cdm-val-form validation report form for cdm project

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Validation report form for CDM project activities

(Version 04.0)

Complete this form in accordance with the instructions attached at the end of this form.

BASIC INFORMATION

Title of the project activity Los Andes PV CDM Project

Scale of the project activity Large-scale

Small-scale

Version number of the validation report 03.0

Completion date of the validation report 04/12/2019

Version number of the PDD to which this report applies 03.0

Date when PDD was uploaded for global stakeholder consultation 23/04/2019

Project participants Chile Solar JV SpA

Host Party Chile

Applied methodologies and standardized baselines

AMS-I.D “Grid-connected renewable electricity generation” (Version 18.0)

Mandatory sectoral scopes SS 01 Energy industries (renewable/non-renewable sources)

Conditional sectoral scopes, if applicable N/A

Estimated amount of annual average GHG emission reductions or GHG removals by sinks

17,754 tCO2e

Name and UNFCCC reference number of the DOE Korea Energy Agency (E-0011)

Name, position and signature of the approver of the validation report

Executive Director: Daegyun OH

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SECTION A. Executive summary

>> Korea Energy Agency(KEA) has conducted validation of the “Los Andes PV CDM Project” in Chile to assess whether the proposed CDM project activity is in conformity with all applicable CDM rules and requirements, including the CDM modalities and procedures, and relevant decisions by the COP/MOP and the CDM Executive Board. The proposed project activity is to construct and operate a small-scale PV power plant with a total of capacity of 9.6MW in the central region of Chile. The annual net generation of electricity supplied to the national power grid of Chile (SEN, Sistema Electrico Nacional) is estimated to be 27,286MWh, resulting in GHG emission reductions of 17,754tCO2e/year by displacing grid electricity generation from fossil fuel-fired power plants. The project will also contribute to sustainable development of Chile by reducing its dependence on fossil fuels, generating local employment, providing appropriate training and healthier life and clean environment. Objective The purpose of validation is to conduct a thorough and independent third-party assessment of the proposed CDM project activity against the applicable CDM rules and requirements. In particular, the project activity’s baseline, monitoring plan, and its compliance with relevant decisions by the COP/MOP and the CDM Executive Board including but not limited to host country criteria are validated in order to confirm that the project design, as documented, is sound and reasonable and satisfies all of the applicable requirements and identified criteria. Scope The validation scope is defined as an independent and objective review of the following: - Demonstration of prior consideration of the CDM; - Technical description of the project; - Application and selection of methodologies and standardized baselines; - GHG sources and types to be included within the project boundaries; - Baseline scenario; - Project additionality; - Estimated ER calculation; - Monitoring plan; - Start date, crediting period type and duration of the project activity; - Environmental impacts by the proposed project; - Sustainable development co-benefits of the project activity (if applicable); - Approval and authorization by the DNA of the host country(ies); - Modalities of communication statement by the PP; and, - Comments by global and local stakeholders The validation scope can be extended depending on project-specific situations or required by relevant decision by the COP/MOP and the CDM Executive Board. Validation Process and Methodology The project assessment is based on the ‘CDM validation and verification standard for project activities’(Version 2.0) and is conducted using standard auditing techniques to assess accuracy, conservativeness, relevance, completeness, consistency, and transparency of the information provided by the project participant(s). The validation team qualified in the applied sectoral scope(s), technical area(s) and relevant host country experience are appointed to evaluate the proposed CDM project activity. The validation of the proposed CDM project activity consists of the following three phases:

1) Desk review of the project design, baseline scenario, monitoring plan, and relevant date and information;

2) On-site assessment and follow-up interviews with relevant stakeholders in the host country, personnel with knowledge of the project design and implementation; and

3) Resolution of outstanding issues and issuance of the final validation report and opinion.

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Conclusion In summary, KEA is of the opinion that the proposed project activity, as described in the project design document(ver.03.0) dated 14/11/2019, meets all applicable CDM rules and requirements, and correctly applies the approved baseline and monitoring methodology, AMS-I.D. (version 18.0). Hence, KEA requests the registration of the “Los Andes PV CDM Project” as a CDM project activity.

SECTION B. Validation team, technical reviewer and approver

B.1. Validation team member

No. Role T

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Last name First name Affiliation (e.g. name of

central or other office of DOE or

outsourced entity)

Involvement in

Desk/d

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On

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insp

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Inte

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Valid

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1. Team Leader (Under observation)

IR PARK Kyung Soon KEA Y Y Y Y

2. Validator IR KONG Seung Hyun KEA Y Y Y Y

3. Local Expert EI PARK Kyung Nam KEA Y Y Y N

B.2. Technical reviewer and approver of the validation report

No. Role Type of resource

Last name First name Affiliation (e.g. name of

central or other office of DOE or

outsourced entity)

1. Technical reviewer IR CHOI Seok Jai KEA

2. Technical reviewer IR PARK Min Ku KEA

3. Approver IR OH Daegyun KEA

SECTION C. Means of validation

C.1. Desk/document review

>> The Project Design Document(PDD) version 1.0 dated 15/03/2019, which was submitted for publication of PDD as part of global stakeholder consultation process, and the final version of the PDD (ver.03.0) dated 14/11/2019 along with supporting documents were assessed as part of validation. The document review includes validation team’s assessment on the applicability of selected applied methodology, baseline determination, additionality of the proposed project activity, monitoring plan and calculation of GHG emission reductions. Furthermore, the validation team used additional documents by third parties like host party legislation, technical reports referring to the project design, and technical data. All documents reviewed or referenced during the validation are listed in Appendix 3 of this validation report.

C.2. On-site inspection

Duration of on-site inspection: 30/05/2019 to 31/05/2019

No. Activity performed on-site Site location Date Team member

1. Confirmation of information provided in the PDD and supporting documents with other cross-check sources

Los Andes PV Power plant site,

Province of Antofagasta, Antofagasta II

Region in Chile

30/05/2019~31/05/2019

PARK Kyung Soon KONG Seung Hyun PARK Kyung Nam

2. Assessment of the application of selected baseline and monitoring methodologies, baseline scenario, and additionality demonstration of the proposed project activity

3. Assessment of project design, monitoring plan, emission reduction calculations, bundling criteria

4 Assessment of start date, crediting period

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type, and project duration

5. Confirmation of environmental impacts and stakeholder consultations

6. Confirmation of host country approval and authorization, and MoC statement

C.3. Interviews

No. Interviewee Date Subject Team member

Last name First name Affiliation

1. LEE Sun Woong CEO, Chile Solar JV SpA(PP)

30/05/2019 Top management interview


2. Cho Gyu Seok Project Manager, Chile Solar JV SpA(PP)

30/05/2019~31/05/2019

Project design & implementation, monitoring plan, QA/QC, MoC, and etc.


3. Lee Jong Ho KOEN (Investor)

30/05/2019~31/05/2019

Project investing plan, financial flow


4. Lee Jae Hee KOEN (Investor)

30/05/2019~31/05/2019

Project investing plan, financial flow


5. Jang Sang-Hoon Samil PwC (Consulting)

30/05/2019~31/05/2019

Baseline, additionality, ER calculation, environmental impact analysis, stakeholder consultations, duration and crediting period, approval, and etc.


6. Yun Ji-Whan Samil PwC (Consulting)

30/05/2019~31/05/2019

Baseline, additionality, ER calculation, environmental impact analysis, stakeholder consultations, duration and crediting period, approval, and etc.


7. Jaramillo Alfonso Galarce

Ministerio del Medio Ambiente (DNA of Chile)

30/05/2019 Approval and authorization


C.4. Sampling approach

>> N/A

C.5. Clarification requests (CLs), corrective action requests (CARs) and forward action requests (FARs) raised

Areas of validation findings

No. of CL No. of CAR No. of FAR

Demonstration of prior consideration of the CDM

Identification of project type

General description of project activity 2

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Application and selection of methodologies and standardized baselines

- Application of methodologies and standardized baselines

- Deviation from methodology and/or methodological tool

- Clarification on applicability of methodology, tool and/or standardized baseline

- Project boundary, sources and GHGs

- Baseline scenario 1

- Demonstration of additionality 1

- Estimation of emission reductions or net anthropogenic removals

- Monitoring plan

Start date, crediting period type and duration

Environmental impacts 1

Local stakeholder consultation

Sustainable development co-benefits

Approval 1

Authorization

Modalities of communication 1

Global stakeholder consultation

Others

Total 3 4 0

SECTION D. Validation findings

D.1. Demonstration of prior consideration of the CDM

Means of validation [Desk Review, Interview, On-site Inspection] In order to determine whether CDM benefits were considered necessary in the decision to implement the project as a CDM project activity, KEA validation team has checked whether the start date of the proposed CDM project activity, specified in the PDD has been determined in accordance with the definition of start date in the latest version of “Glossary: CDM terms”. According to the “Glossary: CDM terms” (ver.10.0), the start date is defined as the date on which the project participants commit to making expenditures for the construction or modification of the main equipment or facility, or for the provision or modification of a service, for the CDM project activity or CPA. Where a contract is signed for such expenditures, it is the date on which the contract is signed. In other cases, it is the date on which such expenditures are incurred. If the CDM project activity or CPA involves more than one of such contracts or incurred expenditures, it is the first of the respective dates. During the site visit, the validation team has reviewed the original EPC contract document provided by PP to determine whether the start date of the proposed CDM project activity has been identified correctly. It is confirmed that the date of EPC contract is 10

th January 2019. Thus, the validation team determined that the

start date of the proposed CDM project activity is 10th January 2019 since it is the

earliest contract date of documents for expenditures. In addition, the validation team has assessed whether demonstration of prior consideration of the proposed CDM project activity is in accordance with the requirements of para 32 of the CDM project standard for project activities(ver.02.0). Since the date of publication of the PDD(ver.1.0) for global stakeholder consultation (23

rd April 2019) is within 180 days of the start date of the project activity (10

th

January 2019), the validation team confirms that demonstration of prior consideration of the CDM is not necessary in accordance with the relevant requirement in the CDM project standard for project activities(ver.02.0).

Findings N/A

Conclusion In conclusion, the validation team confirms that demonstration of prior consideration

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of the proposed CDM project activity is not necessary since the date of publication of the PDD (23

rd April 2019) for global stakeholder consultation is within 180 days

of the start date of the project activity (10th January 2019). It is thus concluded that

the proposed CDM project activity is in compliance with the applicable requirements related to the demonstration of prior consideration of the CDM.

D.2. Identification of project type

Means of validation [Desk Review, On-site Inspection, Interview] In order to determine whether the PP has identified the type of CDM project activity in accordance with the “CDM project standard for project activities” (ver.02.0), the validation team has assessed the proposed project activity’s scale and its eligibility of the indicated project type. In the submitted PDD, it is described that the proposed CDM project activity is to construct and operate photovoltaic power generation plants with the total capacity of 9.6MW. The PP has indicated that the proposed project activity is small-scale project type I “Renewable energy projects”, and has applied AMS-I.D. methodology “Grid-connected renewable electricity generation” (ver. 18.0). During the desk review and site visit, the validation team has cross-checked the description of PDD with other relevant sources such as EPC contracts, building permits, technical summary report which indicated that the proposed project activity consists of a small-scale PV project with total capacity of 9.6MW. In addition, the validation team has inspected the construction sites and confirmed that the equipment such as PV modules, and inverters are being ready to be installed in the near future. From the desk review and site visit, the validation team has confirmed that the total capacity is within the small-scale threshold of 15MW and determined that PP has identified the project type in accordance with the “CDM project standard for project activities” (ver.02.0). Also, the letter of approval(LoA) issued from the DNA of Chile (Ministry of Environment) indicates that the Government of Chile is aware that the proposed CDM project activity is a small-scale PV project. The validation team has also reviewed the Modalities of Communication (MOC) statement and written confirmation submitted by the PP (Chile Solar JV SpA) and determined that it is in compliance with all applicable CDM rules and requirements. The validation team has also checked whether the submitted PDD(ver.03.0) had been completed using the valid version of the PDD form appropriate to the type of the proposed CDM project activity. The submitted PDD has been reviewed against the valid version of the PDD form(ver.11.0) available at the UNFCCC CDM website and confirmed that the PDD has been completed using the valid version of the PDD form and followed the instructions therein.

