the project. In the present scenario, both Step 2 and Step 3 are used to demonstrate the additionality of the project.

Sub-step 2a: Determine appropriate analysis method

Benchmark analysis has been chosen as the appropriate analysis method since the baseline for the project activity is supply of electricity from the grid. This is also in accordance with Paragraph 19 of the Guidance on the Assessment of Investment Analysis Version 5 that says “If the alternative to the project activity is the supply of electricity from a grid this is not to be considered an investment and a benchmark approach is considered appropriate.”

Sub-step 2b: Option III. Apply benchmark analysis

The Project IRR was found to be the most appropriate financial indicator for assessment of the feasibility of the project activity. The internal rate of return (IRR) is a very common capital budgeting metric used by firms to decide whether they should make investments in a particular project activity. It is defined as the annualized effective compounded return rate which can be earned on the invested capital or the discount rate that makes the net present value of the investment's income stream total to zero. Hence it is an indicator of the efficiency or quality of an investment.

The project proponent had carried out an estimation of the costs involved in the project activity and the revenues that it would be expected to generate over its operational lifetime. Based on these estimates, the Project IRR for the project activity was found to be very low, indicating it to be not economically or financially attractive for the project proponent. However, the project proponent decided to implement the project only after taking CDM revenue into consideration that improves the Project IRR

Benchmark

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 17 Since benchmark approach is being applied, the section on Selection and Validation of Appropriate Benchmarks of Guidance on the Assessment of Investment Analysis Version 5 has been referred which states that “Local commercial lending rates or weighted average costs of capital (WACC) are appropriate benchmarks for a project IRR”. Accordingly, the Prime Lending Rates (PLR) of major public lending banks in India that represent the local commercial lending rates in the country were assessed to arrive at an appropriate benchmark for the project IRR. The table below summarizes the PLR of these institutions:

Bank Prime Lending Rate

Bank of Baroda 15.00%

Punjab National Bank 14.25%

Bank of India 15.00%

IDBI Bank Limited 15.25%

Allahabad Bank 15.00%

Canara Bank 15.00%

Union Bank of India 15.00%

Central Bank of India 15.00%

It can be observed that most of the banks had a PLR of 15% at the time of investment decision. However, the PLR of Punjab National Bank (14.25%), which was the lowest at the time, was selected as the benchmark on a conservative basis. This is also conservative since the lending rates of private sector banks are typically higher than that of public sector banks.

Therefore the benchmark was determined as 14.25% based on analysis of local commercial lending rates in the country.

IRR Analysis

The IRR analysis carried out in accordance with the Guidance on the Assessment of Investment Analysis Version 05. This has been demonstrated in detail as given below:

Guidance Reasoning General issues in calculation and presentation

The period of assessment should not be limited to the proposed crediting period of the CDM project activity. Both project IRR and equity IRR calculations shall as a preference reflect the period of expected operation of the underlying project activity (technical lifetime), or - if a shorter period is chosen - include the fair value of the project activity assets at the end of the assessment period. In general a minimum period of 10 years and a maximum of 20 years will be appropriate.

The period of assessment has been considered as 35 years i.e. operational lifetime of the project activity.

The fair value of any project activity assets at the end of the assessment period should be included as a cash inflow in the final year. The fair value should be calculated in accordance with local accounting regulations where available, or international best

The project has been assigned on BOT (Build, Operate and Transfer) basis and therefore would have to be transferred to the government. Hence, GBHHPL would not be receiving any value for the project at the end

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 18 practice. It is expected that such fair value calculations will include both the book value of the asset and the reasonable expectation of the potential profit or loss on the realization of the assets.

of assessment period.

Depreciation, and other non-cash items related to the project activity, which have been deducted in estimating gross profits on which tax is calculated, should be added back to net profits for the purpose of calculating the financial indicator (e.g. IRR, NPV).

Depreciation and other non-cash items related to the project activity are not considered for the purpose of calculating the Project IRR.

Input values used in all investment analysis should be valid and applicable at the time of the investment decision taken by the project participant.

The input values used in the analysis were applicable at the time of investment decision.

In the case of project activities for which implementation ceases after the commencement and where implementation is recommenced due to consideration of the CDM the investment analysis should reflect the economic decision making context at point of the decision to recommence the project. Therefore capital costs incurred prior to the revised project activity start date can be reflected as the recoverable value of the assets, which are limited to the potential reuse/resale of tangible assets.

This guidance is not applicable to the project activity as CDM was considered prior to project implementation and its implementation was never ceased.

Specific Guidance on the Calculation of Project IRR and Equity IRR

The cost of financing expenditures (i.e. loan repayments and interest) should not be included in the calculation of project IRR.

The cost of financing expenditures like loan repayments and interest are not included in the calculation of project IRR.

In the calculation of equity IRR only the portion of investment costs which is financed by equity should be considered as the net cash outflow, the portion of the investment costs which is financed by debt should not be considered a cash outflow

Equity IRR is not considered for the analysis of the project activity.

The assumptions used for the carrying out the IRR analysis based on the Detailed Project Report are as shown below:

Particulars Value Units Source Energy Generation

Plant capacity 180 MW Detailed Project Report Design gross energy generation 769.39 MU pa Detailed Project Report Auxiliary Consumption 1 % Detailed Project Report

Project Cost Project Cost 1696.93 Crores Detailed Project Report Percentage of Equity 25 % Detailed Project Report

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 19 Percentage of Debt 75 % Detailed Project Report Return On Equity 15.5 % CERC Regulations, 2009

Operation & Maintenance O&M Charges (% of total cost) 2 % Detailed Project Report and

CERC Regulations, 2009 Rate of Increase of O&M Charges 5.72 % Working Capital

Receivables 2 Months Detailed Project Report and CERC Regulations, 2009 Maintenance spares (% of O&M expenses) 15 %

Operation and maintenance expenses 1 Month Interest Rate on Working Capital 14 % Detailed Project Report

Depreciation For Tariff determination (SLM)

Salvage value 90.00 % CERC Regulations, 2009 Land under full ownership 0 %

CERC Regulations, 2009 Appendix III Civil Works 3.34 %

Plant & Machinery 5.28 % As per Companies Act (SLM)

Land under full ownership 0 % Companies Act Schedule XIV Civil Works 3.34 %

Plant and Machinery 5.28 % As per IT Act (WDV)

Land under full ownership 0 % Income-Tax Act Civil Works 10 %

Plant and Machinery 15 % Taxation

Minimum Alternative Tax Rate 20.01 % Income-Tax Act

Corporate Tax Rate 32.45 %

Sub-step 2c: Calculation and comparison of financial indicators (only applicable to Options II and III):

The Internal Rate of Return for the project activity works out to 9.03%. Hence it can be clearly observed that the returns from the project do not exceed the benchmark of 14.25%. Thus the project activity on its own is clearly not a financially viable option and hence the revenue from CDM is essential to make the project activity a financially viable venture.

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

As per Step 2d of the Methodological Tool “Demonstration and assessment of additionality” Version 06.0.0, a sensitivity analysis is to be carried out to show whether the conclusion regarding the financial/economic attractiveness is robust to reasonable variations in the critical assumptions.

Sensitivity Analysis

Guidance Reasoning

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 20 Only variables, including the initial investment cost, that constitute more than 20% of either total project costs or total project revenues should be subjected to reasonable variation (all parameters varied need not necessarily be subjected to both negative and positive variations of the same magnitude), and the results of this variation should be presented in the PDD and be reproducible in the associated spreadsheets.

The following variables were subjected to variation in the sensitivity analysis that was carried out: • Energy Generation • Project Cost • Return on Equity • Operations & Maintenance Cost

As a general point of departure variations in the sensitivity analysis should at least cover a range of +10% and -10%, unless this is not deemed appropriate in the context of the specific project circumstances.

A range of +10% to -10% was considered for all the above variables in the sensitivity analysis.

The results of the sensitivity analysis are detailed below:

Base case 9.03% Comments Variable

Parameter Decrease Increase

10% 10%

Energy Generation

8.95% 9.11% The gross energy generation has been determined based on the analysis of the available hydrological data with a 90% dependable flow. This also in accordance with the guidelines by the Ministry of Power5

However, the extreme case of an increase of 10% in PLF has also been considered for the analysis.

that considers a 90% dependable year for Tariff determination of generating companies.

Project Cost 8.87% 9.16% The project cost primarily comprises of the cost of building, civil works and plant and machinery. The cost of plant and machinery is unlikely to experience a downward trend owing to the rising prices of Iron and Steel. Further, the cost of land and buildings is also only expected to increase due to the rising inflation in the country. Thus, taking these factors into consideration, a decrease in capital cost is not envisaged.

