Proj Desc 1768 29may2018 PDF
Proj Desc 1768 29may2018 PDF
Proj Desc 1768 29may2018 PDF
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Table of Contents
1. Project Details ........................................................................................................................ 3
1.1 Summary Description of the Project and its Implementation Status ............................. 3
1.2 Sectoral Scope and Project Type ................................................................................. 4
1.3 Project Proponent ........................................................................................................ 4
1.4 Other Entities Involved in the Project ........................................................................... 4
1.5 Project Start Date......................................................................................................... 4
1.6 Project Crediting Period ............................................................................................... 4
1.7 Project Scale and Estimated GHG Emission Reductions or Removals ........................ 4
1.8 Description of the Project Activity ................................................................................. 5
1.9 Project Location ........................................................................................................... 6
1.10 Conditions Prior to Project Initiation .......................................................................... 7
1.11 Compliance with Laws, Statutes and Other Regulatory Frameworks ........................ 7
1.12 Ownership and Other Programs ............................................................................... 8
1.12.1 Project Ownership ............................................................................................. 8
1.12.2 Emissions Trading Programs and Other Binding Limits ..................................... 8
1.12.3 Other Forms of Environmental Credit ................................................................ 8
1.12.4 Participation under Other GHG Programs ......................................................... 8
1.12.5 Projects Rejected by Other GHG Programs ...................................................... 8
1.13 Additional Information Relevant to the Project .......................................................... 8
2 Application of Methodology ................................................................................................ 9
2.1 Title and Reference of Methodology ............................................................................ 9
2.2 Applicability of Methodology......................................................................................... 9
2.3 Project Boundary ........................................................................................................12
2.4 Baseline Scenario .......................................................................................................13
2.5 Additionality ................................................................................................................14
2.6 Methodology Deviations ..............................................................................................19
3 ESTIMATed GHG Emission Reductions and Removals ....................................................19
3.1 Baseline Emissions .....................................................................................................19
3.2 Project Emissions .......................................................................................................22
3.3 Leakage ......................................................................................................................22
3.4 Estimated Net GHG Emission Reductions and Removals ...........................................23
4 Monitoring .........................................................................................................................23
4.1 Data and Parameters Available at Validation ..............................................................23
4.2 Data and Parameters Monitored .................................................................................24
4.3 Monitoring Plan ...........................................................................................................25
5 Safeguards ........................................................................................................................28
5.1 No Net Harm ...............................................................................................................28
5.2 Environmental Impact .................................................................................................28
5.3 Local Stakeholder Consultation...................................................................................28
5.4 Public Comments ........................................................................................................29
6 Achieved GHG Emission Reductions and Removals .........................................................29
6.1 Data and Parameters Monitored .................................................................................29
6.2 Baseline Emissions .....................................................................................................29
6.3 Project Emissions .......................................................................................................30
6.4 Leakage ......................................................................................................................30
6.5 Net GHG Emission Reductions and Removals ...........................................................30
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1. PROJECT DETAILS
The main purpose of this project activity is to generate clean form of electricity through renewable solar
energy source for sale of electricity to the grid. Kamuthi Solar Power Limited (KSPL) is the promoter of
the proposed project activity and is the holding company of both the project investors in this project
activity.
The project activity involves installation of 216 MW ac (corresponding 261 MWp) solar power project in
Tamil Nadu. The project will replace anthropogenic emissions of greenhouse gases (GHG’s) estimated to
be approximately 3,46,117 tCO2e per year, thereon displacing 3,58,559 MWh/year amount of electricity
from the generation-mix of power plants connected to the Indian electricity grid, which is mainly
dominated by thermal/fossil fuel based power plant. Total estimated GHG emission reductions for the
chosen 10 year renewable crediting period will be 34,61,169 tonnes of CO2.
The monitoring period is from 18-Sept-2016 to 31-March-2018. The total GHG emission reductions or
removals generated in this monitoring period are 5,63,810 tCO2.
In this process there is no consumption of any fossil fuel and hence the project does not lead to any
greenhouse gas emissions. Thus, electricity would be generated through sustainable means without
causing any negative impact on the environment.
The details of the project are mentioned in the table:
Commissioning Capacity in
Project Investors’ Name Location (Village/State)
Date MWAC/ MWp
O. Karisalkulam Village,
Kamuthi Solar Power Limited 18/09/2016 216/261 Ramanathpuram Dist.,
Tamil Nadu
Baseline Scenario:
As per the applicable methodology, a Greenfield power plant is defined as “a new renewable energy
power plant that is constructed and operated at a site where no renewable energy power plant was
operated prior to the implementation of the project activity”.
As the project activity falls under the definition of a Greenfield power plant, the baseline scenario as per
paragraph 24 of Section 5.2.1 of applied methodology is the following:
If the project activity is the installation of a Greenfield power plant, the baseline scenario is 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, as reflected in the combined
margin (CM) calculations described in the “Tool to calculate the emission factor for an electricity system”.
