Grid Connected 3MWp Solar PV Power Plant at Raichur District of Karnataka State, India

8/13/2019 Grid Connected 3MWp Solar PV Power Plant at Raichur District of Karnataka State, 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 CDMSSC PDD 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 design

document for small-scale activities (CDM-SSC-PDD),

taking into 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:

>>Grid connected 3MWp Solar PV power plant at Raichur District of Karnataka State, India

Version 02, 13/09/2011

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

>>

The proposed CDM project activity is demonstration project undertaken by Karnataka Power

Corporation Limited (Project Participant) and involves installation and operation of a green field,

grid connected 3MWp capacity solar photovoltaic (PV) power plant at Yapaladinni village of Raichur

District in Karnataka State. The generated electricity will be sold to the Gulbarga Electricity Supply

Company (GESCOM) which forms part of Southern regional grid. The Project Participant has a long

term Power Purchase Agreement (PPA) contract with Gulbarga Electricity Supply Company

(GESCOM). The installation of solar photovoltaic power plant will displace equivalent amount ofelectricity generation in the regional grid, which is predominantly fossil fuel based, which would

result in the emission reductions of the greenhouse gases. The project is expected to generate

approximately 4468 MWh electricity per annum. The project will result in emission reductions of

4,096 tCO2e per annum.

The project activity is a demonstration project which involves the installation of a new grid-connected

renewable power plant. Therefore, As per AMS-ID, the baseline scenario is defined as: The

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

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

grid.

The power sector in India including the Southern region largely comprises thermal power stations. In

the absence of the project activity equivalent amount of electricity would have been generated fromthe existing grid connected power plants and planned capacity additions which are also largely fossil

fuel based.

The project has also been accorded Host country approval from the National Clean Development

Authority, Ministry of Environment and Forests (MoEF), Government of India (HCA Letter No:

4/10/2010-CCC, Dated 12 Aug 2010).

Contribution of project activity to sustainable development

The project contributes to the general well being of the region and is in line with the sustainable

development policies of the host country

Socio- Economic:

The project activity during construction would generate employment in the project vicinity; The project activity will result in direct and indirect employment opportunities for local

persons towards installation, operation and maintenance of the proposed project activity.

The proposed project activity will result in increased business opportunities for localcontractors and suppliers during the various phases.

Has a high explicability potential and can therefore promote technological self reliance inIndia.

Increases energy services in a country which faces considerable power outages.


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Environmental Benefits:

The proposed project activity is environmental friendly and the operation of this power plantdoes not lead to any form of pollution (Air, Land, Noise and Water)

The project activity does not have any impact on the local flora & fauna; The project activity will result in CO2emission reduction. The operation of the project activity will contribute towards the global goal of mitigating the

climate change effects;

Technological Benefits:

The project activity is a demonstration project, which applies Solar Photovoltaic technologyto generate electricity which is not so widely used technologies in the region to generate

power.

The success of this project activity would enable other project promoters to replicate similarprojects across the region (Karnataka State).

A.3. Project participants:

>>

Name of the Party

involved (*) ((host)

indicates a host party)

Private and/or public entity(ies)

project participants (*) (as

applicable)

Kindly indicate if the Party involved

wishes to be considered as project

participant (Yes/No)

India (Host) Public Entity: Karnataka

Power Corporation Limited

(KPCL)

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.:

>>

Yapaladinni village in Raichur District in Karnataka State, India

A.4.1.3. City/Town/Community etc:

>>

Yapaladinni village

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

unique identification of this small-scale project activity :

>>

The project is located at Yapaladinni village with survey no. 338, which is in Raichur district which is

a part of Karnataka state, India. Yapaladinni is located at a distance of 21 kms from Raichur town.

Raichur and is around 400 kms north of Bangalore city, the state capital and is well connected by rail


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and road. The nearest airport is Hyderabad International Airport which is 160 kms away. Raichur has

a railway station and is connected to national highway (NH 13) by a major road. The geographical co-

ordinates of the site where the power plant is located are stated below:

Village / Town Latitude Longitude

Yapaladinni village 16 14' 51 77 26' 35

Raichur

District

Location of theLocation of theLocation of theLocation of the

plantplantplantplant


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

activity:

>>

The proposed CDM project activity will generate power using solar energy, which is a renewablesource of energy. The proposed CDM project activity qualifies for the simplified modalities and

procedures for the small scale CDM project activities as the electricity generation capacity of this

project is 3MW, which is less than the maximum qualifying capacity of 15 MW. The proposed CDM

project activity utilizes the solar energy potential for power generation and exports the generated

electricity to Southern grid in India.

