Cikaso_010413_clear.pdf

8/17/2019 Cikaso_010413_clear.pdf

1/37

PROJECT DESIGN DOCUMENT FORMFOR SMALL-SCALE CDM PROJECT ACTIVITIES (F-CDM-SSC-PDD)

Version 04.1

PROJECT DESIGN DOCUMENT (PDD)

Title of the project activity Cikaso Hydroelectric Power Project inIndonesia

Version number of the PDD version 02.3Completion date of the PDD 02/04/2013Project participant(s) PT. Bumiloka Cikaso Energi (BCE)

Asuka Green Investment Co .,Ltd.

Host Party(ies) IndonesiaSectoral scope(s) and selected methodology(ies) Sectoral Scope 1 : Energy industries

(renewable/non-renewable sources)

Methodology : AMS.I.D-Grid connectedrenewable electricity generation (Version 17)

Estimated amount of annual average GHGemission reductions

19,133 (t-CO 2 e)


2/37

SECTION A. Description of project activityA.1. Purpose and general description of project activity>>Cikaso small- scale hydroelectric power project (hereinafter referred to as “Cikaso SSHPP”) in Sukabumi,West Java Province, Indonesia is a CDM project activity for electricity generation, exporting electricityto the grid of PT PLN (Persero) (her einafter referred to as “PLN”). Cikaso SSHPP, which is also referred

to as the “project activity”, is a run -of-river hydro power project on the Cikaso River. The project activityis to be developed and operated by PT Bumiloka Cikaso Energi (hereinafter ref erred as to “BCE”).

The design capacity of Cikaso SSHPP is 5.3 MW generating average annual net electricity ofapproximately 26,390 MWh which is to be delivered to Jawa-Madura-Bali grid (hereafter referred to as“JAMALI grid”) owned by PLN.

The electricity generated by the project activity will displace part of electricity in the JAMALI gridwhich would have otherwise been dominated by electricity generation from fossil fuel-fired power plants.Therefore, the presence of Cikaso SSHPP would reduce greenhouse gases (hereafter referred as to“GHG”) at an equivalent amount with that would have otherwise been emitted from the JAMALI gridgeneration mix. The project activity is a renewable energy project and is a zero-emitted energy project.The annual GHG emission reduction from the project activity will be 19,133 tCO 2e.

The pur pose of the project activi ty:The purpose of the project activity is an electricity generation from a renewable hydro energy source forexporting to the JAMALI grid to meet the demand for energy in the Java, Madura and Bali islands. Thedevelopment of the project activity will reduce GHG emissions produced in the JAMALI grid generationmix, thereby supports sustainable development related to energy generation.

Vi ew of project parti cipants on the contr ibuti on of the project activi ty to sustain able development 1 :In addition to the generation of electric power, the implementation of the project activity also contributesto the following:

Environment:Cikaso SSHPP will utilize unused hydro potential for power generation. In the absence of the projectactivity, the grid will otherwise be dominated by coal and diesel fuel-based power generations.Implementation of the project activity will practice natural resources conservation for energydiversification and thus environmental sustainability. Moreover, the project activity is a zero emissionelectricity generation. It will eliminate the GHG emissions produced from fossil-based powergeneration in the JAMALI grid. As a result, the development of the project activity will cause nonegative impact on the environment locally as well as globally.

Social:Cikaso SSHPP will bring employment and job creation in the project area, since prior to construction-and construction periods as well as during operation period. The project activity will directly involve inthe employment for either skilled or unskilled laborers during the construction and operation of the

project. Therefore, the project activity will also practice social sustainability through community participation in the project.

Economy:Since the beginning of the development, Cikaso SSHPP will open employment in the project areawhich after will improve and benefit local community economy. The project activity will bring a moresecure electricity supply for community in the project area improving the quality of electricity that will

1 Sustainable Development Criteria set by the Indonesian DNA [http://dna-cdm menlh.go.id/en/susdev/ (accessed 19September 2010)


3/37

support local economic development. Road upgrading quality, particularly road access to the SSHPPwill help local community to have a better access for the smoothness of transportation and distribution.This will in turn improve local economic development and help maintain local economic sustainability.

Technology:The project activity will contribute to technology and capacity development, since part of theequipment and technical maintenance will be provided by the host country. Such a project can furtherstimulate initiatives for innovation in the energy sector of the host country and utilization of localtechnology, supporting the technological sustainability. The turbine and generator manufacturers will

provide training facilities and know-how in operation of turbine and generator to the operators ofCikaso SSHPP.

A.2. Location of project activityA.2.1. Host Party(ies)>>The Republic of Indonesia a.

A.2.2. Region/State/Province etc.>> West Java Province

A.2.3. City/Town/Community etc.>>

Curug Luhur Village, Sagaranten Sub-district, Sukabumi Regency

A.2.4. Physical/ Geographical location>>The project activity is located in Curug Luhur Village, Sagaranten Sub-district, Sukabumi Regency,West- Java Province at the coordinate of 7.1359 (07º13'59”) south latitude and 106.4905(106º49'05”) eastlongitude. The site location is given in Figure 1.

Figure 1 : Map illustrating the location of the project activity


4/37

A.3. Technologies and/or measures>>. A run-of-river small-scale hydroelectric power generation technology is applied to the project activity,which converts mechanical energy available in the water flow into electrical energy using hydro turbinesand alternators. This technology has been used worldwide for years for small-scale hydroelectric powergeneration. A hydro power is a clean energy source. No significant negative impact would be made onthe environment and thus environementally safe.

Overseas technology introduced in the project activity is the equipments that are purchased from aboard,namely turbines and generators. Except turbines and generators, all other equipments are provided locally.The operational lifetime of the main equipment (Turbine) is 30 years.

The project activity will consume about 2% of the power generated. Therefore, based on the power loadfactor of 58% and an average annual operation of 5081 h, the annual net electricity generation of CikasoSSHPP is 26,390 MWh.

Table 1 : The designated technical data of Cikaso SSHPP 2

Project description:Cikaso SSHPP utilizes water from Cikaso River to generate electricity which is to be exported to theJAMALI grid. The main constructions of Cikaso SSHPP comprise a diversion system, intake, waterway,head tank, penstock, power house, and tailrace.The development of Cikaso SSHPP will help improving tip voltage, improving the performance oftransmission line in that area, particularly in the peak load time as well as capacity addition of electricityin the grid.

2 Laporan Studi Kelayakan PLTM Cikaso (Feasibility Study Report of Cikaso Mini Hydro Power Plant or CikasoSSHPP)

Item Unit Cikaso SSHPP

Total installed capacity MW 5.3

Installed capacity of each unit MW 2.25 (2 Units) and 0.8 (1 Unit)Average annual export to grid(Average annual net electricitygenerated)

MWh 26,390

Plant load factor % 58

Effective head m 40

Flow rate m3

/s 16.5 Number of units - 3

Type of turbines - Horizontal Francis


5/37

A.4. Parties and project participants

Table 2 : Project participants of the CDM project activity

Name of party involved((host) indicates a host

Party)

Private and/or public entity (ies)project participants (as applicable)

Kindly indicate ifthe party involved

wishes to beconsidered as projectparticipants (Yes/No)

Indonesia (Host) PT. Bumiloka Cikaso Energi (BCE) NoJapan Asuka Green Investment Co.,Ltd. No

The contact information for project participants in the project activity is provided in Appendix 1 in thisPDD.

A.5. Public funding of project activity>>The project activity does not receive any public funding for its financing. As such it will not result in adiversion of official development assistance.

A.6. Debundling for project activity>>As per debundling regulation specified in Appendix C of the simplified modalities and procedures forsmall-scale CDM activities, the project participant confirms that the project activity is not debundledcomponent of any larger scale project. It is further confirmed that the project participant has notregistered any small-scale CDM project activity or applied to register small-scale CDM project activityunder the following

- in the same project category and technology/measure; and- registered within the previous 2 years; and- whose boundary is within 1 km of the project boundary of the proposed small scale activity at the

closest point

SECTION B. Application of selected approved baseline and monitoring methodologyB.1. Reference of methodology>> Type: TYPE I - RENEWABLE ENERGY PROJECTSThe project activity uses the following approved baseline and monitoring methodology and available atthe UNFCCC website:

Title Reference Version Grid Connected Renewable Electricity Generation: AMS-I.D., EB 61,

Annex 17, 3 June 2011Version 17

Tool to calculate the Emission factor for an electricitySystem

EB 63, Annex 19, 29September 2011

Version 2.2.1

B.2. Project activity eligibility>>Cikaso SSHPP is a small-scale CDM project activity involving electricity generation from a renewableenergy source with a total installed capacity of 5.3 MW. The project activity will provide an average net


6/37

annual estimation of electricity generation of about 26,390 MWh to be exported to the JAMALI grid.The total installed capacity project activity is below the eligibility limit of 15 MW for a small scale CDM

project, and it is not a debundled component of a larger project activity. Therefore, the project activity isqualified as a small-scale CDM project activity to which Simplified Modalities and Procedures indicated

by UNFCCC can be applied 3,4. The project activity involves a newly build grid-connected hydropower project at the project site where there was no renewable energy power plant operating prior to theimplementation of the project activity (Greenfield plant). In addition, the project activity is a run-of-riverhydro power project with no reservoir upstream. According to Appendix B to the simplified baseline andmonitoring methodologies (hereinafter referred to as “Appendix B”) for selected small-scale CDM

project activity categories, the project activity falls under Type I, Renewable Energy Projects andCategory I.D. Grid connected renewable electricity generation. 5

B.3. Project boundary>>Project boundary specified in AMS-I.D encompasses the physical, geographical site of the renewablegeneration source.

