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PROJECT DESIGN DOCUMENT 4.0 MW INDUSTRIAL WASTE BASED POWER GENERATION PROJECT VENSA BIOTEK LIMITED SamalKot, Andhra Pradesh Prepared by: 1, Navjeevan Vihar, Tel: 011 2669 3868 New Delhi 110 017 Fax: 011 2669 3881 website: www.winrockindia.org
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Page 1: Andhra Pradesh Vensa Biotec PDD

PROJECT DESIGN DOCUMENT

4.0 MW INDUSTRIAL WASTE BASED POWER GENERATION PROJECT

VENSA BIOTEK LIMITED SamalKot, Andhra Pradesh

Prepared by:

1, Navjeevan Vihar, Tel: 011 2669 3868 New Delhi 110 017 Fax: 011 2669 3881

website: www.winrockindia.org

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CONTENTS A. General Description of the small-scale Project Activity B. Baseline Methodology C. Duration of the Project Activity / Crediting Period D. Monitoring Methodology and Plan E. Calculation of GHG Emission Reductions by Sources F. Environmental Impacts G. Stakeholders Comments Annexes Annex 1: Information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Base Line Data Appendix A: References Appendix: Abbreviations

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A. General Description of the small-scale Project Activity A.1 Title of the small-scale project activity:

4.0 MW biomass based power generation project at Vensa Biotek Limited. A.2 Description of the small-scale project activity: Purpose of the Project: The purpose of the Vensa Biotek Limited (VBL) power generation project is to utilise industrial waste (biomass based) and other agricultural residue for generation of electricity for in-house consumption and export surplus to the electricity grid. The project activity indirectly helps in reducing the power deficit in the state of Andhra Pradesh, reduces the grid system’s dependency on fossil fuel resources (primarily coal and gas) and reduces the emission of greenhouse gases (GHG). The project activity also contributes to an economically, environmentally and socially sustainable development in the region through the commercial operation of the power plant and thereby creating sustainable stakeholder value. Features of the Project: The project involves the implementation of a biomass-based power generation plant using direct combustion of fuels in a boiler for steam generation and expansion of the same in an extraction cum condensing turbine. The installed capacity of the plant is 4.0 MW. The fuel used is primarily starch industry solid waste viz. tapioca tippi and agro-biomass viz. rice husk, groundnut husk, saw dust and tapioca stem and biogas (generated from bio-methanation plant for treating liquid effluents generated during starch manufacturing). The generated electricity meets VBL’s captive electricity requirement and the surplus being sold to the state grid. The generated electricity replaces a mixture of coal and gas-based power generation. The total amount of certified emission reductions (CERs) to be delivered is expected to be 175,079 tCO2equivalent. The implementation of the project also leads to additional income and employment in the region (approximately 80,000 man days of work per year1). Past Scenario: The total power requirement of the starch and liquid glucose plant was being met by APTRANSCo (Andhra Pradesh Power Transmission Corporation Limited) grid and total process steam requirement of around 10 TPH at 10 kg/cm2 was being met by two

1 Based on an estimate of at least 100,000 man-days per year for a 5 MW biomass based plant from the Indian Ministry of Non-Conventional Energy (1999) CDM – VENSA – PDD (Version 02 – 8 July 2005) Page 3 of 56

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numbers of low pressure Thermax design Water Tube boilers, which were fed with rice husk. Diesel generator sets were being used as a standby provision for power. Project Scenario: The project activity, which is a ‘carbon neutral fuel’ based cogeneration plant, generates electricity in addition to steam to meet VBL’s captive electricity requirements thereby displacing an equivalent amount of electricity the plant would have drawn from the APTRANSCo grid. Additionally, the surplus electricity is being exported to the grid and in absence of the project same electricity would have been supplied through the power generation mix of APTRANSCo. By feeding additional power to the grid, the project will add to the reliability of power supply and stabilization of the voltage, which will create business opportunities and help economic development in rural areas where the plant is situated. The CDM project is limited to the captive electricity consumption and the electricity export to the electricity distribution grid, where the CO2-neutral electricity generation will replace conventional electricity generation highly dependent on fossil fuel in the grid system and thereby reducing GHG emission in the electricity grid system. The CDM project also produces steam for the plant processes, but this part will not be part of the CDM project as the steam generated by the new plant replaces the renewable steam production that was taking place on an old rice husk (biomass) fired boiler. Key data for the project: Power generation capacity 4.00 MW

In house power demand 1.55 MW

Annual minimum in house demand 9,112 MWh Scheduled export to the grid 2.45 MW

Annual minimum export to the grid system 19,400 MWh Tapioca Tippi (in-house / by supplier)

19,800 MT

Rice Husk (by supplier) 13,200 MTTapioca stems / Groundnut Husk / Saw dust (by supplier)

10,500 MTAnnual consumption of biomass

Total 43,500 MT

Annual consumption of biogas Biogas (in-house) 2.9 million

NM3

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Turbine Details Type Steam

Pressure Steam

Temperature

Gross Power

Generation 1 No. X 4.00 MW Multi stage, Extraction

cum condensing turbine 65 kg/cm2 4850 C 4000 kW

Boiler Details Type Pressure Temperature Steam (TPH)

1 No. high efficiency boiler

Bi-drum, Multi fuel fired, Travel grate, Water tube

65 kg/cm2 4850 C 28 TPH

Chronological Description of the Project’s Background: In January 2001, VBL a leading manufacturer of starch and liquid glucose from maize and tapioca tuber, decided to set up a 4.0 MW biomass based power plant (industrial waste and agro-biomass). Subsequently, VBL management obtained permission from Non-conventional Energy Development Corporation of Andhra Pradesh (NEDCAP) for setting up of the 4.0 MW Power Plant. The core justification for this investment by VBL management was the potential monetization of CERs to deliver a sustainable and appropriate return. Subsequently, as VBL was unable to obtain proper guidance and technical evaluation facilities, in August 2002 the issue of CERs marketing was temporarily postponed. In June 2004, VBL decided to revive the issue of CERs marketing and develop the biomass based cogeneration project as a CDM project under the Cleaner Technology Promotion In India (CTPI) supported by SECO/UNIDO. Power purchase agreement (PPA) with the transmission authority APTRANSCo was signed in February 2002. Despite several technical and financial risks associated with the project, VBL decided to start construction of power plant in October 2002. The reasonable assurance that the project would be able to avail carbon credits benefits was one of the key factors in the decision making, as is stated in VBL’s Board Meetings2. Decisions weighing IRR against securing CDM credits are presented in Section B.3. Since its commissioning and start-up in November 2003, VBL cogeneration plant has been confronted with several ongoing operational problems related to the behavior of mixed biomass feedstock. Availability of Bio-mass: The VBL cogeneration plant is being fuelled with starch industry solid waste viz. tapioca tippi and agro-biomass viz. rice husk, groundnut husk, saw dust and tapioca stem etc. Apart from these two types of fuels, the cogeneration plant is also being fuelled with biogas generated from bio-methanation plant (from treating liquid effluents generated in

2 Documentary evidence on VBL’s Board Meetings decisions would be shared with the Designated Operational Entity CDM – VENSA – PDD (Version 02 – 8 July 2005) Page 5 of 56

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the starch plant). Apart from these fuels, the company has also identified agro wastes such as tapioca stem. These are being sourced from the same farmers who are supplying the raw material (maize and tapioca) for the starch and glucose production. Thus, for VBL the biomass waste is supplied from the own plant and from the contracted farmers. VBL has entered into agreement with biomass suppliers for long term supply of biomass. Additionally, as per the survey conducted by NEDCAP on availability of biomass in the region (East Godavari district), it highlights that the district has surplus biomass availability for the next 10-15 years. Contribution to Sustainable Development: The project activity has excellent contribution towards sustainable development and addresses the key issues: Environmental Sustainability:

• Substituting the electricity requirement from grid by cogeneration scheme thereby eliminating the generation of equivalent quantum of electricity using conventional fuel feeding the state grid

• Reducing disposal and indiscriminate incineration (in low efficiency boilers) of biomass waste generated during starch manufacturing process

• Conserving coal and other non-renewable natural resource • Mitigating the emission of GHG (CO2) as biomass is a carbon neutral fuel

Socio-economic Sustainability:

• Andhra Pradesh had a peak power deficit of 2.3% at the end of the year 2003, according to Ministry of Power (MoP, 2003). The biomass based power plants will contribute, though in a small measure, to bridging the gap between the supply and demand of power in the state.

• The unit is located at dispersed rural location, which reduces the transmission and distribution (T&D) losses to some extent. The T&D losses in Andhra Pradesh were about 26% in year 2003 (MoP 2003).

• The project is in line with the policies of MNES. It contributes to achievement of the 11th Plan target of 10,000 MW renewable energy by 2012 set by MNES.

• Contrary to certain fossil fuel fired plants, the proposed project will not lead to an outflow of foreign exchange capital, since most capital equipment is locally produced and the biomass waste does not have to be imported. This is in accordance with India’s policy of self-reliance.

• The plant is situated far from an urban center, creating rural employment. It is estimated that the project has potential to create approximately 80,000 man-days of work per year. Creation of employment opportunities in rural areas has long been recognized as a major element of sustainable development and to stem the

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large-scale migration from rural to urban areas. To this extent, the project directly addresses a core national concern.

