ssc pdd 6mw npc

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S S C P D D

6 MW Somanamaradi Grid-connected SHP

in Karnataka, India

September 2004

Narayanapur Power Company Ltd.Bharat Apartments, Ground Floor, No.44,Race Course Road, Bangalore 560001,

Karnataka, India.10-5-6/B, My Home Plaza, Masab Tank,

Hyderabad 500 028, Andhra Pradesh, India


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SSC PDD: 6 MW Somanamaradi grid-connected SHP in Karnataka, India

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CONTENTS

A. General description of project activity

B. Baseline methodology

C. Duration of the project activity / Crediting period

D. Monitoring methodology and plan

E. Calculations of GHG emissions by sources

F. Environmental impacts

G. Stakeholders comments

Annexes

Annex 1: Information on participants in the project activity

Annex 2: Stakeholders comments


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A. General description of project activity

A.1 Title of the project activity:

6MW Somanamaradi grid-connected SHP in Karnataka, India.

A.2. Description of the project activity:

(Please include in the description

- the purpose of the project activity

- the view of the project participants on the contribution of the project activity to sustainable development

(max. one page).)

A.2.1. Description of the project activity:

The project activity is generation of electricity using hydro potential available in an irrigation canal called

Narayanapur Right Bank Canal (NRBC) and exporting the generated electricity to the state ownedpower utility company Karnataka Power Transmission Corporation Ltd. (KPTCL). For this activity it isproposed to construct a small hydroelectric project where the hydro potential is available. The projectdesign comprises a diversion structure, power canal, penstock, powerhouse, power evacuation system andtailrace canal. No storage facility such as dam is envisaged in the project design and hence, the power will

be generated whenever water flow is available in the irrigation canal.

The irrigation canal originates from a reservoir constructed for irrigation purposes across the RiverKrishna. The River Krishna is one of the major rivers of Karnataka. Two dams are constructed, mainly forirrigation purposes, across the Krishna River, one at Alamatti and the other at Narayanapur. The

Narayanpur dam is 64 km downstream of Alamatti Dam. From Narayanapur dam two canals take-off onefrom left bank (Narayanapur Left Bank Canal or NLBC) and the other from right bank (NarayanapurRight Bank Canal or NRBC).

Development of irrigation system under the river Krishna is being undertaken by Krishna Bhagya JalaNigam Ltd., a Govt. of Karnataka enterprise. NRBC is envisaged with two schemes viz. Scheme - A andScheme B. Scheme A comprises construction of NRBC upto 95 km distance from the NarayanapurDam. Under Scheme B the NRBC will be extended further upto 153 km. After completion of Scheme B, the canal carries about 93 cumecs of water for irrigation purposes.

Presently, Scheme - A is completed and work under Scheme B is not started due to low water resources,poor ayakut development in the region and interstate disputes regarding sharing of water resources.Further, the failure of monsoons delayed the execution of NRBC. In view of the above, Scheme - B is not

yet approved by the Govt. of Karnataka for implementation and there is a high uncertainty with regard todevelopment of Scheme B.

The NRBC after its 55th km has a gradual level drop of around 20 meters and a sudden level drop ofaround 10 meters. The project participants envisaged construction of a hydroelectric power project toutilize the head drop for power generation. Power potential available at this location is around 12 MWwith a flow of 54 cumecs and a head drop of around 30 meters. However, due to the uncertainty ofavailability of water resources, the project proponents decided to implement the project in two stages.Stage I comprises installation of one unit of 6 MW capacity and when sufficient and sustainable waterflow is observed in the canal second unit of 6 MW capacity will be installed under Stage II. However, itis unlikely that the second unit will be taken up for implementation.

Hence, the present proposed project activity involves installation of only one unit of 6 MW capacity. Dueto the uncertainties with regard to the availability of water in the canal the project proponents anticipated


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a net generation of 21 GWh per year, which reflects a PLF of 40%. The following are brief technicalparticulars of the project activity.

HydrologyDesign flow : 24.46 cumecsGross head : 35.74 meters

Net rated head : 32 meters

EnergyExpected annual generation : 20.60 GWhGeneration voltage level : 11 kVGrid interfacing voltage : 33 kV

Plant EquipmentHydro Turbine : Vertical shaft full KaplanType of generator : Synchronous

No. of generating units : 1 No.Capacity of generating unit : 6000 kW

A.2.2. Purpose of the project activity:

The main purpose of the project activity is to generate electrical energy through sustainable meanswithout causing any negative impact on the environment and to contribute to climate change mitigationefforts.

Apart from the generation of electrical power, the project also contributes to the following.

a) Sustainable development, through utilisation of renewable hydro resources available in the projectregion

b) Rural area development due to the location of the project being in rural areac) Capacity addition to the present installed capacity and increase in the energy availabilityd) Generation of additional employment

A.2.3. View of project participants about the project activitys contribution to sustainable development

Ministry of Environment and Forests, Govt. of India has stipulated the following indicators forsustainable development in the interim approval guidelines for CDM projects.

Social well being. The CDM project activity should lead to alleviation of poverty by generatingadditional employment, removal of social disparities and contribution to provision of basicamenities to people leading to improvement in quality of life of people.

Economic well being. The CDM project activity should bring in additional investment consistentwith the needs of the people.

Environmental well being. This should include a discussion of impact of the project activity onresource sustainability and resource degradation, if any, due to proposed activity; bio-diversityfriendliness; impact on human health; reduction of levels of pollution in general;

Technological well being. The CDM project activity should lead to transfer of environmentallysafe and sound technologies with a priority to the renewables sector or energy efficiency projectsthat are comparable to best practices in order to assist in upgradation of technological base.

Each of the above criteria is studied in the context of the project activity to ensure that the project activity

contributes to the sustainable development and meets the above criteria.


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As yet, the project has only one participant entity, Narayanpur Power Company (P) Ltd., who willbring in the required capital for setting up the project at its own risk and take decisions with regard to thetransaction of emissions credits. Contact details of the above project participant are given in Annex 1.

Contact information. The above project participant has appointed Zenith Corporate Services (P) Ltd.to deal with the matters of the CDM for the project activity and designated as an official Contact. Contactdetails are given in Annex 1.

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

A.4.1.1 Host country : India

A.4.1.2 State : Karnataka

A.4.1.3 Project location : Somanamaradi Village, Deodurga (Taluk), Raichur District,Karnataka state, India.

A.4.1.4 Detail description of the physical location, including information allowing the uniqueidentification of this project activity (max one page):

The project site is located in Somanamaradi village in Raichur district of Karnataka State. Geographical

references of the project site are Latitude 16 18 N and Longitude 76 45 E. The project is proposed onright side of the irrigation canal NRBC between 54.33 and 54.91 km marks. The project site is bearingRevenue survey nos.117, 129 and 89. Total area of land acquired for the project is 21.24 acres. The

physical location of the Karnataka state in India and project site in Karnataka state is shown in the mapsgiven below.

