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PROJECT DESIGN DOCUMENT

Clarion 12 MW Renewable Sources Biomass Power Project

AT M/S CLARION POWER CORPORATION LIMITED

January 2005

12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India

CONTENTS A. General description of project activity B. Baseline methodology C. Duration of the project activity / Crediting period D. Monitoring methodology and plan E. Calculation of GHG emission reductions by sources F. Environmental impacts G. Stakeholders comments Annexures

Annex-1: Contact Information On Participants


Annex-2: Information Regarding Public Funding Annex-3: Baseline Data Generation Appendix Appendix A: Abbreviations Appendix B: Reference List Enclosures Enclosure 1: Baseline calculations

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A.

General description of project activity

A.1 Title of the project activity: Clarion 12 MW (Gross) Renewable Sources Biomass Power Project. 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).) Purpose The purpose of the project essentially is to utilize the available biomass fuels1 in the region effectively for generation of power. The generated power will be sold to the state grid for sustainable economic growth, conservation of environment through use of biomass fuels and Green House Gas (GHG) emission reduction. The project will also help to reduce the ever-increasing demand and supply gap of electricity. Clarion Power Company Limited (CPCL) proposes to utilize the available fuel from the Prakasam, Guntur, West Godavari, Cuddpah and Nellore districts. A survey carried out indicates that the fuels to be used are available in abundance within a radius of 150 km from the plant site. Considering the adequate availability of biomass in the area, CPCL have chosen the location of power plant in Tanguturu village, Prakasham district, Andhra Pradesh (AP). The long term project debt is financed by Power Finance Corporation (PFC), India with own equity of CPCL. The following local benefits are also envisaged due to the setting up of project: Proper utilization of surplus biomass; Generation of eco-friendly green power; Avoidance of burning of agriculture waste; Reduction of CO2 emissions Contribution to Sustainable Development The project activity is a renewable energy power project for power generation and export of clean power to Transmission Corporation of Andhra Pradesh (APTRANSCO). This generation of power will substitute the power generated and fed to conventional fossil fuels dominated grid. Indian economy is highly dependent on Coal as fuel to generate energy and for production processes. Thermal power plants are the major consumers of coal in India
1

Sustainably grown renewable cyclic crops.

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and yet the basic electricity needs of a large section of population are not being met. This results in excessive demands for electricity and place immense stress on the environment. Changing coal consumption patterns will require a multi-pronged strategy focusing on demand, reducing wastage of energy and the optimum use of Renewable Energy (RE) sources. Since this project activity utilizes renewable energy source, it will positively contribute towards the reduction in (demand) use of finite natural resource like coal/gas/oil, minimizing depletion or else increasing its availability to other important processes. Government of India has stipulated the following indicators for sustainable development in the interim approval guidelines2 for CDM projects. 1. 2. 3. 4. Social well being Economic well being Environmental well being Technological well being

Project activity contributes to the sustainable development in following way: 1. Social well being:

Since, the project is proposed in a rural area, the project would lead to the development of the region. Since, the biomass resources are to be collected and transported to the plant site from the fields, opportunities are being generated for the rural people to collect and transport biomass. This will result in the enhanced employment of the rural people. More and more rural industries will be set up as a consequence to the power plant in the area. This also will cause infrastructure development in the area, which ultimately leads to the rural development. This also prevents the migration of the rural poor to cities due to opportunities created by the power plant. In order to ensure sustained sources of raw material supply to the power plant, the company has embarked on encouraging energy plantation by the farmers in their wastelands.

2. Economical well being: The project activity generates employment in the local area. The project will also provide economic value to agricultural and wood wastes and provides stable
2

Ministry of Environment and Forest web site : http://envfor.nic.in:80/divisions/ccd/cdm_iac.html

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and quality power to industry, farmers and households. The project will create a business opportunity for local stakeholders such as bankers, consultants, suppliers, manufacturers, contractors etc. The main resources for power generation are biomass fuels such as Prosopis juliflora, cotton stalks, rice husk etc. Crop residues are collected from the farmers out of their field and brought to the project, thus generate an additional revenue on account of supply of these crop residues to the project, which are otherwise being under-utilized / burnt so far with no commercial value. In other words, the plant is generating commercial value to crop residues enabling the farmers to get better price out of their produce augmenting their income. The above benefits due to project activity ensure that the project would contribute to the social and economic well being in the region. In order to ensure sustained sources of raw material supply to the power plant, the company has embarked on encouraging energy plantation by the farmers in their wastelands. 3. Environmental well being

Since, the project uses only biomass materials for power generation, which otherwise would have been a fossil fuel such as coal, lignite and gas, the project does not lead to GHG emissions. Combustion of biomass materials in the project result in GHG emissions of CO2, CH4 and NOx. The major constituent of GHG emissions is CO2 which about 98%, whereas CH4 and NOx constitute the remaining 2%. This can well be evidenced from the typical ultimate analysis3 of biomass materials, which indicates the Nitrogen content is within 1 to 2%, therefore CH4 emission is negligible. Hence the CO2 is considered as the only GHG emissions from the biomass combustion. Since the biomass is formed by fixing the atmospheric CO2 by the action of photosynthesis in the presence of sunlight, the CO2 released due to combustion of biomass is assumed to be equal to the CO2 fixed by the photosynthesis. Again the CO2 released during the combustion will be consumed by the plant species for their growth. In view of the above, biomass combustion and growth of biomass and associated CO2 consumption and release can be treated as cyclic process resulting in no net increase of CO2 in the atmosphere. Hence, the project will not lead to GHG emissions.

4. Technological well being The technology selected for the proposed project is a more energy efficient technology due to the following features. The project uses a steam turbo generator with matching boiler of traveling grate type capable of firing multiple fuels. This is a more efficient than the Fludized Bed Combustion
3

Chemical analysis of elements in the fuel (biomass).