A.3 Project Participants: The project participants are:

• Vensa Biotek Limited (VBL): project owner • Government of India: host country; the Government of India ratified the Kyoto

Protocol in 2002. Vensa Biotek Limited – India Role in the Project: Developer and investor in the biomass based power generation project and supplier of the carbon credits. Brief Company Description: Vensa Biotek Limited (VBL) is one of the leading manufacturers of starch and liquid glucose from maize and tapioca tuber. The company started its commercial production of starch and liquid glucose in 1989 by using tapioca tuber as raw material. Subsequently the company has added maize plant and this is only one of its kinds in India, which can process both tapioca and maize simultaneously. The company processes around 30,000 MT of tapioca and 63,000 MT of maize annually. The company currently operates commercial plants aggregating a total installed capacity of 80 MT for the production of starch, and 40 MT for liquid glucose per day. VBL is a public limited company with equity participation from IDBI and IFCI banks. The net fixed assets of the company are INR 218.04 Million (US$ 4.84 million) and net sales of approx. INR 219.75 Million (US$ 4.88 million) in 2003-2004. The main promoters hold 51% of the equity. It has an impeccable track record with its bankers and a track record of profits and dividends for its shareholders. Contact information on party(ies) and private/public entities involved in the project activity are listed in Annex 1.

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A.4 Technical Description of the small-scale Project Activity: A.4.1 Location of the small-scale project activity: A.4.1.1 Host Party(ies) : India A.4.1.2 Region/State/Province etc. : Andhra Pradesh

A.4.1.3 City/Town/Community etc : G. Ragampet village, Peddapuram Mandal, East Godavari District

A.4.1.4 Detail of physical location, including information allowing the unique identification of this small-scale project activity(ies):

See following pages

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A.4.2 Type and Category(Ies) and Technology of small-scale Project Activity: Project Category : Renewable energy power project (Type I) Sub Category : Thermal energy for the user (I.C)

Renewable electricity generation for supply to a grid (I.D)

As defined under Appendix B of the simplified modalities and procedures for small-scale CDM project activities, these categories include “biomass based co-generating systems that produce heat and electricity for use on-site” and “biomass combined heat and power (co-generation) systems that supply electricity to a grid”. For co-generation systems to qualify under these categories, the sum of all forms of energy output shall not exceed 45 MWthermal (rating for the primary boiler shall not exceed 45 MWthermal). This project activity clearly qualifies in the above categories since the net thermal energy output from the project activity is approximately 22.7 MMKcal/hr MWthermal (< 45 MWthermal). The captive power requirement for operating VBL is about 1.55 MW (0.44 MW auxiliary consumption for cogeneration plant and 1.11 MW for process). Before setting up the cogeneration plant, power requirement was being met by supplies from APTRANSCo. By setting up the biomass based cogeneration plant, VBL meets its steam and power requirement from captive sources and is thus applicable for project category I.C. Additionally, the surplus electricity is supplied to the grid that is now supplied primarily by coal power plants with future plans overwhelmingly in favour of fossil fuel based generating facilities and is thus applicable for project category I.D. Technology of Project Activity: The system adopted for power generation is direct combustion of fuels in a high-pressure boiler for steam generation and expansion of the same in an extraction cum condensing turbine for generation of power. The boiler (28 TPH, 65 kg/cm2, 4850C) used for steam generation is specifically designed to fire a combination of various biomass fuels. The boiler is provided with a large furnace and the super heaters are specially designed and provided with a protective coating to prevent corrosion from the chemically contaminated flue gases that are generated while burning tapioca fibre, rice husk and tapioca stems. The flue gas velocity and spacing of the super heater coils are so designed to allow minimum fouling with chemical depositions, to extend the life of the Super heater.

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The steam turbine for the power plant is an extraction cum condensing turbine with one controlled extraction for process steam requirements. The turbine is designed to drive the generator directly through a gearbox to generate power at 50 HZ. The speed of the generator is 1,500 RPM and the generator is designed to generate 4.0 MW Electrical Power at 50 HZ, 11 KV Voltage level and 0.9 Plant Load Factor. The generating voltage at the generator terminals is 11 KV which is stepped up to 33 KV for exporting power to APTRANSCo grid in a 5 MVA Transformer and bring down the voltage from 11 KV to 415 V in a 2 MVA Transformer for captive use of power. Accordingly all other electrical equipment like grid transformer, switchyard etc. are sized. No transfer of technology is involved to host country as the technology of biomass based high steam pressure power generation is known and in use in India. However, the use of tapioca and maize crop residue as fuel for power generation is a pioneering effort by VBL; this project represents the use of tapioca and maize crop residue, for the first time, for the generation of electricity on a commercial scale. A.4.3 Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse gases (GHGs) by sources are to be reduced by the proposed small-scale project activity, including why the emission reductions would not occur in the absence of the proposed small-scale project activity, taking into account national and or/sectoral policies and circumstances: The project results in a clear reduction of CO2 emissions: the CO2 neutral biomass based power generation for captive consumption and supply to the electricity grid replaces CO2-emitting fossil fuel based power that might have been generated in absence of the CDM project. The emission reductions would not occur in the absence of the proposed small-scale project activity as the alternatives to the project include business-as-usual i.e. import of equivalent amount of electricity through the power generation mix of APTRANSCo grid. Almost all starch-manufacturing plants in India have their own boilers to generate steam and electricity supply is from the grid. The boilers dedicated to the starch manufacturing process are mainly fuelled with coal or lignite. The proposed project uses starch industry solid waste and agricultural wastes (biomass) to generate power for self-consumption and export of surplus power to the APTRANSCo grid. In absence of the project, same power might have been supplied through the power generation mix of APTRANSCo grid, resulting in CO2 (carbon dioxide) emissions.

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A.4.3.1 Estimated amount of emission reductions over the chosen crediting period A conventional electrical energy equivalent of 246.87 Million kWh for a period of 10 years in Andhra Pradesh would be replaced by the electricity from the existing 4.0 MW non-conventional renewable resource (biomass) based cogeneration plant with CO2 emission reduction of 175,079 tonnes CO2e in a period of 10 years. A.4.4 Public funding of the small-scale Project Activity: No public funding as part of project financing from parties included in Annex I is involved in the project activity. Equity for the project is supplied by VBL and debt is supplied by an Indian Bank. A.4.5 Confirmation that the small-scale project activity is not a de-bundled component of a larger project activity: According to Appendix C of Simplified Modalities and Procedures for small scale CDM project activities, “Debundling” is defined as the fragmentation of a large project activity into smaller parts. A small-scale project activity that is part of a large project activity is not eligible to use the simplified modalities and procedures for small-scale CDM project activities. As highlighted in Appendix C of Simplified Modalities and Procedures for small scale CDM project activities, a proposed small-scale project shall be deemed to be a de-bundled component of a large project activity if there is a registered small-scale CDM project activity or an application to register another small-scale CDM project activity:

• With the same project participants; • In the same project category and technology / measure; • Registered within the previous 2 years; and • Whose project boundary is within 1 km of the project boundary of the proposed

small-scale activity at the closest point. On the basis of the above, the proposed cogeneration project cannot be considered as de-bundled component of a large project activity as:

• The proposed project is VBL’s first and so far only biomass power plant and VBL do not propose another biomass power plant;

• VBL have not registered any other small-scale project activity within the previous two years; and

• Project boundary is not within 1 km radius of any other proposed small-scale activity.

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B: Application of a Baseline Methodology B.1 Title and Reference of the approved baseline methodology applied to the small-scale Project Activity: Main Category: Type I – Renewable energy power project Sub Category: C – Thermal energy for the user D – Renewable electricity generation for a grid The reference has been taken from the recent list of the small-scale CDM project activity categories contained in Appendix B of the simplified M&P for small-scale CDM project activities. B.2 Project Category Applicable to the small-scale Project Activity: “Appendix B of the simplified modalities and procedures for small-scale CDM project activities”, provides indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity category. As per this document, the proposed CDM project falls under Type I.C – Thermal Energy for the User and Type I.D - Renewable electricity generation for a grid. Baseline methodology for projects under Type I.C has been detailed in paragraphs 5-7 (Type I.C) of the above mentioned document. Paragraph 7 (Type I.C) which applies to this sub category of project activity states that for renewable energy technologies that displace electricity the simplified baseline is the electricity consumption times the relevant emission factor calculated as described under Category I.D, paragraph 7 (Type I.D). Similarly, baseline methodology for projects under Type I.D has been detailed in paragraphs 5-7 (Type I.D) of the above mentioned document. Paragraph 7 (Type I.D) also applies to this sub category of project activity. Paragraph 7 (Type I.D) states that the baseline is the kWh produced by the renewable generating unit multiplied by an emission co-efficient (measured in kg CO2equ/kWh) calculated in a transparent and conservative manner as: a) The average of the “approximate operating margin” and the “build margin”, where:

I. The “approximate operating margin” is the weighted average emissions (in kg CO2equ/kWh) of all generating sources serving the system, excluding hydro, geothermal, wind, low-cost biomass, nuclear and solar generation;

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II. The “build margin” is the weighted average emissions (in kg CO2equ/kWh) of recent capacity additions to the system, which capacity additions are defined as the greater (in MWh) of most recent 20% of existing plants or the 5 most recent plants

