PDD Sinewave India

8/2/2019 PDD Sinewave India

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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03CDM Executive Board

1

CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)

Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders comments

Annexes

Annex 1: Contact information on participants in the proposed small scale project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information


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Revision history of this document

VersionNumber

Date Description and reason of revision

01 21 January

2003

Initial adoption

02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflectguidance and clarifications provided by the Board since

version 01 of this document.

As a consequence, the guidelines for completing CDM SSCPDD have been revised accordingly to version 2. The latest

version can be found at

.

03 22 December

2006

The Board agreed to revise the CDM project designdocument for small-scale activities (CDM-SSC-PDD), takinginto account CDM-PDD and CDM-NM.


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SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity:

>>

10MW biomass power plant at Sangli by Sinewave Power

Version 01

01/12/2009

A.2. Description of the small-scale project activity:

>>

The proposed CDM project activity is undertaken by Sinewave Biomass Power Pvt Ltd and involves the

establishment of a 10 MW biomass based power plant. The plant will utilise agricultural wastes, mainly

babul wood (40%), bagasse (40%) and other agro residues (20%) available in the area surrounding the

plant. The purpose of the project activity is to generate electricity by the combustion of the agricultural

wastes and export it to the Maharashtra State Electricity Distribution Company Limited (MSEDCL)through Maharashtra State Electricity Transmission Company Limited (MSETCL).

The proposed plant comprises the installation of a boiler of 50 TPH capacity and a single extraction cum

condensing turbo generator set of 10MW. The project proponent intends to install these and ancillary

equipments to generate electricity for the grid from a renewable energy source (babul wood, bagasse and

agro product residues).

The boiler would generate steam at 66 bar pressure and 490 5oC. The power generation would be at 11

kV and would be stepped up to 33 kV for synchronizing with the grid. The plant is located about 6 kms

from the nearest MAHADISCOM sub-station. The necessary transmission lines from the power plant to

the substation would be laid by the project activity.

The project activity will reduce emissions through the generation of electricity from renewable biomass,

which is carbon neutral, and replace and supplement existing grid based generation which is pre-

dominantly fossil fuel based.

Sustainable Development

The project activity will contribute to sustainable development through socio-economic and

environmental development in the region. The proposed project activity will generate new job

opportunities for the local community and the development of basic amenities leading to an improvement

in the living standards of the local community. People from the local area will be employed during the

construction and operation of the project activity which will indirectly leads to economic benefits in the

area.

Environmental Benefits

The generation of electricity for supply to the grid from a renewable source will have a direct

environmental benefit. The generation of power from biomass has long term benefits related to climate

change given that the alternative source of generation in India is typically a fossil fuel based generation


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system. Local pollution will also be reduced as these alternatives are predominantly coal based

combustion for the supply of electricity which gives rise to increased emissions of NOx, SOx and ash.

A.3. Project participants:>>

Name of Party involved

((host) indicates a host Party)

Private and/or public

entity(ies) project participants

(as applicable)

If Party wishes to be

considered as a project

participant

India (host) Private Entity: Sinewave

Biomass Power Pvt Ltd

No

United Kingdom Private Entity: Agrinergy Pte

Ltd

No

(*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD

public at the stage of validation, a Party involved may or may not have provided its approval. At

the time of requesting registration, the approval by the Party(ies) involved is required.

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.:

>>Maharashtra

A.4.1.3. City/Town/Community etc:

>>

Tung village, Miraj Taluka, Sangli District.

A.4.1.4. Details of physical location, including information allowing the

unique identification of this small-scale project activity :

>>

The project activity is located at Tung Village, Taluka Miraj of Sangli district in the state of

Maharashtra. The site is located at 1655'36"N latitude and 7428'48"E longitude. The following map

shows the exact location of the project activity.


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A.4.2. Type and category (ies) and technology/measure of the small-scale project activity:

>>

According to the Appendix B to the simplified modalities and procedures for small-scale CDM project

activities, the proposed project activity falls under the following type and category.

Type I Renewable Energy Projects

Category D - Grid connected renewable electricity generation1

1http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html.

Location site ofPlant, Tung

Village


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The capacity of the proposed CDM project is 10 MW, which is below the qualifying capacity of 15 MW

as outlined in section ID of Appendix B of the simplified modalities for small scale CDM project

activities. The biomass power plant will be connected to the grid and the electricity produced by the plant

will replace existing and planned generation from the grid. As the maximum electricity generatingcapacity is limited by its design and construction, there is no possibility of exceeding the limits of small-

scale CDM project activities during the crediting period and the project activity will remain as a small

scale project activity.

Technology

The project is designed to generate electricity for grid system using biomass fuel such as babul wood,

bagasse and agro product residue. The basic technology is the Rankine cycle route where direct

combustion of biomass materials takes place through the AFBC boiler to generate high pressure and high

temperature steam, which drives an impulse turbine generator set.

The main plant and machinery of the project consists of one 50 TPH AFBC boiler, one single extraction

cum condensing turbo generator set, power evacuation system and fuel handling system. The turbo

generator will generate electricity at 33/11 kV level. The substation is located at MAHADISCOM

substation which is about 6 km from the project site.