Map 1: Location ofKarnataka state (Marked in Yellow) in India


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Map 2: Physical location of the Project in Raichur district of Karnataka State

A.4.2. Type and Category(ies) and technology of project activity(Please specify the type and category of the project activity using the categorization of appendix B to the

simplified M&P for small-scale CDM project activities, hereafter referred to as appendix B. Note that

appendix B may be revised over time and that the most recent version will be available on the UNFCCC

CDM web site.

In this section you shall justify how the proposed project activity conforms with the project type and

category selected (for simplicity, the rest of this document refers to project category rather than

project type and category).

If your project activity does not fit any of the project categories in appendix B, you may propose

additional project categories for consideration by the Executive Board, in accordance withparagraphs 15 and 16 of the simplified M&P for small-scale CDM project activities. The final SSC-PDD

project design document shall, however, only be submitted to the Executive Board for consideration after

the Board has amended appendix B as necessary.)

(This section should include a description of how environmentally safe and sound technology and

know-how is transferred to the host Party, if such a transfer is part of the project.)

A.4.2.1 Type and Category

Since, the capacity of the proposed project is only 6 MW, which is less than the qualifying capacity of 15MW, the project activity can be regarded as a small scale CDM project activity and UNFCCC indicative

simplified modalities and procedures can be applied. The project activity utilises the hydro potential forpower generation and exports the generated power to the grid. According to small-scale CDM modalities


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the project activity falls underType I Renewable Energy Projects and category I-D Renewable

Electricity Generation for a grid.

A.4.2.2. Technology

The technology or power generation process using hydro resources is converting the potential energyavailable in the water flow into mechanical energy using hydro turbines and then to electrical energyusing alternators. The generated power will be transformed to match the nearest grid sub-station for

proper interconnection and smooth evacuation of power.

The powerhouse comprises one number of synchronous generator of a capacity 6000 KW coupled to avertical shaft full Kaplan turbine. The generated voltage at the generator terminals will be 11 kV, whichwill be stepped-up to 33 kV to match the nearest substation voltage level.

A.4.2.3. Technology transfer

No technology transfer from other countries is involved in the project.

A.4.3. Brief explanation on how the anthropogenic emissions of anthropogenic greenhouse gas

(GHGs) by sources are to be reduced by the proposed CDM project activity.(Please state briefly how anthropogenic greenhouse gas (GHG) emission reductions are to be achieved

(detail to be provided in section B.) and provide the estimate of total anticipated reductions in tonnes of

CO2 equivalent as determined in section E. below.)

A.4.3.1. Emissions reductions from the project

The proposed project generates electrical power using hydro potential and exports the net generatedpower to the regional grid system. Hence, the generation by the proposed project activity is non-GHG

source and it is expected that the proportion of fossil fuel based generation in the grid will be reduced bythe project activity leading to lesser carbon intensity in the grid.

A.4.3.2 Quantity of emissions reductions out of the project:

Emissions reductions due to the project activity mainly depend on the energy fed to the regional grid andthe content of fossil fuel based generation in the grid system. Hence, the power fed to the regional gridand the generation mix in the baseline region becomes the basis for estimating emissions reductions.

The installed capacity of the project is 6 MW, which exports about 20.60 million kWh every year.Considering the present energy mix in the regional grid system, it is estimated that about 16,977 tons ofCO

2will be avoided every year

Implementation of the project is scheduled for completion during December 2004. Hence, the projectactivity starts generating emission reductions from the December 2004.

A.4.4. Public funding of the project activity

(Indicate whether public funding from Parties included in Annex I is involved in the proposed

project activity. If public funding from one or more Annex I Parties is involved, please provide

information on sources of public funding for the project activity in annex 2, including an

affirmation that such funding does not result in a diversion of official development assistance

and is separate from and is not counted towards the financial obligations of those Parties.)

Total funding required for the project is around Rs.307 millions (US$6.67 millions) which will be metthrough debt financing and equity capital. Debt portion, which is around 70% of the total investment, will


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be funded by Infrastructure Development Corporation (Karnataka) Ltd. and does not include any publicfunding from Annex I countries. The equity capital will be mobilised by the project proponents at theirown risk out of their resources. Apart from the above, no other funding is involved.

Hence, the project participants hereby confirm that public funding from parties included in Annex -I isnot involved in the project activity.

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

project activity.

(Please refer to appendix C to the simplified M&P for the small-scale CDM project activities for

guidance on how to determine whether the proposed project activity is not a debundled component of a

larger project activity.)

The project participants hereby confirm that the proposed project activity is not a debundled componentof a larger project activity.

The project participants further confirm that they have not registered any small scale CDM activity orapplied to register another small scale CDM project activity within the same project boundary, in thesame project category and technology/measure.

B. BASELINE METHODOLOGY

B.1 Title and reference for the project category applicable to the project activity

(Please refer to the UNFCCC CDM web site for the most recent list of the small-scale CDM project

activity categories contained in appendix B of the simplified M&P for small-scale CDM project

activities.)

B.1.1. Title of the project category : TYPE I RENEWABLE ENERGY PROJECT

B.1.2. Reference for the project category : I.D. RENEWABLE ELECTRICITYGENERATION FOR A GRID

B.2. Project category applicable to the project activity

(Justify the choice of the applicable baseline calculation for the project category as provided for in

appendix B of the simplified M&P for small-scale CDM project activities.)

The project category is renewable electricity generation for a grid system, which is also fed by both fossilfuel fired generating plants (using fossil fuels such as coal, natural gas, diesel, naphtha etc.) and non-

fossil fuel based generating plants (such as hydro, nuclear, biomass and wind). Hence, the applicablebaseline, as per Clause 29 of Appendix B, indicative simplified baseline and monitoring methodologies is


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the kWh produced by the renewable generating unit multiplied by an emission coefficient (measured inkgCO2/kWh) calculated in a transparent and conservative manner.

Under 29 of Appendix B, two methods of calculating the emission coefficient are given. First method i.e.29(a) is calculated as the average of the approximate operating margin and the build margin. The secondmethod i.e. 29(b) is the baseline as the weighted average emissions (in kgCO2/kWh) of the currentgeneration mix. Grid system and the baseline methodology for the proposed project activity are described

below.

B.2.1. Grid System

There are three choices available for choosing the grid system for the project activity, viz. national grid,regional grid or state grid.

Electricity system in India is one of the large systems in the world with over 112,0581 MW of installedcapacity base and annual energy generation of about 558,000 GWh. The electricity system comprises

both fossil fuel based generating plants such as coal, lignite, diesel, natural gas etc. and non-fossil fuelbased generation plants such as hydro, nuclear, wind etc. The entire electricity network in India iscomplex with regional grids and state grids having very low interconnection capabilities and widevariations in energy availability and mix. Hence, it is not appropriate to consider the national grid systemfor estimation of emission coefficient for a very small electricity project such as the proposed one.

National grid system is therefore not considered.