The proposed project activity that is located in Curug Luhur Village, Sagaranten Sub-district, SukabumiRegency, West Java Province will export generated electricity to the JAMALI grid system which is a

regional gird. The project boundary includes the grid system and power plants connected physically tothe JAMALI grid system, the project site with all facilities such as the diversion system, penstock,

powerhouse, and tailrace.

Figure 2: Project boundary of the project activity

3 http://cdm.unfccc.int/Reference/COPMOP/08a01.pdf (Simplified modalities and procedures for small-scale cleandevelopment mechanism project activities (decision 4/CMP.1, Annex II)

4 http://unfccc.int/resource/docs/cop7/13a02.pdf#page=20 (Pragraph 6 (c) of decision 17/CP.7: Eligibility criteria forsmall-scale CDM project activities)

5 http://cdm.unfccc.int/Reference/COPMOP/08a01.pdf#page=43 (ANNEX II Simplified modalities and proceduresfor small-scale clean development mechanism project activities, Appendix B)

Electricity to JAMALI grid

Electricity to end-userPro ect BoundarElectricit Stream

CikasoSSHPP

AuxiliaryConsum tion

http://cdm.unfccc.int/Reference/COPMOP/08a01.pdfhttp://cdm.unfccc.int/Reference/COPMOP/08a01.pdfhttp://cdm.unfccc.int/Reference/COPMOP/08a01.pdfhttp://unfccc.int/resource/docs/cop7/13a02.pdf#page=20http://unfccc.int/resource/docs/cop7/13a02.pdf#page=20http://unfccc.int/resource/docs/cop7/13a02.pdf#page=20http://cdm.unfccc.int/Reference/COPMOP/08a01.pdf#page=43http://cdm.unfccc.int/Reference/COPMOP/08a01.pdf#page=43http://cdm.unfccc.int/Reference/COPMOP/08a01.pdf#page=43http://cdm.unfccc.int/Reference/COPMOP/08a01.pdf#page=43http://unfccc.int/resource/docs/cop7/13a02.pdf#page=20http://cdm.unfccc.int/Reference/COPMOP/08a01.pdf


7/37

Table 3: Emission sources and gases included in the project boundary for the purpose of calculating project emissions and baseline emissions

B.4. Establishment and description of baseline scenario>>

The project activity involves an installation of a new grid-connected renewable power plant/unit.Therefore, the baseline scenario is the electricity delivered to the JAMALI grid by the project activitythat otherwise would have been generated by the operation of grid-connected power plants and by theaddition of new generation sources.

According to AMS-ID (Version 17, EB 61, Annex 17, 3 June 2011, the baseline emissions are the product of electrical energy baseline EG BL, y expressed in MWh of electricity produced by the renewablegenerating unit multiplied by the grid emission factor factors EF CO2,grid,y according to the “Tool tocalculate the emission factor for an electricity system” (Version 02.2.1, EB 63, Annex 19, 29 September2011).

The Emission Factor can be calculated in a transparent and conservative manner as follows:(a) A combined margin (CM), consisting of the combination of operating margin (OM) and

build margin (BM) according to the procedures prescribed in the „Tool to calculate theEmi ssion Factor for an electricity system” ( Version 02.2.1, EB 63, Annex 19, 29 September2011)

OR(b) The weighted average emissions (in t CO 2/MWh) of the current generation mix. The data ofthe year in which project generation occurs must be used.

Option (a) is selected for the baseline emission calculation. Calculations shall be based on data from anofficial source (where available) and made publicly available, as given in section B.6.

ParametersThe “Tool to calculate the emission factor for an electricity system” Version 02.2.1, EB 63, Annex 19, 29September 2011 provides procedures to determine parameters considered in the baseline calculation as

presented in Table 6.

Source Gas Included Justification/Explanation

Baseline JAMALI Grid

electricity production

CO 2 Yes Main emission source

CH 4 No Excluded as per AMS-I.D.(Version 17)

N2O No Excluded as per AMS I.D.(Version 17)

ProjectActivity

Cikaso SSHPP CO 2 No No project emission as perAMS-I.D. (Version 17)CH 4 No

N2O No


8/37

Table 4: Parameters considered for the baseline calculation

Parameter SI Unit Description Source of data to be used

EFgrid,CM,y CO 2/MWh Combined marginCO 2 emission factorfor project

electricity system inyear y

Calculated from the Statistics Report of PTIP in 2005, 2006, 2007, 2008, 2009,Statistic Report of PT Pembangkit JawaBali (PJB) 2005-2009, Statistics Report ofPT PLN in 2005, 2006, Evaluation ofOperation System of Jawa-Bali by PT PLN(Persero) P3B (Penyaluran & PusatPengatur Beban Jawa Bali) in 2007, 2008,2009.

EFgrid,BM,y CO 2/MWh Build margin CO 2emission factor for

project electricitysystem in year y

Calculated from the Statistics Report of PTIP in 2005, 2006, 2007, 2008, 2009,Statistic Report of PT Pembangkit JawaBali (PJB) 2005-2009 Statistics Report ofPT PLN in 2005, 2006, Evaluation ofOperation System of Jawa-Bali by PT PLN(Persero) P3B (Penyaluran & Pusat

Pengatur Beban Jawa Bali) in 2007, 2008,2009.EFgrid,OM,y CO 2/MWh Operating margin

CO 2 emission factorfor projectelectricity system inyear y

Calculated from the Statistics Report of PTIP in 2005, 2006, 2007, 2008, 2009Statistic Report of PT Pembangkit JawaBali (PJB) 2005-2009, Statistics Report ofPT PLN in 2005, 2006, Evaluation ofOperation System of Jawa-Bali by PT PLN(Persero) P3B in 2007, 2008, 2009.

The baseline does not considered leakage since the project activity is a new hydro power project,according to the methodology AMS I.D, in which there is no equipment transferred from another activity.Therefore, leakage is not considered.

B.5. Demonstration of additionality>>CDM considerationConsideration of a CDM scheme into the project activity was initiated since the early stage of the project

planning and was presented in the feasibility study of the project activity. This was followed withsending a n otification to the DNA Indonesia and the UNFCCC secretariat according to “Guidelines onthe demonstration and assessment of prior consideration of the CDM”, Version 0 4, EB 62, Annex 13, 15July 2011. The main events related to the CDM consideration and the historical development of the

project activity is illustrated in Table 7.

Table 5: Historical timeline of the project activity

Date Activity Evidence

26 October 2009 The Board of BCE considered the projectactivity to be develop in a CDM scheme

MoM

23 November 2009 Board meeting with the CDMdeveloper/carbon buyer of CCI

MoM

December 2009 Feasibility Study conducted by PT EscoMurti Pradana was completed

28 January 2010 Environment Impact assessment/ Approval letter


9/37

UKL/UPL Document approved11 February 2010 A letter of offer from PT BCE to PT PLN

West Java area regarding an electricity priceA letter

25 June 2010 Prior consideration letter was sent by post toEB Secretary and uploaded on the UNFCCChome page on August 10, 2010

http://cdm.unfccc.int/Pro jects/PriorCDM/notifications/index_html?s=20

28 June 2010 Power Purchase Agreement (PPA) PPA document26 July 2010 Signing of Emissions Reduction Purchase

Agreement (ERPA)ERPA

26 August 2010 Engaged a DOE to validate the projectactivity

Contract document

3 September, 2010 Signing a purchase agreement for turbinegenerator sets between the project owner and aturbine generator sets manufacturer

Contract document

15 September 2010 Signing a contract regarding civil worksconstruction.

Contract document

24 November 2010 Stakeholder consultation meeting MoM2 March 2011 Submission of an application letter to

the Indonesian DNASubmission letter

11 March 2011 Starting date of validation process PDD CikasoSSHPP uploaded onthe unfccc website

25 August 2011 Issuance of a letter of approval by theDNA of Indonesia.

LoA (Letter ofApproval)

29 August 2011 Issuance of a letter of approval by theDNA of Japan.

LoA (Letter ofApproval)

Assessment and demonstration of additionality

According to Attachment A to Appendix B of the „Simplified Modalities and Procedures for Small -ScaleCDM Project Activities‟, that the project activity would not have occurred anyway due to at least one ofthe following barriers:

- Investment barrier- Technical barrier- Barrier due to prevailing practice- Other barrier

The main barrier of Cikaso SSHPP identify by the project proponent is the investment barrier, as shownin the investment barrier analysis below.

Investment Barrier AnalysisThis part of this section will determined whether the Project is economically attractive or not through anappropriate analysis method, a benchmark analysis.The analysis of Cikaso SSHPP was carried out basedon project Internal Rate of Return (hereinafter ref erred to as “project IRR”) as the financial indicator.The input values in the investment analysis use fixed data and values at the time of making investmentdecision.