As per the Appendix B of the simplified modalities and procedures for small-scale CDM project

activities, the project activity proposes to apply following project type and categories:

Sectoral Scope: 01

Project Type Energy Industries (renewable/non-renewable)

Project Category: I.D., Grid connected renewable electricity generation, Version 17

The technical details of the proposed solar PV system are summarized below:

No. Parameter Specifications

I Solar PV Plant

1 Capacity proposed 3 MW

2 Type of SPV Module S6-60, Mono/multi crystalline

3 Rating of SPV Module 225 W/240 Wp

4 PCU (Inverters) 250 kW

6 Array rating 250 kW

7 HT Transformer and switchgear for evacuation 1.25MVA for each MW

8 Number of arrays 208

9 Area required 15 acres for 3MW10 Annual energy generation 4.5 5.0 Million units

II PCU (Inverters)

Input data

1 Max PV power 250 kWp

2 DC Voltage range MPPT 450 -820 V

3 Max permissible DC Voltage 900 V

4 Max permissible DC Current 591 A

Output data

5 Nominal AC power 250 kW

6 Operating voltage grid 20% to 15% 400 V/270 V

7 Utility type 4 wire

8 Operating frequency grid 50 Hz + or 3%9 Voltage ripple PV voltage < 3%

10 Phase shift 0.99 of nominal power

11 Efficiency 93% and above

11KV Switchgear Cubicle for Grid Connection System Particulars

1 Normal System Voltage 11kV

2 Corresponding Highest System Voltage 12kV

3 Frequency 50 Hz (+3% - 5%)

4 Number of Phases 3

5 Neutral Earthing As per standards


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6 Rated Short Circuit As per standards

7 Class (indoor/outdoor) Outdoor

8 Switchgear Draw-out type

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

>>

The Project Participant has chosen the renewable crediting period of 7 years. The estimated amount of

emission reductions during the first seven-year crediting period is shown in table below:

YearsAnnual estimation of emission

reductions in tonnes of CO2 e

Year 1 4,099

Year 2 4,099

Year 3 4,099

Year 4 4,099

Year 5 4,099

Year 6 4,099

Year 7 4,099

Total estimated reductions (tonnes of CO2 e) 28,693

Total number of crediting years 7

Annual average over the crediting period of

estimated reductions (tonnes of CO2 e)4,099

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

>>

The Project Participant wishes to confirm that there is no Official Development Agency (ODA)

funding availed or available for this project activity.

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

component of a large scale project activity:

>>

In accordance with Appendix C of the Simplified Modalities and Procedures for Small-Scale CDM

project activities Determining the occurrence of debundling, it is confirmed that this project activity

is not a debundled component of a larger CDM project:

No other CDM activity has been undertaken by the project participant, which is in the same project

category and whose boundary is within 1 km of the project boundary of this project activity at the

closest point.The participant of the proposed project has not applied to register another small scale

CDM project activity within 1 KM of the proposed project boundary. Thus, the project is not a

debundled component of another 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:

>>Title: AMS-ID - Grid connected renewable electricity generation.

URL: http://cdm.unfccc.int/methodologies/DB/RSCTZ8SKT4F7N1CFDXCSA7BDQ7FU1X

Tools Used: Tool to calculate the emission factor for an electricity system, Version 02.2.0

URL: http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.2.0.pdf

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

>>

The Project activity meets all applicability condition of AMS I.D., as described below:

Methodology applicability criteria Project activity in accordance with the

applicability criteriaThis methodology comprises renewable energy

generation units, such as photovoltaic, hydro,

tidal/wave, wind, geothermal and renewable biomass:

(a) Supplying electricity to a national or a regionalgrid; or

(b) Supplying electricity to an identified consumer

facility via national/regional grid through a

contractual arrangement such as wheeling.

Applicable and Fulfilled

The project is renewable energy generation

project (Solar photovoltaic) supplying

electricity to a regional grid

This methodology is applicable to project activities

that (a) install a new power plant at a site where there

was no renewable energy power plant operating prior

to the implementation of the project activity

(Greenfield plant); (b) involve a capacity addition; (c)involve a retrofit of (an) existing plant(s); or (d)

involve a replacement of (an) existing plant(s).

