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

    CDM Executive Board

    1

    CLEAN DEVELOPMENT MECHANISM

    PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)

    Version 03 - in effect as of: 22 December 2006

    CONTENTS

    A. General description of the small scale project activity

    B. Application of a baseline and monitoring methodology

    C. Duration of the project activity / crediting period

    D. Environmental impacts

    E. Stakeholders comments

    Annexes

    Annex 1: Contact information on participants in the proposed small scale project activity

    Annex 2: Information regarding public funding

    Annex 3: Baseline information

    Annex 4: Monitoring Information

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    Revision history of this document

    Version

    Number

    Date Description and reason of revision

    01 21 January

    2003

    Initial adoption

    02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect

    guidance and clarifications provided by the Board since

    version 01 of this document.

    As a consequence, the guidelines for completing CDM SSC

    PDD have been revised accordingly to version 2. The latest

    version can be found at

    .

    03 22 December

    2006 The Board agreed to revise the CDM project design

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

    into account CDM-PDD and CDM-NM.

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    SECTION A. General description of small-scale project activity

    A.1 Title of the small-scale project activity:

    1.50 MW Wind Power Project by JC Retail India Pvt. Ltd. Pune Maharashtra, India

    Version 02

    29/11/2010

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

    Jai Hind Collections Retail India Private limited, (J.C Retail India Pvt. Ltd ) has envisaged the installation

    of 1.5 MW wind turbine to generate electricity. The wind turbine of 1.5 MW capacity is being

    implemented in the state of Rajasthan at village Ratan Ka Bas of Jodhpur district. The project is aGreenfield activity at the project site which has been recently developed by the technology provider. Prior

    to the project activity electricity would have been generated from already installed grid connected power

    plants, which is also taken as the baseline for the project activity as explained in section B.4.

    The installed capacity of India has grown tremendously over years and has reached to 147.965 GW in

    2009. However, it is dominated by coal-based thermal generation which amounts to 77.649 GW out of

    total thermal generation capacity of 93.725 GW1. The share of renewable resources is still very low

    amounting to approximately 9% of the total installed capacity. The Indian power system has been divided

    into two independent grids viz. NEWNE and Southern grid. NEWNE grid is an integrated grid

    comprising regional grids of northern, eastern, western & north-eastern regions. The electricity generated

    from the project activity (WTG) will feed into NEWNE grid. The project activity installs model S82 of

    Suzlon make WTG which is designed for generating the optimal power output at sites with a modest windspeed regime like Rajasthan. Wind turbine transforms the kinetic energy of wind into mechanical energy

    which is further converted into electrical energy. There are no associated greenhouse gas emissions in the

    electricity generation process since it utilizes a clean energy source. Thus it reduces equivalent amount of

    GHG emissions that would have been generated in the absence of the project activity from the grid

    connected power plants which is dominated by fossil fuel based thermal power plants.

    With todays technology, it has become possible to generate electricity from wind on a commercial scale.

    Although wind based electricity generation is not an economical option, sustainable development

    mechanisms like CDM help to alleviate the financial risk associated with the project and motivate project

    developers to invest in wind energy. The project activity is expected to deliver approximately 2.65 GWh

    annually to the NEWNE Grid. In the absence of the project activity the same amount of electricity would

    have been produced from the fossil fuels leading to more emissions of GHG which are avoided by thisproject activity.

    Project Contribution towards Sustainable Development

    Ministry of Environment and Forests, Govt. of India has stipulated the social well being, economic well

    being, environmental well being and technological well being as the four indicators for sustainable

    development for Clean Development Mechanism (CDM) projects. The proposed project activity

    contributes to these aspects in the following manner.

    Social well being

    1http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver5.pdf

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    Rural and infrastructural development in the areas around the project.

    The project activity has assisted in higher interaction amongst the local villagers thereby

    increasing the flow of information in the villages thereby increasing the levels of awareness andknowledge in the community.

    Contribution towards achievement of the objectives of Government of India's policy on wind

    power generation.

    Environmental well being Reduction in the consumption of fossil fuels in the grid for generating additional electricity

    equivalent to that generated by the wind turbine.

    Reduction of GHG emissions associated with fossil-fuel based electricity generation in the grid.

    Economic well being Assisting in economic development of remote villages in Rajasthan by making investment in that

    area. As a result of huge amount of investment, lot of ancillary and utility units may open up, which

    will provide employment opportunities to local people, thus bringing about economic well being.

    Technological well being The successful implementation of project activity encourages other entrepreneurs to adopt this

    technology and invest in wind energy

    A.3. Project participants:

    Name of Party involved

    (*)((host) indicates a host

    party)

    Private and/or Public entity

    (ies) Project Participants (*)as applicable

    Kindly indicate if the party involved

    wishes to be considered as a project

    participant(Yes / No)

    Government of India(Host Country)

    J C Retail India Pvt. Ltd.

    (Private Entity)No

    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.:

    State : Rajasthan

    A.4.1.3. City/Town/Community etc:

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    Village: Ratan Ka Bas

    District: Jodhpur

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

    this small-scale project activity :

    WTG Location No. Village Name Latitude Longitude

    RKB 32 Ratan Ka Bas N 260

    29' 54" E 720

    30' 46.2"

    State: Rajasthan

    District: Jodhpur

    Village: Ratan Ka

    Bas, District:

    Jodhpur

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

    Type: I - Renewable energy projects

    Project category: I.D. Electricity generation for a system

    The project is a renewable energy project with maximum output capacity of 1.5 MW and is well below

    the specified limits of 15 MW of maximum output capacity as per Appendix B of the simplified

    modalities and procedures for small-scale project activities. Hence it qualifies for the mentioned type and

    category.

    Technology to be employed by the project activity:

    Project activity involves installation of Suzlon make WTG S82-1500 kW whose technical details are

    furnished in the table below. The 1.5 MW S82 Model is based on robust design with pitch regulatedblade operation, a 3-stage gearbox with 1650 kW rating and flexible coupling to the asynchronous

    induction generator. The Flexi-slip System provides efficient control of the load and power control. The

    S82-1500 kW is designed to withstand extreme conditions and operate effectively with low maintenance

    cost. The project lifetime is 20 years as specified by the technology supplier. A plant load factor of 21%

    has been assumed as mentioned in tariff order of Rajasthan2, in order to account for variation in PLF a

    senstivity analysis for both 10% increment and decrement has been included in the calculations of

    section B.5. Wind, being a renewable source of energy can produce renewable electricity and replaces

    the equivalent amount of electrical power at regional grid which otherwise would have been generated

    from fossil fuel based power stations, as conventional in India. Therefore, the project reduces emissions

    (as calculated in the subsequent sections A.4.3 & B.6.3) corresponding to the amount of electricity that

    could have been emitted because of the fossil fuel use in absence of this project activity.