The electricity system in India is broadly divided into five regional grids viz. Northern, Western,Southern, Eastern and Northeastern regional grids. These regions have independent load dispatch centersthat manage the flow of power in their jurisdiction. Karnataka state is situated in the southern part of Indiaand is one of the major constituents of southern regional grid. The southern regional grid managed bySourthern Region Electricity Board (herein after SREB) comprising Andhra Pradesh, Karnataka, Kerala,

Pondichery and Tamilnadu states. These states under the regional grid have their own power generatingstations as well as centrally shared power generating stations. While the power generated by owngenerating stations is fully owned and consumed through the respective states grid systems, the powergenerated by central generating stations is shared by more than one state depending on their allocatedshare. SREB facilitates the share of power generated by the central generating stations. Presently theshare from central generating stations is a small portion of their own generation. The following table

provides detailed information on own power generation as well as share from central generation.

Table B.1: Allocated share for states from central generating stations in southern region

State levelState

State owned Private owned

CentralLevel

Total% of

Central

MW MW MW MW

Andhra Pradesh 6629 1137 2001 9767 20.5

Karnataka 4523 739 674 5936 11.4

Kerala 2032 208 804 3043 26.4

Tamilnadu 5416 1963 2389 9768 24.5

Pondichery 33 0 142 175 81.4

Unallocated 610 610

SREB Total 18632 4048 6620 29299 22.6

Source : Annual Report 2003-2004, Ministry of Power, Govt. of India.

1 Annual Report 2003-2004, Ministry of Power, Govt. of India.


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Recently the Electricity Act 2003 has been passed in the Parliament of India, which is expected to bringradical changes in the Indian Power Sector. Principle features of the Act include removal of licensingrequirements for power projects except hydro projects, open access system in transmission anddistribution, entry of private sector into distribution sector, phasing out cross subsidies, encouraging

power trading, defining regulator responsibilities and stringent anti-theft controls. The act would give afillip to the Indian Power Sector reforms and would result in more private sector participation.

The Union Budget 2003, with an objective of creating more conducive environment for investments inpower sector and continue power sector reforms, offered incentives for the power sector, which are givenbelow.

1. Extension of the Mega Power Policy to all projects above 1000 MW (thermal) and 500 MW(hydro) capacity. Earlier the Mega Power Policy is applicable to only 18 projects which were plannedfor the benefit of more than one state. Now, all projects fulfilling the megawatt criterion can qualifyfor mega power projects status. The features of this policy is waiver of customs duty (normally21.8%) as well as excise duty on all project imports, relaxation of sales tax, tax holiday for 10 years

and quicker clearances. As a result of this, capital costs of projects are likely to decline by asignificant 15%, which would translate into lowering the fixed cost component and ultimatelyreduction in the cost of generation.

2. Reduction in duty of high voltage transmission equipment from the previous 25% to 5%.3. Reduction in import duty on LNG equipment from previous 25% to 5%4. Complete exemption in import duty on capital goods for water treatment for power plants.

As a result of the above, it is expected that investments in the power sector and more so in transmissionand distribution sector would increase significantly in future. Further, all projects, which are presently in

planning stage awaiting financial closure would be placed in an encouraging situation. In addition, due toincreased flexibility for supplying power to more than one state, more focus would be laid for mega

power projects. Naturally, being high capacity projects, fuel for these projects would be either coal or

natural gas making the baseline more carbon intensive.

In addition, national grid is slowly emerging and the first phase is already completed. Though the nationalgrid plans are long-term plans targeted for completion in 2017, it is certain that the power transmissioncapacity between regions would increase in the near future.

In view of all the above, it is expected that more and more investments would flow into the large powerprojects rather than into small power projects. Further, it is anticipated that the power exchanges betweenstates and regions would increase in future than the present level. Hence, it can be safely assumed thatgrid system for the proposed project activity is the entire southern region grid encompassing all fivesouthern states.

Due to reasons explained above, and due to the anticipated growth in power exchanges between states thethird choice of Karnataka state grid system for the project activity is not considered.

B.2.2. Emission Co-efficient

Out of the two methodologies specified in the indicative simplified baseline and monitoringmethodologies, the second method viz. 29(b), the weighted average emissions (in kgCO2e/kWh), ischosen for the proposed project activity due to the following reasons.

The grid system chosen for the proposed activity is presently under deficit situation, as shown in Table : 2below. The grid system is facing 5.2% energy shortage and about 5.4% peak deficit. Further, as per the

16th

Electric Power Survey by Central Electricity Authority, the growth in the energy requirement isaround 6.2% till 2017. To meet the present energy demand and growth in the energy requirement during


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the crediting period2 about 20,000MW3 capacity shall be added which means mobilisation of hugefinancial resources into the power sector. Present planned capacity additions will not be sufficient to meetthe energy demand and it is most likely that all power generating plants will be in operation during thecrediting period. Hence, the weighted average emissions of the generation mix will represent the carbonintensity of the grid system.

Table B.2. Installed capacity mix and Energy supply position in the Southern Region

INSTALLED CAPACITY (MW) (As on 31.03.2004)

Thermal

EnergyDeficit

PeakDeficit

State HydroCoal Gas Diesel Total

Wind Nuclear TotalGWh MW

Andhra Pradesh 3572 4810 1112 37 5959 93 144 9767 1400 910

Karnataka 2954 2274 220 234 2728 124 130 5936 5008 768

Kerala 1807 398 524 256 1178 2 56 3043 497 263

Tamilnadu 1995 5251 762 412 6424 990 358 9768 623 227

Pondichery 0 130 33 0 163 0 12 175 0 0

Central Unallocated 0 530 0 0 530 0 80 610

SREB Total 10328 13393 2650 939 16982 1209 780 29299 7528 2168

INSTALLED CAPACITY (%) % %

Andhra Pradesh 36.6 49.2 11.4 0.4 61.0 0.9 1.5 100 2.9 10.5

Karnataka 49.8 38.3 3.7 3.9 46.0 2.1 2.2 100 13.9 12.4

Kerala 59.4 13.1 17.2 8.4 38.7 0.1 1.8 100 3.8 9.8

Tamilnadu 20.4 53.8 7.8 4.2 65.8 10.1 3.7 100 1.4 3

Pondichery 0.0 74.5 18.6 0.0 93.1 0.0 6.9 100 0 0

Central Unallocated 0.0 86.9 0.0 0.0 86.9 0.0 13.1 100

SREB Average 27.7 52.6 9.8 2.8 65.2 2.2 4.9 100 5.2 5.4

Source :

Insalled Capacity : Annual Report 2003-2004, Ministry of Power, Government of India

Energy Supply Position : Central Electricity Authority report for the period 2003-2004

Non-fossil fuel energy sources such as hydro, biomass, wind and nuclear are very limited such that theenergy development compared to the demand is very low. Ministry of Non-conventional Energy Sourceshas targeted an addition of 10% of the total installed capacity in the year 2001 i.e. 10,000 MW throughrenewable energy sources by the year 2012. Southern Region is expected to add about 26004 MWapproximately. But, it is unlikely to achieve this target due to limited renewable energy sources.Substantial nuclear capacity addition is not possible during the crediting period. Only two nuclear

projects are under construction in the southern region with a total capacity of 2,440 MW5, which areexpected to commission during 2007 and 2008. All major hydro sources are already exploited and

significant capacity additions to the system are not possible. Hence, the non-fossil fuel based powergeneration is not expected to contribute significantly such that the carbon intensity of the grid system isreduced.