Return on Equity

8.67% 9.38% The Return on Equity has been fixed at 15.5% as per the Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2009. Variation in return on equity does not result in the IRR exceeding the benchmark.

O&M Cost 9.03% 9.03% The variation in the cost of Operations and Maintenance does not affect the Project IRR by a

5 http://www.powermin.nic.in/acts_notification/tariffnotification_generatingcompanies.htm

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 21 Base case 9.03%

Comments Variable Parameter

Decrease Increase 10% 10%

significant margin due to its low value.

Hence it can be clearly observed that even when the project parameters turn in favour of the project proponent, even then the returns from the project do not exceed the benchmark. Thus the project activity on its own is clearly not a financially viable option. The revenue from CDM would make the project activity a financially viable venture.

Step 3: Barrier analysis

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.

Sub-step 3a: Identify barriers that would prevent the implementation of the proposed CDM project activity:

Establish that there are realistic and credible barriers that would prevent the implementation of the proposed project activity from being carried out if the project activity was not registered as a CDM activity.

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

Step 2 has been used to demonstrate additionality of the project.

Step 4: Common practice analysis

Identify and discuss the existing common practice through the following Sub-steps:

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

Hydro power is the richest renewable and environmentally benign source of energy. Hydro power stations have the inherent ability for instantaneous starting, stopping and managing load variations which help in improving the reliability of the power system. They have a life extending up to 35-40 years and help in conserving fossil fuels. However, despite all these advantages, the hydro share has declined from 44 percent in 1970 to 25 percent in 2008. As per the assessment of hydroelectric potential carried out by CEA, the hydro potential in the country has been estimated about 150,000 MW. The hydro installed capacity at the end of the 10th Five Year Plan (2002-2007) was 34,654 MW which is only about 23% of the potential available in the country.

There are several technical and financial constraints as a result of which hydro power projects have not been able to develop up to their potential in the region. These mainly include inadequate geological investigations, outdated tunneling methods, non-availability of long term financing and viability of tariff. Most hydro projects are adversely affected by geological surprises especially during tunneling in the relatively young Himalayan Mountains. Other problems are the inaccessible and remote locations of sites, delays in land acquisitions and in resettlement of project affected families that slow down the pace of hydro power development I the country.

According to Methodological Tool “Demonstration and assessment of additionality” Version 06.0.0 projects are considered similar if they are in the same country/region and/or rely on a broadly similar

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 22 technology, are of a similar scale, and take place in a comparable environment with respect to regulatory framework, investment climate, access to technology, access to financing, etc.”

The list of operational hydro power projects in Himachal Pradesh are shown below6:

S. No. Name of Station Installed Capacity

(MW) Developer

1 Giri Bata 60.00 State Sector 2 Bassi 60.00 State Sector 3 Sanjay 120.00 State Sector 4 Andhra 16.95 State Sector 5 Binwa 6.00 State Sector 6 Thirot 4.50 State Sector 7 Baner 12.00 State Sector 8 Gaj 10.50 State Sector 9 Ghanvi 22.50 State Sector

10 Largi 126.00 State Sector 11 Khauli 12.00 State Sector 12 Gumma 3.00 State Sector 13 Rukti 1.50 State Sector 14 Chaba 1.75 State Sector 15 Rongtong 2.00 State Sector 16 Nogli 2.50 State Sector 17 Bhaba 120.00 State Sector 18 Ganvi 22.50 State Sector 19 Binwa 6.00 State Sector 20 Gaj 10.50 State Sector 21 Sal-II 2.00 State Sector 22 Holi 3.00 State Sector 23 Bhuri Singh P/House 0.45 State Sector 24 Killar 0.30 State Sector 25 Yamuna Project (HP Share) 131.57 Central/Joint Sector 26 Bhakra 1325.00 Central/Joint Sector 27 Nathpa Jhakri 1500.00 Central/Joint Sector 28 Baira Siul 198.00 Central/Joint Sector 29 Chamera-I 540.00 Central/Joint Sector 30 Chamera-II 300.00 Central/Joint Sector 31 Uhl-I (Shanan) 110.00 Central/Joint Sector 32 Pong Dam 396.00 Central/Joint Sector 33 B.S.L. 990.00 Central/Joint Sector 34 Dehar 5.00 Astha Projects (India) Ltd. 35 Maujhi 4.50 Dharamshala Hydro Power Ltd 36 Raskat 0.80 Indusree Power Pvt. Ltd under UNDP GEF 37 Baragran 3.00 K.K.K. Hydro Projects Ltd. 38 Aleo 3.00 Aleo Manali Hydropower Pvt. Ltd

6 http://www.hpseb.com/schemes_which_are_presently_unde.htm and http://www.cea.nic.in/hydro/List%20of%20HE%20Stations%20in%20the%20country.pdf

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 23

S. No. Name of Station Installed Capacity

(MW) Developer

39 Marthi 5.00 SAI Engineering Foundation 40 Titang 0.90 Sai Engineering Foundation under UNDP GEF 41 Solang 1.00 A Power Himalayas Ltd. under UNDP GEF 42 Lingti 0.40 HIMURJA 43 Ching 1.00 Hateshwari Om Power Enterprises (P) Ltd. 44 Manal 3.00 Himalayan Crest Power Ltd 45 Manjhal 1.00 Virender Dogra Power Projects (P) Ltd. 46 Salag 0.15 Dhauladhar Hydro System Pvt. Ltd 47 Jiwa-Kothiari 1.00 Chevron Hydel Pvt. Ltd. 48 Taraila 5.00 Ginni Global Ltd. 49 Brahm- Ganga 5.00 Harisons Hydel Construction Co. Pvt. Ltd. 50 Sahu 5.00 Him Kailash Hydro Power (P) Ltd. 51 Upper Awa 5.00 Astha Projects (India) Ltd. 52 Sarbari 4.50 DSL Hydrowatt Ltd. 53 Toss 5.00 SAI Engineering Foundation 54 Chandni 3.00 Himalayan Crest Power Ltd. 55 Iqu-II 2.50 Vamshi Hydro Energies (P) Ltd. 56 Shyang 3.00 SAI Engineering Foundation 57 Taraila-II 5.00 Cimaron Constructions (P) Ltd. 58 Malana 86.00 Malana Power Company Ltd 59 Baspa-II 300.00 Jaiprakash Hydro Power Ltd. 60 Patikari 16.00 Patikari Power Private Ltd 61 Allain Duhangan 192.00 Allain Duhangan Hydro Power Ltd.

Projects are considered similar only if they take place in a comparable environment with respect to regulatory framework, investment climate, access to technology, access to financing, etc. From the above list of projects in Himachal Pradesh it can be observed that most of the projects have been developed by state-owned and centrally-owned entities. Projects that are developed by government-owned corporations or state-owned enterprises have been developed in a different investment climate. Such projects have public policy objectives and are established to pursue purely non-financial objectives. They have no need or goal of satisfying shareholders with returns on their investment through share price increase or dividends. Hence these projects are not similar to the project activity under consideration.

Since, the proposed project activity is a large scale run-of-the-river hydroelectric project activity with installed capacity of 180 MW, a similar project activity would be one which is large scale as well as within a range of +/- 50%7

There are 28 commissioned projects being operated by privately owned entities. Out of these, only one project falls in the range of +/- 50% (90 – 270 MW) and belongs to the large scale category i.e. 192 MW Hydropower project by Allain Duhangan Hydro Power Ltd. Since this project is also pursuing additional

of the capacity of the proposed project activity (this range is being considered appropriate in reference to the guidance provided by the CDM EB in the request for review of a run of the river hydro power project in India) set up by a private investor in Himachal Pradesh and under operation at the time when the decision to proceed with the project activity was undertaken.

7 http://cdm.unfccc.int/Projects/DB/DNV-CUK1218186379.41/ReviewInitialComments/N0ARGQ9PKPD7PQCX0ZO7XCHG0RP1XP

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 24 funding under CDM8

From the above statistics, it can be clearly inferred that privately owned plants with capacity similar to the project activity are not operational in Himachal Pradesh. Hence, it can be concluded that similar activities have not diffused in the region and thus the project activity it is not a common practice.

, it shows that there are no similar projects in the region that have been developed without any additional funding.

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

There are no similar options occurring in the state of Himachal Pradesh. Hence, in accordance with the Additionality Tool, sub-steps 4a and 4b are satisfied, i.e. similar activities cannot be observed in the state of Himachal Pradesh and the proposed project activity is additional.