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The project activity falls under the following Sectoral scope and Project Type:
The project start date is the date on which Solar Panels were commissioned under the Project activity.
The project activity adopts renewable crediting period of 10 years period which can be renewed for 2
times.
Project Scale
Project
Large project √
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As the estimated annual average GHG emission reductions or removal per year is 364,029 tCO2e which
is greater than 300,000 tonnes of CO2e per year, thus the project falls in the category of Large Project.
The proposed project activity involves the installation of Solar Power Project. The total installed capacity
of the project is 216 MW. The project is promoted by Kamuthi Solar Power Limited.
The project activity aims to harness solar energy through installation of PV. The solar PV power plant will
have solar PV modules, inverters, transformers and other protection system and supporting components
as under:
The Project activity is a new facility (Greenfield) and the electricity generated by the Project will be
exported to the Indian Grid. The Project will therefore displace an equivalent amount of electricity which
would have otherwise been generated by fossil fuel dominant electricity grid. The Project Proponent plans
to avail the VCS benefits for the Project.
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In the Pre- project scenario the equivalent amount of electricity, either fetched (under captive cases) or
delivered to the grid by the project activity, would have otherwise been generated by the operation of grid-
connected fossil fuel based power plants and by the addition of new generation sources.
The project shall result in replacing anthropogenic emissions of greenhouse gases (GHG’s) estimated to
be approximately 3,48,674 tCO2e per year, thereon displacing 3,61,246 MWh/year amount of electricity
from the gird.
Inverters
Make ABB
Model PV800
Rated Capacity 1000 KW
No. of Inverters 216
Rated Input Voltage 380
Transformers
Make ABB Schneider
Capacity 120 MVA 4 MVA
No. of Transformers 2 54
Voltage Ratio 33/230 380/33
The proposed 216MW AC solar PV Plant site is located near Kamuthi village of Ramathapuram district, in
the Indian state of Tamil Nadu. The site is well connected by state highway state highway (SH) 47 up to
Arruppukottai and further national highway NH48 connects to Madurai.
The site lies around the coordinates- 9° 21' 33.78"N, 78° 23' 6.65"E and at an altitude of approximately
30m, above mean sea level.
The nearest commercial city remains Madurai, which is approximately 90km from the Project site location.
The site wise preferred route from Madurai to the Project site location details of the project is given below
in the Figure:
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The project is a Greenfield solar power project and does not involve generation of GHG emissions for the
purpose of their subsequent reduction, removal or destruction. Prior to the initiation of the project activity,
the equivalent amount of electricity would have been drawn from grid connected or new power plants, in
Indian Grid. The grid is predominantly coal based and therefore is a major source of carbon di oxide
emissions in India. The main emission in the pre project scenario is the power plants connected to the
Indian Grid, and main GHG involved is CO2. The baseline identified in section 2.4 is same as the pre-
project scenario
The Project has received necessary approvals for development and commissioning for solar project from
the state Nodal agencies and is in compliance to the local laws and regulations.
The relevant national laws and regulations pertaining to generation of energy in India are:
• Electricity Act 2003
• National Electricity Policy 2005
• Tariff Policy 2006
The Project activity conforms to all the applicable laws and regulations in India:
• Power generation using solar energy is not a legal requirement or a mandatory option.
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• There are state and sectoral policies, framed primarily to encourage solar power projects. These
policies have also been drafted realizing the extent of risks involved in the projects and to attract
private investments.
• The Indian Electricity Act, 2003 (May 2007 Amendment) does not influence the choice of fuel used for
power generation.
• There is no legal requirement on the choice of a particular technology for power generation
The Project is owned by Kamuthi Solar Power Limited, hence it possess right of use of ER credits. The
Ownership is demonstrated through the following documents.
1) Commissioning certificates for 216 MW Solar PV in the name of Kamuthi Solar Power Limited
issued by respective state nodal agencies /authorities of the state Tamil Nadu of India.
2) Power Purchase Agreement with Tamil Nadu Electricity Board for sale of electricity by the
Kamuthi Solar Power Limited.
Net GHG emission reductions or removals generated by the Project will not be used for compliance
with an emissions trading program or to meet binding limits on GHG emissions in any Emission Trading
program or other binding limits.
The Project has no intend to generate any other form of GHG-related environmental credit for GHG
emission reductions or removals claimed under the VCS Program.
The project has applied under CDM mechanism and is currently under development.
Eligibility Criteria
This is not a grouped project activity. Thus, this section is not applicable for this project.
Leakage Management
Not applicable to the project activity
Sustainable Development
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Ministry of Environment and Forests, has stipulated economic, social, environment and
technological well-being as the four indicators of sustainable development. The project
contributes to sustainable development using the following ways.