Applicable and Fulfilled

The project activity is greenfield project,

which involves the installation of solar

photovoltaic plant at a site where there was

no renewable energy power plant operatingprior to implementation of project.

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 anexisting reservoir with no change in the

volume of reservoir;

The project activity is implemented in anexisting reservoir, where the volume ofreservoir 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 reservoirsand the power density of the power plant, as

per definitions given in the Project Emissions

section, is greater than 4 W/m2.

Not applicable

The project activity is not a Hydro Power

plant


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If the new unit has both renewable and non-renewable

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

limit of 15 MW for a small-scale CDM project

activity applies only to the renewable component. If

the new unit co-fires fossil fuel, the capacity of theentire unit shall not exceed the limit of 15 MW.

Not applicable

The project does not involve use of any

fossil fuels.

Combined heat and power (co-generation) systems are

not eligible under this category.

Not applicable

The project activity is not a Combined heat

and power plant

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 project

should be lower than 15 MW and should be physically

distinct from the existing units.

Not applicable

The project activity is Greenfield and there

is no existing power generation facility at

the site.

In the case of retrofit or replacement, to qualify as a

small-scale project, the total output of the retrofitted

or replacement unit shall not exceed the limit of

15 MW.

Not applicable

Project activity is neither retrofit nor

modification of existing facility. The

installed capacity of the project will be

3MWp which is lesser than the limit of 15

MW

Thus the project fulfils all the applicability criteria for the methodology and hence the same is

applied to the project.

B.3. Description of the project boundary:

>>As per Paragraph 9, AMS-I.D, Version 17 The spatial extent of the project boundary includes the

project power plant and all power plants connected physically to the electricity system that the CDM

project power plant is connected to. Hence, the spatial extent of the project boundary includes the

project site and all the power plants physically connected to the electricity system of Southern

Regional grid of India.

Measuring Point:

Energy Meters

Sub- Station

Regional Grid

End Users

Pro ect Boundar


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B.4. Description of baseline and its development:

>>

The project activity is the installation of a new grid-connected renewable power plant. Therefore, As

per AMS-ID, the baseline scenario is defined as: The electricity delivered to the grid by the project

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

the addition of new generation sources into the grid.

The power sector in India including the Southern region largely comprises thermal power stations. In

the absence of the project activity equivalent amount of electricity would have been generated from

the existing grid connected power plants and planned capacity additions which are also largely fossil

fuel based.

As per Paragraph 11, AMS I.D, The baseline emissions are the product of electrical energy baseline of

electricity produced by the renewable generating unit multiplied by the grid emission Factor

As per Paragraph 12, AMS I.D, The emission factor can be calculated in a transparent and

conservative manner as follows:

(a) A combined margin (CM), consisting of the combination of operating margin (OM) and

build margin (BM) according to the procedures prescribed in the Tool to calculate the

Emission Factor for an electricity system.;

OR

(b) The weighted average emissions (in t CO2/MWh) of the current generation mix. The data

of the year in which project generation occurs must be used.

For the purpose of this project, Option (a)has been used to determine the grid emission factor.

As per the Tool to calculate the emission factor for an electricity system (Version 02)1, the

combined margin emissions factor is calculated as follows:

EFgrid,CM,y= EFgrid,OM,yX wOM + EFgrid,BM,yX wBM

Where:

EFgrid,BM,y= Build margin CO2 emission factor for the year y (tCO2/MWh)

EFgrid,OM,y= Operating margin CO2 emission factor for the year y (tCO2/MWh)

wOM= Weighting of operating margin emission factors (%)

wBM= Weighting of build margin emission factors (%)

The tool specifies that for solar power generation project activities: wOM= 0.75 and wBM=0.25 forthe first crediting period and for subsequent crediting periods.

Operating Margin (EFgrid,OM,y)

The tool specifies that if the ex antes option is chosen, for grid power plants, use a 3-year generation-

weighted average, based on the most recent data available. Hence, Central Electricity Authority, under

the Ministry of Power, Government of India2, has estimated the operating margin of the South Grid as

follows:

1 http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.pdf

2 These values are taken from version 6.0, the most recent available data published by the Central Electricity Authority in March 2011

(CEA published data. Version 6.0, http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm)


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of PLR range was 12.75% to 13.25%3(July 2008) during the project conceptualization stage

4. The PP

derived the benchmark by considering the lowest BPLR 12.75%.