Findings N/A

Conclusion The PP has submitted revised PDD(ver.03.0). Based on the desk review, on-site inspection and interview with PP, the validation team confirms that the proposed CDM project activity is qualified as small-scale project type I, and the revised PDD submitted by the PP has been completed using the valid version of the PDD form (ver. 11.0) and followed instructions in the attachment.

D.3. Description of project activity

Means of validation [Desk Review, On-site Inspection, Interview] In order to determine whether the description of the proposed CDM project activity in the PDD is accurate, complete, and provides an understanding of the proposed project activity, the validation team has assessed whether the submitted PDD contains necessary information specified in the requirements of the “CDM project standard for project activities” (ver.2.0). In this regard, during the desk review and site visit, the validation team has cross-checked the PDD with other relevant sources such as project plan, feasibility study reports, EPC contracts, manufacturer’s technical specifications, GPS coordinates and etc. From the desk review, and on-site inspection, the validation team has confirmed that the proposed “Los Andes PV CDM Project” involves a greenfield small-scale PV project which will supply electricity to the national grid of Chile, SEN (Sistema Electrico Nacional). The validation team has checked the GPS coordinates of the

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proposed project site and confirmed that they correspond to the actual location of the proposed project site. It was cross-checked with the GPS measuring equipment during the site visit as well. The validation team has also cross-checked the specifications of PV modules and inverters during the site visit and confirmed that these projects install polycrystalline solar modules (Q.PLUS L-G4.1 345) manufactured by Hanwha Q Cells (EPC contractor), and inverters(Sunny Central 3000-EV) manufactured by SMA Solar Technology with expected lifetime of 25 years. Bi-directional electricity meters, satisfying relevant Chilean regulations, are and/or will be installed at the PV project site in order to monitor net electricity generation. According to para 38 of the CDM project standard for project activities(ver.02.0), the project participants shall provide information on sources of public funding for the proposed project activity. It has been stated in the PDD that there is no public funding or ODA involved in this proposed project activity. However, supporting document or evidence was not provided by the PP(CAR1). In response to the issue, the PP submitted the Board of Directors meeting document prepared on December 2017. According to the document, it was confirmed that the project would be owned and operated by Chile Solar JV SpA, the sole PP of the proposed CDM project activity, which has been established by KOEN Chilean Hold Co. and COPA Fund Chilean Hold Co., the equity holders (50% each) of the Chile Solar JV SpA. After the site visit, the validation team has also conducted interview with COPA Fund manager on financial aspects, and confirmed that the project investment structure is the same as documented. As a result, it is affirmed that public funding is not involved in the proposed CDM project activity. The validation team has also checked whether the proposed CDM project activity is not a de-bundled component of a large-scale CDM project activity in accordance with the “Tool20: Assessment of de-bundling for SSC project activities” (ver.04.0). Through the desk review of submitted PDD, the validation team make sure that the PP has correctly prepared the PDD applying the AMS-I.D. methodology(ver.18.0) and the Tool20(ver.04.0). In regards to steps, sub-steps of the Tool20, the PP needs to follow those steps in more detail(CAR2). In addition, the validation team has checked de-bundling of project activities by cross-checking supporting documents such as EPC contracts, site maps, and GPS coordinates. There is one registered large scale CDM project (Project 10131: Los Andes Photovoltaic Farm) of a different PP (AES Gener S.A.), not very far from the proposed project location. During the site visit, it is confirmed that (a) the PP of the proposed CDM project activity is different from the other PP of the registered CDM project above. And, the proposed project does not meet other conditions for the occurrence of de-bundling including (b) the project category and technology/ measure, and (c) within previous 2 years, and (d) within 1 km of the project boundary in accordance with the tool. Consequently, the proposed project shall not be deemed to be a de-bundled component of a large scale project activity. As a result of this project activity, it is expected to contribute to GHG emission reductions and sustainable development of the host country by displacing existing power generations based on fossil fuels, including oil and coal. The validation team has also cross-checked the UNFCCC CDM website and reviewed registered PDDs and CPA-DDs hosted in Chile and confirmed that the proposed CDM project activity is neither registered as a CDM project activity nor included as a component project activity(CPA) in a registered CDM PoA. In addition, the validation team assessed whether the proposed CDM project activity is a project activity that has been deregistered or a component project activity(CPA) that has been previously excluded from a registered CDM PoA by cross-checking the UNFCCC CDM website and interviewing the PPs, and confirmed that there is none.

Findings CAR1: Based on the document review and site visit, the validation team found that

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the PDD stated that there is no public funding or ODA involved in this project activity. However, supporting document or evidence for no public funding or ODA involvement has not been provided by the PP. Therefore, the validation team has raised CAR1. CAR2: Based on the document review and site visit, the validation team found that the PP used the Tool20 (Ver04.0) as requested by the applied methodology. However, the PP needs to follow the steps, sub-steps of the Tool in more detail. Therefore, the validation team has raised CAR2.

Conclusion The validation team has reviewed the Board of Directors meeting document submitted by PP, and confirmed that the project is owned and will be operated by Chile Solar JV SpA, the sole PP of the proposed CDM project activity, which has been established by KOEN Chilean Hold Co. and COPA Fund Chilean Hold Co., the equity holders (50% each) of the Chile Solar JV SpA. By reviewing the supporting document and project investment structure, it is affirmed that there is no public or ODA involved in the proposed project activity. Therefore, validation team has closed CAR1. The validation team has reviewed the revised PDD(ver.03.0) submitted by PP, and confirmed that steps, sub-steps of the Tool have been correctly followed in accordance with the Tool. Therefore, validation team has closed CAR2. In conclusion, the validation team confirms that the description of the proposed CDM project activity in the PDD(ver.03.0) is accurate and complete in accordance with the requirements in the “CDM project standard for project activities”(ver.02.0).

D.4. Application and selection of methodologies and standardized baselines

D.4.1. Application of methodologies and standardized baselines

Means of validation [Desk review, On-site Inspection] The validation team has checked whether the selected methodology, AMS-I.D. “Grid connected renewable electricity generation(ver.18.0),” and other methodological regulatory documents are applicable to the proposed CDM project activity by reviewing the submitted PDD against the scope and applicability conditions of the applied AMS-I.D. methodology. In addition, the validation team cross-checked UNFCCC CDM website to determine whether the PP has applied the valid version of the selected methodology and other methodological regulatory documents. The actual text of these documents have been also compared with the PDD to determine whether they are correctly quoted and applied. From the desk review and site visit, the validation team has confirmed that the proposed project activity involves the construction of a small-scale greenfield PV plant which will supply electricity to the national grid of Chile. This was cross-checked with relevant documents such as EPC contracts, build permits, and etc. The review results of the submitted PDD(ver.03.0) and other relevant documents confirms that AMS-I.D. methodology is applicable to the proposed CDM project activity. It is also confirmed that the valid version(ver.18.0) of the selected methodology has been applied at the time of submission of the proposed CDM project activity for registration by checking the methodology section of the UNFCCC CDM website. The validation team’s assessment results of the PP’s application of selected methodology to the proposed project activity is as below:

Applicability Criteria Assessment of Validation Team

This methodology comprises renewable energy generation units, such as photovoltaic, hydro, tidal/wave, wind, geothermal and renewable biomass: (a) Supplying electricity to a national or a regional grid; or (b) Supplying electricity to an identified consumer facility via national/regional grid through a

Based on the document review and site visit, the validation team confirms that the proposed CDM project activity is a small-scale greenfield grid-connected renewable energy (PV) power generation project. Documents such as building permits, EPC contracts, and etc. have been cross-checked and the validation team confirms that this applicability

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contractual arrangement such as wheeling.

requirement is satisfied.

This methodology is applicable to project activities that: (a) Install a Greenfield plant; (b) Involve a capacity addition in (an) existing plant(s); (c) Involve a retrofit of (an) existing plant(s); (d) Involve a rehabilitation of (an) existing plant(s)/unit(s); or (e) Involve a replacement of (an) existing plant(s).

Based on the document review and site visit, the validation team confirms that the proposed CDM project activity is a small-scale greenfield grid-connected renewable energy (PV) power generation project. Documents such as building permits, EPC contracts, and etc. have been cross-checked and the validation team confirms that this applicability requirement is satisfied.

Hydro power plants with reservoirs that satisfy at least one of the following conditions are eligible to apply this methodology: (a) The project activity is implemented in an existing reservoir with no change in the volume of reservoir; (b) The project activity is implemented in an existing reservoir, where the volume of reservoir is increased and the power density of the project activity, as per definitions given in the project emissions section, is greater than 4 W/m2; (c) The project activity results in new reservoirs and the power density of the power plant, as per definitions given in the project emissions section, is greater than 4 W/m2.

Not applicable. Based on the document review and site visit, the validation team confirms that the proposed CDM project activity is a small-scale greenfield grid-connected renewable energy (PV) power generation project, and not hydro power plants with reservoirs.

If the new unit has both renewable and non-renewable components (e.g. a wind/diesel unit), the eligibility limit of 15 MW for a small-scale CDM project activity applies only to the renewable component. If the new unit co-fires fossil fuel, the capacity of the entire unit shall not exceed the limit of 15 MW.

Not applicable. Based on the document review and site visit, the validation team confirms that the proposed CDM project activity is a small-scale greenfield grid-connected renewable energy (PV) power generation project and does not include non-renewable components. The total capacity of PV is 9.6MW, and it is within 15MW small-scale threshold of its kind.

Combined heat and power (co-generation) systems are not eligible under this category.

Not applicable. Based on the document review and site visit, the validation team confirms that the proposed CDM project activity is a small-scale greenfield grid-connected renewable energy (PV) power generation project, and not a combined heat and power (co-generation) systems.

In the case of project activities that involve the capacity addition of renewable energy generation units at an existing renewable power generation facility, the added capacity of the units added by the project should be lower than 15 MW and should be physically distinct from the existing units.

Not applicable. Based on the document review and site visit, the validation team confirms that the proposed CDM project activity is a small-scale greenfield grid-connected renewable energy (PV) power generation project, and does not involve capacity addition.

In the case of retrofit, rehabilitation or Not applicable.

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replacement, to qualify as a small-scale project, the total output of the retrofitted, rehabilitated or replacement power plant/unit shall not exceed the limit of 15 MW.

Based on the document review and site visit, the validation team confirms that the proposed CDM project activity is a small-scale greenfield grid-connected renewable energy (PV) power generation project, and does not involve retrofit, rehabilitation, or replacement.

In the case of landfill gas, waste gas, wastewater treatment and agro-industries projects, recovered methane emissions are eligible under a relevant Type III category. If the recovered methane is used for electricity generation for supply to a grid then the baseline for the electricity component shall be in accordance with procedure prescribed under this methodology. If the recovered methane is used for heat generation or cogeneration other applicable Type-I methodologies such as “AMS-I.C.: Thermal energy production with or without electricity” shall be explored.

Not applicable. Based on the document review and site visit, the validation team confirms that the proposed CDM project activity is a small-scale greenfield grid-connected renewable energy (PV) power generation project.

