PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1 CDM – Executive Boardpage 1This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. General description of 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 project activity Annex 2: Information reg arding public funding Annex 3: Baseline information Annex 4: Monitoring plan
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A.3. Project participants:
The parties involved in the project are shown in Table A.1:
Table A.1 Project participants
Name of Party
involved (*) ((host)
indicates a host Party)
Private and/or public entity(ies) project participants (*) (as
applicable)
The Party involved wishes
to be considered as project
participant (Yes/No)
China (host)Private entity: Guohua (Qiqihaer) Wind Power Co.,
Ltd. *No
Japan Private entity: Mitsui & Co., Ltd.* No
For more detailed contact information on participants in the project activities, please refer to Annex 1.
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:
A.4.1.1. Host Party(ies):
Country: People’s Republic of China
A.4.1.2. Region/State/Province etc.:
Region: Heilongjiang Province
A.4.1.3. City/Town/Community etc:
City / County: Qiqihaer City / Fuyu County
A.4.1.4. Detail of physical location, including information allowing the
unique identification of this project activity (maximum one page):
The project site is located in Fuyu County of the administrative region of Qiqihaer City in
Heilongjiang Province in the Northeast of China. The site location’s approximate coordinates are east
longitude of 124°15'20" ~ 124°17'42" and north latitude of 47°35'15" ~ 47°37'15". The lay-out of thewind farm consists of 33 turbines that are positioned to take optimal advantage of the prevailing wind.
The Sinovel FL 1500/77 Wind Turbine is equipped with an active yaw system and a 3 drive gear
system with a 1/104.1 drive ratio. The turbine employs an air break system backed up with a
secondary mechanical braking system. The project uses domestically produced technologies.
Training and maintenance requirements:
The project entity has made arrangements for its staff to become familiar with the operation andmaintenance requirements of a wind farm. Staff of the project entity attended / will attend the below
training sessions in order to operate and maintain the proposed project activity:
• February/March 2007: GEIC training course in Australia (1 person)
• July 2007: Training course in Dalian, China (8 persons)
• August 2007: Training course in Germany (120 person days)
Implementation schedule:
The implementation schedule of the proposed project activity is indicated in Table A.3 below.
B.2 Justification of the choice of the methodology and why it is applicable to the project
activity:
The baseline methodology ACM0002 is applicable to the proposed project, because the project meetsall the applicability criteria stated in the methodology:
• The proposed project is a grid-connected renewable power generation project.
• The project is a capacity addition from a renewable energy source, i.e. wind resources.
• The project does not involve an on-site switch from fossil fuels to a renewable source.
• The geographic and system boundaries for the relevant electricity grid, the North East China
Power Grid, can be clearly identified and information on the characteristics of the grid is
available.
• The methodology will be used in conjunction with the approved consolidated monitoring
methodology ACM0002 (Consolidated monitoring methodology for grid-connected electricity
generation from renewable sources).
The latest version of ACM0002 (version 6) has been applied.
B.3. Description of the sources and gases included in the project boundary
The project’s boundary is the North East China Power grid. The sources and gases included in the
project boundary are described in Table B.1 as below:
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Table B.1 Inclusion of gases and sources in the calculation of the emission reductions
Source Gas Included? Justification / explanation
CO2 Yes Included as per the ACM0002 methodology
CH4 No Excluded as per ACM0002.
B a s e l i n
eFossil fuel-fired Power
plants connected to theNorth East China Power
grid N2O No Excluded as per ACM0002.
CO2 No The project activity is a wind power generation
project which will not create emissions itself.
CH4 No The project activity is a wind power generation
project which will not create emissions itself.
P r o j e c t A c t i v i t y Guohua Qiqihaer Fuyu
1st
stage Wind Farm
Project
N2O No The project activity is a wind power generation
project which will not create emissions itself.
In line with the methodology, the only greenhouse gas accounted for in the calculation of the emission
reductions is CO2. The project’s spatial boundary is the Guohua Qiqihaer Fuyu 1st Stage Wind FarmProject and the North East China Power Grid as defined below. The project is connected through
Beijiao transformer station to the Heilongjiang Provincial Power Grid (See also figure B.1.).
According to the ACM0002 (version 6) methodology, the relevant grid definition should be based on
the following considerations:
1. Use the delineation of grid boundaries as provided by the DNA of the host country if available; or
2. Use, where DNA guidance is not available, the following definition of boundary:
In large countries with layered dispatch system (e.g. state/provincial/regional/national) the regional
grid definition should be used.
According to above requirements, the regional grid is selected as the project boundary.
The project is connected to the Heilongjiang Provincial Power Grid through the Beijiao transformer
station1. The Heilongjiang Power Grid is part of the North East China Power grid (illustrated in figure
B.1), which includes the Heilongjiang, Jilin and Liaoning Provincial Power Grids.