• Social well-being: The project would help in generating employment opportunities during the
construction and operation phases. The project activity will lead to development in
infrastructure in the region like development of roads and also may promote business with
improved power generation.
• Economic well-being: The project is a clean technology investment in the region, which
would not have been taken place in the absence of the VCS benefits the project activity will
also help to reduce the demand supply gap in the state. The project activity will generate
power using zero emissions solar based power generation which helps to reduce GHG
emissions and specific pollutants like SOx, NOx, and SPM associated with the conventional
thermal power generation facilities.
• Technological well-being: The successful operation of project activity would lead to
promotion of solar based power generation and would encourage other entrepreneurs to
participate in similar projects
• Environmental well-being: Solar being a renewable source of energy, it reduces the
dependence on fossil fuels and conserves natural resources which are on the verge of
depletion. Due to its zero emission the Project activity also helps in avoiding significant
amount of GHG emissions
Further Information
Not Applicable
2 APPLICATION OF METHODOLOGY
Reference : The project activity meets the eligibility criteria of large scale project as it is more than
15 MW
Tools referred with above methodology and applicable for project activity are:
• Tool to calculate the emission factor for an electricity system - Version 06.0 (EB 97, Annex 07) 3
• Methodological Tool- Tool for the demonstration and assessment of additionality - Version 07.0.0 (EB
70, Annex 08) 4
The project activity involves generation of grid connected electricity from renewable solar energy. The
project activity has a proposed capacity of 216 MW which will qualify for a large scale CDM project activity
under Type-I of the large scale methodologies. The project status is corresponding to the methodology
ACM0002 version 18.1 and applicability of methodology are discussed below.
2
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4
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project activity;
(iii) Installed capacity of the power plant(s) with power
density lower than or equal to 4 W/m2 shall be:
a. Lower than or equal to 15 MW; and
b. Less than 10 per cent of the total installed
capacity of integrated hydro power project
4. In the case of integrated hydro power projects, The project is solar power project and thus
project proponent shall: the criterion is not applicable to this project
activity.
5. Demonstrate that water flow from upstream power The project is solar power project and thus
plants/units spill directly to the downstream reservoir the criterion is not applicable to this project
and that collectively constitute to the generation activity.
capacity of the integrated hydro power project; or
6. Provide an analysis of the water balance covering the The project is solar power project and thus
water fed to power units, with all possible the criterion is not applicable to this project
combinations of reservoirs and without the activity.
construction of reservoirs. The purpose of water
balance is to demonstrate the requirement of specific
combination of reservoirs constructed under CDM
project activity for the optimization of power output.
This demonstration has to be carried out in the
specific scenario of water availability in different
seasons to optimize the water flow at the inlet of
power units. Therefore this water balance will take
into account seasonal flows from river, tributaries (if
any), and rainfall for minimum five years prior to
implementation of CDM project activity.
7. The methodology is not applicable to: (a) The project activity is Greenfield and
(a) Project activities that involve switching from fossil there is no switching of fossil fuel to
fuels to renewable energy sources at the site of the renewable energy. Hence the criteria is
project activity, since in this case the baseline may not applicable to the project activity
be the continued use of fossil fuels at the site; (b) The project is not a biomass fired power
(b) Biomass fired power plants/units plant. Hence the criteria is not applicable
to the project activity
8. In the case of retrofits, rehabilitations, replacements, Not applicable, the solar project is a Green
or capacity additions, this methodology is only field project activity and this project is not the
applicable if the most plausible baseline scenario, as enhancement or up gradation project.
a result of the identification of baseline scenario, is
“the continuation of the current situation, that is to
use the power generation equipment that was
already in use prior to the implementation of the
project activity and undertaking business as usual
maintenance.
9. In addition, the applicability conditions included in the Please refer tables below.
tools referred to below apply.
Tool to calculate the emission factor for an electricity system9 - Version 06.0 (EB 97, Annex 07)
Applicability Criterion Project Case
This tool may be applied to estimate the OM, BM and/or The project is a grid connected Greenfield
CM when calculating baseline emissions for a project solar power project and thus the tool is
activity that substitutes grid electricity that is where a applicable.
project activity supplies electricity to a grid or a project
activity that results in savings of electricity that would
have been provided by the grid (e.g. demand-side
energy efficiency projects).
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Under this tool, the emission factor for the project Steps involved in calculation of Emission
electricity system can be calculated either for grid power Factor are included in section B.6.3 of the
plants only or, as an option, can include off-grid power PDD as per the requirement of the tool.
plants. In the latter case, two sub-options under the step
2 of the tool are available to the project participants, i.e.
option II.a and option II.b. If option II.a is chosen, the
conditions specified in “Appendix 2: Procedures related
to off-grid power generation” should be met. Namely, the
total capacity of off-grid power plants (in MW) should be
at least 10 per cent of the total capacity of grid power
plants in the electricity system; or the total electricity
generation by off-grid power plants (in MWh) should be
at least 10 per cent of the total electricity generation by
grid power plants in the electricity system; and that
factors which negatively affect the reliability and stability
of the grid are primarily due to constraints in generation
and not to other aspects such as transmission capacity.
