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

CDM – Executive Board


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

Appendices

Appendix 1: WEG Commissioning Details

Appendix 2: Turbine Specifications

Appendix 3: Assumptions considered in the investment analysis

Appendix 4: Abbreviations

Appendix 5: Evidence of Management Decision

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Revision history of this document

Version Date Description and reason of revision


Number
01 21 January Initial adoption
2003
02 8 July 2005 1. The Board agreed to revise the CDM SSC PDD to
reflect guidance and clarifications provided by the
Board since version 01 of this document.
2. As a consequence, the guidelines for completing
CDM SSC PDD have been revised accordingly to
version 2. The latest version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
03 22 December 3. The Board agreed to revise the CDM project design
2006 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:


>>
Wind Electricity Generation Project
Version: 03
Dated: 03/11/2008

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


>>
Reliance Innoventures Limited (RINL), is a limited company incorporated under the Indian Companies
Act, 1956. RINL is a part of Reliance - Anil Dhirubhai Ambani Group (ADAG). RINL has setup a wind
farm of 5.625 MW installed capacity at the Myvadi, Vedapatty, Jothampatty and Thungavi Villages of
Udumalpet Taluk in Coimbtore district in the region of Tamil Nadu.

Project activity comprises of 25 Wind Energy Generators (WEG’s) installed in Tamil Nadu, southern
region of the country. In this project activity, 1.350 MW (6 x 225 kW) is installed at Myvadi village,
1.125 MW (5 x 225 kW) is installed at Vedapatty village, 1.575 MW (7 x 225 kW) is installed at
Jothampatty village and 1.575 MW (7 x 225 kW) is installed at Thungavi village. The project activity was
commissioned in March 2007. The turbines are connected to 110/ 22 kV Madathukulam substation.
Details of WEG’s commissioning are provided in Appendix 1.

The WEG’s are supplied by Southern Wind Farms Limited (SWL) and the expected lifetime of the
project is twenty years. The project activity will evacuate approximately 11.505 GWh of renewable
power annually to the power deficit Tamil Nadu grid (interconnected with southern regional grid). The
main purpose of the project activity is to generate electrical energy through sustainable means using wind
power resources, to utilize the generated output for selling it to the energy deficit grid of Tamil Nadu
Electricity Board (TNEB) for meeting the energy shortages in the southern region and to contribute to
climate change mitigation efforts.

The project activity generates electricity and sells it to the State grid thereby displacing electricity that
would have been generated from predominantly fossil fuel based power generation. The annual GHG
emission reduction through this project activity is estimated to be 10671 tonnes of Carbon dioxide
equivalent.

The project assists in the sustainable development of the country, and the state by reducing the burden of
fossil fuel usage, reducing local air pollution, providing emission free clean electricity and providing
employment to unskilled persons during the construction phase and to skilled persons during the entire
lifetime of the project. Promotion of wind power projects ensures adequate power supply, improved air
quality, alternative sources of energy and improved local livelihoods.

• The CDM project activity will lead to alleviation of poverty by generating additional
employment, removal of social disparities and contribution to provision of basic
amenities to people leading to improvement in quality of life of people.

• The infrastructure in and around the project area has also improved due to project
activity. This includes improvement of electricity quality, frequency and availability as
the electricity is fed into a deficit grid.

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• The project activity also leads to diversification of the national energy supply, which is
dominated by conventional fuel based generating units.

• Being a renewable resource, using wind energy to generate electricity contributes to


resource conservation. Thus the project causes no negative impact on the surrounding
environment contributing to environmental well-being.

In short, the project is an attempt to provide a renewable source of electricity and at the same time help
bridge the gap between the ever-increasing power deficits in the southern regional grid.

The details of the project are given below:

Capacity of No of Total Location


Wind WEG’s capacity
Energy of Project
Generator in MW

225 kW 6 1.350 Myvadi


225 kW 5 1.125 Vedapatty
225 kW 7 1.575 Jothampatty
225 kW 7 1.575 Thungavi
Total 25 5.625

A.3. Project participants:


>>
Name of Party involved Private and/or public Kindly indicate if the Party involved
((host) indicates a host entity(ies)Project wishes to be considered as project
Party) participants (as applicable) participant (Yes/No)
India (host) Reliance Innoventures Limited No
(Private entity)

The contact information of the project participants is provided in the Annex 1

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.:


>>
Coimbatore district, Tamil Nadu state

A.4.1.3. City/Town/Community etc:


>>
Myvadi, Vedapatty, Jothampatty and Thungavi Villages of Udumalpet taluka of Coimbatore District

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A.4.1.4. Details of physical location, including information allowing the
unique identification of this small-scale project activity :
>>
The site is having following geographical parameters and its location shown in the map -

The project location is well accessed; the nearby railway Station is in Udumalpet taluka of Coimbatore
disctrict and nearby national highway is NH- 209.

Map showing location in Coimbatore district and Tamil Nadu region in India

The unique identification for the 25 WEGs in this small scale project is provided in table below which
gives the Survey Field (SF) no, Village name, High Tension Service Connection No (HT SC No), and the
latitude and longitude coordinates for the 25 WEGs.

S.No Survey Field (S.F) No Village Name HT SC No Latitude Longitude


1 683/3C1 Myvadi 1400 10º 34' 58'' N 77º 20' 53'' E
2 684/1C1,1C2 Myvadi 1402 10º 34' 51'' N 77º 20' 56'' E
3 698/1D4 Myvadi 1401 10º 34' 35'' N 77º 20' 57'' E
4 16/3A3 Vedapatty 10º 34' 52'' N 77º 21' 25'' E
5 33/1C3 Vedapatty 10º 34' 53'' N 77º 21' 34'' E
6 33/1A3B Vedapatty 1406 10º 34' 57'' N 77º 21' 29'' E
7 31/1C1 Vedapatty 1407 10º 35' 08'' N 77º 21' 25'' E
8 20/1A1A,21/1A Vedapatty 1408 10º 35' 10'' N 77º 21' 08'' E
9 116/1A Jothampatty 1403 10º 35' 25'' N 77º 21' 40'' E
10 116/1A Jothampatty 1404 10º 35' 29'' N 77º 21' 40'' E
11 104/3C Jothampatty 1411 10º 35' 35'' N 77º 21' 37'' E
12 104/1A4,1A5,1A6 Jothampatty 10º 35' 40'' N 77º 21' 32'' E
13 100/2B Jothampatty 10º 35' 32'' N 77º 21' 31'' E
14 100/2B Jothampatty 1413 10º 35' 32'' N 77º 21' 31'' E
15 120/2A Jothampatty 1412 10º 35' 39'' N 77º 21' 44'' E
16 420/2 Thungavi 10º 37' 53'' N 77º 22' 30'' E
17 418/2 Thungavi 10º 37' 58'' N 77º 22' 31'' E
18 418/2 Thungavi 1405 10º 38' 03'' N 77º 22' 30'' E
19 416/2D,2E Thungavi 1416 10º 38' 15'' N 77º 22' 33'' E
20 429/1 Thungavi 10º 37' 40'' N 77º 22' 24'' E
21 430/2L Thungavi 1414 10º 37' 45'' N 77º 22' 23'' E