1 See also section B.7.2 for a diagram of the project’s connection to the grid.
Step 1. Identification of alternatives to the project activity consistent with current laws and
regulations
Sub-step 1a: Define alternatives to the project activity
This methodological step requires a number of sub-steps, the first of which is the identification of
realistic and credible alternatives to the project activity. There are only a few alternatives that are
prima facie realistic and credible in the context of the North East China Power Grid:
• Fossil fuel-fired power generation
• Hydropower
• The proposed windpower activity, without the support of CDM
• The same service of power supply is provided from grid
These are credible and realistic alternatives and alternatives that should be included as per the
description of the methodology (the additionality tool requires that the proposed project activity be
included as an alternative, without the benefit from CDM).
Coal-fired power generation is the dominant power supply option in China. In case of the North East
China Power Grid, both coal-fired power and to a lesser degree hydropower are common options for
power supply. Coal-fired power accounted for 84.1% of installed capacity and 93.5% of power
generation in 2004. Hydropower, accounted for 15.3% of installed capacity and 6.2% of power
generation in 2004.2
Continuation of the present situation (no capacity addition to the project electricity system) is not
realistic in the context of this project, because power demand has been increasing rapidly over the lastfew years. China has experienced severe power shortages, spurned by fast demand for power; and
hence the grids have been expanding rapidly. For example, the total generation on the North East
China Power Grid grew by 22.3% between 2002 and 2004.3
Sub-step 1b: Consistency with mandatory laws and regulations
The second sub-steps involve the confrontation of the alternatives with China’s applicable laws and
regulations. Three of the four alternatives identified above are in compliance with China’s relevant
2 See China Electric Power Yearbook 2005, pp. 473-474.
3 See China Electric Power Yearbook (editions 2003 and 2005).
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We conduct the investment analysis through a calculation of the Internal Rate of Return (IRR) of the
project and compare this with a benchmark stated on the Interim Rules on Economic Assessment of
Electrical Engineering Retrofit Projects, issued by the State Power Corporation of China. The Interim
Rules provide a guideline for projects in the electric power industry which state a minimum InternalRate of Return (IRR) of 8%. This minimum IRR is defined as a project IRR based on cash in- and
outflows only, and does not take into account the source of financing. The comparison of project IRR
as opposed to equity IRR has been chosen as the 8% hurdle for project IRR is a widely accepted
standard for projects in the power industry. Many of China’s power projects apply the 8% benchmark
IRR for financial assessment and use it as a hurdle rate for investment in the power industry such as
hydropower projects, fossil fuel fired projects, transmission and substation projects.
Sub-step 2c: Calculation and comparison of financial indicators
For the calculation of the IRR for the proposed wind farm, we use the parameters listed in Table B.2
which reflect the actual Guohua Qiqihaer Fuyu 1st Stage Wind Farm Project. The Total investment
amount, annual power supply and annual operation and maintenance costs are from the Feasibility
Study for the wind farm project, while the grid tariff is based on the outcome of a recent tender for
another wind farm project. The grid price for the proposed project has not yet been determined but
will be based on the outcome of recent tenders of other wind farm projects. We assume an investment
horizon of 21 years.
Table B.2 Parameters used in the calculation of the Internal Rate of Return
Parameter Value Unit EURO equivalent5
Total investment 419,310,000 RMB 41,450,178
Investment horizon 1 year construction plus 20 years operation -
Annual power supply 100,000 MWh -
Annual Operation and
Maintenance costs
10,480,000 (average)6 RMB 1,035,983
Grid tariff 0.509 RMB/kWh 0.050
Value Added Tax (VAT) 8.5 % -
CER Price (assumed price) 10 EUR 10
We calculate the Internal Rate of Return based on investments being made in the first year and power
sales in each subsequent year. A spreadsheet with the detailed calculation is available to the validator.
Table B.3 summarizes the main results of the calculations.
Table B.3 Project Internal Rate of Return (IRR), 21 years investment horizon
Internal Rate of Return
Project without CDM revenues 6.35 %Project with CDM revenues 10.09 %
Without the revenues from the sale of CERs, the IRR is 6.35%, below the benchmark of 8%. With the
revenues from the sale of CERs, the IRR exceeds 8% for a reasonable CER price. From these results
it is concluded that without CDM, the project is economically and financially unattractive. The
revenues from CDM, through the sale of CERs, are necessary to make the project attractive.
5 An exchange rate of 10.116 RMB/EURO has been applied to calculate the EURO equivalent values of the
parameters from the feasibility study. Source of exchange rate: Yahoo Finance.
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Sub-step 2d: Sensitivity analysis
The tool for the demonstration and assessment of additionality requires that a sensitivity analysis is
conducted to check whether, under reasonable variations in the critical assumptions, the results of theanalysis remain unaltered. We have used as critical assumptions:
• Grid price
• Static total investment
• Annual Power Supply
• Annual O&M costs
• CER Price
Variations of ±10% have been considered in the critical assumptions.7
Table B.4 summarizes the
results of the sensitivity analysis, while Figure B.1 provides a graphic depiction.
