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UNFCCC/CCNUCC

CDM – Executive Board

PROJECT DESIGN DOCUMENT FORM

FOR CDM PROJECT ACTIVITIES (F-CDM-PDD)

Version 04.1

PROJECT DESIGN DOCUMENT (PDD)

Title of the project activity Renewable Wind Energy by Fortune Five

Hydel Projects (P) Limited

Version number of the PDD 02

Completion date of the PDD 15/10/2012

Project participant(s) Fortune Five Hydel Projects Private Limited

Host Party(ies) India

Sectoral scope and selected methodology(ies) Sectoral Scope: 01 Energy industries

(renewable - / non-renewable sources)

Methodology: ACM0002 – Version 12.3.0 -

Consolidated baseline methodology for grid-

connected electricity generation from

renewable Sources

Estimated amount of annual average GHG

emission reductions

179,474 t CO2 e

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SECTION A. Description of project activity

A.1. Purpose and general description of project activity

>>

Fortune Five Hydel Projects Private Limited (Fortune Five) has planned to establish a 100.8MW Wind

Farm near Basavana Bagewadi Town & Taluka, Bijapur District in Karnataka State, India. The wind

farm consists 63 Nos. 1.6MW Wind Turbine Generators (WTGs). The installation of WTGs are spread

over in the villages Ingaleshwar, Rabinal, Dindvar, Karabantanal, Salvadgi in Basavana Bagewadi

Taluka. The project activity is expected to generate about 200,090 MWh of power annually at a PLF of

22.66% and would reduce approximately 179,474 tCO2 / annum of GHG emissions. The power generated

from the project activity would be exported to Southern grid.

The project activity has identified the land required for the project and acquiring the same is expected to

be completed by September 2012. Executed contract with GE India Industrial Private Limited on

05/01/2012 for supply, installation and commissioning services of Wind Turbine Generators of 1.6 MW

each. Achieved financial closure during December, 2011. The commissioning of WTGs is expected to be

between 01/01/2013 and 30/06/2013.

The purpose of the project activity is generation of clean energy by tapping wind velocity, which would

be exported to the Southern grid of India. Since the project activity does not consume any fossil fuels it

contributes to reduction of greenhouse gases emissions, which would have otherwise been generated by

the operation of grid-connected power plants and by addition of new generation sources.

The electricity generated at 690V by each wind turbine would be stepped up by Unit Transformer to 33

kV voltage level and would be transmitted to wind farm pooling substation through a net work of 33 kV

transmission lines. At the wind farm pooling substation, the power would be further stepped to 220 kV

level and transmitted through 220 kV double circuit lines connected to Karnataka Power Transmission

Corporation Limited’s substation at Basavana Bagewadi, which is located at about 12 km from the wind

farm.

The technology employed in wind power generation is conversion of kinetic energy of wind into

mechanical energy by using wind turbine and subsequently into electrical energy.

No power generation facility existed at the project site prior to the start of implementation of the project

activity.

The scenario existing prior to the start of implementation of the project activity is same as baseline

scenario identified for the project activity as described under Sec.B.4.

The project activity contributes to the following sustainable development indicators:

Social well being

The project activity provides direct and indirect job opportunities to the local population during erection.

The project helps to reduce demand-supply gap in electricity in the state. The project leads to rural

upliftment and infrastructure development in the areas around the project such as improving the

condition of roads connecting to the project site.

Economic well being

The investment on the project activity would ensure economic development of the local people.

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The project activity provides business opportunity to the local stakeholders such as suppliers,

manufacturers, contractors etc.

The project proponent desires to spend 2% of the revenue from sale of Carbon Credits towards local area

development.

Environmental well being

The Project activity would utilize wind velocity for generating and supplying power to the grid which is

dominated by power generated using fossil fuels such as coal, lignite and gas etc and hence it will result

in reduction of GHG emissions and contributes to preserving and improving the environment.

Technological well being:

The project activity is environmentally safe that paves the way for increased interest in wind energy in the

country and this in turn would push the investment into research for creating better wind turbines.

As evident from the foregoing, the project activity would contribute to the sustainable development of

the host country.

A.2. Location of project activity

A.2.1. Host Party(ies)

>>

India

A.2.2. Region/State/Province etc.

>>

Karnataka State

A.2.3. City/Town/Community etc.

>>

Taluka: Basavana Bagewadi

Village : Ingaleshwar, Rabinal, Dindvar, Karabantanal and Salvadgi Villages

District : Bijapur

A.2.4. Physical/Geographical location

>>

The project activity is located near Basavana Bagewadi Town & Taluka of Bijapur District in Karnataka

State. The site is approachable by NH -13 from Bijapur on the way to Mulgund. The nearest Airport to

the project site is located at a distance of 230 Km at Hubli and nearest Railway Station is located at a

distance of 45.Km at Bijapur.

The geographical co-ordinates of the project activity is in the range of:

Latitude : 16 30’0”N – 16 41’42”N

Longitude : 76 0’0”E – 76 7’22”E

Physical location of the project site is shown below.

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Maps depicting project location

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A.3. Technologies and/or measures

>>

The technology adopted in the wind power generation is conversion of kinetic energy into mechanical

energy and then converted into electrical energy by the generators. In this process there would be no

greenhouse gas emissions or burning of any fossil fuels. Thus, electricity would be generated through

sustainable means without causing any negative impact on the environment. Therefore, the technology is

environmentally safe and sound.

No power generation facility existed at the project site prior to the start of implementation of the project

activity.

The project activity is installation of a new grid-connected renewable power plant and hence as per the

methodology ACM0002 Version 12.3.0, the baseline scenario is “Electricity delivered to the grid by the

project activity would have otherwise been generated by the operation of grid-connected power plants

and by the addition of new generation sources”.

No technology transfer is envisaged for the project activity.

The technical specifications of the WTGs selected for the project activity are given below.

Item Particulars

Make GE

Model 1.6 xle

Rating 1600 kW

Rotor Diameter 82.5 m

Hub height 80 m

Number of blades 3

Swept area 5346 m2

Orientation Upwind

Speed Regulation Pitch Control

Type of Generator Doubly Fed Induction (DFM)

Voltage 690 V

Frequency 50 Hz

Cut-in-wind speed 3.5 m / s

Rated wind speed 11.5 m / s

Cut-out wind speed 25 m / s

Design Life1 20 years

1 Fact Sheet – 1.6 – 82.5 Wind Turbine : http://www.ge-

energy.com/content/multimedia/_files/downloads/GEA18112B_1.6-82.5%20Wind%20Turbine_r1.pdf

http://www.ge-energy.com/content/multimedia/_files/downloads/GEA18112B_1.6-82.5%20Wind%20Turbine_r1.pdf


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A.4. Parties and project participants

Party involved

(host) indicates a host Party

Private and/or public

entity(ies) project participants

(as applicable)

Indicate if the Party involved

wishes to be considered as

project participant (Yes/No)

Party A (host)

India

Private entity A

Fortune Five Hydel Projects

Private Limited

No

A.5. Public funding of project activity

>>

The project activity does not involve any public funding from Annex-1 countries.