The technology to be employed is domestically available in India and the main equipments, i.e. boiler

and turbine, are supplied by well-known Indian manufacturers. All equipments are designed as per

industry guidelines and meet the national environmental and safety guidelines and comply with the

criteria laid down by the Maharashtra State Pollution Control Board.

No technology transfer is envisaged for the proposed CDM project activity.

The detail description of the plant as given in following table

Boiler

Type AFBC

Boiler capacity (100 % load) / Steam Flow rate 50TPH

Steam pressure at super heater outlet 66k kg/cm2

Steam temperature at super heater outlet 490oC

Water requirement 65 m3

/ hour

Turbo Generator

Type Single extraction cum condensing

Steam pressure at the TG inlet 66 kg/cm2

Steam temperature at the TG inlet 490oC

Generator Voltage 11 kV

Power evacuationGrid Voltage 33 kV

MAHADISCOM Sub station 33/11 kV

Energy production

Gross power 10 MW

Auxiliary consumption (10%) 1.0 MW

Net power for export 9.0 MW


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A.4.3 Estimated amount of emission reductions over the chosen crediting period:

>>

The chosen crediting period for the project activity is 7 years. It is estimated that the project activitywould generate 369,690 emission reductions during the crediting period of 7 years. Annual estimates of

emission reductions by the project activity during the above crediting period are furnished below.

Year Annual estimation of emission reductions in

tonnes of CO2e

June 2010-May 2011 48090

June 2011-May 2012 51095

June 2012- May 2013 54101

June 2013-May 2014 54101

June 2014-May 2015 54101

June 2015-May 2016 54101

June 2016-May 2017 54101Total estimated reductions (tonnes CO2e) 369690

Total number of crediting years 7

Annual average over the crediting period of

estimated reductions (tonnes of CO2e)

52812

A.4.4. Public funding of the small-scale project activity:

>>

The project has not received any public funding.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a

large scale project activity:>>

Appendix C, paragraph 2 of the Simplified Modalities and Procedures for Small-Scale CDM project

activities states:

A proposed small-scale project activity shall be deemed to be a debundled 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; and

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.

The proposed project activity satisfies the criteria mentioned above and thus is not a debundled

component of a large scale project activity.


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SECTION B. Application of a baseline and monitoring methodology

>>

B.1. Title and reference of the approved baseline and monitoring methodology applied to the

small-scale project activity:

>>

Type I Renewable Energy Projects

Category D - Grid connected renewable electricity generation2

Version 15, valid from 30th

October 2009

B.2 Justification of the choice of the project category:

>>

This category comprises renewable energy

generation units, such as photovoltaics, hydro,

tidal/wave, wind, geothermal and renewable

biomass, that supply electricity to and/or displace

electricity from an electricity distribution systemthat is or would have been supplied by at least one

fossil fuel fired generating unit.

The proposed project activity satisfies this

condition as it involves renewable energy

generation, i.e. using biomass, that supplies

electricity to the regional grid that would have

been generated by a mix of fossil fuel firedgenerating units supplying to the regional grid.

Hydro power plants with reservoirs that satisfy at

least one of the following conditions are

eligible to apply this methodology:

The project activity is implemented in an existing

reservoir, with no change in the volume of

reservoir;

The project activity is implemented in an existing

reservoir, where the volume of reservoir is

increased and the power density of the project

activity, as per definitions given in the Project

Emissions section, is greater than 4 W/m2;

The project activity results in new reservoirs and

the power density of the power plant, as per

definitions given in the Project Emissions section,

is greater than 4 W/m2.

The proposed project activity is biomass power

plant and not a hydro power plant.

If the unit added has both renewable and non-

renewable components (e.g. a wind/diesel unit), the

eligibility limit of 15MW for a small-scale CDM

project activity applies only to the renewable

component. If the unit added co-fires fossil fuel1,

the capacity of the entire unit shall not exceed the

limit of 15MW.

The proposed project activity does not involve any

non-renewable components.

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

The project activity is not a co-generation unit.

2http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html.


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In the case of project activities that involve the

addition of renewable energy generation units at

an existing renewable power generation facility,

the added capacity of the units added by the projectshould be lower than 15 MW and should be

physically distinct from the existing units.

The project activity is a new activity of 10 MW

capacity.

Project activities that seek to retrofit or modify an

existing facility for renewable energy generation

are included in this category. To qualify as a small-

scale project, the total output of the modified or

retrofitted unit shall not exceed the limit of 15

MW.

The proposed project activity does not involve the

retrofitting or modification of an existing facility

for renewable energy generation.

B.3. Description of the project boundary:>>

In line with the guidance in Appendix B of the simplified modalities and procedures for small-scale

CDM project activities the boundary encompasses the physical, geographical site of the renewable

generation source.

For

the

Biomass from

near by site

Biomass

residue

Biomass fired

boiler

(50TPH, 66

kg/cm2, 490

oC)

Turbo Generator

Electricit to GridEnd

User

Auxillary

Consumption

Project

boundary


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purpose of the project activity the relevant grid is defined by the power generating units serving the same

grid as the project activity. In line with the tool to calculate the grid emission factor ,which states that If

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

electricity systems, these delineations should be used, we have considered the regional grid that isdelineated by the Central Electricity Authority of India.

In the case of India there are regional grids which facilitate the transfer of electricity between states and

which are supplied by central sector power stations operating in the region. The Indian power system is

divided into two grids for the purposes of calculating the grid emission factor, namely the new integrated

Northern, Eastern, Western, and North-Eastern regional grids (NEW NE) and the Southern grid.