OR b) The weighted average emissions (in kg CO2equ/kWh) of the current generation mix. Considering the available guidelines and the present project scenario, Andhra Pradesh state grid has been chosen for baseline analysis by selecting “the weighted average emissions of current generation mix” for baseline calculations. Further details of the baseline are given in Annex 3. B.3 Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity (i.e. explanation of how and why this project is additional and therefore not identical with the baseline scenario) Emission Reductions: a) On-site Emissions: Construction of Cogeneration Plant: The first direct on-site emissions occur during the construction of the cogeneration plant. However, as there is a shortage of electricity in India, it can be assumed that in the baseline situation, fossil fuel power plants would have been constructed instead which would at least result in similar emission levels. We can therefore safely assume that the construction of cogeneration plant does not result in additional emissions compared to the baseline scenario. Combustion of Biomass: The fuel used for the cogeneration plant is primarily starch industry solid waste viz. tapioca fibre and maize husk, agro-biomass viz. rice husk and tapioca stem and biogas. Direct on-site GHG emissions after implementation of the project arise from the burning of biomass and biogas in the boiler. These emissions mainly include CO2. However, the CO2 released equals the amount of CO2 taken up by the biomass during growing, representing a cyclic process of carbon sequestration and therefore no net emissions occur. Since the above biomass contains only negligible quantities of other elements like Nitrogen, Sulphur etc. release of other GHGs are considered as negligible. Additionally, the biogas which is generated from bio-methanation plant for treating liquid effluents generated during starch manufacturing is assumed to be produced on a sustainable CDM – VENSA – PDD (Version 02 – 8 July 2005) Page 15 of 56

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basis and therefore the CO2 associated with biogas consumption is re-absorbed in the growth of fodder and foodstuffs. Storage of Biomass: The harvesting of the maize crop takes place throughout the year, tapioca crop in the period of January to March and rice crop in the period of July to November and December to March. Since tapioca being a seasonal crop is only available for three to six months a year, adequate storage facilities are required. In principle N2O and CH4 emissions could arise from storage. However, this is not expected to generate significant GHG emissions:

• In principle nitrous oxide emissions could arise from storage. However, it seems fair to assume the amount of nitrous oxide emissions formed during biomass storage to be comparable to the amount of N2O emissions arising from agricultural residues when left on the field. As a consequence the N2O emissions will not be influenced by the project and will therefore not be taken into account.

• Substantial methane emissions from storage are not anticipated. There are three arguments for this:

1. The materials are stored in such a way that anaerobic digestion is very unlikely (dry and with excess oxygen)

2. Methane production from anaerobic digestion only starts after a couple of months and reaches its peak after 2 years (storage time for the proposed project is on an average one month3)

3. The biomass materials used in this project have very little organic components that are biodegradable under anaerobic conditions.

b) Off-site Emissions: Transport of Biomass: Direct off-site emissions in the proposed project arise from transporting the biomass. The biomass is being transported by tractors and trolleys. However, in the baseline situation, the transport of coal and gas has to be taken into account. On average, the distance over which fuels have to be transported will be substantially larger for fossil fuel-fired power stations because of the larger distance to mines and ports than for the proposed project. For example, Andhra Pradesh fossil fuel-fired power stations procure coal from facilities located over 100-500 kilometres away either from in-house mines (Singareni and Godavarikhani) or from neighbouring states such as Chattisgarh, Orissa and Madhya Pradesh4. Therefore, transport emissions in the baseline will be larger than the

3 Documentary evidence regarding the VBL agreement with biomass suppliers stating that the supplier agrees to supply the biomass in monthly consignments to VBL would be shared with the Designated Operational Entity 4 Andhra Pradesh has huge reserves of key minerals such as coal, limestone, granite, bauxite and barytes. In fact, the State is estimated to have a third of India’s total mineral wealth. Andhra Pradesh is the only southern state with coal deposits; however, annual coal production is an almost negligible proportion of reserves (0.3 per cent) CDM – VENSA – PDD (Version 02 – 8 July 2005) Page 16 of 56

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transport emissions related to the proposed project. Because of a lack of data on the average transport distances for coal to power stations in Andhra Pradesh and the Southern grid, we have not included fuel transport emissions in the system boundary of both the current situation and the project5. This also provides a conservative estimate of emission reductions. Biomass Left or Burnt on the Field: The project will result in reduced direct off-site emissions compared to the current situation, in which part of the biomass waste stays on the field. This may lead to methane emissions from decaying biomass. In cases where the biomass is burnt on the field, N2O may be emitted. N2O and methane have a stronger global warming potential than CO2. These emissions however, are not taken into account, providing a more conservative estimate of the baseline emissions. Since the proposed project uses biomass waste only, no additional biomass is grown on account of the project. Therefore the project does not result in an additional uptake of CO2 by sinks. Justification of Simplified Methodologies: The net thermal energy output from the project activity is approximately 22.7 MWthermal. The proposed project therefore qualifies for a small-scale project as the sum of all forms of energy output is not exceeding 45 MWthermal (as defined in Appendix B of the M&P of small-scale CDM project activities). Additionality: In order to determine if the project activity is additional, the additionally tool approved by the CDM Executive Board is applied6. Each of the steps is explained below: Step 0: Preliminary screening based on the starting date of the project activity

(http://www.aponline.gov.in/quick%20links/vision2020/c19.pdf). Since Andhra Pradesh is located adjacent to the ports, imported coal is also easily available. Regarding gas and other major sources of energy, the discovery of gas in the Krishna-Godavari Basin offshore coastal Andhra Pradesh by the consortium led by Gujarat State Petrochemicals Limited will form a major determinant of the future energy generation pattern for Andhra Pradesh (http://www.projectsmonitor.com/detailnews.asp?secid=39&newsid=6347 ). 5 The fuel efficiency of tractors and trolleys is 6-7 km/liter. We take 6 km/liter in order to be conservative. Biomass will be transported over an average distance of 30 km with a minimum load per trip of 8000 kg. Thus, transporting up to 33,600 MT (Tapioca Tippi (9,900 MT), Rice Husk (13,200 MT) and Tapioca stems / Groundnut Husk / Saw dust (10,500 MT) requires 4,200 trips of 60 km (including the return trip). In total, a maximum of 42,000 liters of diesel oil will be consumed for the 4.0 MW plant per year, with total emissions amounting to 111 ton CO2/year (assuming an emission factor for diesel oil of 20.2 t C/TJ, a caloric value of 43.33 TJ/k ton and a density is 0.827 kg/l).

6 http://cdm.unfccc.int/EB/Meetings/016/eb16repan1.pdf CDM – VENSA – PDD (Version 02 – 8 July 2005) Page 17 of 56

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a) Project start date: In January 2001, VBL proposed to set up a 4.0 MW Power Plant based on Starch waste. Subsequently VBL management obtained permission from NEDCAP for setting up of the 4.0 MW Power Plant. Financing of the project was secured in October 2001 and project was commissioned in November 2003.

Step 0: Eligibility of projects already started Yes No Has construction started? Y Was construction begun before 01/01/2000? N Was construction before (i) registration date, and (ii) registration of a CDM activity?

Y

Was CDM considered from early stages of development? Y Is there documentation to this effect? Y

b) Evidence demonstration that CDM incentives were seriously considered in

the development of project: Despite several technical and financial risks associated with the project, VBL decided to start construction of cogeneration plant in October 2002. The reasonable assurance that the project would be able to avail carbon credits benefits was one of the key factors in the decision making.

During the planning phase itself (January 2001), VBL proposed to explore the possibility for marketing the CERs for better viability of the project. Subsequently, as the company was unable to obtain proper guidance and technical evaluation facilities, in August 2002 the issue of CERs marketing was temporarily postponed. In June 2004, VBL decided to revive the issue of CERs marketing and develop the biomass based cogeneration project as a CDM project under the Cleaner Technology Promotion In India (CTPI) supported by SECO/UNIDO.

Step 1: Identification of Alternatives to the Project Activity Consistent with Current Laws and Regulations Sub-step 1a: Define Alternatives to the Project Activity: The alternatives to the project include business-as-usual i.e. import of equivalent amount of electricity through the power generation mix of APTRANSCo grid. Almost all starch-manufacturing plants in India have their own boilers to generate steam and electricity supply is from the grid. The boilers dedicated to the starch manufacturing process are mainly fuelled with coal or lignite. The proposed CDM project uses starch industry solid waste and agricultural wastes (biomass) to generate power for self consumption and export of surplus power to the

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APTRANSCo grid. In absence of the project, same power might have been supplied through the power generation mix of APTRANSCo grid, resulting in CO2 (carbon dioxide) emissions. The data from APTRANSCo reveals that thermal generation (coal and gas based) accounts for as high as 80% of total generation in Andhra Pradesh7 as on 31/03/2005. This includes the share of Central Sector thermal power projects based on coal and gas. Sub-step 1b: Enforcement of Applicable Laws and Regulations: Both the project activity (cogeneration plant) and the alternative scenario (old boiler) at project site are in compliance with all regulations. Thus, the refurbishment of the project activity at project is not mandated by law and clearly exceeds the legal requirements.

Step 2: Investment Analysis: The project is a pioneer in utilization of waste from starch manufacturing process for electricity generation for self consumption and export of surplus power to the grid. However, there are currently no special incentives for these small power producers to offset the generally higher costs of non-conventional energy production as compared to conventional power production based on fossil fuel.

Implementation of the project faces investment barriers. The outlook for the starch market has changed over time. Compared to earlier years when starch production was considered as a major revenue-earner, the situation today is quite grim with depressed Indian and global starch markets. In the depressed starch price scenario, which affects capacity for internal accrual to generate funds for investment, making investments in cogeneration facility, which costs approximately INR 36 million / MW (US$ 0.8 million), is an issue. Though a number of financial institutes offer funds to implement cogeneration projects, the stringent equity considerations affect the possibility of accessing them. Some of the investment barriers are: • The cost of biomass fuel (rice husk) is low at the moment compared to conventional

fuel, as the renewable energy market is limited. If the market for renewable energy increases in India or other uses of the waste emerge, the costs of production increases as a result of the sacrifice of alternative revenues for the project owner.