Table B.4 Results of the sensitivity analysis – impact of variations in critical assumptions on IRR Percentage Variation
Critical assumption
-10% -5% 0% +5% +10%
Total investment cost 7.79% 7.04% 6.35% 5.71% 5.12%
Annual power supply 4.63% 5.51% 6.35% 7.16% 7.96%
Annual O&M cost 6.67% 6.51% 6.35% 6.18% 6.02%
Grid power price 4.63% 5.51% 6.35% 7.16% 7.96%
CER price 9.73% 9.91% 10.09% 10.26% 10.44%
7We have applied variations of +10/-10 in the main parameters following the common practice of wind farm
feasibility studies in China. The +10/-10 interval is also in accordance with guidance provided by the
Measures for Feasibility Study Preparation of Wind Farms issued by the National Development and ReformCommission.
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Figure B.1 Results of the sensitivity analysis Sensitivity Analysis
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
11.00%
-10% -5% 0% 5% 10%
Percentage variation
I R
R
Total investment cost Annual power supply / Grid power price Annual O&M cost CER Price
8% benchmark
It is clear from the above table and graphic depiction that the IRR remains below the benchmark with
reasonable variations of the key parameters. Note that for the annual power supply a variation with
more than 10% would lead the IRR to exceed the 8% benchmark but this is not considered likely.
Wind speed measurements since 1957 show that wind speed has gradually declined in the local area
and in the last 25 years there has not been a single year in which the annual average wind speed
exceeded the average (as measured since 1957) with more than 10%.8
It is therefore improbable that
the annual power supply would consistently exceed the +10% interval over the complete lifetime of
the proposed project activity. A change in the grid price has an equal impact on the IRR as a change in
annual power supply (as shown in table B.4) but is also not considered likely as the grid price is
determined by government and is based on the outcome of recent biddings for concession wind farmprojects. The power price for concession projects is fixed for the first 30,000 hours of operation
9and
although the proposed project activity is not a concession wind farm project it is not foreseen that the
project will receive preferential treatment from the government or grid operator. It is therefore
unlikely that the grid price will increase in the future.
8 Average annual wind speed data in the local area have been measured since 1957 and are provided in the
feasibility study of the proposed project activity.
9See Li Junfeng et al (2006), A study on the Pricing Policy of Wind Power in China, report published by
China Renewable Energy Industries Association (CREIA), Greenpeace and the Global Wind Energy Council(GWEC)
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Additionally, one could argue that if there were only a limited number of opportunities for a certain
type of project activity and at the same time, most of the limited number of opportunities would have
been realized, the type of project activity should be considered common practice. However, on the
basis of information available for China as a whole, we will argue that this is not the case for windfarms in China.
The available information of the wind resource of China is in terms of a classification scheme based
on wind power density (and annual effective wind hours),10
with typical estimates of the real
accessible resource of around 250 GW, of which about 130 GW is in the most favorable Class A
category. Other sources give similar but comparable numbers, for example ERI estimated the
exploitable wind energy potential as 253 GW.11
The total installed capacity in China per end 2003 is 391 GW, of which 0.14% is wind power,
corresponding to 0.555 GW. This means that as of end 2003, only 0.22% of the theoretical potential
for windpower had been utilized. Note that in making this assessment we have assumed that the
theoretical potential consists only of the most favorable Class A Category resources. This confirms
that the utilization of wind power is not common practice in China as only a small fraction of China’s
wind resources has been utilized.
Sub-step 4b. Discuss any similar options that are occurring:
The wind farms mentioned in Table B.5 are few, and are either small scale and use predominantly
foreign turbines. Additionally, windparks developed without CDM have benefited from power prices
ranging from 0.59-0.65 RMB/kWh, substantially above the price for the proposed project activity.
Earlier wind farm projects which started development prior to 2002 were faced with power prices that
were determined by local authorities. This system was replaced in 2002 when a bidding system for
wind concessions was introduced for larger projects (over 100 MW) which led to a downwardpressure on the grid prices due to strong competition. Although for projects under 100 MW the
regulations provide greater freedom to local authorities to set power prices, in the case of the
proposed project activity the local government has issued a notice to the project entity stating that the
grid power price will be determined on the basis of the outcome of recent biddings and therefore the
proposed project activity faces a similar low power price as faced by larger wind farms (see for more
information on wind power pricing policy in China, Li Junfeng et al (2006)).12
Wind farms with comparable capacity to the proposed project activity that are currently being
developed in other parts of China are all developed under the CDM. Thus, it may be clear that
windpower is not a power generation technology that is part of the baseline. This is also confirmed by
the analysis of Meier, op.cit., which concludes that wind farms are not commercially attractive
without special incentives, such as could be provided by CDM.
10 This information is based on Meier (2002), Economic and Financial Analysis of the China Rewewable
Energy Scaleup Programme (CRESP) Volume I: The optimal quantity of renewable energy. The
classification is as follows: Class A=high (annual effective wind power density >5850 MJ/m2); B=moderate
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B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
In accordance with the ACM0002 methodology, the baseline emission factor is calculated as a
combined margin: a weighted average of the operating margin (OM) emission factor and the build
margin (BM) emission factor. Both the OM and BM emission factor are calculated ex ante.