Maharashtra is a part of the western region as per the grid definitions outlined by the CEA and we have

therefore utilized the analysis of the NEWNE grid undertaken by the CEA in order to determine the

baseline emission factor for electricity generation.

B.4. Description of baseline and its development:

>>

The project activity comprises the installation of a 10MW turbine generator that generates electricity by

combusting biomass residues and the generated electricity is supplied to the grid. This generated

electricity would otherwise have been supplied by at least one fossil fuel fired generating unit connected

to the grid.

The project activity does not use landfill gas, waste gas or wastewater treatment nor does it exclusively

use fuel oil and/or diesel oil thus negating baseline scenarios in paragraph 7 and 8 of methodology AMS

ID.

The project activity does not involve addition of renewable energy generation units at an existing

renewable power generation facility nor does it seek to retrofit or modify an existing facility thus

negating baseline scenarios in paragraph 11 and 12 of the methodology.

The grid has been taken as the baseline as mentioned in paragraph 9 of the methodology for the project

activity and the baseline emissions therefore are calculated as the product of electrical energy baseline

EGBL, y expressed in kWh of electricity produced by the renewable generating unit multiplied by an

emission factor

The emission coefficient has been calculated as mentioned in paragraph 10 (a) in a transparent and

conservative manner as the 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 the

emission factor for an electricity system. This has been calculated by the Central Electricity Authority

(CEA) for the regional grids in India.

The following data sources have been used in the determination of the baseline:

Variable Parameter Data sources

Energy exported EGBL,y Plant setup

Grid emission factor EFCO2 CEA


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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below

those that would have occurred in the absence of the registered small-scale CDM project activity:

>>

In line with attachment A to appendix B of the simplified M&P for small scale CDM project activities,the demonstration of additionality focuses on the barriers facing the project. As a part of additionality, an

investment analysis has been performed to demonstrate that the project activity faces an investment

barrier. In showing that the project is additional we demonstrate that it is not a part of the baseline

scenario, which in the case of the project activity is the generation of electricity in fossil fuel based grid

power plants. The project activity has to overcome significant investment barriers for its successful

implementation.

The project participant proposes to use Benchmark Analysis. The indicator for comparison used as the

benchmark is chosen as the Weighted Average Cost of Capital (WACC). The expected cost of equity and

weighted average of cost of capital (WACC) for the power generating industry in India has been

calculated using the CAPM approach. The weighted average cost of capital has been calculated

considering the bank prime lending rate (PLR) at the time the investment decision was taken which is

18th

June 2009 as the cost of debt3.

The cost of equity has been determined using the Capital Asset Pricing Model Approach considering

Beta values of power generating companies in India that were listed at the time of the investment for this

project. As per the CAPM model, the expected return of equity for the project is estimated as follows:

Rf + *( Rm - Rf )

Where

Rf = Risk free rate of return

= Beta

Rm = Market returns

Rm - Rf = Market risk premium.

Risk free rate of return:

The risk free rate of return is a benchmark figure against which all the investments in an

economy should be measured. The risk free rate of return has been taken as the average ten year

yield for Government securities4

at the time of the project start date. The risk free rate of return

is 7.67%.

Market return and risk premium:

The market risk premium, as measured and applied in practice is the premium above the risk

free rate if return that investors expect to earn on a portfolio of equities. With a view of

eliminating the unsystematic risk associated with the projects totally, index containing 500

companies has been taken to represent the market return. A period starting since 1999 till the

start date has been considered in order to remove any short term volatility. Therefore the risk

premium has been calculated as the difference in compounded annual return between the BSE-

500 and the Government bond rates. The value calculated is 9.34%

3http://www.rbi.org.in/scripts/WSSView.aspx?Id=13654

4http://www.rbi.org.in/scripts/AnnualPublications.aspx?head=Macroeconomic+and+Monetary+Developments


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Beta:

Equity beta measures the risk that cannot be eliminated in a systematic, well balanced and

diversified portfolio. Equity beta is calculated as the covariance between its return and thereturn of a well diversified market portfolio, divided by a variance of the return of a well

diversified market portfolio.

Equity Beta = Covariance (r,rm)/Variance (rm)

Where,

r is the return from the equity investment in a single stock

rm is the return from the equity investment in the well diversified market portfolio

The measured equity beta for a particular company relates to the unique capital structure of that

company and a change in the capital structure will change the degree of financial risk borne by

the equity holders and hence the equity beta. In order to allow the comparison of equity betas

across companies with different capital structures, the estimated equity beta is adjusted into the

equivalent asset beta (which is the equity beta that would apply if the assets were financed

wholly with equity). This is done as follows,

Asset beta = Equity Beta/[1+(1-Tax) x (debt/equity)]

Therefore, the average value of the asset betas of the listed power generating companies in

India has been considered and this is calculated to be 1.01.

For calculation a debt equity ratio of 65:35 has been considered

Therefore:

Cost of equity = 7.67% + (1.01)* 9.34% which is 17.14%

WACC = 65%* 12.50% *(1-16.89%) + 35%* 17.14%

WACC = 14.80%

The IRR without CDM is calculated to be 8.34% and is below the benchmark calculated.