The key parameters and assumptions considered for the IRR estimations are as follows:

S.N Parameter Value Source

1 Total Installed Capacity 3 MW Detailed Project Report

2Project Cost

Rs. 621 Million Detailed Project Report

3 Grid Tariff* Rs 4.38/kWh

HERC order on fixation of tariff

for power through solar energy,

dated 25 April 20085

4 O&M Cost 0.5% of capital cost



dated 25 April 2008

5 Escalation on O & M1.5%, second year on

wards



dated 25 April 20086 PLF 17% KREDL letter

8 Total operating days 365 Detailed Project Report

9 Operating Hours 24 Detailed Project Report

10 Project Life (in Years) 25 Detailed Project Report

11 Interest on Debt 12.75% RBI PLR

12

Depreciation (SLM

Method, 90% Dep in 25

yrs)

3.60% As per Electricity Act 1948

13 Corporate Tax 30.90% As per Income tax act

Grid Tariff: The base tariff has been used in the calculation, though the Solar PV project activity areeligible to claim Generation Based Incentive (GBI), the PP has opted for accelerated depreciation

under section 32 of the Income Tax Act 1961, hence as per the MNRE eligibility criteria for GBI the

project activity would not be eligible to claim the GBI.

On the basis of above assumption, Project IRR was found to be -9.11%.

The project activity as mentioned above is a demonstration project promoted by Government of

Karnataka. The Project Participant is taking the risk of continuing with the project activity even with a

negative IRR with main aim of achieving the objective of penetration of Solar PV technology in the

state of Karnataka. CDM revenues would boost the confidence of the project participants and also the

margin of negative IRR would reduce to an extent.

Sensitivity analysis

As per Paragraph 17 of Annex 58, EB 51, Only variables, including the initial investment cost, that

constitute more than 20% of either total project costs or total project revenues should be subjected to

reasonable variation. Accordingly four parameters were chosen for conducting sensitivity analysis.

3 http://rbidocs.rbi.org.in/rdocs/Wss/PDFs/86924.pdf

4 KPCL Board approved the demonstration solar projects on 28/06/2008 allotting Rs. 750 cr per each project, based on the proposal

submitted by BHEL for a similar project.

5Available at the time of decision making, KERC had not defined tariff for Solar PV Projects.


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All the parameters chosen substantially influence the total project costs or total project revenues

associated with the project activity.

1. Plant Load Factor (PLF).2. O&M Cost3. Capital Cost4. Grid Tariff

These variables have been subjected to 10% variation on either side. A detailed discussion on

sensitivity analysis is given below.

Capital

Cost PLF O&M Cost Grid Tariff

10% -9.88% -8.33% -9.28% -8.33%

-10% -8.25% -9.96% -8.94% -9.96%

As evident from the sensitivity analysis done, the project activity even with varying conditions the

IRR works out to be negative.

Occurrences of the above situations are unrealistic atleast in the near future.Thus, it is clear that the proposed project is not a financially viable project to KPCL.

However Karnataka Government has entrusted the responsibility of developing the Solar PV plants in

the State to KPCL for the following reasons:

1. To demonstrate the technological feasibility of large scale grid connected solar PV in thecountry.

2. To demonstrate the potential of solar PV in the State so that investors are aware on thetechnology and develop interest to implement similar plants

3. As a demo project to train its employees/investors on the solar PVEnvisaging that the installation of Solar PV plants cannot even met the benchmark PLR, KPCL has

considered CDM revenue to recover its operational cost and also cost involved in training its

employees on the technology.

CDM consideration evidence:

As the start date of the project activity (i.e. 21/12/2009, Date of EPC contract) is after the date of 02

August 2008, therefore in line with Para 2, Annex 46, EB41, the project proponents have sent

intimation letter to UNFCCC about the project activity and intentions of the project proponent to

apply for registration under the Clean Development Mechanism of UNFCCC. The same is also listed

on UNFCCC web site. As per UNFCCC, the intimation letter was received by them on 21/11/20096.

Also, as per Para 6 (b), Annex 46, EB41, The project participant must indicate, by means of reliable

evidence, that continuing and real actions were taken to secure CDM status for the project in parallel

with its implementation. Given below is the chronology of events demonstrating that the project

proponent had considered CDM for the project activity and had taken real and continuing actions tosecure CDM status.