• There are no special tariffs or grants schemes available in India for renewable energy projects and the project got finance on behalf of the financial strength of the project owner.

IRR Analysis: The most appropriate analytical option is the presentation of financial indicators (IRR

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calculation) for the project compared to benchmark IRR for biomass based power plants. The typical IRR benchmark in case of biomass based power plants is around 13% depending on the type of fuel that is used. IRR at present operating conditions with reduced power tariff i.e. INR. 3.18 / kWh are coming to 10.76%8 making the project “an unviable one” without CER sale revenue stream. With CER sale revenue stream the IRR is coming to 13.80% (see footnote 8) making it a viable option. A likely alternate investment decision would have been for the implementation of a coal based power plant. The typical IRR in case of coal based power plants is around 20% (see footnote 8) depending on the type of coal that is used While calculating the IRR in project scenario, the maximum fuel price is considered. The unit is located in the heart of biomass belt. Various biomass fuels are available throughout the year. Apart from this, VBL is using Tapioca Fibre and Rice Husk in their boiler for steam generation. Escalation in wages, O&M etc. were considered as 5%.

Least Cost Analysis: The project’s costs of generating electricity are higher than that for the least cost option of coal. The cost of electricity production from the project is estimated at INR 2.02/kWh (see footnote 8), whereas the annualised cost of power generation from a 100 MW coal based power plant are estimated in this study at INR 1.90/kWh (see footnote 8). Additionally IRR of a typical coal based (100 MW) power project is 20% (approx.) as against 11% (approx.) for biomass based power project (see footnote 8). VBL went for biomass based power generation option because of the following reasons:

1. The quality of grid power for VBL was bad as the voltage variation was high and the frequent interruptions in power supply results in heavy loss of production. Hence good quality of power was the immediate requirement for VBL and un-interrupted supply of power became necessary for smooth running and profitable operation of the plant. To get good quality of power, option with VBL was to generate power through coal based power plant or utilise the waste generated in-house for power generation.

2. Biomass based power generation (through in-house waste from plant and from market) is slightly costly as compared to coal based (explained above). The selection of biomass based power option is because the plant has full control on fuel availability and is beneficial with CDM revenues. At the same time, it is environmentally friendly as well.

On the basis of above analysis it is clear that VBL could have considered a coal based

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power plant instead of the biomass plant, which in terms of financial feasibility would be clearly more attractive than a biomass plant. It can thus be concluded that a biomass plant is not an attractive course of action and therefore its implementation is not the most likely scenario. Step 3: Barrier Analysis: Technological Barriers: The project uses an advanced cogeneration technology in the form of high-pressure boiler (65 kg/cm2, 4850C) with steam turbine coupled to an alternator for the generation of power. Currently, the starch manufacturing industry in India predominantly uses low efficiency, low-pressure boilers for their own steam generation (14 to 17 kg/cm2). The high-pressure boiler installed at VBL not only belongs to the first installations in the starch sector but is also among the most efficient installations in India.

Being aware of the difficult combustion characteristics of rice and tapioca residues VBL contracted with Thermax Ltd. Thermax took specific precautions with respect to the design (larger furnace, convective heat transfer surfaces, efficient soot blowers and conservative furnace outlet temperature) of the boiler.

As such, VBL was aware of the serious technological risk associated with the combustion of rice husk and tapioca residues. Additional revenues through carbon credits were considered essential to counterbalance the risks. Institutional Barriers: The lack of familiarity with handling high-pressure boilers coupled with the complex operation of condensing and extraction multistage turbines is a major barrier to adoption of the proposed new technology in the starch manufacturing sector. Furthermore, the project used new technologies that had not been implemented in starch manufacturing sector before. The technological risk was higher than conventional projects as the know-how and support facilities in manufacturers will be established together with the project. The above barriers lead to an increased risk for the project owner compared to establishing a conventional power plant for their starch-manufacturing unit. Step 4: Common Practice Analysis: Sub-step 4a: Analyze Other Activities Similar to the Proposed Project Activity: Almost all starch-manufacturing plants in India have their own boilers to generate steam and electricity supply is from the grid. The boilers dedicated to the starch manufacturing process are mainly fuelled with coal or lignite. The project activity is the first project in CDM – VENSA – PDD (Version 02 – 8 July 2005) Page 21 of 56

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India to utilize all the biomass waste products from the starch manufacturing process for generation of power and steam and supply excess electricity to the electricity grid system. Sub-step 4b: Discuss Any Similar Options that are Occurring: There is no other case in India in starch manufacturing sector of a project of this type. Step 5: Impact of CDM Registration: The CDM has made it possible to set up a cogeneration plant and export electricity to the grid. CDM revenues improve the project’s rate of return, without CERs, the project shows lower IRR, but breaks even with CER revenues in 10 years crediting period, which is necessary to initiate such pioneering projects. Thus the prospect of CDM credits for the project proved helpful in securing a go-ahead decision for this project, since they diversified the financial returns on investment. In the absence of CER revenue stream, the project might not have been taken at all. The registration of the proposed project activity will have a strong impact in paving the way for similar biomass projects to be implemented in the starch manufacturing sector. From the above assessment, it is clear that the proposed project does not fall within the baseline scenario and that it would not occur without the assistance of the CDM benefits.

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B.4 Description of how definition of the Project Boundary related to the baseline methodology selected is applied to the small-scale Project Activity: According to Appendix B of the simplified modalities and procedures for small-scale CDM project activities, the project boundary encompasses the physical and geographical site of the renewable generation source. For the proposed project activity the project boundary is from the point of fuel storage to the point of electricity supply to the starch manufacturing unit where the project proponent has a full control. The steam generation from the cogeneration activity has been excluded from the project boundary, as it is not included under the CDM project activity. Thus, project boundary covers fuel storage, boiler, steam turbine generator and all other accessory equipments. The transport of biomass and the state electricity grid are not included in the project boundary.

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Flow chart and project boundary is illustrated in the following diagram:

Biomass Storage

Emission Sequestered

Biomass Fired Boiler Emission Generated

Power Generation Unit

Electricity to Starch Manufacturing Unit

Auxiliary Consumption

Electricity Export to State Grid and Consumption

Steam for process requirement at site

Biomass Source

Project Boundaries

Figure B.1: Flow Chart and Project Boundary

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B.5 Details of the Baseline and its Development: B.5.1 Specify the baseline for the proposed project activity using a methodology specified in the applicable project category for small-scale CDM project activities contained in appendix B of the simplified M&P for small-scale CDM project activities: The general approach for the baseline is based on the baseline formula as included in Appendix B, IC category: Thermal energy for the user and ID category: Renewable electricity generation for a grid (UNFCCC, 2003b). The baseline proposed here is Option (b): The weighted average emissions of the current generation mix.

In the proposed baseline, Andhra Pradesh electricity grid is used as the reference region for estimating the current generation mix. Using the methodology available for small-scale project activities, the weighted average emissions (in KgCO2equ/kWh) of current generation mix of Andhra Pradesh is used for the calculation of baseline. Actual CO2 emission factor are used for the purpose. B.5.2 Date of completing the final draft of this baseline section: 29/07/2005 B.5.3 Name of person/entity determining the baseline: The baseline has been prepared by Winrock International India in consultation with VBL.

Company name : Winrock International India Address : 1 Navjeevan Vihar, New Delhi – 110017 India Telephone number : 91-11-26693868 Fax number : 91-11-26693881 E-mail : [email protected] Website : www.winrockindia.org

Winrock International India is not a project participant as meant in Annex 1.

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C. Duration of the project activity / Crediting period C.1 Duration of the small-scale Project Activity: C.1.1 Starting date of the small-scale Project Activity: 16th October 2002 The project started construction after January 2000. Referring to the Glossary of terms provided in version-2 (03 December, 2004) of “Guidelines for completing the project design document (CDM-PDD), the proposed new methodology: baseline (CDM-NMB) and the proposed new methodology: monitoring (CDM-NMM)” the project starting date is considered as October 16, 2002 the date of laying of foundation stone to start the actual implementation of the project activity, considering the future benefits through CDM for sustainable operation of the project. The project started the commercial operation from November 20, 2003.

C.1.2 Expected operational lifetime of the small-scale project activity:

Life time of the project : 20 years

C.2 Choice of the crediting period and related information: C.2.1 Renewable crediting period (at most seven (7) years per crediting period) C.2.1.1 Starting date of the first crediting period (DD/MM/YYYY): C.2.1.2 Length of the first crediting period: C.2.2 Fixed crediting period (at most ten (10) years): C.2.2.1 Starting date (DD/MM/YYYY): 20/11/2003 C.2.2.2 Length (max 10 years): – 10 years

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D. Application of a monitoring methodology and plan D.1 Name and Reference of Approved Methodology Applied to the small-scale Project Activity: The monitoring methodology / guideline mentioned in the ‘Appendix B of the simplified modalities and procedures for small scale CDM project activities’ in the project category Type I.C and Type I.D is considered as basis for monitoring methodology for the project activity. This methodology involves metering of the electricity generated by the renewable technology. Although the proposed project does not involve co-fired plants, the monitoring of the amount of biomass input and its energy content is included as well in the methodology. D.2 Justification of the Choice of The Methodology and Why It is Applicable to The small-scale Project Activity: The proposed project is eligible as a small-scale project (see section B.2), category ‘Thermal Energy for the User’ (I.C) and ‘Renewable electricity generation for a grid’ (1.D.). The monitoring methodology is consistent with the methodology as required in Appendix B (UNFCCC, 2003b). The proposed methodology thus provides measured data on the amount of electricity generated, the biomass input and the fossil fuel input. With this information, a reliable estimate of the amount of emission reductions can be made. In order to monitor the mitigation of GHG due to the project activity at VBL, the total electricity produced and auxiliary consumption, and captive power consumption for process plant, needs to be measured. The net electricity supplied to manufacturing facility of VBL and state grid by the project activity multiplied by emission factor for the grid will form the baseline for the project activity. Description of Monitoring Plan: Explanation of Data Collection: The data will be collected as follows:

• The quantity of biomass purchased will be based on invoices/receipts from farmers and the fuel contractor as well as with the weighbridge log. This will be audited in regular, annual tax and shareholder audits. If required the DOE will be given access to the audit and monitoring reports.