The revenues from the project activity are from the sale of electricity to the grid. The operating costs

include the fuel cost, the costs to be incurred through the operation and maintenance, employee salary

and welfare, administration and insurance. These costs and revenues have been detailed in the

spreadsheet provided to the DOE.

The financial analysis has been undertaken over a period of 20 years. The basic assumptions in

performing the financial analysis are outlined in the table below.

Parameter Value Basis of assumption

Installed capacity 10 MW Purchase orders

PLF 80% for year 1; 85% for year

2 ; 90% from year 3 onwards

DPR


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Total project cost INR 588.224 million DPR

Repair and maintenance cost INR 7.50 million DPR

Escalation 5% DPR

Admin costs INR 3.60 million DPREscalation 5% DPR

Salaries INR 8.40 million DPR

Escalation 5% DPR

Other manufacturing

expenses

INR 10 million DPR

Biomass residue cost Rs 1500/tonne MERC 2009 tariff order and

quotations from vendors

Escalation 2% DPR

Income tax rate 33.99% Standard values

MAT rate 11.33% Standard values

Tariff Rs 4.28 for the first year and

remaining years

MERC tariff order and DPR

CER price 11/ CER

Exchange rate INR 65

Based on the above assumptions the project IRR is calculated as 8.34% without the CDM revenues. All

the workings and assumptions are in line with recognized standards and will be made available to the

DOE during validation.

Sensitivity analysis

The sensitivity analysis has been done in accordance with EB 41, Annex 45 Guidance on the Assessment

of Investment Analysis paragraph 16 and 17. The following factors are expected to have a significant

impact on the financial internal rate of return of the project and hence sensitivity analysis has been

conducted for these:

1. Plant Load Factor2. Electricity Tariff3. Investment Costs4. Fuel Costs

The financial analysis has been carried out taking into account the value of PLF of 80% in the first year,

85% in the second year and 90% for the remaining years. Even when the PLF is increased by 10% the

IRR is 11.06% which remains below the benchmark considered.

(-10%) (-5%) PLF (+5%) (+10%)

ProjectIRR

without

CDM

5.30% 6.88% 8.34% 9.72% 11.06%

The electricity tariff has been fixed by the Maharashtra State Electricity Board for twenty years i.e.

through out the life of the project activity. This parameter is important as it determines the only revenues


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of the project activity aside from carbon revenues. The table below shows the impact of an increase in

the tariff and even when the tariff is raised by 10% it is still below the benchmark.

(-10%) (-5%) Tariff (+5%) (+10%)

Project

IRR

without

CDM

0.45% 4.96% 8.34% 11.24% 13.97%

In line with the guidance on sensitivity we adjust the investment costs by +10% to -10%, the results of

this are shown in the following table and the project IRR remains below the benchmark.

(-10%) (-5%) Base Case (+5%) (+10%)

Project

IRRwithout

CDM

10.07% 9.17% 8.34% 7.58% 6.87%

Biomass residues used as a fuel in this project activity are subject to sensitivity analysis as they

constitute more than 20% of the total costs. However, even with a 10% reduction in these costs the

project IRR does not cross the benchmark.

(-10%) (-5%) Base Case (+5%) (+10%)

Project

IRR

without

CDM

11.78% 10.12% 8.34% 6.39% 4.15%

Thus all the necessary parameters have been subjected to sensitivity analysis and it has been shown that

the project remains additional, thus it can be concluded that CDM revenues are essential for the

successful implementation of the project.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

>>

As per paragraph 9 of the methodology the baseline emissions are calculated as the product of electrical

energy baseline EGBL, y expressed in kWh of electricity produced by the renewable generating unit

multiplied by an emission factor, which is the combined margin emission factor of the grid.

Baseline Emissions

2, COyBLy EFEGBE =

Where:


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BEy = Baseline emissions in year y, tCO2e

EGBL,y = EGy = Energy Baseline in the year y which is the electricity exported to the grid in year y, MWh

EFC02 = C02 emissions factor, tCO2e/MWh which is the grid emission factor

This is calculated in accordance with paragraph 10(a) of AMS I.D which states that 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 the emission factor for an electricity system. The CEA

value of the grid EFCO2 that we have considered is the weighted average using 50:50 weights for the OM

and BM.

Using the fixed carbon dioxide emissions factor determined in section B4, this equation may be

simplified to the following:

84.0= yy EGBE

Project EmissionsThe emissions due to transport of the biomass to the project plant are calculated as:

2,COkmyyy EFAVDNPE =

Where:

PEy = CO2 emissions during the year y due to transport of the biomass residues to the project plant

(tCO2/yr)

Ny = Number of truck trips during year y

AVDy = Average round trip distance (from and to) between the biomass residue supply sites and the site

of the project plant during the year y (km)

2,COkmEF = Average CO2 emission factor for the trucks measured during the year y (tCO2/km)

This is calculated in accordance with ACM0006, option 1, in which project emissions are calculated

based on the number of trips and average return distance

Leakage

In line with the guidance provided in the methodology, leakage is only considered for the transfer of

equipment, as there is no transfer this may be neglected.