In case of CDM projects the tool is not applicable if the Project is located in non-Annex I country and
project electricity system is located partially or totally in hence the tool is applicable.
an Annex I country.
Under this tool, the value applied to the CO2 emission The project is a solar project and there is no
factor of bio fuels is zero. involvement of bio fuels.
Methodological Tool- Tool for the demonstration and assessment of additionality- Version 07.0.0 (EB 70,
Annex 08)
The project activity qualifies as Type I during every year of the crediting period in accordance with
applicable provisions for project activity eligibility as discussed above. Also the total installed capacity of
project activity is 216 MW which is applicable as per large scale project activities methodology ACM0002:
Grid-connected electricity generation from renewable sources Version 18.0. The project capacity will be
always remain the same and hence the project activity will always be large scale project activities
throughout the crediting period and thereafter.
As per ACM0002 version 18 - “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”.
The project boundary includes the solar project, sub-stations, grid and all power plants connected to grid.
The proposed project activity will evacuate power to the Indian grid. Therefore the entire Indian grid and
all connected power plants have been considered in the project boundary for the proposed VCS project
activity.
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As per the approved consolidated methodology ACM0002, if the project activity is the installation of a new
grid-connected renewable power plant/unit, the baseline scenario is the following:
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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, as reflected in
the combined margin (CM) calculations described in the “Tool to calculate the emission factor for an
electricity system”
The project activity involves setting up of solar projects to harness the power of sun to produce electricity
and supply to the grid. In the absence of the project activity, the equivalent amount of power would have
been supplied by the Indian grid, which is fed mainly by fossil fuel fired plants.
In the absence of the project activity, the equivalent amount of power would have been drawn from the
Indian grid. Hence, the baseline for the project activity is the equivalent amount of power from the Indian
grid.
The combined margin (EFgrid,CM,y) is the result of a weighted average of two emission factor pertaining to
the electricity system: the operating margin (OM) (having weightage 75%) and build margin (BM) (having
weightage 25%). Calculations for this combined margin must be based on data from an official source 5
(where available) and made publically available.
The combined margin of the Indian grid used for the project activity is as follows:
EFgrid,CM,y 0.9653 Combined margin CO2 Calculated as the weighted average of the
tCO2/MWh emission factor for the operating margin (0.75) & build margin
project electricity system in (0.25) values, sourced from Baseline CO2
year y Emission Database, Version 12 published
by Central Electricity Authority (CEA),
Government of India
EFgrid,OM,y 0.9843 Operating margin CO2 Calculated as the last 3 year ( 2013-14,
tCO2/MWh emission factor for the 2014-15 & 2015-16) generation-weighted
project electricity system in average, sourced from Baseline CO2
year y Emission Database, Version 12, published
by Central Electricity Authority (CEA),
Government of India
EFgrid,BM,y 0.9083 Build margin CO2 Baseline CO2 Emission Database, Version
tCO2/MWh emission factor for the 12, published by Central Electricity
project electricity system in Authority (CEA), Government of India
year y
2.5 Additionality
The additionality of the proposed project activity is demonstrated using an investment analysis as
according to the steps described in the ‘Tool for the demonstration and assessment of additionality’
(version 07.0.0).
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This step is not applied to the project activity since it is not first-of-its-kind, hence the additionality of the
project will be demonstrated in next steps below.
Step1. Identification of alternatives to the proposed project activity consistent with current laws
and regulations
As per the applied methodology ACM0002 version 18.1; Para 22, if the project activity is the installation of
a Greenfield power plant, the baseline scenario is electricity delivered to the grid by the project activity
would have otherwise been generated by the operation of grid connected power plant and by the addition
of new generation sources.
As the baseline scenario is prescribed by applied methodology, hence no further analysis is carried out to
identify alternatives.
The project will generate revenues from sale of electricity, therefore Option I is not applicable. Option II
also does not apply since there is no comparable investment alternative available to the project
participant. The most appropriate financial analysis method is therefore option III: the benchmark
analysis, where the returns on investment in the project activity are compared to benchmark returns that
are available to any investors in the country.
As per Para 12 of EB62, Annex 5 states that Required/expected returns on equity are appropriate
benchmarks for an equity IRR. Therefore, the Expected return on equity is considered appropriate
benchmark.
Accordingly, the post-tax Equity IRR has been considered as the relevant financial indicator for
Investment Analysis.