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S.No Survey Field (S.F) No Village Name HT SC No Latitude Longitude
22 434/1C Thungavi 1415 10º 38' 03'' N 77º 22' 17'' E
23 684/1A3 Myvadi 1410 10º 34' 45'' N 77º 20' 44'' E
24 697/2A3,3A1,3A2,4A,4B Myvadi 10º 34' 39'' N 77º 20' 50'' E
25 697/2C2,2C3,3C1,3C2 Myvadi 1409 10º 34' 40'' N 77º 20' 57'' E

A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:
>>
Capacity of the proposed wind farm project is 5.625 MW thus meeting the qualifying capacity of 15MW
under the renewable/non-renewable sectoral scope. The project activity has been considered as a small
scale CDM project activity and UNFCCC indicative simplified modalities and procedures are applied.
According to small-scale CDM modalities the project activity falls under:

Sectoral Scope 1 Energy industries (renewable / non renewable sources)


Type – I Renewable Energy Projects
Category I-D Grid connected renewable electricity generation
Version - 11

The project activity involves planning, engineering, procurement, construction of wind farm and all the
other necessary infrastructure, operation & maintenance of 5.625 MW wind farm. Technology
implemented would based on the 225 kW x 25 Nos. of Southern Wind Farms Ltd Make - WEG’s.

The technology implemented in the wind farm is developed domestically by the Southern Wind Farms
Ltd. by the inhouse team of R&D experts. The Wind Energy Generator manufacturer has developed local
vendors to manufacture majority of the turbine parts.

The salient features of the 225 kW WEG’s are as follows:

• Doubly-fed induction generator


• Power factor control
• Reactive power control
• Reduced loading on turbine components
• Reduced losses and cost saving
• Increased energy production
• Enhanced energy capture
The turbines are certified by Centre for Wind Energy Technology* (CWET). The specifications of the
turbine are enlisted in the Appendix 2.

All WEGs are indigenously designed and made with a state of art safety and environmental features by
Southern Wind Farms Ltd.

A.4.3 Estimated amount of emission reductions over the chosen crediting period:
>>
Estimation of annual
Year emission reductions in
tonnes of CO2 e
July, 2008 - June, 2009 10671

*
http://www.cwet.tn.nic.in/html/departments_cs.html

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Estimation of annual
Year emission reductions in
tonnes of CO2 e
July, 2009 - June, 2010 10671
July, 2010 - June, 2011 10671
July, 2011 - June, 2012 10671
July, 2012 – June, 2013 10671
July, 2013 – June 2014 10671
July, 2014 – June 2015 10671
Total estimated reductions 74697
(tonnes of CO2e)

Total number of crediting years 7


Annual average of the estimated
reductions over the crediting 10671
period (t CO2e)

The estimated total emission reductions be achieved by the project activity is 74697 tonnes of CO2
equivalent for the first renewable crediting period of 7 years.

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


>>
No public funding is involved in the project.

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

According to paragraph 2 of Appendix C to the Simplified Modalities and Procedures for Small-Scale
CDM project activities (FCCC/CP/2002/7/Add.3), a small-scale project is considered a debundled
component of a large project activity if there is a registered small-scale activity or an application to
register another small-scale activity:

 With the same project participants


 In the same project category and technology
 Registered within the previous two years; and
 Whose project boundary is within 1km of the project boundary of the proposed small scale activity

The project promoters confirm that there is no registered small scale project activity within the last two
years in the same project category and technology whose project boundary is within 1km of the project
boundary of the proposed small scale activity. Thus the project is not a debundled component of any other
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:
>>
Project Type: I - Renewable energy project
Project Category: I D - Grid connected renewable electricity generation
Version: 11 (18/05/2007)
Reference: Appendix B of the simplified M&P for small scale CDM project activities
(UNFCCC, 2003b)

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


>>
S.No Applicability Criteria Project Case
1. This category comprises renewable energy generation units, The project activity comprises
such as photovoltaics, hydro, tidal/wave, wind, geothermal, generation of electricity using
and renewable biomass, that supply electricity to and/or renewable energy based on
displace electricity from an electricity distribution system wind power and its supply to
that is or would have been supplied by at least one fossil the southern regional grid. It
fuel fired generating unit. hence displaces the electricity
which would have other wise
been generated from the power
plants connected to the grid.
2. If the unit added has both renewable and non-renewable There is neither non-renewable
components (e.g.. a wind/diesel unit), the eligibility limit of component added, nor co-firing
15MW for a small-scale CDM project activity applies only is required for the proposed
to the renewable component. If the unit added co-fires project activity. The renewable
fossil fuel, the capacity of the entire unit shall not exceed project capacity is 5.625 MW,
the limit of 15MW. below the limit of 15 MW.
3. Combined heat and power (co-generation) systems are not Not applicable, this project
eligible under this category. activity generates only
electricity.
4. In the case of project activities that involve the addition of Not applicable, all the
renewable energy generation units at an existing renewable windmills are new and this
power generation facility, the added capacity of the units project is not capacity
added by the project should be lower than 15 MW and enhancement or upgradation
should be physically distinct from the existing units. project
5. Project activities that seek to retrofit or modify an existing Not applicable, this project is
facility for renewable energy generation are included in this not a retrofit or modification of
category. To qualify as a small scale project, the total existing facility.
output of the modified or retrofitted unit shall not exceed
the limit of 15 MW.

Through out the crediting period the aggregated capacity i.e. 5.625MW (< 15MW) of the project activity
will remain constant.

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B.3. Description of the project boundary:
>>
The project boundary is defined as the notional margin around a project within which the project’s impact
(in terms of GHG reduction) will be assessed. As defined in the Annex B for small-scale project
activities, the project boundary for a small-scale wind farm project that provides electricity to a grid is
shown below in which 25 Wind Energy Generators of 225 kW capacity are connected to substation, and
the grid which is used to transmit the generated electricity (in this case the southern regional grid).