Table 6: Main parameters considered in the investment analysis

Parameter Value Source of dataInstalled capacity 5.3 MW Feasibility Study


10/37

Expected quantity electricity exported to the grid 26,390 MWh Feasibility StudyProject lifetime 30 years Feasibility StudyTotal investment Rp. 122,209.45

millionFeasibility Study

Operational & maintenance Costs 7,780.19million Feasibility StudyForeign exchange rate 13 Euro/IDR Feasibility StudyElectricity selling price Rp 656,-/kWh Permen 31 6

Project Internal Rate of Return (Project IRR) :The project lifetime is estimated to be 30 years, so that the period of assessment of the project activity is30 years.

As it is shown in Table 8, the project activity involves a total investment cost of Rp 122,209.45 million.At an electricity selling price of Rp. 656,-/kWh as in the PPA 7, the project IRR value without CERincome, shown in Table 9, is 10.28%. The project IRR is lower than the benchmark of 12.22%, theinvestment rate of private foreign banks and joint banks 8 . The minimum average Rupiah lending rate forinvestment of all banks in Indonesia in 2009 is selected as a benchmark. The selection of benchmarksconducted after the FSR was completed in December 2009. The benchmark is a real term rate.

A lower project IRR of Cikaso SSHPP than the benchmark shows that the project activity is unattractiveinvestment opportunity in the absence of additional revenue to that received through electricity sales.When CER (Carbon Emission Reduction) revenue is taken into account, the project IRR overpasses the

benchmark, confirming a feasible project.

It is concluded from Table 9 that the project IRR of Cikaso SSHPP is 10.28%, lower than the benchmarkof 12.22 %, so that the project activity is not financially attractive, thus the project activity facesinvestment barrier.

After taking into account the CER income, the project IRR improves to 13.52% which is higher than the benchmark value. With the inclusion of revenue from CERs sale, the project activity becomes financially

feasible and improves the economical attraction of the project.

Table 7: Project IRR of Cikaso SSHPP without and with the CER income ItemProject IRRwithout CER income (%)

Project IRRwith CER income (%)

Project IRR10.28% 13.52%

Sensitivity AnalysisAccording to the “Guidance on the Assessment of Investment Analysis”, Version 0 5, Annex 5 of EB 62,15 July 2011, only variables, including the initial investment cost, that constitute more than 20% of eithertotal project costs of either total project costs or total project revenues should be subjected to reasonsensitivity analysis.

The sensitivity analysis was performed by altering the following parameters: Investment cost Revenue (electricity sales)

6Perjanjian Pembelian Tenaga Listrik antara PT PLN (Persero) dan PT Bumiloka Cikaso Energi Dari Pembangkit ListrikTenaga Energi Terbarukan Tenaga Minihidro Cikaso Kapasitas Daya Total 5.300 kW

7 Perjanjian Pembelian Tenaga Listrik antara PT PLN (Persero) dan PT Bumiloka Cikaso Energi Dari Pembangkit ListrikTenaga Energi Terbarukan Tenaga Minihidro Cikaso Kapasitas Daya Total 5.300 kW (Power Purchase Agreement between PTPLN (persero) and PT Bumiloka Cikaso Energi)

8 Bank of Indonesia, 2009 Economic Report on Indonesia, Table 22, pp.221. Appendices,http://www.bi.go.id/web/en/Publikasi/Laporan+Tahunan/Laporan+Perekonomian+Indonesia/lpi_09.htm


11/37

Plant Load Factor Operation & Maintenance cost (O & M)

The project IRR will achieve the benchmark value when the investment cost is decreased by 13.34%,nevertheless such a decrease is not possible to occur regarding the upward trend of inflation rate inIndonesia 9. Based on the real expenses during construction time, the reduction cost is unlikely achieved 10.

The revenue from electricity sales would reach the benchmark value if the selling price is increased by12.55 %. The selling price is unlikely to increase because the price has been fixed in the PPA enteredinto with PLN 11 .

The trend of Plant Load Factor (hereinafter referred as to PLF) is almost same with the trend of revenue.PLF would reach the benchmark if the value increased by 12.61%. This increase is unlikely achieved,

because flow rate of the river had been estimated from average of 4 years of hydrology data 12 . Recently,it is found that the condition of Cikaso catchment area is becoming worsened, therefore a yearly averageof the flow rate would tend to decrease 13.

In order to surpass the benchmark value, the general and administration cost need to be reduced to about

74.05%. A reduction of 74.05% in the general and administration cost is not plausible regarding theupward trend of inflation rate in Indonesia.

Each of above parameter is altered by 10% to assess the impact to the project IRR. The result of thesensitivity analysis is given in Table 10.

Table 8: Sensitivity analysis of project IRR of Cikaso SSHPP

Parameters -10% Base case +10%

Initial Investment 11.69% 10.28% 9.10%Revenue 8.68% 10.28% 11.83%PLF 8.71% 10.28% 11.81%Annual O & M cost 10.55% 10.28% 10.01%Benchmark value 12.22% 12.22% 12.22%

At a reduction of investment cost by 10% or an increasing the revenue by 10% the project IRR is stilllower than the benchmark value. An increase of revenue would only occur if the feed in tariff is higherthan that in the PPA between BCE and PLN. The increase of the electricity selling price is unlikely

because it has been determined and fixed as in the PPA. As explained above, the increase of PLF isunlikely, because the catchment area of the river is becoming worsened.

9 Table 28 World Inflation, page 226, Appendic_2009 Economic Report Indonesia10 Civil Contract Agreement11 Power Purchase Agreement (PPA) between PT BCE and PT PLN12 FSR Cikaso SSHPP page 34 & Annex A13 http://ekonomibappedasmi.files.wordpress.com/2012/01/deskripsi-88-program_final3.pdf , Regional Medium Term

of Development Plan, Sukabumi Regency 2010-2015, pp.185 (Rencana Pembangunan Jangka Menengah Daerah(RPJMD) Kabupaten Sukabumi 2010 – 2015, pp. 185)

http://ekonomibappedasmi.files.wordpress.com/2012/01/deskripsi-88-program_final3.pdfhttp://ekonomibappedasmi.files.wordpress.com/2012/01/deskripsi-88-program_final3.pdfhttp://ekonomibappedasmi.files.wordpress.com/2012/01/deskripsi-88-program_final3.pdfhttp://ekonomibappedasmi.files.wordpress.com/2012/01/deskripsi-88-program_final3.pdf


12/37

Figure 3: Sensitivity Analysis

The sensitivity analysis concludes that the implementation the project activity without the CERs incomeis unlikely owing to the lacking of financial attractive.

ConclusionIt is evident from the financial analysis that the project activity cannot be implemented without the CERincome. It is confirms that implementation of Cikaso SHPP will require the CER income to be a financialattractive project. The project activity is additional and meets the CDM requirements of additionality.

B.6. Emission reductionsB.6.1. Explanation of methodological choices>>In order to quantify emissions reductions achieved by the project activity, procedures to calculate projectemissions, baseline emissions, leakage and emissions reductions set put in methodology are applied asfollows.

1. Calculation of EF grid CM, y of JAMALI gridThe baseline emissions are calculated as the product of the kWh produced by renewable generation timesan emission coefficient (baseline emission factor) calculated as a combine margin (CM), consisting ofthe combination of operating margin (OM) and build margin (BM) according to the procedures

prescribed in the “Tool to calculate the emission factor for an electricity system” , Version 02.2.1, EB 63,Annex 19, 29 September 2011.

Baseline methodology proceduresThe baseline emission factor is determined through baseline methodology procedure according to the“Tool to calculate the emission factor for an electricity system” ( Version 02.2.1, EB 63, Annex 19, 29September 2011) in the following steps:

STEP 1: Identify the relevant electric power system.STEP 2: Choose whether to include off-grid power plants in the project electricity system (optional)STEP 3: Select a method to determine the operating margin (OM)STEP 4: Calculate the operating margin emission factor according to the selected method.STEP 5: Identify the cohort of power units to be included in the build margin (BM).


13/37

STEP 6: Calculate the build margin emission factor.

STEP 1. I denti fy the relevant electr icity systemThe project electricity system is determined from transmission lines indicated in the Single Line Diagramof the JAMALI (Ministerial Decree of the Minister of Energy and Mineral Resources Number: 55K/30/MEM/2003, regarding National Transmission Line) 14 . The JAMALI grid, to which electricitygenerated by the project activity is exported, has transmission lines that are connected to the powergenerations of the project activity located in West Java Province. The grid is not connected to other gridsystems so that there is no import and export of electricity from or to the grid.

STEP 2. Choose whether to include off -gri d power plants in the project electricity system (optional)There are two options prescribed in the tool for calculating the operating margin and build marginemission factor:

Option I : Only grid power plants are include in the calculationOption II : Both grid power plant and off grid power plant are included in the calculation

Cikaso SSHPP involves in the electricity generation for exporting to the JAMALI grid. This projectactivity selected Option I to calculate the operating margin and building margin emission factor.