This PDD refers to the Operating Margin (OM) Emission Factor and the Build Margin (BM)
Emission Factor published by the Chinese DNA on 15 December 2006. We will refer to these
emission factors as the ‘published emission factors’.
F o r more information on the published OM and BM emission factors, please refer to :
http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2006/20061215144550669.pdf : calculation result
of the baseline emission factor of Chinese power grid.http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2006/20061215144641643.xls : calculation process
of the baseline OM emission factor of Chinese power grid
http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2006/20061215144747182.pdf : calculation process
of the baseline BM emission factor of Chinese power grid
We calculate the OM and BM Emission Factors on the basis of the published emission factors but
deviate at some points by using data published in the China Energy Statistical Yearbook and China
Electric Power Yearbook which results in a slightly lower emission factor and is therefore more
conservative. Additionally, since the published emission factors were issued, new editions of the
above-mentioned statistical yearbooks (China Energy Statistical Yearbook 2006 and China Electric
Power Yearbook 2006) have been published, and conform the requirements of ACM0002 we haveused the latest available data for the calculation of the emission factors. The description below
focuses on the key elements in the calculation of the published emission factors and the subsequent
calculation of emission reductions. The full process of the calculation of the emission factors and all
underlying data are presented in English in Annex 3 to this PDD.
Selection of values for net calorific values, CO2 emission factors and oxidation rates of various fuels .
As mentioned above, the Chinese DNA has entrusted key experts with the calculation of the grid
emission factors. In these calculations choices have been made for the values of net calorific values,
CO2 emission factors, and oxidation rates. In the calculation files of the published emission factors,
the net calorific values are based on the China Energy Statistical Yearbook, and the oxidation rates
and the CO2 emission factors are based on IPCC 1996 default values. We have compared the IPCC1996 with the more recently published IPCC 2006 values. For some of the fuels the IPCC 2006 data
results in a lower carbon emission factor and we use the lower values in our calculation. The
following table summarizes the values used. Note that the table lists the carbon emission factor of the
fuels, the CO2 emission factor has been obtained by multiplying with 44/12. Rounded figures have
been reported but exact figures have been used in the calculations in this PDD.
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Table B.7. Default values used for net calorific values, oxidation factors, and CO2 emission factors of fuelsFuel Unit NCV Oxidation factor Carbon emission factor CO2 emission factor
Other coking products 104 Tons 284.35 0.980 25.8 94.6
Other E (standard coal) 104 Tce 292.7 0.980 0 0.0
Data source:
• Net calorific values: China Energy Statistical Yearbook, 2004 p. 302;
• Oxidation factors: IPCC default values, see Revised 1996 IPCC Guidelines for National Greenhouse Gas
Inventories, Workbook, p. 1.8;
• Carbon emission factors: IPCC default values, see 2006 IPCC Guidelines for National Greenhouse Gas
Inventories.
• CO2 emission factors: calculated from carbon emission factors
Description of the calculation process
The key methodological steps are:
1. Calculation of the Operating Margin (OM) Emission Factor
2. Calculation of the Build Margin (BM) Emission Factor
3. Calculation of the Baseline Emission Factor
4. Calculation of the Baseline emissions
5. Calculation of Emission Reductions
The methodology is applied to the North East China Power grid which is defined as including thegrids of Heilongjiang, Jilin, and Liaoning, as is further elaborated in Section B.3. Section B.3 also
describes how the project boundary is decided.
Step 1. Calculation of the Operating Margin Emission Factor
Choice of method to calculate the OM emission factor
The ACM0002 methodology offers four options for the calculation of the OM emission factor:
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The preferred methodological choice, as provided for in the ACM0002 methodology, for the
calculation of the OM emission factor is dispatch analysis, option (c). However, the detail dispatch
information necessary for the implementation of this method is not available. Also option (b), Simpleadjusted OM can not be applied, because the detailed information necessary to construct a load curve
is not available. The choice is therefore between option (a), Simple OM, and option (d), Average OM.
If low cost/must resources account for more than 50% of grid generation option (d) should be chosen,
whereas if low cost/must resources account for less than 50% of grid generation, option (a) should be
chosen. The Simple OM will be used for the proposed project, because without any nuclear source,
the North East China Grid only draws 8.28% of its total electricity generation from renewable energy
sources. Hence, low cost/must run resources (hydropower and wind power) constitute less than 50%
of total grid generation (see Table B.8), which accords with the defined condition of Simple OM.
Table B.8 Installed capacity and electricity generation of the North East China Power Grid, 2000-200413
Year Installed capacity (MW) Electricity generation (GWh)
Source: China Electric Power Yearbook (editions 2002, 2003, 2004 , 2005 and 2006).
Accordingly, the OM emission factor (EFOM,y) is calculated as the generation-weighted average
emissions per unit of electricity (measured in tCO2 /MWh) of all generating sources serving the
system, excluding the low-operating cost and must run power plants.