    Technical details of 1500 KW Suzlon make WTG:

    MODEL S82-1500kW

    OPERATING DATA

    Rated power 1500 kW

    Cut-in wind speed 4 m/s

    Rated wind speed 14 m/s

    Cut-off wind speed 20 m/s

    Survival wind speed 52.5 m/s

    ROTOR

    Type 3 Blades, Upwind / Horizontal axis

    Diameter 82 m

    Rotational speed at rated power 15.6 to 18.4 rpm

    Rotor blade material Epoxy bonded fiber glass

    Swept area 5281 m2

    Power regulationActive pitch regulated with Suzlon Flexi Slip

    System

    GEARBOX

    Type 1 planetary stage / 2 helical stages

    Ratio 1 : 95.09

    2http://www.rerc.gov.in/Tenders_for_Works.pdf

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    Nominal load 1650 kW

    Type of cooling Forced oil cooling lubrication system

    GENERATOR

    Type

    Single speed induction generator with slip rings,

    variable rotor resistance via Suzlon Flexi slip

    system

    Speed at rated power 1511 rpm

    Rated power 1500 kW

    Rated voltage 690 V AC (phase to phase)

    Frequency 50 Hz

    Insulation Class H

    Enclosure IP 54 / IP 23 (slip ring unit)

    Cooling system Air cooled

    TOWER

    TypeTubular tower (corrosion proof painting on inner

    and outer surface) with welded steel plates

    Tower height 76 m

    Hub height (including foundation) Approximately 78.5 m

    BRAKING SYSTEM

    Aerodynamic braking 3 Independent systems with blade pitching

    Mechanical braking Hydraulic fail safe disk brake system

    YAW SYSTEM

    Type Active electrical yaw motor

    BearingPolyamide Slide bearing with gear ring &

    automatic greasing system

    Protection Cable twist sensor, proximity sensor

    PITCH SYSTEM

    Type3 independent blade pitch control with battery

    backup for each blade

    Operating range -5 to + 90

    Resolution 0.1 to 10 Deg

    CONTROLLER Suzlon Control System with following salientfeatures:

    Park slave

    Power output control / limitation

    Reactive Power control

    Grid measurement

    Low voltage ride through (LVRT)

    Weather measurement

    Time synchronization

    Statistics

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

    YearsEstimation of annual emission reductions in tonnes of

    CO2e

    2010-2011 2,444

    2011-2012 2,444

    2012-2013 2,444

    2013-2014 2,444

    2014-2015 2,444

    2015-2016 2,444

    2016-2017 2,444

    2017-2018 2,444

    2018-2019 2,444

    2019-2020 2,444

    Total estimated reductions (tonnesof CO2)

    24,440

    Total number of crediting years 10

    Annual average of the estimatedreductions over the crediting

    period (tCO2)

    2,444

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

    No Public funding is flowing into the project activity.

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

    large scale project activity:

    As per 'Guidelines on assessment of de-bundling for SSC project activities' Annex 13 to EB 54, para

    2, 'A proposed small-scale project activity shall be deemed to be a debundled component of a large

    project activity if there is a registered small-scale CDM project activity or an application to register

    another small-scale CDM project activity :

    (a) With the same project participants;

    (b) In the same project category and technology/measure;

    (c) Registered within the previous 2 years; and

    (d) Whose project boundary is within 1 km of the project boundary of the proposed small- scale

    activity at the closest point.

    The project Participant have not registered any small scale CDM activity or applied to r egisteranother small scale CDM project activity within 1 km of the project boundary, in the same projectcategory and technology/measure in previous 2 years.

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    SECTION B. Application of a baseline and monitoring methodology

    B.1. Title and reference of the approved baseline and monitoring methodology applied to the

    small-scale project activity:

    Title: Grid Connected Renewable Energy Generation3, Version 16, EB 54, sectoral scope 01

    Reference: Appendix B of the simplified modalities & procedures for small scale CDM project activities

    The methodology also refers to latest approved versions of

    Tool to calculate the emission factor for an electricity system, version 024

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

    Choice of project category, 'D- Electricity generation for a system' is as per the Appendix B of the

    simplified baseline and monitoring methodologies for selected small-scale CDM project activity

    categories. Justification for the choice has been provided in table as per requirements set in para 1-8 in the

    methodology AMS ID. Version-16.

    Applicability criteria Project case

    This category comprises renewable energy

    generation units, such as photovoltaic, hydro,

    tidal/wave, wind, geothermal and renewablebiomass that supply electricity to a national or a

    regional grid.

    The Project is wind based renewable energy,zero emission power project connected to theNEWNE grid. The Project will displace

    equivalent amount of fossil fuel basedelectricity generation that would have otherwisebeen provided by the operation and expansionof the fossil fuel based power plants in NEWNEregional electricity grid

    This methodology is applicable to project

    activities that

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

    was no renewable energy power plant operating

    prior to the implementation of the project activity

    (Greenfield plant);

    (b)involve a capacity addition;

    (c)involve a retrofit of (an) existing plant(s); or

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

    The project is installation of a new wind based

    electricity generation plant at a site where no

    renewable energy power plant was in operation

    (Greenfield plant) by the PP.

    3

    http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html

    http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html

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    Hydro power plants with reservoirs that satisfy at

    least one of the following conditions are eligible

    to apply this methodology: The project activity is implemented in an

    existing reservoir with no change in the

    volume of reservoir.

    The project activity is implemented in an

    existing reservoir, where the volume of

    reservoir is increased and the power density of

    the project activity, as per definitions given in

    the Project Emissions section, is greater than 4

    W/m2;

    The project activity results in new reservoirs

    and the power density of the power plant, as

    per definitions given in the Project Emissionssection, is greater than 4 W/m2.

    The Project activity is power generation from wind

    energy source hence criteria is not applicable to the

    project activity.

    In the case of biomass power plants, no other

    biomass types than renewable biomass are to

    be used in the project plant.

    The project activity does not use any type ofbiomass. Hence this criteria is not applicable.

    If the unit added has both renewable and non-

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

    the eligibility limit of 15 MW for a small-scale

    CDM project activity applies only to the

    renewable component. If the unit added co-fires

    fossil fuel, the capacity of the entire unit shall not

    exceed the limit of 15 MW.

    The project activity is a 1.5 MW windelectricity generation. Unit does not co-firesfossil fuels since wind is the only source ofpower generation.

    Combined heat and power (co-generation)

    systems are not eligible under this category.

    Project activity is not a combined heat andpower system.

    In the case of project activities that involve the

    addition of renewable energy generation units at

    an existing renewable power generation facility,

    the added capacity of the units added by the

    project should be lower than 15 MW and should

    be physically distinct from the existing units.

    Project involves installation of wind mill ofcapacity of 1.5 MW at project site where no unitwas already existing. It does not involve capacityaddition.

    In the case of retrofit or replacement, to qualify

    as a small-scale project, the total output of the

    modified or retrofitted unit shall not exceed the

    limit of 15 MW

    Not applicable, the entire wind project is a Greenfield project activity and this project is not the

    enhancement or upgradation project.

    B.3. Description of the project boundary:

    Project boundary has been ascertained using para 9 of AMS I.D. 'The physical, geographical site of the

    renewable generation source delineates the project boundary.'.