In case biomass is sourced from dedicated plantations, the applicability criteria in the tool “Project emissions from cultivation of biomass” shall apply.

Not applicable. Based on the document review and site visit, the validation team confirms that the proposed CDM project activity is a small-scale greenfield grid-connected renewable energy (PV) power generation project.

Findings N/A

Conclusion In conclusion, the validation team confirms that the selected methodology, AMS-I.D. “Grid connected renewable electricity generation(ver.18.0)” and other methodological regulatory documents, including “Tool to calculate the emission factor for an electricity system(ver.7.0)” are applicable and were correctly applied to the proposed CDM project activity with the valid version.

D.4.2. Deviation from methodology and/or methodological tool

Means of validation [Desk review, Interview] The validation team has checked whether there is any deviation from applied methodology and methodological tools by comparing the submitted PDD with applied methodology, AMS-I.D. “Grid connected renewable electricity generation”(ver.18.0), and applicable methodological tools such as “Demonstration of additionality of small-scale project activities”(ver.12.0), “Tool to calculate the emission factor for an electricity system”(ver.07.0), and “Assessment of de-bundling for small-scale project activities”(ver.04.0).

Findings N/A

Conclusion The validation team confirms that the final version of the PDD(ver.03.0) has correctly applied AMS-I.D. (ver. 18.0) methodology and other applicable methodological tools in accordance with all the requirements specified in those documents. Therefore, no deviations from methodology and/or methodological tools found and requested for approval by the CDM Executive Board for the proposed CDM project activity.

D.4.3. Clarification on applicability of methodology, tool and/or standardized baseline

Means of validation [Desk review, Interview] During the desk review, the validation team has checked whether the selected

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methodology, AMS-I.D. “Grid connected renewable electricity generation(ver.18.0),” and other methodological regulatory documents are applicable to the proposed CDM project activity by reviewing the submitted PDD against the scope and applicability conditions of the applied AMS-I.D. methodology. The validation team has also checked the UNFCCC CDM website for any clarification on applicability of methodology, tool, and/or standardized baseline to the proposed CDM project activity. The validation confirms that the proposed CDM project activity meets the applicability criteria of the selected AMS-I.D. methodology and other applied methodological documents. Therefore, there are no clarification requests raised on applicability of methodology, tool in regard to the proposed CDM project activity.

Findings N/A

Conclusion The validation team confirms that there are no clarification requests on the applicability of the selected methodology, tool and/or standardized baseline to the proposed CDM project activity.

D.4.4. Project boundary, sources and GHGs

Means of validation [Desk review, Interview, On-site Inspection] The validation team has assessed whether all main GHG emission sources, the project boundary of the proposed CDM project activity, and other relevant project and baseline emission sources covered in the applied methodologies, and any applicable standardized baseline are included within the project boundary. According to the applied AMS-I.D. methodology(ver.18.0), 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. The spatial extent of the project boundary has been assessed by comparing the description in the PDD with supporting documents such as building permits, EPC contracts, site maps, and measurement of GPS coordinates of project sites during the site visit. Based on the desk review and site visit, the validation team has confirmed that the spatial boundary of the proposed CDM project activity has been defined correctly in the PDD as the PV power plants, inverters, transformers, metering system, and the main national grid(SEN). In particular, communication with local expert and project manager confirms that although the national grid consists of SEN and two other small systems in the south (Aysén and Magallanes) there is no interconnection between these electricity systems nor with Annex I countries in South America. In addition, the validation team has reviewed the PDD to determine whether the PP has correctly described emission sources and GHGs in accordance with the applied AMS-I.D. methodology(ver.18.0). It is confirmed that the PDD correctly describes the baseline emission source as CO2 emissions from electricity generation in power plants that are displaced due to the project activity, while project emissions and leakage emissions are considered zero as the proposed project activity applies renewable energy.

Findings N/A

Conclusion In conclusion, the validation team confirms that the final version of the PDD(ver.03.0) appropriately describes the project boundary and all emission sources in accordance with the applied methodology, AMS-I.D.(ver.18.0).

D.4.5. Baseline scenario

Means of validation [Desk review] Based on the desk review, the validation team has assessed whether the identified baseline scenario in the submitted PDD is in accordance with the applied methodology, AMS-I.D. “Grid connected renewable electricity generation(ver.18.0).” In case of greenfield projects, the baseline scenario is pre-defined by the applied AMS-I.D. methodology as follows: 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 into the grid. In the PDD, the baseline scenario is described as the project activity involved

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setting up of a solar plant to harness the power of sunlight to produce electricity and supply it to the grid. In the absence of the project activity, the equivalent amount of power would have been supplied by the national grid in Chile(SEN), which is based largely on fossil fuel-fired plants. Hence, the baseline for the project activity is the equivalent amount of electricity supplied from the existing SEN grid. In the process of establishment and description of baseline scenario, the PP shall provide information, data sources and references of the baseline scenario. As a result, there was a need to clearly describe the official source(CAR3). With reference to the issue, the PP made it clear that an official source (where available) is “Consumos de Combustibles” and “Generacion Bruta”, and corrected the PDD accordingly. As a result, data source for calculations for the combined margin is clearly described. The validation team has reviewed the submitted PDD(ver.03.0) and confirms that the baseline identified for the proposed CDM project activity is the scenario that reasonably represents the anthropogenic emission by sources of GHGs that would occur in the absence of the proposed CDM project activity and it is in accordance with the applied methodology, AMS-I.D. (ver.18.0)

Findings CAR3: The PP shall provide data sources and references of the baseline scenario. In the PDD(ver.01.0), it states that “Calculations for this combined margin is based on data from an official source (where available) and made publicly available.” However, the PP needs to clearly describe the official source accordingly.

Conclusion The validation team has reviewed the revised PDD(ver.03.0) submitted by the PP, and confirmed that data source for calculations for the combined margin is clearly described and the valid Tool is applied. Therefore, validation team has closed CAR3. As a result, the validation team confirms that baseline scenario for greenfield renewable power plants has been correctly applied in the final version of the PDD(ver.03.0) in accordance with the applied AMS-I.D. (ver. 18.0) methodology, and it reasonably represents the anthropogenic emission by sources of GHGs that would occur in the absence of the proposed CDM project activity.

D.4.6. Demonstration of additionality

Means of validation [Desk review, Interview] Refer to paragraph 85 of CDM project standard for project activities (ver.2.0), the starting date of the proposed project activity is in accordance with the Glossary: CDM terms, since it is the date of signing the EPC contract. However, the PP has not specified the date of submission of the prior consideration form to the Chilean DNA and/or the UNFCCC(CAR4). In response to the issue, the PP made it clear that the date of submission of the prior consideration form to the Chilean DNA and/or the UNFCCC is 25/04/2019, and corrected the PDD accordingly. The date has been cross-checked by referring to the UNFCCC CDM website. As a result, the date of submission of the prior consideration to the UNFCCC was specified, and the proposed CDM project activity is in compliance with the applicable requirements related to the demonstration of prior consideration of the CDM as described in D.1 of the VR. For the proposed small-scale CDM project activity, the validation team has assessed whether the demonstration of additionality described in the PDD(ver.01.0) is in accordance with the applied methodology, AMS-I.D. “Grid-connected renewable electricity generation” (ver.18.0) and methodological tool, “Demonstration of additionality of small-scale project activities (ver.12.0).” According to paragraph 11 of “Demonstration of additionality of small-scale project activities (ver.12.0)”, the following positive list of grid-connected and off-grid renewable electricity generation technologies are defined as automatically additional for project sizes up to and including the small-scale CDM thresholds (e.g. installed capacity up to 15MW)

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(i) Solar technologies (photovoltaic and solar thermal electricity); (ii) Off-shore wind technologies; (iii) Marine technologies (wave, tidal); (iv) Building-integrated wind turbines or household rooftop wind turbines of a

size up to 100kW; (v) Biomass internal gasification combined cycle(BIGCC)

Since the proposed CDM project activity falls under (i)Solar technologies (photovoltaic and solar thermal electricity) category, it is deemed to be automatically additional. By means of document review, the validation team has cross-checked relevant documents such as building permits, EPC contracts, and technical summary report which was confirmed through on-site inspection. The validation team came to the conclusion that the proposed CDM project activity is a small-scale greenfield PV power generation project within the 15MW threshold which is eligible for the positive list.

Findings CAR4: Refer to paragraph 85 of CDM project standard for project activities(ver. 02), the PP has to determine the start date of the proposed CDM project activity and provide a description of how this start date has been determined in accordance with the definition of start date in the Glossary: CDM terms. The starting date of the project activity is in accordance with the Glossary: CDM terms. However, the PP has not specified the date of submission of the prior consideration form to the Chilean DNA and/or the UNFCCC.

Conclusion The validation team has reviewed the revised PDD(ver.03.0) submitted by the PP, and confirmed that the date of submission of the prior consideration form to the Chilean DNA and/or the UNFCCC is 25/04/2019, and corrected the PDD accordingly. Therefore, validation team has closed CAR4. In conclusion, the validation team confirms that the proposed CDM project activity is a small-scale 9.6MW PV power generation project activity which is eligible for the positive list that is defined as automatically additional.

D.4.7. Estimation of emission reductions or net anthropogenic removals

Means of validation [Desk review, Interview] By comparing the submitted PDD, ER calculation sheet, and supporting documents with applied AMS-I.D. methodology(ver.18.0), Tool to calculate the emission factor for an electricity system(ver.7.0), and other applicable methodological documents, the validation team has assessed whether the estimated emission reductions of the proposed CDM project activity are in accordance with all the applicable CDM rules and requirements Baseline Emissions According to the applied AMS-I.D. methodology(ver.18.0), baseline emissions include only CO2 emissions from electricity generation in 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 x EFgrid,y

Parameter Unit Description

BEy tCO2 Baseline emissions in year y

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

EFgrid,y tCO2/MWh Combined margin CO2 emission factor for grid connected power generation in year y calculated using the latest version of the “Tool to calculate the emission factor for an electricity system”

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Since the proposed project activity is the installation of a greenfield power plant, EGPJ,y is calculated as follows: EGPJ,y = EGPJ,facility,y


EGPJ,facility,y MWh Quantity of net electricity generation supplied by the project plant/unit to the grid in year y

EGPJ,facility,y is calculated by the difference between the quantity of electricity generation exported to the grid(Gridout,y) and imported from the grid(Gridin,y). EGPJ,facility,y = Gridout,y – Gridin,y

Gridout,y of the PV power plant of this proposed project activity has been estimated based on the anlaysis report of power generation using the SolarGIS methodology and data published by TUV Sud Korea Ltd. on June 2017. Estimated of PV power plant is 27,474MWh which has been calculated from the following formula : Installed capacity x load factor x Yearly operation hours = 9.6MW x 32.5% x 8,760hrs = 27,474MWh The PP has derived the load factor of 32.5% from the analysis report of power generation based on Solar GIS methodology and data. The validation team has cross-checked the analysis report and feasibility study report provided by PP and determined that the PP has applied appropriate load factor. Gridin,y of the PV power plant of this 9.6MW project has been calculated by applying expected proportion of 0.7% to the value of Gridout,y. The validation team has cross-checked the analysis report and confirmed that actual data of Gridout,y and Gridin,y for sampled power plant during December of year 2018 has been used in determining 0.7%. Thus, the validation team confirmed that expected value of Gridin,y has been calculated appropriately as below : Gridin,y = Gridout,y x expected proportion = 27,474MWh x 0.7% = 188MWh Thus, EGPJ,y = EGPJ,facility,y = Gridout,y – Gridin,y = 27,474MWh – 188MWh = 27,286MWh for the power plant of 9.6MW capacity. Therefore, the total expected amount of EGPJ,y is 27,286MWh. In case of the grid emission factor, the PP has chosen the option to calculate the value from the combined margin(CM), consisting of the combination of operating margin(OM) and build margin(BM) according to the procedures prescribed in the valid “Tool to calculate the emission factor for an electricity system” (ver.7.0) which is as follows: EFgrid,CM,y = EFgrid,OM,y x WOM + EFgrid,BM,y x WBM


EFgrid,OM,y tCO2/MWh Operating margin CO2 emission factor in year y

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

WOM per cent Weighting of operating margin emission factor

WBM per cent Weighting of build margin emission factor

According to the applied methodological tool “Tool to calculate the emission factor for an electricity system (ver.07.0)”, in case of solar power generation project activities, default value of WOM = 0.75, and WBM = 0.25 is to be applied in the EFgrid,CM,y calculation formula. The validation team has reviewed the PDD and ER calculation sheet, and has confirmed that PP has applied default value of WOM = 0.75, and WBM = 0.25.