Fuel (Wind)

Wind Energy Generators

Project Boundary

Metering system

TNEB Grid (interconnected with southern regional grid)

End user

The above schematic depicts the idea about the connectivity of the project activity.

B.4. Description of baseline and its development:

>>
As per the point no. 9 of baseline methodology Type I. D. of Annex B of the simplified modalities and
procedures for small scale CDM project activities, states that the baseline is the kWh produced by the
renewable generating unit multiplied by an emission coefficient (measured in kg CO2equ/kWh)
calculated as under:

• A combined margin (CM), consisting of the combination of operating margin (OM) and build margin
(BM) according to the procedures prescribed in the approved methodology ACM0002.

(OR)

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• The weighted average emissions (in kg CO2equ/kWh) of current generation mix. The data of the year
in which project generation occurs must be used. Calculations must be based on data from an official
source (where available) and made publicly available.

Baseline electricity figures:

Net electricity generation from the project activity is estimated as 11.505 GWh per annum. The basis of
arriving from theoretical energy generation to gross generation to net generation by applying discount
factors is presented in the following table.

TECHNICAL Value Unit


WEG Capacity 225 KW
No of WEGs 25 Nos
Project Size 5.625 MW
Air Density correction factor 92%
Array Efficiency 95%
Machine Availability 95%
Grid Availability 95%
Internal losses 98%
Estimated Net Generation per WEG 0.4602 GWh per annum
Estimated Net Generation for the Project 11.505 GWh per annum
- Based on Wind Energy Resource Survey
Plant Load Factor 23.35% (MNES) and WEG power curve (refer
generation sheet)
Estimated Net Generation for project 11.505 GWh per annum

Baseline emission factor calculation:

The proposed project is located in the state of Tamil Nadu and will be feeding the electricity in the
southern regional grid serving the four southern states and one union territory namely Pondicherry.
Therefore the proposed project would have impact on all the generation facilities in the southern grid.
Thus all the power generation facilities connected to this grid form the boundary for the purpose of
baseline estimation. The southern grid is also connected with other regional grids, however, the net
exchange of energy within the regional grids is very small and negligible and hence other regional grids
are not included in the boundary for estimation of baseline emissions.

Since the displaced electricity generation is the element that is likely to affect both the operating margin
in the short run and the build margin in the long run, electricity baselines should reflect a combination of
these effects. Therefore an ideal baseline approach is envisaged as the one that combines both Operating
and Build Margin as prescribed in first alternative given in paragraph 9 under Category I. D of the
UNFCCC M&P for small scale projects. For the baseline calculation a combined margin (CM), consisting
of the combination of operating margin (OM) and build margin (BM) has been used. The combined
margin has been estimated by the Central Electricity Authority of India and the same has been used for
estimating the baseline emissions for this project activity.

As described in ACM0002, the emission factor EFy of the southern grid is represented as a combination of
the Operating Margin and the Build Margin. The emission factor of the associated method is given by:

EFy = wOM . EFOMy + wBM . EFBMy

Where

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EFOMy - emission factor of Operating Margin
EFBMy - emission factor of Build Margin
wOM - weight factor of Operating Margin
wBM - weight factor of Build Margin

Operating Margin emission factor (EFOM)


In the southern regional the power generation is dominated by fossil fuel based power plants and the
power generation by low cost/must run resources constitute less than 50% of total grid generation, so
simple operating margin method is used for operating margin emission factor calculation. The Operating
Margin emission factor EFOMy is defined as the generation-weighted average emissions per electricity
unit (tCO2 / MWh) of all generating sources serving the system, excluding zero- or low-operating cost
power plants (hydro, geothermal, wind, low-cost biomass, nuclear and solar generation), based on the
latest three year statistics data (year of 2004-05,2005-06, 2006-2007) and are derived from the following
equation:

Where:
Fi ,j, y is the amount of fuel i (in a mass or volume unit) consumed by relevant power sources j in
year(s) y,
j refers to the power sources delivering electricity to the grid, not including low-operating cost and mustrun
power plants, and including imports to the grid,
COEFi,j y is the CO2 emission coefficient of fuel i (tCO2 / mass or volume unit of the fuel), taking into
account the carbon content of the fuels used by relevant power sources j and the percent oxidation of the
fuel in year(s) y, and
GENj,y is the electricity (MWh) delivered to the grid by source j.

The CO2 emission coefficient COEFi is obtained as


COEFi = NCVi · EFCO2,i · OXIDi
where:
NCVi is the net calorific value (energy content) per mass or volume unit of a fuel i,
OXIDi is the oxidation factor of the fuel (see page 1.29 in the 1996 Revised IPCC Guidelines for default
values),
EFCO2,i is the CO2 emission factor per unit of energy of the fuel i.

Year 2004-05 2005-06 2006-07 Average

Operating Margin Emission 1.00 1.01 1.00 1.0


Factor (tCO2 / MWh)

Source: Central Electricity Authority: CO2 Baseline Database.


Version:3,Dated 15/12/2007
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm

The Operating Margin applicable for the project activity is taken as average of the latest three years
operating margins. Accordingly the Operating Margin Emission factor is determined as 1.0 tCO2e/MWh
and this value has been fixed ex-ante for the entire crediting period for the project activity.

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Build Margin emission factor (EFBM)


The Build Margin emission factor EFBM,y is calculated ex-ante based on the most recent information
available on plants already built .The Build Margin emission factor EFBMy is given as the generation
weighted average emission factor of the selected representative set of recent power plants represented by
the 5 most recent plants or the most recent 20% of the generating units built (summation is over such
plants specified by k). The most 20% of the generating units built recently is used for build margin
emission factor calculation.

where Fi,m,y, COEFi,m and GENm,y are analogous to the variables described for the simple OM method
above for plants m.

The choice of method for the sample plant is the most recent 20% of the generating units built as this
represents a significantly larger set of plants, for a large regional electricity grid have a large number of
power plants connected to it, and is therefore appropriate.

The Build Margin emission factor will be EFBM is 0.71 tCO2/MWh of the year 2006-07 and this value has
been fixed ex-ante for the entire crediting period for the project activity.

Source: Central Electricity Authority: CO2 Baseline Database.