1. Board Decision to Implement the project : 28/06/20082. Tender for EPC contract (CDM Section included) : 27/07/20093. Appointment of CDM consultant : 07/11/20094. Intimation to UNFCCC : 21/11/20095. Appoint of EPC contractor : 21/12/2009 (Start date)6. Meeting with NCDMA for HCA : 07/07/2010

6 http://cdm.unfccc.int/Projects/PriorCDM/notifications/index_html


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7. HCA granted : 12/08/20108. Appointment of DOE : 28/02/20119. Date of project commissioning: : 30/09/2011 (Tentative)

As the gap between any activities is less then 2 yrs, In line with Para 8 (a), Annex 46, EB41, it can beconcluded that continuing and real actions were taken to secure CDM status for the project activity.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

>>

Baseline emissions

As per AMSID, Version 17, Paragraph 11, the baseline emissions are the product of electrical energy

baseline yBLEG , expressed in MWh of electricity produced by the renewable generating unit

multiplied by the grid emission factor.

ygridCOyBLy EFEGBE ,,, 2*=

yBE Baseline Emissions in yeary(t CO2)

yBLEG , Quantity of net electricity supplied to the grid as a result of the implementation ofthe CDM project activity in yeary (MWh)

ygridCOEF ,,2 CO2emission factor of the grid in year y (t CO2/MWh)

Calculation of ygridCOEF ,,2 As per the Tool to calculate the emission factor for an electricity system (Version 02)

7, the

combined margin emissions factor is calculated as follows:

EFgrid,CM,y= EFgrid,OM,yX wOM + EFgrid,BM,yX wBM

Where:

EFgrid,BM,y= Build margin CO2 emission factor for the year y (tCO2/MWh)

EFgrid,OM,y= Operating margin CO2 emission factor for the year y (tCO2/MWh)

wOM= Weighting of operating margin emission factors (%)

wBM= Weighting of build margin emission factors (%)

The tool specifies that for solar power generation project activities: wOM= 0.75 and wBM=0.25 for the

first crediting period and for subsequent crediting periods.

Operating Margin (EFgrid,OM,y)

The tool specifies that if the ex antes option is chosen, for grid power plants, use a 3-year generation-

weighted average, based on the most recent data available. Hence, Central Electricity Authority, under

7 http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.pdf


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the Ministry of Power, Government of India8, has estimated the operating margin of the South Grid as

follows:

Simple Operating Margin (tCO2/MWh) (incl. Imports) (1)

(2)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

NEWNE 1.03 1.02 1.01 1.00 1.01 0.98

South 1.00 1.01 1.00 0.99 0.97 0.94

India 1.02 1.02 1.01 1.00 1.01 0.98

Hence the 3-year generation-weighted average comes to 0.9690 tCO2e/MWh

Build Margin (EFgrid,BM,y)

The tool specifies that the build margin emissions factor is the generation-weighted average emission

factor. Central Electricity Authority, under the Ministry of Power, Government of India, has estimated

the operating margin of the South Grid as follows:

Build Margin (tCO2/MWh) (not adjusted for

imports)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

NEWNE 0.70 0.67 0.63 0.60 0.68 0.81

South 0.70 0.71 0.70 0.71 0.82 0.76

India 0.70 0.68 0.65 0.63 0.71 0.80

Combined Margin (EFgrid,CM,y)

Therefore, we can calculate the combined margin emission factor as,

tCO2e/MWhOperating Margin (Average of last 3 years) 0.9690

Build Margin 0.7633

Combined Margin (EFgrid,OM,yX wOM + EFgrid,BM,yX wBM ) 0.9176

Project Emission (PEy) :

As per Paragraph 19 of the methodology, Project Emissions are to be considered only in case of

geothermal and hydro projects. In the project activity there is no emissions resulting due to the project.

Hence, Project Emission (PEy) = 0

Leakage (LEy)

According to the methodology, leakage is to be considered only if the energy generating equipment is

transferred from another activity or if the existing equipment is transferred to another activity. There

is no equipment transfer involved in the project activity and hence, Leakage (LEy) = 0

Emissions Reductions (ERy) = Baseline Emissions (BEy) Project Emissions (PEy) Leakage (LEy)

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

>>

Data / Parameter: EFGrid,OM,y

8 These values are taken from version 6.0, the most recent available data published by the Central Electricity Authority in March 2011

(CEA published data. Version 6.0, http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm)


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Data unit: tCO2/MWh

Description: Operating Margin emission factor for the South grid

Source of data used: CEA published data. CO2 Baseline Database (Version 06)

Value applied: 0.969 (ex-ante approach)

Justification of the

choice of data or

description of

measurement methods

and procedures

actually applied :

OM has been calculated as per ACM0002 with 3 years vintage data (2007-

08, 2008-09 and 2009-10) and option of ex ante calculation based on

Simple Operating Margin Method.