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As for the determination of EFgrid,OM,y and EFgrid,BM,y values, the validation team has assessed whether the PP has followed the relevant procedures described in the applied “Tool to calculate the emission factor for an electricity system” (ver.7.0). Firstly, the validation team has reviewed the data used for the calculation of EFgrid,OM,y and EFgrid,BM,y values, and confirmed that the data are from official sources made publicly available in the CNE(National Energy Commission of Chile) website. In addition, the validation team has assessed whether the data sources and assumptions are appropriate and calculations are correct in accordance with the seven steps described in section 6. baseline methodology procedure of the applied tool. Step 1. Identify the relevant electricity systems The validation team has assessed whether the PP has appropriately identified the relevant electricity systems by conducting desk review of official documents published by government of Chile, and other supporting documents submitted by PP, and interviewing local expert and project manager. According to the “2015 Energy Statistical Yearbook Chile” published by CNE (National Energy Commission of Chile), there are four regional electricity systems serving Chile. In the northern region, there is the Interconnected System of Norte Grande(SING), which runs across the region of Arica-Parinacota, Tarapaca and Antofagasta. In the central region, there is the Central Interconnected System(SIC), which goes from Paposo Bay (Second region) to Chiloe Island(Tenth region). The installed electricity generation capacity as of 2015 reaches 19,742 MW. Of these, 15,609 MW (79.1%) corresponded to the SIC and 3,968 MW (20.1%) to the SING. The remaining 0.8% is distributed among the Aysén and Magallanes electricity systems (SEA and SEM) in the Southern region. However, in November 2017, Chile has completed the interconnection of its Northern electric grid(SING) with its Central grid(SIC) which resulted in the integrated National Electric System(SEN). The validation team has cross-checked the interconnection of these two grids by news releases and electricity generation data published by CNE. The validation team has also assessed whether there is any connected electricity system located partially or totally in Annex I countries. From the UNFCCC Annex I country list, and google map, the validation team has confirmed that Chile is located in South America where there is not any Annex I countries to which Chile can connect its electricity system. The validation team has also confirmed that the list of all grid power plants/units of SEN grid have been included in the calculation of grid emission factor by cross-checking “Consumos de Combustibles” document published by CNE which includes all grid power plants/units in SEN grid. Thus, the validation team determined that the PP has appropriately identified the relevant electricity system, the integrated National Electric System(SEN), for the proposed CDM project activity which will be located in the central region of Chile, and included all grid power plants/units connected to the SEN grid. Step 2. Choose whether to include off-grid power plants in the project electricity system (optional) The validation team has reviewed the submitted PDD and confirmed that PP has selected Option I and therefore, only grid power plants are included in the calculation of operating margin and build margin emission factor. Step 3. Select a method to determine the operating margin (OM) For the calculation of the OM emission factor, the PP has selected the simple OM method. In this regard, the validation team has assessed whether the proposed CDM project activity is eligible to apply the Simple OM method. Firstly, the validation team has reviewed raw data of annual electricity generation, fuel type and fuel consumption of relevant power plants data from “Consumos de Combustibles” document published by CNE against the ER & EF calculation sheet, and confirmed that PP has used appropriate data from CNE. Secondly, the validation team has also reviewed the PDD and ER & EF calculation

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sheet and confirmed that PP had correctly calculated the share of low-cost/must run generation resources, including hydro, geothermal, wind, low cost biomass, nuclear and solar generation, as 41.3% of the total generation for the five most recent years from 2014 to 2018. Thus, the validation team confirms that relevant requirements for the application of Simple OM method have been met, and PP has selected the appropriate method in determining the operating margin(OM). Step 4. Calculate the operating margin emission factor according to the selected method According to the applied methodological tool, “Tool to calculate the emission factor for an electricity system (ver.07.0)”, the simple OM emission factor is calculated as the generation-weighted average CO2 emissions per unit net electricity generation (tCO2/MWh) of all generating power plants serving the system, not including low-cost/must-run power plants/units. As the data on fuel consumption and net electricity generation of each power plant is available by using published official source from CNE, the validation team has determined that the proposed CDM project activity may apply Option A. Under the selected Option A, the simple OM emission factor is based on the net electricity generation of each power unit and an emission factor for each power unit as below:


EFgrid,OM,simp

le,y tCO2/MWh Simple operating margin CO2 emission factor in year

y

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

EFEL,m,y tCO2/MWh CO2 emission factor of power unit m in year y

m - All power units serving the grid in year y except low-cost/must-run power units

Y - The relevant year as per the data vintage chosen in Step 3

In addition, the validation team confirmed that PP has chosen the below formula in order to determine EFEL,m,y as fuel consumption and electricity generation is available for a power unit m data sourced from CNE as below. If such data is not available for a power unit, PP has applied 0 tCO2/MWh as a simple and conservative approach.


EFEL,m,y tCO2/MWh CO2 emission factor of power unit m in year y

FCi,m,y Mass / Volume Amount of fuel type i consumed by power unit m in year

NCVi,y GJ/mass or volume

Net calorific value (energy content) of fuel type i in year y

EFCO2,i,y tCO2/GJ CO2 emission factor of fuel type i in year y

EGm,y MWh

The net quantity of electricity generated and delivered to the grid by power unit m in year y (EGm,y) and the amount of fuel type I consumed by power unit m in year y (FCi,m,y) are quoted from the statistics of National Energy Commission(Comision

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Nacional de Energia, CNE, 2016~2018). The validation team has reviewed the ER calculation sheet, and determined that it is correctly calculated in the excel spreadsheet. Gross calorific values (GCV) were derived from ‘Balance Nacioinal De Energia 2017’ published by the Ministry of Energy in Chile and the validation team confirmed that net calorific values (NCVi,y) have been correctly calculated from GCV using conversion factor suggested in the 2006 Revised IPCC Guidelines. In case of the CO2 emission factor of each fuel type i (EFCO2,i,y), these are correctly quoted from 2006 Revised IPCC Guidelines. The operating margin has been calculated using a three (3) year data vintage. Thus, the validation team confirms that 2016~2018 data is the most recent three years available from the CNE website and emission factor of each power unit m (EFEL,m,y) has been calculated correctly and provided in the ER calculation sheet. Accordingly, EFgrid,OM is correctly calculated as 0.7340 tCO2/MWh, which is three(3) year weighted average of the values of EFgrid,OM,2016(0.7354tCO2/MWh),

EFgrid,OM,2017(0.7398tCO2/MWh), and EFgrid,OM,2018 (0.7265tCO2/MWh) Step 5. Calculate the build margin (BM) emission factor For the proposed CDM project activity, PP has chosen Option 1, and documented the same option in the PDD. As the project applies Option 1 to calculate BM emission factor, the emission factor will not be updated annually. Instead, it is calculated ex ante based on the most recent information and will be fixed and used during the crediting period. Therefore, the validation team has assessed whether the most recent information available on power units already built for sample group m have been applied in calculating the build margin emission factor at the time of CDM-PDD submission for validation. The validation team has reviewed the set of five power units that started to supply electricity to the SEN grid most recently submitted by PP. The validation team confirmed that the PP has appropriately listed the five power units by referring to the start-up date of each power units sourced from the official power generation data published by CNE. It is also confirmed that the sample group m excludes the list of power units registered as CDM project activities, which has been cross-checked with the UNFCCC CDM PA/PoA database. Thus, the annual generation of the five power units that have been built most recently in the SEN grid is calculated correctly as 152,661MWh. The validation team has also assessed whether the value of the annual electricity generation of the SEN grid excluding power units registered as CDM project activities that started to supply electricity to the grid most recently and that comprise 20 percent of the total annual electricity generation is correct. The validation team has cross-checked the official power generation data published by CNE and confirmed that the value is calculated correctly as 14,851,908MWh. It is also confirmed that such 20% sample group excludes the list of power units registered as CDM project activities, which has been cross-checked with the UNFCCC CDM PA/PoA database. Since the annual electricity generation of 20% sample group (14,913,696MWh) is larger than the annual electricity generation of most recent 5 sample group (152,661MWh), the validation team confirmed that the 20% sample group has been selected correctly as the sample group used to calculate the build margin in the submitted PDD and ER calculation sheet. The detailed data used in the calculation are presented in emission factor spreadsheet. According to the “Tool to calculate the emission factors for electricity system” (Ver.07.0), the build margin emissions factor is the generation-weighted average emission factor (tCO2e/MWh) of all power units m during the most recent year y for which electricity generation data is available, calculated as follows:

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= 5,977,554tCO2 / 14,913,696MWh = 0.4008tCO2/MWh As a result, the BM emission factor (EFgrid,BM,y) is 0.4008(tCO2/MWh). STEP6. Calculate the combined emission factor The combined margin emissions factor is calculated using the following formula: EFgrid, CM,y = EFgrid,OM,y × WOM + EFgrid,BM,y × WBM = 0.7340 x 0.75 + 0.4008 x 0.25 = 0.6507tCO2/MWh The validation team confirms that the combined margin (CM) emission factor (EFgrid,CM,y) has been calculated correctly by applying WOM of 0.75 and WBM of 0.25 for solar power generation projects, which is in accordance with the applied “Tool to calculate the emission factor for an electricity system (Ver. 07.0)”. As a result, baseline emission factor (EFgrid,CM,y) is 0.6507(tCO2/MWh). The validation team has also compared the calculated value of EFgrid,CM,y with that of the most recently registered CDM projects hosted in Chile as shown below.

Ref# Project name Relevant electricity system

EFgrid,CM,y Registration Date

10436 Kelar Natural Gas Combined Cycle Project

SING 0.762 04 Jun 2018

10131 Los Andes Photovoltaic Farm

SING 0.888 03 Jun 2015

10070 Punta Palmeras Wind Power Project

SIC 0.6732 18 Dec 2014

9723 E.CL Wind Farm Project SING 0.831 23 Jan 2014

9803 Monreal Hydroelectric Project in Aysen

Aysen 0.386 06 Dec 2013

9741 Cabo Leones Wind Farm

SIC 0.685 15 Oct 2013

8867 "Ensenada Hydroelectric Project"

SIC 0.655 10 Apr 2013

It is shown that the projects connected to SING grid in the Northern region of Chile has relatively high EFgrid,CM,y value due to the dependence on coal-based power plants, while those projects connected to SIC grid in the central region of Chile has lower value. Considering that the government of Chile is promoting renewable energy and the proposed CDM project activity will be connected to SEN grid, which is the interconnected electricity system of SING and SIC, the validation team determined that the calculated value of 0.6507tCO2/MWh is conservative and reasonable. As it has been explained above, the baseline emissions include only CO2 emissions from electricity generation in fossil fuel fired power plants that are displaced due to the project activity, and are equal to the baseline emission factor (EFgrid,CM,y, in tCO2/MWh) multiplied by the net electricity supplied to the grid (EGPJ,y in MWh). BE = EGPJ,y x EFgrid,y = EGPJ,facility,y x EFgrid,CM,y

= 27,286MWh x 0.6507tCO2/MWh = 17,754tCO2 per year. Project Emissions According to the AMS-I.D. methodology(ver.18.0), for most renewable energy project activities, PEy = 0.