Appendix A in EB62, Annex 5 specifies default value of expected return on equity in real terms for Energy
Industries (Group 1) in India = 11.75%
The Required return on equity (benchmark) was computed in the following manner:
Nominal Benchmark = {(1+Real Benchmark)*(1+Inflation rate)}-1
Where:
• Default value for Real Benchmark = 11.75% (as per Appendix of EB62, Annex 5)
• Inflation Rate forecast for by Reserve Bank of India (RBI) (i.e. Central Bank of India)
Benchmark estimation:
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Appendix A in EB62, Annex 5 specifies default value of expected return on equity in real terms for Energy
Industries (Group 1) in India = 11.75%
As a conservative approach, benchmark of 17.34% has been selected for this project activity.
Sub-step 2c: Calculation and comparison of financial indicators (only applicable to Options II and
III):
Project Participants’ Name Equity IRR without CDM Benchmark (Equity IRR)
Kamuthi Solar Power Limited 10.67% 17.34%
The proposed project activity cannot be considered as financially attractive as the equity IRR for
the project activity is less than the Benchmark.
The rationale of sensitivity is, "The ultimate objective of the sensitivity analysis is to determine the
likelihood of the occurrence of a scenario other than the scenario presented, in order to provide a cross-
check on the suitability of the assumptions used in the development of the investment analysis."
The results of sensitivity analysis show that even with a variation of +10% & -10% in project cost, O&M
cost, PLF and Tariff Rate Equity IRR is significantly lower than the benchmark. And it is evident from the
results given above; the project remains additional even under the most favourable conditions.
6http://cdm.unfccc.int/EB/048/eb48_repan11.pdf
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Variation in PLF of more than 10% is unlikely to happen as the PLF has been reported as per the Third
Party Report based.
Sensitivity Parameter 2 : O&M
The sensitivity analysis reveals that O&M will breach the benchmark at negative values and is
hypothetical case. Since the O&M cost is subject to escalation and also subject to inflationary pressure,
any reduction in the O&M costs is highly unlikely. Hence, the reduction in the O&M cost is highly
unlikely.
Sensitivity Parameter 3 : Project Cost
Estimated Project Cost for financial analysis is considered as available at the time of decision making.
However, even if we consider the actual cost of the project even then the benchmark is not breached.
Moreover the Sensitivity is carried out for +/-10%.
Sensitivity Parameter 4 : Tariff Rate
The tariff is determined by PPA which is fixed for the entire project life of 25 years. Hence, there is no
probability to get variation for the same.
Outcome of Step 2:
This substantiates that the investment is not financially attractive (Equity IRR for the project activity is less
than the Benchmark Equity IRR) for any of the investor. Thus it can be easily concluded that project
activity is additional & is not business as usual scenario.
Stepwise approach for common practice analysis has been carried out as per Methodological tool
“Common Practice”, version 03.1 EB84, Annex 7:
Step (1):calculate applicable capacity or output range as +/-50% of the total design capacity or output of
the proposed project activity.
Range Capacity Unit
+50% 324 MW
Capacity of the proposed project activity 216 MW
-50% 108 MW
Step (2): identify similar projects (both CDM and non-CDM) which fulfil all of the following conditions:
• The projects are located in the applicable geographical area;
• The projects apply the same measure as the proposed project activity;
• The projects use the same energy source/fuel and feedstock as the proposed project activity, if a
technology switch measure is implemented by the proposed project activity;
• The plants in which the projects are implemented produce goods or services with comparable quality,
properties and applications areas (e.g. clinker) as the proposed project plant;
• The capacity or output of the projects is within the applicable capacity or output range calculated in
Step 1;
• The projects started commercial operation before the project design document (CDM-PDD) is
published for global stakeholder consultation or before the start date of proposed project activity,
whichever is earlier for the proposed project activity.
Identification of the similar projects (CDM and non-CDM) is carried out as per sub-steps of Step (2) as
follows:
• As the project is located in Tamil Nadu state of India, therefore, projects in the geographical area of
Tamil Nadu have been chosen for analysis.
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• The project activity is a green-field solar power project and uses measure (b) “Switch of technology
with or without change of energy source including energy efficiency improvement as well as use of
renewable energies”. Therefore, projects applying same measure (b) are candidates for similar
projects.
• The energy source used by the project activity is solar. Hence, only solar energy projects have been
considered for analysis.
• The project activity produces electricity; therefore, all power plants that produce electricity are
candidates for similar projects.
• The capacity range of the projects is within the applicable capacity range from 108 MW to 324 MW.
• The start date of the project activity is 18-Sep-2016, i.e. the earliest Purchase Order Date. Therefore
projects, which have started commercial operation before 18-Sep-2016, have been considered for
analysis.
Nsolar = 0
Step (3): Within the projects identified in Step 2, identify those that are neither registered CDM project
activities, project activities submitted for registration, nor project activities undergoing validation. Note
their number Nall.
CDM project activities, which have got registered or are under validation have been excluded in this step.
The list of the power plants identified is provided to the DOE. After excluding the registered and under
validation projects the total number of projects,
Nall = 0
Step (4): Within similar projects identified in Step 3, identify those that apply technologies that are
different to the technology applied in the proposed project activity. Note their number Ndiff.