    Hence all the WTG equipments, and the metering arrangements and connected sub-station consists of the

    project boundary as marked in the figure below.

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    The GHG emission sources considered for the project boundary and their explanations are as follows:

    Source Gas Included Justification / explanation

    (BASELINE)Electricity

    Generation of

    NEWNE grid

    CO2 Yes Major emission sources

    CH4 NoExcluded for simplification. This is

    conservative

    N2O NoExcluded for simplification. This is

    conservative

    (PROJECTACTIVITY)Wind Electricity

    Generation

    CO2 NoAs renewable wind power project, hence

    not applicableCH4 No

    The proposed project is wind power

    project, hence not applicable

    N2O NoThe proposed project is wind power

    project hence not applicable

    B.4. Description of baseline and its development:

    The proposed project activity is a Greenfield activity as it involves installation of a new Wind turbine

    generator at the project site by the Project Participant. Therefore, as per guidelines for baseline in Para 10

    of methodology, AMS I.D, If the project activity is the installation of a new grid-connected renewable

    power plant/unit, the baseline scenario is the electricity delivered to the grid by the project activity that

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

    addition of new generation source. Thus, Baseline for the project activity is power generated from

    renewable energy source multiplied by the grid emission factor of the respective grid calculated in

    transparent and conservative manner.

    Further, as per Para 11 of AMS I.D, baseline emission is the product of electrical energy baseline EGBL,yexpressed in MWh of electricity produced by the renewable generating unit multiplied by the grid

    emission factor.

    BEy = EG BL,y X EFCO2,grid,.y

    Where,

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    BEy = Baseline Emissions in year y; t CO2

    EGBL, y = Quantity of net electricity supplied to the grid from project activity in year y (MWh)

    EF CO2, grid, y = CO2 emission factor of the grid in year y; t CO 2/MWh

    The methodology provides following approaches for emission factor calculations.

    (a) Combined margin (CM), consisting of the combination of operating margin (OM) and build margin

    (BM) according to the procedures prescribed in the Tool to calculate the emission factor for an

    electricity system, version 2.0.

    OR

    b) The weighted average emissions (in t CO2/MWh) of the current generation mix. The data of the year inwhich project generation occurs must be used.

    Option (a) has been considered to calculate the grid emission factor as per the Tool to calculate the

    emission factor for an electricity system since data is available from an official source.

    CO2 Baseline Database for the Indian Power Sector, Version 5, Nov 20095, published by Central

    Electricity Authority (CEA), Government of India has been used for the calculation of emission

    reduction.

    As per the "Tool to calculate the emission factor for an electricity system" version 2, following steps

    have been followed.

    STEP 1. Identify the relevant electricity power systems.

    STEP 2. Choose whether to include off-grid power plants in the project electricity system (optional).

    STEP 3. Select a method to determine the operating margin (OM) method.

    STEP 4. Calculate the operating margin emission factor according to the selected method.

    STEP 5. Identify the cohort group of power units to be included in the build margin (BM).

    STEP 6. Calculate the build margin emission factor.

    STEP 7. Calculate the combined margin (CM) emissions factor.

    STEP 1. Identify the relevant electricity power systems.

    The tool defines the electric power system as the spatial extent of the power plants that are physically

    connected through transmission and distribution lines to the project activity and that can be dispatched

    without significant transmission constraints. Keeping this into consideration, the Central Electricity

    Authority (CEA), Government of India has divided the Indian Power Sector into five regional grids viz.

    Northern, Eastern, Western, North-eastern and Southern.

    5http://www.cea.nic.in/planning/c%20and%20e/government%20of%20india%20website.htm

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    However since 2007-08 as the four regional grids except the southern grid has been synchronized, they

    are now being considered as one and named as NEWNE grid. Since the project supplies electricity to the

    NEWNE grid, emissions generated due to the electricity generated by the NEWNE grid as per CMcalculations will serve as the baseline for this project.

    STEP 2. Choose whether to include off-grid power plants in the project electricity system

    (optional).

    Project participants have the option of choosing between the following two options to calculate the

    operating margin and build margin emission factor:

    Option I: Only grid power plants are included in the calculation.

    Option II: Both grid power plants and off-grid power plants are included in the calculation.

    The Project Participant has chosen only grid power plants in the calculation.

    STEP 3. Select a method to determine the operating margin (OM) method.

    The calculation of the operating margin emission factor (EFOM,y) is based on one of the following

    methods:

    (a) Simple OM, or

    (b) Simple adjusted OM, or

    (c) Dispatch data analysis OM, or

    (d) Average OM.

    The data required to calculate simple adjusted OM or Dispatch data analysis is not possible due to lack of

    availability of this activity data to the project developers. The choice of other two options for calculating

    the operating margin emission factor depend on the generation of electricity from low cost/must run

    sources. In the context of the methodology low cost/must run sources typically include hydro, geothermal,

    wind, low cost biomass, nuclear and solar generation.

    Share of Must-Run (Hydro/Nuclear) (% of Net Generation)

    2004-2005 2005-06 2006-07 2007-08 2008-09

    NEWNE NA* 18.0% 18.5% 19.0% 17.3%

    South 21.6% 27.0% 28.3% 27.1% 22.8%

    India 18.0% 20.1% 20.9% 21.0% 18.6%

    Data for NEWNE grid in the CEA database has been included from 2005-06 onwards

    The above data clearly shows that the percentage of total grid generation by low cost/must run plants (on

    the basis of average of three most recent years) for the NEWNE and southern grids are less than 50 % of

    the total generation. Thus the average emission rate method cannot be applied, as low cost/must runresources constitute less than 50% of total grid generation.

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    The Simple operating margin has been calculated as per the weighted average emissions (in

    tCO2/MWh) of all generating sources serving the system, excluding hydro, geo-thermal, wind, low-cost

    biomass, nuclear and solar generation;

    In the project activity, (ex-ante) the full generation-weighted average for the most recent 3 years for

    which data are available at the time of PDD submission has been considered. The data is published

    annually by the Central Electricity Authority. The CEA database is based on the methodology ACM0002

    version 10.

    It is confirmed that ex-ante vintage is considered in the project activity and cannot be changed during the

    crediting period.

    STEP 4. Calculate the operating margin emission factor according to the selected method.

    The operating margin emission factor has been calculated using a 3 year data vintage:

    Net Generation in Operating Margin (GWh)

    Year MWh (NEWNE)

    2006-2007 379,471

    2007-2008 401,642

    2008-2009 421,803

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

    Year tCO2/MWh (NEWNE)

    2006-2007 1.0085

    2007-2008 0.9999

    2008-2009 1.0066

    Simple Operating Margin = Generation weighted average of the simple operating Margin

    = 1.0049 (tCO2/MWh)

    STEP 5. Identify the cohort group of power units to be included in the build margin (BM).

    The value of the data has been taken from the data published by CEA as referred in earlier step. The CEA

    Baseline Database has been calculated as per the methodology ACM0002 and the details of the keyassumptions considered to calculate the figure can be found in the User Guide of the same.