STEP 3. Select a method to determine the operating margi n (OM )According to the tool, the calculation of the operating margin emission factor EF grid, OM,,y can be based onone of the four available methods:

(a) Simple OM,(b) Simple adjusted OM, or(c) Dispatch Data Analysis OM, or(d) Average OM

Simple OM is selected from the methods because low-cost/must run resources are less than 50% of totalgrid generation in: 1) average of the five most recent years, or 2) based on long-term averagehydroelectric production. The proportion of low-cost/must-run resources 15 in the JAMALI grid from2005 to 2009 is less than 50% of the total grid generation 16 (The low-cost/must-run resources in theJAMALI Grid were respectively 13.8% in 2005, 11.7% in 2006, 11.7% in 2007, 12.2% in 2008, and12.8% in 2009.

As the low-cost/must run resources of the grid constitute less than 50% of the total grid generation inaverage of the five most recent years, then the simple OM method is selected for calculating emissionfactor.

The data required to calculate the operating margin emission factor using method Dispatch data analysisOM or Simple adjusted OM are not publicly available. Therefore, the calculation of EF grid, OM,,y is basedon the Simple OM method.

According to the “Tool to calculate the emission factor for an electricity system” ( Version 02.2.1, EB 63,Annex 19, 29 September 2011, the emission factor can be calculated using either of the two followingdata vintages:

Ex ante option: If the ex ante option is chosen, the emission factor is determined once at thevalidation stage, thus no monitoring and recalculation of the emissions factor during the crediting

14Keputusan Menteri Energi dan Sumberdaya Mineral Nomor: 55 K/30/MEM/2003, tentang Jaringan Transmisi Nasional (JTN)15 Low-cost/must run resources are defined as only nuclear and renewable energy power generation. ( “Tool to calculate the emission factor for an

electricity system ”, page 4 of Version 02.2.1, EB 63, Annex 19, 29 September 2011 ).


14/37

period is required. For grid power plants, use a 3-year generation-weighted average, based on themost recent data available at the time of submission of the CDM-PDD to the DOE for validation.For off-grid power plants, use a single calendar year within the 5 most recent calendar years priorto the time of submission of the CDM-PDD for validation, or

Ex post option: If the ex post option is chosen, the emission factor is determined for the year inwhich the project activity displaces grid electricity, requiring the emissions factor to be updated

annually during monitoring. If the data required to calculate the emission factor for year y isusually only available later than six months after the end of year y, alternatively the emissionfactor of the previous year y-1 may be used. If the data is usually only available 18 months afterthe end of year y, the emission factor of the year preceding the previous year y-2 may be used.The same data vintage ( y, y-1 or y-2) should be used throughout all crediting periods.

“Ex ante option: A 3 -year generation - weighted average” is selected for the calculation of the emissionreductions of this project. Ex-ante calculation of the average OM, EF grid, OM,,y refers to the three-yeargeneration-weighted average (2007, 2008 and 2009) of the most recent statistics available at the time ofPDD submission.

STEP 4. Calculate the operating margin emission factor according to the selected methodThe simple OM emission factor ( EF grid,OM,,y or EF grid,OMsimple,,y ) is calculated as the generation-weightedaverage CO 2 emission per unit net electricity generation (tCO 2/MWh) of all generating power plantsserving the system not including low-cost/must-run power plants/units. It may be calculated:

• Option A: Based on the net electricity generation and a CO 2 emission factor of each power plant/unit,

or• Option B: Based on the total net electricity generation of all power plants serving the

system and the fuel types and total fuel consumption of the project electricity system.

The data on electricity generation and the fuel types for all power plants supplying electricity to theJAMALI grid is available. Option A is selected for the simple OM calculation.

Option A-Calculation based on average efficiency and electricity generation of each plant.Under this opinion, the simple OM emission factor is calculated based on the net electricity generation ofeach power unit and an emission factor for each power unit, as follows:

m

ym

m ym EL ym

yOMsimple, grid , EG

EF EG= EF

,

,,,

……………………………....………..(1)

Where:EF grid,OMsimple,y = Simple operating margin CO 2 emission factor in year y (tCO 2/MWh)

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

FE EL, m,y = CO 2 emission factor of power unit m in year y (tCO 2/ MWh)m = All power unit serving the grid in year y except low-cost/must-run

power unitsy = The relevant year as per the data vintage chosen in step 3.

The emission factor of each power unit m should be determined as follows:


15/37

Option A1 , if for a power unit m data on fuel consumption and electricity is available, the emissionfactor ( EF EL,m,y) should be determined as follows :

ym

i yi,CO2, yi, ymi,

ym EL EG

EF NCV FC = EF

,

,

,,

)(

……………………………....……..(2)

Where:FE EL,m,y = CO 2 emission factor of power unit m in year y (tCO 2/MWh)

FC i,m,y = Amount of fossil fuel type i consumed by power unit m in year y (mass orvolume unit)

NCV i,y = Net calorific value (energy content) of fossil fuel type i in year y (GJ /mass or volume unit)

EF CO2,i,y = CO 2 emission factor of fossil fuel type i in year y (tCO 2/GJ)EG m,y = Net quantity of electricity generated and delivered to the grid by power

unit m, in year y (MWh)i = All fossil fuel types combusted in power unit m, in year y y = The relevant year as per the data vintage chosen in step 3.

Option A2 , if for a power unit m only data on electricity generation and the fuel types used is available,the emission factor should be determined based on the CO 2 emission factor of the type fuel type used andthe efficiency of the power unit, as follows:

ym

yimCO ym EL

EF = EF

,

,,,2,,

6.3

……………………………....…………………………..(3)

Where:FE EL,m,y = CO 2 emission factor of power unit m in year y (tCO 2/MWh)

EF CO2,m,i,y = Average CO 2 emission factor of fossil fuel type i used in power unit m in year y

(tCO 2/GJ)m,y = Average net energy conversion efficiency of power unit m in year (ratio)

m = All power units serving the grid in year y except low-cost/must-run power unitsy = The relevant year as per the data vintage chosen in step 3.

Where several fuel types are used in the power unit, use the fuel type with the lowest CO 2 emission factorfor EF CO2,m,i,y

The data on net electricity generation are obtained from the statistics Report of PT IP year 2005, 2006,2007, 2008, 2009, Statistic Report of PT PLN Pembangkitan Jawa Bali (PJB) 2005-2009, Statisticsreport of PT PLN year 2005 and 2006 and Evaluation of Operation System of Jawa-Bali 2007, 2008 and

2009 (published annually). Some coal consumption from IPPs in 2007, 2008 and 2009 are obtained from“Disemination and Promotion Technology for Tackling Global Warming” by The Institute of EnergyEconomics Japan in 2011.The net caloric values of the heavy oils are obtained from the Bahan Bakar Minyak, LPG dan BBG untuk

Kendaraan, Rumah Tangga, Industri dan Perkapalan (published by Pertamina, May 2003). The netcaloric value of the gas is obtained from Table 1.4 of the 2006 IPCC Guidelines for National GreenhouseGas Inventories , Volume 2, Chap 1, Page 1.23-1.24. The emission factors adopted are obtained fromTable 1.3 and Table 1.4 of the 2006 IPCC Guidelines for National Greenhouse Gas Inventories , Volume2, Chap 1, Page 1.23-1.24.

The data taken from above reference is not all available for fuel consumption used of power unit.Therefore the emission factor is determined by two options, Option A1 and Option A2 .


16/37

STEP 5. Identify the group of power units to be included in the build marginIn term of vintage of data, project participants can chose between one of the following two options :

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

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

Option 1 is chosen in the build margin (BM) emission factor calculation in the project activity.

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

(a) Identify the set of five power units, excluding power units registered as CDM projectactivities, that started to supply electricity to the grid most recently (SET 5-units ) anddetermine their annual electricity generation (AEG SET-5-units , in MWh);

(b) Determine the annual electricity generation of the project electricity system, excluding power units registered as CDM project activities (AEG total , in MWh). Identify the set of power units, excluding power units registered as CDM project activities, that started tosupply electricity to the grid most recently and that comprise 20% of AEG total (if 20% fallson part of the generation of a unit, the generation of that unit is fully included in thecalculation) (SET ≥ 20%) and determine their annual electricity generation (AEG SET- ≥ 20% , inMWh);

(c) From SET 5-units and SET ≥ 20% select the set of power units that comprises the larger annualelectricity generation (SET sample );

Identify the date when the power units in SET sample started to supply electricity to the grid.If none of the power units in SET sample started to supply electricity to the grid more than 10years ago, then use SET sample to calculate the build margin. In this case ignore steps (d), (e)and (f).

Otherwise:

(d) Exclude from SET sample the power units which started to supply electricity to the grid morethan 10 years ago. Include in that set the power units registered as CDM project activities,starting with power units that started to supply electricity to the grid most recently, untilthe electricity generation of the new set comprises 20% of the annual electricity generationof the project electricity system (if 20% falls on part of the generation of a unit, thegeneration of that unit is fully included in the calculation) to the extent is possible.Determine for the resulting set (SET sample-CDM ) the annual electricity generation (AEG SET-sample-CDM , in MWh);


17/37

If the annual electricity generation of that set is comprises at least 20% of the annual

electricity generation of the project electricity system (i.e. AEG SET-sample-CDM ≥ 0.2 ×

AEG total), then use the sample group SET sample-CDM to calculate the build margin. Ignoresteps (e) and (f).