SECTION B. Application of selected approved baseline and monitoring methodology

B.1. Reference of methodology

>>

Title: Consolidated baseline methodology for grid-connected electricity generation from renewable

Sources

Ref : ACM0002 – Version 12.3.0

Tools used: 1) Tool for the demonstration and assessment of additionality (Version 06.0.0)

2) Tool to calculate the emission factor for an electricity system (Version 02.2.1)

B.2. Applicability of methodology

>>

In the methodology ACM0002 Version 12.3.0, applicability criteria for various projects are mentioned.

Applicable conditions for the present activity and fulfillment of the same are mentioned below.

Applicability criteria Project activity

This methodology is applicable to grid-connected

renewable power generation project activities that

(a) install a new power plant at a site where no

renewable power plant was operated prior to the

implementation of the project activity (greenfield

plant); (b) involve a capacity addition; (c) involve

a retrofit of (an) existing plant(s); or (d) involve a

replacement of (an) existing plant(s).

The project activity is installation of new Wind

power plant for generation of power utilizing wind

velocity and the generated power will be exported

to Southern grid. No renewable power plant was

installed and operated at the proposed project

location prior to the implementation of the project

activity.

The project activity is the installation, capacity

addition, retrofit or replacement of a power

plant/unit of one of the following types: hydro

power plant/unit (either with a run-of-river

reservoir or an accumulation reservoir), wind

power plant/unit, geothermal power plant/unit,

solar

power plant/unit, wave power plant/unit or tidal

power plant/unit

The project activity is installation of new Wind

power projects.

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In the case of capacity additions, retrofits or

replacements (except for capacity addition projects

for which the electricity generation of the existing

power plant(s) or unit(s) is not affected): the

existing plant started commercial operation prior to

the start of a minimum historical reference period

of five years, used for the calculation of baseline

emissions and defined in the baseline emission

section, and no capacity addition or retrofit of the

plant has been undertaken between the start of this

minimum historical reference period and the

implementation of the project activity;

Not applicable. The project activity is installation

of new Wind power projects.

In case of hydro power plants, one of the following

conditions must apply:

a) The project activity is implemented in an

existing single or multiple reservoirs, with no

change in the volume of any of reservoirs; or

b) The project activity is implemented in an

existing single or multiple reservoirs, where the

volume of any of reservoirs is increased and the

power density of each reservoir, as per definitions

given in the Project

Emissions section, is greater than 4 W/m2 after the

implementation of the project activity; or

c) The project activity results in new single or

multiple reservoirs and the power density of each

reservoir, as per definitions given in the Project

Emissions section, is greater than 4 W/m2

after the

implementation of the project activity



In case of hydro power plants using multiple

reservoirs where the power density of any of the

reservoirs is lower than 4 W/m2 all the following

conditions must apply:

• The power density calculated for the entire

project activity using equation 5 is greater than 4

W/m2;

• All reservoirs and hydro power plants are located

at the same river and where are designed

together to function as an integrated project that

collectively constitutes the generation capacity of

the combined power plant;

• The Water flow between the multiple reservoirs

is not used by any other hydropower unit which is

not a

part of the project activity;

• The total installed capacity of the power units,

which are driven using water from the reservoirs

with a power density lower than 4 W/m2, is lower

than 15MW;



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• The total installed capacity of the power units,

which are driven using water from reservoirs with

a

power density lower than 4 W/m2, is less than 10%

of the total installed capacity of the project

activity from multiple reservoirs.

The methodology is not applicable to the

following:

• Project activities that involve switching from

fossil fuels to renewable energy sources at the

site of the project activity, since in this case the

baseline may be the continued use of fossil

fuels at the site;

• Biomass fired power plants;

• A hydro power plant that results in the creation of

a new single reservoir or in the increase

in an existing single reservoir where the power

density of the power plant reservoir is less

than 4 W/m2.

The project activity is a new wind power project. It

does not involve switching from fossil fuels to

renewable energy sources and also not fall under

the category of biomass fired power plant and

hydro power plant. Hence, the methodology is

applicable to the project activity.

Applicability Conditions of Tools referred by

the Methodology

“Tool to calculate the emission factor for an

electricity system” Version 02.2.1

This tool may be applied to estimate the OM, BM

and/or CM when calculating baseline emissions for

a project activity that substitutes grid electricity,

i.e. where a project activity supplies electricity to a

grid or a project activity that results in savings of

electricity that would have been provided by the

grid (e.g. demand-side energy efficiency

projects).In case of CDM projects the tool is not

applicable if the project electricity system is

located partially or totally in an Annex I country.

The project activity is a Wind Farm which

generates and supplies the electricity to grid and

hence this tool is applicable to the project activity

to estimate OM, BM and CM for calculating

baseline emissions.

The project activity is located in Karnakata State,

India and does not fall under Annex I country and

hence this tool is applicable to the project activity.

“Tool for the demonstration and assessment of

additionality” Version 06.0.0”

Use of this tool is mandatory to demonstrate

additionality of the project as per methodology

ACM0002 Version 12.3.0

“Combined tool to identify the baseline scenario

and demonstrate additionality”

This tool is only applicable to methodologies for

which the potential alternative scenarios to the

proposed project activity available to project

participants cannot be implemented in parallel to

the proposed project activity.

The project activity is installation of Greenfield

facility which supplies electricity generated to grid

and the methodology ACM0002 Version 12.3.0

applied for this project activity prescribed baseline

scenario. Further as per Paragraph 115 of VVS

(Version 2.0) “where the baseline scenario is

prescribed in the approved methodology, no further

analysis is required”. Hence, use of this tool is not

necessary.

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“Tool to calculate project or leakage CO2 emissions

from fossil fuel combustion”

This tool can be used in cases where CO2 emissions

from fossil fuel combustion are calculated based on

the quantity of fuel combusted and its properties.

The project activity is a Wind Farm which

generates electricity utilizing wind velocity and it

does not involve combustion of fossil fuels. Hence

use of this tool is not required.

The project meets the criteria mentioned in the methodology ACM0002, Version 12.3.0 and hence

justifies the selection of approved consolidated baseline methodology for this project activity.

B.3. Project boundary

As per the methodology ACM 0002 Version 12.3.0, 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 to. Accordingly, the project boundary encompasses the physical and

geographical site of the Wind farm till the power evacuation system. As per the CO2 baseline database

published by Central Electricity Authority (CEA) there are two Indian grid system viz., 1) integrated

Northern, Eastern, Western and North-Eastern (NEWNE) and 2) Southern grid. Since the project activity

falls under Southern grid, all the power plants connected to Southern grid are also forms part of project

boundary.