B.6. Emission reductions: B.6.1. Explanation of methodological choices:

Project activity emissions

According to the chosen baseline methodology ACM0002 Version 12.2.0, project emissions are accounted for as follows:

yHP,yGP,yFF,y PEPEPEPE ++=

Where: PE = y Project emissions in year y (tCO2PE

e/yr) = FF,y Project emissions from fossil fuel consumption in year y (tCO2

PE/yr)

= GP,y Project emissions from the operation of geothermal power plants due to the release of non-condensable gases in year y (tCO2

PEe/yr)

= HP,y Project emissions from water reservoirs of hydro power plants in year y (tCO2

Since, the project activity is a run-of-the-river hydropower project, there are no project emissions from fossil fuel consumption or release of non-condensable gases.

e/yr)

Emissions from water reservoirs of hydro power plants (PEHP,y)

Since the hydro power project activity results in a new single reservoir, the CH4 and CO2 emissions from the reservoir are estimated as follows:

(a) If the power density of the single or multiple reservoirs (PD) is greater than 4 W/m2 and less than or equal to 10 W/m2

1000PE Re

yHP,ys TEGEF ⋅

=

:

Where:

PE = HP,y Project emissions from water reservoirs (tCO2EFRes

e/yr) = Default emission factor for emissions from reservoirs of hydro power plants in year y

(kgCO2TEGy

e/MWh) = Total electricity produced by the project activity, including the electricity supplied to

the grid and the electricity supplied to internal loads, in year y (MWh)

8 http://cdm.unfccc.int/Projects/DB/DNV-CUK1169040011.34

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 25 (b) If the power density of the project activity (PD) is greater than 10 W/m2

0 PE yHP, =

:

The power density of the project activity (PD) is calculated as follows:

BLPJ

BLPJ

AACapCapPD

−−

=

Where:

PD = Power density of the project activity (W/m2

CapPJ )

= Installed capacity of the hydro power plant after the implementation of the project activity (W)

CapBL = Installed capacity of the hydro power plant before the implementation of the project activity (W). For new hydro power plants, this value is zero

APJ = Area of the single or multiple reservoirs measured in the surface of the water, after the implementation of the project activity, when the reservoir is full (m2

ABL )

= Area of the single or multiple reservoirs measured in the surface of the water, before the implementation of the project activity, when the reservoir is full (m2

Installed capacity of the hydro power plant after the implementation of the project activity (CapPJ) = 180 MW = 180,000,000 W

). For new reservoirs, this value is zero

Installed capacity of the hydro power plant before the implementation of the project activity (CapBL) = 0 W

Area of the reservoir measured in the surface of the water, after the implementation of the project activity, when the reservoir is full (APJ) = 16.5 hectare = 165,000 m2

Area of the reservoir measured in the surface of the water, before the implementation of the project activity, when the reservoir is full (ABL) = 0 m2

Power density of the project activity = 091,1000,165

000,000,180= W/m2 which is greater than 10 W/m2.

Hence, 0, == yyHP PEPE

Baseline Emissions

Baseline emissions include only CO2 emissions from electricity generation in fossil fuel fired power plants that are displaced due to the project activity. The methodology assumes that all project electricity generation above baseline levels would have been generated by existing grid-connected power plants and the addition of new grid-connected power plants. The baseline emissions are to be calculated as follows:

BEy = EGPJ,y . EFgrid,CM, y Where:

BEy = Baseline emissions in year y (tCO2/yr) EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result of

the implementation of the CDM project activity in year y (MWh/yr) EFgrid,CM,y = Combined margin CO2 emission factor for grid connected power generation in year y

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 26

calculated using the latest version of the “Tool to calculate the emission factor for an electricity system”

Calculation of EGPJ,y

(a) Greenfield renewable energy power plants

Since the project activity is the installation of a new grid-connected renewable power plant/unit at a site where no renewable power plant was operated prior to the implementation of the project activity, therefore:

EGPJ,y = EGfacility,y

Where:

EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result of the implementation of the CDM project activity in year y (MWh/yr)

EGfacility,y = Quantity of net electricity generation supplied by the project plant/unit to the grid in year y (MWh/yr)

Calculation of EFgrid,CM, y

In accordance with the “Tool to calculate the emission factor for an electricity system” Version 02.2.1, combined margin CO2 emission factor for grid connected power generation is calculated stepwise as below:

The data used for the calculation of the baseline emission factor was obtained from the baseline calculations published by the CEA, CO2 Baseline Database for the Indian Power Sector – Version 6.09

Step 1: Identify the relevant electricity systems

, which uses ACM0002. The relevant parts of the calculations are referenced in the methodology outline below, with detailed data provided in Annex 3. A complete explanation of the assumptions employed by the CEA can be obtained from the CO2 Baseline Database for the Indian Power Sector - Version 6.0.

For the purpose of determining the electricity emission factors, a project electricity system and connected electricity systems are to be defined. The Indian power system is divided into two regional grids, namely NEWNE and Southern grid. Each grid covers several states. Power generation and supply within the regional grid is managed by Regional Load Dispatch Centre (RLDC). The Regional Power Committees (RPCs) provide a common platform for discussion and solution to the regional problems relating to the grid.

Each state in a regional grid meets their demand with their own generation facilities and also with allocation from power plants owned by the central sector such as NTPC and NHPC etc. Specific quotas are allocated to each state from the central sector power plants. Depending on the demand and generation, there are electricity exports and imports between states in the regional grid. There are also electricity transfers between regional grids, and small exchanges in the form of cross-border imports and exports (e.g. from Bhutan). Recently, the Indian regional grids have started to work in synchronous mode, i.e. at same frequency.

States connected to different regional grids

Regional grid

NEWNE Grid Southern grid Northern Eastern Western North

Eastern

9 http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 27

States

Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand

Bihar, Orissa, West Bengal, Jharkhand and Sikkim

Gujarat, Madhya Pradesh, Maharashtra, Goa and Chattisgarh

Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura

Andhra Pradesh, Karnataka, Kerala and Tamil Nadu

Union Territories

Delhi and Chandigarh

Andaman-Nicobar

Daman & Diu, Dadar & Nagar Haveli

- Pondicherry, Lakshadweep

The NEWNE grid constitutes several states and union territories including Himachal Pradesh10

Since the CDM project would be supplying electricity to the NEWNE grid, it is preferable to take this grid as the project boundary rather than the state boundary. It also minimizes the effect of interstate power transactions, which are dynamic and vary widely. Considering free flow of electricity among the member states and the union territory, the entire NEWNE grid is considered as a single entity for estimation of baseline.

. These states under the regional grid have their own power generating stations as well as centrally shared power-generating stations. While the power generated by own generating stations is fully owned and consumed through the respective state’s grid systems, the power generated by central generating stations is shared by more than one state depending on their allocated share. Presently the share from central generating stations is a small portion of their own generation.

Step 2: Choose whether to include off-grid power plants in the project electricity system (optional)

Project participants may choose between the following two options to calculate the operating margin and build margin emission factor:

Option I: Only grid power plants are included in the calculation. Option II: Both grid power plants and off-grid power plants are included in the calculation.

The project participant has chosen Option I for the calculation of the operating and build margin emission factor i.e. off-grid power plants are not being included in the calculation.

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

The calculation of the operating margin emission factor (EFgrid,OM,y) is based on one of the following methods: (a) Simple OM, or (b) Simple adjusted OM, or (c) Dispatch data analysis OM, or (d) Average OM.

For the proposed project activity, simple OM method (option a) has been chosen to calculate the operating margin emission factor (EFgrid, OM, y). However, the simple OM method can only be used if low-cost/must-run resources constitute less than 50% of total grid generation in: 1) average of the five most recent years, or 2) based on long-term averages for hydroelectricity production. The low-cost/must-run resources are defined as power plants with low marginal generation costs or power plants that are dispatched independently of the daily or seasonal load of the grid. They typically include hydro, geothermal, wind, low-cost biomass, nuclear and solar generation. 10 http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver4.pdf

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 28 Table: Share of Low Cost / Must-Run (% of Net Generation)

2005-06 2006-07 2007-08 2008-09 2009-10 NEWNE 18.0% 18.5% 19.0% 17.4% 15.9% South 27.0% 28.3% 27.1% 22.8% 20.6% India 20.1% 20.9% 21.0% 18.7% 17.1%

Ref: CO2 Baseline Database for the Indian Power Sector – CEA, Version 0611

Percentage of total grid generation by low cost/must run plants (on the basis of average of five most recent years) = 17.7 %

The calculation above shows that the generation from low-cost/must-run resources constitutes less than 50% of total grid generation, hence usage of the Simple OM method in the project case is justified.