Version:3,Dated 15/12/2007
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm

Calculate the baseline emission factor (EF)


The baseline emission factor EF is calculated as combination of the Operating Margin emission factor
(EFOM) and the Build Margin emission factor (EFBM):

EF = wOM*EFOM + wBM*EFBM
Where the weight factors wOM and wBM (where wOM + wBM = 1), and by default, are weighted equally
(wOM = wBM = 0.5)

For wind and solar projects, ACM0002 allows the usage of the default weights are as follows: wOM =
0.75 and wBM = 0.25. Using the above values the combined margin emission factor is valued at -

EFOM - 1.0 tCO2/MWh and wOM - 0.75


EFBM - 0.71 tCO2/MWh and wBM - 0.25

EF = 0.75*1.0+ 0.25*0.71
Baseline emission factor will be (EF) = 0.9275 tCO2/MWh

Year 2004-05 2005-06 2006-07 Average

Simple Operating Margin 1.0 1.01 1.0 1.0


Emission Factor (tCO2 / MWh)

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Build Margin Emission Factor 0.71
(tCO2 / MWh)

Combined Margin Emission 0.75*1.0+


Factor (tCO2 / MWh) 0.25*0.71 =
0.9275

Source: Central Electricity Authority: CO2 Baseline Database.


Version:3,Dated 15/12/2007
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm

B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered small-scale CDM project activity:

The project activity is generating electricity from wind for which GHG emission is nil. The generated
electricity is supplied to Southern regional grid. Thus the power generated in the project activity is
actually displacing the electricity generated from the grid. In case the project activity would not have been
there, the same amount of electricity would have been generated from the power plants connected to the
grid of which majority are based on fossil fuels. Thus the project is replacing the anthropogenic emission
from the fossil fuel based power plant connected to the state electricity grid.

The project activity is in line with the Renewable Energy Policy of Government of India which targets
10% of additional grid power generation capacity to be from Renewable Energy sources by 2012.

Justification for additionality of the project

UNFCCC simplified modalities seeks to establish additionality of the project activity as per Attachment
A to Appendix B, which lists various barriers, out of which, at least one barrier shall be identified due to
which the project would not have occurred.

The barriers are to be listed out as follows.

1. Investment barrier
2. Barrier due to prevailing practice
3. Other barriers

1) Investment Barriers

The identified site has lesser wind density at higher hub height, therefore it was concluded that small
turbines were found to be suited for the site. This has resulted in increased number of wind energy
generators and higher capital investment as MW class turbines can not be utilized. The project is self
financed costing INR 2437.5 lacs. Assumptions considered in investment analysis are listed in the
Appendix 3:

The project proponents have invested in the implementation of the grid connected wind farm project. In
the absence of this project activity the power would have been generated by the predominantly fossil fuel
based power plants.

Though wind energy is a clean form of energy, it is a costlier option. The capital investment for this wind
power project activity with other alternative credible options is tabulated below.

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Capital cost for various power plants

S.No Type of Power Plant Capital Cost


(INR million / MW)

1 Natural Gas Power Plant 27

2 Diesel Power Plant 35

3 Wind Power Plant 45†


43.3‡
Source: Report of the Expert committee on fuel for power generation-Page xi-CEA.

It may be noted from the above table that the capital cost for a wind power project is high as compared to
other power generation options.

2) Barrier due to prevailing practice

• As far as sale of electricity to utility is concerned, It is evident from the table below that the power
purchase price (tariff) in Tamil Nadu is much lower than the other states. Such a low tariff
discourages private sector investment in clean technologies. Such power policies of the Tamil Nadu
state government impediments implementation of clean power projects.

• Even though Tamil Nadu Electricity Regulatory Commission (TNERC) has ratified at INR 2.90 /
kWh, the TNEB has signed PPA with RINL, at INR 2.70 / kWh

State Buy-Back Fixed or escalable

Tamil Nadu Rs. 2.70 / kWh Fixed

Karnataka INR 3.40/kWh Fixed for 10 years

Gujarat INR 3.37/kWh Fixed for 20 years

Madhya Present INR 4.13 /kWh 2nd Year INR 3.86/kWh, 3rd Year INR
Pradesh 3.69/kWh, 4th year INR 3.52/kWh and
5th year to 20th Year INR 3.36/kWh
Maharashtra INR 3.50/kWh Rs 0.15 escalation for 13 years

Rajasthan For Jaisalmer, Jodhpur and Barmer district


INR 3.60 kWh for injection in 33kV or 11kV
system & INR 3.71/kWh for injection in
EHV system.

For other district INR 3.78 kWh for


injection on 33kV or 11 kV system &


http://tnerc.tn.nic.in/orders/nces%20order%20-approved%20order%20host%20copy.pdf

As per the purchase order of the promoter of WEG

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State Buy-Back Fixed or escalable

INR 3.89 kWh for injection in EHV


system
Source: http://www.windpowerindia.com/govtinc.html
The non-supportive tariff policy of TNERC further impacts project’s viability and requires additional
support of CER backed revenue.

3) Other Barriers

a. Wind energy has low Capacity factor and the highest uncertainty in terms of generation because of
the unpredictable weather conditions. Project proponent had chosen the cleanest alternative in spite of
it being the most expensive one.
Though wind energy is a clean energy, it is a costlier option, especially in India where availability of
coal is in abundance. It makes coal the most preferred fuel for power generation since it is the least
cost option. Wind energy on the other hand has the lowest load factor and the highest uncertainty in
production because it is entirely dependent on weather conditions.
Project Proponent has used benchmark analysis with equity IRR as financial indicator for
additionality check. The post tax return on equity and equity IRR is used as the appropriate financial
indicator because in the Indian power sector, a 14% post tax return on equity is an established
benchmark for projects in public or private sector based on cost-plus regulations (Source: Central
Electricity Regulatory Commission, Terms and Conditions of Tariff, Regulations 2004 dated 26
March 2004) for utility scale power plants. Incentives, foreign exchange variations and efficiency in
operations are in addition to this benchmark of 14%.
The project activity tariff structure is a single-part tariff structure as compared to utility scale fossil
fuel and hydro projects, which have two-part tariff structure. This implies that project activity carries
a higher investment risk than the utility scale fossil fuel and hydro projects where the investment
recovery is decoupled from the level of actual generation achieved by the project due to variations in
offtake.
In case of the current prevailing issues in Tamil Nadu, wind power projects are having transmission
unavailability♥, instructions from grid operators to back-down of generation during high wind season
etc are also prevalent in the state. These issues are beyond the control of the investors and likely to
affect the project activity more severely. The investor for the project activity is carrying these
additional risks.

Based on the above considerations, 14% post-tax equity IRR is considered to be the appropriate post-
tax equity return. If the Project has a post-tax equity IRR of less than 14%, then it can be considered
to be additional.