2007-08 2008-09 2009-10

Operating Margin

(tCO2e/MWh) 0.9999 0.9700 0.9400

Generation (GWh) 496119 510693 544915

Weighted Average

OM 0.96902464

Any comment: The value has been fixed ex-ante for the entire crediting period

Data / Parameter: EFGrid,BM,y

Data unit: tCO2/MWh

Description: Build Margin emission factor for the South gridSource of data used: CEA published data. CO2 Baseline Database (Version 06)



choice of data or

description of

measurement methods

and procedures

actually applied :

The data is publicly available and is conservative and transparent.

Any comment: The value has been fixed ex-ante for the first crediting period. For the second

crediting period, the build margin emission factor would be updated based on

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

submission of the request for renewal of the crediting period. For the thirdcrediting period, the build margin emission factor calculated for the second

crediting period would be used.

Data / Parameter:ygridCOEF ,,2

Data unit: tCO2/MWh

Description: Combined Margin CO2emission factor for the South grid

Source of data used: CEA published data. CO2 Baseline Database (Version 06)



choice of data or

description of

measurement methodsand procedures

actually applied :

CM has been calculated as per ACM0002 with 3 years vintage data and option

of ex ante calculation based on 75% of OM and 25% of BM values approach.

Any comment: The value has been fixed ex-ante for the entire crediting period

B.6.3 Ex-ante calculation of emission reductions:

>>

Energy Generation

Installed Capacity MW 3

Operating Hours Hr per Annum 8760

PLF % 17%


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Gross Generation MWh 4468

Auxiallry Consumption % 0

Net Generation MWh 4468

Formula used to calculate the net emission reduction for the project activity is

ERy = BEy PEy

As explained in section B.6.1 PEy are zero. There is no GHG emission within the project boundary.

So the above equation is simplified to

ERy = BEy

Baseline Emission (BEy)

Baseline Emission are calculated by multiplying the net quantity of electricity supplied by this project

activity (EGY) with the CO2 baseline emission factor for the electricity displaced due to the project

(EFCO2 elec) as follows:

BEy = EGBL,y*EFCO2Where:

EFCO2elec , y = 0.9176 tCO2/MWh

EGBL,y = 4468 MWh/year

Putting EG and EF in above formula

ERy = 4,099 tCO2/year

The total Emission Reduction (ER) from this project activity is 4,096 tCO2/year

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

>>

Year

Estimation of

Baseline

emission

(tCO2e)

Estimati

on of

Leakages

(tCO2e)

Estimation of

Project

emission

(tCO2e)

Estimation of

project activity

emission reductions

(tCO2e)

Year 1 4,099 0 0 4,099

Year 2 4,099 0 0 4,099

Year 3 4,099 0 0 4,099

Year 4 4,099 0 0 4,099

Year 5 4,099 0 0 4,099

Year 6 4,099 0 0 4,099

Year 7 4,099 0 0 4,099

Total 28,693 0 0 28,693

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

B.7.1 Data and parameters monitored:

>>

Data / Parameter:yBLEG ,

Data unit: MWh/ Yr

Description: Net quantity of electricity exported to the grid by the project

activity during the year y. The net electricity generation would be a


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calculated value.

Source of data to be used: Joint meter statements available at project site and invoice to

GESCOM.

Value of data applied for the

purpose of calculating expected

emission reductions in section B.5

4,468

Description of measurement

methods and procedures to be

applied:

Measurement method: The net electricity exported to grid iscalculated as a difference in the total electricity exported to the

grid and total import from the grid.

Monitoring: Electrical Energy Meters which are electronic tri-vector meters Data type: Measured & Calculated

Archiving: Paper & Electronic Recording Frequency: Continuous Monitoring, Continuous

Measurement and at least monthly recording.

Responsibility: The Site Manager and Site Supervisor shall beresponsible for the regular recording of data. He is supposed to

send consolidated monthly data to Executive Engineer (GSW)Bangalore

Calibration Frequency: The meters shall be calibrated once in 3years.