Power plants

connected to grid

Project Boundary

33 / 220 kV pooling Sub-

station at Ingaleshwar

63 WTGs

Consumers

220/110/33/11kV Sub-

station at Basavana

Bagewadi

CM

Metering

MM

MM

CM

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Source GHGs Included? Justification/Explanation B

ase

lin

e sc

ena

rio

Source 1

CO2 emissions from

electricity generation

in fossil fuel fired

power plants that are

displaced due to the

project activity

CO2 Included Main emission source

CH4 No Minor emission source

N2O No Minor emission source

Source 2 CO2

CH4 - Nil -

N2O

Pro

ject

scen

ari

o

Source 1

Electricity generation

by installing wind

turbine generators

CO2 No Not applicable since no

emissions occur from project

operation

CH4 No Not applicable since no


operation

N2O No Not applicable since no


operation

Source 2 CO2

CH4 - Nil -

N2O

B.4. Establishment and description of baseline scenario

>>

According to the approved consolidated methodology ACM0002, version 12.3.0, baseline scenario for

the installation of a new grid-connected renewable power plant is as under:

“Electricity delivered to the grid by the project activity would have otherwise been generated by the

operation of grid-connected power plants and by the addition of new generation sources, as reflected in

the combined margin (CM) calculations described in the Tool to calculate the emission factor for an

electricity system”.

As the proposed project activity is new renewable grid-connected power plant, the applicable baseline

scenario for this project is the electricity delivered to the grid by the project activity which would have,

otherwise, been generated by the operation of grid-connected power plants and by addition of new

generation sources, as reflected in the combined margin (CM) calculations.

B.5. Demonstration of additionality

>>

Additionality of the project activity is demonstrated using the Methodological tool “Demonstration and

assessment of additionality” Version 06.0.0 as specified by the approved methodology ACM0002

Version 12.3.0 as described below: context

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

regulations

The methodology ACM 0002 Version 12.3.0 states that if the project activity is the installation of a new

grid-connected renewable power plant/unit, the baseline scenario will be grid connected power plant.

Paragraph 115 of VVS (Version 2.0) states that “where the baseline scenario is prescribed in the

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approved methodology, no further analysis is required.” Hence, no further analysis on the alternatives is

necessary.

As the project activity is installation of a new grid connected renewable power plant, no further analysis

on the alternatives is necessary basing on the above referred clause(s).

Step 2. Investment analysis

Sub-step 2.a.: Determine appropriate analysis method

The tool for additionality provides the following three options for investment analysis.

Option – I : Simple cost analysis

Option - II : Investment comparison analysis

Option – III : Benchmark analysis

Option - I: Simple cost analysis is not applicable to the project activity as the CDM revenues are not the

only means of income.

Option - II: Since the alternative to the project activity is the import of electricity from the grid,

investment comparison analysis is not appropriate for the project

Option - III: The Benchmark analysis is considered appropriate for the project activity as the alternative

to the project is supply of electricity from a grid and the choice of the project proponent is to invest or

not to invest in the project activity. Therefore, the selection of benchmark analysis is in conformity with

the guidance 19 of Annex 5 of EB 62.

Sub-step 2b: Option III - Benchmark analysis

Since the project is funded by a mix of debt and equity, post tax project IRR is considered as an

appropriate financial indicator as the financial indicator accounts for both the cost of debt and return on

equity. The project proponent seeks to demonstrate the addtionality of the project through Project IRR.

The IRR so computed is compared with a benchmark indicator to assess the financial attractiveness of

the project.

As per the guidance note issued by CDM EB at its 62nd

meeting (Annex 5, item 12, selection and

validation of appropriate benchmarks) “In case where benchmark approach is used the applied

benchmark shall be appropriate to the type of IRR calculated. Local commercial lending rates or

weighted average cost of capital (WACC) are appropriate benchmarks for a project IRR”. Accordingly,

Weighted Average Cost of Capital (WACC) has been worked out, the details of which are furnished

below:

Weighted average cost of capital (WACC) is calculated as weighted average cost of equity and cost of

debt as illustrated below:

WACC = E/V * Re + D/V * Rd * ( 1- Tc)

Where:

Re = cost of equity

Rd = cost of debt

E = Equity

D = Debt

V = E + D

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E/V = percentage of financing that is equity

D/V = percentage of financing that is debt

Tc = Corporate tax rate

Cost of Equity (Re) :

The real cost of equity of 11.75% as provided in Appendix to the EB 62 Annex 5 “Guidelines on the

Assessment of Investment Analysis” for India applicable to the Group I project categories (Energy

Industries) is considered. Further as per the said guidelines, the cost of equity (Real term value) has been

converted to the nominal value by adding inflation rate of 6%2 (RBI projected rate).

Cost of Debt (Rd) :

Cost of debt is defined as the rate at which lender’s agree to lend money to a project. The additionality

tool and the guidance to investment analysis clarify that the benchmark for a project with more than one

potential developer should not be based on project specific parameters but should represent the standard

in the market. Accordingly, the bank prime lending rate prevailing at the time of investment decision

(November, 2011) has been considered as the cost of debt. The prime lending rate available at the time of

investment was 14.75%3; it has been considered as the cost of debt. Interest costs are tax deductible;

therefore, in order to arrive at the post tax cost of debt, the cost of debt is multiplied with the factor, (1-

applicable marginal tax rate i.e., 20.01%).

As per the Detailed Project Report the debt equity (E/V and D/V) ratio is 70:30. The envisaged Equity

(E) is Rs.1952.89 million and Debt (D) is Rs.4556.75 million.

Based on the above, the WACC works out to 13.58%. The selected benchmark is in conformity with

guidance 12 and 13 of Annex 5, EB 62. The WACC calculation is provided in the IRR analysis

worksheet.

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

The IRR analysis is prepared based on detailed project report available at the time of investment

decision. While computing the IRR all the benefits and fiscal concessions available to the project have

been taken into account.

Assumptions underlying Financial Indicators

Parameters Value Source for input Values

Project cost (Rs.in million) 6509.64 Detailed Project Report /Offer from

Equipment supplier and contract executed

with GE India Industrial private limited.