With reference to the general guidance on leakage in biomass project activities, we have to consider the

possibility of leakage in the case of the project activity as it utilizes biomass residues from external

sources. Leakage may occur because of the diversion of biomass from other activities outside the

boundary thus increasing the fossil fuel combustion outside the boundary. Considering that the biomassrequirement for the project is small and that there is sufficient biomass available in the region

surrounding the site of the project activity, no such leakage is anticipated. However a survey has been

undertaken ex-ante to ensure that there is surplus biomass in the region and hence the usage of biomass

in the project activity does not lead to leakage elsewhere. The biomass surplus assessment survey shall

be carried out at the start of each crediting period.


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Emission Reductions

The emission reductions are therefore calculated as follows:

yyy PEBEER =

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

(Copy this table for each data and parameter)

Data / Parameter: EFy

Data unit: tCO2/MWh

Description: Grid emission factor

Source of data used: Central Electricity Authority

http://cea.nic.in/planning/c%20and%20e/Government%20of%20India%20web

site.htm

Value applied: 0.84

Justification of the

choice of data or

description of

measurement methods

and procedures actually

applied :

This value has been provided by the Central Electricity Authority (CEA), a

government body, for the NEWNE grid in India.

Any comment: Specified ex-ante

Data / Parameter: OMData unit: tCO2/MWh

Description: Operating Margin for grid



site.htm

Value applied: 1.0


choice of data or

description of

measurement methods

and procedures actuallyapplied :

Average of values for the past 3 years. This value has been provided by the

Central Electricity Authority (CEA), a government body, for the NEWNE grid

in India.

Any comment:

Data / Parameter: BM

Data unit: tCO2/MWh

Description: Build Margin for the grid


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site.htm

Value applied: 0.68


choice of data or

description of

measurement methods

and procedures actually

applied :

This value has been provided by the Central Electricity Authority (CEA), a

government body, for the NEWNE grid in India.

Any comment:

Data / Parameter: SCbiomassData unit: tonnes/MWh

Description: Specific fuel consumption of biomass residuesSource of data used: Calculated based on specifications provided by the manufacturer

Value applied: 1.38


choice of data or

description of

measurement methods

and procedures

actually applied :

Specific fuel consumption is calculated based on specifications for boiler and

turbine. In calculating the specific fuel consumption we have taken into account

GCV values of the three fuels which is 40% bagasse, 40% babulwood and 20%

agro-residues. The GCV values for babulwood = 3600 kcal, bagasse =

2900kcal, agro residue= 2900 kcal respectively.http://www.indiasolar.com/cal-value.htm

Any comment: Specified Ex-ante

B.6.3 Ex-ante calculation of emission reductions:

>>

From section B.6.1, the emission reductions are calculated as follows:

yyyPEBEER =

Baseline emissions

The baseline emissions are calculated as:

02. CEFEGBE yy =

Where:

BEy = Baseline emissions in year y, tCO2eEGy = Electricity exported to the grid in year y, MWh

EFC02 = Grid emissions factor, tCO2e/MWh

The quantity of electricity generated is equal to the difference between gross electricity generated and the

electricity used for auxiliary consumption and is based on factors such as installed capacity, operating

days and the plant load factor (PLF). It is initially assumed that the 10 MW plant will operate for 330


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days at 80% PLF for generation during the first year and 85% in the second year and 90% from the third

year onwards. The auxiliary consumption is 10%.

Hence, EGy which is given as:auxgrossy EGEGEG =

Where:

EGgross = Gross electricity generated by the project activity in the year y, MWh

EGaux = Auxiliary consumption due to the project activity in the year y, MWh

PLFHoursdaysOperatingCapacityEGgross =

For year 1

Based on the values above, EGgross is equal to 63,360 MWh and with 10% auxiliary consumption EG y =

57,024 MWh.

EFy fixed ex ante as per Section B.6.2 at 0.84 based on the CEA value for the NEWNE grid

Using the value of EFy = 0.84 tCO2/MWh gives BEy = 48,090 tCO2.

For year 2

EGgross is equal to 67,320 MWh and with 10% auxiliary consumption EG y = 60,588 MWh.

BEy = 51,095 tCO2.

From year 3 onwards

PLF is 90% and auxiliary consumption remains at 10%

EGgross = 71,280 MWh

EGy = 64,152 MWh

BEy = 54,101 tCO2.

Project emissions

The emissions due to transport of the biomass to the project plant are calculated as:

2,COkmyyy EFAVDNPE =

Where:

PEy = CO2 emissions during the year y due to transport of the biomass residue to the project plant(tCO2/yr)

Ny = Number of truck trips during year y

AVDy = Average round trip distance (from and to) between the biomass supply sites and the site of the

project plant during the year y (km)

EFkm,CO2 = Average CO2 emission factor for the trucks measured during the year y (tCO2/km)


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However as per SSG WG report 22 SSG WG agreed to clarify that emissions related to transport of

biomass is only required if these are transported over a distance of more than 200 kilometres

Hence project emissions in this case can be neglected. However the distance will be monitored and if it is

greater than 200km the project emissions will be taken into account.

Emission reductions are provided by the following equation:

yyy PEBEER =

From the analysis above the emission reductions are calculated as 48,090 tCO 2 for the first year of

operation.