The Simple OM emission factor can be calculated using either of the two following data vintages for years(s) y:

- Ex ante option: If the ex-ante option is chosen, the emission factor is determined once at the validation stage, thus no monitoring and recalculation of the emissions factor during the crediting period is required. For grid power plants, use a 3-year generation-weighted average, based on the most recent data available at the time of submission of the CDM-PDD to the DOE for validation. For off-grid power plants, use a single calendar year within the 5 most recent calendar years prior to the time of submission of the CDM-PDD for validation.

or - Ex post option: If the ex post option is chosen, the emission factor is determined for the year in

which the project activity displaces grid electricity, requiring the emissions factor to be updated annually during monitoring. If the data required to calculate the emission factor for year y is usually only available later than six months after the end of year y, alternatively the emission factor of the previous year (y-1) may be used. If the data is usually only available 18 months after the end of year y, the emission factor of the year proceeding the previous year (y-2) may be used. The same data vintage (y, y-1 or y-2) should be used throughout all crediting periods.

The project proponent chooses the Ex ante option for estimating the simple OM emission factor wherein as described above a 3-year generation-weighted average, based on the most recent data available at the time of submission of the CDM-PDD to the DOE for validation, without requirement to monitor and recalculate the emissions factor during the crediting period will be undertaken.

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

The simple OM method has been selected as justified above. The simple OM emission factor is calculated based on the net electricity generation of each power unit and a CO2 emission factor for each power unit, as follows:

∑∑ ⋅⋅

=

mym

miyiCOyiymi

ysimpleOMgrid EG

EFNCVFCEF

,

,,,2,,,

,,,

Where: EFgrid,OMsimple,,y = Simple operating margin CO2 emission factor of in year y (tCO2/MWh) FCi,m,y = Amount of fossil fuel type i consumed by power unit m in year y

(Mass or volume unit) 11 http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 29 NCVi,y = Net calorific value (energy content) of fossil fuel type i in year y

(GJ / mass or volume unit) EFCO2,i,y = CO2 emission factor of fossil fuel type i in year y (tCO2/GJ) EGm,y = Net electricity generated and delivered to the grid by power unit m in year y

(MWh) m = All power units serving the grid in year y except low-cost / must-run power units I = All fossil fuel types combusted in power plant / unit m in year y y = Either the three most recent years for which data is available at the time of

submission of the CDM-PDD to the DOE for validation (ex-ante option) or the applicable year during monitoring (ex post option), following the guidance on data vintage in step 2

In India, the Central Electricity Authority (CEA) has estimated the baseline emission factor for the power sector. This data has also been endorsed by the DNA and is the most authentic information available in the public domain. The details of same can be found on CEA website at http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm.

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

In terms of vintage of data, project proponents can choose between one of the following two options:

Option 1: For the first crediting period, calculate the build margin emission factor ex-ante based on the most recent information available on units already built for sample group m at the time of CDM-PDD submission to the DOE for validation. For the second crediting period, the build margin emission factor should be updated based on the most recent information available on units already built at the time of submission of the request for renewal of the crediting period to the DOE. For the third crediting period, the build margin emission factor calculated for the second crediting period should be used. This option does not require monitoring the emission factor during the crediting period.

Option 2: For the first crediting period, the build margin emission factor shall be updated annually, ex-post, including those units built up to the year of registration of the project activity or, if information up to the year of registration is not yet available, including those units built up to the latest year for which information is available. For the second crediting period, the build margin emissions factor shall be calculated ex-ante, as described in option 1 above. For the third crediting period, the build margin emission factor calculated for the second crediting period should be used.

The project proponent wishes to choose option 1.

Capacity additions from retrofits of power plants should not be included in the calculation of the build margin emission factor.

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

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

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

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 30

generation of that unit is fully included in the calculation) (SET≥20%) and determine their annual electricity generation (AEGSET-≥20%, in MWh);

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

Identify the date when the power units in SETsample started to supply electricity to the grid. If none of the power units in SETsample started to supply electricity to the grid more than 10 years ago, then use SETsample to calculate the build margin.

In India, the installed capacity and corresponding annual generation from power plants is quite high. The Central Electricity Authority (CEA) has estimated the annual electricity generation from SET≥20% to be larger than the generation from SET5-units. The details of same can be found on CEA website at http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm. Further, none of the power units in SET≥20% started to supply electricity to the grid more than 10 years ago.

Therefore, SETsample is selected as SET≥20% for the estimation of build margin.

The build margin emissions factor is the generation-weighted average emission factor (tCO2/MWh) of all power units m during the most recent year y for which power generation data is available, calculated as follows:

∑∑ ⋅

=

mym

ymELm

ym

yBMgrid EG

EFEGEF

,

,,,

,,

Where:

EFgrid,BM, y = Build margin CO2 emission factor in year y (tCO2 / MWh)

EGm,y = Net quantity of electricity generated and delivered to the grid by power unit m in year y (MWh)

EFEL, m, y = CO2 emission factor of power unit m in year y (tCO2 / MWh) M = Power units included in the build margin Y = Most recent historical year for which electricity generation data is available

Calculations for the Build Margin emission factor EFgrid, BM, y is based on the most recent information available on the plants already built for sample group m at the time of PDD submission. The sample group m consists of the power plant capacity additions in the electricity system that comprise 20 % of the system generation and that have been built most recently (SET≥20%).

Step 6: Calculate the combined margin emissions factor

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

(a) Weighted average CM; or

(b) Simplified CM.

The weighted average CM method (option A) should be used as the preferred option.

The combined margin emissions factor is calculated as follows:

BMyBMgridOMyOMgridCO wEFwEFEF ×+×= ,,,,2

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 31 Where:

EFgrid,BM,y = Build margin CO2 emission factor in year y (tCO2/MWh) EFgrid,OM,y = Operating margin CO2 emission factor in year y (tCO2/MWh) wOM = Weighting of operating margin emissions factor (%) wBM = Weighting of build margin emissions factor (%) The following default values should be used for wOM and wBM:

- Wind and solar power generation project activities: wOM = 0.75 and wBM = 0.25 (owing to their intermittent and non-dispatchable nature) for the first crediting period and for subsequent crediting periods.

- All other projects: wOM = 0.5 and wBM = 0.5 for the first crediting period, and wOM = 0.25 and wBM = 0.75 for the second and third crediting period, unless otherwise specified in the approved methodology which refers to this tool.

As mentioned before, the CEA has calculated the baseline emission factors for various regional grids in India according to the formulas specified above. As this is the most authentic information available in the public domain. The baseline emission factor used in the calculation of baseline emissions for the proposed project activity is being referred from the same for transparency and conservativeness12

Leakage

.

According to ACM0002 Version 12.2.0, no leakage emissions are considered. The main emissions potentially giving rise to leakage in the context of electric sector projects are emissions arising due to activities such as power plant construction and upstream emissions from fossil fuel use (e.g. extraction, processing, transport). These emissions sources are neglected.

Emission Reductions

Emission reductions are calculated as follows:

ERy = BEy - PEy

Where:

ERy = Emission reductions in year y (t CO2e/yr) BEy = Baseline emissions in year y (t CO2/yr) PEy = Project emissions in year y (t CO2e/yr)

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

Data / Parameter: EFgrid,OM,y Data unit: tCO2e/MWh Description: Operating Margin emission factor for NEWNE grid Source of data used: Referred from CO2 Baseline Database for the Indian Power Sector prepared by

Central Electricity Authority Version 6.0. Value applied: 0.9943 Justification of the choice of data or description of

Calculated it as CEA sourced data 3 years vintage data (2007-08, 2008-09 and 2009-10) and option of ex ante calculation based on Simple Operating Margin Method. Computed once during PDD finalization.

12 http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 32 measurement methods and procedures actually applied :

Operating Margin Estimation for NEWNE Grid (tCO2 / GWh)

Year Operating Margin (tCO2e/GWh)

Net Generation (GWh)

2007-08 999.9 401,642 2008-09 1006.6 421,803 2009-10 977.7 458,043

Generation Weighted Average OM 0.9942 tCO2e / MWh

Any comment: This value is determined and fixed ex-ante. Data / Parameter: EFgrid,BM,y Data unit: tCO2e/MWh Description: Build Margin emission factor for NEWNE grid Source of data used: Referred from CO2 Baseline Database for the Indian Power Sector prepared by

Central Electricity Authority Version 6.0. Value applied: 0.8123 tCO2e/MWh Justification of the choice of data or description of measurement methods and procedures actually applied :

Calculated as per CEA sourced data for the year 2009-10. The build margin is calculated in this database as the average emissions intensity of the 20% most recent capacity additions in the grid based on net generation and option of ex ante calculation. Computed once during PDD finalization.

Any comment: This value is determined and fixed ex-ante. Data / Parameter: EFgrid,CM,y Data unit: tCO2e/MWh Description: Combined Margin CO2 emission factor for NEWNE grid Source of data used: Estimated figure based on 50% of OM and 50% of BM values Value applied: 0.9032 tCO2e/MWh Justification of the choice of data or description of measurement methods and procedures actually applied :

CEA has calculated it as per ACM0002 with 3 years vintage data and option of ex ante calculation based on 50% of OM and 50% of BM values approach. Computed once during PDD finalization.