Means of Finance (Rs.in million):

-Equity (30%)

-Term Loan (70%)

1952.89

4556.75

Detailed Project Report

Annual Gross Energy (MWh) 200090 Detailed Project Report Plant load Factor (%) 22.66 Detailed Project Report and Report on

Energy Estimation prepared by CECL a

third party engineering company

2 http://rbi.org.in/scripts/PublicationsView.aspx?id=14335 – Sec.3

3 http://www.statebankofindia.com/user.htm

http://rbi.org.in/scripts/PublicationsView.aspx?id=14335

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Derating after 10 years (%) 5 Detailed Project Report

Tariff (Rs./kWh) 3.70 Detailed Project Report / KERC order-

December, 2009

Operation & Maintenance

- % of Capital cost

- % of escalation per annum

1.3

5


Generation based incentive (GBI) (in

Rs.) per unit of electricity fed into the

grid with a cap of Rs.62 Lakhs/MW

0.50 Operational guidelines for

implementation of “Generation Based

Incentive” for grid connected wind power

projects issued by Indian Renewable

Energy Development Agency Ltd.,

(IREDA) in line with the Scheme for

implementation of GBI issued by

Ministry of New and Renewable Energy

(MNRE) dt. 17.12.2009.

Administrative expenses (Rs.in million)

Annual escalation (%)

6

5


Interest on Term Loans (%) 13 Term Loan sanction letter Loan Repayment period (Years) 12 Detailed Project Report Moratorium period 1 Detailed Project Report Income Tax - MAT 2011-12 (%) 20.01 Indian Income Tax Act 1961

http://incometaxindiapr.gov.in/incometaxi

ndiacr/contents/forms2010/pamphets/CO

MPANIES_2013_14.htm

Income Tax – Regular 2011-12 (%) 32.45 Indian Income Tax Act 1961 http://incometaxindiapr.gov.in/incometaxi

ndiacr/contents/forms2010/pamphets/CO

MPANIES_2013_14.htm Life time of the project activity 20 years Detailed Project Report

The PLF is based on the “Report on Energy Estimation prepared by Consolidated Energy

Consultants Limited (CECL), Bhopal a third party engineering consultant for wind energy and

therefore conforms to Annex11, EB 48. The financial indicator has been calculated for 20 years which is

the operating life of the project based on the DPR, and hence represents “expert opinion”, which

conforms to Annex 15, EB 50.

Based on the above assumptions, the project IRR works out to 7.25% in contrast to the benchmark return

of 13.58% chosen to compare project IRR. Therefore, the project is not a business-as-usual scenario and

hence additional. This conclusion has been tested by subjecting critical parameters to reasonable

variations.

Sub-step 2.d.: Sensitivity Analysis

The “tool for the demonstration and assessment of additionality” requires that a sensitivity analysis is

conducted to check weather the financial attractiveness is robust to reasonable variations in the critical

assumptions. The Guidance on the Assessment of Investment Analysis issued by the EB in its 62nd

Meeting requires subjecting those variables which constitute more than 20% of project cost or total

project revenue to sensitivity analysis and considering a +/- 10% variations in the selected variables.

Accordingly, the variables viz., generation, tariff, project cost and O&M are selected for sensitivity

analysis.

http://incometaxindiapr.gov.in/incometaxindiacr/contents/forms2010/pamphets/COMPANIES_2013_14.htm






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The results of the sensitivity analysis for the IRR are furnished below:

Sensitivity Analysis

Variation % -10% 0% 10%

PLF 5.56% 7.25% 8.87%

Project cost 9.11% 7.25% 5.65%

Tariff 5.66% 7.25% 8.77%

O & M Cost 7.51% 7.25% 6.98%

Bench Mark 13.58%

With CDM 9.51%

The sensitivity analysis proves that the project is unlikely to be financially viable even under the most

optimistic conditions of generation (PLF) going up by 10% or project cost going down by 10% or tariff goes

up by 10% or O & M cost going down by 10%. In either case, the project IRR remains at 8.87%, 9.11%,

8.77% and 7.51% respectively in contrast to the benchmark return of 13.58%. This proves that the project

activity is not a business-as-usual scenario. The project IRR in the baseline scenario improves to 9.60%

considering revenue from CDM in contrast to the benchmark return of 13.58%. Hence, the project requires

CDM benefits to make it financially attractive.

The Project will become non-additional only if the PLF goes up by 41.60% or the project cost drops down by

28.40% or tariff goes up by 44.70%. Even if the O&M cost reduce by 100% the IRR of the project activity

does not reach the benchmark. All these scenarios are not possible as explained below:

There is no possibility of PLF reaching 31.95% (increase in PLF by 9.43% from the considered PLF of

22.66%). Karnataka Electricity Regulatory Commission (KERC) in its tariff order dt.11th Dec 2009 has

approved a PLF of 26.5% for determination of tariff. The IRR works out to 9.96% considering the PLF of

26.5% as approved by KERC, which is still below the benchmark of 13.58%.

As regards the project cost, the cost is firmed up at Rs.6110 million as against the estimated cost of Rs.6509.64

million in the DPR. The reduction in the project cost is 6.5% and there is no scope for further reduction in the

project cost as the same is firmed up.

As per KERC Order dt.11th

December 2009, the tariff is fixed at Rs.3.70 per kWh without any escalation for

the first 10 years from the date of signing of the PPA. Any assumption on tariff applicable from 11th year

onwards is highly uncertain today and do not provide a reliable basis for investment decisions. Hence the tariff

applicable at the time of investment decision is considered for 11th year to 20

th year.

O & M Costs includes salaries and wages, repairs and maintenance and various other expenses required for the

operation as well as maintenance of the plant and hence there is no possibility of decrease in O & M charges.

The sensitivity analysis proves that the project is unlikely to be financially attractive even under the most

optimistic conditions.

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Outcome of Step 2: The sensitivity analysis proves that the project is not financially attractive without

CDM support. With the CDM support the project IRR improves to 9.51%. Therefore, CDM benefits are

imperative for the project to alleviate the financial barrier.

Step 3 Barrier analysis

As the sensitivity analysis under Step 2 demonstrated that the proposed CDM project activity is unlikely

to be the financially attractive, step 3 is skipped.

Step 4 Common practice Analysis

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

Common practice analysis has been conducted as per the procedure laid down in Additionality Tool

(version 06.0.0). As required by the Additionality Tool, the entire country has been defined as the

geographical area for the purpose of common practice analysis.

Step 1:

The applicable output range of the designed capacity of the project (± 50% of the capacity) is 50.4 MW

(50% of installed capacity) to 151.2 MW (150%) of installed capacity). All the data required for the

common practice analysis have been sourced from CEA - CO2 Baseline Database (version 07) and the

data of wind power projects as available in the Directory-India Wind Power 2011 published by

Consolidated Energy Consultants Limited (CECL), Bhopal has been used.

The registered CDM/VCS projects (2 hydro projects consisting of 7 units, 2 thermal power plants and 6

wind projects which are falling within +/-50% range) have been excluded in the analysis.

There are no projects which have commissioned after the start date of the project activity.