QA/QC procedures to be applied: Main & Check meters will be installed at the evacuation pointin line with the CEA metering regulations

9. All the metering

equipment shall be operated, tested and maintained in

accordance with the Regulations (Installation and Operation of

Meters) 2006

Net electricity generated by project activity will be cross-checked with the electricity invoiced for sale. This is highly

credible and reliable

Any comment: Data shall be archived for the entire crediting period + 2 yearsthereafter; Refer section B.7.2 for monitoring plan

B.7.2 Description of the monitoring plan:

>>

As per AMSID, the monitoring of data revolves around the net Quantity of electricity delivered to the

grid.

Operation & Management Structure

Management Responsibility

Technical Director: Overall responsibility of compliance with the CDM monitoring plan.

Chief Engineer (GSW) 1.

Quality assurance of the data/report generated by ExecutiveEngineer.

2. Regularly verifying the monthly energy generation date withenergy sales receipt or installed meters reading for identification

of any discrepancies in date collection and taking suitable action

to rectify them.

3. Responsible for calibration of all the installed meters at leastonce in a year.

9 http://www.powermin.nic.in/whats_new/pdf/Metering_Regulations.pdf


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Executive Engineer 1. Responsibility for monthly and annual report generation.2. Quality assurance of the data/report s preliminary check of data

for any discrepancies.

Assistant Engineer/

Junior Engineer

Responsibility of daily report generation, recording meters reading in

log book, and data recording

Metering System:

yBLEG , -

Electricity supplied

to the grid

Two meters, Main & and bi-directional type, with accuracy of 0.2 class

will be installed on out inter-connection. Main meter and check meters are

owned by the GESCOM and KPCL respectively. Main meter will used for

accounting and billing of electricity.

Export and Import of electricity will be measured by both main and check

meters and net electricity from project activity computed. Difference

between Export and import is deemed as net electricity generated by

project activity. Joint reading of project participant and procuring utilities

will be taken by the project participant and off purpose.

Reading used in invoice will be considered as net electricity generated

cross-checking of net electricity generation from project activity

Meter Calibration:

Meters will be calibrated once a year to ensure the accuracy of the readings; the error margin should

not exceed 0.2%. In case the error margin exceeds the maximum permissible limit of 0.2% then the

meter would be replaced immediately. The calibration frequency is a part of the monitoring system.

This data is monitored using meters and standard testing equipment, which is regularly, calibrated

following standard industry practices.

Training

The technology supplier will be providing the required training to the site personnel and concerned

engineers about daily operation and maintenance aspects of the total project at the time of monitoring

of the project activity. The training and maintenance will ensure preventive maintenance and

operation control of the total project.

Quality assurance and quality control

The quality assurance and quality control procedures involve the process of data monitoring,

recording, maintaining and archiving, and monitoring equipment calibration. The electricity delivered

to and drawn from the grid will be monitored through Gateway meters. The data should be cross-

checked against relevant electricity sales receipts and/or records from the grid for quality control.

Calibration of Meters & Metering should be implemented according to national standards and rules

annually at least. And all the records should be documented and maintained by the project owner for

verification.

Internal audit procedures:

A Quality Assurance procedure will be undertaken every six months. An internal Audit shall be done

in order to ensure the quality of the recorded data and also to ensure that all established steps have

been properly followed.


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

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

>>

Date of completion of the baseline study and monitoring methodology: 01/07/2011

Name of person/entity determining the baseline: Karnataka Power Corporation Limited and their

CDM consultants. The contact details of CDM consultant are as follows.

Enzen Global Solutions Private Limited is the CDM consultant and not project participant of

the project activity

Name Dr. Uma Rajarathnam

Title Head-Environment Practice

Organization: Enzen Global Solutions Private Limited

Street/P.O.Box: 90, Hosur Road, Madiwala

City, State, Zip, Country Bangalore-560068, Karnataka, India

Telephone: +91 080 67123039

FAX: +91 080 67123002Mobile +91 9880345888

Email [email protected]

Website www.enzenglobal.com


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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:

>>

21/12/200910

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

>>

25 Years 00 Months11

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

Renewable crediting period has been chosen for the proposed CDM project activity.

C.2.1. Renewable crediting period

Renewable crediting period has been chosen

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

>>

01/01/2012 or Registration at UNFCCC whichever is later.