Combined Margin Estimation for NEWNE Grid (tCO2e / MWh) OM (EFgrid, OM,y) 0.9942 BM (EFgrid, BM, y) 0.8123 Combined Margin (EFgrid, CM,y) 0.9032

Any comment: This value is determined and fixed ex-ante. Data / Parameter: CapData unit:

BL W

Description: Installed capacity of the hydro power plant before the implementation of the project activity.

Source of data: Project site Value applied: 0

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 33 Justification of the choice of data or description of measurement methods and procedures actually applied :

As per ACM0002 methodology, for new reservoirs, this value is zero.

Any comment: - Data / Parameter: AData unit:

BL m

Description:

2 0

Source of data: Project site Justification of the choice of data or description of measurement methods and procedures actually applied :

As per ACM0002 methodology, for new single reservoirs, this value is zero.

Any comment: -

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

Project activity emissions

According to the chosen baseline methodology ACM0002 Version 12.2.0, project emissions are accounted for as follows:

yHP,yGP,yFF,y PEPEPEPE ++=

Where: PE = y Project emissions in year y (tCO2PE

e/yr) = FF,y Project emissions from fossil fuel consumption in year y (tCO2

PE/yr)

= GP,y Project emissions from the operation of geothermal power plants due to the release of non-condensable gases in year y (tCO2

PEe/yr)

= HP,y Project emissions from water reservoirs of hydro power plants in year y (tCO2

Since, the project activity is a run-of-the-river hydropower project, there are no project emissions from fossil fuel consumption or release of non-condensable gases.

e/yr)

Emissions from water reservoirs of hydro power plants (PEHP,y)

Since the hydro power project activity results in a new reservoir, the CH4 and CO2 emissions from the reservoir are estimated as follows:

Installed capacity of the hydro power plant after the implementation of the project activity (CapPJ) = 180 MW = 180,000,000 W

Installed capacity of the hydro power plant before the implementation of the project activity (CapBL) = 0 W

Area of the reservoir measured in the surface of the water, after the implementation of the project activity, when the reservoir is full (APJ) = 16.5 hectare = 165,000 m2

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 34 Area of the reservoir measured in the surface of the water, before the implementation of the project activity, when the reservoir is full (ABL) = 0 m2

Power density of the project activity = 091,1000,165

000,000,180= W/m2 which is greater than 10 W/m2.

Hence, 0, == yyHP PEPE

Baseline emissions

Baseline emissions (BEy) are calculated as follows:

Baseline Emission factor (NEWNE Grid) EFy:

The Baseline Emission Factor for the NEWNE Grid has been referred from : The CO2 Baseline Database for the Indian Power Sector Central Electricity Authority (CEA) Version 6.0

0.9032 tCO2/MWh

Net electricity generation (EGPJ,y)

Quantity of net electricity generation that is produced and fed into the grid as a result of the implementation of the CDM project activity in year y

761,696 MWh/yr

Baseline emissions (BEy)

BEy = EFy x EGy = 0.9032 * 761,696 = 687,964 tCO2e/yr

Emission Reductions: ERy = BEy - PEy 687,964 tCO2e/yr

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)

25 Dec 2016 – 24 Dec 2017 0 687,964 0 687,964

25 Dec 2017 – 24 Dec 2018 0 687,964 0 687,964

25 Dec 2018 – 24 Dec 2019 0 687,964 0 687,964

25 Dec 2019 – 24 Dec 2020 0 687,964 0 687,964

25 Dec 2020 – 24 Dec 2021 0 687,964 0 687,964

25 Dec 2021 – 24 Dec 2022 0 687,964 0 687,964

25 Dec 2022 – 24 Dec 2023 0 687,964 0 687,964

Total (tonnes of CO2 e) 0 4,815,747 0 4,815,747

B.7. Application of the monitoring methodology and description of the monitoring plan:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 35 The monitoring methodology to be used is Approved consolidated baseline and monitoring methodology ACM 0002 (Version 12.2.0, EB 65).

B.7.1 Data and parameters monitored: Data / Parameter: EGfacility,y Data unit: MWh/yr Description: Quantity of net electricity generation supplied by the project plant to the grid in

year y Source of data to be used:

Monthly bills raised by GMR Bajoli Holi Hydropower Private Limited

Value of data applied for the purpose of calculating expected emission reductions in section B.5

761,696

Description of measurement methods and procedures to be applied:

The net saleable electricity would be calculated from the joint meter readings of Main and Check meters installed at the interconnection point every month and would be recorded. Based on the data recorded of net electricity exported to the grid, i.e. difference of the electricity exported to and imported from the grid, monthly bills would be raised by GMR Bajoli Holi Hydropower Private Limited for payments against net saleable electricity. The same shall be considered as net electricity generated by the project activity for calculation of emission reductions.

QA/QC procedures to be applied:

The accuracy class of meters would be Class 0.2. The meters would be tested, calibrated and certified by a recognised Testing House/Laboratory, once during every year as per provisions of Central Electricity Authority Installation and Operation of Meters 2006)13

Any comment: to ensure accuracy.

The archived data will be kept for 2 years beyond the Crediting Period (CP) Data / Parameter: EGexport,y Data unit: MWh/yr Description: Quantity of electricity exported by the project plant to the grid in year y Source of data to be used:

Monthly bills raised by GMR Bajoli Holi Hydropower Private Limited

Value of data applied for the purpose of calculating expected emission reductions in section B.5

761,696

Description of measurement methods and procedures to be applied:

The electricity exported would be measured from the joint meter readings of Main and Check meters installed at the interconnection point every month and would be recorded. Based on the data recorded, monthly bills would be raised by GMR Bajoli Holi Hydropower Private Limited for payments. The same shall be used for calculation of emission reductions.

QA/QC procedures to be applied:

The accuracy class of meters would be Class 0.2. The meters would be tested, calibrated and certified by a recognised Testing House/Laboratory, once during

13 http://www.cea.nic.in/reports/regulation/meter_reg.pdf

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 36

every year as per provisions of Central Electricity Authority Installation and Operation of Meters 2006)14

Any comment: to ensure accuracy.

For the purpose of ex-ante estimation of this parameter, the quantity of electricity exported by the project activity to the grid has been determined by consideration of 1.0 % losses towards auxiliary consumption and transformation losses over the gross generation anticipated in the Detailed Project Report. The archived data will be kept for 2 years beyond the Crediting Period (CP)

Data / Parameter: EGimport,y Data unit: MWh/yr Description: Quantity of electricity imported by the project plant to the grid in year y Source of data to be used:

Monthly bills raised by GMR Bajoli Holi Hydropower Private Limited

Value of data applied for the purpose of calculating expected emission reductions in section B.5

0

Description of measurement methods and procedures to be applied:

The electricity imported would be calculated from the joint meter readings of Main and Check meters installed at the interconnection point every month and would be recorded. Based on the data recorded, monthly bills would be raised by GMR Bajoli Holi Hydropower Private Limited for payments. The same shall be considered for calculation of emission reductions.

QA/QC procedures to be applied:

The accuracy class of meters would be Class 0.2. The meters would be tested, calibrated and certified by a recognised Testing House/Laboratory, once during every year as per provisions of Central Electricity Authority Installation and Operation of Meters 2006)15

Any comment: to ensure accuracy.

For the purpose of ex-ante estimation of this parameter, no electricity import by the project activity has been considered. The archived data will be kept for 2 years beyond the Crediting Period (CP)

Data / Parameter: CapData unit:

PJ W

Description: Installed capacity of the hydro power plant after the implementation of the project activity

Source of data to be used:

Project site

Value of data applied for the purpose of calculating expected emission reductions in section B.5

180,000,000

Description of measurement methods and procedures to be

Name plate capacity of generating sets installed in project activity would be checked on an annual basis.

14 http://www.cea.nic.in/reports/regulation/meter_reg.pdf 15 http://www.cea.nic.in/reports/regulation/meter_reg.pdf

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 37 applied: QA/QC procedures to be applied:

Installed capacity would be cross-checked from the technical specifications of generating sets installed in project activity.

Any comment: - Data / Parameter: AData unit:

PJ m

Description:

2 Area of the project reservoir measured in the surface of the water, after the implementation of the project activity, when the reservoir is full

Source of data to be used:

Project site

Value of data applied for the purpose of calculating expected emission reductions in section B.5

165,000

Description of measurement methods and procedures to be applied:

Area of the reservoir in the surface of the water, when it is full would be measured from topographical surveys, maps, satellite pictures, etc.