With regard to biomass power / solar power projects there is no complete data available for all the states

in India, to include in the analysis. However, based on the information available in few state nodal

agency websites, the biomass/solar projects already commissioned are having an installed capacity of

below 25MW and these will not fall under +/- 50% of the output range of the capacity of the project

activity.

The following weblinks of state nodal agencies presented list of commissioned biomass / solar power

projects. It is observed from these sources that the maximum capacity of each biomass / solar power

projects already implemented is below 25MW.

Biomass Power Projects:

http://www.nedcap.gov.in/Biomass_Energy.aspx?ID=31

http://www.kredltest.in/Bioreport.aspx

http://hareda.gov.in/?model=pages&nid=155

http://www.mahaurja.com/PDF/Biomass_Proj_StatusC.pdf

Solar Power Projects:

http://www.nedcap.gov.in/Biomass_Energy.aspx?ID=31

http://www.kredltest.in/Bioreport.aspx


http://www.mahaurja.com/PDF/Biomass_Proj_StatusC.pdf

UNFCCC/CCNUCC


http://nedcap.gov.in/Solar_Energy.aspx?ID=70

http://kredltest.in/Solargridreport.aspx


http://www.teda.in/

(It is appearing in the home page that the achievement with respect to Solar Power upto 31.03.2012 is

10MW)

Step 2:

Total number of projects (Nall) which have commenced commercial operation before the start date of the

project activity and which are falls within +/- 50% of the output capacity of the project activity are 482,

the details of which are furnished below:

Sector Total (Nos.)

Hydro 243

Wind 0

Thermal / Nuclear 239

Total 482

Nall - All plants of capacities ranging from 50.4MW to 151.2 MW

Step 3:

The hydro and thermal power plants are identified as “technology different” projects since in both cases

the energy source / fuel, access to technology, financial flows, promotional & regulation policies are

different.

Hence, projects which apply technology different from that of the project activity (Ndiff ) as explained

above are also 482 as per the plants identified in Step 2 above. The details of which are furnished below:

Ndiff - Plants operating with different technologies

Sector Total (Nos.)

Hydro 243

Wind 0

Thermal / Nuclear 239

Total 482

.

Step 4:

The plants using technology similar to the technology used in the project activity in all plants that deliver

same output or capacity as the project activity =

http://nedcap.gov.in/Solar_Energy.aspx?ID=70

http://kredltest.in/Solargridreport.aspx


http://www.teda.in/

UNFCCC/CCNUCC


F = 1 – Ndiff/Nall = 1 – (482/482) = 0 &

Nall – Ndiff = 482 – 482 = 0

As per the Additionality Tool the project activity is a “common practice” if both the following conditions

are fulfilled:

(a) the factor F is greater than 0.2, and

(b) Nall - Ndiff is greater than 3

Since both conditions are not fulfilled, it is concluded that the project activity is not a common practice

in the country.

The soft copy of Common Practice analysis is furnished to DOE for verification.

Serious consideration of CDM

As per the guidelines on the demonstration and assessment of prior consideration of the CDM, Annex 13 of

EB 62, the project activities with a starting date on or after 02 August 2008 must inform a Host Party

DNA and the UNFCCC secretariat in writing of the commencement of the project activity and of their

intention to seek CDM status. Such notification must be made within six months of the project activity

start date and shall contain the precise geographical location and a brief description of the proposed

project activity, using the standardized form F-CDM-Prior Consideration.

The PP has signed an agreement with the WTG supplier on 05/01/2012, which is the start date of the

project as per Glossary of CDM terms. The project proponent has submitted the “Prior Consideration of

the CDM Form” duly filled and signed to the Secretariat, UNFCCC and to the Indian DNA on

28/11/2011 and the same is notified at the UNFCCC website. Since the PP has intimated both UNFCCC

and DNA within 6 months from the start date of the project, the requirements of paragraph 2 of Annex

13, EB 62 is fulfilled.

B.6. Emission reductions

B.6.1. Explanation of methodological choices

>>

Application of baseline methodology

According to the “Tool to calculate the emission factor for an electricity system” Version 02.2.1, the

baseline emissions are the amount of electricity produced times the grid emission factor which is the

Combined Margin (CM), calculated as the simple average of the Operating Margin (OM) emission factor

and the Build Margin (BM) emission factor. The emission factor of the grid for the ex-ante approach is

calculated in the following way:

In accordance with the "Tool to calculate the emission factor for an electricity system, Version 02.2.1”

the grid emission factor is calculated as per the following procedure:

Step 1. Identify the relevant electricity systems

Step 2. Choose whether to include off-grid power plants in the project electricity system

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

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

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

UNFCCC/CCNUCC


Step 6. Calculate the combined margin (CM) emission factor Step 1 – Identify the relevant electric power system

The CEA of the host country has published a delineation of the project electricity system and connected

electricity systems. According to data published by the CEA of India the project activity falls under

Southern Grid.

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

Project participants may choose between the following two options to calculate the operating margin and

build margin emission factor:

Option I: Only grid power plants are included in the calculation.

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

Following the calculations of the CEA , and the statistical data available, Option I is chosen

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

The approved methodological tool recommends the use of one of the following for the calculation of the

operating margin emission factor (EF grid,OM,y):

a) Simple OM, or

b) Simple adjusted OM; or

c) Dispatch data analysis OM; or

d) Average OM.

According to the methodological tool the Simple OM can be used if low-cost/must-run resources

constitute less than 50% of total grid generation in: 1) Average of the five most recent years 2) Based on

long-term averages for hydroelectricity production.

As per “CO2 Baseline Database” Version 7.0 the average share of low-cost /must-run resources (for the

five most recent years 2006-07 to 2010-11) of the Southern grid is amounting to 24% which is less than 50%

of the grid generation and hence Simple OM method is used to determine operating margin.

The data vintage option selected is the ex-ante approach, where a 3 year generation weighted average

OM is calculated. The most recent three year data published by CEA on the emission factor of Southern

region is considered.

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

The Simple OM 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 using the CO2 Baseline database of the Southern Grid. The calculation is

furnished below: Table 1: Operating Margin

Most recent three years 2008-09 2009-10 2010-11

Net Generation (Southern) in MWh 121,471,250 134,716,872 137,387,256

UNFCCC/CCNUCC


Operating Margin* (OM) in tCO2 e/

MWh

0.97292 0.94150 0.94188

Recent three year weighted average

Simple Operating Margin (tCO2/MWh)

0.95133

* including imports

Source: CO2 Baseline Data base, Version 7.0, January, 2012

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

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

As per the methodological tool, the project participants can choose one of the following two options for

calculating build margin:

Option 1: For the first crediting period, calculate the build margin emission factor ex ante based on the

most recent information available on units already built for sample group m at the time of CDM-PDD

submission to the DOE for validation. For the second crediting period, the build margin emission factor

should be updated based on the most recent information available on units already built at the time of

submission of the request for renewal of the crediting period to the DOE. For the third crediting period,

the build margin emission factor calculated for the second crediting period should be used. This option

does not require monitoring the emission factor during the crediting period.