C.2.1.2. Length of the first crediting period:

>>

7 Years 00 Months

C.2.2. Fixed crediting period:

Not opted for

C.2.2.1. Starting date:

>>

Not Applicable

C.2.2.2. Length:

>>

Not Applicable

10 Letter of Award for supply of Solar power unit issued to M/s. BHEL

11 As per the Tool to determine the remaining lifetime of equipment (EB50 Annex 15)


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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:>>

Ministry of Environment and Forest i.e. Government of India vide their notification S.O 1533, 14th

November 200612

, does not require any Environment Impact Assessment (EIA) of solar PV power

projects.

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:

>>

The project does not fall under the purview of the Environmental Impact Assessment (EIA)

notification of the Ministry of Environment and Forest, Government of India. Hence the

Environmental Impact Assessment study was not conducted by the Project Participant.

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


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SECTION E. Stakeholders comments

>>

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

>>As per the requirements of the CDM, KPCL had organized a formal stakeholder meeting on 22 Jan

2010.The venue, date and time of the meeting were published in a local daily English newspaper

(Deccan Herald) dated 01/01/2010. The meeting comprised of 70 attendees. Comments have been

compiled and the signatures of all present were taken.

The minutes of meeting and evidence of stakeholder notice will be submitted to DOE during

validation.

E.2. Summary of the comments received:

>>

Mr. Eeresh, a resident of Yapaladinni village said that the erratic power supply at the region has

effected the irrigation practice and said power cut during night effects the study of children at the

region. He also said 6hrs supply of power as they are doing now is not enough to meet the irrigation

demand. He asked for the clarifications on the following:

1. Whether the power generated by the 3 MW solar PV is only for Yapaladinni village orwill it be supplied to others also.

2. Is the power is distributed free of cost to farmers?3. The feeling of the people is that 3 MW is not enough to meet the present irrigation

demand

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

>>

KPCL officials clarified that the SPV project is meant to improve the quality of power at the tail end

of the grid. The power generated is connected to the grid and then it is distributed. The power is soldto distribution agencies (GESCOM). This is purely a demonstration project of KPCL and in future

KPCL will continue its efforts to generate power using renewable energy which has less impact on the

environment.

None of the concerns expressed by the stakeholders required an action to be taken by the KPCL.


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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Karnataka Power Corporation Limited

Street/P.O.Box: ---

Building: Sudarshan Complex, 3RD

Floor,

City: No.22/23, Sheshadri Road,

State/Region: Bangalore

Postfix/ZIP: 560 009

Country: India

Telephone: 080 -22258431

FAX: 080 -22258431

E-Mail: -

URL: www.karnatakapower.com

Represented by: -

Title: Chief Engineer

Salutation: -

Last Name: Ramesh

Middle Name: -

First Name: S

Department: EI & TA

Mobile: -

Direct FAX: 080 -22258431

Direct tel: 080 -22258431

Personal E-Mail: [email protected]; [email protected]


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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

There is no public funding invested for this project


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Annex 3

BASELINE INFORMATION

Source: CEA published data. Version 6.0,

(http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm)

CENTRAL ELECTRICITY AUTHORITY: CO2

BASELINE DATABASE

VERSION 6.0

DATE Mar-11

BASELINE

METHODOLOGY ACM0002

Simple Operating Margin (tCO2/MWh) (incl. Imports) (1)

(2)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10NEWNE 1.03 1.02 1.01 1.00 1.01 0.98

South 1.00 1.01 1.00 0.99 0.97 0.94

India 1.02 1.02 1.01 1.00 1.01 0.98

Build Margin (tCO2/MWh) (not adjusted for

imports)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

NEWNE 0.70 0.67 0.63 0.60 0.68 0.81

South 0.70 0.71 0.70 0.71 0.82 0.76

India 0.70 0.68 0.65 0.63 0.71 0.80

Combined Margin in tCO2/MWh (incl.Imports) (1) (2)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

NEWNE 0.87 0.85 0.82 0.80 0.84 0.90

South 0.85 0.86 0.85 0.85 0.90 0.85

India 0.86 0.85 0.83 0.81 0.86 0.89


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Annex 4

MONITORING INFORMATION

Refer to section B.7

- - - - -- - - - -

Documents

Grid Connected 3MWp Solar PV Power Plant at Raichur District of Karnataka State, India