Investment in the equity capital of the wind project is a risky investment. It is therefore, imperative
that the project should yield a return commensurate with the risk. Considering the risk the PP was
willing to take, alternative investment opportunities available to him were to invest in stock market.
The return from the stock markets prior to the date on which the investment decision was taken are
given below§:


for details refer part (b) of Other barriers
§
Of the above, Nifty and Sensex are traded as derivatives an can be traded as such. A time horizon of 5 years has been
considered in computing the CAGR imparting the long term nature, which the investment in project activity represents.

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S&P CNX Nifty – 29.99%
Sensex – 33.13%
S&P CNX 500 – 35.99%

Besides, BSE introduced a sectoral specific index for Power sector in 2005. The one year return of
the index (from 1-12-2005 to 30-11-2006) was 48%.

Secondly, the PP has another company presently in operation and is engaged in generation and
distribution of power. The EPS earned by the Company during the year 2005-06 was Rs.30.63 and
Rs.28.04 in the previous year. Against this, the PP had fixed Rs.1.40 as the benchmark, which is very
conservative.

Finally, the project developer has contracted a term loan for another project at 12.75%**. This is the
commercial lending rate, which is secured and hence least risky. In contrast, an unsecured and risky
investment should carry a premium. The premium assumed works out to hardly 10% over the
commercial lending rate.

As the subsequent analysis reveal the equity IRR is less than even the commercial lending rate of
12.75%.

Following analysis depicts that the project isn’t financially attractive viable even though the project
proponent takes the CDM benefits. (i.e. With out CDM benefits IRR is 11.11 % which is much lesser
than benchmark IRR 14%). as the equity IRR of the project activity, without CDM revenues, is only
11.11 % which is much lower than even the commercial lending rate of 12.75%.

Financial parameter/ Equity IRR


options
Without CDM benefits 11.11%
With CDM benefits 13.04 %
Commercial lending rate 12.75%

In computing the equity IRR, all the tax benefits accruing to the project activity have been taken into
account. The wind power project are entitled to two types of tax benefits at preset, viz.,

• 80% accelerated depreciation under section 32 (rule 5) of the Income Tax Act
• Income tax holiday of 10 years under section 80IA of the Income Tax Act

Wind power projects in India are given the benefit of accelerated depreciation under section 32 of the
Income Tax Act since 1987. At the onset of this policy, wind power projects were eligible for 100%
accelerated depreciation. However, with effect from 1.04.2003, the incentive has been reduced to
80% accelerated depreciation. Since 2003, the projects are eligible for only 80% depreciation.

All infrastructure development projects (under which Wind power projects fall) are also entieled to
tax holiday under Section 80IA of the Income Tax Act, 1961 for 10 consecutive years out of the first
15 years from April 2000 onwards.

**
Loan sanctioned by ICICI Bank.

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The computataion of IRR takes into account both these tax benefits. The Income tax depreciation
benefits have been taken into account as an inflow to the project activity (Row No. 30 of the PL
Account worksheet), while the tax holiday has been taken into account while calculating tax liability
(Row no. 34 of the PL Account worksheet).

The equity IRR of 11.11% arrived at is after taking into consideration the aforementioned tax benefits
accruing to the project.

As evident from the above analysis equity IRR with CDM benefits will go up to 13.04 %. This goes
to prove that CDM revenues would make significant improvement in the IRR and enable the PP to
improve the viability of the project activity and overcome the investment barrier.

Assumptions considered in the investment analysis are given in Appendix 3

In the above background, it is evident that the PP could not have ventured into this project but for the
CDM benefits. PP was aware of the benefit likely to accrue to the project on account of CDM
benefits and without CDM benefits, the PP would not have taken up this activity.

Sensitivity Analysis:
In order to demonstrate the robustness of the Investment analysis and returns arrived at above, PP has
carried out a sensitivity analysis has been carried out by subjecting of PLF and windmill cost, the
two critical assumptions of the project activity, to reasonable variations, i.e., by 10 %.

Both PLF and windmill cost have been subjected to 10% variation on either side to ascertain the
validity of the conclusions drawn. The results of the sensitivity analysis are as follows:

Project IRR
Factors
-10% 0 +10%
PLF 9.40% 11.11% 12.72%
Windmill cost 12.39% 11.11% 9.99%

The above results shows that that project will remain additional even in the case of an increase in the
PLF by 10 % or the wind mill cost goes down by 10% as the equity IRR does not cross even the
commercial lending rate of 12.75% . Having said that it needs to be mentioned that Not only this,
even increase in PLF by even 5% is a very difficult proposition in the case where grid availability and
stability is a major problem with in the State and past trend doesis not reveal any favourable trend.
With reference to variation in the windmill cost, the purchase orders have already been placed and the
delivery has taken place at the cost indicated in the PDD. Hence, PP hasn’t demonstrated the scenario
of reduction in windmill cost.

b. Any Grid works on two loads i.e. base load and peak load. Power generation in wind turbines due to
its inherent feature depends on climatic conditions and is beyond the control of project proponent.
Due to this reason, power from windmills is considered to meet demand only in the event when it
could not met with conventional power sources. In recent times, wind turbines in Tamil Nadu have
been many times asked to back down as power generation in thermal power stations had been running
at their peak resulting in high frequency in the grid. The TNEB at times is not able to evacuate power

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that the wind units are generating. This leads to low sales realization, which has a negative impact on
the IRR of the project.

“In the last three to four days, according to the sources, TNEB has asked wind power generators to
shut down their turbines for periods ranging from nine hours to 20 hours a day.

The Tirunelveli region and Coimbatore district are major wind energy producing centres in Tamil
Nadu.”
(Source: http://www.blonnet.com/2006/05/31/stories/2006053103621900.htm )

The problem is more severe due to the fact that this has happened at a time when climatic conditions
were most suitable for wind power generation, due to the high speed of wind.

In the given project, the wind turbines are backed down for 2 hours on regular basis due to the non
availability of grid. Also, the wind turbines are backed down for about 2 hours per week for regular
maintenance of the turbines. But this situation persists only for approx. 4-6 months and for remaining
months the turbines regulate for normal working hours (i.e. 24 hours).

“The sources say that the electricity board has resorted to this move because of peak generation
from thermal stations, resulting in high frequency in the grid. The wind power industry faced a
similar problem last year too during the peak season when the Tamil Nadu Electricity Board asked
them to back down their machines due to evacuation problems.”
(Source: http://www.blonnet.com/2006/05/31/stories/2006053103621900.htm)

B.6 Emission reductions:

B.6.1. Explanation of methodological choices:


>>

The project activity meets the eligibility criteria to use simplified modalities and procedure for small scale
CDM project activities as set out in paragraph 6 (c) of decision 17/CP.7 as explained in the earlier
sections.