Option 2: For the first crediting period, the build margin emission factor shall be updated annually, ex

post, including those units built up to the year of registration of the project activity or, if information up

to the year of registration is not yet available, including those units built up to the latest year for which

information is available. For the second crediting period, the build margin emissions factor shall be

calculated ex ante, as described in Option 1 above. For the third crediting period, the build margin

emission factor calculated for the second crediting period should be used.

Option 1 is considered and the Build Margin (BM) for the most recent year published in CO2 Baseline

Database, Version 7.0 available at the time of PDD development is furnished below:

Build Margin (BM) 0.73389 tCO2 e/ MWh

Source: CO2 Baseline Data base, Version 7.0, January, 2012

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

Step 6 – Calculate the Combined margin emission factor

As per the methodological tool, the calculation of the combined margin (CM) emissions factor

(EFgrid,CM,y) is based on one of the following methods:

(a) Weighted Average CM; or

(b) Simplified CM

The simplified CM method (option b) can only be used if:

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


UNFCCC/CCNUCC


• The project activity is located in a Least Developed Country (LDC) or in a country with less than 10

registered projects at the starting date of validation; and

• The data requirements for the application of step 5 above cannot be met.

The criteria of simplified CM is not applicable to the project activity, therefore Option (a) is chosen for

calculation of Combined Margin (CM) emission factor.

The combined margin emission factor is calculated as the average of the OM and BM emission factors,

i.e. the defaults weights for OM and BM are each weighted at 50%. The resulting Combined Margin is

fixed ex ante for the duration of the crediting period:

Where:

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

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

WOM – Weighting of operating margin emissions factor(%)

WBM – Weighting of build margin emissions factor(%)

EFgrid,CM,y = 0.95133 x 75% + 0.73389 x 25% = 0.89697 tCO2 / MWh

The calculated value has been fixed ex-ante for the entire crediting period.

The procedure for calculating the project emissions, baseline emissions, leakage emissions and emission

reductions are furnished below:

Project Emissions:

As per ACM0002 Version 12.3.0, PE,y = 0 for renewable power generation project activities.

Baseline Emissions

The baseline emissions in year y are calculated as:

BEy = EGPJ,y ⋅ EFgrid,CM,y

Where:

BEy = Baseline emissions in year y (tCO2)

EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result

of the implementation of the CDM project activity in year y (MWh)

EFgrid,CM,y = 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” (tCO2/MWh)

Calculation of EGPJ,y

The calculation of EGPJ,y is different for (a) greenfield plants, (b) retrofits and replacements, and (c)

capacity additions.

The project is a Greenfield renewable energy power plant since as the project activity is the installation of a

new grid-connected renewable power plant/unit at a site where no renewable power plant was operated prior to

the implementation of the project activity, then:

UNFCCC/CCNUCC


EGPJ,y = EGfacility,y

Where:

EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result

of the implementation of the CDM project activity in year y (MWh/yr)

EGfacility,y = Quantity of net electricity generation supplied by the project plant/unit to the grid in

year y (MWh/yr)

Leakage

According to the ACM0002 Version 12.3.0 methodology, no leakage emissions are considered.

Emission reductions

Emission reductions are calculated as follows:

ERy = BEy − PEy

Where:

ERy = Emission reductions in year y (t CO2e/yr)

BEy = Baseline emissions in year y (t CO2/yr)

PEy = Project emissions in year y (t CO2e/yr)

B.6.2. Data and parameters fixed ex ante

(Copy this table for each piece of data and parameter.)

Data / Parameter EFgrid,CM,y

Unit t CO2/MWh

Description Combined margin CO2 emission factor of the project electricity system

in year y

Source of data CO2 Baseline Database, Version 7.0 published by Central Electricity

Authority (CEA) http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm

Value(s) applied 0.89697

Choice of data

or

Measurement methods

and procedures

In order to facilitate adoption of authentic baseline emissions data and

also to ensure uniformity in the calculations of CO2 emission reductions

by CDM project developers, Central Electricity Authority (CEA),

Government of India, Ministry of Power has compiled a database

containing the necessary data on CO2 emissions for all grid-connected

power stations in India.

Calculated as a weighted average of Operating Margin and Build Margin

emission factors as per the “Tool to calculate the emission factor for an

electricity system”.

Purpose of data Calculation of baseline emissions

Additional comment This value is fixed for the first crediting period.


UNFCCC/CCNUCC


Data / Parameter EF grid, OM, y

Unit t CO2/MWh

Description Operating Margin CO2 Emission Factor for the project electricity system

in year y (Southern Grid)




Choice of data

or

Measurement methods

and procedures







Most recent 3 years (2008-09, 2009-10, 2010-11) net generation and

Operating Margin (OM) emission factor values of Southern region have

been used from the CO2Baseline Database published by Central

Electricity Authority, Government of India, as available at the time of the

PDD submission.


Additional comment This value is fixed for the first crediting period.


UNFCCC/CCNUCC


Data / Parameter EF grid, BM, y

Unit t CO2/MWh

Description Build Margin CO2 Emission Factor for the project electricity system in

year y (Southern Grid)




Choice of data

or

Measurement methods

and procedures







The Build Margin emission factor data (for the year 2010-11) from CO2

Baseline Database published by Central Electricity Authority,

Government of India has been used as available at the time of the PDD

submission.


Additional comment This value is fixed for the first crediting period. For the second crediting

period, the build margin emission factor will be updated based on the

most recent information available on units already built at the time of

submission of the request for renewal of the crediting period to the DOE.

B.6.3. Ex ante calculation of emission reductions

>>

Baseline emissions calculated as explained in section B.6.1 above are summarised as below.

BEy = EGPJ,y ⋅ EFgrid,CM,y

BEy = 200,090 MWh * 0.89697 tCO2/MWh

BEy = 179,474.38 tCO2 or say 179,474 tCO2

Project emissions

The project activity is a renewable power generation project and hence PEy = 0.

Leakage:

As described in part B.6.1, the leakage of the Project is 0 tCO2e.

Ly = 0

Emission reductions

Emission reductions from the project activity are estimated as the difference between baseline emissions,

project emissions and leakage.

ERy = BEy - PEy

ERy = 179,474 - 0 = 179,474 tCO2e


UNFCCC/CCNUCC


B.6.4. Summary of ex ante estimates of emission reductions

It is expected that the Project will generate GHG emission reductions of about 179,474 tCO2e annually

over the crediting period.