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The proposed project activity is an installation of greenfield PV generation project which does not belong to any of the following categories where project emissions have to be considered.

(a) Emissions related to the operation of geothermal power plants (e.g. non-condensable gases, electricity/fossil fuel consumption)

(b) Emissions from water reservoirs of hydro power plants The validation team reviewed the PDD(ver.03.0) and confirmed that the PP has correctly applied the requirements of the selected AMS-I.D. methodology and put PEy = 0. Leakage Emissions According to the AMS-I.D. methodology(ver.18.0), leakage is considered for biomass project activities in which General guidance on leakage in biomass project activities shall be followed to quantify leakages pertaining to the use of biomass residues. The proposed project activity is an installation of greenfield PV generation project which does not need to consider leakage. The validation team has reviewed the PDD(ver.03.0) and confirmed that the PP has correctly applied the requirements of the selected AMS-I.D. methodology and put LEy = 0. Emission Reductions Emission reductions are calculated as follows: ERy = BEy – PEy – LEy = 17,754 tCO2 – 0 tCO2 – 0 tCO2 = 17,754tCO2


ERy tCO2 Emission reductions in year y

BEy tCO2 Baseline emissions in year y

PEy tCO2 Project emissions in year y

Ley tCO2 Leakage emission in year y

Therefore, the validation team confirms that GHG emission reductions of the proposed CDM project activity are estimated appropriately at 17,754tCO2 per year.

Findings N/A

Conclusion The validation team has checked the PDD(ver.03.0), EF & ER calculation sheet against all referenced data sources and the requirements of applied methodologies and methodological tools that: · All assumptions and data used by the PP are listed in the PDD, including their references and sources; · Calculations are correct, applicable to the proposed CDM project activity and will result in a conservative estimation of the emission reductions; · All documentation used by project participants as the basis for assumptions and source of data is correctly quoted and interpreted in the PDD; · All values used in the PDD are considered reasonable in the context of the proposed CDM project activity; · The baseline methodology and applicable methodological tools have been applied correctly to calculate baseline, project, leakage GHG emission; · All estimates of the baseline GHG emissions can be replicated using the data and parameter values provided in the PDD. In conclusion, the validation team confirms that the estimated emission reductions of the proposed CDM project activity are in accordance with all the applicable CDM rules and requirements.

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D.4.8. Monitoring plan

Means of validation [Desk review, Interview, On-site Inspection] The approved baseline and monitoring methodology, AMS-I.D (Ver. 18.0) have been applied to the proposed project activity. During the document review, the validation team has identified and assessed all parameters contained in the monitoring plan against the requirements of the AMS-I.D. methodology as well as applicable tools. In addition, the validation team has assessed the feasibility of the monitoring arrangements in consideration of the project design, and the sufficiency of the means of implementation so as to ensure that the emissions reductions can be reported ex-post and verified. Parameters determined ex-ante: The PP has chosen the option to fix the CO2 emission factor of the grid electricity during the crediting period.

Parameter

Value applied

Description Source & Assessment

EFgrid,

OM,y 0.7340 Operation Margin CO2

emission factor in year y Data from National Energy Commission of Chile have been applied. The simple OM method is used to calculate EFOM in accordance with the applied AMS-I.D. methodology(ver.18.0) and Tool to calculate the emission factor for an electricity system (Ver.07.0)

EFgrid,

BM,y 0.4008 Build Margin CO2

emission factor in year y Data from National Energy Commission of Chile have been applied. The calculation of EFBM is based on the most recent information available on units already built for the sample group at the time of PDD submission for validation in accordance with the applied AMS-I.D. methodology (ver.18.0) and Tool to calculate the emission factor for an electricity system(Ver.07.0)

EFgrid,

y 0.6507 Combined margin CO2

emission factor in year y It is calculated as the weighted average of the simple OM emission factor(EFgrid,OM,y) and the BM emission factor (EFgrid,BM,y). Weighting of OM is 75%, and BM is 25%. It is in accordance with the applied methodology, AMS-I.D (ver. 18) and the Tool to calculate the emission

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factor for an electricity system (ver. 07.0).

Parameters monitored ex-post : According to the approved methodologies AMS-I.D(Version 18), the following parameters will be monitored:

Parameter Description & Assessment

EGPJ,facility,y The parameter is the quantity of net electricity generation supplied to the grid by the proposed project activity. In the PDD(ver.03.0), PP has chosen to calculate EGPJ,facility,y by the difference between the quantity of electricity supplied by the project to the grid(Gridout,y) and the quantity of electricity delivered to the project from the grid(Gridin,y). The validation team found that the load factor has been calculated from expected power generation based on Solargis methodology, and the same value has been applied to the PV project site in consideration of solar radiation rate in the geographical location. The value of Gridout,y has been sourced from analysis report of power generation based on Solargis methodology and data, while the value of Gridin,y has been calculated in proportion to Gridout,y. The expected proportion of 0.7% between Gridout,y and Gridin,y has been calculated based on the actual monitored data of Gridout,y and Gridin,y during December 2018 for Luna PV power plant which is in the same geographical location as the above PV power plant during December 2018. The validation team has cross-checked the adequacy of the ex-ante values using the following formula: Expected Power generation = Installed capacity x Load factor x Annual operation hours For the proposed PV power plant : 9.6MW x 32.5% x 8,760hrs = 27,474MWh. Since the difference between ex-ante value of EGPJ,facility,y

27,474MWh and cross-checked value of 27,286MWh is around 0.9%, the validation team determined that the ex-ante value has been estimated appropriately. In the PDD, the PP has also established monitoring plan to continuously measure and monthly record EGPJ,facility,y which will be cross-checked with the billing invoice from grid company, CGE. At the PV power plant, a single bi-directional electricity meter will be installed to monitor both values of Gridout,y and Gridin,y so as to calculate EGPJ,facility,y. The electricity meter is of class 0.2 with 0.2% accuracy and calibration frequency will be at least once in seven years. The validation team has cross-checked relevant Chilean regulation document, “Sistemas de Medidas para Transferencias Economicas” published by National Energy Commission(CNE) established by National Energy Commission(CNE) and confirms that in case of meters with 5~7 years of lifetime, calibration frequency is at least once in seven years.

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Thus, the validation team confirms that the PDD(ver.03.0) is in accordance with the relevant requirements in the AMS-I.D. methodology(ver.18.0).

Gridout,y The parameter is the quantity of electricity supplied by the project plant to the grid. The ex-ante value of Gridout,y is calculated as 27,474MWh in total for the PV power plant. The validation team confirms that the ex-ante value has been estimated appropriately based on Solargis methodology and data. This parameter will be monitored continuously using single bi-directional electricity meter with accuracy class 0.2, installed at each of the PV project sites, and it will be cross-checked with the billing invoice from grid company, CGE. The calibration frequency will be at least once in seven years. The validation team has cross-checked relevant Chilean regulation document, “Sistemas de Medidas para Transferencias Economicas” published by National Energy Commission(CNE) and confirms that in case of meters with 5~7 years of lifetime, calibration frequency is at least once in seven years. Thus, the validation team confirms that the PDD(ver.03.0) is in accordance with the relevant requirements in the AMS-I.D. methodology(ver.18.0).

Gridin,y The parameter is the quantity of electricity imported to the project plant by the grid. The ex-ante value of Gridin,y is calculated as 188MWh in total for the PV power plant. The validation team confirms that the ex-ante value has been estimated appropriately based on the expected proportion between Gridout,y and Gridin,y which has been calculated based on the actual monitored data of Gridout,y and Gridin,y for Luna PV power plant which is in the same geographical location as the above PV power plant during December 2018. This parameter will be monitored continuously using a bi-directional electricity meter with accuracy class 0.2, installed at the PV project site, and it will be cross-checked with the billing invoice from grid company, CGE. The calibration frequency will be at least once in seven years. The validation team has cross-checked relevant Chilean regulations established by National Energy Commission(CNE) and confirms that in case of meters with 5~7 years of lifetime, calibration frequency is at least once in seven years. Thus, the validation team confirms that the PDD(ver.03.0) is in accordance with the relevant requirements in the AMS-I.D. methodology(ver.18.0).

Findings N/A

Conclusion The validation team has confirmed that the monitoring arrangements described in the monitoring plan, including the following are appropriately described in the PDD, and have been established in accordance with the requirements of applied monitoring methodology. The quality assurance and quality control procedures, operational and management structure to implement the monitoring plan, provisions to ensure that data monitored and required for verification and issuance are kept and archived for at least two years after the end of the final crediting period or the last issuance of CERs, whichever is later. It is assessed to be feasible within the project design, and the means of implementation of the monitoring plan are sufficient to ensure that the emission reductions achieved by the proposed CDM project activity can be reported ex post and verified. The description of electricity meters in the PDD is also in accordance with relevant Chilean regulations in terms of accuracy level, and calibration frequency.

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D.5. Start date, crediting period type and duration

Means of validation [Desk review, Interview, On-site Inspection] By means of comparison of the PDD and evidences presented, the validation team has checked whether PP has specified the start date of the proposed CDM project activity, expected operational lifetime, type and duration and starting date of the crediting period in accordance with the relevant requirements in the CDM project standard for project activities(ver.02.0). In the submitted PDD, the start date of the project activity is stated as 10

th January

2019 (the date of EPC contract). In addition, the life time of the project activity is confirmed to be 25 years which was cross-checked with RCA document, and manufacturer’s technical specification of the installing equipment. Hence, the life time of 25 years for the project activity is considered to be appropriate. Also, renewable crediting period of 7 years has been chosen for the project, starting from 31/01/2020 or the registration date (whichever is later).

Findings N/A

Conclusion The validation team has reviewed the revised PDD(ver.3.0) in comparison with EPC contract documents, and confirmed that the start date of the proposed project activity is 10

th Jan. 2019, which is the EPC contract date of the proposed project.

In conclusion, the validation team confirms the following; a) The start date of the project activity indicated in the PDD has been validated as

per the definition of the start date provided in the Glossary of CDM terms; b) The expected operational lifetime of the proposed CDM project activity has been

indicated in the PDD and is deemed reasonable; c) A renewable crediting period has been selected by PP in accordance with para

87 of the CDM project standard for project activities(ver.02.0); d) The start date of the crediting period of proposed CDM project activity is based on the planned commercial operation date, and among the stated start date of crediting period in the PDD or date of registration, whichever is later, will be applied.

D.6. Environmental impacts

Means of validation [Desk review, Interview] By means of provided evidence and assessment of host party’s regulations on environment, the validation team has checked the compliance of the analysis of the environmental impacts with applicable requirements related to the environmental impacts in the CDM project standard for project activities(ver.02.0). The validation team found that according to the environmental law established by the Republic of Chile (Article 10.c of Ley N 19,300, and Ley N 20,417), all power plants exceeding 3MW of installed capacity, including solar technology, should formally analyse its environmental impacts through the Environmental Impact Evaluation System(Sistema de Evaluacion de Impacto Ambiental, SEIA) in order to obtain an Environmental Qualification Resolution(Resolucion de Calificacion Ambiental, RCA). If the project activity requires to be submitted to the SEIA and be authorized, the relevant local authorities will make public their response through the RCA published on the Environmental Evaluation System (Servicio de Evaluaction Ambiental, SEA) website. However, if the project activity does not require authorization, a written letter (Letter of Pertinence) expressing this matter is issued to the project participant. Since the proposed CDM project activity is comprised of a small-scale PV project with 9.6MW capacity, formal analysis of environmental impact and RCA approval process is required according to the domestic law of Chile. Thus, the validation team has cross-checked whether the project completed the DIA process for the RCA. And it is confirmed that RCA has been published on May 6, 2016 by SEA, and the project is in compliance with the domestic law of Chile. In the description of environmental impact assessment, the PDD states that the project is approved by the national authority. However, it is not clear which national authority it is referring to(CL1).