2 Length of 1st Crediting period for the project activity is 7 years starting from 20053 Estimated based on the present capacity, deficit and projected growth in energy demand for the region

4 Total installed capacity in India in the year 2001 is about 100,000 MW. 10% of it is targeted for addition by theyear 2012 through renewable energy sources. As per the Annual Report of 2001-2002 of Ministry of Power,

installed capacity in Southern Region is 25,985 MW in the year 2001 and 10% of the installed capacity amounts to

2,599 MW which is expected to be added through renewable energy sources.

5

Nuclear Power Corporation of India Ltd. : Kaiga Atomic Power Project in Karnataka Units 3 & 4 of capacity, 2 x220 MWe, expected to be commissioned during 2007. Kudankulam Atomic Power Project in Tamilnadu Units 1 &2 of capacity 2 x 1000 MWe, expected to be commissioned during 2007 and 2008.


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In view of the above, the dependence will be only on fossil fuel based power generation sources such ascoal, lignite and natural gas. This will increase the grid system carbon intensity from the present level.

Although the fossil fuel based generation mix in the grid system increases during the crediting period,choice of weighted average emissions of the current generation mix (Option 29.b of simplified baselinemethodologies) as the baseline for the proposed project activity makes the estimation of emissionreductions conservative over the choice of average of operating and combined margin (Option 29.a ofsimplified baseline methodologies). Hence, the baseline methodology per 29.b. is appropriate to the

proposed project activity.

Since, the project capacity is small resulting in a small number of emission reductions, only the currentgeneration mix is projected as the constant baseline during the crediting period. This approach does notcall for reviewing the grid emission co-efficient every year ex post and reduces transaction costs to

project participants.

B.3. Description of how the anthropogenic GHG emissions by sources are reduced below those

that would have occurred in the absence of the registered CDM project activity. (i.e.explanation of how and why this project is additional and therefore not the baseline scenario) .

(Justify that the proposed project activity qualifies to use simplified methodologies and is additional using

attachment A to appendix B of the simplified M&P for small-scale CDM project activities.)

(National policies and circumstances relevant to the baseline of the proposed project activity shall be

summarized here as well.)

B.3.1. Justification for application of simplified methodologies to the project activity.

The capacity of the project is only 6 MW, which is less than the qualifying capacity of 15 MW to usesimplified methodologies. Further, the project activity is generation of electricity for a grid system using

hydro potential. Hence, the type and category of the project activity matches with I.D. as specified inAppendix B of the indicative simplified baseline and monitoring methodologies for small scale CDM

project activities.

B.3.2. Justification for additionality of the project

UNFCCC simplified modalities seek to establish additionality of the project activity as per Attachment Ato Appendix B, which listed various barriers, out of which, at least one barrier shall be identified due towhich the project would not have occurred any way. Project participants identified the following barriersfor the proposed project activity.

Barrier Analysis

Investment Barriers. The project activity faces the following perceived risks and barriers that preventproject proponents investing in the proposed project activity if it were not registered under the CDM.

a) Hydrology risks. Uncertainty with respect to the availability of water in irrigation canal on which theproposed project is being constructed is a major concern. The proposed project activity is purelybased on irrigation releases from the Narayanpur Dam. NRBC is commissioned only during 2003,hence, the data on irrigation releases is available for only for the year 2003. While the gauged data foronly one year is not sufficient for hydrology and power studies, project proponents had to depend onsimulation studies for estimating power generation potential. Further, the official hydrology studiesare based on the simulated data projected by the concerned irrigation department taking into

consideration the planned ayacut development. Requirement / consumption of water for irrigationcrops is not uniform and not metered. During the path of NRBC from the dam and upstream of the


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project site there are several branch canals which divert water for irrigation purposes in the region. Incase irrigation pattern at the upstream side of the proposed project changes due to local pressures thenthe water availability at the project site for power generation will be affected. Though sufficient headis available for power generation, due to uncertainty in the hydrology as explained above, the power

projections may not represent the true situation, which is a barrier for private investments.

b) Geology risks. The project design is contemplated to have approach canal and power canal bothlocated in a hilly terrain. Further, due to the hilly terrain the water before reaching the weir point willcontinuously carry a lot of silt. This will block the flow of water into the channel and choke intake

pipes. Hence, the project operation demands frequent periodical maintenance at a remote place toremove the accumulated silt, reducing the plant availability for power generation. This will damagethe power channel, which in turn will effect power generation and unexpected plant outages. The

project will generate power only during 3 to 4 months time in a year. Any breakdown within thisperiod will affect operation of the power plant and power generation, since bringing back the plant inoperation may take considerable time during monsoon season.

c) Capacity risks. The irrigation canal is constructed up to 93 km from the Narayanpur dam andsupplying water for agriculture in the region. Presently, since the irrigation project under NarayanpurDam is partly completed and ayacut is not fully developed, water flows are restricted to a very small

portion of its design capacity. Ayacut in the region is expected to be developed over a period of timeand till such time full flow of water is not expected in the irrigation canal in the near future. Hence,during the initial years, the proposed project may not generate electricity to its full capacity asenvisaged.

d) Transmission risks. The nearest electrical sub-station of the KPTCL grid is located at a distance of 12km from the project site, which requires construction of long transmission system. The long distanceand low transmission voltage level results in transmission and distribution losses. Further, longtransmission system demands more attention for maintenance. This aspect makes a barrier for

conceiving the small-scale hydroelectric project.

e) Lack of infrastructure: The area where the project is proposed is an underdeveloped area. Noinfrastructure such as roads, electricity, communication, transportation and proper civic amenities etc.are available. The project proponents had to develop these facilities before implementation of the

project. This adds to the project cost and makes a burden for private investors in the hydroelectricsector.

f) Institutional barriers: Often government policies keep changing from time to time in the Karnatakastate. As for instance before 2 years the power purchase price was at Rs.3.20 per kWh with 5%annual escalation. The same has been revised twice since then, even a legally valid power purchaseagreement is in place. Now the price stands at Rs.2.90 per kWh with 2% annual escalation. Thisindicates inconsistency in government policies and no guarantee that the project receives the sametariff in future for the power fed to grid. This makes a significant barrier for the private sectorinvestments in the power sector in the Karnataka state.