As per the tool on Common Practice, the project activities have been separated from the different
technologies on the basis of Investment climate on the date of the investment decision.
Hence, projects where this condition is satisfied projects are counted for calculating Ndiff projects.
Ndiff = 0
Step (5): Calculate factor F=1-Ndiff/Nall representing the share of similar projects (penetration rate of the
measure/technology) using a measure/technology similar to the measure/technology used in the
proposed project activity that deliver the same output or capacity as the proposed project activity.
Calculate:
F = 1-Ndiff/Nall
F = 1-(0/0) = Undefined
Outcome of Step 4:
As,
i. F = 0; is not less than 0.2
ii. Nall - Ndiff = 0; is less than 3
As the project activity does not satisfy condition (i) and (ii) both, the proposed project activity is not a
“common practice” within a sector in the applicable geographical area.
The above discussions show that solar power development is not a common practice and the project
activity is not financially attractive; hence the project activity is additional.
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Not applicable.
As per the approved consolidated Methodology ACM0002 (Version 18.1) para 42, Baseline emissions
include only CO2 emissions from electricity generation in fossil fuel fired power plants that are displaced
due to the project activity. The methodology assumes that all project electricity generation above baseline
levels would have been generated by existing grid-connected power plants and the addition of new grid-
connected power plants. The baseline emissions are to be calculated as follows:
Where:
• BEy = Baseline emissions in year y (tCO2)
• EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result of the
implementation of the GS VER project activity in year y (MWh/yr)
• EFgrid,CM,y = Combined Margin CO2 emission factor for grid connected power generation in year y,
calculated using the latest version of the “Tool to calculate the emission factor for an electricity
system” (tCO2/MWh).
Option (a) has been considered to calculate the grid emission factor as per the ‘Tool to calculate the
emission factor for an electricity system’ since data is available from an official source.
CO2 Baseline Database for the Indian Power Sector, Version 12, November 2017 7, published by Central
Electricity Authority (CEA), Government of India has been used for the calculation of emission reduction.
As per Methodological tool: Tool to calculate the emission factor for an electricity system (Version 06.0,
EB 97, Annex 7), following six steps have been followed:
7
http://www.cea.nic.in/reports/others/thermal/tpece/cdm_co2/user_guide_ver12.pdf
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As described in tool “For determining the electricity emission factors, identify the relevant project
electricity system. Similarly, identify any connected electricity systems.” It also states that “If the DNA of
the host country has published a delineation of the project electricity system and connected electricity
systems, these delineations should be used.” Keeping this into consideration, the Central Electricity
Authority (CEA), Government of India has divided the Indian Power Sector into five regional grids viz.
Northern, Eastern, Western, North-eastern and Southern. However, all the 5 zones have now been
synchronized and called as Indian Grid.
Step 2: Choose whether to include off-grid power plants in the project electricity system (optional)
Project participants may choose between the following two options to calculate the operating margin and
build margin emission factor:
Option I:
Only grid power plants are included in the calculation.
Option II:
Both grid power plants and off-grid power plants are included in the calculation.
The Project Participant has chosen only grid power plants in the calculation.
The data required to calculate Simple adjusted OM and Dispatch data analysis OM is not possible due to
lack of availability of data to project developers. The choice of other two options for calculating operating
margin emission factor depends on generation of electricity from low-cost/ must-run sources. In the
context of the methodology low cost/mustrun resources typically include hydro, geothermal, wind, low
cost biomass, nuclear and solar generation.
The above data clearly shows that the percentage of total grid generation by low-cost/ must-run plants
(on the basis of average of five most recent years) for the Indian grid is less than 50 % of the total
generation. Thus the Average OM method cannot be applied, as low cost/must run resources constitute
less than 50% of total grid generation.
The simple OM emission factor is calculated as the generation-weighted average CO2 emissions per unit
net electricity generation (t CO2/MWh) of all generating power plants serving the system, not including
low-cost/must-run power plants/units.
For the simple OM, the simple adjusted OM and the average OM, the emissions factor can be calculated
using either of the two following data vintages:
(a) Ex ante option: if the ex ante option is chosen, the emission factor is determined once at the
validation stage, thus no monitoring and recalculation of the emissions factor during the crediting
period is required.
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OR
(b) Ex post option: if the ex post option is chosen, the emission factor is determined for the year in
which the project activity displaces grid electricity, requiring the emissions factor to be updated
annually during monitoring.
PP has chosen ex-ante option for calculation of Simple OM emission factor using a 3-year generation-
weighted average, based on the most recent data available at the time of submission of the CDM-PDD to
the DOE for validation.
OM determined at validation stage will be the same throughout the crediting period. There will be no
requirement to monitor & recalculate the emission factor during the crediting period.