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(FBC) system, which is capable of firing only rice husk as fuel for the boiler. The auxiliary power consumption for traveling grate type is much less (11%) than the FBC type (16%). In view of the above the project participant consider that the project activity profoundly contributes to the sustainable development. A.3 Project participants: (Please list Party(ies) and private and/or public entities involved in the project activity and provide contact information in annex 1 of this document.) (Please designate one of the above as the official contact for the CDM project activity.) Clarion Power Corporation Limited: Project Developer and Official contact for the CDM Project Activity Details are provided in Annex-I. A.4 Technical description of the project activity: The project activity is a 12 MW (gross) capacity grid-connected biomass based renewable energy power plant with high-pressure steam turbine configuration. On an annual average basis, the project exports around 10.92 MW power to the APTRANSCO grid by considering auxiliary power consumption of 9%. The plant will be operating at an annual average plant load factor of 80%. As per MNES guidelines and APCB consent to operate received for the project, use of coal as a fuel is allowed maximum upto 30%, on annual basis. Although CPCL proposes to use coal in case of shortage of biomass only (15 to 25% nly), maximum use of coal (30%) has been considered for estimation of project emissions to arrive at conservative figure of GHG emission reductions. CPCL will be using Indian coal and imported coal in the plant, as per the availability. To arrive at the average CO2 emission factor of coal, low calorific Indian and high calorific imported coal has been considered for calculations and actual figures of calorific values and carbon contents needs to used during the verification. .Further, no transmission and distribution losses are considered while calculating GHG emission reductions, since the project exports power to the APTRANSCO grid, which is located at about 18 km from the site. The power plant has one condensing steam turbo generator unit with a matching boiler of traveling grate type capable of firing multi fuels. All necessary auxiliary facilities of the power plant are provided. The boiler is sized to produce a maximum of 57 tons per hour of steam. The steam turbine is a straight condensing type machine with two bleed off, one to deaerator and one to Low Pressure (LP) heater for feed water heating. The steam conditions at the boiler heat outlet are at a pressure of 64 kg/cm2 and temperature of 480+ 5 0C. The higher steam parameters result in higher annual savings of fuel per annum when compared to lesser steam parameters such as 44 kg/cm2 and temperature of 440 0C. Page 6 of 4040

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A.4.1 Location of the project activity: A.4.1.1 Host country Party (ies): A.4.1.2 Region/State/Province etc.: India Andhra Pradesh

A.4.1.3 City/Town/Community etc: Prakasam district A.4.1.4 Detailed description of the physical location, including information allowing the unique identification of this project activity (max one page): The plant is located at Tanguturu village, Prakasham district, Andhra Pradesh. The site for the plant has been acquired and the plot area measures 48 acres. The site is well connected by roads and railway line and the nearest seaport and airport is at Chennai. The site is generally plain and soil is of black cotton type. Musi river water is being used to meet the plant water requirement. Power generated from the plant is being evacuated to Transmission Corporation of Andhra Pradesh (APTRANSCO) through their 132 kV Ongole sub station which is about 18 km from the plant.

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 Page 7 of 4040

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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 with paragraphs 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.) As per Clause 24 of Appendix B of simplified modalities and procedures for smallscale CDM project activities, in case of unit which co-fires renewable biomass and fossil fuel the capacity of the entire unit shall not exceed the limit of 15 MW, for the project to qualify as a small-scale CDM project. Therefore, the proposed project activity can be defined under Main Category: Sub Category: Type I - Renewable Energy Project (Small Scale) D, Electricity Generation for a Grid (Biomass based Power Project)

A.4.3 Brief statement on how anthropogenic emissions of Greenhouse Gases (GHGs) by sources are to be reduced by the proposed Clean Development Mechanism (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.) The power plant uses environmentally sustainable grown biomass and incase of exigencies can use coal as fuel. The GHG emissions of the combustion process, mainly CO2, is consumed by plant species, representing a cyclic process. Since, the biomass contains only negligible quantities of other elements like Nitrogen, Sulphur etc. release of other GHG are considered as negligible. The biomass is CO2 neutral and thus environmentally benign limiting greenhouse effect. Conventional energy equivalent of around 495 Million kWh for a period of 7 years in AP would be replaced by exporting power from the 12 MW non-conventional renewable sources biomass based power plant thereby resulting in CO2 emission reduction of around 184,090 tonnes. In the absence of the proposed activity, the same Page 8 of 4040

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energy load would have been taken-up by thermal power plants and emission of CO2 would have occurred due to combustion of conventional fuels like coal / gas. According to the draft 16th electrical power survey conducted by the Central Electricity Authority (CEA), the projected growth in the total energy consumption is expected to be 7.5 % per annum for the period 1997-98 to 2004-05. The energy requirement - 392 billion kWh in 1997-98 - is assessed to be 632 billion kWh in 200405. However, due to various barriers (as mention in section B3) the share of renewable energy in the APTRANSCO grid is less than 1%. The power plant not only justifies the shortage of power availability and energy but also the eco-friendly power generation.

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.) No public funding from parties included in Annex I is available to the project. Project is implemented with equity of project proponent (CPCL) and long term debt by Indian bank. 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.) According to Appendix C of Simplified Modalities & Procedures for small scale CDM project activities, Debundling is defined as the fragmentation of a large project activity into smaller parts. With reference to the criteria mentioned, this biomass power plant is not a debundled component of a large project activity as there is no registered small scale CDM project activity (previous 2 yrs) or an application to register another small scale CDM project activity by the same (CPCL) project proponent, in the same project category and technology/measure with project boundary within 1 km radius of this project activity.

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B.