Since the project is a grid connected renewable energy project, emission reduction quantity depends on
the units of electricity exported to the grid (in MWh) and the baseline emission factor of the southern
regional grid.

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

ER = BE – PE – L……………………. (1)

Where,
ER - Net Emission Reduction in tCO2/year
BE - Baseline emissions in tCO2/year
PE - Project emissions in tCO2/year
L - Emissions due to leakage in tCO2/year

Baseline emissions (BE)


BE are calculated by multiplying the net quantity of electricity supplied by this project activity (EG) with
the CO2 baseline emission factor for the electricity displaced due to the project (EF,) as follows:

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BE = EG*EF……………………. (2)

Where:

EF = Baseline emission factor

EG = Net electricity supplied to the southern regional grid

The methodological choices for arriving BE components i.e. EG and EF are demonstrated in section B.4
of the PDD. The EF has been arrived in accordance with applicable versions of ACM0002 i.e. ver 6 and
AMS I.D i.e. ver 11.

Project Emissions:
The project activity uses wind power to generate electricity and hence the emissions from the project
activity are taken as nil.
PE = 0

Leakage:
Leakage emissions on account of the project activity is considered as zero as neither the wind energy
generators are transferred from another activity nor any existing equipment of the project site would be
transferred from the project site in accordance with the applied methodology.
L=0

Therefore the above equation no.1 is simplified to

ER = BE

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

Data / Parameter: EFOM


Data unit: tCO2 / MWh
Description: Operating Margin emission factor for Southern regional grid
Source of data to be Central Electricity Authority (CEA) CO2 Baseline Database values have been used
used: for calculation. Source:
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm

Value applied 1.0 tCO2/MWh.


Justification of the Calculated by Central Electricity Authority (CEA)
choice of data or
description of
measurement methods
and procedures
actually applied :
Any comment: Value is calculated based on ex-ante approach

Data / Parameter: EFBM

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Data unit: tCO2 / MWh
Description: Build Margin emission factor for Southern regional grid
Source of data to be Computed from data sourced from Website of Central Electricity Authority of India
used:
for calculation. Source:
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm

Value applied 0.71 tCO2/MWh


Justification of the Calculated by Central Electricity Authority (CEA)
choice of data or
description of
measurement methods
and procedures
actually applied :
Any comment: Value is calculated based on ex-ante approach

Data / Parameter: EF
Data unit: tCO2 / MWh
Description: Combined Margin CO2 emission factor for Southern regional grid
Source of data to be Central Electricity Authority (CEA) database on CO2 baseline emission factor for
used: Indian Power Sector used for calculation
Source:
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm
Value applied 0.9275 tCO2/MWh
Justification of the Calculated as per ACM0002.
choice of data or
description of
measurement methods
and procedures
actually applied :
Any comment: .

B.6.3 Ex-ante calculation of emission reductions:


>>
Relevant equations (refer section B.6.1) used to calculate the net emission reduction for the project
activity is

ER = BE – PE – L…………………..(1)

Where,
ER - Net Emission Reduction in tCO2/year
BE - Baseline emissions in tCO2/year
PE - Project emissions in tCO2/year
L - Leakage emissions in tCO2/year

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This project activity is grid connected wind power generation. Hence there is no project emission and
leakage from the project activity. There is no GHG emission within the project boundary.

Therefore the above equation is simplified to

ER = BE

Baseline emissions (BE)


BE are calculated by multiplying the net quantity of electricity supplied by this project activity (EG) with
the CO2 baseline emission factor for the electricity displaced due to the project (EF) as follows:

BE = EG*EF……………………….(2)

Where:

EF = Baseline emission factor


EG = Net electricity supplied to the southern regional grid

The calculation of emission reductions are as follows:

EF = 0.9275 tCO2/MWh

EG = Net electricity supplied to the southern regional grid

EG = 11505 MWh/year

Putting EG and EF in formula (2)

ER = 11505 *0.9275
= 10671 tCO2/year

Net Emission Reduction (ER) = 10671 tCO2/year

The resultant values of the Operating and Built margins have been summarised as per the CEA
calculations in Annex 3 of the PDD.

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


>>
Year Estimation of Estimation of Estimation of Estimation of
project activity baseline leakage overall emission
emissions emissions (t CO2e) reductions
(t CO2 e) (t CO2e) (t CO2e)

July, 2008 - June, 2009 0 10671 0 10671


July, 2009 - June, 2010 0 10671 0 10671
July, 2010 - June, 2011 0 10671 0 10671
July, 2011 - June, 2012 0 10671 0 10671
July, 2012 – June, 2013 0 10671 0 10671
July, 2013 – June 2014 0 10671 0 10671
July, 2014 – June 2015 0 10671 0 10671

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Total (tonnes of CO2e) 74697

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

B.7.1 Data and parameters monitored:

Data / Parameter: EG
Data unit: MWh/year
Description: Net Electricity supplied to the grid
Source of data to be Monthly Joint Energy Meter Reading Reports of 17 electricity meters (with
used: reference to their HT SC Nos.) covering 25 WEGs.
Value of data
Brief description of Continuous measurement and monthly recording. The monitoring of ‘net
measurement methods electricity supplied to the grid’ would be as per the details provided in Power
and procedures to be Purchase Agreement signed between the TNEB and RINL. The HT SC No. for
applied: the individual or group of turbines represents the unique identification of the joint
meter. The net electricity supplied to the grid is calculated by the summation of
the net electricity export figures mentioned in the 17 joint meter reading reports.
QA/QC procedures to Every month these meter readings will be jointly recorded by TNEB
be applied: representative and plant personnel. The meters at the sub station will be two-way
meters and will be in the custody of TNEB. Since the readings will be taken at
the point of supply of power to the grid, the transmission and distribution losses
and the minimum reactive power consumption will already been taken into
account. The quantity of net electricity supplied will be cross-verified from the
invoice raised on TNEB by the project proponent. Also refer Annex 4.
Any comment: The data will be archived for crediting period + 2 years.

B.7.2 Description of the monitoring plan:


>>
As per monitoring Plan, for a small scale CDM project activity the only set of data to be monitored is the
net electricity output from the project. The net electricity supplied to TNEB grid is metered at grid
interconnection point.