Step 4: Calculate the operating margin emission factor(EFgrid,OMSimple,y) according to the selected
method
The operating margin emission factor has been calculated using a 3 year data vintage:
In terms of vintage of data, project participants can choose between one of the following two options:
(a) Option 1 - for the first crediting period, calculate the build margin emission factor ex ante based on the
most recent information available on units already built for sample group m at the time of CDM-PDD
submission to the DOE for validation. For the second crediting period, the build margin emission factor
should 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 to the DOE. For the third crediting period, the
build margin emission factor calculated for the second crediting period should be used. This option does
not require monitoring the emission factor during the crediting period.
(b) Option 2 - For the first crediting period, the build margin emission factor shall be updated annually, ex
post, including those units built up to the year of registration of the project activity or, if information up to
the year of registration is not yet available, including those units built up to the latest year for which
information is available. For the second crediting period, the build margin emissions factor shall be
calculated ex ante, as described in Option 1 above. For the third crediting period, the build margin
emission factor calculated for the second crediting period should be used.
Option 1 as described above is chosen by PP to calculate the build margin emission factor for the project
activity. BM is calculated ex-ante based on the most recent information available at the time of
submission of PDD and is fixed for the entire crediting period.
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The calculation of the combined margin (CM) emission factor (EFgrid,CM,y) is based on one of the following
methods:
(a) Weighted average CM; or
(b) Simplified CM.
PP has chosen option (a) i.e., weighted average CM to calculate the combined margin emission factor for
the project activity.
Where:
EFgrid,BM,y = Build margin CO2 emission factor in year y (t CO2/MWh)
EFgrid,OM,y = Operating margin CO2 emission factor in year y (t CO2/MWh)
wOM = Weighting of operating margin emissions factor (per cent)
wBM = Weighting of build margin emissions factor (per cent)
The baseline emission factor is calculated using the combined margin approach as described in Step 6
above:
Project Emissions
For most renewable power generation projects activities PEy =0. As per applied methodology only
emission associated with the fossil fuel combustion, emission from operation of geo-thermal power plants
due to release of non-condensable gases, emission from water reservoir of Hydro should be accounted
for the project emission. Since the project activity is a solar power project,
Hence PEy= 0
3.3 Leakage
Leakage Emissions: As per ACM0002 no Leakage emissions are considered. The main emission
potentially giving rise to leakage in the context of electrical sector projects is emission arising due to
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activities arising such as power plant construction and upstream emission from fossil fuel use (e.g.
extraction, processing, and transport). These emission sources are neglected.
Hence, LEy= 0
As per methodology ACM0002 (version 18.0) net GHG emission reductions are calculated as follows:
4 MONITORING
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The Net electricity supplied to the grid by the project activity will be
calculated as a difference of electricity exported to the grid,
electricity imported from the grid obtained from joint meter reading
certificates/credit notes issued by Ramnad Electricity Distribution
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Cross Checking:
Quantity of net electricity supplied to the grid will be cross checked
from the invoices raised by the project participant to the grid.
Frequency of Monthly
monitoring/recording
Value applied: 3,58,559
Monitoring equipment The two parameters, import and export to the grid, are measured
at the same location near the connection to the grid, through
standard electricity metering instrument.
Aim of monitoring:
The monitoring methodology specified in the methodology requires that the project-monitoring plan to
consist of monitoring of quantity of net electricity supplied to the grid in the year y. In order to monitor the
mitigation of GHG due to the project activity, the total energy exported needs to be measured. The net
energy supplied to grid by the project activity multiplied by emission factor for regional grid, would form
the baseline for the project activity.
Since the baseline emission factor is based on an ex-ante determination, monitoring of this parameter is
not required. The sole parameter for monitoring is the net electricity exported to the grid.
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The authority and responsibility for registration, monitoring, measurement, reporting and reviewing of the
data rests with the project proponent. PP proposed the following structure for data monitoring, collection,
data archiving and calibration of equipments for this project activity. The team comprises of the following
members:
Responsibilities of O & M Head: Overall functioning and maintenance of the project activity and overall
responsibility of compliance with the CDM Monitoring Plan.
Responsibilities of Plant In-charge: Responsibility for Maintains the data records, ensures
completeness of data, and reliability of data. Regularly verifying the monthly energy generation date with
energy sales receipt or installed meters reading for identification of any discrepancies in data collection
and taking suitable action to rectify them.
QA/QC procedures: The energy meters at the feeders are maintained and owned by Tamil Nadu
Generation and Distribution Corporation Limited (TANGEDCO). Neither the project proponent nor the site
personnel have any control over it. The records will be cross-checked with the records of sold electricity to
Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). The meters are calibrated by
Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) at-least once in five years.