Baseline methodology

B.1 Title and reference of 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.) Title: Renewable electricity generation for a grid Reference: The project activity meets the eligibility criteria to use the simplified modalities and procedure for small-scale CDM project activities as set out in paragraph 6 (c) of decision 17/CP.7. Details of methodology for baseline calculations for CDM projects of capacity less than 15 MW is available in the Appendix B of the simplified modalities and procedure for small scale CDM project activities. Reference has been taken from indicative simplified baseline and monitoring methodologies for selected small scale (CDM projects less than 15 MW) project activity categories. Renewable technologies that supply electricity to the grid are covered in category I.D. The category comprises renewable such as small hydro, wind, geothermal and biomass that supply electricity to an electricity distribution system that is or would have been supplied by at least one fossil fuel or nonrenewable biomass fired generation unit. 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.) Main Category: Sub Category: Type I - Renewable Energy Power project I. D Renewable Electricity Generation for a Grid

As per the Kyoto Protocol (KP) baseline should be in accordance with the additionality criteria of article 12, paragraph 5(c), which states that the project activity must reduce emissions that are additional to any that, would occur in the absence of the certified project activity. Document Annex B to attachment 3 regarding indicative simplified baseline and monitoring methodologies for selected small scale CDM project activity categories, provides guidelines for preparation of Project Design Document (PDD) including baseline calculations. The category and the sub type of the activity are given above. Page 10 of 4040

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Baseline methodology mentioned in the point no. 29 of Type I. D. of Annex B of the simplified modalities and procedures for small scale CDM project activities, states that the baseline is the kWh produced by the renewable generating unit multiplied by an emission coefficient (measured in kg CO2/kWh) calculated as under: a) The average of operating and build margin, where; i) The operating margin estimates the effect of the project activity on the operation of existing and or/future power plants. Dispatch data, while useful in situations of high data and resource availability, are unlikely to be widely applicable. A practical method and often equally precise is the weighted average of all resources, excluding small hydro, geothermal, wind, low-cost biomass and solar generation. This in most cases should approximate the operating margin calculated using more sophisticated techniques; ii) The build margin (or recently built) estimates the effect of the project activity on the building of alternate power plants. The recommended calculation is based on the weighted average emissions (in kgCO2/kWh) of recent capacity additions, defined as the most recent 20% of plants built or the 5 most recent plants, whichever is greater; b) The weighted average emissions (in kgCO2equ/kWh) of current generation mix.

Considering the available guidelines and the present project scenario, Andhra Pradesh (AP) state grid, to which the project will feed the power, has been chosen for baseline analysis by selecting The weighted average emissions for baseline calculations. B.3 Description of how the anthropogenic GHG emissions by sources are reduced below those that would have occurred in the absence of the proposed CDM project activity (i.e. explanation of how and why this project is additional and therefore not identical with 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 smallscale CDM project activities.) (National policies and circumstances relevant to the baseline of the proposed project activity shall be summarized here as well.)
The project activity meets the eligibility criteria to use simplified modalities and procedure for small-scale CDM project activities as set out in paragraph 6 (c) of decision 17/CP.7.

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As per the decision 17/cp.7 Para 43, a CDM project activity is additional if anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in the absence of the registered CDM project activity. Further referring to Appendix A to Annex B document of indicative simplified baseline and monitoring methodologies for selected small scale CDM project activity categories, project participants shall provide a qualitative explanation to show that the project activity would not have occurred anyway, at least one of the listed elements should be identified in concrete terms to show that the activity is either beyond the regulatory and policy requirement or improves compliance to the requirement by removing barrier(s) ; 1. Financial barrier

The CDM fund for the project was initially considered to cover the project risk related to the fuel (biomass) price increase in the future. The CDM fund is critical considering biomass availability and prices are seasonal, which depends on many external factors whereas the earnings for the power plant are long term fixed rate. Therefore, the revenue from CDM could prove to be vital, as they would significantly improve the sustainability of the project, as the project can be rendered financially unstable due to a) The increase in cost of fuel and b) The decrease in tariff by virtue of revised tariff by off taker Both the above factors are true for the project activity and in absence CDM funds it is very likely that project activity would have used (or may use) more financially viable option such as coal as fuel. Raw material cost since the inception (say documented at Detailed Project Report (DPR)) has increased from average Rs. 700 to Rs. 1000 per Metric Tone (MT) of biomass. A brief comparison of the cost of raw material is given below DPRCost (in Rs./MT) Rice husk Chilli Stalk Juliflora other biomass 800 500 460 700 Existing cost (in Rs./MT) 1350 800 1000 800

The cost of generation per unit during the project inception was Rs. 2.41/kWh, which has increased to Rs. 2.83/kWh due to increase in raw material cost.

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The initial PPA with off taker APTRANSCO was signed at a tariff of Rs. 2.25 per unit with base year as 1995-95 and 5% escalation per year. The tariff for the year 2003-04 was Rs. 3.48 per unit. However, with the revised4 tariff order by Andhra Pradesh Electricity Regulatory Commission (APERC), the tariff rate is Rs 2.88 per unit. This would result in heavy financial losses and put an additional burden on the financial sustainability of the project. CDM Benefit Rate/CER Exchange CERs (Euros) rate INR CPCL 184090 5 55 Units replaced (kWh) Cost per unit (Rs.) 0.128

50,624,750 395,000,000

The CDM benefit per unit (kWh) of power replaced is about Rs. 0.128 Hence, the total benefit for CPCL including the tariff cost of Rs. 2.88 would amount to Rs. 3.01, which is marginally more than the existing cost of generation i.e. Rs. 2.83 per unit. It is envisaged that the raw material cost would further increase, which would lead to further increase in the cost of generation. CPCL also faces regulatory barrier in the form of changing tariff policy of APERC. The tariff policy at the time of DPR stage projected an IRR of 31% to CPCL without consideration of CDM benefits and 33% after consideration of CDM benefits. However, after introduction of new tariff order for renewable energy (RP 84 / 2003 in O.P. no. 1075 /2000 dated March 20, 2004), the returns dropped to 13% and 15% respectively. Thus, the financial returns have dropped considerably due to the new tariff order. Thus the project justifies the need of CDM funds for the project activity, which will help in significantly improving the project competitiveness and financial sustainability due to reduction in tariffs and increase in raw material cost.