To address all O&M issues, the project proponent has included one year O&M in the supply contract. The
project proponent will sign O & M contract with the WEG supplier at the time of expiry of initial
warranted O&M service period.

The service provider has formed a team of Technicians, Supervisors headed by the site manager to
effectively control and monitor the wind power generation. The net electricity exported from the project
activity to TNEB grid (interconnected with southern regional grid) is measured by the 17 TNEB
electricity meters (with reference to their HT SC Nos.) and a monthly statement is sent to the project
promoter. The monitored parameters have low level of uncertainty.

The proposed project activity requires evacuation facilities to deliver power to grid which is essentially
maintained by the state electricity utility (TNEB).

The project activity is operated and maintained by the SWL. The wind farm manager has been allocated
with the responsibility for safe operation of the wind farm and employees working. The wind power
project abides and will abide by all regulatory and statutory requirements as prescribed under the state
and central laws and regulations. A CDM project team has been constructed. The project team has
entrusted with the responsibility of storing, recording the data related to the project activity which is

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measured from the electricity meters. The project team is also responsible for calculation of actual
creditable emission reduction in the most transparent and relevant manner. Installed meters will be
calibrated by TNEB officials, according to the frequency and the maintenance schedule as per the TNEB
procedures.

The Organization and responsibility chart for the CDM project activity is described below.

Designation Responsibilities

1. Project Head (RINL) 1. Registration


2. Office Staff (RINL) 2. Project Execution
3. Project Coordination

1. Project Controller (RINL) 1. Operation


2. Site staff (RINL) 2. Verification of data
3. Site visit whenever necessary to
independently check the authenticity of
data and take corrective actions wherever
required.
4. Storage of data
1. Chief Manager (SWL) Site 1. Operation,
2. Vice President (SWL) Corporate office 2. Monitoring and Verification of Data
3. Data Recording
4. Data Storage
3. O & M Manager (SWL) 1. Operation and Maintenance
2. Storage of data
3. Data Recording

The monitored data will be archived for 20 (operational lifetime) + 2 years.

B.8 Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
>>
15/01/2008

Hetalkumar Shah
C/o Reliance Innoventures Limited
3rd floor, Reliance Energy Centre
Santa Cruz (E),
Mumbai – 400055
India
Tel : +91 22 30094283
Fax : +91 22 30099775
Email : [email protected]
The entity is also project participant as listed in Annex 1.

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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:


>>
28/12/2006 (Purchase order for supply of 25 Nos. of WEGs)

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


>>
20 years

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

C.2.1. Renewable crediting period

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


>>
01/07/2008 or from the date of registration of the project, which ever is later.

C.2.1.2. Length of the first crediting period:


>>
7 years

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:


>>

C.2.2.2. Length:
>>

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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:
>>
As per the prevailing host party laws, (the Schedule 1 of Ministry of Environment and Forests
(Government of India) notification dated September 14, 2006), 38 activities are required to undertake
environmental impact assessment studies. The details of these activities are available at
http://envfor.nic.in/legis/eia/so1533.pdf. However the Environmental Impact Assessment study is not
required for wind farm project as there is no negative environmental impact due to the project activity and
wind energy is one of the cleanest sources of energy.

However, the environmental aspects and impacts for the project activity were analysed and it was inferred
that there are no significant negative environmental impacts on air, water, noise and ecology. The
summarized findings are mentioned as below:

During construction phase

The construction phase involved erection of a WEG in their respective location. Although movement of
materials for erection produced some dust pollution, the impacts were negligible and did not have any
significant impact on the environment.

During operation phase

Impact on Air
There are absolutely no negative impacts on air due to the project activity.

Impact on water
No water is consumed for the project activity and no effluent is discharged from the project activity and
hence, there is no impact on water due to the project activity.

Impact due to odour


There is absolutely no odour issue due to the project activity.

Impact due to noise


There are no significant impacts on the environment due to noise.

Impact on ecology
There are no known endangered species in the vicinity of the project activity and hence no significant
impact on ecology.

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:
>>
There is no significant environmental impact due to this project activity and EIA is not required for
this project activity.

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SECTION E. Stakeholders’ comments


>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
The population (local community) of the nearby villages are the most important local stakeholders of the
project activity. The “Village Panchayat”, which is a body elected by villagers, is the local government
authority for the village. This Village Panchayat is the representative of the local community. The agenda
of the meeting was communicated to village sarpanch of the villages of the project activity and prominent
members, local villagers, contractors, security service providers and employees of the company.

The local stakeholders were invited for the meeting by sending a notice 15 days prior to the meeting date.

The meeting was planned at RINL wind farm site. As per plan the Local stakeholders had gathered to
know the concerns of the project activity and Clean Development Mechanism (CDM) initiatives by RINL
held at 11:00 hours on 10th April 2007 at RINL wind farm site.

This stakeholder meeting involved

a) Welcome address to the representatives of RINL, Mr Sameer Mathur


b) Introduction of project by Mr.R Shivakumar, Vice President, SWL
c) Public comments were invited at the consultation meeting with permission of Chair.
d) The stakeholders were provided clarifications on the issues raised as above to their satisfaction
e) Summation of the concerns expressed by the stakeholder groups & commitments to address the
concerns.
The meeting was conducted in Tamil and English languages both. The interested local stakeholders who
failed to attend the meeting were given option to send their comments by e-mail, fax or phone by 10 May
2007.

The Minutes of Meeting has been provided to DOE while validation of the project. The summary of the
meeting is given below.

RINL, the project promoter and SWL, the technology supplier explained the various technology features,
operation and function of the WEGs and associated benefits of this project activity. They also explained
the stakeholders about the eco-friendly nature of the project. The local village people unanimously agreed
that due to this project activity the employment opportunities for the local folk have increased to some
extent. There has been considerable improvement in the communication facilities in terms of construction
of roads etc. The project proponent has established good relationship with local people who ensure co-
operation for the successful and continuous operation of this project. The local people also agreed that
their infrastructure facility like road and transportation was improved due this project activity. And also
the business opportunities have been increased.

No negative comments were received from the stakeholders who attended the meeting.

No comments by e-mail, fax or phone have been received .

E.2. Summary of the comments received:


>>
No adverse comments were given by the involved stake holders.