    Project participants can choose between one of the following two options:

    Option 1

    Calculate the Build Margin emission factor EFBM,y ex-ante based on the most recent information available

    on plants already built for sample group m at the time of PDD submission. The sample group m consists

    of either the five power plants that have been built most recently or the power plant capacity additions in

    the electricity system that comprise 20% of the system generation (in MWh) and that have been built

    most recently. Project participants should use from these two options that sample group that comprises

    the larger annual generation.

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    Option 2

    For the first crediting period, the Build Margin emission factor EFBM,y must be updated annually ex-postfor the year in which actual project generation and associated emissions reductions occur. For subsequent

    crediting periods, EFBM,y should be calculated ex-ante, as described in option 1 above. The sample group

    m consists of either the five power plants that have been built most recently or the power plant capacity

    additions in the electricity system that comprise 20% of the system generation (in MWh) and that have

    been built most recently. Project participants should use from these two options that sample group that

    comprises the larger annual generation.

    STEP 6. Calculate the build margin emission factor (EFBM, y )

    Option 1 as described above is chosen in the project activity. BM is calculated ex-ante based on the most

    recent information available at the time of submission of PDD.

    The EFBM, y is estimated as 0.6752 tCO2/MWh (With sample group constituting most recent capacity

    additions to the grid comprising 20% of the system generation)

    STEP 7. Calculate the combined margin (CM) emissions factor

    Combined Margin The combined margin is the weighted average of the simple operating Margin and

    the build margin. In particular, for intermittent and non-dispatchable generation types such as wind and

    solar photovoltaic, the Tool to calculate the emission factor for an electricity system, version 2.0, allows

    to weigh the operating margin and Build margin at 75% and 25%, respectively.

    The baseline emission factor is calculated using the combined margin approach as described in the

    following steps:

    Calculation of Baseline Emission Factor EFy

    The baseline emission factor EFy is calculated as the weighted average of the Operating Margin emission

    factor (EFOM, y) and the Build Margin emission factor (EFBM, y):

    EF y = w OM* EFOM, y + w BM * EF BM, y

    Where the weights w OM and w BM , are 75% and 25% respectively for wind energy projects, and EFOM, yand EFBM, y are calculated as described in Steps 1 and 2 above and are expressed in tCO2/MWh.

    Baseline Emission factor(NEWNE) = 0.75*1.0049 + 0.25*0.6752

    = 0.9225 tCO2/MWh

    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:

    Power generation in India is dominated by fossil fuel-based thermal power plants producing conventional

    electricity supplied at regional grids. It is also evident from the share of power generation in the capacity

    mix of India stated in section A.2 of the PDD.

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    National Electricity Policy6

    also encourages coal-based power plants due to their economic viability and it

    further emphasizes utilization of lignite reserves of country for power generation to meet future electricity

    demand of the country.

    The project activity is production of electricity from an environmentally benign wind technology.

    However, wind electricity generation is not a financially attractive option and has a very low share in the

    present generation capacity. Therefore, in absence of project activity it would make economic sense to

    continue with the baseline scenario.

    The implementation of the project activity was a voluntary step undertaken by the project developers with

    no direct or indirect mandate by law. The project activity is in line with the policies of the Government of

    India Ministry of New and Renewable Energy (MNRE). Wind Power Project is one of the thrust areas

    of power generation from renewable in the Ministry of New and Renewable Energy. It has been

    recognized that wind power projects can play a critical role in improving the over all energy scenario of

    the country and in particular for remote and inaccessible areas like deserts, sea shores etc.

    In accordance with paragraph 28 of the Simplified Modalities and procedures for Small Scale CDM

    project activities, a Simplified Baseline and Monitoring methodology listed in Appendix B may be used

    for a Small Scale CDM project activity if project participants are able to demonstrate that the project

    activity would otherwise not be implemented due to the existence of one or more barriers listed in

    Attachment A of Appendix. B. These barriers are:

    A. Investment Barrier

    B. Technology Barrier

    C. Barriers due to Prevailing Practice

    D. Other Barriers.

    The project faced an investment barrier to its implementation, hence according to the Attachment A,

    investment barrier has been chosen to demonstrate additionality.

    Investment Barrier

    Application of Benchmark analysis

    With reference to the Guidance 16 of Annex 58 of EB 51, " The benchmark approach is suitedto circumstances where the baseline does not require investment or is outside the direct controlof the project developer, i.e. cases where the choice of the developer is to invest or not to

    invest."

    In reference to both the guidance above, as the baseline scenario for the project activity is to supply the

    electricity to NEWNE grid, for which no investment is required by the Project Participant, hence

    benchmark approach is best suited approach for PP.

    Internal Rate of Return (IRR) is the most common financial indicator used by investors to meet the

    financial viability of the project. The Internal Rate of Return (IRR) of the project is calculated and

    compared with the benchmark to prove that the proposed CDM project activity is unlikely to be

    financially attractive without CER revenues. The assumptions used in calculating project IRR have been

    listed in the table below:

    6http://www.powermin.nic.in/indian_electricity_scenario/national_electricity_policy.htm

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    Assumptions supporting Financial Projections

    Parameters Values SourceProject cost

    (million)10

    Techno-commercial

    offer

    PLF 21.00%Report submitted to

    bank

    Transmission loss 4.00% RERC Tariff order

    16/07/2009

    http://www.rerc.gov.in/Tenders_for_Works.p

    dfTariff (Rs/kWh) 4.28

    Tariff for second

    year3.87 Calculated

    O & M costs (million INR/Year)

    First Year 0.00

    Techno-commercialoffer

    Second Year 1.70Yearly Escalation

    from 5th year7.5%

    Term Loan Details

    Debt equity ratio 70:30

    RERC Tariff order

    16/07/2009

    http://www.rerc.gov.in/Tenders_for_Works.p

    df

    Loan Repayment

    Period (in Years)10

    Moratorium

    period (months)1

    Interest on Term

    Loan

    11.63% Avg. RBI PLR for

    June,09Monthly RBI Bulletin

    Other DetailsInsurance Cost

    +Land lease0.15

    Techno-commercial

    offer

    CER price

    Euro/Ton13

    Average Sett. Price of

    CERs from Jan,09 to

    Jan,10

    http://www.ecx.eu/CER-Futures

    Exchange rate

    EUR=INR69

    Exchange rate at the

    time of decisionhttp://www.x-rates.com/cgi-bin/hlookup.cgi

    Accelerated

    depreciation80% MNRE http://mnre.gov.in/prog-wind.htm

    Tax holiday /

    years10 MNRE http://mnre.gov.in/prog-wind.htm

    The electricity tariff from second year onwards is calculated as per the tariff indexing mechanism

    specified in the Rajasthan Electricity Regulatory Commission in its Regulation 76, dated 23 January

    20107. As per the regulations the tariff for wind energy projects will be automatically revised during each

    subsequent year of control period (2009-2014) according to the following indexing formula

    Tn = T1 * (1 + dn) + [0.08 * [LTPLRi LTPLR0] ]

    dn = [a * (SIn-1/SI0 - 1) + b * (CIn-1/CI0 - 1)]/ (a+b)

    Where,

    7http://www.rerc.gov.in/regulations/Reg%2076.pdf

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    T1 = Base levellised Tariff determined for the WEG projects commissioned in first year of the Control

    Period (i.e. FY 2009-10)(in Rs/kWh).

