BCML II Enclosures

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project
ENCLOSURE I CURRENT POWER SCENARIO & POLICIES
BCML - II Classified - Confidential
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ENCLOSURE - I : CURRENT POWER SCENARIO & POLICIES

Power generation is the harbinger of economic growth and industrial development of any country. Although it is a life stream of country like India, it contributes to the GHG emissions as the fossil fuels have major share in total power generation. This section covers the current power situation in India and Uttar Pradesh (UP), development of renewable energy sources, central and state policies, future energy projections, current power delivery system etc.
1.0
National Power Scenario

Indian power sector is facing challenges and despite significant growth in generation over the years, it has been suffering from shortages and supply constraints. Energy and peak load shortages were 7.8 % and 13 % respectively in the year 2000-01. The per capita electricity consumption in India is about 400 kWh/year, which is significantly lower than the world average of around 2,100 kWh/year. As GDP growth accelerates to an ambitious 8 to 10 %, the shortage of power will become more severe (source: Reference No. 27) The power situation in India is characterised by demand in excess of supply, high Transmission and Distribution (T&D) losses, low Plant Load Factor (PLF), peak demand and energy shortages, poor financial health of the State Electricity Boards (SEBs) and severe resource crunch. The power sector reforms in the country and consequent privatisation of generation, T & D have been sluggish, due to complexities involved. The Ministry of Power has been making continuous efforts for promoting reduction of T&D loss and re-structuring of SEBs. The electricity regulatory commissions, recently formed as a part of the reforms, have been still learning to exercise adequate control on power tariffs. With reference to above power and energy scenario, Ministry of Power (MoP) and Ministry of Non-conventional Energy Sources (MNES), Government of India, has been promoting viable renewable energy technologies including wind, small hydro and biomass power, energy conservation, demand side management etc. MNES has been promoting various sources of renewable energy since 1990. Wide spread need of power generation has created the need for a cheap and readily available commercial fuel for generating electricity at low cost. Coal was the first to be selected in India as a commercial fuel in early thermal power stations and is still king of the power market. Central Electricity Authority (CEA) has initially projected a shortfall of 1,50,000 MW in 15 years and therefore, a capacity addition target of 10,000 MW every year, the actual capacity addition has been far short of targets. The CEA has recently revised the capacity addition target to 1,00,000 MW from earlier target. This implies an annual addition of 8,500 MW as against earlier fixed of 10,000 MW. Capacity addition in the last five years including financial year 2000 was average 3,000 MW per year. Out of the total capacity added during last five years, 49% was added by the states and balance by central plants,
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excluding only 4% contributed by private sector. This indicates that, the states have been the largest contributors to incremental capacity. The sustained economic development in India has created a critical need for additional power generation capacity. To augment the existing installed capacity of about 101,154 MW (year 2000-01), the Government of India has encouraged private sector participation in the power generation. To assess the all India capacity requirements by the end of eleventh plan to meet the demand projected by 15th Electric Power Survey (EPS) report, Central Electricity Authority (CEA) carried out planning studies using updated version of Integrated System Plan (ISPLAN) model, which optimises generation capacity additions in an integrated manner with power transmission and fuel transportation. The studies are based on updated data base, keeping in view the development in power sector in recent past, likely achievement during 9th Plan, the perspective plans prepared by Central Power Units (CPUs) and also latest status of Independent Power Producers (IPP) and state sector projects. The CEA report Power on Demand By 2012 has indicated that the level of satisfaction would be 85% only with the identified installed capacity of about 2,10,000 MW by the end of eleventh Plan (2011-12), leaving a gap of about 22,600 MW in demand. Additional projects to the tune of 30, 000 MW capacity need to be identified to meet the full peaking requirements. On the other hand, if the demand in terms of peak as well as energy is reduced by 15%, then the present level of identified projects including projects covered in CPUs perspective plan is found to be adequate. Hence, energy conservation activities and power generation from renewable sources have an important role in management of demand and energy requirement. Out of total existing generation capacity, nearly 72% is contributed by thermal power. With a need for sustainable economic growth, the Government of India, through the Ministry of Non-Conventional Energy Sources (MNES), is encouraging and catalysing the growth of renewable energy based power including biomass, wind, hydro, solar photo-voltaic etc. It is expected that a judicious mix of centralised fossil fuel power plants and decentralised renewable energy based power plants will lead to an environmentally friendly augmentation of the power sector in India. In addition to this central government and all the State Governments are encouraging the Energy conservation activities in all the sectors like industrial, domestic, commercial, agricultural etc. Implementation of electrical energy conservation projects / programmes at various sectors will also help in reduction of peak demand along with the financial gains through reduction of energy consumption. 2.0 Power From Renewable Energy Sources Renewable energy technologies based on the inexhaustible resources of sunlight, wind, water and biomass are considered to offer sustainable energy alternatives to a world beset
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by serious environmental problems and volatile fossil fuel politics. An increasing share of global energy needs is expected to be met by renewable in the years ahead. (Source : Reference No. 28)
India is abundantly endowed with renewable energy resources viz. solar energy, wind energy, biomass and small hydro, widely distributed across the country, and can be utilised through commercially viable technologies to generate power. Increasing use of these sources will also be instrumental in simultaneously achieving environmental objectives like reduction of GHG emission. Details of renewable energy potential and achievement as on December 31, 2001 is presented in Table-2.1.
Table 2.1 : Renewable Energy Potential & Achievement
Sr.No. 1. 2. 3. Source / Technologies Wind Energy Small Hydro (up to 25 MW) Biomass / Bagasse Co-generation 4. 5. 6. Solar PV Urban & Industrial Waste Biogass Plants 20 MW / km2 1,700 MW 120 Millions 47 MW 15.15 MW 3.182 Millions Approximate Potential 45,000 MW 15,000 MW 19,500 MW Achievement 1,267 MW 1,341 MW 273 MW
Source: Background Paper of International Conference and Business Meet on Non Fossil Fuel Generation organized jointly by CII, NHPC & NPC of India Ltd
From above table, around 3000 MW (3 % of total installed capacity) capacity of Renewable Energy (RE) projects have been installed in the country. India is planning to add about 12,000 MW power generating capacity from renewable by the end of 11th plan (2011-2012). Almost half of it is expected to come from wind, 3,500 MW from biomass and 2,000 MW from small hydro. As per CEAs Fourth National Power Plan, anticipated capacity additions from NonConventional energy sources is presented in following Table-2.2 Table 2.2 : Capacity additions from non-conventional energy sources
Sr.No. 1. 2. 3. 4. Source of Energy
th
Programme capacity in MW 9 plan 10th plan 6,000 2,000 2,000 600 11th plan 9,000 3,000 3,000 900 3,000 1,000 1,000 300
Wind Power Small Hydro Biomass Cogeneration Solar Thermal Power
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Sr.No. 5. 6.
Source of Energy
th
Programme capacity in MW 9 plan 10th plan 400 2,000 13,000 11th plan 600 3,000 19,500 200 1,000 6,500
Solar Photovoltaic Bio energy / Biomass Power TOTAL
Source: CEA report on fourth national power plan
Although, India is implementing one of the worlds largest programmes on renewable energy, the present output from renewable, in the national energy scene, is less than two per cent of the installed capacity, it has not matured into a major alternative. The major barriers and bottlenecks for development of renewable energy includes following: High captive investment and low commercial viability Lack of adequate capital at affordable cost Limited access to financial resources and high cost of finance Lack of awareness (e.g. bagasse is available with farmers with no exposure of power sector economics) Lack of large scale production facilities If the projects get the financial benefit under flexibility mechanisms of Kyoto Protocol then above barriers can be overcome to some extent.
3.0
Potential Of Sugar Cogeneration In India1