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E.3. Report on how due account was taken of any comments received:
>>
As there are no adverse comments hence no action taken in this regard.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Reliance Innoventures Limited


Street/P.O.Box: Santacruz (E), 400 055
Building: 3rd floor, , Reliance Energy Centre
City: Mumbai
Region/Region: Maharashtra
Postfix/ZIP: 400 055
Country: India
Telephone: +91 22 30094283
FAX: +91 22 30094111
E-Mail: [email protected]
URL: -
Represented by: Hetalkumar Shah
Title: Additional Manager
Salutation: Mr.
Last Name: Shah
Middle Name:
First Name: Hetalkumar
Department:
Mobile: +91 9324216669
Direct FAX: +91 22 30094111
Direct tel: +91 22 30094283
Personal E-Mail: [email protected]

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

No public funding is involved in the project activity.

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Annex 3

BASELINE INFORMATION

CENTRAL ELECTRICITY AUTHORITY: CO2 BASELINE DATABASE

VERSION 3.0
DATE 15 December 2007
BASELINE METHODOLOGY ACM0002

Simple Operating Margin (tCO2/MWh) (incl.


Imports)
2004-05 2005-06 2006-07
South 1.00 1.01 1.00

Build Margin
(tCO2/MWh) (incl.
Imports)
2006-07
South 0.71

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Annex 4

MONITORING INFORMATION

The general conditions set out for metering, recording, meter readings, meter inspections, Test &
Checking and communication are as per the PPA (power purchase agreement) with Tamil Nadu
Electricity Board (TNEB).

Metering: The Delivered Energy is metered by the Tamil Nadu Electricity Board (TNEB) and RINL at
the high voltage side of the step up transformer installed at the Project Site.
The installed meters measure the electricity export and electricity import for each WEG or group of
WEG’s of the project which are designated by unique identification no. i.e. HT SC No. The details of HT
SC No of the WEG/group of WEG are discussed in the Appendix 1.

Metering Equipment: Metering equipment is electronic trivector meter of accuracy class 0.5% required
for the Project. Dedicated core of both CT’s and PT’s of required accuracy is made available by the RINL
to TNEB.

The meter is tested for accuracy time by time as per TNEB guidelines.

If during the tests, the meter is found to be beyond the permissible limits of error, the meter shall be
immediately calibrated and the correction applied to the reading registered by the meter to arrive the
correct reading of energy supplied for billing purposes for the period from the last month’s meter reading
up to the current test. Billing for the period thereafter till the next monthly reading shall be as per the
calibrated meter.

Calibration of instruments:
The meters installed at the wind farm are as per TNEB guidelines and accuracy level. The meters are
checked for accuracy on a regular basis. TNEB meter testing is done by a separate division of electricity
board, which takes care of meter testing in the event of any abnormality observed.

Archiving of data
Data shall be archived for 20 years (operational lifetime) + 2 years.

Monitoring methodology has also been discussed in section B.7.

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Appendix 1

WEG Commissioning Details

S.No Survey Field (S.F) No Village Name Voltage rating (KV) HT SC No Comm. Date
1 683/3C1 Myvadi 22 1400 24/03/2007
2 684/1C1,1C2 Myvadi 22 1402 24/03/2007
3 698/1D4 Myvadi 22 1401 24/03/2007
4 16/3A3 Vedapatty
5 33/1C3 Vedapatty
6 33/1A3B Vedapatty 22 1406 27/03/2007
7 31/1C1 Vedapatty 22 1407 27/03/2007
8 20/1A1A,21/1A Vedapatty 22 1408 27/03/2007
9 116/1A Jothampatty 22 1403 24/03/2007
10 116/1A Jothampatty 22 1404 24/03/2007
11 104/3C Jothampatty 22 1411 27/03/2007
12 104/1A4,1A5,1A6 Jothampatty
13 100/2B Jothampatty
14 100/2B Jothampatty 22 1413 27/03/2007
15 120/2A Jothampatty 22 1412 27/03/2007
16 420/2 Thungavi
17 418/2 Thungavi
18 418/2 Thungavi 22 1405 24/03/2007
19 416/2D,2E Thungavi 22 1416 27/03/2007
20 429/1 Thungavi
21 430/2L Thungavi 22 1414 27/03/2007
22 434/1C Thungavi 22 1415 27/03/2007
23 684/1A3 Myvadi 22 1410 27/03/2007
24 697/2A3,3A1,3A2,4A,4B Myvadi
25 697/2C2,2C3,3C1,3C2 Myvadi 22 1409 27/03/2007

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Appendix 2

Turbine Specifications

Details Type 225/40 KW

Over all Data


Cut in windspeed Approx. 4m/s
Cut out Windspeed Approx. 25m/s
Rotor Revolutions 37.5/25 rpm
Hub height (optional) 50 m
Regulation Stall
Gear Box
Type Helical
Gear Ratio 1:40
No.of steps 2
Generator
225/40 KW
Rated Power Output
Asynchronous
Type
3phase
Voltage
400V
Revolutions
1500/1000 rpm
Frequencies
50 Hz
Tower
Polygon
Type
50 m
Height (Optional)
Steel plate
Material
4
Sections
Inside the tower

Rotor
No. of blades 3
Diameter 29.8 m
Swept area 698sq.m
Material Polyester reinforced
Fiberglass

Brake System
Mechanical
Failsafe disc brake
Yaw System
Siewing system with
Gearmotors yawing
Controls Micro Processor based

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Appendix 3

Assumptions considered in the investment analysis

OPERATING Value Unit


Tariff Rate 2.70 Rs./ Unit
Estimated Escalation in unit rate 0.00 Rs / unit / annum
Insurance 25.0 Lacs Rs per annum
O&M cost 25.0 Lacs Rs per annum
O&M Free (No of years) 1.0
Escalation - Annual 5.0%
Income Tax Rate 33.99% per annum
MAT Rate 11.33%
Depreciation 80.00%

TECHNICAL Value Unit


WEG Capacity 225 KW
No of WEGs 25 Nos
Project Size 5.625 MW
Estimated Net Generation for
115.05 GWh per annum
project
Based on Wind Energy Resource
Plant Load Factor 23.35%
Survey (MNES) and WEG power curve
Working days 365 Days
Working hours per day 24 Hours

FINANCIAL
Debt 0%
Equity 100%

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Appendix 4

Abbreviations

CDM Clean Development Mechanism


CER Carbon Emission Reduction
CERC Central Electricity Regulatory Commission
CWET Centre for Wind Energy Technology
kWh Kilo Watt Hour
MWh Mega Watt Hour
GWh Giga Watt Hour
PDD Project Design Document
TNEB Tamil Nadu Electricity Board
TNERC Tamil Nadu Electricity Regulatory Commission
WEG Wind Electricity Generator
MOEF Ministry of Environment and Forest
HTSC High Tension Service Connection

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Appendix 5

Evidence of Management Decision

36

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