∑
∑ ⋅
=
j
y j
ji y ji
ji
yOM GEN
COEF F
EF ,
...
,
, (B.1)
With:
• Fi,j,y the amount of fuel i (in a mass or volume unit) consumed by relevant power sources j in
year(s) y. j refers to the power sources delivering electricity to the grid, not including low
operating costs and must-run power plants, and including imports to the grid15
.
• COEFi,j,y is the CO2 emission coefficient of fuel i (tCO2 / mass or volume unit of the fuel), taking
into account the carbon content of fuels used by relevant power sources j and the percentageoxidation of the fuel in year(s) y;
• GEN j,y is the electricity (MWh) delivered to the grid by source j.
13 Numbers are calculated on the basis of data for Heilongjiang, Jilin, and Liaoning. The same is true in other
places where we refer to North East China Power Grid.
14Low cost / must run resources in Table B.7 are composed of “Hydro” and “Others”. The category “Others” is
mainly composed of wind power and is therefore included as part of low cost / must run.
15Information on electricity imports to the North East China Grid is not listed in the China Electric Power
Yearbook. It is unclear whether no imports exist or no data on imports exist. Data on exports by the North
East China Grid exists, so it assumed that the North East China Grid is a net exporter of power and thereforeimports have not been included in the calculations.
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The CO2 emission coefficient (COEFi) of fuel i (in tCO2 / mass or volume unit of the fuel) is equal to
the net calorific value of fuel i, multiplied by the oxidation factor of the fuel and the CO2 emission
factor per unit of energy of the fuel i.
iiCOii OXID EF NCV COEF ⋅⋅= ,2 (B.2)
With:
• NCVi is the net calorific value (energy content) per mass or volume unit of a fuel i,
• OXIDi is the oxidation factor of the fuel,
• EFCO2,i is the CO2 emission factor per unit of energy of the fuel i.
Data vintage selection
In accordance with the ACM0002 methodology and the choice for an ex ante calculation of the OMEmission Factor, the formula (B.1) is applied to the three latest years for which data are available, and
a full-generation weighted average value is taken for the OM Emission Factor.
Choice of aggregated data sources
The published OM emission factor calculates the emission factor directly from published aggregated
data on fuel consumption, net calorific values, and power supply to the grid and IPCC default values
for the CO2 emission factor and the oxidation rate. According to the ACM0002 methodology, the
selection of aggregated data for the calculation of the emission factors, but the disaggregated data
needed for either of the three more preferred methodological choices is not publicly available in
China.
Calculation of the OM emission factor as a three-year full generation weighted average
On the basis of these data, the Operating Margin emission factors for 2003, 2004 and 2005 are
calculated. The three-year average is calculated as a full-generation-weighted average of the emission
factors. For details we refer to the publications cited above and the detailed explanations and
demonstration of the calculation of the OM emission factor provided in Annex 3. We calculate an
Operating Margin Emission Factor of 1.21775 tCO2/MWh (see Annex 3, Table A2 for the
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and 3) the AMS-1.D methodology refers to the ACM0002 methodology for the baseline emission
factor calculation method.
The calculation of the published BM Emission Factor is based on this approach and is describedbelow:
First we calculate the newly–added installed capacity and the share of each power generation
technology in the total capacity. Second, we calculate the weights of each power generation
technology in the newly-added installed capacity17
. Third, emission factors for each fuel group are
calculated on the basis of an advanced efficiency level for each power generation technology, IPCC
default oxidation factors and a weighted average carbon emission factor on the basis of IPCC default
carbon emission factors of individual fuels.
Since the exact data are aggregated, the calculation will apply the following method:
We calculate
the share of the CO2
emissions of solid fuel, liquid fuel and gas fuel in total emissions respectively by
using the latest energy balance data available; the calculated shares are the weights.
Using the emission factor for advanced efficient technology we calculate the emission factor for
thermal power; the BM emission factor of the power grid will be calculated by multiplying the
emission factor of the thermal power with the share of the thermal power in the most recently added
20% of total installed capacity.
Detailed steps and formulas are as below:
First, we calculate the share (%) of CO2 emissions of the solid (λ Coal), liquid (λ Oil)and gaseous fuels
(λ Gas) in total emissions respectively .
∑
∑
×
×
=∈
ji
ji y ji
jCOALi
ji y ji
CoalCOEF F
COEF F
,
,,,
,
,,,
λ (B.4)
∑
∑
×
×
=∈
ji
ji y ji
jOILi
ji y ji
OilCOEF F
COEF F
,
,,,
,
,,,
λ (B.5)
∑
∑
×
×
=∈
ji
ji y ji
jGASi
ji y ji
GasCOEF F
COEF F
,
,,,
,
,,,
λ (B.6)
17Newly added capacity is determined as follows. First, the latest year (2005) for which data on total installed
capacity are available is identified. Then, the last year is identified in which the total installed capacity was
below 80% of the total installed capacity in 2005. This defines “newly added capacity”. Note that this
approach does not follow the EB decision in response to the DNV request as mentioned in the main text tothe letter, but the approach taken is the one that has been followed in numerous PDDs since the EB decision.