Otherwise:

(e) Include in the sample group SET sample-CDM the power units that started to supply electricityto the grid more than 10 years ago until the electricity generation of the new set comprises20% of the annual electricity generation of the project electricity system (if 20% falls on

part of the generation of a unit, the generation of that unit is fully included in thecalculation);

(f) The sample group of power units m used to calculate the build margin is the resulting set(SET sample- CDM≥10yrs ).

The total set of power units (AEG SET ≥20% ), excluding power units registered as CDM project activitiesthat started supply electricity to the grid most recently and comprises 20% of AEG total (total annualelectricity generation) determined by steps (a), (b) and (c) in steps 5 is selected for calculation of buildmargin emission factor in this project activity.

Geothermal Power plants of Wayang Windu II and Drajad III are registered as CDM project activities,these projects is excluded in the set of power unit (AEG SET ≥20% ).

The build margin emissions factor is the generation-weighted average emission factor (tCO 2/MWh) of all power units m during the most recent year y for which electricity generation data is available, calculatedas follows:

m ym

m ym EL ym

y BM grid

EG

EF EG= EF

,

,,,

,,……………………....……………………………..(4)

Where:FE grid, BM,,y = Build margin CO 2 emission factor in year y (tCO 2/MWh)

EG m,y =

Net quantity of electricity generated and delivered to the grid by power unit m inyear y (MWh)

EF EL,m,y = CO 2 emission factor of power unit m in year y (tCO 2/MWh)m = Power units included in the build marginy = Most recent historical year for which electricity generation data is available

STEP 6. Calculate the build margin emission factor (EF grid,BM,y )The calculation of the combined margin (CM) emission factor ( EF grid,CM,y ) is based on one of thefollowing methods:

(a) Weighted average CM; or(b) Simplified CM.

The weighted average CM method (option A) should be used as the preferred option. The simplified CMmethod (option b) can only be used if:


18/37

• The project activity is located in a Least Developed Country (LDC) or in a country with lessthan 10 registered CDM projects at the starting date of validation; and

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

Weighted average CM is selected for the calculation of the combined margin emission factor. Thecalculation is as follows,

EF grid,CM,y = EF grid,OM, y x wOM + EF grid,BM , y x w BM ……………………(5)

Where: EF grid, BM, y = Build margin CO 2 emission factor in year y (tCO 2/MWh) EF grid, OM, y = Operating margin CO 2 emission factor in year y (tCO 2/MWh)W OM = Weighting of operation margin emissions factor (%)W BM = Weighting of build margin emissions factor (%)

The following default values for w OM and w BM is 0.5, respectively.

1. Baseline EmissionThe baseline emission (BE y) is the MWh produced by the renewable generating unit multiplied by anemission coefficient (measure in tCO 2e/MWh) calculated in a transparent and conservative manner as inequation (6). The EF grid,CM,y of the JAMALI Grid is calculated as in equation (5).

y , grid,CO y BL, y EF EG= BE ,2 ………… ................................................. ……..(6)

Where: BE y = Baseline emissions in year y (t CO 2/yr) EG BL,y = Quantity of net electricity supplied to the grid as a result of the

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

EF CO2,grid,,y = CO 2 emission factor of the grid in year y (t CO 2/MWh)

The project activity is the installation of a new grid-connected renewable power plant/unit. Therefore, the baseline scenario is the electricity delivered to the grid by the project activity that otherwise would have been generated by the operation of grid-connected power plants and by the addition of new generationsources. The baseline emissions are the product of electrical energy baseline EG BL,y expresses in MWhof electricity produced by the renewable generating unit multiplied by the grid emission factor.

If the project activity is the installation of a new grid-connected renewable power plant/unit at a sitewhere no renewable power plant was operated prior to the implementation of the project activity, then:

EG BL,y = EG facility,y where:

EG BL,y = Quantity of net electricity supplied to the grid as a result ofthe implementation of the CDM project activity in year y(MWh)

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

3. Project Emissions ( PE y )


19/37

As specified in the “Threshold and criteria for the el igibility of hydroelectric power plants withreservoirs as CDM project activities”, (EB 23, Annex 5), the project emissions resulted from thereservoir of hydroelectric power plants with power densities greater than 10 W/m 2 may be neglected. 17

Power Density ( PD )

As per Methodology AMS I.D version 17, EB 61 Annex 17, 3 June 2011 , for hydro projects with noreservoir;

PE y = 0. …………………………………………………………….. …(6)

4. Leakage ( L E y )This is not applicable as the renewable energy technology used is not equipment transferred from anotheractivity. Therefore, as per the Simplified Procedures for Small-scale CDM Project Activities, no leakagecalculation is required.

(L E y =0)………………………………………………………………….(7)

5. Emission Reductions ( ER y )The ex-ante emissions reductions ( ER y) by the project activity in year y is the difference between the

baseline emissions ( BE y) in year y, project emissions ( PE y) and emissions due to leakage ( LE y) in year y.In this project activity, project emission is zero due to a zero emission renewable generation power

project and leakage is considered to be negligible. Therefore, emissions reductions, ER y is equal to thetotal baseline emission, BE y (equation (6).

y grid,CO y BL y y y y y EF EG= BE = L PE BE = ER ,2, ……………… .....…(8) where

ER y is the emission reductions in year y (tCO 2 e/yr). BE y is the baseline emissions in year y (tCO 2e/yr).

PE y is the project emissions in year y (tCO 2e/yr). LE y is the leakage emission in year y (tCO 2 e/yr).

PE y= 0 and LE y= 0,

B.6.2. Data and parameters fixed ex ante

Data / Parameter: NCV i,y (Net Calorific Value)Data unit: TJ/kt fuel (Terra Joule/kilo tonne fuel)Description: Net calorific value (energy content) per mass or volume unit of a fuel

Source of data used: “Bahan Bakar Minyak, Elpiji dan BBG untuk kendaraan, rumah tangga,industri dan perkapalan”, published by PERTAMINA 2003 Ministry of energy and Mineral Resources Directorate General of Mineral,Coal and Geothermal, 2007, published by Ministry of energy and MineralResources Directorate General of Mineral, Coal and Geothermal, 2007

Value applied: NCV for MFO is 41.02, HSD is 42.72, Coal is 24.0 and Gas is 46.5.Justification of the choice ofdata or description ofmeasurement methods and

procedures actually applied :

The NCV data of coal, HSD and MFO are available. Therefor e, IPCC‟sdata is not used.

17 http://cdm.unfccc.int/EB/023/eb23_repan5.pdf


20/37

Any comment: Data provided in Annex 3

Data / Parameter: DensityData unit: kt/kl (kilo tonne / kilo litre)Description: Liquid density of HSD and MFOSource of data used: “Bahan Bakar Minyak, Elpiji dan BBG untuk kendar aan, rumah tangga,

industri dan perkapalan”, published by PERTAMINA 2003

Value applied: Density value for MFO is 0.000990 (kt/kl) and HSD is 0.000845 (kt/kl),Justification of the choice of dataor description of measurementmethods and procedures actuallyapplied :

The density data of coal and gas is not used in calculation.


Data / Parameter: Carbon ContentData unit: t C/TJ (tonne Carbon/Terra Joule)Description: Carbon content in the fuel per unit of energySource of data used: 2006 IPCC Guidelines for National Greenhouse Gas Inventories: Chapter

1: Introduction, Table 1-3, p.21.Value applied: Residual Fuel Oil is 21.10, Natural Gas is 15.30, Sub-Bituminous Coal is

26.20, Gas/Diesel Oil is 20.20Justification of the choice of dataor description of measurementmethods and procedures actuallyapplied :

Use default data


Data / Parameter: EG m,y Data unit: MWh (Mega Watt hours)

Description: Net quantity of electricity generated and delivered to the grid by powerunit m in year y (MWh)

Source of data used: 1. Statistics PLN 2005 issued by PT PLN, in 20062. Statistics PLN 2006 issued by PT PLN, in 20073. Statistics report 2005 issued by PT Indonesia Power, in 20064. Statistics report 2006 issued by PT Indonesia Power, in 20075. Statistics report 2007 issued by PT Indonesia Power, in 20086. Statistics report 2008 issued by PT Indonesia Power, in 20097. Statistics report 2009 issued by PT Indonesia Power, in 20108. Company Statistics Report 2005-2009 issued by PT Pembangkitan Jawa-

Bali, in 20109. Evaluation of Operation System of Jawa-Bali 2007, PT PLN (Persero)

P3B in 200810. Evaluation of Operation System of Jawa-Bali 2008, PT PLN (Persero)

P3B (Penyaluran & Pusat Pengatur Beban Jawa Bali) in 2009.11. Evaluation of Operation System of Jawa-Bali 2009, PT PLN (Persero)

P3B (Penyaluran & Pusat Pengatur Beban Jawa Bali) in 2010.Value applied: Available in Annex 3Justification of the choice of dataor description of measurementmethods and procedures actuallyapplied :