Another critical issue is that the project proponents have to back down the generation wheneverrequired by the utility company, KPTCL. A clear clause is built into the Power Purchase Agreementto this effect (copy of the Undertakings of the PPA is furnished below). Accordingly, a significantrisk is existing for the project activity that demands shut down of the project in situations such as anemergency, surplus power situation, off-peak duration etc. This risk is already felt recently by someof the power developers in Karnataka when KPTCL issued orders to some of the power plantoperators to stop generating power due to low demand for power across the state during a particular

time. For seasonally operating small hydroelectric projects, risk associated with this PPA clausemakes a significant barrier.


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The river Krishna is east flowing river crossing three states Maharashtra, Karnataka and AndhraPradesh. Hence, the water resources are to be shared in a pre-determined proportion, due to whichdiversion of water into irrigation canals is restricted and the water availability for power generation isnot guaranteed. Hence, power generation is highly influenced by inter-state politics and regulations.

A clear indication of investment barriers for small hydroelectric projects in India is that the presentinstalled capacity of small hydroelectric projects6 is only at 1944 MW against the estimated potential of15,000 MW.

Prevailing practice

In the Indian power sector, the common practice is investing in only medium or large scale fossil fuelfired power projects, which is evident from a host of planned projects that comprises mostly large-scalefossil fuel based power generation projects. This is mainly due to the assured return on investment,economies of scale and easy availability of finances. This is also true in the Karnataka state also.

The share of electricity from small hydroelectric projects in Indias total installed capacity is very small.According to the latest statistics published by the Ministry of Non-conventional Energy Sources (MNES)

7

the total installed capacity of small hydroelectric projects is only at 1944 MW including projects underconstruction where as the Indias total installed capacity is around 112,058 MW8 as on 31 March 2004excluding small hydro, biomass and wind sources. This translates into a very small share of 1.7% fromsmall hydro sector. Further, as on date only a few comparable9 hydroelectric plants are commissioned inKarnataka state. This shows that the investing in small hydroelectric sector is not a common practice andcould not diffuse in the small hydroelectric sector.

In view of the above, the proposed project is additional and not the same as the baseline scenario.

Evidence for CDM revenues in project planning

Construction of the project commenced in June 2003. Additional revenues under the CDM of KyotoProtocol from sale of emissions reductions were considered during the projects planning stage. Eventsleading to the development of the project under CDM are furnished below, which will show that CDMrevenues are considered before start of the projects construction activities.

a) Project proponents i.e. M/s Narayanapur Power Company (P) Ltd. started negotiations with ZenithCorporate Services (P) Ltd. (Zenith) during February 2003 for developing the project under CDM andlater appointed Zenith as their consultant for CDM activities during April 2003. Documentaryevidence is available for verification.

b) Zenith started developing the project as per small scale CDM modalities & procedures andpresented

10the project activity to GTZ, an Indo-German Energy Programme, for necessary funding

for development of PDD. GTZ has selected the project for funding the development of PDD and otheractivities during September 2003. The PDD was developed by Zenith with the financial assistancefrom GTZ. Documentary evidence is available for verification.

6 According to MNES, small hydroelectric projects are those which have installed capacity less than 25 MW.7 Website of Ministry of Non-conventional Energy Sources www.mnes.nic.in8 Annual Report 2003-04 of Ministry of Power, Govt. of India.9 Comparable plants to the proposed project are considered to be those hydroelectric plants with capacity between

75% and 125% of the capacity of the proposed project (between 4.5 MW and 7.5MW) and those plants which arecommissioned after 1 January 2000.10 In response to the call for CDM projects by GTZ under capacity building programme


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c) During negotiations on power purchase tariff with the state owned power utility company KarnatakaPower Transmission Corporation Ltd. (KPTCL) for evacuation of the generated power to the KPTCLgrid, project proponents had to agree in principle to share the benefits accruing on account of thecarbon credits at the ratio 30:70 between the project proponents and the KPTCL. Subsequently, aPower Purchase Agreement was signed on 5 November 2003 between the project proponent andKPTCL, which contains a clause on sharing of CDM revenues. Power Purchase Agreement will be

provided for verification.

d) The project was presented to the Indian DNA, i.e. Ministry of Environment & Forests (MoEF), Govt.of India during early 2004 for host country approval. MoEF has recently accorded host countryapproval for the project activity. Documentary evidence is available for verification

Impact of CDM revenues

Approval and registration of the project as a CDM activity enable the project proponents to accessadditional revenues by selling CO2e emission reductions. It is estimated that the project would generate

around 16,977 CERs per year. Assuming a sale price of 6US$ per CER, additional gross revenues fromthe sale of CERs account for US$101,862 or Rs.4.69 millions per year.

All the barriers described earlier are of perceived risks associated with the project activity and theadditional revenue would only alleviate risk factors and act as margin money in the event of occurringany unexpected breakdowns. For instance, additional revenue could compensate financial losses arisingout of lack of water resources for power generation or breakdown of the power canal due to silting orreduction of power purchase price by KPTCL etc. The additional revenue is equivalent to an additionalgeneration of 1.21 million units per year11 or around 5.76% increase in the plant load factor.

B.3.3. National policies and circumstances relevant to the baseline

National policies and circumstances relevant to the baseline are already explained under Section B.2.

B.4. Description of the project boundary for the project activity

(Define the project boundary for the project activity using the guidance specified in the applicable project

category for small-scale CDM project activities contained in appendix B of the simplified M&P for small-

scale CDM project activities.)

Project boundary specified in the Appendix B of simplified modalities and procedures is thatencompasses the physical, geographical site of the renewable generation source.

For the project activity under consideration, the project boundary considered encompasses the diversionstructure, power canal, penstock, powerhouse, power evacuation system and tailrace canal.

B.5. Details of the baseline and its development

B.5.1. Baseline for the proposed project activity

Specify the baseline for the proposed project activity using a methodology specified in the applicable

project category for small-scale CDM project activities contained in appendix B of the simplified M&P

for small-scale CDM project activities:

As explained in Section B.2, the project activity is generation of electricity for a grid system which is alsoserved by other fossil and non-fossil fuel based generating units. Hence, the applicable baselinemethodology for the proposed project activity is as per Clause 29 of indicative simplified baseline and

monitoring methodologies, which states that the baseline is kWh produced by the renewable generating

11 Considering 6 US$ / CER, 25% transaction costs and power purchase tariff at 2.90 Rs. / kWh.


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unit multiplied by an emission co-efficient (measured in kgCO2e/kWh). The baseline is estimated usingthe method specified under 29.b. i.e. weighted average emissions of the current generation mix, which isconsidered appropriate to the project activity.

B.5.2. Date of completing the final draft of the baseline: 18 September 2004

B.5.3. Name of the entity determining the baseline : Zenith Corporate Services (P) Ltd.

Contact information is provided in the Annexure 1, information on project participants.

C. Duration of the project activity / Crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity (DD/MM/YYYY) :01.12.2004(For a definition of the term starting date, please refer to the UNFCCC CDM web site).

Starting date: Starting date applied to the project activity is the expected date of recordable export ofpower to the grid by the project activity, which means that from the starting date, the anthropogenicemissions are considered being reduced by the project activity.