2.

Policy related barriers

APERC in a landmark order3 has proposed to reduce the power tariff rates for nonconventional energy sources. The rate per unit has been decreased from Rs 3.48/- per unit to Rs 2.88/- per unit. As per the new proposal the tariff rates will be of two parts fixed and variable. The fixed cost is based on the year of commissioning and it will come down gradually over a period of 10 years, whereas variable cost will go up by 5% every year up to a control period of 5 years.
4

APERC tariff order, R.P. No.84 / 2003 in OP No 1075 / 2000 dated 20.03.2004

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However, it has been observed that the cost of the fuel from inception to date has increased to 43%, thereby increasing the cost of generation by 32%. This has resulted in creating an imbalance in the % increase in variable cost and operating cost. The year wise (for credit period) effect of tariff changes with respect to fixed and variable price & cost Fixed cost tariff: Year of operation 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th fixed cost (Rs./unit) 1.61 1.57 1.53 1.49 1.45 1.41 1.37 1.33 1.26 0.87 Variable cost Financial year 2004-05 2005-06 2006-07 2007-08 2008-09 Variable cost (Rs./unit) 1.27 1.33 1.40 1.47 1.54

As per the above policy initiative, plants operating with 80% PLF will be paid fixed cost and variable cost as per the APERC Tariff Order and the additional units generated at the additional PLF will be paid at a variable cost of Rs 1.27 and an incentive of Rs. 0.25 per unit. Thus it is imperative that the present tariff is not sufficient and will significantly impact the sustainability of the project. To generate renewable power, the CDM funds can contribute towards sustainability of the project, which will indirectly help in reduction of CO2 emission, if not generated. Also, the power tariff will be under revision every 5 years instead of 10 years as per the new proposal from APERC. The existing APTRANSCO generation mix comprises of: 57% thermal power plants; 42% hydro projects; and 1% wind and cogeneration projects In thermal power plant category, coal based plants contribute for 46% and balance 11% is contributed by the gas based power plants. This illustrates that biomass plants are still considered as rather financially risky proposition and with changing scenario, the CDM revenue will contribute to their financial stability. For example, earlier, there was 3rd party sale and the tariff was not supposed to be less than the high tension line (HT1) tariff of Rs.4.32. However with the advent of Page 14 of 4040

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Regulatory Commission in 1999 there is no 3rd party sale. Earlier there was 2% wheeling charges on 3rd party sale and later it was changed to 28.4% and Rs. 0.50 per unit to neutralize the tariff of 3rd party and APTRANSCO. Hence, all the Biomass power plants have shifted their sale of power to APTRANSCO, wherein they have to abide by the APRANSCO policies. Also, the recent Andhra Pradesh state government decision regarding free power to the farmers, will adversely affect the tariff/buying rate of APTRANSCO for purchase of electricity form the project activity. This discussion suggests that there are clear policy related threats and barrier to the proposed project activity, which can be mitigated to certain5 extent from CDM benefit.

3.

Technical barriers

CPCL has invested additional Rs. 42 Lacs6 for a drum chipper for uniform wood chipping leading to greater boiler efficiency, which is first of its kind in India (less than 5% similar installations). The project developer has taken additional risk of deploying a new technology, which is not tested before for biomass plants in India. 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.)
As per the guidelines mentioned in Type I. D. of Annex B of the simplified modalities and procedures for small-scale CDM project activities, project boundary encompasses the physical and geographical site of the renewable generation source. Hence, the project boundary covers the point of fuel supply to the point of power export to the grid where the project proponent has a full control. Hence, project boundary is considered within these terminal points. However, for the purpose of calculation of baseline emissions, AP state electricity grid is also included in the project boundary. Thus, boundary covers fuel storage and processing, boiler, Steam Turbine Generator (STG) and all other power generating equipments, auxiliary consumption units and electricity grid.

5 6

Uncertainty related to carbon market and cash flows is also a deterrent. 1 Lac = 100,000.

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B.5 Details of the baseline and its development: B.5.1 Specify the baseline for the 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: Since the project activity is feeding power to AP state electricity grid, the baseline for this project activity is the function of the generation mix of AP grid. Using the methodology available for small-scale project activities as discussed in section B2 above, the weighted average emissions (in kgCO2equ/kWh) of current generation mix of AP is used for the calculation of baseline. Actual CO2 emission factors are used for the purpose. B.5.2 Date of completing the final draft of this baseline section (DD/MM/YYYY): 10/11/04 B.5.3 Name of person/entity determining the baseline:

(Please provide contact information and indicate if the person/entity is also a project participant listed in annex 1 of this document.)
Clarion Power Company Limited (as mentioned in Annex-I).

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C.