B.6.4 Summary of the ex-ante estimation of emission reductions:

>>

Year

Estimation of

project activity

emission(tCO2e)

Estimation of

baseline emissions

(tCO2 e)

Estimation of

Leakage

(tCO2 e)

Estimation of

overall emission

reductions(tCO2 e)

June 2010-May 2011 0 48,090 0 48,090

June 2011-May 2012 0 51,095 0 51,095

June 2012-May 2013 0 54,101 0 54,101

June 2013-May 2014 0 54,101 0 54,101

June 2014-May 20150 54,101 0 54,101

June 2015-May 2016 0 54,101 0 54,101

June 2016-May 2017 0 54,101 0 54,101

Total

( tonnes of CO2 e)0 369690 0 369690

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

>>

B.7.1 Data and parameters monitored:

(Copy this table for each data and parameter)

Data / Parameter: EGgrossData unit: MWh

Description: Gross electricity generated by the project activity in year y

Source of data to be

used:

Energy meter readings from plant records

Value of data 63,360 for year 1; 67,320 for year 2; 71,280 from year 3 onwards

Description ofmeasurement methods

and procedures to be

applied:

Data will be continuously recorded from the turbine and the Shift Electrical in-charge will take hourly readings. This will be collated at the end of each day and

reported to the Site in-charge.

QA/QC procedures to

be applied:

The generation energy meters will be calibrated at least once every three years

by the MSEB.

Any comment: All data will be kept for a minimum of 2 years following issuance of certified


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emission reductions or the end of the crediting period, whichever is later.

Data / Parameter: EGaux

Data unit: MWhDescription: Auxiliary consumption by the project activity in year y


used:

Plant records


Description of

measurement methods


applied:

Data will be continuously recorded from the turbine and the Shift Electrical in-

charge will take hourly readings. This will be collated at the end of each day

and reported to the Site in-charge.

QA/QC procedures to

be applied:

The meters will be calibrated at least once every three years.



Data / Parameter: EGnetData unit: MWh

Description: Net electricity generated by the project activity in year y


used:

It is a calculated value

Value of data 57,024 for year1; 60,588 for year2; 64,152 for year3

Description of

measurement methods


applied:

Calculated as:

EGnet = EGgross - EGaux

QA/QC procedures to

be applied:



Data / Parameter: EFkm, CO2

Data unit: tCO2/km

Description: Emission factor for transport of biomass

Source of data used: 1996 IPCC Guidelines for National Greenhouse Gas Inventories, Chapter 1

Ref4, Table 1-32

Value applied: 0.00110799


choice of data ordescription of

measurement methods

and procedures

actually applied :

The data from the plausible options in Table 1-32 of IPCC 1996 report has been

chosen most conservatively, i.e. we have chosen data that results in the highestemission factor which will result in the largest transport emissions.

Any comment:


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Data / Parameter: Mbiomass,y

Data unit: Tonnes

Description: Amount of biomass input in the project activity

Source of data to beused:

Plant records


Description of

measurement methods


applied:

All the biomass is brought from outside. Each truck that enters the site will be

recorded at the weighbridge installed at the factory.

QA/QC procedures to

be applied:

The weighbridge records will be tallied against transporters receipts or against

the computer generated payment invoices.

Any comment: The data will be kept for the later of, two years after the end of the crediting

period or the last issuance of CERs for the project activity.

100% of the data will be monitored.

Data / Parameter: AVDy

Data unit: Km

Description: Average return distance of trips undertaken to transport biomass to the project

site


used:

Transporters receipts

Value of data 100

Description of

measurement methods


applied:

The average return distance will be recorded for each truck on entry to the site.

100% of the data will be monitored.

QA/QC procedures to

be applied:

This data may be cross checked with payments for transportation of the material.

Any comment: The data will be kept for the later of, two years after the end of the crediting

period or the last issuance of CERs for the project activity. 100% of the data will

be monitored.

B.7.2 Description of the monitoring plan:

>>

This monitoring plan is developed in accordance with the modalities and procedures for small-scale

CDM project activities and is proposed for the grid-connected biomass based renewable energy project

being implemented. The monitoring plan, which will be implemented by the project proponent, describes

the monitoring organization, the parameters to be monitored, the monitoring practices, quality assurance,quality control procedures, data storage and data archiving.

Monitoring requirement

The monitoring plan includes monitoring of energy parameters such as

Type and Quantity of each type of biomass fuel consumption of the project activity, (tons)


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Gross electricity Generation (MWh) Net quantity of electricity generated (exported) by the project activity (MWh)

Electricity generation

As per the small scale methodology AMS I.D, monitoring shall consist of metering the electricity

generated by the renewable technology. The generation data from the turbine will be continuously

recorded using the electricity meters in the control room. A manual hourly record will be made by the

Shift in-charge. This data will be collated at the end of each day by the Electrical in-charge and

reported on a daily basis to the Site in-charge. This data will form the basis of the ongoing calculation

which will then be tallied against the monthly recordings taken by the MSEDCL along with a

representative from the factory.

The Site Head will be responsible for collating all electrical data monthly out of the daily data (electricity

exported to the grid). He will transmit these data monthly to the Plant Manager.

The electricity meter will be calibrated atleast once in three years by MSEDCL. The Instrumentation

Engineer will be in charge of maintaining the records of the calibrations on site.