    Tn = Levelised Tariff to be applicable for WEG projects commissioned during the financial year (n) of the

    Control Period (in Rs/kWh).

    = 4.28 Rs./kWh for the projects commissioned in the first year of control period i.e. 2009-10

    dn = Capital cost escalation factor applicable for year (n) of the Control Period

    a = Constant to be determined by Commission from time to time, (in default it is 0.70) for weightage to

    Steel Index

    SIn-1 = Average WPI Steel index prevalent for calendar year (n-1) of the Control Period

    This is taken as the average Wholesale Price Index for Jan 2009 to May 2009 i.e. 290.04

    SI0 =Average WPI Steel Index prevalent for Calendar year (0) i.e. Jan-2008 to Dec-2008

    = 338.4

    b = Constant to be determined by Commission, (in default it is 0.30) for weightage to Cement Index

    CIn-1 = Average WPI Cement Index prevalent for fiscal year (n-1) of the Control Period

    This is taken as the average Wholesale Price Index for Jan 2009 to May 2009 i.e. 225.28

    CI0 = Average WPI Cement Index prevalent for Calendar year (0) i.e. Jan-2008 to Dec-2008.

    = 222.7

    LTPLR(n) = Long term prime lending rate (in %) of State Bank of India as prevalent as on 31st January

    of each calender year prior to nth year of the Control Period.

    LTPLR(0) = Long term prime lending rate (in %) of State Bank of India as prevalent as on 31st Jannuary

    2009.

    This is assumed to be constant. Thus change in Long term prime lending rate of State Bank of

    India is assumed to be zero as this would have a negligible impact on the tariff

    Thus Tn as determined is 3.87 Rs./kWh.

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    Applica ion of Benchmark analysis

    According to "Guidance on assessment of investment analysis" (EB 41, Annex 45), benchmark can be

    derived from commercial lending rates or weighted average costs of capital. PP has used weightedaverage costs of capital as the benchmark for the project activity since the project was expected to be

    financed by debt & equity in a ratio of 70:30. The benchmark is derived from weighted average of return

    on debt and return on equity as per following formula:

    WACC = (Re We) + [Rd Wd (1- Tc)]

    Where:

    Re = Return on equity

    Rd = Return on Debt

    We = Percentage of financing that is EquityWd = Percentage of financing that is Debt

    T = Tax rate

    Return on debt: Prime lending rate of Reserve Bank of India has been taken as the debt benchmark as

    per the 'Guidelines on assessment of investment analysis'EB 51, Annex 58.

    Return on equity is calculated as per the Capital Asset Pricing Model according to the given formula:

    Re = Rf+ Beta x (Rm Rf1)

    Where:

    Re = Return on Equity

    Rf = Rate of risk free investment

    Beta = Indicator measuring volatility of a security relative to the asset class (Market)

    Rm = Expected market return

    Rf1 = Average return of a risk free investment

    Beta (e) = Covariance(R, Rm) / Variance(Rm)

    Covariance(R, Rm) = Covariance of a stock with market portfolio

    Variance(Rm) = Variance of the market portfolio

    BetaRisk Free

    Rate

    CAGR of

    market

    return

    Average

    Risk

    Free

    Return

    Market

    Risk

    Premium

    Debt Equity Ratio

    Debt Equity

    Equity

    benchmark

    Debt

    benchmarkBenchmark

    1.48 7.69% 22.82% 10.14% 12.68% 70.00% 30.00% 26.5% 11.63% 14.70%

    The calculated benchmark has been compared with IRR of the project activity to demonstrate

    Additionality.

    Calculation and comparison of financial indicator

    The Project IRR has been computed by taking into account the cash outflows (capital investment in the

    project) and cash inflows comprising profit after tax, depreciation, interest on term loan and salvage value

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    (in the terminal year). Cost of electricity generated from wind energy is taken from the per unit cost

    available from tariff order of Rajasthan Electricity Regulatory Commission dated 16 July 2009.

    Based on the above mentioned factors Internal Rate of Return (IRR) is estimated for project owner. Table

    below shows the benchmark rate of return as well as the project IRR with and without CDM revenues.

    Company nameCapacity

    (MW)

    IRR without

    CDM

    benefits(%)

    IRR with CDM

    benefits(%)Benchmark

    J C Retail India Pvt. Ltd. 1.5 6.52% 8.97% 14.70%

    Hence, from the above table it can be concluded that investors of this wind power project activity are not

    even able to achieve even their conservative benchmark IRR under normal conditions. The CDM benefit

    helps the project in alleviating the risk associated with the project activity. Therefore the project isfinancially additional in the absence of CDM benefit.

    Sensitivity analysis

    Following factors have been considered in the sensitivity analysis:

    1. Gross generation

    2. Project cost

    3. O&M cost

    4. Electricity tariff

    The variation in these parameters have been considered for a range of -10% to 10% and the impact of

    variation is shown in the table below:

    Project

    IRRBenchmark

    Project Cost Gross generation O&M Cost

    10% - 10% -12% 10% - 10% 10% - 10% -12%

    6.52% 14.7% 5.10% 8.30% 8.70% 8.48% 4.68% 5.98% 7.08% 7.17%

    The results of sensitivity analysis show that even with a variation of +10% & -10% in project cost, O&M

    cost and gross generation by the wind turbine, project IRR is significantly lower than the benchmark. The

    sensitivity analysis was done for project cost & O&M cost for even 12% decrease in the cost. However,

    even in that case the IRR for the project activity does not reaches the benchmark value.

    Project IRR BenchmarkElectricity Tariff

    10% -10% Tariff @ 4.28 Rs/kWh for 20 years

    6.52% 14.7% 8.44% 4.72% 8.57%

    As a conservative approach, assuming that the electricity tariff applicable from second year is same as

    that in first year i.e. 4.28 Rs/kWh, even with this assumption project IRR fails to surpass the benchmark.

    Thus it can be concluded that the project activity is additional in absence of CDM benefits.

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    Demonstration of Parallel and continuing actions as per the ' guidelines on the demonstration and

    assessment of prior consideration of the CDM' annex 22 to EB 49.

    Para 7 & 8 to the document describes the requirement of parallel and continuing actions with respect toCDM and wind project by the project proponent. It also sets out certain guidelines to decide on prior

    consideration of CDM by the project proponent. Chronological actions by the project proponents have

    been set in table below:

    WTG

    I.DAction for project

    propagation

    Actions for CDM

    implementationDate Proof of action

    RKB

    32

    Board resolution for

    implementation of project

    activity along with CDM

    benefits

    Board resolution for

    implementation of project

    activity and Serious

    consideration of CDM

    16-July-09 Extract of

    minutes of

    meeting of the

    board

    Purchase order raised forwind turbine generator

    25-July-2009 Copies of purchase orders

    Power purchase

    agreement signed with

    Jaipur Vidyut Vitaran

    Limited

    22-Sep-2009 PPA copy

    Proposals from CDM

    Consultant

    23-Nov-2009 Proposal Copy

    from Gensol

    Consultant.