Duration of the project activity / Crediting period

C.1 Duration of the project activity: C.1.1 Starting date of the project activity:

(For a definition of the term starting date, please refer to the UNFCCC CDM web site). Project started construction after 1 January 2000 and is operational since 21st February 2004. Referring to the Glossary of terms provided in version-2 (03 December, 2004) of Guidelines for completing the project design document (CDMPDD), the proposed new methodology: baseline (CDM-NMB) and the proposed new methodology: monitoring (CDM-NMM) the project starting date is considered as the date at which the major equipment for the project activity was tested. This is the 48.15 TPH capacity boiler at 64 ata pressure and 480 degree centigrade temperature that was inspected and sanctioned by the approved authority Andhra Pradesh Boiler Inspection Department on 24th November 2003.
C.1.2 Expected operational lifetime of the project activity: Life time of the project: 25 year

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 C.2.1.1 Starting date of the first crediting period (DD/MM/YYYY): Starting date of first crediting period: 21/02/2004 C.2.1.2 Length of the first crediting period:

(in years and months, e.g. two years and four months would be shown as: 2y-4m.):
7 years (7y)

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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.)
D.1 Name and reference of 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.) Monitoring methodologies / guidelines mentioned in the UNFCCC document of Annex B of the simplified modalities and procedures for small scale CDM project activities for small scale projects (Type I:D) is considered as basis for monitoring Page 19 of 4040

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India

methodology for the activity. The document states that the monitoring shall consist of metering the electricity generated by the renewable technology. 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 meets the eligibility criteria to use simplified modalities and procedure for small-scale CDM project activities as set out in paragraph 6 (c) of decision 17/CP.7. Details of approved methodology for baseline calculations for CDM projects of capacity less than 15 MW is available in the Appendix B of the simplified modalities and procedure for small scale CDM project activities. As the power plant is of 12 MW capacity, reference has been taken from indicative simplified baseline and monitoring methodologies for selected small scale (CDM projects less than 15 MW) project activity categories.

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D.3 Data to be monitored:

(The table below specifies the minimum information to be provided for monitored data. Please complete the table for the monitoring methodology chosen for the proposed project activity from the simplified monitoring methodologies for the applicable small-scale CDM project activity category contained in appendix B of the 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 and/or activity levels for the calculation of emission reductions achieved. Please add rows or columns to the table below, as needed)
ID number (Please use numbers to ease crossreferencing to table D.6) D.3.1 D.3.2 D.3.3 D.3.4 D.3.5 D.3.6 D.3.7 D.3.8 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) Electronic Electronic Electronic Paper Paper Paper Paper Paper For how long is archived data to be kept? Comment

Power Power Power Fuel Fuel Fuel Fuel Fuel

Electricity generated Auxiliary consumption Power export Biomass used Avg. calorific value of Biomass used Coal Carbon content in coal Calorific value of coal

KWh KWh kWh MT Kcal/Kg MT % Kcal/Kg

Measured Measured Measured Measured Measured Measured Measured Measured

Continuous Continuous Continuous Daily For each batch of biomass Daily For each batch of coal For each batch of coal

> 95% > 95% > 95% > 95%* > 95%* >95% Grab sample Grab sample

2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years

Through sample testing in lab Through sample testing in lab Through sample testing in lab

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India

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.)
Clarion Power Corporation Limited (As mentioned in Annex-I)

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India E. Calculation of GHG emissions 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 in appendix 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.)
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 GHGs due to the project activity within the project boundary: (for each gas, source, formulae/algorithm, emissions in units of CO2 equivalent) The project proponent, in case of exigencies proposes to use coal (maximum 30% is allowed on annual basis) as fuel instead of biomass. The CO2 emissions during the usage of coal has been calculated in the following manner:

1.Using IPCC standard CO2 emission factor CE c = Q * CC * EFC


where, CEc - Carbon-dioxide emission due to coal burning at project site, MT CC - Calorific value of coal, kcal/ton Q - Quantity of coal burned, MT EFC - IPCC standard emission factor kg of CO2/kcal OR

2. Using actual carbon content of the coal


CO2 Emission [in kgs]= Stoichiometric CO2 from carbon content of coal [based on total carbon content ] To have an estimate of the project CO2 emission quantity due to combustion of coal along with the biomass, total carbon content of the coal should be known. Combustion reaction for CO2 emission is as under. C + O2 = CO2

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India Assuming complete combustion of coal, following formula can be used for conservative estimation of CO2 emissions.

CE c = (44 / 12) * C * Q

where, CEc - Stoichiometric carbon-dioxide emission due to coal burning at project, MT C - Carbon percentage in coal, % Q - Quantity of coal burned, MT E.1.2.2 Describe the formulae used to estimate leakage due to the project activity, where required, for the applicable 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 of CO2 equivalent) The leakage activity identified, which contributes for GHG emissions outside the project boundary is transportation of biomass from biomass collection centers to biomass power project site. Calculation of leakage has been carried-out as under: Biomass to be procured Average Distance between project site and biomass collection centers Biomass load per truck Number of return trips Total Diesel consumption CO2 emission factor for Diesel (as per IPCC guidelines) CO2 emission per annum 1466 tons Consumption of Diesel per trip 14,837 40 liters (4km/litre) 593480 liters per annum 74.10 tons CO2 / TJ 8 MT 1,18,700 MT 80 km

The CO2 emission (leakage) occurs during the transportation of coal from the mines to respective coal based power plants. The distance between the coal mines and the power plants is higher as compared to the transportation distance between biomass collection centers to biomass power project site and hence the higher CO2 emissions. To be on conservative side, this leakage due to coal transportation has not been added while calculating the baseline of AP grid and hence a small leakage due to transportation of biomass has been neglected from the calculations and estimations of emission reductions. E.1.2.3 The sum of E.1.2.1 and E.1.2.2 represents the project activity emissions:

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India The emissions from the project using coal as supplementary fuel would give the project activity emissions. E.1.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of GHGs in the baseline using the baseline methodology for the applicable project category in appendix B of the simplified modalities and procedures for smallscale CDM project activities: (for each gas, source, formulae/algorithm, emissions in units of CO2 equivalent) AP state grid is considered for baseline analysis and calculation of anthropogenic emissions by fossil fuels during power generation. It is observed that, in the AP generation mix, coal and gas based power projects are responsible for GHG emissions. The following approved methodology has been considered for baseline calculations. The weighted average emission of the current generation mix. Step by step calculation of CO2 emissions due to burning of coal and gas for power generation and emission reductions by the project activity is as under. Step 1 : Net emission = Actual emission factor for coal x % of generation by coal out of total generation. Step 2 Step 3 Step 4 : : : Net emission = Step 1 is to be repeated for gas. Net emission factor for coal + Net emission factor for gas Total Power generation Total auxiliary consumption. (Coal used x heat value of coal X CO2 emission factor of coal as per IPCC7) Step 6 : CO2 reduction emission = Units exported to AP grid x total net emission factor Project emissions Since there is a gap between demand and supply in AP grid, the export of power from the project activity to AP grid will replace or get absorbed to partially fulfill the AP power requirement.
As per Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference manual, page 1.13, for coal IPCC standard CO2 emission factor is 96.1t CO2/TJ.
7

factor for coal

factor for gas Total net emission = factor Units exported to APTRANSCO Step 5 : Project emissions

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India

If the same amount of electricity is generated by the coal and gas based power project mix, it adds to the emissions that are getting reduced by the project activity. Hence, the baseline calculated using above methods / scenarios would represent the realistic anthropogenic emissions by sources that would occur in absence of the project activity. E.1.2.5 Difference between E.1.2.4 and E.1.2.3 represents the emission reductions due to the project activity during a given period: Following formula is used to determine Emission reduction CO2 emission reduction due to project activity = Net CO2 baseline emission x Electricity exported to grid (in kwH) -

Project emission

E.2 Table providing values obtained when applying formulae above: Operating Years Net Baseline Baseline Project Emissions Emissions8 Emission (tonnes of (tonnes of Factor (kg CO2 CO2) CO2) /kWh) 2004-2005 0.732 52,159 25,357 2005-2006 0.747 53,229 25,357 2006-2007 0.738 52,592 25,357 2007-2008 0.729 51,975 25,357 2008-2009 0.724 51,638 25,357 2009-2010 0.720 50,164 25,357 2010-2011 0.715 49,835 25,357 Total CERs 36,1592 17,7502 Certified Emission Reductions (tonnes of CO2) 26802 27,872 27,235 26,617 26,280 24,806 24,477 184,090

1. 2. 3. 4. 5. 6. 7.

Therefore, an conventional energy equivalent of 495 Million kWh for a period of 7 years in AP would be saved by exporting power from the 12 MW Biomass based power plant which in turn will reduce 184,090 tons of CO2 emissions considering baseline calculations. Baseline data used for the calculation is provided in Annex-3 and the detailed calculation using the formulae is presented in an Excel Sheet (refer Enclosure I to this PDD).

Estimated based on 15% to 25% power generation using coal as supplementary fuel over the credit period.

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F.

Environmental impacts

F.1 If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: (if applicable, please provide a short

summary and attach documentation)


The project being a renewable energy biomass based power project it does not fall under the purview of the Environmental Impact Assessment (EIA) notification of the Ministry of Environment and Forest, Government of India. As per the government of India notification dated June 13, 2002 based on environment protection rule, 1986, public hearing and EIA is required for those industries/projects; which are listed in the predefined list of ministry of environment and forest. Thermal power projects with investment of less than Rs. 100 crores have been excluded from the list. Hence, not required by the host party. The project has taken all the care to follow the rules and regulations for conservation of the environment prescribed by licensing authorities like APPCB. It has stopped usage of Neem and Mango, the species prohibited as per the consent to operate of APPCB since receipt of the order on October 3, 2004. Also, the project has received host country endorsement form Designated National Authority, Ministry of Environment and Forest, Government of India. G. Stakeholders comments

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

The local stakeholder comment invitation and compilation process involved is as follows: The local stakeholders are immediately affected by the activities of the project. The effect is on the local environment, social life and economics. All the individuals and organizations falling in the above effects are perceived as stakeholders. They can be within the boundaries of the village, district, state or nation. On deciding above criteria for qualification of the stakeholders, the idea was to decide most appropriate representatives who are covering above. During interaction of the corporate headquarter and the plant management, the stakeholders were identified as: Office bearers of the Tangutur Office bearers of the neighbouring villages local bodies Authorities of the District local administration Biomass suppliers Local NGOs Customer (APTRANSCO)
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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India

Licensing and regulatory authorities like o NEDCAP o APPCB o MoEF (Govt. of India) o MNES (Govt. of India)

Stakeholders in the area surrounding the plant were contacted individually and requested to attend a meeting on August 21, 2004. During this meeting their views were sought for impact of project on social, economic and environmental aspects. Views expressed by the stakeholders were noted and minutes of the meeting was prepared for the record. CPCL has been constantly in touch with other identified stakeholders like licensing and regulatory authorities. Their views are reflected in the form of permissions granted for the project. In this aspect, the permission by NEDCA, MoEF, APPCB and MNES are indication of favorable impression for the project.
Stakeholders Involvement The village Panchayat /local elected body of representatives administering the local area is a true representative of the local population in a democracy like India. Hence, their consent / permission to set up the project is necessary. CPCL has already completed the necessary consultation and documented their approval for the project. Local population comprises of the local people in and around the project area. The roles of the local people are as a beneficiary of the project. The local population will be involved in the supply of the biomass and hence the project would be a beneficial project for the local population. In addition to this, the project would also lead to local manpower working at the plant site. Since, the project will provide good direct and indirect employment opportunities the local populace is encouraging the project. The project does not require displacement of any local population. In addition, the local population is also an indirect consumer of the power that is supplied from the power plants. The distance between the electrical substation for power evacuation and the plant is less, installation of transmission lines will not create any inconvenience to the local population. Andhra Pradesh Pollution Control Board (APPCB) has prescribed standards of environmental compliance and monitors the adherence to the standards. The project has already received No Objection Certificate (NOC) from APPCB to start the plant. Non-conventional Energy Development Agency of AP (NEDCAP) implements policies in respect of non-conventional renewable power projects in the state of Andhra Pradesh and has accorded approval to the project. Page 28 of 3940