C.1.2. Expected operational lifetime of the project activity : 30y-0m

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

(Please underline the selected option (C.2.1 or C.2.2) and provide the necessary information for that

option.)

(Note that the crediting period may only start after the date of registration of the proposed activity as a

CDM project activity. In exceptional cases, the starting date of the crediting period can be prior to the

date of registration of the project activity as provided for in paragraphs 12 and 13 of decision 17/CP.7

and in any guidance by the Executive Board, available on the UNFCCC CDM web site.)

C.2.1. Renewable crediting period (at most seven (7) years per period)

C.2.1.1.Starting date of the first crediting period (DD/MM/YYYY) : 01.12.2004

C.2.1.2.Length of the first crediting period : 7 Years

C.2.2. Fixed crediting period (at most ten (10) years):

C.2.2.1.Starting date (DD/MM/YYYY) :

C.2.2.2.Length :


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D. Monitoring methodology and plan

(The monitoring plan shall incorporate a monitoring methodology specified for the applicable project

category for small-scale CDM project activities contained in appendix B of the simplified M&P for small-

scale CDM project activities and represent good monitoring practice appropriate to the type of project

activity.

The monitoring plan shall also provide information on the collection and archiving of the data specified

in appendix B of the simplified M&P for small-scale CDM project activities to:

- Estimate or measure emissions occurring within the project boundary;

- Determine the baseline, as applicable;

- Estimate leakage, where this needs to be considered.

Project participants shall implement the registered monitoring plan and provide data, in accordance with

the plan, through their monitoring reports.

Operational entities will verify that the monitoring methodology and plan have been implemented

correctly and check the information in accordance with the provisions on verification. This section shall

provide a detailed description of the monitoring plan, including an identification of the data to be

collected, its quality with regard to accuracy, comparability, completeness and validity, taking into

consideration any guidance contained in the methodology, and archiving of the data collected.

Please note that monitoring data required for verification and issuance are to be kept for two years after

the end of the crediting period or the last issuance of CERs for this project activity, whichever occurs

later.

An overall monitoring plan that monitors performance of the constituent project activities on a sample

basis may be proposed for bundled project activities. If bundled project activities are registered with an

overall monitoring plan, this monitoring plan shall be implemented and each verification/certification of

the emission reductions achieved shall cover all of the bundled project activities.)

This monitoring plan is developed in accordance with the modalities and procedures for small-scale CDMproject activities and is proposed for the 6MW Somanamaradi grid-connected small hydroelectric projectbeing implemented in Karnataka state, India. The monitoring plan, which will be implemented by theproject participants, describes about the monitoring organisation, parameters to be monitored, monitoringpractices, QA and QC procedures, data storage and archiving.

MONITORING ORGANISATION


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The authority and responsibility for registration, monitoring, measurement, reporting and reviewing of thedata rests with the Board of Directors who may delegate the same to a competent person identified for the

purpose. The identified person, in the rank of General Manager, will be the incharge of the GHGmonitoring activities within projects functioning. The General Manager will be assisted by a team ofexperienced personnel in disciplines such as mechanical and electrical with experience in plant operation,measurements and management. The primary responsibility of the team is to measure, monitor, recordand report the information on various data items to the General Manager, in accordance with theapplicable standards. Periodic calibration of various instruments used in the monitoring of GHG relateddata and record keeping of the same also will be the responsibility of the team.

The responsibility of review, storage and archiving of information in good condition lies with the GeneralManager. General Manager will undertake periodic verifications and onsite inspections to ensure thequality of the data collected by the team and initiate steps in case of any abnormal conditions. TheGeneral Manager will review the data collected by the team and suggest corrective actions whereverrequired. An internal audit report will be prepared for review by the Board of Directors, which will be

later submitted for verification by an independent entity. Board of directors will examine the internalaudit reports and will in particular take note of any deviations in data over the norms and monitor that thecorrective actions have resulted in adherence to the standards.

The team including the General Manager will be appointed by the Board of Directors, in advance beforethe start of project operations. The General Manager will report to the board of directors and seekguidance in case of conflicts or difficulties in order to maintain the monitoring organisation in good spirit.

PARAMETERS REQUIRING MONITORING

This monitoring plan requires monitoring of only one parameter i.e. the power exported to the KPTCLgrid system. Necessary documents required for verification of the data will be maintained for later

archiving. Using the power exported to the grid, emission reductions will be estimated as illustrated inSection E. Emission reductions generated by the project will be monitored at regular intervals and will bereported to the board of directors.

QA AND QC PROCEDURES

The project employs latest state of art microprocessor based high accuracy monitoring and controlequipment that will measure, record, report, monitor and control of various key parameters of the plant.These monitoring and controls will be part of the control system of the hydroelectric plant. Necessarystandby meters or check meters will be installed, to operate in standby mode when the main meters arenot working. All meters will be calibrated and sealed as per the industry practices at regular intervals.Records of calibration certificates will be maintained for verification. Hence, high quality is ensured withthe above parameters. Sales records will be used and kept for checking the consistency of the recordeddata.

DATA STORAGE AND ARCHIVING

All the data items monitored under the monitoring plan will be kept for 2 years after the end of creditingperiod or till the last issuance of CERs for this project activity whichever occurs later.


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The monitored data will be presented to an independent verification agency or DOE to whom verificationof emission reductions is assigned.

D.1. Name and reference of the approved methodology applied to the project activity.

(Please refer to the UNFCCC CDM web site for the most recent version of the indicative list of

small-scale CDM project activities contained in appendix B of the simplified M&P for small-scale CDM

project activities.)

(If a national or international monitoring standard has to be applied to monitor certain aspects of the

project activity, please identify this standard and provide a reference to the source where a detailed

description of the standard can be found.)

The name of the methodology applied for the project activity is Metering the Electricity Generated.This is in accordance with the Appendix B of simplified modalities and procedures for small-scale CDM

project activities. The reference to the proposed monitoring methodology is Clause 31 of Appendix B of

simplified modalities and procedures for small-scale CDM project activities.

D.2. Justification of the choice of the methodology and why it is applicable to the project activity:

(Justify the choice of the monitoring methodology applicable to the project category as provided for in

appendix B.)

The project activity is generation of electricity using hydro potential and exporting the same to the gridsystem that is also fed by other fossil and non-fossil sources. Emission reductions due to the projectactivity are considered to be equivalent to the emissions avoided in the baseline scenario by displacing thegrid electricity. Hence, emissions reductions are related to the electricity exported by the project and theactual generation mix in the grid system. Since, the baseline emission factor is estimated based on the

weighted average emissions of the current generation mix and the same is used as the constant baselinefor the project activity during the crediting period, monitoring of actual generation mix in the grid systemis not required. Hence, the data to be monitored to ascertain emissions reductions out of the projectactivity is only the energy generated by the project. No leakage is identified by the project participantsdue to the project being run-of-the-river hydroelectric scheme.

Hence, the proposed methodology well suits to the project activity.