All data of generated electricity for the most recent five years (2005-2009)in the JAMALI grid is used to calculate the ratio of Low Cost and MustRun Power Plants in the grid. Data for the most recent three year data(2007, 2008 and 2009) in the grid is used to calculate the OperatingMargin emission factor(s) (EF OM,y or EFOMsimple,y ). Data in 2009 in the grid


21/37

is employed to the Build Margin emission factor (EF BM,y ).Any comment: Data provided in Annex 3

Data / Parameter: FC i,,y Data unit: kl (kilo litre) , kt (kilo tonne), MMBTU (Million Metric British Thermal

Unit)Description: Amount of fuel combusted per type of technology

Source of data used: a) Statistics report 2005 issued by PT Indonesia Power, in 2006 b) Statistics report 2006 issued by PT Indonesia Power, in 2007c) Statistics report 2007 issued by PT Indonesia Power, in 2008d) Statistics report 2008 issued by PT Indonesia Power, in 2009e) Statistics report 2009 issued by PT Indonesia Power, in 2010f) Company Statistics Report 2005-2009 issued by PT Pembangkitan Jawa-

Bali, in 2007g) Dissemination and Promotion Technology for Tackling Global

Warming by The Institute of Energy Economics Japan, 2011Value applied: Available in Annex 3Justification of the choice of dataor description of measurement

methods and procedures actuallyapplied :

The most recent three years data (2007, 2008, and 2009) is used forcalculating CO 2 emission.


Data / Parameter: Average Electricity LossesData unit: %Description: The average electricity losses refers to parasitic power and electricity

lossesSource of data used: a) Statistics PLN 2005 issued by PT PLN, in 2006

b) Statistics PLN 2006 issued by PT PLN, in 2007

Value applied: Available in Annex 3Justification of the choice of dataor description of measurementmethods and procedures actuallyapplied :

Data for the average electricity losses is used to calculate net electricitygenerated (electricity exported to the grid).


Data / Parameter: EF CO2,i,yData unit: tCO 2/GJDescription: The CO 2 emission factor per unit of energy of the fuel type iSource of data used: The data obtained from 2006 IPCC Guidelines for National Greenhouse

Gas InventoriesValue applied: See B.6.3Justification of the choice of dataor description of measurementmethods and procedures actuallyapplied :

Use default data

Any comment: -

Data / Parameter: EF grid, CM, yData unit: tCO 2/MWhDescription: Combined margin CO 2 emissions factor in year y


22/37

Source of data used: http://pasarkarbon.dnpi.go.id/web/index.php/dnacdm/read/23/updates-on-emission-factors-of-electricity-interconnection-systems-2011.html

Value applied: 0.725Justification of the choice of dataor description of measurementmethods and procedures actuallyapplied :

Published by Indonesia DNA

Any comment: -

B.6.3. Ex-ante calculation of emission reductions>>Power Density ( PD )

As per Methodology AMS I.D version 17, EB 61 Annex 17, 3 June 2011 , for hydroprojects with noreservoir;

PE y=0 (tCO 2 /year)

Baseline Emissions ( BE y )

Operating margin emission factor (EF grid ,OMsimple, y )

y

i yi,CO2, yi, yi,

yOMsimple, grid, EG

EF NCV F = EF

.................................................(9)

= [93,291,971(tCO 2) 2007 +93,643,767(tCO 2)2008 +94,682,002(tCO 2) 2009 ]/[95,123,861(MWh) 2007 + 97,998,684(MWh) 2008 + 100.725,000(MWh) 2009 ]

= 0.958 (tCO 2/MWh)

Build margin emission factor

m ym

m ym BL ym

y BM grid EG

EF EG EF

,

,,,

,,

= 26,746,847(tCO 2) 2009 / 30,223,000(MWh) 2009= 0.848 (tCO 2/MWh)

Combine margin emission factor

EF grid,CM,y = EF grid,OM, y x wOM + EF grid,BM , y x w BM

EF y = w OM EF OM , y + w BM EF BM , y = 0.5 x 0.958 (tCO 2/MWh) + 0.5 x 0.848 (tCO 2/MWh)= 0.903 (tCO 2/MWh)


23/37

The ex-ante emission reductions values and calculations are as follows:

Parameter Formula Value Unit

EF grid, OM, y (=EF grid,OMsimple, y ) Provided in section B.6.1 0.958 t-CO 2/MWhEF grid, BM, y Provided in section B.6.1 0.848 t-CO 2/MWhEF grid, CM, y Provided in section B.6.1 0.903 t-CO 2/MWh

For the conservative consideration, the calculation result of EF grid,CM,y above (=0.903 t-CO 2/MWh) is notapplied. Ex-ante EF grid,CM,y of 0.725 (t-CO 2/MWh) published by Indonesia DNA

18 is employed in thecalculation for emission reduction in the project activity.

Baseline emission

BE y=EG y× EF grid,CM,y = 26,390 (MWh/year) x 0.725 (tCO 2/MWh)= 19,133 (tCO 2/year)

LeakageThe project activity is a new built small-scale hydro power unit, which no transfer of equipment isinvolved from another activity or equipment is transferred to another activity. Therefore, leakage is notconsidered in this case.

L y=0 (tCO 2 /year)

Emission Reduction

ER y=BE y= 19,133 (tCO 2/year)

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

Table 9: Estimated amount of emission reductions over the chosen crediting period

Year(time periode)

Estimationfor Project

ActivityEmissions

Estimationof BaselineEmissions

Estimationof Leakage

Annual estimation ofemission reductions in

tonnes of CO 2 e

June 2013 – December 2013 0 11,161 0 11,161

2014 0 19,133 0 19,133

2015 0 19,133 0 19,133

2016 0 19,133 0 19,133

2017 0 19,133 0 19,133

2018 0 19,133 0 19,133

2019 0 19,133 0 19,133

January May 2020 – May2020 0 7,972 0 7,972

18http://pasarkarbon.dnpi.go.id/web/assets/File/Surat-Faktor%20Emisi%20Jamali%202010.pdf


24/37

Total estimated reductions(tonnes CO 2 e)

0 133,929 0 133,929

B.7. Monitoring planB.7.1. Data and parameters to be monitored

Data / Parameter EG facility ,y Unit MWh/yt (Mega Watt hour per year)Description Quantity of net electricity supplied to the grid as a result of the

implementation of the CDM project activity in year ySource of data Project activity siteValue(s) applied Electricity meterMeasurement methodsand procedures

Continuous measurement and at least monthly recording

Monitoring frequency Cross check measurement results with records for sold electricityQA/QC procedures -

Purpose of data EG facility ,y Additional comment MWh/yt (Mega Watt hour per year)

B.7.2. Sampling plan>>Project activity does not involve any sampling for the determination of parameter values for calculatingGHG emissions.

B.7.3. Other elements of monitoring plan>>

This monitoring plan for the project activity for monitoring the parameters listed in section B.7.1 isdetailed in the following. For the purpose of monitoring, the project proponent (BCE) will prepare amonitoring manual which will cover monitoring procedure according to the monitoring principles asgiven in the monitoring plan.

1. A monitoring organization structureA monitoring organization structure responsible for monitoring and reporting management, registrationand measurement is under Department of Operation of BCE.

An appointed manager under the department is overall responsible for supervising and managing thewhole works related to data monitoring and CDM related issue. He will be responsible for the overalldata monitoring, verification process, calculating emission reductions and preparing a monitoring reportto the companies‟ director as well as to a DOE. The procedure regarding handling of emergencies situation, calibrating and maintaining monitoringequipment, reporting and handling of monitoring data, and procedures for corrective action in order formore accurate future monitoring and the reporting will be ready before commissioning of the projectactivity.

2. Training ProgramIn order to ensure an accurate and appropriate monitoring of emissions reductions as well as any leakageeffects generated by the project activity, BCE‟s personnel related to the project activity will be trained

before the operation of the project activity. This training is necessary to facilitate them to undertakeessential tasks in a reliable approach.


25/37

3. Monitoring equipmentThe electronic kWh meters owned by BCE and PLN will be fixed in the panel box. The meter owned byPLN will be used as the main meter to record and monitor the electricity exported to the grid. This meteris positioned before the connection point with the PLN‟s line. The reading from the main meter will beused as the basis by BCE to generate monthly invoice. The installed capacity of the power generation isconfirmed based on recognized standard.

4. Data monitoring, collection and reportingAppointed personnel from the joint commission between BCE and PLN will be responsible for the meterreading from the main meter and data recording on a monthly basis. The operational staff underDepartment of Operational of BCE will observe and record the operation status of metering equipmentsdaily on site. A monitoring report will be prepared in a hard copy which includes the data on monthlyelectricity delivered to the grid (main meter reading) and the log book. The data, on a monthly basis, will

be forwarded to the manager of the Department of Operational of BCE.A copy of the invoice to PLN will be used by BCE as the basis for determining the emissions reductionsfor that month. BCE will keep the copy of the invoice for a minimum of two years after the completion ofthe project‟s crediting period.