QA/QC procedures to be applied:

The area of the full reservoir in the surface of the water is not likely to exceed the measurements in the survey. However, measurements would be carried out on an annual basis to compute the power density.

Any comment: -

B.7.2. Description of the monitoring plan:

The monitoring plan is being devised as per approved consolidated monitoring methodology ACM0002 Version 12.2.0 - “Consolidated baseline methodology for grid-connected electricity generation from renewable sources”.

The net saleable electricity to the grid would be monitored by joint meter readings of Main and Check meters installed at the interconnection point every month and would be recorded. Based on the data recorded monthly bills would be raised to for payments against net saleable electricity supplied. The reading of the Main Meter shall form the basis for the energy account. If in any month the readings of the Main Meter is found to be doubtful or beyond the permissible deviation, it shall be checked and calibrated in the presence of authorized representatives of both the parties. In this scenario, if the Check meter is found to be accurate then its reading shall be used for billing/emission reduction calculation purpose.

The total electricity produced by the project activity, including the electricity supplied to the grid and the electricity supplied to internal loads would be measured on a daily basis. This data can be used for cross checking purposes of the net electricity supplied by the project activity to the grid after accounting for various losses towards transformation, transmission and auxiliary consumption. The Main and Check meters installed at the interconnection point to measure net electricity supplied by the project activity to the grid (EGy) would be of accuracy class 0.2. The energy meters would be tested, calibrated and certified by a recognised Testing House/Laboratory as per the provisions of Central Electricity Authority Installation and Operation of Meters 2006), once during every year.

A CDM project team would be constituted with participation from relevant departments. People will be trained on CDM concept and monitoring plan. This team will be responsible for data collection and archiving. This team will meet periodically to review CDM project activity check data collected,

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 38 emissions reduced etc. On a weekly basis, the reports will be checked and discussed by the seniors CDM team members/managers. In case of any irregularity observed by any of the CDM team member, it is informed to the concerned person for necessary actions. On monthly basis, these reports are forwarded at the management level.

The operation and management structure implemented by the project proponent for the purpose of the project activity is illustrated below:

Operation & Management Structure

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):

The application of the baseline and monitoring methodology has been applied by:

Date: 14/10/2011

Name and contact of Responsible Person:

Vivek Sadevra Associate Manger Climate Change & Environment GMR Group 2nd Floor, Old Udaan Bhawan Terminal 1IG Domestic Airport, Palam New Delhi 110 037

Senior Management of GBHHPL

(Associate Vice- President/General

Manager)

Site Supervisor (Associate General

Manager)

Support Staff

• Implementation of appropriate corrective measures in case any discrepancies are identified in the reported parameters.

• Review of monthly reports. • Ensuring calibration of the monitoring equipments

as and when required

• Reviewing the monthly and annual generation statistics.

• Evaluating the GHG performance of the project activity.

• Identify opportunities for further improvement.

• Monitoring and reporting the GHG performance related parameters following the guidance provided in the Project Design Document

• Preparation of the monthly and annual generation statistics.

• Reporting of any discrepancies identified in the reporting parameters

• Ensuring calibration of the monitoring equipments as and when required.

Support Staff

CDM Team Responsibilities

Shift Incharge (Manager)

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 39 Tel No: +91-11-47165725 Cell No: +91-9818200262 Email: Vivek.Sadevra@gmrgroup.in

Vivek Sadevra is not a project participant listed in Annex 1.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 40 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:

31 March 2012

According to Paragraph 67 of the Report on 41st meeting of the Executive Board of the Clean Development Mechanism, “the start date shall be considered to be the date on which the project participant has committed to expenditures related to the implementation or related to the construction of the project activity. This, for example, can be the date on which contracts have been signed for equipment or construction/operation services required for the project activity.” However, since the project is in its initial stages and no major commitment of expenditures has been made yet, the start date of the project activity has been considered as the proposed date of award of contract for Civil Works for the project activity.

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

35 years 0 months

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

The Project Activity uses a Renewable Crediting period

C.2.1. Renewable crediting period: C.2.1.1. Starting date of the first crediting period:

25.12.2016

C.2.1.2. Length of the first crediting period:

07 years 0 months

C.2.2. Fixed crediting period: C.2.2.1. Starting date:

Not applicable

C.2.2.2. Length:

Not applicable

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 41

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

As per the notification S.O. 1533 (E) dated 14th September, 2006 of the Ministry of Environment and Forests (MoEF), Government of India16

The major impacts of the project activity are as follows:

regarding the requirement of Environmental Clearance, hydro power projects with an installed capacity of more than 25 MW require an Environmental Clearance.

Impacts during Construction

Impacts due to migration of Construction Workers

Immigration of a large population for a long duration in remote area can cause serious impact on various environmental resources including socio economic profile of local population. The congregation of large number of construction workers during the peak construction phase is likely to create problems of sewage disposal, solid waste management, tree cutting to meet fuel requirement, etc. Appropriate mitigating measures would be implemented to minimize such impacts.

Impacts due to Construction of Project Structure

Excavation of the head race tunnel up to the Power House complex will involve movement of vehicles, use of excavating equipment, explosives and other construction machinery. A primary impact of this construction will be placement of spoils removed from the tunnel. The clearing of the area and muck disposal will be source of impact. Most of the muck will be generated from project structure, diversion tunnel, HRT and Power House complex and about 50% of this will be disposed off in muck dumping sites.

Impacts due to Quarrying Operations

Opening of the quarries will cause visual impacts because they remove part of the hills. Other impacts will be the noise generated during aggregate acquisition through explosive and crushing, which could affect wildlife in the area. The quarry sites would lead to disturbance of forest land and some part of private land.

Impacts due to Muck Disposal

A large quantity of muck is expected to be generated as a result of construction of dam, head race tunnel, power house and other appurtenant works. The project proposes to utilize about 25% of the muck to be generated from underground and about 60% of muck from surface work as construction material in various project structures. Therefore, unutilised muck is proposed to be dumped at pre-identified locations as per government directions.

Impacts due to Road Construction

• Loss of forest and vegetation by cutting of trees • Geological disturbance due to blasting, excavation, etc. • Soil erosion as the slope cutting operation disturbs the natural slope and leads to land slips and

landslides. • Air pollution due to dust from debris, road construction machinery, etc. 16 Reference : http://envfor.nic.in/legis/eia/so1533.pdf

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 42 Disturbance to Wildlife

During the construction period, large number of machinery and construction workers shall be mobilized, which may create disturbance to wildlife population in the vicinity of project area. The operation of various equipment’s will generate significant noise, especially during blasting which will have adverse impact on fauna of the area. The noise may scare the fauna and force them to migrate to other areas. The other major impact could be the blasting to be carried out during construction phase. This impact would be mitigated by adopting controlled blasting and strict surveillance regime. This will reduce the noise level and vibrations due to blasting to a great extent.

Forest cover in the vicinity of proposed project working sites and their immediate vicinity is comprised of open to dense forest at places to degraded scrub forest near the habitations. However no major wildlife population is found in the immediate vicinity of these sites.

Impacts on Migratory Routes

The faunal species observed in the project area are not migratory in nature. The proposed submergence area is not the migratory route of wild animals.

Impact on Noise Environment

Sources of noise will be the vehicles and equipment for excavation and stationary equipment, including concrete batch plant located at the construction sites. Other sources of noise will be the use of explosives for blasting purposes for construction activities, drilling machines and quarrying and crushing activities.

Impacts during Operation phase

Impact of reduction in downstream flow

The construction of dam and diversion of water to HRT for power generation would lead to the reduction in water discharge in the river stretch downstream of dam up to tail race discharge from power house. Only 3 villages namely Nayagram, Jhikri and Bajol are located on the downstream of the dam till the proposed Power House within 500m of Ravi river. None of these villages are directly dependent upon Ravi river for their water use requirement. All the villages also use stream water for drinking and agriculture.

Further, as per the MoEF environmental clearances letter dated 24.01.2011; the project proponent shall ensure minimum environmental flow of 20% of the average lean season flow of 90% dependable year for four consecutive leanest months.