Evaluation of biomass

As per EB 47, annex 28 The project participant shall evaluate ex ante annually if there is a surplus of

the biomass in the region of the project activity, which is not utilised. If it is demonstrated (e.g., using

published literature, official reports, surveys etc.) at the beginning of each crediting period that the

quantity of available biomass in the region (e.g., 50 km radius), is at least 25% larger than the quantity of

biomass that is utilised including the project activity, then this source of leakage can be neglected

otherwise this leakage shall be estimated and deducted from the emission reductions.

We have therefore excluded the monitoring of leakage parameters as a biomass survey has been

undertaken and the results of the same have been provided to the DOE.

Fuel consumption

The consumption of the fuel will be monitored at the weighbridge installed at the site. The amount of

each type of fuel brought in by the plant will be monitored separately by the weighbridge operator.

Besides, the measurement of transport emissions is undertaken through monitoring of the number of

trucks delivering biomass and the average return distance to the site from which biomass is collected.

These data will be collected continuously by the weighbridge operator and will be collated at the end of

each day by the Plant Manager. The weighbridge records will be tallied against transporters receipts or

against the computer generated payment invoices.

The Plant Manager will collate monthly the consumption of all types of fuels, the number of trucks, the

average truck load and the average return distance out of the daily data.

The weighbridge will be calibrated annually and the Instrumentation Engineer will be in charge of thecalibrations and of maintaining the records of the calibrations on site.

General

The staff will be trained to ensure that the monitoring process is appropriate and effective. The CDM

data will be collated monthly and maintained by the Plant Manager. A detailed monitoring and

verification report will be produced by the plant on a yearly basis.


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The meters used will be calibrated regularly as per requirements. In case, the meters are found outside

the acceptable limits of accuracy or if not functioning properly, necessary action will be taken and the

meters will be repaired or replaced immediately. The Instrumentation engineer will be in charge ofcalibrations and of maintaining the records of calibrations on site.

The project proponent shall keep complete and accurate records of all the data as a part of monitoring for

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

project activity, whichever occurs later.

B.8 Date of completion of the application of the baseline and monitoring methodology and the

name of the responsible person(s)/entity(ies)

>>

10/10/2009

Mr. Gambhirmal R Shah, Sinewave Biomass Power Pvt Ltd, contact details as listed in Annex1

Ms. Roshni Kumar, Agrinergy Consultancy Private Limited, [email protected]


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SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

>>

C.1.1. Starting date of the project activity:

>>

26/05/2009

Letter of intent for Boiler purchase

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

>>

21y 00m

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

C.2.1. Renewable crediting period

>>

A 7 year renewable crediting period has been chosen

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

>>

01/06/2010 or the date of registration, whichever is later.

C.2.1.2. Length of the first crediting period:

>>

7y 00m

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:

>>

Not applicable

C.2.2.2. Length:

>>

Not Applicable


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SECTION D. Environmental impacts

>>

D.1. If required by the host Party, documentation on the analysis of the environmental impacts

of the project activity:

>>

In relation to the baseline scenario no negative environmental impacts will arise as a result of the project

activity.

The positive environmental impacts arising from the project activity are:

Reduction in CO2 emissions, which would be generated under the baseline scenario, by thereplacement of fossil fuels

Reduction in the emissions of other harmful gases (NOx and SOx) that would have been emittedfrom the combustion of fossil fuels for power generation in power plants connected to the grid.

Reduced ash production because bagasse, babulwood and agro residues have lower ash contentthan that of Indian coal (30-40%)

The project will meet all national and local environmental legislation. An Environmental Impact

Assessment (EIA) will be done and the EIA approval shall be obtained. The project has received a

consent to establish from the Maharashtra Pollution Control Board and an annual consent to operate

will be obtained. The consent to operate will be made available to the DOE during verification. The

project has obtained the following clearances:

1. Approval from Maharashtra Energy Development Agency

2. Consent to establish from MPCB

3. NOC from the Gram Panchayat

4. NOC from the Zilla Parishad

D.2. If environmental impacts are considered significant by the project participants or the host

Party, please provide conclusions and all references to support documentation of an environmental

impact assessment undertaken in accordance with the procedures as required by the host Party:

>>

An Environmental Impact Assessment (EIA) will be conducted as per the requirements of the host

country (India) and the approval will be obtained from the host party.


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SECTION E. Stakeholders comments

>>

E.1. Brief description how comments by local stakeholders have been invited and compiled:

>>

A newspaper advertisement has been published inviting comments from local people regardingthe project. The notice was published in Dainik Janpravas on 17th November 2009

A local stakeholder review has been undertaken through the invitation of comments from localpeople and the local municipal board

A national stakeholder review is undertaken through the approval of the project by the DNA (Ministry of

Environment and Forests).

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

To date no comments have been received.

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

>>

Since no comments have been received, no action has been taken.