5. Procedure for calibrationThe kWh meter installed will be of a digital type. The kWh meter to be used will be calibrated. Based onthe Ministerial Decree of Trade and Industry of the Republic Indonesia, no 61/MPP/Kep/2/1998regarding Metrology Implementation, it is stated in Annex VIII of the Decree that 3 phase of the kWhmeter should be recalibrated once every 10 years by Central or Local Metrology Unit. .

6. Procedure for QA/QCThe QA/QC for recording, maintaining and archiving data will be performed by BCE. For the purpose ofQA/QC, monthly data electricity production displayed in the kWh meter is to be cross checked with thesales receipts. A review of monitoring report prepared by person in charged for this task underDepartment of Operational of BCE.

7. Procedure for corrective actionIf required, technical meetings between the operational staffs and managers under the Department ofOperational of BCE and also the project proponent will be held in order to design and execute thecorrective proceedings to be undertaken.

8. Internal auditThe QA/QC Unit under the Department of Operational of BCE will perform regular site audits to ensurethat monitoring and operational procedures are being executed according to the Monitoring Plan.

9. Data archive

All data recorded will be stored electronically and in paper and will be kept for two years after the end ofthe last crediting period or the last issuance of CERs for the project activity, whichever occurs later. Dataarchiving and storing will be the responsibility of the Monitoring Unit under the Department ofOperational of BCE.

SECTION C. Duration and crediting periodC.1. Duration of project activityC.1.1. Start date of project activity>>03/09/2010


26/37

C.1.2. Expected operational lifetime of project activity>>30y-0m

C.2. Crediting period of project activityC.2.1. Type of crediting period>> Renewable crediting period

C.2.2. Start date of crediting period>> 01/06/2013 or the date of registration whichever the later

C.2.3. Length of crediting period>>7y-0m

SECTION D. Environmental impactsD.1. Analysis of environmental impacts>>As per the Decree of the Minister of the Environment (MENLH No.17, 2001) of the Republic ofIndonesia, an “Environmental Impact Assessment (hereinafter referred to as “AMDAL”) is not requiredfor a small hydroelectric power project whose capacity is less than 50 MW. Since the capacity of CikasoSSHPP is 5.3 MW, preparation of an AMDAL document is not required. Instead, a submission of “TheEnvironmental Management Procedure and the Environmental Monitoring Procedure” (hereinafterreferred to as UKL/UPL) is required by the ministerial decree.

The document UKL/UPKL 19 of Cikaso SSHPPs has already been submitted by BCE, and an approval ofthis document has already been granted. 20

The scale of the proposed project activity is small and the technology used by the project activity is an

environmentally safe technology. Between the intake and tailrace of the SSHPPs there is no waterutilization so that the environmental impacts related to the project activity are negligible. After beingused for power generation, the water is returned to the Cikaso River. In brief, the project activity will notresult in a significant impact to the environment.

SECTION E. Local stakeholder consultationE.1. Solicitation of comments from local stakeholders>>The stakeholders of this CDM project activity development include the government and non-government

parties of the Republic of Indonesia, such as local populations, local government, who are either

indirectly or directly involved in different roles at different stages in the project activity. All thenecessary permits from the government parties have been obtained.

BCE had or ganized a stakeholder‟s consultation with the villagers surrounding Cikaso SSHPP to informrelated stakeholders regarding the environmental and social impacts of the project activity and to discusstheir concerns (anxiety) regarding the development of the project activity. The invitation for thestakeholder‟s consultation was sent out on 12 November 2010 to the villagers, local communities andlocal state governments in the SSHPP‟s regions requesting them to participate and voice anysuggestions/objections regarding the project activity. The stakesholder‟s meeting was held on 2 4

19 Document UKL-UPL20 A recommendation of the document of UKL-UPL No:660.1/30 - AMDAL/2010


27/37

November 2010 at Curug Luhur Village, Sagaranten Sub-District, Sukabumi Regency, West JavaProvince.

The representatives of the stakeholder comments who attended in the meeting were the Head ofSagaranten Sub-District, Head of Curug Luhur village, some community representatives living surroundthe site and some members of Regional Consultative Council.

The comments received during the consultation meeting are written in the Indonesian language and thetranslated comments are showed below.

Notes on the discussion on the socialisation of the development ofCikaso SSHPP – a Small – Scale Hydro Power Plant in Curug Luhur,Sukabumi Regency, West Java Province

Day/Date : 24 November 2010Place : Curug Luhur VillageTime : 10.30 – 12:00Moderator : Mr. Firdianov

NO Questioner Question Answer1 H. Sujar / Head of

BPD What efforts have been done

by PT. CCI for theconservation in theupstream?

How would PT CCIanticipate the impacts ofPLT U‟s (Steam PowerPlant) such as at the

Saguling in the presentation?

Mr. IrhanThis company is only engaged in thecertification of the project, andregarding the effort in the conservationof the upstream side is only oursuggestion for the project forsupporting the development of thisMini Hydro Power Plant. Anticipation

of impacts resulted from PLTU‟s(Pembangkit Listrik TenagaUap/Steam Power Plant) is not part ofour work in this case.

2. Head of VillageCurug Luhur/Mr.Jafar Rusdiana

With regard to the naturalconservation, the community isvery enthusiasm to grow various

plants in the upstream.a. What kind of plants would it

be suitable to conservenature?

b. How and where could we propose an application forobtaining seedling?

Mr. Irhana. Suitable plants are woody plants

because it could prevent soilexposed from erosion.

b. For those who intend to plant trees,we would give assistance forapplying a proposal, such as toPT.Sampoerna which could

provide free seedling.

3. DanramilSagaranten/Mr.Erson

Human activity would certainlyaffect environment. With the

presence of a dam in the project,such as in Hydro Power Plant ofSaguling, what efforts would bedone by the company toanticipate a mass of water

producing hot steam?

Mr. IrhanThis PLTMH (Small Scale HydroPower Plant) would not practice a dam

but it would divert water from theriver through a weir into Power houseand discharge it back to the river.Therefore, there would be noextensive water reservoir such as inthe Saguling Hydro Power Plant.


28/37

Mr. AdeThis PLTMH has complied with alllicenses through a long procedural

process and this has predicted possiblefuture impacts.

4. Mr Zarkasih/RT Our request is theconstruction of a mosque forthe community

We would like to remind thecompany that payment ofwages to the labours could

be on time.

Mr. AdeThe construction of a mosque has beendiscussed to the developer of this

project. However, concerning thewages, this would absolutely be paidthough some delayed could occur.

5. H. Sujar/Head ofBPD

Is water evaporationincluded in the negativeimpact?

Mr. IrhanWater evaporation has occurrednaturally so that it would not give anyimpact to the global warming, but suchdam could affect to the globalwarming due to the production of

methane gas from organicdecomposition processes.

6. Head of VillageCurug Luhur

Is it possible to flow waterfrom the dam to irrigationchannels of rice field?

Mr. AdeOutlet of water (tailrace) from theturbine is located in the river stream(below the rice field), so that it wouldnot be possible to flow it to the ricefield above. We would considerflowing water to the rice field locatedin opposite site of the river, due to its

position below the weir.

7. Conclusion Response of District HeadThe local district supports to theefforts to natural conservation eitherthrough the construction of PLTMH orthrough local community desire to

perform reforestation in the upstream.Our message to the developer is thatthere should be a clear conceptconcerning the wages both for workingtime and amount of it.

Mr. AdeThe land acquisition performed hasmade a better administration toexisting land. The company expectsthat development of this PLTMHcould absorb labours and material

provided in this area. Besides, it may bring new investors because this area possesses huge energy reserves.


29/37

E.3.Report on consideration of comments received>>There were no negative comments received during the consultation and interviews, which were recordedand signed by the stakeholders.

SECTION F. Approval and authorization

>>Letter of Approval from each Party to be involved in the project activity will be made available at thetime of submitting the PDD to the validating DOE.

- - - - -


30/37

Appendix 1: Contact information of project participants

Organization PT Bumiloka Cikaso EnergiStreet/P.O. Box Perkantoran Buncit Mas, Blok B-9Building Jl. Mampang Prapatan Raya No: 108City Jakarta SelatanState/Region

Postcode 12760Country IndonesiaTelephone +62-21- 794 6370-72Fax +62-21- 794 6373E-mail [email protected] personTitle DirectorSalutation Mr.Last name MahaskoroMiddle name -First name BennyDepartmentMobile N/ADirect fax N/ADirect tel. N/APersonal e-mail N/A


31/37

Organization Asuka Green Investment Co., Ltd.Street/P.O. Box 2-11-7, Akasaka, Minato-kuBuilding ATT New Tower, 6 th FloorCity TokyoState/RegionPostcode 107-0052

Country JapanTelephone + 81-3-5575-1415Fax +81-3-5575-1434E-mail [email protected] personTitle Mr.SalutationLast name MOROHASHIMiddle name

First name KOICHIDepartmentMobile N/ADirect fax N/ADirect tel. N/APersonal e-mail N/A


32/37

Appendix 2: Affirmation regarding public fundingNOT APPLICABLE

Appendix 3: Applicability of selected methodologyApplicability of selected methodology is discussed in section B.2 of PDD. The project activity meets the

applicability criteria of the methodology.