    Commissioning of wind

    turbine

    2-Jan-2010 Commissioning

    certificate

    Contract with CDM

    consultant signed

    23-Jan-2010 Contract Copy

    Intimation to UNFCCC

    for prior consideration of

    CDM

    23-Jan-2010 Receipt of

    confirmation mail

    Local stakeholder's

    meeting held

    17-Mar-2010 Comments Sheets,

    attendance sheet,

    Public notice in

    local newspaper

    Proposal from DOE

    (BVQI) for validation of

    the project

    27th-Aug-2010

    Date of completion ofthe application of the

    baseline and monitoring

    methodology & project

    design document

    8th-Sep-2010

    Proposal from DOE

    (Sirim QAS

    International) for

    validation of the project

    28th-Sep-2010

    Meeting with DNA

    (MoEF) for seeking Host

    country approval

    28th-Oct-2010

    Contract with DoE 30th-Oct-2010 Copy of contract

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    Signed

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    B.6. Emission reductions:

    B.6.1. Explanation of methodological choices:

    As per Paragraph 11 of methodology I.D. the ex-ante baseline emissions are calculated based on the net

    electricity provided to the grid by renewable generating unit multiplied by an emission factor for the

    displaced grid electricity (in tCO2 /MWh).

    Baseline emissions :

    The baseline emission calculation for the project activity is attributable to the CO2 emissions that could

    have been produced at grid from fossil fuel based power plants in absence of the proposed project

    activity. Therefore the amount of electricity supplied to the baseline grid will be multiplied by the Grid

    emission factor to calculate the baseline emissions reduced by the Project.

    As per para 11of AMS ID

    BEy = EGBL,y X EFCO2,grid,.y

    Where,

    BEy = Baseline Emissions in year y; t CO2

    EGBL,y = Quantity of net electricity supplied to the grid as a result of the implementation of the

    CDM project activity in year y (MWh)

    EFCO2, grid, y = CO2 emission factor of the grid in year y; t CO 2/MWh

    Project Emissions:

    As per para 19 to AMS ID for renewable project activities

    Pro ect Emission (PEy) in tCO2 /year = 0 except geothermal and hydro power plants. Since project

    activity is a wind power plant.

    Therefore,

    PEy = 0 ...........(1)

    Leakage Emissions:

    Since project does not involve transfer of an energy generating equipment from another activity, as per

    para 15 of AMS ID:

    LEy = 0 ......... (2)

    Emission Reduction:

    As per para 21 of AMS ID,

    ERy = BEy-PEy-LEy

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    Where,

    ERy = Emission reductions in year y (t CO2/y)

    BEy = Baseline Emissions in year y (t CO2/y)

    PEy = Project emissions in year y (t CO2/y)

    LEy = Leakage emissions in year y (t CO2/y)

    Using equation 1 & 2 we get,

    ERy = BEy-0-0

    or

    ERy = BEy

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

    Data / Parameter: EFOM,yData unit: tCO2/MWh

    Description: Operating Margin Grid Emission factor

    Source of data used: Calculated from CEA database

    Value applied: 1.0049

    Justification of the

    choice of data or

    description of measurement methods

    and procedures actually

    applied :

    The value applied is taken from the CEA database, November 2009,version 5.

    The detailed calculation is shown in the baseline section B.4 above.

    Any comment: This value is fixed ex-ante

    Data / Parameter: EFBM,yData unit: tCO2/MWh

    Description: Build Margin Grid Emission factor

    Source of data used: CEA database

    Value applied: 0.6752

    Justification of thechoice of data or

    description of

    measurement methods

    and procedures actually

    applied :

    The value applied is taken from the CEA database, November 2009, version 5.The detailed calculation is shown in the baseline section B.4 above.

    Any comment: This value is fixed ex-ante

    Data / Parameter: EFCM,yData unit: tCO2/MWh

    Description: Combined Margin Grid Emission factor

    Source of data used: Calculated from operating and built margin, using 75%-25% weights

    Value applied: 0.9225Justification of the The value applied is taken from the CEA database, November 2009, version 5.

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    choice of data or

    description of

    measurement methodsand procedures actually

    applied :

    The detailed calculation is shown in the baseline section B.4 above.

    Any comment: This value is fixed ex-ante

    B.6.3 Ex-ante calculation of emission reductions:

    Baseline Emissions:

    As explained in section B.6.1

    BEy = EGBL,y X EFCO2,grid,.y

    EGBL,y = Quantity of net electricity supplied to the grid as a result of the implementation of the CDM

    project activity in year y (MWh)

    EFCO2, grid, y = CO2 emission factor of the grid in year y; t CO 2/MWh

    EGBL,y = Gross generation - transmission loss = 2759.4 - 110.376 = 2649 MWh

    Emission Factor has been calculated in section B.4 as the combined emission factor.

    Thus Baseline Emission = 2649 X 0.9225 = 2,444 tCO2/annum

    Emission Reduction:

    As explained in section B.6.1

    ERy = BEy

    Hence, ERy= 2,444 tCO2/annum

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

    Year

    Estimation of

    Project Activity

    Emission (tonnes

    of CO2 e)

    Estimation of

    Baseline

    Emission (tonnes

    of CO2 e)

    Estimation of

    Leakage (tonnes

    of CO2 e)

    Estimation of

    Overall Emission

    Reduction (tonnes

    of CO2 e)

    2010-2011 0 2,444 0 2,444

    2011-2012 0 2,444 0 2,444

    2012-2013 0 2,444 0 2,444

    2013-2014 0 2,444 0 2,444

    2014-2015 0 2,444 0 2,444

    2015-2016 0 2,444 0 2,444

    2016-2017 0 2,444 0 2,444

    2017-2018 0 2,444 0 2,4442018-2019 0 2,444 0 2,444

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    2019-2020 0 2,444 0 2,444

    Total (tCO2eq) 0 24,440 0 24,440

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

    Data / Parameter: EGS/SData unit: kWh

    Description: Monthly electricity supplied to the sub-station

    Source of data to be

    used:

    Meter reading by Rajasthan Electricity board

    Value of data 2.65 (GWh) per annum

    Description of

    measurement methods

    and procedures to be

    applied:

    The metering system will comprise of two sets of meters; meters on the

    generator cables recording gross electricity generation and meters in the sub-

    station recording net electricity generation. The net metered electricity

    generation data will be used to calculate and monitor the greenhouse gas

    emission reductions from the project. Joint Meter Reading would be done at the

    end of every month, by REB officials and PP representatives at the substation,

    hard copies of these are available with the PP.

    QA/QC procedures to

    be applied:

    Calibration procedure: Electricity meter is calibrated by the RVPNL at least

    once in 12 months with a calibration report maintained by the project owner.