Data Measurement: The export and import energy will be measured continuously using above mentioned
Main & Check meters. Export & Import readings of Main & Check meters shall be taken on monthly basis
by authorized officer of TANGEDCO in the presence of PP or representative of PP. The meter reading will
be taken jointly and signed by the representatives of the TANGEDCO and project investors. Based on the
readings, invoices will be raised by project investors. These invoices can be used for cross checking the
meter readings taken for the project activity. It is to be noted though PP or PP representative is available
during meter reading, the calculations of net electricity supplied to grid is completely under purview of
TANGEDCO officer and PP do not have any control on it. Also accuracy class of meters and calibration
frequency is under purview of TANGEDCO officer and PP do not have any control on it. PP got the
monthly credit report from where net electricity supplied to grid is obtained and used for emission
reduction calculations.
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Data Archiving:
Monthly data shall be archived electronically and in paper form and stored for the entire crediting period
and two years thereafter.
Emergency preparedness:
The project activity will not result in any unidentified activity that can result in substantial emissions from
the project activity. No need for emergency preparedness in data monitoring is visualized.
In the event that the main meter, which is used to record the net electricity exported by the project, is
found to be faulty it will be repaired or replaced and the data from the check meter will be used in its place.
In the unlikely event that the check meter fails it will also be repaired or replaced.
Personnel training:
In order to ensure a proper functioning of the project activity and a properly monitoring of emission
reductions, the staff (CDM team) will be trained. The plant helpers will be trained in equipment operation,
data recording, reports writing, operation and maintenance and emergency procedures in compliance
with the monitoring plan.
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Apportioning:
In case of mismatch of date between the start date of the billing cycle and the start date of monitoring
period the data will be apportioned in line to the daily generation values for the said mismatch period.
5 SAFEGUARDS
There were no harm identified form the project and hence no mitigations measures are applicable.
According to Indian regulation, the implementation of the renewable energy power project does not
require an Environmental Impact Assessment (EIA). As all the project activity instances involved in the
grouped project activity involves installation of the renewable energy power project and as the Indian
regulation on the Environmental Impact Assessment is the same for all the renewable energy Power
Projects, it is decided to analyze the environmental impacts at the groped project activity Level.
As per the Ministry of Environment and Forests (Government of India) notification dated September 14,
2006 regarding the requirement of environmental Impact Assessment (EIA) studies as per the
Environmental Protection Rule, 1986 (Published in the Gazette of India, Extraordinary, Part-II, and
Section 3, Sub-section (ii) Ministry of Environment and Forests), any project developer in India needs to
file an application to the Ministry of Environment and Forests (including a public hearing and an EIA) in
case the proposed industry or project is listed in a predefined list. The renewable energy power Projects
are not included in this list and thus an EIA is not required. Hence, environmental impact analysis is not
required for the groped project activity and also for the project activity instances.
The stakeholders of the project activity were invited to attend the stakeholder meeting. Personal
invitations were also sent to the prominent members of the regions in the vicinity along with public display
of invitation letters.
A stakeholder meeting was held, involving the local stakeholders. The meeting was attended by local
villagers, panchayat members, shopkeepers and representatives of PPs.
The stakeholders were explained about the project activity and the various benefits arising out of the
project activity. A discussion was held in which the views of the local stakeholders were addressed.
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• Responding about the increased possibilities for employment of local youth due to the project activity,
it was pointed out that preference would be given for locals in the employment opportunities. Also
project will lead to various indirect employment generations due to implementation of project activity.
• Conventionally, power is generated from thermal power plants using fossil fuels. This leads to
emission of NOx, CO2 and SO2.
• CDM helps in promoting renewable energy thereby reducing the emission of GHGs and in
sustainable improvement of the country. This will also decrease the further demand of coal for the
generation of electricity and will result in financial and environmental benefits.
EFgrid,CM,y : Combined margin CO2 emission factor for grid connected power generation in year y
calculated using the latest version of the “Tool to calculate the emission factor for an
electricity system” (tCO2/MWh) (i.e., 0.9652 tCO2/MWh).
EGPJ, y : Quantity of net electricity generation that is produced and fed into the grid as a result of
the implementation of the project activity in year y (MWh/yr)
BEy : Baseline emissions in year y (tCO2e/yr)
Here,
Baseline
Generated Baseline Emission
Project Investors’ Name PLF (%) emissions
Power (MWh) Factor (tCO2/MWh)
(tCO2/ year)
Kamuthi Solar Power Limited 19.38% 5,84,079 0.9653 5,63,810
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The project activity involves in harnessing Solar power. So, the emissions from the project are zero.
6.4 Leakage
No leakage emissions have been considered and hence the leakage emission is zero.
Where,
ERy = Emission Reduction in tCO2/year
BEy = Baseline emission in tCO2/year
PEy = Project emissions in tCO2/year
LEy = Leakage Emissions in tCO2/year.
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The Emissions Reductions for the current monitoring period is higher than the estimated values.
This is because of higher PLF observed. The Values are within the sensitivity analysis carried
out for the project activity.
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