Year Baseline emissions

(t CO2e)

Project

emissions

(t CO2e)

Leakage

(t CO2e)

Emission

reductions

(t CO2e)

01/06/2013 to 31/05/2014 179,474 0 0 179,474

01/06/2014 to 31/05/2015 179,474 0 0 179,474

01/06/2015 to 31/05/2016 179,474 0 0 179,474

01/06/2016 to 31/05/2017 179,474 0 0 179,474

01/06/2017 to 31/05/2018 179,474 0 0 179,474

01/06/2018 to 31/05/2019 179,474 0 0 179,474

01/06/2019 to 31/05/2020 179,474 0 0 179,474

Total 1,256,318 0 0 1,256,318

Total number of crediting

years

7 years

Annual

average over the crediting

period

179,474 0 0 179,474

B.7. Monitoring plan

B.7.1. Data and parameters to be monitored

(Copy this table for each piece of data and parameter.)

UNFCCC/CCNUCC


Data / Parameter EGimport,y

Unit MWh

Description Grid electricity import by the project activity during the year, y

Source of data Monthly statement of joint meter readings issued by the state utility

Value(s) applied 0

Measurement methods

and procedures

Measurement : Tri-vector energy meter installed at receiving station

will be used for measurement of electricity import

Data Type : Measured

Recording : Monthly

Archiving Policy: Paper & Electronic

Accuracy : 0.2s class

The meter reading will be recorded jointly by the representatives of project

proponent and the state utility

Monitoring frequency Continuous

QA/QC procedures The energy meter will be sealed and will be in the custody of state utility.

Measurement results will be cross checked with records of electricity sold

(invoices / receipts).

The energy meters will be calibrated as per PPA


Additional comment The data monitored would be kept in electronic form and hard copy format

for 2 years after the end of crediting period or the last issuance of CERs for

this project activity, whichever occurs later.

Data / Parameter EGexport,y

Unit MWh

Description Electricity exported to the grid by the project activity during the year, y


Value(s) applied 200,090

Measurement methods

and procedures

Measurement : Tri-vector energy meter installed at receiving station

will be used for measurement of electricity export

Data Type : Measured

Recording : Monthly

Archiving Policy: Paper & Electronic

Accuracy : 0.2s class

The meter reading will be recorded jointly by the representatives of project

proponent and the state utility


QA/QC procedures The energy meter will be sealed and will be in the custody of state utility.

Measurement results will be cross checked with records of electricity sold

(invoices / receipts).

The energy meters will be calibrated as per PPA




UNFCCC/CCNUCC



Data / Parameter EGfacility,y

Unit MWh

Description Quantity of net electricity generation supplied by the project activity to the

grid in year y


Value(s) applied 200,090

Measurement methods

and procedures

The net electricity supplied to the grid will be calculated based on

measured values of electricity export and electricity import.


QA/QC procedures The net electricity supplied to the grid will be cross checked with the

records of sold electricity.





B.7.2. Sampling plan

>>

No sampling approach required for the parameters monitored in section B.7.1.

B.7.3. Other elements of monitoring plan

>>

A CDM project team would be constituted for monitoring of all the parameters described under

Sec.B.7.1. The team will be trained on CDM concept and monitoring plan. The team will be responsible

for data collection and archiving. This team will meet periodically to review CDM project activity, check

the data recorded in the log books and joint meter readings. In case of any irregularity observed, it shall

be informed to the concerned person for necessary action. On monthly basis, these reports shall be

forwarded to the management for their information.

Management Structure for monitoring emission reductions :

Designation Responsibilities

General Manager Conducting internal audits to check the accuracy of monthly electricity generated.

Plant Manager Verify the log books and other records maintained by shift incharge for its

correctness.

Recording of EGexport,y and EGimport,y jointly with the representative of State utility

for the purpose of issue of joint meter readings by the state utility.

All the data monitored under the monitoring plan would be kept in electronic form

and hard copy format for 2 years after the end of crediting period or the last

issuance of CERs for this project activity, whichever occurs later

Shift Incharge Maintain the daily log books for EGexport,y and EGimport,y

UNFCCC/CCNUCC


SECTION C. Duration and crediting period

C.1. Duration of project activity

C.1.1. Start date of project activity

>>

05/01/2012 (Contract for the purchase of equipment executed with GE India Industrial Private Limited)

C.1.2. Expected operational lifetime of project activity

>>

20 years (Source: GE Face Sheet – 1.6-82.5 Wind Turbine : http://www.ge-

energy.com/content/multimedia/_files/downloads/GEA18112B_1.6-82.5%20Wind%20Turbine_r1.pdf )

C.2. Crediting period of project activity

C.2.1. Type of crediting period

>> Renewable (first crediting period)

C.2.2. Start date of crediting period

>>

01/06/2013 or from the date of registration whichever occurs later

C.2.3. Length of crediting period

7 y-0m

SECTION D. Environmental impacts

D.1. Analysis of environmental impacts

>>

Since the project activity is electricity generation by installation of wind turbine generators, it does not

cause any negative impacts on the environment or socio-economic situation in the region and does not

require any environmental impact analysis.

D.2. Environmental impact assessment

>>

The project activity does not fall under the purview of Environmental Impact Assessment notification

S.O. 1533, dated 14th September 20064 (which is amended vide Notification S.O.1737(E) dt.11th

October, 2007, S.O.3067(E) dated 1st December, 2009, S.O.695(E) dt.6th April, 2011 and S.O.156(E)

dt.25th January, 2012) issued by Ministry of Environment and Forests (MoEF), Government of India

(GOI) and hence the project activity is exempted from environmental clearances. Since the project

activity is electricity generation by installation of wind turbine generators, it does not cause any negative

impacts on the environment or socio-economic situation in the region and does not require any

environmental impact analysis.

SECTION E. Local stakeholder consultation

E.1. Solicitation of comments from local stakeholders

>>

The project participant had invited local stakeholders for a meeting by way of affixing a notification at

Grampanchayat office on 12/01/2012 by giving week days time for submission of their suggestions /

comments on the project activity and conducted stakeholders meeting at Hotel Vimochan, Basavana

Bagewadi Taluka, Bijapur District, Karnataka on 20/01/2012 at 11.30 a.m. The meeting was attended by

local populace including Committee members. The representative of the project participant had

explained to the members attended, about the project activity and its contribution to protect the

environment from GHG emissions. Except suggestion to establish more number of wind projects and

4 http://envfor.nic.in/legis/eia/so1533.pdf



http://envfor.nic.in/legis/eia/so1533.pdf

UNFCCC/CCNUCC


expression of their happiness on the economic benefit they got in selling their lands for the project

activity, there is no comment from stakeholders. The notice inviting stakeholders and the minutes of the

stakeholder meeting are furnished to the DOE for verification.

E.2. Summary of comments received

>>

No comments from the stakeholders attended to the meeting instead they expressed their happiness for

the PP’s decision to establish wind power projects in their location as it creates earning sources. The

Minutes of the stakeholder meeting is furnished to the DOE for verification.