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27

Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Sinewave Biomass Power Pvt Ltd

Street/P.O.Box: 94-B

Building: Maruti Krupa, Varshanagar

City: Kolhapur

State/Region: Maharashtra

Postfix/ZIP: 416012

Country: India

Telephone: +91 22 66363308

FAX: +91 22 23809797

E-Mail: [email protected]

URL:

Represented by: -Title: Director

Salutation: Mr

Last Name: Shah

Middle Name: R

First Name: Gambhirmal

Department: -

Mobile: 9821028080

Direct FAX:

Direct tel:

Personal E-Mail: [email protected]


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Organization: Agrinergy Pte Ltd

Street/P.O.Box: 10 Hoe Chiang Road

Building: #08-04 Keppel TowersCity: Singapore

State/Region:

Postfix/ZIP: 089315

Country: Singapore

Telephone: +65 6592 0398

FAX: +65 6592 0401

E-Mail:

URL: www.agrinergy.com

Represented by: -

Title: Director

Salutation: Mr

Last Name: AtkinsonMiddle Name: -

First Name: Ben

Department: -

Mobile: +44 7960 970974

Direct FAX: +65 6592 0401

Direct tel: +65 6592 0398

Personal E-Mail: [email protected]


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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

The project has not received any public funding


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Annex 3

BASELINE INFORMATION

We have adopted the approach specified in the tool to calculate the emission factor for an electricity

system to calculate the CO2 emission coefficient of the regional electricity grid.

The operating margin for the years 2006-2007, 2007-2008, 2008-2009 is 1.01, 1.01, and 1.00

respectively. The value of the operating margin of the NEWNE grid as calculated by the CEA is 1.01 and

the build margin is 0.685.

This value of the combined margin is fixed ex-ante at 0.84 tCO 2/MWh and is calculated as shown in the

table below:

tCO2/MWh

Operating Margin 1.00

Build Margin 0.68

Combined Margin (1*0.5) + (0.68*0.5) = 0.84

5http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver5.pdf, Page 8


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Annex 4

MONITORING INFORMATION

In addition to the measures for monitoring listed in section B.7.2 the following systems will be put in

place to monitor the project activity. Complete documentation for the operation and maintenance of the

power plant will be provided to the project owner at the time of commissioning by the Agrinergy Pte Ltd.

Additional training on CDM data monitoring will be provided to the operators of the power plant.

The monitoring of the project activity will be the responsibility of Sinewave Biomass Power Pvt Ltd. The

monitored data will be reported to Agrinergy by the Plant Manager on a quarterly basis for the

calculation and estimation of emission reductions. This data will be checked against initial estimates. If

the project is not performing as expected, a report will be sent to Sinewave Biomass Power Pvt Ltd

outlining where the project is deviating in its generation of emission reductions.

The procedure for storage of records and performance documentation is as given below:

o All data and records of data will be stored in electronic and paper format on site and will bemaintained for the crediting period and two years thereafter.

o All calibration reports will be stored in paper format on site and will be maintained for thecrediting period and two years thereafter.

The data quality will be ensured by the cross-check measures detailed below:

o Electricity exported to the grid: the electricity exported will be metered both by electricitymeters in the control room and by electricity meters located at the switchyard. Data from the

meters in the control room will be recorded continuously. Data from the meters at switchyard

will be recorded monthly by MSEB. In case there is a difference between the two records,

MSEB records will prevail.

o Average return trip distance: This will be cross checked with payments for transportation of thematerial.Measures to deal with possible monitoring data adjustment and missing data

The following are the measures that shall be taken to account for missing or adjusted data:

o Electricity export to the grid: In case both the data recorded by MSEB from the switchyardmeters and the meters in the control room is missing, then the emission reductions for the

corresponding period shall be set to zero.

o Consumption of biomass fuels: In case the data pertaining to quantity of biomass fuels ismissing, then the average GCV of the biomass fuel fired during the corresponding period for

which data is available shall be used to arrive at the weight of biomass fuels fired depending on

the power generation during the particular period.

Procedure for conducting internal audit at Sinewave Biomass Power Pvt Ltd:An internal audit shall be carried out during the project verification and monitoring phase, at every 6

months interval but one of these will coincide with the verification. The plant O&M manager and the

plant manager shall be responsible for conducting internal audits every 6 months from the start of

commercial operation of the power plant.

The following points shall be carried out as part of the internal audit procedures:


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1. Consolidation of quarterly data: The data recorded during the operation of the plant, shall beconsolidated on a half-yearly basis by the plant manager. The number of ERs generated by the

project activity shall be calculated and cross checked against the estimated ER as per the

calculation sheet. Any difference arising in the ER generated and ER estimated shall be recordedand reasons for the increase or decrease in the actual number of ERs generated shall be identified

and documented.

2. Random checking of data: The plant manager shall cross check the recorded data randomly. Fore.g., the data for electricity generation and import recorded for a particular months may be cross

checked against the MSEB bills for that particular month.

3. Record of necessary calibration certificates / government approvals: The plant manager shallensure that the measurement meters shall be calibrated as required by the state regulatory

authority. The records of such calibrations done shall be updated and stored. The necessary

approvals from the statutory bodies shall be updated and records maintained.

4. Storage of data: The plant manager shall ensure that the data recorded on a monthly basis forenergy generation, supply of biomass fuels shall be signed off by the individuals responsible for

recording the respective data.

5. Data collection and storage procedures: The plant manager shall check that the CDM data isbeing collected and recorded as per the formats for data storage as provided during the validation

of the project.

On completion of the above steps, minutes of meeting shall be prepared and all individuals participating

in the internal audit shall sign the minutes of meeting and the record shall be maintained for future

reference.

The organization will train the staff to ensure that the monitoring process is appropriate and effective.

The CDM data will be collated monthly in an excel file maintained by the Plant Manager (a specific

template will be provided by Agrinergy). A detailed monitoring report will be produced by the plant on a

yearly basis.

---------

PDD Sinewave India

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