• Biogas and biomass produced in plant.

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• Electricity production and distribution will be measured and monitored through: o In-house electricity meters installed within the plant premises to record the

gross power produced, auxiliary power consumed, and captive power consumption for processes

o Two Electricity meters installed (one check meter and one main meter) at the inter connection point of the substation at Peddapuram for the electricity export

• The purchase and use of fossil fuels (coal) would of course cancel a measure of emission reductions. The purchase of fossil fuels, if made, will be tracked through the audit report and reflected in final emission reduction calculations. To date, the need to use fossil fuels has not occurred for the project.

• The energy content of the biomass is measured on an annual basis from a recognised testing laboratory

Missing Data: Missing data is only relevant on the level of electricity meters being temporarily out of order. At the sub-stations of APTRANSCo there are two meters: the main metering system and a back-up meter. If the main meter is out of order or under repair, the back-up meter will provide redundancy. Besides the two meters there will be meters from VBL within the plants themselves. However, these meters are for internal use (gross power produced, auxiliary power consumed and electricity supplied to manufacturing facility of VBL) only and APTRANSCo may not accept these readings for billing purposes. Electricity fed into the grid and unable to be metered will not be registered and invoiced. This will result in less registered emission reductions than actually generated. Operational Parameters of the power generating Unit: Total Electricity Generated: The total electricity generated by the power project will be measured in the plant premises to the best accuracy and will be monitored and recorded, on a continuous basis through installed electricity meters. Auxiliary Consumption: The electricity consumed by plant auxiliaries will be recorded in the plant premises to the best accuracy. This will be monitored and recorded on a continuous basis through installed electricity meters. The total quantum of electricity consumed by the auxiliaries would affect the total electricity supplied to the manufacturing unit and state grid and therefore the amount of GHG reductions.

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Electricity Exported to the State Grid: Net electricity exported to state grid would depend on total electricity generated, auxiliary consumption and captive consumption. All the above parameters / factors will demonstrate the performance of the project at any point of time.

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D.3 Data to be Monitored: The tables below include the variables that will be monitored for this project. No emissions from the project activity are foreseen. a) Parameters affecting the emission reduction potential of the project activity

ID

Number

Data

type

Data variable Data

unit

Measured (m),

calculated (c)

or estimated (e)

Recording

frequency

Proportion

of data to be

monitored

How will the data

be archived?

(electronic/ paper)

For how long is

archived data to

be kept?

Comment

1 Energy Total

electricity

generated

kWh m Continuous Total Electronic / paper 2 years after end

of crediting

period

Measured in plant

premises and monitored

and recorded

continuously

2 Energy Auxiliary

consumption

kWh m Continuous Total Electronic / paper 2 years after end

of crediting

period

Measured in plant

premises and monitored

and recorded

continuously

3 Energy Power

supplied to

process plant

kWh m Continuous Total Electronic / paper 2 years after end

of crediting

period

Measured in plant

premises and monitored

and recorded

continuously

4 Energy Power

supplied to

state grid

kWh m Continuous Total Electronic / paper 2 years after end

of crediting

period

Measured at the inter

connection point of the

substation at

Peddapuram on daily

basis and data from

invoices on monthly basis

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b) Fuel related parameters affecting the project activity ID

Number

Data

type

Data variable Data

unit

Measured (m),

calculated (c)

or estimated (e)

Recording

frequency

Proportion of

data to be

monitored

How will the data

be archived?

(electronic/ paper)

For how long is

archived data to

be kept?

Comment

1 Fuel Biomass MT m Daily > 95% Paper 2 years after end

of crediting

period

Data from invoices and

log book

2 Fuel Fossil fuel MT m Daily > 95% Paper 2 years after end

of crediting

period

Monitoring of fossil fuel

is only relevant if there

is insufficient biomass

3 Fuel Biogas NM3 m Daily > 95% Paper 2 years after end

of crediting

period

Data from log book

4 Fuel Energy content MJ/k

g - Biomass

- Biogas

- Coal

m Annually N/A Paper 2 years after end

of crediting

period

Monitoring of energy

content will serve

useful if/when fossil fuel

sources are used

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D.4 Qualitative explanation of how Quality Control (QC) and Quality Assurance (QA) Procedures are undertaken: Monitoring Approach: The general monitoring principles are based on:

• Frequency • Reliability • Registration and reporting

As the emission reduction from the project are determined by the number of units supplied to the manufacturing facility of VBL and state grid (and then multiplying with appropriate emission factor) it becomes important for the project entity to monitor the power supplied to manufacturing facility and state grid on real time basis. Net emission reductions also depend on the leakage estimate due to firing of coal in case of exigencies. Hence the second important thing is to monitor the quantity of coal used, if any, and quantify the power contribution from the same. Frequency of Monitoring: The project entity will install all metering and check metering facilities within the plant premises and at the inter connection point of the substation. The measurement will be recorded and monitored on a continuous basis by the project entity. Reliability: The amount of emission reduction is proportional to the net energy generation from the project. Since the reliability of the monitoring system is governed by the accuracy of the measurement system and the quality of the equipment to produce the result all power measuring instruments must be calibrated once a year for ensuring reliability of the system. All instruments carry tag plates, which indicate the date of calibration and the date of next calibration. Therefore the system ensures the final generation is highly reliable. The Shift Engineer is responsible for data recording and the Plant Manager ensures that the data is recorded continuously and is archived properly. Also, the Shift Engineer had undergone an induction programme including plant operations, data monitoring, report generation etc.

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Registration and Reporting: Registration of data is computerised. Daily, weekly and monthly reports are prepared stating the generation. The other major factors, which need to be ensured and monitored, are the use of biomass and coal (if any). Fuel Related Parameters: Quantity of Biomass used in the Boiler as Fuel: The biomass received from the traders is stored in the plants storage area specially designed for such storage. The amount of biomass entering the plant is measured through the weighbridge log and the bills / invoices to the biomass traders and records of the same is maintained. The weighing system is being calibrated regularly to ensure the accuracy of the measurement. The data is recorded for further verification. The amount of biomass purchased is based on invoices / receipts from traders. Quantity of the Coal used in the Boiler as Fuel: Coal demands a similar monitoring system in place (as above) for the amount of coal fired (if any). Quality of Biomass used in the Boiler: The main fuel proposed for the power generation is only biomass. The properties of various types of biomass (Tapioca Tippi, Rice Husk, and Tapioca stems / Groundnut Husk / Saw Dust) from ultimate analysis-energy content, ash compositions etc. are already established and will be consistent in the region. Similarly, the properties of biogas from ultimate analysis - energy content etc. is also established. Quality of Coal Fired in the Boiler: The properties of the coal from ultimate analysis – energy content and composition etc. will depend on the quality of coal received. D.5 Please describe briefly the operational and management structure that the project participant(s) will implement in order to monitor emission reductions and any leakage effects generated by the project activity To address all O&M issues, the project has experienced Engineers and has an Officer for Fuel Procurement under the guidance of the Executive / Technical Director. Together they have recruited and groomed a team of Supervisors and Field Representatives to effectively

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control and monitor the complete process of fuel procurement, quality issues, and the handling and storage of material in the plant area. The monitoring parameters relevant for the CDM activity (see section D.3), i.e. biomass input flow, biomass energy content, electricity production, consumption and export are part of the regular monitoring scheme of the plant. No additional CDM related training was required. The monitoring data required for the CDM verification are taken from the regular digital and manual logs. D.6 Name of Person / Entity Determining The Monitoring Methodology: Winrock International India (see also section B.5)

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E. Estimation of GHG emissions by sources E.1 Formulae Used: (In E.1.1 please provide the formula used to calculate the GHG emission reductions by sources in accordance with the applicable project category of small-scale CDM project activities contained in appendix B of the simplified M&P for small-scale CDM project activities. In case the applicable project category from appendix B does not indicate a specific formula to calculate the GHG emission reductions by sources, please complete E.1.2 below.) E.1.1 Selected Formulae as Provided in Appendix B: (Describe the calculation of GHG emission reductions in accordance with the formula specified for the applicable project category of small-scale CDM project activities contained in appendix B of the simplified M&P for small-scale CDM project activities.) Since category I.C and I.D does not indicate a specific formula to calculate the GHG emission reduction by sources, the formula is described below in E.1.2 E.1.2 Description of formulae when not provided in appendix B: E.1.2.1 Describe the formulae used to estimate anthropogenic emissions by sources of GHGs due to the project activity within the project boundary: (for each gas, source, formulae/algorithm, emissions in units of CO2 equivalent) The project is a CO2 neutral biomass-based power plant designed to supply electricity to the grid. Therefore, no additional anthropogenic emissions of GHGs due to the project activity are expected to be generated within the project boundary. For further information, see section B.3.