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SSC-PDD : 6 MW Somanamaradi grid-connected SHP in Karnataka, India

Page 20

D.3. Data to be monitored:

(The table below specifies the minimum information to be provided for monitored data. Please complete the table for t

proposed project activity from the simplified monitoring methodologies for the applicable small-scale CDM project act

simplified M&P for small-scale CDM project activities.

Please note that for some project categories it may be necessary to monitor the implementation of the project activity aemission reductions achieved.

Please add rows or columns to the table below, as needed)

The following data is to be monitored to ascertain project emissions and emissions reductions

ID

number

Data

type

Data

variable

Data

unit

Measured (m),

calculated (c)

or estimated (e)

Recording

Frequency

Proportion

of data to

be

monitored

How will

the data be

archived?

(electronic/

paper)

For how

long is

archived

data to be

kept?

D.3.1. Power generatedby the project

kWh m Monthly Full(100%

during the

month)

Paper(Only sales

records can

be verified)

2 years afterverification

Thth

gr

thTh

re

at Re

us

reSa

co

of


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D.4. Name of person/entity determining the monitoring methodology:

(Please provide contact information and indicate if the person/entity is also a project participant listed in

annex 1 of this document.)

The contact information of the entity, which has determined the monitoring methodology, is given below.

The above party is designated by the project participant provided in Annex -1 as an official contact forcommunications regarding the CDM activity of the project.

Organization: ZENITH CORPORATE SERVICES (P) LTD.

Street/P.O.Box, Building: 10-5-6/B, MYHOME PLAZA, MASABTANK,

City: HYDERABAD

State/Region: ANDHRA PRADESH

Postfix/ZIP: 500028

Country: INDIA

Telephone: +91 (40) 2337 6630, 2337 6631

FAX: +91 (40) 2332 2517

E-Mail: [email protected]

URL: www.zenithenergy.com

Represented by:

Title: DIRECTOR

Salutation: MR.

Last Name: REDDY

Middle Name: MOHAN

First Name: ATTIPALLI


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E. Calculation of GHG emission reductions by sources

E.1 Formulae used

(In E.1.1 please provide the formula used to calculate the GHG emission reductions by sources in

accordance with the applicable project category of small-scale CDM project activities contained inappendix B of the simplified M&P for small-scale CDM project activities.

In case the applicable project category from appendix B does not indicate a specific formula to calculate

the GHG emission reductions by sources, please complete E.1.2 below.)

E.1.1. Selected formulae as provided in Appendix B:

(Describe the calculation of GHG emission reductions in accordance with the formula specified for the

applicable project category of small-scale CDM project activities contained in appendix B of the

simplified M&P for small-scale CDM project activities.)

No specific formulae are specified for the applicable project category.

E.1.2. Description of formulae when not provided in Appendix B:

E.1.2.1.Describe the formulae used to estimate anthropogenic emissions by sources of greenhouse gasesdue to the project within in the project boundary (for each gas, source, formulae/algorithm,emissions in units of CO2 equivalent)

Since, the proposed project activity is run-of-the-river type hydroelectric project proposed on an irrigationcanal, no anthropogenic emissions by sources of greenhouse gases within the project boundary areidentified. Hence, no formulae are applicable.

E.1.2.2.Describe the formulae used to estimate leakage due to the project activity, where required for theapplicable project category in Appendix B of the simplified modalities and procedures for small-

scale CDM project activities. (for each gas, source, formulae/algorithm, emissions in units ofCO2 equivalent)

The project proponents identified no anthropogenic greenhouse gases by sources outside the projectboundary that are significant, measurable and attributable to the project activity. Hence, no leakage isconsidered from the project activity. In addition, it is confirmed herewith that the renewable energytechnology is not equipment transferred from another activity. Hence, no leakage calculation is required.

E.1.2.3.The sum of E.1.2.1 and E.1.2.2 representing the project activity emissions

The net project emissions from the project activity are given in the table below.

Table E.1 : Project emissions

Year 2005 2006 2007 2008 2009 2010 2011

Project Emissions(as per E.1.2.1)

0 0 0 0 0 0 0

Leakage (as perE.1.2.2)

0 0 0 0 0 0 0

Sum of aboveE.1.2.1. + E.1.2.2.

0 0 0 0 0 0 0

E.1.2.4.Describe the formulae used to estimate the anthropogenic emissions by sources of GHGs gasesin the baseline using the baseline methodology for the applicable project category in appendix B


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of the simplified modalities and procedures for small-scale CDM project activities: (for each gas,source, formulea/algorithm, emissions in units of CO2 equivalent).

As explained in Section B.2, the baseline for the project activity is kWh produced by the hydroelectricproject multiplied by an emission co-efficient calculated in a transparent and conservative manner as theweighted average emissions (in kgCO

2/kWh) of the current generation mix.

For the proposed project activity the current generation mix is taken for the Southern Region grid system.Central Electricity Authority publishes the annual energy generation from all power generating stations inthe grid system. The following table provides the actual generation monitored by the CEA from allgenerating sources in the southern region during the period April 2003 to March 2004.

Table E.2. Actual generation and baseline emissions

FuelGross

Generation

Auxiliaryconsumptionas per CEA

Netgeneration

CEF asper IPCC

Net heatrate as per

CEA

BaselineEmissions

GWh % GWh tC/TJ TJ/GWh tCO2Coal 78873 8 72563 25.8 11.357 77960254

Lignite 17791 8 16368 27.6 11.357 18811985

Gas * 19408 3 18826 15.3 8.615 9098497

Hydro 16670 0.5 16587

Nuclear 4700 12.29 4122

Total 128466 105870735

Baseline Emmission Co-efficient 824.12 tCO2/GWh

* Includes Diesel generation (Inclusion is Conservative)

Due to small quantity of generation, wind and biomass sources are not included above.

Source : Central Electricity Authority, Generation data for the period 2003-2004

Formula used for calculation of the baseline is given below.

Step 1 : Estimation of emissions from each fuel source

Emissions from each fossil fuel source are estimated using the following formula.

Emissions = Net x CEF x Net Heat Rate x Conversion

Generation for fuel Factor

tCO2 GWh tC/TJ TJ/ GWh 44

12

A sample calculation is furnished below.

= 72563 x 25.8 x 11.357 x 44 / 12

= 77960254 tCO2

In the above calculation, actual generation is obtained from CEA reports. Carbon Emission Factors (CEF)for fuels are taken from IPCC default emission factors. Since, collecting heat rates for all baseline plantsis difficult, only heat rates as specified by the Central Electricity Authority are taken. This is reasonablefor a small-scale project activity whose generation is negligibly small.

Using the above formula, emissions from each type of fossil fuel source are estimated. For non-fossil fuelsources such as hydro and nuclear, GHG emissions are not applicable.

Step 2 : Total Baseline emissions

Total baseline emissions are estimated by summation of emissions from all fossil fuel sources.


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Step 3 : Estimation of baseline or Emission Coefficient

Baseline emission factor is estimated as the weighted average of all existing generation sources using thefollowing formula.