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with:
• F i,j,y the amount of the fuel i consumed in y year of j province (measured in tce;
• COEFi,j,y the emission factor of fuel i ( measured in tCO2/tce) while taking into account the
carbon content and oxidation rate of the fuel i consumed in year y;• COAL,OIL and GAS subscripts standing for the solid fuel, liquid fuel and gas fuel
Second, we calculate the emission factor of the thermal power generation technology (EF thermal):
AdvGasGas AdvOilOil AdvCoalCoalThermal EF EF EF EF ,,, ×+×+×= λ λ λ (B.7)
While EFCoal,Adv, EFOil,Adv and EFGas,Adv represent the emission factors of advanced coal-fired , oil-fired
and gas-fired power generation technology, see detailed parameter and calculation in Annex 3.
Third, we calculate the BM emission factor of the power grid
Thermal
Total
Thermal y BM EF
CAP
CAP EF ×=, (B.8)
While CAPTotal represents the total newly-added capacity and CAPThermal represents newly-added
thermal power capacity.
The λ s are calculated on the basis of the weight of CO2 emissions of each type of fuel in the total
CO2 emissions from thermal power. Recalculation of the λ s on the basis of publicly available data
yields a different result than the data published by the DNA. In addition, we apply the IPCC 2006
default values for carbon emissions of fuels instead of the IPCC 1996 default values, and a smalldifference exists between the official statistics (i.e. China Electric Yearbook) and the data used to
calculate the published emission factors. The most significant change, however, is the use of the
China Energy Statistical Yearbook 2006 and the China Electric Power Yearbook 2006. Subsequent
calculation of the Build Margin emission factor yields a baseline emission factor of 0.83106
tCO2/MWh.
For details we refer to Annex 3, and in particular Table A5, repeated below as Table B.10.
Table B10. Calculation of the BM Emission Factor, North China Grid EFthermal (tCO2/MWh) Share of thermal power in added capacity, 2005-1998 EFBM (tCO2/MWh)
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B.7.2 Description of the monitoring plan:
The project is connected to the grid through an on-site transformer station that increases the voltage to
110 kV. The project is then connected to Beijiao transformer station which functions as a switchingstation to connect the project to the grid. The net power supplied to the grid is metered by the project
entity at a point after power has been transformed to 110 kV (see figure B.2). Therefore, no further
transformer losses will occur before the project is connected to the grid.
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Net electricity supplied to the grid by the project (EGy in B.7.1.) is calculated on a monthly basis as:
21 M M y ED ES EG −=
With:
• ESM1, net electricity supplied by the project through the main power line (in MWh) metered
by the instruments at M1 and cross-checked against the monthly sales and billing receipts
based on readings of M3.
• EDM2, electricity delivered to the project through the 10 kV connection line. Readings are
cross-checked against the monthly billing receipts.
All metering instruments will be calibrated annually in accordance with the regulations of the grid
company by an entity accredited by the grid company. The results of the calibration will be submitted
to the project entity. If there are any anomalies in the readings of the metering instruments throughout
the year, the instruments will be recalibrated. All metering instruments are certified by the ChinaElectricity Research Institute and have a minimum accuracy in accordance with Accuracy Class 0.5s .
Table B.10 indicates the recording frequency and documentation form of the metering instruments.
Table B.10 Recording metering instruments
Meter Operated by Electronic
measurement
Manual
measurement
Recording Documentation
M1 Project entity Hourly Daily
(optional)20
Monthly Print out of electronic record
and optional paper log. Data
will consist of two readings,
i.e. power delivered to the
grid and power received from
the grid.
M2 Grid company Hourly Daily
(optional)20
Monthly Print out of electronic record,
optional paper log and billing
receipt
M3 Grid company - - Monthly Invoice for sales to the grid
and accounting vouchers for
receipt of payment and
billing receipts for power
received from the grid
All records of power supplied to the grid and received from the grid, invoices, relevant accountingdocuments and billing receipts and the results of calibration will be collated in a central place by the
project entity. Data record will be archived for a period of 2 years after the crediting period to which
the records pertain.
More details are provided in the monitoring plan provided to the Project Entity and available to the
validator for review.
20The project entity intends to log the readings of meters M1 and M2 manually in daily logs, but these logs will
not form a formal requirement during verification. The ACM0002 methodology only requires hourly
electronic measurement and these manual log records will only be maintained for back-up purposes. Theproject entity may deviate from this procedure during actual operation of the project.
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SECTION D. Environmental impacts
D.1. Documentation on the analysis of the environmental impacts, including transboundaryimpacts:
An Environmental Impact Assessment (EIA) was carried out and was accepted by the Environmental
Protection Department of Heilongjiang Province on the 1st
of July 2005. A summary of the main
findings of the EIA is provided in section D.2
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:
SUMMARY OF ENVIRONMENTAL IMPACT ASSESSMENT
Environmental impacts:
The project is located in Taha Town of Fuyu County in Heilongjiang, with 111 national express from
Beijing to Jiagedaqi on its east side, while Nenjiang water diversion project on the south, 1.5km
away; Taiping village(20 families with 60 people) of Taha Town on the north 1.5km away, and
grassland on the west.