In case of exigencies of biomass scarcity, VBL proposes to use coal as fuel. However, in the last 14 years of the operation of the old rice husk fired boiler and last 1.5 years of operation of new boiler, VBL has never faced any shortage of the biomass. Hence the uncertainties in the project emissions are negligible. In case coal is used, the CO2 emissions during the usage of coal will be calculated in the following manner:

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1. Using IPCC Standard CO2 Emission Factor

CEC = Q*CC*EFC Where, CEc = Carbon-dioxide emission due to coal burning at project site, MT CC = Calorific value of coal, kcal/ton Q = Quantity of coal burned, MT EFC = IPCC standard emission factor, kg of CO2/kcal

OR

2. Using Actual Carbon Content of the Coal CO2 Emission [in kgs] = Stoichiometric CO2 from carbon content of coal (based on total carbon content). To have an estimate of the project CO2 emission quantity due to combustion of coal along with the biomass, total carbon content of the coal should be known. Combustion reaction for CO2 emission is as under.

C + O2 = CO2

Assuming complete combustion of coal, following formula can be used for conservative estimation of CO2 emissions. CEC = (44/12)*C*Q Where, CEc = Stoichiometric carbon-dioxide emission due to coal burning at project, MT

C = Carbon percentage in coal, % Q = Quantity of coal burned, MT

Diesel Generator (DG) sets will be used as standby. However the emissions from the usage of DG sets are not considered in the project activity emissions since the electricity generated by DG sets would be monitored separately. For each start up of the cogeneration plant, the DG (600 kVA) set is operated for two hours with a total diesel consumption of 100 litres. The cogeneration plant require four such starters per annum, hence consuming 400 litres of diesel per annum which is equivalent to generation of 1 ton CO2 per annum (assuming an emission factor for diesel oil of 20.2 t C/TJ, a caloric value of 43.33 TJ/k ton and a density is 0.827 kg/l).

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E.1.2.2 Describe the formulae used to estimate leakage E.1.2.2 Describe the formulae used to estimate leakage due to the project activity, where required, for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities (for each gas, source, formulae/algorithm, emissions in units of CO2 equivalent)

As prescribed in Appendix B of the Simplified Modalities and Procedures for small-scale CDM project activities, for Category I.C and I.D, leakage estimation is only required if renewable energy technology equipment is transferred from another activity. This does not apply to the project case. However, the only source of leakage activity identified, which contributes for GHG emissions outside the project boundary is transportation of biomass from biomass suppliers to project site. For calculation of leakage, see section B.3.

The CO2 emission (leakage) occurs during the transportation of coal from the mines to respective coal based power plants. The distance between the coal mines and the power plants is higher as compared to the transportation distance between biomass suppliers to project site and hence the higher CO2 emissions. To be on conservative side, this leakage due to coal transportation has not been added while calculating the baseline of Andhra Pradesh grid and hence a small leakage due to transportation of biomass has been neglected from the calculations and estimations of emission reductions.

E.1.2.3 The sum of E.1.2.1 and E.1.2.2 represents the small-scale project activity emissions: The emissions from the project due to use of coal (if any) would give the project activity emissions.

E.1.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of GHG’s in the baseline using the baseline methodology for the applicable project category in appendix B of the simplified modalities and procedures for small-scale CDM project activities: (for each gas, source, formula / algorithm, emissions in units of CO2 equivalent)

Andhra Pradesh state grid is considered for baseline analysis and calculation of anthropogenic emissions by fossil fuels during power generation. Andhra Pradesh’ present generation mix has been used to arrive at the net carbon intensity / baseline factor of the chosen grid. It is observed that, in the Andhra Pradesh generation mix, coal and gas based power projects are responsible for GHG emissions. As per the provisions of the proposed methodology the emission coefficient for the electricity displaced would be calculated in

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accordance with provisions of paragraph 29 (a) of ‘Appendix B of Simplified Modalities and Procedures for Small Scale CDM Project Activities’.

The emission coefficient has been calculated in a transparent and conservative manner as: The weighted average emission of the current generation mix:

Step-by-step calculation of baseline emission is as under:

Step 1 : Overall efficiency of coal based power plants

= 35%

Step 2 : Overall efficiency of gas based power plants

= 50%

Step 3 : CO2 emission factor for coal

= 96.10 Kg CO2 / GJ9

Step 4 : CO2 emission factor for gas

= 63.10 Kg CO2 / GJ10

Step 5 : Actual emission factor for coal

=CO2 emission factor for coal / Overall efficiency of coal based power plants (Kg CO2 / kWh)

Step 6 : Actual emission factor for gas

=CO2 emission factor for gas / Overall efficiency of gas based power plants (Kg CO2 / kWh)

Step 7 : Net emission factor for coal

=Actual emission factor for coal * % of generation by coal out of total generation (Kg CO2 / kWh)

Step 8 : Net emission factor for gas

=Actual emission factor for gas * % of generation by gas out of total generation (Kg CO2 / kWh)

Step 9 : Total net emission factor =Net emission factor for coal + Net emission factor for gas (Kg CO2 / kWh)

Step 10 : Units consumed at VBL and exported to APTRANSCo grid

=Total power generation – Total auxiliary consumption

Step 11 : Project emissions = Coal used * Heat value of coal * 9 As per Revised 1996 IPCC Guidelines for National GHG Inventories: Reference manual, page 1.13, for sub-bituminous coal, IPCC standard CO2 emission factor is 96.1 t CO2 / TJ. 10 As per Revised 1996 IPCC Guidelines for National GHG Inventories: Reference manual, page 1.13, for natural gas liquefied, IPCC standard CO2 emission factor is 63.1 t CO2 / TJ.

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CO2 emission factor of coal as per IPCC

Step 12 : Baseline emission =Total net emission factor * Units consumed at VBL and exported to APTRANSCo grid

Step 13 : CO2 emission reduction due to project activity

=Baseline emission – Project emissions

Since there is a gap between demand and supply in Andhra Pradesh grid, the power supplied to VBL (from the grid) in the non-project scenario and the export of power from the project activity to Andhra Pradesh grid can be diverted to other utilities, in the project scenario. Hence the generation of power at VBL from the project activity will partially fulfil the power requirement for the state of Andhra Pradesh.

If the same amount of electricity is generated by the coal and gas based power project mix, it adds to the emissions that are ultimately getting reduced by the project activity. Hence, the baseline calculated using above methods / scenarios would represent the realistic anthropogenic emissions by sources that would occur in absence of the project activity.

The uncertainties in the baseline, arising out of capacity additions and deletions are already taken into consideration during calculation of total net baseline emission factor.

E.1.2.5 Difference between E.1.2.4 and E.1.2.3 represents the emission reductions due to the project activity during a given period:

The following formula is used to determine emission reduction:

CO2 emission reduction due to project activity = Baseline emission - Project emission

E.2 Table providing values obtained when applying formulae above:

Using UNFCCC baseline methodology for small-scale CDM project, emission reductions by project activity for 10 years crediting period has been calculated and tabulated as under.

Table E.2 : CO2 Emission Reductions due to project activity

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2003-

04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Baseline

Emission

factor

kgCO2/

kWh

0.72

7 0.721 0.726 0.713 0.708 0.706 0.704 0.702 0.700 0.698

Plant operation data

Gross

capacity MW 4 4 4 4 4 4 4 4 4 4

PLF % 26.6 85 85 85 85 85 85 85 85 85

Days of

operation Days 365 365 365 365 365 365 365 365 365 365

Hours of

operation Hours 8760 8760 8760 8760 8760 8760 8760 8760 8760 8760

Electricity

generation MWh/yr 9321 29784

2978

4

2978

4

2978

4

2978

4

2978

4

2978

4

2978

4 29784

Auxiliary

consumption MWh/yr 1025 3276 3276 3276 3276 3276 3276 3276 3276 3276

Captive

consumption

& electricity

export

MWh/yr 8296 2650

8

2650

8

2650

8

2650

8

2650

8

2650

8

2650

8

2650

8 26508

Plant emission data

Project

emissions tCO2 0 0 0 0 0 0 0 0 0 0

Leakage tCO2 0 0 0 0 0 0 0 0 0 0

Emission reductions

Emission

reduction

tCO2-

/yr 6033

1910

3

1925

6

1891

0

1876

8

1871

2

1865

7

1860

1

1854

6 18492

Total Emission Reductions (tons) 175079

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Uncertainties: There are two primary areas of uncertainties in the baseline:

1. The PLF of 85% has already been achieved in 2004-05. It is assumed here that this peak PLF will continue for the remainder of the project’s ten year duration. There exist the possibilities of not maintaining the proposed PLF during the crediting period. However, it should be stressed here that the majority of the technological challenges appear to have been resolved and the peak PLF should be maintained.

2. Emissions from the generation of electricity i.e. when a fossil fuel source must be used in the event that insufficient biomass material is available – may be another situation where current assumptions prove incorrect. What can be said is that to date there has been no need to use fossil fuels in place of the biomass material. In the event that this changes, appropriate monitoring procedures are in place to track the reduced emission reductions.

Therefore a conventional energy equivalent of 246.87 Million kWh for a period of 10 years in Andhra Pradesh would be saved by the 4 MW biomass based power plant which in turn will reduce 175,079 tons of CO2 emissions considering baseline calculations. The methodology adopted to calculate the baseline is given in detail in Annx-3 (Excel sheets attached).