Baseline = Baseline emissions / Total net energy in the system

Emission

factor

tCO2/GWh tCO2 GWh

= 105,870,735 / 128,466= 824.12 tCO2/GWh

Step 4 : Estimation of baseline emissions

Baseline emissions or emissions avoided by the project activity are estimated using the following

formula.

Baseline Emissions = Emission co-efficient x anticipated generation from

or avoided emissions (From Step 3) project activity

tCO2 tCO2/GWh GWh

Using the above formula, baseline emissions or emissions avoided by the project activity are estimated as16,977 tCO2 per annum. This is based on an anticipated net generation of 20.60 GWh from the project.The resulting baseline emissions during the crediting period are tabulated below.

Table E.3 : Baseline emissions during the 1st crediting period.

Year 2005 2006 2007 2008 2009 2010 2011Emissionco-efficienttCO2/GWh

824.12 824.12 824.12 824.12 824.12 824.12 824.12

Anticipatedgeneration,GWh

20.60 20.60 20.60 20.60 20.60 20.60 20.60

Baselineemissions,tCO2

16,977 16,977 16,977 16,977 16,977 16,977 16,977

E.1.2.5 Difference between E.1.2.4 and E.1.2.3 representing the emission reductions due to the

project activity during a given period.

Difference between E.1.2.4 and E.1.2.3, which represent the emission reductions of the project activityare given in the table given below.

Table E.4. : Emissions reductions due to the project activityYear 2005 2006 2007 2008 2009 2010 2011Baseline 16,977 16,977 16,977 16,977 16,977 16,977 16,977


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emissions,

E.1.2.4, tCO2

Project

emissions,

E.1.2.3, tCO20 0 0 0 0 0 0

Emissions

Reductions,E.1.2.4

E.1.2.3,

tCO2

16,977 16,977 16,977 16,977 16,977 16,977 16,977

E.2. Table providing values obtained when applying formulae above:

Values obtained when applying formulae are already given above in various tables above.

F. Environmental impacts

F.1. If required by the host party, documentation on analysis of the environmental impacts of

the project activity. (if applicable, please provide a short summary and attach documentation)


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As per the Ministry of Environment and Forests, Govt. of India, Environmental Impact Assessment is notrequired to be carried out for small hydro projects involving investment less than US$21.74 millions.Since, the total project cost is only US$ 6.7 millions, the proposed project does not call for anEnvironmental Impact Assessment. However, the project shall, prior to setting up, shall obtain clearancefrom Karnataka State Pollution Control Board (KSPCB). The project participants already approachedKSPCB and obtained clearance for setting up the project.

Further, the proposed project does not result in any negative impacts on the socio-economic environmentof the region. Displacement of local populace, disturbance in the local eco systems, deforestation etc. arenot involved.

Hence, in conclusion, the project does not cause any impacts on the environment or socio-economicsituation in the region.

G. Stakeholders comments

G.1. Brief description of the process by which comments by local stakeholders have been invitedand compiled:

Details are given in Annex 2: Stakeholders comments.

G.2. Summary of the comments received:

No comments are received on the project.

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

No comments are received; hence, no action taken report is applicable.


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Annex -1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

PROJECT PARTICIPANT 1

Organization: NARAYANAPUR POWER COMPANY (P) LTD.

Street/P.O.Box, Building: BHARAT APARTMENTS, GROUND FLOOR, NO.44, RACECOURSE ROAD

City: BANGALORE

State/Region: KARNATAKA

Postfix/ZIP: 560001

Country: INDIA

Telephone: +91-80-228 2664

FAX: +91-80-220 0400

E-Mail:

URL:

Represented by:

Title: VICE PRESIDENT

Salutation: MR.

Last Name: A. V. BALA KRISHNA

Middle Name:

First Name:

Department:

Mobile:

Direct FAX:

Direct tel:

Personal E-Mail:

OFFICIAL CONTACT FOR CDM ACTIVITIES

Organization: ZENITH CORPORATE SERVICES (P) LTD.

Street/P.O.Box, Building: 10-5-6/B, MY HOME PLAZA, MASAB TANK,

City: HYDERABAD

State/Region: ANDHRA PRADESH

Postfix/ZIP: 500028

Country: INDIA

Telephone: +91 (40) 2337 6630, 2337 6631

FAX: +91 (40) 2332 2517

E-Mail: [email protected]

URL: www.zenithenergy.comRepresented by:

Title: DIRECTOR

Salutation: MR.

Last Name: REDDY

Middle Name: MOHAN

First Name: ATTIPALLI

Department:

Mobile:

Direct FAX:

Direct tel:

Personal E-Mail:


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Annex 2

STAKEHOLDERS COMMENTS

IDENTIFICATION OF STAKEHOLDERS

The project participants identified the following stakeholders for the project activity.

a) Local Populace represented by the Village Panchayatb) Karnataka Renewable Energy Development Ltd. (KREDL)c) Karnataka Power Transmission Corporation Ltd. (KPTCL)d) Karnataka State Pollution Control Board (KPCB)e) Energy Department, Govt. of Karnatakaf) Krishna Bhagya Jala Nigam Ltd. (KBJNL)

STAKEHOLDERS INVOLVEMENT

All the above identified stakeholders are statutory organizations / governing bodies and need to beconsulted and personally approached with necessary documentation to seek their approvals / clearances /licenses before setting up any project. After scrutiny of the documentation, the stakeholders release theirconsent / licenses / approvals to the project participants.

The local populace is represented by the Village Panchayat, which is an elected body for administrationof the village. Clearance from the concerned Village Panchayat in the form of No Objection Certificateis mandatory for any project before starting implementation. For this purpose, the project proponents needto conduct a meeting within the village with the Village Panchayat together with the villagers. If thevillagers satisfy the project proponents submission, the Village Panchayat issues No ObjectionCertificate.

STAKEHOLDERS COMMENTS

The project participants already consulted and approached the above stakeholders for implementation ofthe project. No negative comments are received from them. Necessary clearances / approvals are alreadyreleased in favour of the project.

Village Panchayat issued No-Objection Certificate to set up the project. In fact, the local populace iswelcoming the project due to various benefits like development of infrastructure in the area andimprovement in socio-economic standards due to the project activity.

KREDL is the policy implementation body in respect of renewable energy projects in the Karnataka

State. KREDL reviewed the project documentation about the legal, financial, economical andenvironmental feasibility and accorded clearance for utilising renewable energy sources.

Energy Department, Govt. of Karnataka also endorsed the project for implementation.

KSPCB has issued consent to establish the project.

KPTCL will give clearance for evacuation and feeding of power to the grid. This will be through properPower Purchase Agreement. The company had extensive discussions with KPTCL and signed the PowerPurchase Agreement.

KBJNL is a statutory body set up for managing water flows in the Krishna River. Since for the proposedproject water resource is from NRBC, which originates from the River Krishna, the project proponentsshall obtain their approval. KBJNL already accorded clearance for the project.

ssc pdd 6mw npc

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