1 .
..
.
ecological environmental impacts:
(1) impacts on land and cattle farmingThe permanent appropriated land of the project is about 31.36 ha, which only accounts for 0.039% of
total 80500 ha grassland in Fuyu County. It means the reduced grassland per capital is 0.0001 ha with
0.039% reduction rate, and the grass production loses only 0.04% of the total in Fuyu County. From
this point of view, this project will occupy relatively small land and causes little grass reduction.
Therefore, it will not affect the utilization and cattle farming in the local area.
(2) Impacts on soil
During the construction period and 1-2years after the construction work, the soil corrosion modulus
by temporary appropriated land will increase 1.5-4.0 times and expand to other surrounding grassland.
So the total influenced grassland will be 1.2-1.5 time than the area of temporary appropriated land,
and the total corrode amount will reach 11,000t (including background value) and affect for 2-3years
with most severe situation in the construction year. However, the total corroded land only accountsfor 0.01% of the total land in Fuyu County, if proper recovery measures been taken, the influence
period (2-3years) will be shorten. Therefore, the soil corrosion brought along by destroy of the ground
vegetation during construction is just a temporarily impact and will not cause obviously
environmental impacts.
(3) Impacts on wild animals
At present, the most common seen animals in this area are mice, rabbits, yellow stoats, raccoon dogs,
muskrats and wolves, they are all small size animals but with wide range of food search areas. So
even the construction work of this project will occupies relatively limited area of their activity place,
but they can easily find other places on other part of grassland. Meanwhile, after finishing of the
construction, these animals can also move back to live in the windpark.
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Resident birds can adapt to this environment within very short period or easily find another suitable
habitat. It seldom happens that the blades will knocked on the birds. The construction site is not
within the migrating rest places and breeding sites of waterfowls and migrating birds. Most of them
have rested or bred in Zhalong National Nature Preservation Zone or Hala wetland NaturePreservation Zone, which are quite far away from the windpark site. And the flying height of these
birds is above 1,000m, so the construction of this project will not put any impacts on migrating birds.
In addition, the construction site is 17 km away from the north boundary of Zhalong National Nature
Preservation Zone, and 33 km from the core area of this zone.
(4) Impacts on landscape
After the construction finished, the rows of orderly wind turbines will give a bright beautiful
landscape in endless grassland. This combined scenery will introduce artificial element into natural
meadow and grassland, and together with farmland, swamp, forestry and bosk will enrich the diversity
of this landscape and add ecological heterogeneity to the three-dimensional sight of the grassland.
From the visual point, it gives a better view with a multilayer aesthetics character. Such a green
energy base without any pollution as this project sits on north green grassland, which will provide a
harmonious landscape between people and nature and a beautiful and fantastic feeling to people. It’s
full of vigor and vitality and also with strong times and environment characters.
2 .
..
.
Air pollution impacts:
There are no environmental sensitive objects in the construction site, because the only thing around it
is the grassland. The dust concentration value during the construction period is below the monitoring
limited concentration value of inorganization emission of particulate matter regulated by Emission
Standard for Atmospheric Pollutant (GB16297-
1996). So if taking feasible measures, the
concentration value can be reduced to minimal level and accepted by current environment. For the
heating purpose during the operational period, the electro-boils will be used without any emission of
pollutants, so they will not affect the air.
3 .
..
.
Water pollution impacts:
The waste water during the construction period is mainly from domestic water of the construction
workers and production waste water of batching and washing process, but the total amount of such
water is relatively small and will not give a big and long-term effect to the surface water environment.
The waste water during the operation period is mainly domestic water, 0.8t/day, which will be used to
irrigate the grassland after the first level deposition, so it will not give bad influence to water
environment.
4 .
..
.
Noise pollution impacts:
It will meet with the noise standard for the construction site during the construction period. And inaddition, there aren’t any environmental protected sensitive objects surrounding this project.
During the operation period, the noise produced by these windturbines will decrease below 45dB 250
m away, and due to long distance between windfarm and nearest residents area, when the noise
reaches this area, it will be low enough to satisfy the requirements by residents area standard, so the
project will not cause bad impacts on this point.
In a word, this project is a renewable green energy development project without pollution but of great
economic, environmental and social benefit and strategic significance.
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An overview of the main comments/questions expressed during the meeting is provided below:
Name: Mr. Xu Jinsheng
Position / Affiliation: Vice director of Cultural Heritage Administrative Station of QiqihaerComments:
Mr. Xu asked Guohua (Qiqihaer) Energy Investment Co., Ltd had conducted the archaeological
investigation of cultural heritage on the construction site according to Chinese Cultural Heritage
Protection Law. And he also showed an archaeological investigation letter and promised to finish the
work before the real construction started.