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F. Environmental Impacts F.1 If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: According to Indian regulation, the implementations of biomass plants do not require an Environmental Impact Assessment (EIA). The Ministry of Environment and Forests (MoEF), Government of India notification dated June 13, 2002 regarding the requirement of EIA studies as per the Environment Protection Rule, 1986 (MoEF, 2002) states that any project developer in India needs to file an application to the MoEF (including a public hearing and an EIA) in case the proposed industry or project is listed in a predefined list. Thermal Power Plants with an investment of less than INR 1 billion (US$ 22.22million) are excluded from this list. As the investment of biomass based project (being a Thermal Power Plant) is less than INR 1 billion (total project cost is INR 0.15 billion (US$ 3.436 million)), an EIA is not required (neither is a public hearing). However the design philosophy of this cogeneration project activity is driven by the concept of providing the energy with acceptable impact on the environment hence possible environmental impacts of the project activity are described here. The following environmental aspects are addressed:

• Particulate matter and gases • Dry fly ash • Water use • Waste water

Particulate Matter and Gases: The elements polluting the air that are discharged from the Cogeneration power plant are:

• Dust particulate from fly ash in flue gas • Nitrogen oxide in flue gas • Sulphur di-oxide in flue gas

Electrostatic precipitator (ESP) is installed for the steam generator to contain the dust emission from plant to a level of less than 115 mg/Nm3. Adequate height of the stack for the biomass fired boiler, which disburses the pollutants, has been provided as per guidelines given by the pollution regulations, for dust and sulphur-di-oxide emissions in the atmosphere.

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The temperatures encountered in the boiler while burning the specified fuels, are low enough not to produce nitrogen-oxides. Hence, no separate measures are taken to contain the nitrogen oxide pollutants. Dry Fly Ash: The biomass as fuel has only 5-14% ash compared to 30-40% of ash in coal. Ash disposal is one of the most significant concerns associated with power generation. The above reduction of ash generated per megawatt of installed capacity is a quantum leap in addressing this concern. Leading coal-based power units on an average generate 1,368 tonns/year/ MW of installed capacity of ash. In comparison, the project activity generates ash to the extent of 420 tonns/year/MW of installed capacity (approximately a third of coal based units). The wet ash from the boiler grate is being collected, transported and stored in ash bunkers through conveyer system. The dry fly ash from the economizer, air pre-heater, boiler bank and ESP hoppers is collected by screw conveyer and stored in ash bunker. The ash is being supplied to brick and cement manufacturers as filler material. Provision is made in the system for water spray to eliminate dust nuisance in the plant. Water Use: The cogeneration plant has a consumption rate of 150 m3/day/MW of installed capacity compared to 131 m3/day/MW of installed capacity for large coal based plants. This is to be expected since the project units are small and do not have the advantages of economies of scale. Furthermore, the seasonal fluctuations are not significant and since treated effluents are being used for irrigation on the premises (part of this would result in recharge of ground water); the slightly higher specific water consumption may not be considered unsustainable. Waste Water: Effluent from water treatment plant: Hydrochloric acid and sodium hydroxide is being used as regenerants in the proposed water treatment plant. The acid and alkali effluent generated during the regeneration process of the ion-exchangers is being drained into a lined underground neutralizing pit. Generally these effluents are self neutralizing. The effluent is then being pumped into the effluent treatment ponds which form part of the main starch unit as well as cogeneration power plant’s effluent disposal system. The neutralizing pit has been sized with sufficient capacity. The rejects from water treatment plant is having high TDS and is being diluted and used for cleaning purposes in the project activity. This water also could be used for plantation. Biocide in cooling water: The biocide dosing is done to prevent biological growth in the cooling tower system. This would not result in any chemical pollution of water and also meets the national standards for the liquid effluent.

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Boiler blow down: pH of the blow down water is in the range of 9.8 to 10.2 and the temperature is about 850C. The quantity of blow down from the boiler is about 361 kg/hr, however, part of this is being flashed in the blow down tank and the flashed steam is taken to the de-aerator for supplementing the steam supplied for decreasing the boiler feed water. Hence, the actual blow down water released to the drains is about 230 kg/hr and the temperature is about 600C. As this quantity is very small, the blow down is used for on land irrigation. Sewage from various buildings in the plant: Sewage from various buildings in the power plant area is conveyed through separate drains to the effluent treatment plant (ETP). The treated effluent from ETP is used for on land irrigation. Thermal pollution: A close circuit cooling water system with cooling towers has been installed. This eliminates the letting out of high temperature water into the canals / river and prevents thermal pollution. Blow down, amounting 520 m3/day from the cooling tower, is collected and used for on land irrigation. Hence, there is no separate pollution on account of blow down from cooling water system. Noise pollution: The rotating equipment in the power plant has been designed to operate with a total noise level of not exceeding 70 dB (A) as per the requirement of the Noise Pollution (Regulation and Control) Rules, 2000. The rotating equipments are provided with silencers where required to meet the noise pollution. Monitoring: The characteristics of the effluents from the power plant is monitored and maintained so as to meet the requirements of State Pollution Control Board and the minimum national standards for effluent from thermal power plant. Air quality monitoring (Suspended Particulate Matter) is also undertaken to ensure that the dust level is within limit. The particulate emission monitoring at the stack is performed once in two months to keep a continuous check on the performance of the ESP. Adequate sampling openings is provided in the stack. G. Stakeholders Comments

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G.1 Brief description of how comments by local stakeholders have been invited and compiled: Public Participation Requirements in India: To design, construct and operate a small-scale thermal power plant like the biomass based power plant in this project, there are no specific public consultation requirements. However, the normal formal procedures need to be followed in order to obtain the required land and operational licenses and permits. Initial approval from the NEDCAP was essential because it is the single agency for the Government of Andhra Pradesh to permit such renewable energy ventures. Thereafter but prior to the construction and operation of the power project, the following permissions are required: Before the plant’s construction start date:

• Conversion of land from Agricultural to Non Agricultural – from respective District Collector

• Department of Factories and Boilers under Department of Industries, Government of Andhra Pradesh

• Andhra Pradesh Pollution Control Board – Initial Consent to Establish (separately for Water and Air).

• Power purchase agreement form the transmission authority (APTRANSCo) Before the plant’s operation date:

• Ground Water Department, Government of Andhra Pradesh, for ground water use • Andhra Pradesh Pollution Control Board –Consent to Operate the Plant • Electrical Inspectorate (from Electrical Wing of Public Works Department) before the

start generating power. The permissions have already been obtained. None of the above permissions include public participation. Public hearings may be necessary if an Environmental Impact Assessment (EIA) is required. However for smaller thermal plants (below investment of INR 1 Billion), this is not required (see section F.1). Stakeholder Consultation: The local stakeholders are immediately affected by the activities of the project. The effect is on the local environment, social life and economics. All the individuals and organizations

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falling in the above effects are perceived as stakeholders. They can be within the boundaries of the village, district, state or nation. VBL checked the opinion of the stakeholders on the project through consultation of stakeholders. The following stakeholders were identified:

• The rural population living in the neighbourhood of the plant • Customer - APTRANSCo • Licensing and regulatory authorities like

o Non-conventional Energy Development Corporation of Andhra Pradesh (NEDCAP)

o Andhra Pradesh Pollution Control Board (APPCB) o Andhra Pradesh Electricity Regulatory Commission (APERC)

Rural Local Population: The rural population is directly involved with the project. First of all they will be confronted with the construction and operation of a power plant in their direct environment. When selecting the site and designing the project attention was given to maintain a very good relationship with the local population. The project depends on the supply of biomass from the rural farmers and therefore a good and mutually beneficial relation is essential. In addition to this, the project would also lead to local manpower working at the plant site. Since, the project will provide good direct and indirect employment opportunities the local populace is encouraging the project. The project did not require displacement of any local population. In addition, the local population is also an indirect consumer of the power that is supplied from the power plants. This is essentially because the power sold to the grid is expected to improve the stability in the local electricity network. Since, the distance between the electrical substation for power evacuation and the plant is less; installation of transmission lines has not created any inconvenience to the local population. Thus, the project will not cause any adverse social impacts on local population rather helps in improvising their quality of life. To further prove this VBL obtained an approval from Gram Panchayat of G. Ragampeta village. This is the village level body formed out of local farmers and residents. This body met and granted an approval.

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Customer – APTRANSCo: As a buyer of the power, the APTRANSCo is a major stakeholder in the project. They hold the key to the commercial success of the project. APTRANSCo has already cleared the project and VBL has already signed Power Purchase Agreement (PPA) with APTRANSCO. Licensing and Regulatory Authorities: APPCB has prescribed standards of environmental compliance and monitors the adherence to the standards. The project has already received No Objection Certificate (NOC) from APPCB to start commissioning of the plant and has also obtained the consent for operation (CFO) from APPCB. NEDCAP implements policies in respect of non-conventional renewable power projects in the state of Andhra Pradesh and has accorded approval to the project. Further, State’s apex body of power is Andhra Pradesh Electricity Regulatory Commission (APERC) and they have already issued consent for the installation of biomass power plant of 4 MW capacity under section 21 (4) of AP electricity reform Act 1998 read with section 44 of the Indian Electricity Supply Act 1948. The government of India, through Ministry of Non-conventional Energy Sources (MNES), has been promoting energy conservation, demand side management and viable renewable energy projects including wind, small hydro and bagasse cogeneration / bio-mass power. For host country approval to the project, VBL is intending to submit the project for approval to Designated National Authority (DNA) under Ministry of Environment and Forest (MoEF). G.2 Summary of the Comments Received: So far only positive comments have been received. The project is welcomed by all stakeholders because it is environmentally benign, it generates income and jobs, it supports the development of the rural districts and the state, it helps bridging the gap between the demand and supply of electricity, reduces T&D losses, among other benefits. As mentioned above, VBL has already received the approvals and clearances for their project from the following stakeholders:

• Consent order of Establishment (CFE) and consent for Operation (CFO) from APPCB;

• Power Purchase Agreement with APTRANSCo; • Approval from the Gram Panchayat, G. Ragampeta village.