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Findings CL1: Refer to paragraph 215 of the CDM project standard for project activities (ver 02), the PP shall provide a detailed summary of the environmental and socio-economic impact assessment and provide references to all relevant supporting document. In the PDD, it states that “Specifically, the project is approved by the national authority…” However, it is not clear which national authority it is referring to. As a result, this is requested to be clarified.

Conclusion The validation team has cross-checked the revised PDD(ver.03.0) and confirmed that the national authority is the SEA(Servicio de Evaluacion Ambiental). The PDD has been revised accordingly. Therefore, the validation team closed CL1. The validation team also confirms that an assessment of environmental impact is required by the host party for this proposed CDM project activity. And, the project completed the DIA process and the project is in compliance with the domestic law of Chile.

D.7. Local stakeholder consultation

Means of validation [Desk review, Interview, On-site inspection] By means of provided evidence, and interview with the local stakeholders and DNA during the site visit, the validation team has checked whether the local stakeholder consultation has been conducted in accordance with the relevant requirements in the “CDM project standard for project activities”(ver.02.0). The validation team has reviewed PDD against cross-checked sources such as official letter to local authority, LSC meeting paper, and radio notice, so as to determine whether PP has followed the LSC process specified in the CDM project standard for project activities (ver. 02.0). By means of document review, the validation team confirmed that radio notice on project plan has been made on 2015 to relevant local communities during the RCA process. However, the validation team confirmed that no public opinion has been submitted regarding this project which was cross-checked by revewing the RCA documents and relevant website. PP has also sent official letter to local authority regarding LSC on 1 Oct 2018. Invitation letter was sent to local residents on the same date with LSC meeting paper. Interview with PP confirmed the fact that there were not any negative comments received. In conclusion, the validation team confirms that local stakeholder consultations have been conducted appropriately, and the local stakeholder consultation has been started before the start date of the proposed CDM project activity(10 January 2019) in accordance with the relevant requirements in the CDM project standard for project activities(ver.02.0).

Findings N/A

Conclusion The validation team has interviewed the local expert, the PP, and the DNA of Chile. And, the team confirmed that there is no relevant Chilean regulation on local stakeholder consultations. Therefore, the validation team has checked whether the local stakeholder consultation has been implemented appropriately in accordance with the relevant requirements in the “CDM project standard for project activities (Ver.02.0).” The validation team has reviewed the revised PDD(ver.03.0) which were cross-checked with supporting documents such as LSC invitation letter, meeting paper, and radio notice, and determined that PP has completed the local stakeholders consultations in accordance with the requirements in the “CDM project standard for project activities (Ver.02.0).” As verified from provided documents such as invitation letter for local stakeholder consultation, and meeting paper for LSC, as well as direct interview with PP during the site visit, the validation team confirms that there are no negative comments received from any stakeholders and a summary of LSC process has been adequately described in the PDD(ver.03.0).

D.8. Sustainable development co-benefits

Means of validation [Desk review, Interview] By means of document review and interview with PP, the validation team has checked whether the PP has developed a separate document describing how they intend to monitor sustainable development co-benefits of the proposed CDM

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project activity. It is confirmed that such document separate from the monitoring plan has not been developed by the PP.

Findings N/A

Conclusion In conclusion, the validation team confirms that a separate document describing how the PP intend to monitor sustainable development co-benefits of the proposed CDM project activity was not developed by PP separately from the monitoring plan.

D.9. Approval

Means of validation [Desk review, Interview, Site visit] In order to determine whether the designated national authority(DNA) of Chile has provided a written letter of approval, the validation team has interviewed PP and confirmed that the LoA has not been issued at the time of submission of PDD to the validation team. Upon the issuance of LoA from the DNA on 11 November 2019, which was received from PP via email, the validation team has reviewed the text of LoA to determine whether the following conditions have been met without any conditions:

(a) The party is a Party to the Kyoto Protocol; (b) The participation in the CDM project activity is voluntary; (c) In the case of the host Party, the CDM project activity contributes to

achieving the sustainable development of the country (d) It refers to the precise title of the CDM project activity in the PDD submitted

for registration. Other items such as the following will be considered to determine whether all validation requirements regarding approval have been satisfied.

(i) The proposed bundled small-scale CDM project activities have only one host Party in which the project activity is located, as set out in the PDD;

(ii) LoA has been issued by the respective Party’s DNA and is valid for the proposed CDM project activity under validation

The validation team also checked the list of DNAs from the UNFCCC CDM website to confirm the validity of DNA of Chile, and interviewed government official of the DNA during the site visit, and has confirmed that DNA is well aware of the proposed CDM project activity and issued the letter of approval on 11 November 2019.

Findings CL2: Refer to paragraph 112 of CDM project standard for project activities (ver.02), the PP to obtain a letter of approval from the DNA of each Party involved in the proposed CDM project activity. Based on the desk review and interview with project manager, the validation team found that the letter of approval has not been issued by the DNA of host party and thus sufficient information is not available to determine whether relevant requirements have been met. Therefore, this is requested to be clarified.

Conclusion The PP has submitted the Letter of Approval (letter number 195285, dated 11/11/2019) issued by the Ministry of Environment, which is the DNA of Chile. The validation team has checked the written Letter of Approval for authenticity, and confirms the following which are verified to be unconditionally indicated in the LoA:

(a) The sole host party, Chile, is a Party to the Kyoto Protocol; (b) The participation in the proposed CDM project activity is voluntary; (c) The proposed CDM project activity contributes to achieving the sustainable

development of Chile; (d) There is no difference between the title in the LoA and that in the

PDD(ver.03.0). (e) The host party is aware that the proposed small-scale CDM project

activities taking place in its territory are part of the bundle. Therefore, the validation team has closed CL2. In conclusion, the validation team confirms that the DNA of Chile has approved the proposed CDM project activity and issued a valid LoA in accordance with all relevant requirements in the CDM project standard for project activities(ver.02.0).

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D.10. Authorization

Means of validation The validation team has reviewed the written Letter of Approval issued by the DNA of Chile(letter number 195285, dated 11/11/2019), and was able to assess that the PP has been authorized by the host party in accordance with relevant requirements in the CDM project standard for project activities(ver.02.0).

Findings N/A

Conclusion As per PDD(ver.03.0), the only project participant involved in the project is ‘Chile Solar JV SpA’ and the same is approved by DNA of Chile, which is the party to Kyoto Protocol. The validation team has confirmed the consistency of project participant’s information in relevant sections of the revised PDD(ver.03.0) along with the Letter of Approval.

D.11. Modalities of communication

Means of validation [Desk review, On-site Inspection, Interview] Based on the document review, and site visit, the validation team has assessed whether the MoC is in accordance with relevant requirements in the CDM project standard for project activities(ver.02.0). The validation team has checked whether the submitted MoC statement has been completed using the valid version of the MoC form(CDM-MOC-FORM). It is confirmed that PP has used the valid version 03.0 which was cross-checked from UNFCCC CDM website. Also, the validation team confirmed that PP’s authorized signatories signing the CDM-MOC-FORM correspond to the PP’s authorized signatories included in the CDM-MOC-FORM, annex 1 by verifying those signatures with evidence documents. The validation team has also checked whether the MoC form has been filled correctly by interviewing PP regarding the contact details, and nomination of focal points. The corporate identify of all PPs and focal points, as well as personal identities were cross-checked directly by reviewing entity registration document (1 Mar 2018), board meeting minute (25 Feb 2019), share purchase agreement of Fotovoltaica Acacia SpA (21 Jan 2019) in which designated focal points have given their signatures. In addition, the MoC statement, dated 18 July 2019, has been submitted directly by PP to the validation team on 26 July 2019 via email. Through the desk review, and interview with PP during the site visit, the validation team confirms that the signatory and contact details on the MoC are authorized and credible, the MoC is prepared using the latest version of F-CDM-MOC form and it is correctly filled including the Modalities of Communication statement (Annex-I).

Findings CL3: Refer to paragraph 117 of CDM project standard for project activities (ver.02), the PP to define their modalities of communication with the CDM executive board, and present them in a “Modalities of communication statement (MoC statement). The MOC statement has not been provided to the validation team. And accordingly, sufficient information is not available to determine whether relevant requirements have been met. Therefore, this is requested to be clarified.

Conclusion The validation team has reviewed the MoC statement dated 18 July 2019 submitted by PP, and confirms the following:

a) The MoC includes all the required information accurately as per the CDM-MOC-FORM, including its annex 1;

b) The MoC has been completed using the valid version of the CDM-MOC-FORM (ver. 3.0)

c) The PP’s authorized signatories signing the CDM-MOC-FORM correspond to the PP’s authorized signatories in the Annex 1 of CDM-MOC-FORM.

Therefore, the validation team has closed CL3. In conclusion, the validation team confirms that the MoC statement was completed and duly authorized in accordance with the valid version of the MoC form and the information required therein.

D.12. Global stakeholder consultation

Means of validation The validation team has made PDD(ver.01.0) publicly available for global stakeholder consultations prior to the start of the validation activities through a dedicated interface on the UNFCCC CDM website at the following URL:

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https://cdm.unfccc.int/Projects/Validation/index.html The duration of the period for submission of comments for the global stakeholder consultation was 30 days from 23 April 2019 to 22 May 2019. After completion of the 30 days commenting period, the validation team has checked the UNFCCC website for global stakeholders’ comments. However, there were no comments received during GSC period.

Findings N/A

Conclusion The validation team has checked the revised PDD(ver.03.0) and confirms that the revised PDD adequately describes the changed project design and also the PDD had been made public for global stakeholder consultations in accordance with relevant requirements in the CDM project standard for project activities(ver.02.0) and CDM project cycle procedure for project activities(ver.02.0). It is confirmed that no comments were received during the global stakeholder consultation process.

SECTION E. Internal quality control

>> The final version of the validation report has gone through a qualified, independent technical review with all the relevant documentation before requesting registration of the project activity. The technical review has been conducted by a technical reviewer qualified in accordance with KEA’s Review of Validation/V&C procedure mainly in terms of validation procedures and results, and approved by Executive Director of Korea Energy Agency.