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India

As a buyer of the power, the APTRANSCO is a major stakeholder in the project. They hold the key to the commercial success of the project. APTRANSCO has already cleared the project and CPCL has already signed Power Purchase Agreement (PPA) with APTRANSCO. Designated National Authority under Ministry of Environment and Forest has provided host country approval to the project. The government of India, through Ministry of Non-conventional Energy Sources (MNES), has been promoting energy conservation, demand side management and viable renewable energy projects including wind, small hydro and bagasse cogeneration / bio-mass power. The project meets their requirements. G.2 Summary of the comments received: As mentioned above, CPCL has already received the approvals and clearances for their project from the following stakeholders: Consent order of Establishment from Andhra Pradesh Pollution Control Board; Power Purchase Agreement with APTRANSCO; Clearance from the Gram Panchayat, Tanguturu village Host country endorsement from DNA, MoEF, Government of India.

Although, in India, public participation at any stage of project implementation is not required, being a CDM activity, project proponent has invited the local stakeholders including Sarpanch (head) of village, representative of local population, representative of local NGO and biomass suppliers to express their views on the project and the summary is presented as below. Village Sarpanch (head of locally elected body) expressed his happiness about the implementation of project in his village since the project activity has created employment opportunities for the villagers and also for creating an additional means of revenue for local farmers/biomass waste suppliers which will positively help to improve living standard and the socio-economic condition of the village. Other benefit mentioned by Secretry of gram panchayat is additional revenue from the project activity in terms of tax, to gram panchayat, which will be utilized for the development of the village. One of the Zilla Parishad (ZP) member (village representative at district level) expressed that by various means the village has been benefited by the project activity, specifically the project has created source of income for poor farmers of the nearby area. Poor farmers are getting reasonable monitory gains for harvesting the available biomass and supplying it to project activity. Representative of local NGO SARDS (detailed brochure of SARDS is available for reference), mentioned that, as they are concerned about the local environment, initially apprehended that the project may pollute the neighboring agricultural fields and aqua lakes. But after observing the project activities for few months, it was found Page 29 of 3940

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India the project is not affecting the surrounding environment as the due care has been taken by the promoters by taking proper measures of controlling the air and water pollution reduction and disposal of effluents. He appreciated the efforts of CPCL for development of green field in the premises of the plant. Representative biomass suppliers also expressed their happiness about project implementation by CPCL in this area, which has provided them an opportunity of small business. They mentioned that it is providing employment for local labors, skilled and unskilled workers and preventing their transfer to nearby cities. It is also helping to improve economic standard of poor farmers of the region by giving them a reasonable value for their biomass waste. They further added that, the project activity has provided business opportunity for local transporters also. In summary, every stakeholder expressed that the project activity is helping the socio-economic development of the village and nearby area without affecting the local environment adversely. G.3 Report on how due account was taken of any comments received: The relevant comments and important clauses mentioned in the project documents like Detailed Project Report (DPR), environmental clearances, power purchase agreement, local clearance etc. were considered while preparation of CDM project development document. Further, the document will be published on UNFCCC/Validators website for public comments.

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India

Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY (Please copy and paste table as needed) Organization: Clarion Power Corporation Ltd Street/P.O.Box: 141, Avenue # 8, Road No. 2 Building: Lanco House City: Hyderabad State/Region: Andhra Pradesh Postfix/ZIP: 500 034 Country: India Telephone: 040-23556029 FAX: 040-23540438 E-Mail: rssreenivas@lancogroup.com URL: www.lancogroup.com Represented by: Title: Mr. Salutation: Last Name: Sreenivas Middle Name: Ravula First Name: Satya Department: Director Mobile: Direct FAX: 040-23540438 Direct tel: 040-23556029 Personal E-Mail:

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Annex-2 Information Regarding Public Funding


No Public Funding is available to the project.

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India

Annex-3
BASE LINE DATA The methodology adopted for the calculation of the baseline is the weighted average emissions of the current generation mix. Year 2002-03 is considered as the base year for prediction of future capacity additions during the crediting period. APGENCO generation data as tabulated below is used for consideration of installed AP grid capacity and energy availability during the period 2002-03. Table No. 1: Installed Capacity and Generation in AP during 2002-03 Sr.No A Sector Installed capacity in MW 2947 482 3274 189 Generation in MU Remarks

STATE A1 Thermal, coal/lignite based A2 Thermal, gas/naphtha based A3 Hydro A4 Renewable

19019.6 2964.4 2923.0 662.2 Excluding mini hydro projects Includes wind, biomass, bagasse cogeneration, mini hydel, Solar projects etc.

Total OTHERS B1 Share from Central projects B2 Purchase / Imports

7667 1372 6261.1 Includes thermal, nuclear and hydro Includes IPPs, private plants, captive plants

1721

7538.0

TOTAL AP GRID

9985

39368

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India In order to arrive at the detailed breakup of power generation mix in Andhra Pradesh, various documents including the Andhra Pradesh Power Profile and various web sites were refereed. The websites refereed for estimating the generation mix in Andhra Pradesh are: 1. http://www.infraline.com 2. http://www.bisnetworld.net 3. http://www.apgenco.com As per the availability, actual generation figures as against the sector wise installed capacity were used. Wherever the breakup of generation was not available, proportionate calculated figures were used so as to match the total energy availability to AP grid. Using the available documents regarding AP grid, a detailed sector wise breakup of installed capacity and generation for the year 2002-03 as a base year is prepared for baseline analysis as tabulated under:

Table No. 2 Detailed breakup of Installed Capacity and Generation in AP during 2002-03
Sr.No A A1 A2 A3 A4 Sector STATE Thermal, coal / lignite based projects Thermal, gas / naphtha based projects Private/IPP, gas / naphtha based projects Private/IPP, coal / lignite based projects Generation Installed capacity in in MU MW 2947 482 1246 0 19019.60 2964.34 5457.48 0 First project is proposed to be commissioned by 2004 2923.00 Only big hydro projects. 662.26 Includes wind, biomass, bagasse, mini hydel projects etc. 31026.68 Remarks

A5 Hydro projects A6 Renewable Projects Energy

3274 189

Total

8138

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India

Sr. No Sector B B1 Central Share from Central coal/lignite based projects Share from Central hydro projects Share from central nuclear power projects Others

Generation Installed capacity in in MU MW 1257 (857 + 400) 0 115 475 5505.66

Remarks

B2 B3 C

0 755.55

2080 Includes captive and other projects TOTAL AP GRID 9985 39368.38 Sources: 1. APGENCO Web site, www.apgenco.com/ 2. Andhra Pradesh State Electricity Board at www.infraline.com/power 3. Promotion of Non Convention Energy, www.infraline.com/power

In order to predict the future capacity additions in the state, the proposed power projects of different sectors (state, central, IPPs, private sector etc.) along with their implementation plan were considered.
Predictions of capacity additions through Renewable projects are based on the projects sanctioned by NEDCAP till date. Projects with an installed capacity of 1013 MW of power under non-conventional energy sources have been sanctioned as of date. According to NEDCAP, projects with an aggregate capacity of 189 MW have already been commissioned till now. For the purpose of baseline calculation, the balance capacity of 824 MW (1013-189 MW) is equally added (117 MW) in every year for the crediting period of 7 years. The list of the proposed projects considered with their implementation schedule is given in the table below.

Location

State/ Central/ IPP Central State

Promoter

Fuel

Capacity (MW) 1000 900

Simhadri Srisailam LB

NTPC APGENCO

Coal Hydel

Ramagundam

IPP

BPL Power

Coal

520

Expected Implementa tion schedule 2002 300 MW in 2003, 300 MW in 2005 and 300 MW in 2007 260 MW by 2005 and 260 MW by 2006

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India Location State/ Central/ IPP IPP IPP Promoter Fuel Capacity (MW) 520 520 Expected Implementa tion schedule 2006 260 MW by 2004 and 260 MW by 2005 2005 2001 370 MW in 2005 210 MW by 2005 and 210 MW by 2006 2006 2002 2002

Krishnapatnam A Krishnapatnam B

GVK Power BBI Power

Coal Coal

Ramagundam III Kondapalli Vemagri Rayalseema II

Central IPP IPP State

NTPC Lanco Nippon Denro Ispat APGENCO

Coal Gas Naphta Coal

500 355 492 420

Peddapuram Jegurupadu Extn Samalkot

Gautami Power Nahphta 464 GVK Power Gas 230 BSES Andhra Naphtha 210 Power Source: Andhra Pradesh State Electricity Board at www.infraline.com/power

IPP IPP IPP

No additional project other than above list has been considered for capacity additions.

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India Appendix A Abbreviations AP APERC APPCB CDM CEA CER Cm CO2 CPCL DPR GHG IPCC IPP IREDA Kcal Kg KM KP KW KV kWh LP MNES MT MU MW NEDCAP NGO NOC PDD PIN PLF PPA QA QC Page 37 of 3940 Andhra Pradesh Andhra Pradesh Electricity Regulatory Commission Andhra Pradesh Pollution Control Board Clean Development Mechanism Central Electricity Authority Certified Emission Reductions Centimeter Carbon Di oxide Clarion Power Corporation Limited Detailed Project Report Greenhouse Gas Intra governmental Panel for Climate Change Independent Power Producers India Renewable Energy Development Agency Kilo Calories Kilogram Kilometer Kyoto Protocol Kilowatt Kilovoltage Kilowatt hour Low Pressure Ministry of Non-Conventional Energy Sources Metric Tons Million Units Megawatt Non Conventional Energy Development Corporation of Andhra Pradesh Non Government Organizations No Objection Certificate Project Design Document Project Idea Note Plant Load Factor Power Purchase Agreement Quality Assurance Quality Control

APTRANSCO Andhra Pradesh Transmission Company

CDM - Project Design Document

12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India RE SEB STG T&D TJ UNFCCC Renewable Energy State Electric Board Steam Turbine Generator Transmission and Distribution Trillion Joule United Nations Framework Convention on Climate Change

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12 MW Renewable Source Biomass Power Project of Clarion Power Corporation Limited, Andhra Pradesh, India Appendix B REFERENCE LIST Sr. No 1. 2. 3. 4. References Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) www.unfccc.int/cdm Website of United Nations Framework Convention on Climate Change, http://unfccc.int UNFCCC decision 17/CP.7: Modalities and procedures for a clean development mechanism as defined in article 12 of the Kyoto Protocol UNFCCC document: Annx B to attachment 3, Indicative simplified baseline and monitoring methodologies for selected small scale CDM project activity categories Detailed project report on 12 MW Biomass based power project Clarion Power Corporation Limited Website of Central Electric Authority (CEA), Ministry of Power, Govt. of India- www.cea.nic.in CEA published document 16th Electric Power Survey of India Website of APGENCO, www.apgenco.com Website of Ministry Non-Conventional Energy Sources (MNES), Government of India, www.mnes.nic.in Website of Indian Renewable Energy Development Agency (IREDA), www.ireda.nic.in Andhra Pradesh Power Profile at www.bisnetworld.net/bisnet/states www.infraline.com/power/

5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

APERC tariff order, R.P. No.84 / 2003 in OP No 1075 / 2000 dated 20.03.2004. Website of Climate Change Cell, Ministry of Environment & Forest, Govt. of India. www.envfor.nic.in

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