    Meter accuracy class is 0.2s. Further technology supplier have their O&M and

    training systems certified through ISO 9001:2008 standards

    Any comment:

    Data / Parameter: ICRLCS,yData unit: GWh

    Description: Individual Generation at controller by WTG y

    Source of data to be

    used:

    Monthly generation report

    Value of data 2.76 (GWh) per annum

    Description of

    measurement methodsand procedures to be

    applied:

    Monthly generation report is prepared by the Suzlon on the basis of controller

    reading at the WTG.

    QA/QC procedures to

    be applied:

    The Individual LCS are connected to the Central Monitoring Station (CMS) of

    the wind farm through a wireless radio frequency network (SCADA), thus

    ensuring real time monitoring and high reliability of the data. These meters

    would be maintained by the technology supplier as per the operation and

    maintenance contract with the PP

    Any comment: Soft copy is preserved for entire period of the project

    B.7.2 Description of the monitoring plan:

    B.7.1 Data and parameters monitored:

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    The purpose of the monitoring plan is to ensure the completeness, consistency, accuracy of the

    monitoring of the net electricity generation and calculation of the emission reductions. The technology

    supplier is responsible for operating and maintaining the WTG as per the contract signed. The personappointed by the technology supplier will be in charge of the monitoring. The WTG is connected to

    feeder of Suzlon substation at Ketu-Kalan which is then connected to substation at Tinwari district where

    the metering is done on the outgoing line.

    1. Monitoring objects: As the baseline emission factor has been ex-ante calculated, the main monitoring

    objects are the electricity delivered to the NEWNE grid.

    2. Data collection: The organization structure responsible for operation and management as well as for

    the for data collection is explained in the chart below:

    Responsibilities

    O & M team of Technology provider is responsible for the operation and maintenance of WTG. O&M

    team ensure joint metering every month, regular meter testing and compilation of daily and monthly

    generation reports.

    Project manager (Representative of PP) maintains the record of generation reports, monthly meter

    readings and raises monthly invoice as per JMR. He is responsible for overall project management.

    CDM consultant appointed by project proponent, will be responsible for estimation of annual CER

    generation as per the generation details and joint meter reading which will be provided by projectmanager from PP side.

    Technology

    provider

    Project Manager

    (from PP side)

    Daily and monthly generation

    records from CMS

    Operation and

    management team

    Site In-charge

    CDM Consultant

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    The electricity generated is transmitted to substation which has a back up meter on the incoming line of

    substation and main meter on the outgoing line. The reading of main meter is used for billing purpose and

    for apportioning of individual generation of a WTG. The data from main and back meter will also be keptas record of the net electricity supplied by the WTG.

    5. QA-QC Procedure: The meters at substation will be calibrated and sealed annually by RVPNL

    personnel. If any meter is found to be faulty it will be replaced by RVPNL. Backup meter is also

    installed at the sub-station which act as a fail-safe mechanism in event of main meter failure. The billing

    of electricity is done against the main electricity meter at outgoing line of the sub-station. LCS of WTG

    are maintained by the WTG provider, as a general practice followed by State electricity board in the state

    of Rajasthan.

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

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

    Date: 08/09/2010

    Entity:

    Gensol Consultants Pvt. Ltd.

    14-15, 2nd

    Floor, Camps Corner II,

    Opp AUDA Garden, Prahlad nagar,

    Ahmedabad, Gujarat - 380015, INDIA.

    This entity is not the Project Participant.

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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:

    The starting date of a CDM project activity is the date at which the implementation or construction or real

    action of a project activity begins. Date of raising purchase order is the conclusive evidence of project

    activity implementation. Hence start date of project activity is taken as 25/07/2009 which is the date of

    raising purchase order for the WTG. This is also documented in the chronological actions taken by the PP

    in section B.5

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

    20 Years 0 Months

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

    C.2.1. Renewable crediting period

    A fixed crediting period of 10 years has been chosen for the project activity. Hence this is not applicable.

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

    Not Applicable

    C.2.1.2. Length of the first crediting period:

    Not Applicable

    C.2.2. Fixed crediting period:

    C.2.2.1. Starting date:

    30/06/2011 (tentatively) or date of registration with EB whichever is later.

    C.2.2.2. Length:

    10 years and 0 months

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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:

    Proposed project activity is using renewable energy generation technology which is free from any kind of

    anthropogenic emission. Project activity is not having any negative environmental impact. Only small

    amounts of oily and solid wastes are associated with the installation of the WTG which, can be ignored

    when compared to Emission reductions. Project activity will result into GHGs emission reduction

    equivalent to 2444 t CO2/year.

    As per the Schedule 1 of Ministry of Environment and Forests (MoEF - Government of India) notification

    dated September 14, 2006, - 39 activities are required to undertake environmental impact assessment

    studies.8 There are no negative environmental effects envisaged for the project. Wind turbines are

    considered as zero GHG emitting projects, so there will be no pollution caused by this project.Hence the proposed project does not fall under the list of activities requiring EIA as it will notinvolve any negative environmental impacts. Thus no EIA study was conducted.

    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:

    Project activity has no significant emissions. Hence no environmental impact analysis was conducted.

    8http://envfor.nic.in/legis/eia/so1533.pdf

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    SECTION E. Stakeholders comments

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

    In order to get the views of the local stakeholders and respond to their concerns (if any), astakeholder meeting was organized by the project proponent. The meeting was open to all andinvitations were sent through the paper advertisement on the local newspaper. Concerning personswere called for the Local stakeholder's meeting held on 17/03/2010. Advertisement were given inlocal newspapers in local language on 4/03/2010 so that the stakeholders have ample time to compiletheir doubts and worries. Local farmers, maintenance personals of the WTGs, and employees were

    present as the stakeholders.

    The schedule of the meeting was as follows-

    Welcome Note and Introduction

    Presentation of the CDM-Kyoto Protocol and role of local stake holder

    Presentation of the project undertaken by project proponent

    Addressing stakeholders concerns by representatives of participant

    Vote of thanks

    Local language was used for the presentation, sharing and responding to the questions. The summary

    of the meeting was recorded- copy of which will be made available to Designated Operating Entity

    during validation process. The list of participants with their signature is kept for record andphotographs of the event were also taken.

    E.2. Summary of the comments received:

    Stakeholders Involvement:

    The project participants prepared necessary documentation before implementation of the project activity

    and approached the above stakeholders individually. The project participants have received all

    clearances and approvals with no negative comments for the project activity from the Governmental

    agencies vested with the authority to examine the proposals from all aspects and issue the same.

    Stakeholders comments:

    After the brief overview of CDM and project activity given by the project proponent, stakeholder

    interaction session was held wherein villagers and other stakeholders recommended that there are no

    adverse effects of the project on the villagers and have improved employment in the area. Promotion of

    these activities was also advocated. This is also evident from issuance of approvals/consents/licenses for

    setting up and commissioning of the project activity and no adverse comments for the project.