Response by project entity (Mr. Liang Jun):
Mr. Liang said Guohua welcomed people from Cultural Heritage Administrative Station of Qiqihaer
to conduct such investigation, and will try its best to cooperate to successfully finish this work.
Name: Mr. Bai Zhanlin and Wang Changshan
Position / Affiliation: Local villagers
Comments:
Mr. Bai and Wang asked whether there would be the opportunities for them to work in this project
and earned some money, if necessary they could provide their owner instruments for the construction.
Response by project entity (Mr. Liang Jun):
Mr. Liang first thanked their supply and replied as below:
• There surely would be such opportunities. If Guohua Company needed labours; it would put the
local people into first consideration and hire them for some assistant construction work, such as
caretakers.
• For the construction material, Guohua will buy the materials from the local area, since this townis rich in sand and stones, in this way it can also benefit the local people.
Name: Mr. Liu Zhiming
Position / Affiliation: Local villager
Comments:
Mr. Liu said this windpark project could bring benefit to the local people, but at the same time it
would also raised some conflicts between the local people and Guohua company. The construction
will surely use the land (maybe the farmland) of villager in Taha township, even the occupied areas
were small. So he asked about whether Guohua had plan to solve it or not.
Response by project entity (Mr. Liang Jun):Mr. Liang gave the responses:
• For the land occupied, Guohua company promises to compensate the villagers according to
related national laws.
• Guohua company planned to only occupy the grassland and wasteland while avoid the farmland
as possible as they could during the designing and construction processes, but if it had to, Guohua
would compensate according to related national laws for farmlands.
• Each wind tower was planned a 20*20m2area, and after finishing the construction, the land will
be recovered, so actually the occupied land for each tower would be much smaller than 20*20m2
area
• Mr. Liang promised the villager Guohua would be strictly follow the laws of China and satisfied
the villager. Since Guohua is a large stated owned company, it will surely keep its promise.
Other E (standard coal) 104 Tce 0 16.18 0 16.18 292.7 0.98
Total
Data source: Fuel consumption data are from China Energy Statistical Yearbook 2006, p. 146-157. Net calorific values are fromagainst China Energy Statistical Yearbook, 2004 p. 302; Oxidation factors are from the files mentioned above and crosschecked
IPCC Guidelines for National Greenhouse Gas Inventories, Workbook, p. 1.8; fuel emission coefficients are IPCC default value
Other E (standard coal) 104 Tce 0.00 26.97 5.07 32.04 292.7 0.980
Total
Data source: Fuel consumption data are from China Energy Statistical Yearbook 2005, p. 222-233. Net calorific values are fromagainst China Energy Statistical Yearbook, 2004 p. 302; Oxidation factors are from the files mentioned above and crosschecked
IPCC Guidelines for National Greenhouse Gas Inventories, Workbook, p. 1.8; fuel emission coefficients are IPCC default value
Greenhouse Gas Inventories..
21 The data tables used in the calculation of the published emission factor omit gasoline. As consumption of gasoline for ther
Other E (standard coal) 104 Tce 0.00 29.38 0.00 29.38 292.7 0.980
Total
Data source: Fuel consumption data are from China Energy Statistical Yearbook 2004, 2004, p. 166-77. Net calorific values are
against China Energy Statistical Yearbook, 2004 p. 302; Oxidation factors are from the files mentioned above and crosscheckedIPCC Guidelines for National Greenhouse Gas Inventories, Workbook, p. 1.8; fuel emission coefficients are IPCC default value
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Annex 4
MONITORING INFORMATION
Selection procedure:
The monitoring officer will be appointed by the general manager of Guohua (Qiqihaer) Wind Power Co.,
Ltd. The monitoring officer will be selected from among the senior technical or managerial staff.
The selection of the initial monitoring officer has taken place and the following person was appointed:
Name: Mr. Yang Ming
Position: Manager of Engineering Department
Tasks and responsibilities:The monitoring officer will be responsible for carrying out the following tasks
• Supervise and verify metering and recording:
The monitoring officer will coordinate with the plant manager to ensure and verify adequate
metering and recording of data, including power delivered to the grid.
• Collection of additional data, sales / billing receipts:
The monitoring officer will collect sales receipts for power delivered to the grid, billing receipts
for power delivered by the grid to the wind farm (if applicable) and additional data such as the
daily operational reports of the wind farm.
• Calibration:
The monitoring officer will coordinate with staff of the project entity to ensure that calibration of the metering instruments is carried out periodically in accordance with regulations of the grid
company.
• Calculation of emission reductions:
The monitoring officer will calculate the annual emission reductions on the basis of net power
supply to the grid. The monitoring officer will be provided with a calculation template in
electronic form by the project’s CDM advisors.
• Preparation of monitoring report:
The monitoring officer will annually prepare a monitoring report which will include among
others a summary of daily operations, metering values of power supplied to and received from
the grid, copies of sales/billing receipts, a report on calibration and a calculation of emission