33/37

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

Table 10 : Fuel Specifications

Note : HSD : High Diesel Speed, MFO : Marine Fuel Oil, IPCC : Intergovernmental Panel on Climate Change; PERTAMINA: Perusahaan Pertambangan Minyak dan Gas Bumi Negara/State-Owned Oil Company of Indonesia, kt fuel: kilo tonne fuel; tC:tonne carbon, TJ: Terra Joule, kl fuel : kilo litre fuel

Operating margin calculation

Table 11 : Power Plants in the grid by source (MWh nett)

operation year 2005 2006 2007 2008 2,009 fuel

Hydro 7,023 5,309 5,930 6,251 6,635 Diesel Oil 128 101 87 173 121

Gas Turbine Gas 2,603 2,038 2,126 3,073 4,688 Oil 2,547 2,087 1,958 2,191 3,275

Geothermal 6,185 6,183 6,672 7,337 8,188

Steam Coal 45,477 51,826 57,206 54,140 56,965 Gas 646 669 941 690 563

Oil 6,673 7,171 7,685 8,274 7,301

Combined Cycle Gas 16,559 16,193 17,929 18,953 20,301 Oil 8,980 8,444 7,192 10,505 7,527

TOTAL NET PRODUCTION 96,821 100,021 107,726 111,586 115,564

GWh

Source : Statistics report of PT PLN in 2005, and 2006; Statistics Report of PT IP in 2005, 2006, 2007, 2008, 2009; StatisticReport of PT PLN Pembangkitan Jawa Bali (PJB) 2005-2009; Evaluation of Operation System of Jawa-Bali PT PLN (Persero)P3B in 2007, 2008 and 2009.

Table 12 : Ratio of Low Cost and Must Run Power Plants in the most recent five years (2005 - 2009)

Source : Statistics Report of PT IP in 2005, 2006, 2007, 2008, 2009, Statistic Report of PT PLN Pembangkitan Jawa Bali(PJB) 2005-2009; Evaluation of Operation System of Jawa-Bali PT PLN (Persero) P3B in 2007, 2008, 2009.


34/37

Table 13: Percentage of Average Losses

Table 14: Fuel Consumption in the grid during 2005-2009

year 2005 2006 2007 2008 2009unit

HSD kilo litre 4,406,883 3,623,332 3,498,197 4,031,017 2,781,649 MFO kilo litre 1,944,142 2,054,365 2,225,317 2,374,577 2,150,386 IDO kilo litre 4,074 2,343 2,306 4,401 - Gas MMBTU 136,744,924 141,147,996 145,991,700 167,844,288 219,008,065 Coal ton 24,524,261 26,860,205 29,584,714 28,353,988 29,409,721

Table 15: CO 2 Emissions in the grid during 2005-2009

year 2005 2006 2007 2008 2009unit

HSD 11,785,015 9,689,620 9,354,980 10,779,863 7,438,768 MFO 6,108,049 6,454,344 6,991,436 7,460,377 6,756,020 IDO 9,578 11,142 6,408 6,307 12,037 Gas

8,093,881 8,354,497 8,641,195 9,934,641 12,963,006 Coal 56,615,701 62,008,365 68,298,053 65,456,849 67,524,209 TOTAL 82,612,223 86,517,968 93,292,072 93,638,037 94,694,039

t-CO2

Table 16: Three-year average (2007-2009) of Emission Factor Operating Margin Item Unit 2007 2008 2009 TOTAL

Total Emissions tCO2e 93,292,072 93,638,037 94,694,039 2 8 1 6 2 4 1 4 8

Total Generation MWH (net) 95,123,861 97,998,684 100,741,000 2 9 3 8 6 3 5 4 5EFOM tCO2e/MWh 0 9 5 8 4


35/37

Table 17: Sample plant group (M) for determining Build Margin Emission Factor

Sample group (m)Classification

“The five power plants t hat hav e been bu iltrecently” (MWh)

“The power plantscapacity additionto the electricity

sys tem thatcomprises 20% of system generation

( in MW h) andthat have been

built mostrecently”

Comments

Electricity quantity 14,478,000.0 23,748,000

Proportion(ratio to t otalgeneration in

JAMALI grid)

Selected grou p O

Total generation is115,564 (GWh) in

JAMA LI grid12.53% 20.55%

Table 18: Sample group plants used in the Build Margin calculation and CO 2 Emission Factor for BuildMargin

Actual Data calculation data Actual data

MW GJ/GWhGJ/k t fuel GJ/ k ltr fuel (t- CO2/GJ) (GJ/MMBTU)

Owner Power Plant A B C C=AxBx8760/1000 D F G= CxD/IG=1000x CxD/E H I G=(ExF)xH/1000 G=ExGxH

1 PT Java Power Paiton II #6 Steam-Coal Nov, 2000 1,220.0 4,541.7 24,030.8 2,152,193 ton 0.0961 4,968,464 2 PT Geo Dipa Energi Dieng Geothermal 2002 50.0 93.0 0 -- 03 PT Cikarang Listrindo PowerCikarang GT-Gas 2003 150.0 1,043.0 9,119.04 9,014,688.6 MMBTU 0.0561 1.0551 533,576.1 4 PT Krakatau Daya Listrik Krakatau Steam-Coal 2003 2.0 9,235.95 24,030.8 768.7 ton 0.0961 1,774.5 5 Muara Tawar GT-Gas 2004 840.0 3,555.0 9,119.04 30,726,000.0 MMBTU 0.0561 1.0551 1,818,660.5 6 GT-Oil 2004 840.0 351.0 9,119.04 40.6 78,820 kltr 0.0741 237.1 7 PT Sumberenergi Sakti PrimaCilacap #1 20068 Cilacap #2 20069 Tanjung Jati B unit #1 2006 660.0 10 unit #2 2006 660.0 11 Cilegon Cilegon CCGT-Gas 2006 740.0 3,916.0 6,003.37 22,282,040.0 MMBTU 0.0561 1.0551 1,318,865.7 12 Indorama Indorama Steam-Coal 2007 50.0 - 9,235.95 24,030.8 ton 0.0961 - 1 3 P LN Labuhan Steam-Coal 2009 300.0 436.0 9,235.95 24,030.8 167,571.4 ton 0.0961 386,848.5

TOTAL 25,659.7 21,770,522.2

Steam-Coal 562.0 3,496.0 9,235.95 4,384,578.9

EffectiveCO2

emission factor convert value

Block 3 & 4

Emission Reduction

t-CO2

Steam-Coal 3,620,231.2 ton9,235.95 24,030.8 8,226.0 8,357,516.7

24,030.8 0.0961

0.0961

ton1,899,271.0

No. u

n i toperation

year ue l t ype calculation data

GWh net

E

ThermalEfficiency ower lant

Fuel ConsumptionGenerated Power CapacityFactor

Capacity NCV

Table 19: Estimation of GHG emission reduction

Item Unit HEPPs

EFOM,simple,y (tCO 2 e/MWh) 0.9583

EFBM,y (tCO 2 e /MWh) 0.8484

EFy (tCO 2 e /MWh) 0.9034

EGy MWh/year 26,390

BE y (tCO 2 e /year) 23,840

PE y (tCO 2 e /year) 0

Ly (tCO 2 e /year) 0

ER y (tCO 2 e /year) 23,840


36/37

UNFCCC/CCNUCC

CDM – Executive Board Page 36

Appendix 5: Further background information on monitoring plan

The following data is to be monitored to ascertain project emission and emission reductions.

Table 20 : Data to be monitored in the project activity

IDnumber Data type Data variable Data

unit

Measured(m),

calculated (c)or estimated

(e)

Recordingfrequency

Proportionof data to

bemonitored

How will thedata be

archived?(electronic/

paper)

For how long isarchived data to

be kept?Comment

1 Electricity fromCikaso SSHPP

Electricity exportedto grid

kWh m Monthly 100% Electronic andPaper

Four years afterverification

Meter isregularly

calibrated byMetrology

Office


37/37

UNFCCC/CCNUCC

CDM – Executive Board Page 37

Appendix 6: Summary of post registration changes

Not Applicable

- - - - -

History of the document

Version Date Nature of revision04.1 11 April 2012 Editorial revision to change history box by adding EB meeting and annex

numbers in the Date column.04.0 EB 66

13 March 2012Revision required to ensure consistency with the “Guidelines for completingthe project design document form for small-scale CDM proj ect activities”

(EB 66, Annex 9).03 EB 28, Annex 3415 December 2006

The Board agreed to revise the CDM project design document forsmall-scale activities (CDM-SSC-PDD), taking into account CDM-PDDand CDM-NM.

02 EB 20, Annex 1408 July 2005

The Board agreed to revise the CDM SSC PDD to reflect guidanceand clarifications provided by the Board since version 01 of thisdocument.

As a consequence, the guidelines for completing CDM SSC PDD havebeen revised accordingly to version 2. The latest version can be foundat < http://cdm.unfccc.int/Reference/Documents >.

01 EB 07, Annex 0521 January 2003

Initial adoption.

Decision Class: RegulatoryDocument Type: Form

Business Function: Registration
http://cdm.unfccc.int/Reference/Documentshttp://cdm.unfccc.int/Reference/Documentshttp://cdm.unfccc.int/Reference/Documents