    Common queries from stakeholders (Mr. Prabhu Singh, Mr. Bheem Singh, Mr. Madan Kanwar and

    others) regarding global warming and role of greenhouse gases, and the responses by project proponent

    are listed below:

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    Mr. Prabhu Singh. You mentioned the Greenhouse Gas Effect in which some gases come out which are

    harmful. Which are these gases and what is their effect?

    Ans. The Greenhouse Gas Effect occurs when gases such as carbon dioxide are emitted in large quantity.They trap heat energy emitted by earth's surface and lead to increase in global temperature. This is one of

    the gases but most emitted one contributing to Greenhouse Gas Effect. There are other gases too.

    Mr. Bheem Singh. Will the project help in improving electricity supply to the villagers and

    neighbourhood areas?

    Ans. It is expected to improve electricity supply since the electricity generated from the project is fed to

    the grid.

    Mr. Madan Kanwar. Will this plan of tapping energy from RE sources lead to an increase in jobs for

    the villagers?

    Ans. Yes, it will definitely lead to increase in the number of jobs for the villagers.

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

    No negative comments has been received hence no further action has been taken. The villagers were

    satisfied with the positive impact of the project and encouraged the idea of development of such projects.

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    Annex 1

    CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

    Organization: Jai Hind Collection India Pvt Ltd

    Street/P.O.Box: Laxmi Road

    Building: 607, Sadashiv Peth,

    City: Pune

    State/Region: Maharashtra

    Postfix/ZIP: 411030

    Country: India

    Telephone: 020-24271008/7

    FAX:

    E-Mail: [email protected]

    URL:

    Represented by: Director

    Title:

    Salutation: Mr,

    Last Name: Jain

    Middle Name:

    First Name: Dinesh

    Department: Operations

    Mobile: +91-9822033323

    Direct FAX:

    Direct tel:

    Personal E-Mail: [email protected]

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    Annex 2

    INFORMATION REGARDING PUBLIC FUNDING

    NO PUBLIC FUNDING HAS BEEN RECEIVED FOR THIS PROJECT.

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    Annex 3

    BASELINE INFORMATIONCENTRAL ELECTRICITY AUTHORITY: CO2 BASELINE DATABASE

    VERSION 5

    DATE Nov'09

    BASELINE METHODOLOGY

    ACM 0002/Ver 10 and "Tool to Calculate

    the Emission Factor for an Electricity

    System", Version 1.1

    Net Generation in Operating Margin (GWh)

    2006-07 2007-08 2008-09

    NEWNE 379,470.60 401641.59 421,802.63

    South 109,116 114,702 121,471India 488,587 516,343 543,274

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

    2006-07 2007-08 2008-09

    NEWNE 1.0083 0.999174160 1.0066

    South 0.9991 0.990623514 0.9729

    India 1.0063 0.997347067 1.0094

    weighted average emissions

    (tCO2/MWh) for NEWNE grid1.0047

    weighted average emissions

    (tCO2/MWh) for Southern grid0.9871

    Build Margin (tCO2/MWh) (excl. Imports)

    2006-07 2007-08 2008-09

    NEWNE 0.6313 0.5977 0.6752

    South 0.7013 0.7133 0.8179

    India 0.6485 0.6253 0.7088

    Build Margin (tCO2/MWh) for

    NEWNE grid0.6752

    Build Margin (tCO2/MWh) for

    Southern grid0.8179

    combined Margin Emission

    Factor for NEWNE Grid

    (tCO2/MWh)

    combined Margin Emission

    Factor for NEWNE Grid

    (tCO2/kWh)

    0.0009

    Build Margin (tCO2/MWh)

    0.9225

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    Annex 4

    MONITORING INFORMATION

    The reading of the meters shall be taken every month by authorized officer of State electricity

    board and representative of Suzlon Energy Limited, if present.

    The meters shall be calibrated once in a year.

    If during the annual calibrations, both the main and the back up meters are found to have errors

    beyond permissible limits, meter shall be replaced immediately.

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    APPENDIX I

    1. Investment Analysis Results

    Company nameCapacity

    (MW)

    IRR without

    CDM

    benefits(%)

    IRR with CDM

    benefits(%)Benchmark

    J C Retail India Pvt. Ltd. 1.5 6.52% 8.97% 14.70%

    Senstivity analysis:

    Following factors have been considered in the sensitivity analysis:

    1. Gross generation2. Project cost

    3. O&M cost

    4. Electricity tariff

    The variation in these parameters have been considered for a range of -10% to 10% and the impact of

    variation is shown in the table below:

    Project

    IRRBenchmark

    Project Cost Gross generation O&M Cost

    10% - 10% -12% 10% - 10% 10% - 10% -12%

    6.52% 14.7% 5.10% 8.30% 8.70% 8.48% 4.68% 5.98% 7.08% 7.17%

    As shown above the sensitivity analysis was done for project cost & O&M cost for even 12% decrease in

    the cost.

    Project IRR Benchmark

    Electricity Tariff

    10% -10%Tariff @ 4.28

    Rs/kWh for 20 years

    6.52% 14.7% 8.44% 4.72% 8.57%

    As a conservative approach, sensitivity analysis for tariff of electricity sold was also done assuming that

    the tariff applicable from second year is same as that in first year i.e. 4.28 Rs/kWh and the result is shown

    in the table above

    Result of sensitivity analysis show that the project IRR will not surpass benchmark.

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    2. CER estimation:

    As detailed in Section B.6.3

    Baseline Emissions:

    As per the methodology AMS I.D.

    BEy = EGBL,y X EFCO2,grid,.y

    EGBL,y = Quantity of net electricity supplied to the grid as a result of the implementation of the CDM

    project activity in year y (MWh)

    EFCO2, grid, y = CO2 emission factor of the grid in year y; t CO 2/MWh

    EGBL,y = Gross generation - transmission loss

    Gross generation = Installed capacity* PLF*365*24 = 2759.4

    Transmission loss = 4%

    EGBL,y = 2759.4 - 110.376 = 2649 MWh

    Emission Factor has been calculated as the combined emission factor = 0.9225 t CO2/MWh

    Thus Baseline Emission = 2649 X 0.9225 = 2,444 tCO2/annum

    Since LEy for the project activity is zero therefore, Emission Reduction:

    ERy = BEy

    Hence, ERy= 2,444 tCO2/annum

    Annual generation of CERs is shown in the table below:

    Year

    Estimation of

    Project Activity

    Emission (tonnes

    of CO2 e)

    Estimation of

    Baseline

    Emission (tonnes

    of CO2 e)

    Estimation of

    Leakage (tonnes

    of CO2

    e)

    Estimation of

    Overall Emission

    Reduction (tonnes

    of CO2 e)2010-2011 0 2,444 0 2,444

    2011-2012 0 2,444 0 2,444

    2012-2013 0 2,444 0 2,444

    2013-2014 0 2,444 0 2,444

    2014-2015 0 2,444 0 2,444

    2015-2016 0 2,444 0 2,444

    2016-2017 0 2,444 0 2,444

    2017-2018 0 2,444 0 2,444

    2018-2019 0 2,444 0 2,444

    2019-2020 0 2,444 0 2,444