Impact on Water Quality

i. Effluent from Project Colony

During the operation phase, due to absence of any large scale construction activity, the cause and source of water pollution will be much different. Since, only a small number of O&M staff will reside in the area in a well-designed colony with sewage treatment plant and other infrastructural facilities, the problems of water pollution due to disposal of sewage are not anticipated. Impacts on Reservoir Water Quality

The flooding of previously forest and agricultural land in the submergence area will increase the availability of nutrients resulting from decomposition of the vegetative matter. Phytoplankton productivity can supersaturate the euphotic zone with oxygen before contributing to the accommodation of organic matter in the sediments. Enrichment of impounded water with organic and inorganic nutrients will be the main water quality problem immediately on commencement of the operation. However, this phenomenon is likely to last for a short duration of few years from the filling up of the reservoir.

ii. Eutrophication Risks

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 43 Another significant impact observed in the reservoir is the problem of eutrophication which occurs mainly due to the disposal of nutrient rich effluents from the agricultural fields. The fertilizer use in the project area is negligible, hence, runoff at present does not contain significant amount of nutrients. Even in the post-project phase, the use of fertilizers in the project catchment area is not expected to rise significantly. Thus, in the post-project phase, problems of eutrophication, which is primarily caused by enrichment of nutrients in water, are not anticipated.

Terrestrial Fauna

During project operation phase, the accessibility to the area will improve due to construction of roads, which in turn may increase human interferences leading to marginal adverse impacts on the terrestrial ecosystem. Since significant wildlife population is not found in the region, no major adverse impacts are anticipated on this account.

Impacts due to damming of river

The damming of river Ravi near village Nayagram will result in creation of 16.5 ha of submergence area. The dam will change the fast flowing river to a quiescent lacustrine environment. The creation of a pond will bring about a number of alterations in physical, abiotic and biotic parameters both in upstream and downstream directions of the proposed dam site. The micro and macro benthic biota is likely to be most severely affected as a result of the proposed project.

The positive impact of the project will be the formation of a water body which can be used for fish stocks on commercial basis to meet the protein requirement of region. The commercial fishing in the proposed reservoir would be successful, provided all tree stumps and other undesirable objects are removed before submergence.

Impacts on migratory fish species

The obstruction created by the dam would hinder the migration of certain commercial species especially Schizothorax sp. These fishes undertake annual migration for feeding and breeding. Therefore, fish migration path may be obstructed due to high dam and fishes are expected to congregate below the dam wall. Under this situation poaching activities may increase in the area.

Most of the species will shift to the section of the river where they find favourable environment for breeding since the dam is 66m high, the construction of fish ladder is not feasible in the proposed dam. However, it is proposed that the artificial seed production in hatchery may be adopted which can be stocked in the river stretches downstream and upstream of the proposed dam.

D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party:

A number of measures are being taken up as a part of Environmental Management Plan to mitigate the environmental impacts of the project activity. A total amount of INR 1,560 million has been allocated and approved by the Ministry of Environment and Forests for this purpose. Some of the important measures under the plan are:

Biodiversity Conservation & Management Plan

Objectives of this plan are as follows:

i. Maintenance of ecological balance through preservation and restoration of wherever it has been disturbed due to project developmental activities,

ii. Conservation and preservation of natural habitats in catchment area

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 44

iii. Rehabilitation of critical species (endangered, rare and threatened species), if any with provisions for in-situ or ex-situ conservation of critical/ important plant/ animal species,

iv. Mitigation and control of project induced biotic and/or abiotic pressures/influences that may affect the natural habitats,

v. Habitat enhancement in project catchment area by taking up afforestation and soil conservation measures,

vi. Creating all round awareness regarding conservation and ensuring people’s participation in the conservation efforts and minimizing man animal conflict.

INR 20.6 million has been allocated towards the Biodiversity Conservation & Management Plan.

Catchment Area Treatment (CAT) Plan The catchment area treatment plan involves:

• Understanding of the erosion characteristics of the terrain and, • Suggesting remedial measures to reduce the erosion rate.

INR 451 million has been allocated towards the Catchment Area Treatment (CAT) Plan.

Solid Wastes Management

Solid waste generated from temporary and permanent colonies in construction as well as operation phase requires special management to dispose off as warranted under the Municipal Solid Wastes (Management and Handling) Rules 2000. For that an efficient waste management system will be put in place to keep the environment of the region clean and healthy.

INR 12 million has been allocated towards Solid Wastes Management.

Muck Disposal Plan

Due to construction of various project components, a large quantity/volume of material (muck) would have to be dug out or excavated. However more than 25% of muck generated from underground works will be utilized for different project construction works. The balance excavated material (muck) will be rehabilitated in preidentified dumping sites. Most of the muck disposal sites have been identified nearer to the muck generation locations in order to minimize mitigation of dust pollution which may occur during transportation.

INR 101.6 million has been allocated towards the Muck Disposal Plan.

Air & Water Hazard Management Plan during construction

During construction phase, the activities like site preparation, approach roads, excavation, drilling, blasting, foundation, tunnelling, deployment of machinery, erection, transportation, dumping will be taken up. Tunnelling and foundation works will involve land excavation, affecting environment by noise and dust pollution. Structural work, deployment of machinery, approach roads construction and erection work will also result in dust, noise pollution and vehicular traffic. Material handling and transportation would also lead to significant increase in air and noise pollution. Muck generation, its transportation and disposal may pollute surface water due to the generation of large quantities of suspended particulate matter. Wastewater from labour camps and colonies may also pollute water bodies in the area.

INR 8.5 million has been allocated towards the Air & Water Hazard Management Plan during construction.

Compensatory Afforestation Plan

The compensatory afforestation is proposed to be taken up on forestland in the denuded or degraded forest areas and also proposed to have avenue plantation along the proposed roads with iron guard fencing

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 45 work around the new plantation with angle iron in the diverted land to maintain the ecological balance of the areas. The estimated cost of Compensatory Afforestation programme shall be INR 24.6 million.

Further, the Hon’ble Supreme Court of India has made it mandatory vide its order dated 28.03.2008 for the user agency to compensate for the diversion of forest land for non‐forest use for developmental activities on the recommendations of Central Empowered Committee (CEC) to make payment of Net Present Value (NPV) of such diverted land so as to utilize this for getting back in the long run which are lost by such diversion. The total cost of NPV for this project has been computed as INR 67.5 million.

Additionally, as part of the process of diversion of the forest land, cutting and felling of trees would be required. These have been duly counted by the Forest Department and a total amount of INR 203.8 million has been allocated as monetary implications for the cost of trees.

Disaster Management Plan

A disaster management plan has been prepared to address all the critical issues related to emergency management in case of dam failure, such as:

• Surveillance and Monitoring Program • Emergency Action Plan • Administrative and Procedural Aspects • Preventive Action • Communication System • Evacuation Plans • Notifications

INR 9.2 million has been allocated towards the Disaster Management Plan.

Rehabilitation & Resettlement Plan

For the development of Bajoli Holi H.E. project land would be acquired for the construction of various project components like dam, reservoir, head race tunnel, surge shaft, penstock, power house and for office and labour colonies, quarrying, magazine, batching plants, muck dumping sites, etc. For this purpose land would be acquired on permanent as well as on temporary lease basis with a major part of it being forest land.

INR 346 million has been allocated towards the Rehabilitation & Resettlement Plan.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 46 SECTION E. Stakeholders’ comments E.1. Brief description how comments by local stakeholders have been invited and compiled: >>

As per the EIA notification 2006 the stakeholders identified in the project activity include the local villagers and the representatives of village governing body in and around the project location. In India, all infrastructure projects require mandatory environment clearance from the MoEF. Apart from a detailed environmental impact assessment of the project, the project requires public consultation at site and approval. A public hearing is required to ensure that the concerns from all stakeholders are properly addressed.

Public Consultation is an open meeting and there is participation of local villagers and all stakeholders, the project participant utilised this opportunity to describe the project in detail in accordance with CDM modalities and procedures.

A notice for the public hearing was issued in local and regional newspapers on 29.09.2010 inviting stakeholders for two consecutive meetings on 30.10.2010 at Nayagram and Holi Villages respectively. The meetings were attended by more than 100 local villagers and stakeholders including government officials and representatives of local governing bodies.

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

The meeting was presided over by Mr. Harvinder Manocha representative of GMR Bajoli Holi who welcomed the gathering and introduced the company and its initiative to local public.

Details of issues raised in Village Holi, near school, Tehsil Bharmour, District Chamba, H.P

Issue raised Response to the issue Preference should be given to the local people in employment especially in the project effected area

The project proponent informed that as per the condition imposed by the State Govt. 70% employment has to be given to the inhabitants of Himachal Pradesh. Employment preference will be given to project affected families informed by the project effected Panchayats & local area and then to other inhabitants of Himachal Pradesh. For security of the project, Home Guards and effected locals will be appointed.

CAT plan and plantation works should be carried out by local panchayats of project effected area

The Deputy Commissioner Chamba suggested that CAT plan and plantation should be carried out through joint management committee of local panchayats under the supervision of forest department.