SECTION F. Validation opinion

>> Korea Energy Agency(KEA) has conducted validation of the “Los Andes PV CDM Project” in Chile to ensure that the proposed project activity is in conformity with all applicable CDM requirements including the CDM modalities and procedures, and relevant decisions by the COP/MOP and the CDM Executive Board. The validation consisted of the following 3 phases

1) Desk review of the project design, the baseline, monitoring plan, and relevant data and information;

2) On-site assessment and follow-up interviews with relevant stakeholders in the host country, personnel with knowledge of the project design and implementation; and,

3) Resolution of outstanding issues and the issuance of the final validation report and opinion. During the validation, the validation team assessed, using objective evidence, the accuracy, conservativeness, relevance, completeness, consistency, and transparency of the information and assumptions provided in the project design document (PDD). In addition, based on its sectoral and regional expertise, the validation team has assessed whether the project activity complies with the all applicable rules and requirements set out in the CDM modalities and procedures, the applicability conditions of the selected methodology, and relevant decisions and guidance provided by the CDM Executive Board. A risk based approach was taken to conduct the validation and corrective action requests(CARs) and clarifications(CLs) were raised for relevant actions by the PP. The validation team has found, through the validation process, 4 CARs and 3 CLs. In response to the request for corrective actions, the project participant submitted documentations including a revised PDD (ver.03.0) and ER calculation sheet(ver.02.0) to the KEA validation team. Based on that, the validation team made a through reviewed of the corrective actions and has agreed that the raised CARs and CLs were closed. Also, the KEA validation team has confirmed that the host country, Chile, meets the CDM participation criteria and the DNA has approved the proposed project activity and authorized the project participant, confirming that the project will contribute to the sustainable development of Chile. The validation did not reveal any information which indicated the project can be seen as a diversion of official development assistance (ODA) funding towards Chile. By introducing 9.6MW PV generation, the project results in reductions of CO2 emissions that are real, measurable and

https://cdm.unfccc.int/Projects/Validation/index.html

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give long-term benefits to the mitigation of climate change. It is demonstrated that the project is not a likely baseline scenario. Emission reductions attributable to the project are hence additional to any that would occur in the absence of the project activity. Given that the project is implemented as designed, the project is likely to achieve the estimated amount of emission reductions. Additionally, the validation team has reviewed the estimation of the projected emission reductions. It is confirmed that the indicated amount of emission reductions of 124,278 tCO2e over 7 years’ period of crediting period, resulting in a calculated annual average of 17,754 tCO2e, represents a reasonable estimation using the assumptions given by the project documents. The monitoring plan provides for the monitoring of the project’s emission reductions. The monitoring arrangements described in the monitoring plan are feasible within the project design and the project participants are able to implement the monitoring plan. In summary, KEA is of the opinion that the proposed project activity, ‘Los Andes PV CDM Project’ as described in the final PDD of 14/11/2019 (version 03.0), meets all applicable UNFCCC requirements for the CDM, all relevant host country criteria and correctly applies the approved baseline and monitoring methodology, AMS-I.D (Version 18). Hence, KEA requests the registration of the ‘Los Andes PV CDM Project’ as a CDM project.

4 December 2019 4 December 2019

Daegyun OH Kyung Soon PARK

Executive Director of KEA Validation Team Leader

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Appendix 1. Abbreviations

Abbreviations Full texts

AMS Approved Methodology for Small-scale project activities

BE Baseline Emissions

BM Build Margin

CAR Corrective Action Request

CDM Clean Development Mechanism

CER(s) Certified Emission Reduction(s)

CL Clarification Request

CM Combined Margin

COP/MOP Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol

CO2 Carbon dioxide

CO2e Carbon dioxide equivalent

DNA Designated National Authority

DOE Designated Operational Entity

EB CDM Executive Board

EG Electricity Generation

EPC Engineering, Procurment, Construction

ER Emission Reduction

FAR Forward Action Request

FSR Feasibility Study Report

EF Grid Emission Factor

GHG Greenhouse gas(es)

GSC Global Stakeholder Consultation

GWP Global Warming Potential

IPCC Intergovernmental Panel on Climate Change

KEA Korea Energy Agency

LE Leakage Emissions

LoA Letter of Approval

LSC Local Stakeholders Consultations

MoC Modalities of Commuication

MP Monitoring Period

ODA Official Development Assistance

OM Operating Margin

PDD Project Design Document

PE Project Emissions

PP Project Participant(s)

PPA Power Purchase Agreement

PS CDM Project Standard for project activities

QA Quality Assurance

QC Quality Control

UNFCCC United Nations Framework Convention on Climate Change

VAL Validation Report

VVS CDM Validation and Verification Standard for project activities

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Appendix 2. Competence of team members and technical reviewers

KEA

Personal History

Family name PARK Date of Birth 27/01/1968

Given name Kyung-Soon Sex Male

Organization KEA Phone No. +82-52-920-0591

Position Center Manager Fax No. -

Address 323, Jongga-ro, Jung-gu, Ulsan-si,

Republic of Korea E-mail [email protected]

Title Proposed Title Qualification

Full-time Validator/verifier

Sectoral Scope

Proposed Sectoral Scope Qualification

1.Energy industries(renewable/non-renewable sources)

1-1 Thermal energy generation

3. Energy demand 3-1 Energy demand

Work experience

* Please describe every employment you have had

From to Details of Duties

1996-04-08 1997-11-30 Start-up operation of nuclear power plant, KEPCO(Nuclear Power #3, 4 in Uljin)

1997-12-01 1998-12-03 Demand side management on industry sector, Demand Side Management division, KEMCO

1998-12-04 2004-12-31 Process consultancy, Energy Consulting Department, KEMCO

2005-01-01 2007-01-31 Support of operational activities of KEMCO, Management Support Department, KEMCO

2007-02-01 2009-07-31 Validation and verification of GHG reduction projects, GHG Certification Office, KEMCO

2009-08-01 2011-03-15 Support of operational activities of KEMCO, Management Support Department, KEMCO

2011-03-16 2012-12-31 Industrial Sector Demand Side Management, Demand Side Management Department, KEMCO

2013-01-01 2013-12-31 External Cooperation Department of KEMCO

2014-01-01 2016-12-31 Gwangju Chonnam Regional Headquarter of KEA (KEMCO)

2017-01-01 2018-12-31 Global Project Division of KEA

2019-01-01 Present CDM Certification Center of KEA

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KEA

Personal History

Family name Kong Date of Birth 10/02/81

Given name Seung Hyun Sex Male

Organization Korea Energy Agency (KEA) Phone No. +82-52-920-0592

Position Assistant Manager Fax No. -

Address 323 Jongga-ro, Jung-gu, Ulsan,



Full-time Validator/verifier

Sectoral Scope

Proposed Sectoral Scope Qualification 1. Energy industries

(renewable - / non-renewable sources)

1-2. Renewables

3. Energy demand 3-1. Energy demand

13. Waste handling and

disposal 13.1 Solid waste and wastewater

Work experience



Apr 2012 Present

< CDM Certification Center, KEA > Performed verification/certification of several CDM projects

- Conducted verification of various CDM project types such as Wind Farm(Ref.5977), Biomass cogeneration(Ref.3424), and LFG generation(Ref.4294)

Managed quality system and validation and verification/certification resources of KEA to perform as a CDM DOE. < Climate Change Response Division, KEMCO >

Participated in the UNFCCC climate change negotiation process (Issues related to CDM, Technology development & transfer)

Supported the operations of CDM DNA by reviewing 33 potential CDM projects in accordance with the eligibility criteria

Managed two CDM projects (N2O reduction: ref# 0099, Efficient lighting: PoA 5019)

Supported national/sub-national industrial parks with energy audit, GHG inventory, installation of

Managed the operation of ‘Climate Change Policy Working Group’ to address policy issues in consultation with various stakeholders

Jan 2012 Mar 2012 < Energy & Environment Centre, KMAC >

Undertook research projects related to Korea’s renewable energy master plan, and establishment of regional centre of IRENA

Jan 2010 Mar 2010 < Environment and Development Division, UNESCAP >

Undertook policy research on promoting sustainable development and enhancing energy security in the Asia Pacific region

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KEA

Personal History

Family name Park Date of Birth 22/10/92

Given name Kyungnam Sex Male

Organization - Phone No. 56-9-8211-9492

Position - Fax No.

Address Av. Kennedy 4777 Las condes Chile E-mail [email protected]

Proposed Title

Title Qualification

Local Expert

* Please tick off ( ) the title which you wish to apply for *Qualification shall be determined by the authorized person

Work experience



Jan 2016 Jan 2019 Charge of Jisahwa, KOTRA

* Please describe your work experience by given sectoral scopes

Educational background

Years attended

University or Institution Title of degrees Main course of study

Universidad Andres Bello

Hoteleria internacional Hoteleria internacional

Training

No. Description

1

Linguistic abilities

Language Read Write Speak Understand

English B B B B

Spanish A A A A

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KEA

Personal History

Family name CHOI Date of Birth 12/02/73

Given name Seok Jai Sex Male

Organization KEA Phone No. +82-52-920-0681

Position Team Manager Fax No. -

Address 323, Jongga-ro, Jung-gu, Ulsan,


Proposed Title

Title Qualification

Full-time Lead Validator/verifier

* Please tick off ( ) the title which you wish to apply for *Qualification shall be determined by the authorized person

Proposed Sectoral Scope

Sectoral Scope Qualification

1. Energy industries (renewable - / non-renewable sources)

1-1 Thermal energy generation

1-2 Renewables

13. Waste handling and disposal 13-1 Solid waste and wastewater

* Please tick off ( ) the sectoral scope which you wish to apply for *Qualification shall be determined by the authorized person

Work experience



1997-01-15 2001-12-31 Managing inspection scheme, Energy Inspection Department, KEA

2002-01-01 2006-01-22 Energy Inspection and consulting, Gyonggi district office, KEA

2006-01-23 2010-01-25 Managing inspection scheme, Energy Inspection Department, KEA

2010-01-26 2014-12-31 Managing new & renewable energy facilities certification scheme and Korean industrial standards, New & Renewable Energy Promotion Division, KEA

2015-01-01 2016-12-31 Quality Manager and conducting validation and verification of GHG reduction projects, GHG certification Office, KEA

2017-01-01 2018-12-31 Center Manager & Quality Manager, and conducting validation and verification of GHG reduction projects, CDM Certification Center, KEA

2019-01-01 Present Team manager, Renewable Energy Policy Division, KEA

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KEA

Personal History

Family name PARK Date of Birth 29/03/1981

Given name Min-Ku Sex Male Organization KEA Phone No. +82-52-920-0462

Position Manager Fax No. -

Address 323 Jongga-ro, Jung-gu, Ulsan,



Full-time Lead Validator/verifier

Sectoral Scope

Proposed Sectoral Scope Qualification

1. Energy industries (renewable - / non-renewable sources)

1-2 Renewables

13 Waste handling and disposal

13-1 Solid waste and wastewater

Work experience



02/26/2010 31/12/2015 CDM auditing, Contract CDM project and Supporting a planning team tasks at GHG Certification Office, KEA

01/01/2016 Present Energy Efficiency Division, KEA

* Please describe your work experience by given sectoral scopes

Sectoral Scope No.