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G.3 Report on How Due Account was Taken of Any Comments Received: As no negative comments have been received, there was no need to address any particular concerns.

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Annex 1

CONTACT INFORMATION FOR PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Vensa Biotek Limited P.O.Box: 18 Building: City: Samalkot State: Andhra Pradesh Postcode/ZIP: 533440 Country: India Telephone: +91 884 2327851-4 FAX: +91 884 2327303 E-Mail: [email protected] URL: Represented by: Title: Executive Director Salutation: Mr. Last Name: Venigalla Middle Name: Krishna First Name: Gopi Department: Mobile: +91 9848961153 Direct FAX: +91 884 2327303 Direct tel: +91 884 2327851-4 Personal E-Mail: [email protected]

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING No Public Funding is available to the project.

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Annex 3

BASE LINE DATA

The methodology adopted for the calculation of the baseline is 'the weighted average emissions of the current generation mix". Year 2003-04 is considered as the base year for prediction of future capacity additions during the crediting period. APGENCO generation data as tabulated below is used for consideration of installed Andhra Pradesh grid capacity and energy availability during the period 2003-04.

Table No. 1: Installed Capacity and Generation in Andhra Pradesh during 2003-04 Sr. No.

Sector Installed capacity MW

Generation million kWh

1. Coal / Lignite Based, MW (AP Genco) 2972.5 16397.56

2. Coal / Lignite Based, MW (share from central plants)

2069.5 11416.23

3. Thermal - Gas / Naptha based (Joint Sector - APGPCL)

272 1713.64

4. Hydro (AP Genco) 3586.36 3726.95 5. Private / IPP (gas / naptha) 998.88 6293.09 6. Private / IPP (coal / lignite) 0 0.00 7. Nuclear, MW (central) 143 617.21 8. Renewable- wind/mini hydel/cogen/bio-mass 477.11 1656.01

9. Others (mini power plants / iso. Gas wells / waste heat / industrial Waste etc.)

176.21 982.73

TOTAL AP GRID 10695.56 42803.42 In order to arrive at the detailed break up of power generation mix (table no. - 1) in Andhra Pradesh, various documents including the Andhra Pradesh Power Profile and various web sites were refereed. The websites refereed for estimating the generation mix in Andhra Pradesh are:

1. APGENCO web site, www.apgenco.com 2. Andhra Pradesh State Electricity Board at www.infraline.com/power 3. Promotion of Non Conventional energy, www.infraline.com/power

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As per the availability, actual generation figures as against the sector wise installed capacity were used. Wherever the break up of generation was not available, proportionate calculated figures were used so as to match the total energy availability to Andhra Pradesh grid. In order to predict the future capacity additions in the state, the proposed power projects of different sectors (state, central, IPP's, private sector etc.) along with their implementation plan were considered. Predictions of capacity additions through Renewable projects are based on the projects sanctioned by NEDCAP till date. Projects with an installed capacity of 1013 MW of power under non-conventional energy sources have been sanctioned as of date. According to NEDCAP, projects with an aggregate capacity of 447 MW have already been commissioned till now. For the purpose of baseline calculation, the balance capacity of 536 MW (1013-447 MW) is equally added (60 MW) in every year for the crediting period of 10 years. The list of the proposed projects considered with their implementation schedule is given in the table below:

Location State / Central / IPP

Promoter Fuel Capacity (MW)

Expected Implementation

Schedule Simhadri Central NTPC Coal 1000 2002 Srisailam LB State APGENCO Hydel 900 300 MW in 2003,

300 MW in 2005 and 300 MW in 2007

Ramagundam IPP BPL Power Coal 520 260 MW by 2005 and 260 MW by 2006

Krishnapatnam A IPP GVK Power

Coal 520 2006

Krishnapatnam B IPP BBI Power Coal 520 260 MW by 2004 and 260 MW by 2005

Ramagundam III Central NTPC Coal 500 2005 Kondapalli IPP Lanco Gas 355 2001 Vemagri IPP Nippon

Denro Ispat

Natural Gas 492 370 MW in 2005

Rayalseema II State APGENCO Coal 420 210 MW by 2005 and 210 MW by 2006

Peddapuram IPP Gautami Power

Natural Gas 464 2006

Jegurapadu Extn IPP GVK Power

Gas 230 2002

Samalkot IPP BSES Andhra Power

Natural Gas 210 2002

Source: Andhra Pradesh State Electricity Board at www.infraline.com/power No additional project other than above list has been considered for capacity additions.

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Appendix A Sr. No References 1.

Website of Ministry Non-Conventional Energy Sources (MNES), Government of India, www.mnes.nic.in

2.

Website of Indian Renewable Energy Development Agency (IREDA), www.ireda.nic.in

3.

Andhra Pradesh Power Profile at www.bisnetworld.net/bisnet/states

4. www.infraline.com/power/5. Annual Report, Ministry of Power, 2003 6.

Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC)

7.

Website of United Nations Framework Convention on Climate Change, http://unfccc.int

8.

UNFCCC document: Annx B to attachment 3, Indicative simplified baseline and monitoring methodologies for selected small scale CDM project activity categories

9.

UNFCCC decision 17/CP.7: Modalities and procedures for a clean development mechanism as defined in article 12 of the Kyoto Protocol

10.

UNFCCC, Clean Development Mechanism, Project Design Document (CDM-PDD) version 01 (with effect as of: August 29, 2002)

11.

Detailed project report on 4 MW Biomass based power project – Vensa Biotek Limited

12.

Website of Central Electric Authority (CEA), Ministry of Power, Govt. of India- www.cea.nic.in

13.

CEA published document “16thElectric Power Survey of India”

13.

Website of APGENCO, www.apgenco.com

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Appendix B

Abbreviation

1 0C Degrees Celcius 2 AP Andhra Pradesh 3 APERC Andhra Pradesh Electricity Regulatory Commission 4 APGENCO Andhra Pradesh Power Generation Corporation Limited 5 APGPCL Andhra Pradesh Gas Power Corporation Limited 6 APPCB Andhra Pradesh Pollution Control Board 7 APTRANSCo Andhra Pradesh Power Transmission Corporation Limited 8 CDM Clean Development Mechanism 9 CEA Central Electricity AUTHORITY 10 CER Certified Emission Reductions 11 cm Centimeter 12 CFE Consent Order of Establishment 13 CFO Consent For Operation 14 CH4 Methane 16 CO2 Carbon Di-oxide 17 CTPI Cleaner Technology Promotion In India 18 dB Decibels 19 DG Diesel Generator 20 DNA Designated National Authority 21 DOE Designated Operational Entities 22 DPR Detailed Project Report 23 EIA Environmental Impact Assessment 25 ESP Electrostatic Precipitator 26 ETP Effluent Treatment Plant 27 GHG Greenhouse Gas 28 GJ Gigajoule 29 hr Hour 30 HZ Hertz 31 IDBI Industrial Development Bank of India 32 IFCI Industrial Finance Corporation of India 33 INR Indian Rupee 34 IPCC Intergovernmental Panel on Climate Change 35 IPP Independent Power Producers

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36 IRR Internal Rate of Return 37 IREDA India Renewable Energy Development Agency 38 Kcal Kilo Calories 39 kg Kilo Gram 40 KgCO2equ/kWh Kilo Gram Carbon Di oxide equivalent / Kilowatt Hour 41 kg/cm2 Kilo Gram per Square Centimeters 42 kg/l Kilogram per Liters 43 km Kilometer 44 KP Kyoto Protocol 45 KV Kilovoltage 46 kVA Kilo Volt Ampere 47 kW Kilo Watt 48 kWh Kilo Watt Hour 49 m3/day/MW Cubic meters per day per mega watt 50 LP Low Pressure 51 MJ/kg Mega Joules per Kilo Gram 52 MNES Ministry of Non Conventional Energy Sources 53 MoEF Ministry of Environment and Forests 54 MoP Ministry of Power 55 MT Metric Tons 56 MU Million Units 57 MVA Million Volt Ampere 58 MW Mega Watt 59 MWh Mega Watt Hour 60 N2O Nitrous Oxide 61 NEDCAP Non-conventional Energy Development Corporation of

Andhra Pradesh 63 NGO Non Government Organization 64 NMB New Methodology: Baseline 65 NMM New Methodology: Monitoring 66 NOC No Objection Certificate 67 O&M Operation and Maintenance 68 PDD Project Design Document 69 PIN Project Idea Note 70 PLF Plant Load Factor 71 PPA Power Purchase Agreement 72 QA Quality Assurance 73 QC Quality Check

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4 .0 MW Indus t r i a l Was te Based Power Gene ra t i on P ro jec t o f Vensa B io tek L im i t ed

74 RE Renewable Energy 75 RPM Rotation Per Minutes 76 SEB State Electricity Board 77 SECO State Secretariat for Economic Affairs of Switzerland 78 STG Steam Turbine Generator 79 t C/TJ Tons of Carbon per Tera Joule 80 T&D Transmission and Distribution 81 tCO2 Tons Carbon Di oxide 82 tCO2/yr Tons Carbon Per Year 83 TDS Total Dissolved Solids 84 TJ/k ton Tera Joules per Kilo Ton 85 TPD Tons per Day 86 TPH Tons Per Hour 87 UNFCCC United Nations Framework Convention on Climate

Change 88 UNIDO United Nations Industrial Development Organization 89 US$ United States Dollar 90 VBL Vensa Biotek Limited

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