Details of arrangement proposed for the sewage in colonies and labour camps was inquired about

The project proponents said that they will provide proper treatment and disposal system of sewage and necessary funds proposed in Environmental Management Plan

Upgradation and strengthening of existing PWD road in project area should be carried out

The project proponent informed that they will carry out necessary widening and strengthening for running of traffic, as advised by the Deputy Commissioner, Chamba. They will undertake this work before starting the project components and road will be constructed of NH standard from Holi to

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Dam Site.

Steps to be taken for the upliftment of education health facility & upliftment of women was inquired about.

The project proponent informed that because of the demand of local people and as advised by the Deputy Commissioner, Chamba, the project proponents agreed to bear expenses of 60 students each year in first two years for training in ITI for youths of local affected panchayats and candidates in the office of Deputy Commissioner. Regarding the health facility they informed that they have already started two Ayurvedic Dispensaries in the area and Ambulance for the people of area will be developed soon. As per suggestion of Deputy Commissioner Chamba the representative of project assured that they will provide one MD Medicines and MD Gynaecologist in Holy Hospital for the people of area. The representative of project proponents also informed that the strengthening of existing educational institutes in the project area will be carried under the Corporate Social Responsibility programme.

The people demanded that company should construct Holi Baijnath (Kangra) tunnel and road to village Andarlagam

The project proponents told that they have deposited LADA fund for local development activities, however they will extend all possible help for this.

The demand was raised for the assistance for protection of Village Nayagram from natural landslides occurring in village

The project proponents assured that they will extend all possible help for protection from land slide in village.

Adit 2 in village Gadoh to avoid the damage to village should be made

The project proponents informed that the adit will be aligned in such way that it will not cause any damage to the village

Details of issues raised in town Holi, near Forest Dept. Guest House Bharmour, District Chamba, H.P

Issue raised Response on issues raised Preference should be given to the local people in employment especially to the project effected area

The project proponent said that as per the condition imposed by the State Govt. 70% employment has to be given to the residents of Himachal Pradesh. The employment preference will be given to families followed by project affected Panchayats & local area and then to inhabitants of Himachal Pradesh.

Preference should be given to the local people in construction works to the project affected area

The company will give preference in allotting small works/contracts depending on the skill level to the local people.

The project should be preferably constructed on the right bank of River Ravi as investigated by Hydel Investigation Division of HP State Electricity Board in place of proposed left bank

The proponent of the hydel project informed that after detailed investigation, it has been found that technically the project construction on left bank is suitable. They also assured that construction will be carried out as per approval of Central Electricity Authority/ HP Government HP State Electricity Board

It was inquired that If natural ground water sources are distributed during

The project proponent informed that videography of all natural water sources which are likely to be affected during

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 48 construction activities of the project, then what measures shall be taken by the company?

the construction of the project will be conducted during lean season before the start of work. During the construction if significant variation is observed, the company will compensate/make alternative arrangement for supply of drinking water.

Damages caused due to construction work of project to the houses and orchards were inquired about

The project proponent informed that if any damage is caused to the houses, due to the project construction activities, the project proponent will pay the compensation for the damages. The Deputy Commissioner, Chamba directed the project proponent to conduct the videography of houses in affected areas in the presence of local administration and owner of houses. The base line data on this should be prepared before starting the construction work. The Deputy Commissioner also directed that the Horticulture Department and Project proponents to carry out videography/yield assessment of orchards before starting project work.

Technical training to local youth of project affected areas by the project proponent were inquired about

On the demand of local people and as advised by the Deputy Commissioner, Chamba project proponents agreed to bear expenses of 60 students each year in the first two years for training in ITI for youths of local affected panchayats and panchayats will submit the names of desirous candidates in the office of Deputy Commissioner

The project affected families should be paid proper compensation for their land and their rights on forest property. The payment should be made in installments.

The project proponent informed that the compensation will be paid as per Government policy.

Upgradation & strengthening of existing PWD road in project area

The project proponent informed that they will carry out necessary widening and strengthening for running of traffic, as advised by the deputy commissioner, Chamba. They will undertake this work before starting the project components and road will be constructed of NH standard from Holi to Dam site.

Compensation for the loss of forest cover due to project construction

The project proponent informed that in the draft Environmental Management Plan, the provision has been kept for Compensatory Afforestation in double of the forest area acquired and to protect the forest in the catchment area, the Catchment Area treatment plan has been proposed as per the HP Government guidelines

The development activities to be undertaken in the project affected villages by the project proponent during the construction and operation stage

The proponent of the hydel project informed that 1.5% of the project cost has already been proposed in EIA/EMP for the development of villages under LADA as per guidelines of H.P Government. In addition to this, the company will also undertake development works under its Corporate Social Responsibility Programme. The project proponent also informed that 1% of the revenue generated will be

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deposited in the local area development fund for the development of the affected villages as per guidelines of H.P Government.

The company should use Tunnel Boring Machine if project is to be constructed on left side

The representative of project informed that the use of Tunnel Boring Machine in Hydel Projects in Himalyan Geology is not proved successful; however they will use best suitable technology as per approval of Government.

It was inquired whether No Objection certificate from all Gram Sabhas obtained

The project proponent informed that there are five Gram Panchayats likely to be affected by the construction of this project and the No Objection certificates were issued by all five Gram Sabhas.

Steps to be taken for the upliftment of education, health facility & upliftment of women were inquired about.

The proponent of the hydel project informed that they have started the two Ayurvedic Dispensaries in the area and Ambulance for the people of area will be developed soon. As per suggestion of Deputy Commissioner Chamba, the representative of project assured that they will provide one MD medicines and MD Gynaecologist in Holy Hospital for the people of area. The representative of project proponents also informed that the strengthening of existing educational institutes in the project area will be carried under the Corporate Social Responsibility Programme.

The people demanded that company should construct Holi Bajinath Tunnel and road to village Andarlagram

The project proponents informed that they have deposited LADA fund for local development activities, however they will extend all possible help for this.

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

>>

The representatives of the project proponent duly responded to all the comments and concerns raised by the stakeholders during the meeting (as detailed above). The stakeholders expressed a need for the project activity and were supportive of the project.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: GMR Bajoli Holi Hydropower Private Limited Street/P.O.Box: Indira Gandhi Domestic Airport Palam, Building: Old Udaan Bhawan Second Floor, Terminal 1 City: New Delhi State/Region: New Delhi Postcode/ZIP: 110037 Country: India Telephone: +91-11-47165700 FAX: +91-11-47165722 E-Mail: URL: www.gmrgroup.in Represented by: Alok Choubey Title: General Manager - Projects Salutation: Mr. Last name: Choubey Middle name: First name: Alok Department: Projects Mobile: +919971391576 Direct FAX: +91 11 47165722 Direct tel: + 91 11 47165701 Personal e-mail: Alok.Choubey@gmrgroup.in

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING There is no public funding from Parties included in Annex I in the said project activity.

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Annex 3

BASELINE INFORMATION

The Emission Factor for the Grid

The Central Electricity Authority (CEA) under the Ministry of Power, Government of India, has estimated the Combined Margin emission factor for the NEWNE grid, the details of which are available on the following website.

http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

The procedures and formulas used for estimation of the baseline factor and the assumptions made have been detailed in the Carbon Dioxide Emission Factor database, version 6.0, given by CEA17

, a statutory body under the Ministry of Power.

17 http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

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Annex 4

MONITORING INFORMATION The monitoring plan has been already explained in section B.7.2.

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Appendix 1

Monitoring Plan for Expenditure in Sustainable Development

The Project is expected to generate 687,964 CERs per annum upon registration. However, the net realization that is likely to accrue to GBHHPL from selling CERs would be based on actual energy generation. It is hereby stated that 2% of this realisation will be committed to community development activities.

If the activities undertaken involve capital expenditure exceeding the minimum requirement of 2%, the additional expenditure made would be set off against the requirements for the subsequent years. Such expenditure would be made within one year after the realization of revenues from the sale of the CERs and its details would be included in the monitoring report for the period following the transaction in the following tabular format:

Financial Year Activity Issued CERs CER Price Total CDM Amount (A) (B) (C) (D) (E = C x D)

Indicates the year for which the assessment is being provided

Provides details of the social/ community activities on which the expenditure has been incurred

Quantity of CERs issued for the assessment year

CER price at which the transaction has happened

Total CDM amount received

Expenditure in Current year

Expenditure Carried forward

Net Expenditure for Current Year

Expenditure as % of CDM amount for

current year

Reference Documentation

(F) (G) (H = F + G) (I = H / E) (J)

Expenditure made on the social/ community development activity in the current assessment year

Additional expenditure incurred on the social/ community development activity in the previous assessment years being carried forward to the current assessment year

Net Expenditure on social/ community development activity for the current assessment year

Indicates the % of the total CDM amount spent on social/community development activity

Indicates the documentation to be provided to the DOE during the verification to evidence the amount spent on social/community development activity

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