E.3. Report on consideration of comments received

>>

No comments received; hence no report is applicable

SECTION F. Approval and authorization

>>

The letter of approval dt.11/10/2012 obtained from Indian DNA i.e., Ministry of Environment & Forests,

Government of India is provided to DOE for verification. .

- - - - -

UNFCCC/CCNUCC


Appendix 1: Contact information of project participants

Organization name Fortune Five Hydel Projects Private Limited

Street/P.O. Box # 1071, Road No.44, Jubilee Hills,

Building --

City Hyderabad

State/Region Andhra Pradesh

Postcode 500 033

Country India

Telephone +91- 40 40301000

Fax +91-40 40301101

E-mail [email protected]

Website www.fortunefiveprojects.com

Contact person

Title AVP

Salutation Mr.

Last name Mandapati

Middle name --

First name Tirumala Raju

Department --

Mobile +91 9959552323

Direct fax +91-40 40301101

Direct tel. +91- 40 40301000

Personal e-mail [email protected]

UNFCCC/CCNUCC


Appendix 2: Affirmation regarding public funding

The project does not propose to receive any public funding from the Official Development Assistance

(ODA) or other funds provided by any Annex I countries.

UNFCCC/CCNUCC


Appendix 3: Applicability of selected methodology

Applicability of the methodology ACM 0002 Version 12.3.0 for the project activity is described under

Section B.2

UNFCCC/CCNUCC


Appendix 4: Further background information on ex ante calculation of emission reductions

The information on ex ante calculation of emissions reductions is provided under Section B.6.1 and

B.6.3.

UNFCCC/CCNUCC


Appendix 5: Further background information on monitoring plan

As detailed in Section B.7.1., all the parameters would be monitored using calibrated meters. The project

would employ latest microprocessor based high accuracy monitoring and control equipment that would

measure, record, report, monitor and control various key parameters like electricity generated by the

project, electricity imported from the grid and net electricity exported to the grid. Necessary check

meters would be installed along with main meter for cross verification. These meters would be calibrated

and sealed as described under Sec.B.7.1 for each parameter.

Metering and Communication

The electricity generated at 690 kV by each wind turbine would be stepped up by Unit Transformer to 33

kV voltage level and would be transmitted to wind farm pooling substation through a net work of 33 kV

transmission lines. At the wind farm pooling substation, the power would be further stepped to 220 kV

level and transmitted through 220 kV double circuit lines connected to Karnataka Power Transmission

Corporation Limited’s substation at Basavana Bagewadi, which is located at about 12 km from the wind

farm.

Metering

One set of Main and Check energy meters will be installed at 33/220 kV pooling substation. The

electricity generation measured and recorded at these meters will be used for cross checking with the data

recorded at KPTCL Substation as and when required.

One set of dedicated Main and Check energy meters will be installed at KPTCL substation located at

Basavana Bagewadi. These meters will be used for metering the net electricity supplied to the grid by the

project activity. The electricity supplied to the grid recorded by these meters will be used for monthly

billing. These meters measure both (a) electricity exported by the Project to the Grid and (b) electricity

imported by the Project from the Grid. The energy meters installed for measuring electricity export and

electricity import will be of 0.2s accuracy class.

Meter Readings

The meter readings of electricity import and electricity export measured with energy meters installed at

KPTCL’s substation will be recorded jointly by the representatives of the project proponent and the state

utility every month on a particular day. The state utility will issue a statement of joint meter readings

consisting of electricity exported, electricity imported and net electricity supplied by the project to the

grid.

Meter Test Checking and calibration

All the main and check meters would be tested and calibrated as per power purchase agreement.

If during any testing and calibration, a Main meter is found to be within permissible limit of error and the

corresponding Check Meter is found to be beyond such limit of error, the Monthly Bill shall be as per the

reading of the Main Meter. The corresponding Check Meter shall be replaced forthwith with the spare

tested Meter and the defective Check Meter shall be repaired and calibrated by the Testing Laboratory or

replaced by a new and tested Check Meter.

UNFCCC/CCNUCC


If during any testing and calibration, a Main Meter is found to be beyond permissible limit of error but

the corresponding Check Meter is found to be within limit of error, the Monthly Bill shall, for that Month

and till the date and time of the repair and calibration or replacement of the defective Main Meter, be as

per the reading of the Check Meter. The corresponding Main Meter shall be replaced forthwith with a

spare tested and calibrated Meter, and the defective Main Meter shall be repaired and calibrated by the

Testing Laboratory or replaced by a new and tested Main Meter.

If during any testing and calibration, a Main Meter and the corresponding Check Meter are both found to

be beyond permissible limit of error, both the Meters or at least the Main Meter shall be replaced

forthwith with a spare tested calibrated Meter. At this time for the purpose of calculating electricity

generation, 99% of metered gross electricity generation will be considered from the time the defect or

failure of meter found till replacement of new/tested meters or repair, calibration and reinstallation of the

old meters.

PARAMETERS REQUIRING MONITORING

Electricity imported from the grid, electricity exported to the grid and net electricity generation supplied

by the project to the grid would be monitored under this monitoring protocol.

As per Indian DNA statute the project proponent is committed to spend 2% of CERs revenue every year

for Sustainable Development including society/community development at the project activity location.

This contribution will be utilised for development of basic infrastructure facilities like roads, lighting,

water supply etc. The developments will be verified with the documentary evidence of payments made

for the respective works.

Procedure for Record Management and Achieving

Log books will be maintained for each of the monitoring parameter described under Sec.B.7.1. All the

data monitored under the monitoring plan would be kept in electronic form and hard copy format for 2

years after the end of crediting period or the last issuance of CERs for this project activity, whichever

occurs later. The monitored data would be presented to the verification agency or DOE to whom

verification of emission reductions is assigned.

Internal audits of CDM project compliance

CDM audits shall be carried out for every six months by the internal auditing team to check the

correctness of procedures and data monitored. Report on internal audits done, faults found and corrective

action taken shall be maintained and kept for review of board of directors.

UNFCCC/CCNUCC


Appendix 6: Summary of post registration changes

Not applicable as the project is yet to achieve registration status

UNFCCC/CCNUCC


History of the document

Version Date Nature of revision

04.1 11 April 2012 Editorial revision to change version 02 line in history box from Annex 06 to Annex 06b.

04.0 EB 66 13 March 2012

Revision required to ensure consistency with the “Guidelines for completing the project design document form for CDM project activities” (EB 66, Annex 8).

03 EB 25, Annex 15 26 July 2006

02 EB 14, Annex 06b 14 June 2004

01 EB 05, Paragraph 12 03 August 2002

Initial adoption.

Decision Class: Regulatory

Document Type: Form

Business Function: Registration

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