Period (Month/Year)

Description

1 1-2 12 times

▶ Trainee-on the job training

1) Dak Lo Hydropower Project (October 2011~November 2011) 2) Hoa Tham Hydropower Project (October 2011~December 2011)

▶ Team member - under observation

3) Ha Nang Hydropower Project (March 2012 ~ July 2012) 4) Dak Srong 2A Hydropower Project (March 2012 ~ July 2012)

▶ Team member

5) Nam Cau 1&2 Hydropower Project (January 2012 ~ July 2012) 6) Nam Khoa 1&2 Hydropower Prioject (January 2012 ~ July 2012) 7) Ha Nang Hydropower Project (January 2012 ~ July 2012) 8) Broadland Hydropower Project ( May 2012 ~ December 2012) 9) Phu Mau Hydropower Project (November 2012 ~ January 2013) 10) Bataan 2020 power rice hull cogeneration Project(Mar 2013 ~ Aug 2013)

▶ Team leader-under observation

11) Durgun Hydropower Project (August 2012 ~ January 2013) 12) Taishir Hydropower Project (August 2012 ~ January 2013)

13 13-1

2007.10~ 2008.5

2009.2~ 2009.10

Carry out research: Determination of endpoint of titration for chlorination and dechlorination using ORP and pH with waste water supported by Ministry of Environmental, Korea Carry out research: Evaluation of odor-reduction commercial smallbial additives in Swine Manure Slurry in Winter Conditions supported by Ministry of Environmental, Korea

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Appendix 3. Documents reviewed or referenced

No. Author Title References to the document

Provider

1 Chile Solar JV SpA Project Design Document (Ver.01.0) - Published for GSC -

15 Mar 2019 PP

2 Chile Solar JV SpA Project Design Document (Ver.02.0)

6 Sep 2019 PP

3 Chile Solar JV SpA Project Design Document (Ver.03.0)

14 Nov 2019 PP

4 Chile Solar JV SpA ER Calculation sheet (Ver.01.0) 15 Mar 2019 PP

5 Chile Solar JV SpA ER Calculation sheet (Ver.02.0) 14 Nov 2019 PP

6 Chile Solar JV SpA EF Calculation sheet (Ver.01.0) 15 Mar 2019 PP

7 Chile Solar JV SpA EF Calculation sheet (Ver.02.0) 14 Nov 2019 PP

8 Chile Solar JV SpA MoC statement 18 Jul 2019 PP

9 Chile Solar JV SpA Written confirmation on MoC statement

18 Jul 2019 PP

10 Chile Solar JV SpA Entity registration document 1 Mar 2018 PP

11 Chile Solar JV SpA Share purchase agreement 21 Jan 2019 PP

12 Chile Solar JV SpA Board meeting minute 25 Feb 2019 PP

13 National Energy Commission of Chile(CNE)

Gross Generation of Grid ‘Generacion Bruta’ (SEN 2018, SING 1999-2017, SIC 1996-2017)

- CNE website


Fuel Consumption of Power Plants of the National Electricity System ‘Consumos de Combustibles’ (2008-2019)

- CNE website


Installed Capacity Generation Feb 2019 CNE website

16 EY Feasibility Study Report 17 Nov 2017 PP

17 KOEN Board Meeting Paper regarding Investment Decision

6 Dec 2017 PP

18 Fotovoltaica de Los Andes SpA, Hanwha Q Cells Chile SpA

EPC Contract (Los Andes) 10 Jan 2019 PP

19 Agriculture Ministry Los Andes Land Lease Aspects 24 Jul 2017 PP

20 Obras Municipality Build Permit 27 Feb 2019 PP

21 SEA RCA 6 May 2016 PP

22 Environment Evaluation Service

Letter of Pertinence 30 Jan 2019 PP

23 Chile Solar JV SpA Site map of PV power plants - Los Andes PV CDM Project

12 Feb 2019 PP

24 National Congress of Chile

Environment Law of Chile (Ley 19300)

9 Mar 1994 PP

25 National Congress of Chile

Environment Law of Chile (Ley 20417)

26 Jan 2010 PP


Sistemas de Medidas para Transferencias Economicas

PP

27 TUV SUD Korea Energy Yield Assessment Report of Luna PV Power plant

June 2017 PP

28 TUV SUD Korea Energy Yield Assessment Report of SDN PV Power plant

June 2017 PP

29 Hanwah Q Cell Chile SpA

Technical Summary Report of PV power plant sites

- PP

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30 UNFCCC CDM PA and PoA database - UNFCCC website

31 Chile Solar JV SpA Notification letter to local authorities regarding LSC

1 Oct 2018 PP

32 Chile Solar JV SpA LSC meeting notice to local residents

1 Oct 2018 PP

33 Hanwah Q Cell Chile SpA, Chile Solar JV SpA, Santerno,

Technical Specifications Documents (PV site layout, Inverter, Module)

- PP

34 UNFCCC CDM project standard for project activities (Ver. 02.0)

29 Nov 2018 UNFCCC website

35 UNFCCC CDM project cycle procedure for project activities (Ver. 02.0)


36 UNFCCC CDM validation and verification standard for project activities (Ver. 02.0)


37 UNFCCC AMS-I.D. small-scale methodology: Grid connected renewable electricity generation (Ver.18.0)


38 UNFCCC Methodological Tool: Tool to calculate the emission factor for an electricity system (Ver.07.0)

13 Aug 2018 UNFCCC website

39 UNFCCC Methodological Tool: Demonstration of additionality of small-scale project activities (Ver.12.0)

26 Apr 2018 UNFCCC website

40 UNFCCC Methodological Tool: Assessment of debundling of small-scale project activities (Ver.04.0)


41 UNFCCC General guidelines for SSC CDM methodologies (Ver.22.1)


42 UNFCCC Guidelines for completing the small-scale CDM project activities bundling form (Ver.02.0)

2 Mar 2012 UNFCCC website

43 UNFCCC Glossary: CDM terms (Ver.10.0) 12 Sep 2019 UNFCCC website

44 UNFCCC Validation report for the CDM Project Activity: AES GENER S.A. Los Andes Photovoltaic Farm IN CHILE (Report No: CCL0198/LAPF/2013/07/31)

31 July 2013 UNFCCC website

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Appendix 4. Clarification requests, corrective action requests and forward action requests

Table 1. CLs from this validation

CL ID 01 Section no. D.6 Date: 10/06/2019

Description of CL

Refer to paragraph 215 of the CDM project standard for project activities (ver. 02), the PP shall provide a detailed summary of the environmental and socio-economic impact assessment and provide references to all relevant supporting document. In the PDD, it states that “Specifically, the project is approved by the national authority…” However, it is not clear which national authority it is referring to. As a result, this is requested to be clarified.

Project participant response Date: 14/11/2019

PP has submitted the revised PDD (ver.03.0).

Documentation provided by project participant

Revised PDD (ver.03.0)

DOE assessment Date: 04/12/2019

The validation team has cross-checked the revised PDD(ver.03.0) and confirmed that the national authority is the SEA(Servicio de Evaluacion Ambiental). The PDD is revised accordingly. Therefore, the validation team closed CL1.


Description of CL

Refer to paragraph 112 of CDM project standard for project activities (veer.02), the PP to obtain a letter of approval from the DNA of each Party involved in the proposed CDM project activity. Based on the desk review and interview with project manager, the validation team found that the letter of approval has not been issued by the DNA of host party and thus sufficient information is not available to determine whether relevant requirements have been met. Therefore, this is requested to be clarified.


PP has revised the PDD and submitted the issued Letter of Approval.


Revised PDD(ver.03.0), Letter of Approval issued by DNA of Chile.


The validation team has checked the written Letter of Approval for authenticity, and confirms the following which are verified to be unconditionally indicated in the LoA:

(a) The sole host party, Chile, is a Party to the Kyoto Protocol; (b) The participation in the proposed CDM project activity is voluntary; (c) The proposed CDM project activity contributes to achieving the sustainable development of Chile; (d) There is no difference between the title in the LoA and that in the PDD(ver.03.0). (e) The host party is aware that the proposed small-scale CDM project activities taking place in its

territory are part of the bundle. Therefore, the validation team has closed CL2.


Description of CL

Refer to paragraph 117 of CDM project standard for project activities (ver.02), the PP to define their modalities of communication with the CDM executive board, and present them in a “Modalities of communication statement (MoC statement). The MOC statement has not been provided to the validation team. And accordingly, sufficient information is not available to determine whether relevant requirements have been met. Therefore, this is requested to be clarified.


PP has revised PDD and submitted completed MoC statement.


Revised PDD(ver. 03.0), Modalities of communication statement


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The validation team has reviewed the MoC statement dated 18 July 2019 submitted by PP, and confirms the following:

a) The MoC includes all the required information accurately as per the CDM-MOC-FORM, including its annex 1;

b) The MoC has been completed using the valid version of the CDM-MOC-FORM (ver. 3.0) c) The PP’s authorized signatories signing the CDM-MOC-FORM correspond to the PP’s authorized

signatories in the Annex 1 of CDM-MOC-FORM. Therefore, the validation team has closed CL3.

Table 2. CARs from this validation

CAR ID 01 Section no. D.3 Date: 10/06/2019

Description of CAR

Based on the document review and site visit, the validation team found that the PDD stated that there is no public funding or ODA involved in this project activity. However, supporting document or evidence for no public funding or ODA involvement has not been provided by the PP. Therefore, the validation team has raised CAR1.


PP has submitted the Board of Directors meeting document


Board of Directors meeting document


The validation team has reviewed the Board of Directors meeting document submitted by PP, and confirmed that the project is owned and will be operated by Chile Solar JV SpA, the sole PP of the proposed CDM project activity, which has been established by KOEN Chilean Hold Co. and COPA Fund Chilean Hold Co., the equity holders (50% each) of the Chile Solar JV SpA. By reviewing the supporting document and project investment structure, it is affirmed that there is no public or ODA involved in the proposed project activity. Therefore, validation team has closed CAR1.

CAR ID 02 Section no. D.3 Date: 10/06/2019

Description of CAR

Based on the document review and site visit, the validation team found that the PP used the Tool20 (Ver04.0) as requested by the applied methodology. However, the PP needs to follow the steps, sub-steps of the Tool in more detail. Therefore, the validation team has raised CAR2.


PP has revised PDD and submitted EPC contract, Site map.


Revised PDD(ver.03.0) and supporting doucments.


The validation team has reviewed the revised PDD(ver.03.0) submitted by PP, and confirmed that steps, sub-steps of the Tool have been correctly followed in accordance with the Tool. Therefore, validation team has closed CAR2.

CAR ID 03 Section no. D.4.5 Date: 10/06/2019

Description of CAR

The PP shall provide data sources and references of the baseline scenario. In the PDD(ver.01.0), it states that “Calculations for this combined margin is based on data from an official source (where available) and made publicly available.” However, the PP needs to clearly describe the official source accordingly.


PP has revised PDD to clarify the official source and apply valid version (7.0) of the methodological tool : Tool to calculate the emission factor for an electricity system”.


PDD(ver.03.0), EF calculation sheet(Ver.02.0)


The validation team has reviewed the revised PDD(ver.03.0) submitted by the PP, and confirmed that data source for calculations for the combined margin is clearly described and the valid Tool is applied. Therefore, validation team has closed CAR3.

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CAR ID 04 Section no. D.4.6 Date: 10/06/2019

Description of CAR

Refer to paragraph 85 of CDM project standard for project activities (ver 02), the PP has to determine the start date of the proposed CDM project activity and provide a description of how this start date has been determined in accordance with the definition of start date in the Glossary: CDM terms. The starting date of the project activity is in accordance with the Glossary: CDM terms. However, the PP has not specified the date of submission of the prior consideration form to the Chilean DNA and/or the UNFCCC.


PP has revised PDD accordingly.


PDD(ver.03.0)


The validation team has reviewed the revised PDD(ver.03.0) submitted by the PP, and confirmed that the date of submission of the prior consideration form to the Chilean DNA and/or the UNFCCC is 25/04/2019, which was cross-checked by referring to UNFCCC CDM website, and corrected the PDD accordingly. Therefore, validation team has closed CAR4.

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Table 3. FARs from this validation

FAR ID N/A Section no. N/A Date: N/A

Description of FAR

N/A

Project participant response Date: N/A

N/A


N/A

DOE assessment Date: N/A

N/A

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Document information

Version Date Description

04.0 31 May 2019 Revision to:

Ensure consistency with version 02.0 of the “CDM validation

and verification standard for project activities” (CDM-EB93-

A05-STAN);

Make editorial improvements.

03.1 11 January 2018 Editorial revision to remove an erroneously included instruction paragraph in section D.2 (Identification of project type).

03.0 31 October 2017 Revision to align with the requirements of the “CDM validation and verification standard for project activities” (version 01.0).

02.0 22 July 2016 EB 90, Annex 3

Revision to include provisions related to automatically additional project activities.

01.0 23 March 2015 Initial publication.

Decision Class: Regulatory Document Type: Form Business Function: Registration Keywords: project activities, validation report