Cogen power plants at sugar mills in India are getting stabilised / commercialised with pressure / temperature configurations up to 87 kg/ cm2 and 5100C. Internationally, in countries like Mauritius, Re Union Island and USA, bagasse co-generation plants with high pressure of more than 80 kg/cm2 and modern technology are established and exporting power to grid. Maximum pressure configuration employed internationally, is 105 kg/cm2 in a sugar mill at Okilanda, USA. (Source: Reference No.25) The potential for power generation from bagasse-based cogeneration at sugar industries with implementation of high-pressure configurations above 60 kg/cm2 is around 4,000 MW. Based on separate studies conducted by MNES / IREDA and Tata Energy Research Institute (TERI) break up of potential for cogeneration from sugar mills of major sugar producing states, is given in the following table:
Sources: 1) 2)
CII Investor Guide Book on cogeneration Background Paper of International Conference and Business Meet on Non Fossil Fuel Generation organized jointly by CII, NHPC & NPC of India Ltd
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Table 3.3 : Cogeneration Potential from Sugar Mills

State Maharashtra Uttar Pradesh Tamil Nadu Karnataka Andhra Pradesh Bihar Gujarat Punjab Haryana Madhya Pradesh Others Total Potential in MW 1,250 1,350 300 200 300 150 150 125 100 50 25 4,000
Source: All India Bagasse Co-generation Study of IREDA, taken from CII investor guidebook for bagasse based cogeneration
Considering above potential for cogeneration in India, the major stakeholders like, sugar industry and policy makers started the developmental efforts in the early eighties. In spite of having huge potential, the actual achievements till date are very poor due to major barriers related to initial capital, low cost financing, state and central regulatory policies and other barriers related to technology, social factors, specialised experience etc. In the above perspective BCML has taken commendable step togo ahead with installation of two bagasse based co-generation units with export of power to the state grid; one at Haidergarh and another one at Balrampur.
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4.0
UPs Current Delivery System2

Indian power grid system is divided into five regions namely Northern, North Eastern, Eastern, and Southern and Western Regions. The state of Uttar Pradesh is situated in the Northern part of India and forms a major constituent of northern region. These regions have independent load dispatch centres that manage the flow of power in their jurisdiction. At present, the inter-regional flows of power are quite low. Hence, each region may be considered as an island due to which the power generated in each region is distributed in their jurisdiction only. The Northern Region consists of Delhi, Himachal Pradesh, Punjab, Uttar Pradesh, Haryana, Jammu & Kashmir, Rajasthan and newly formed Uttaranchal State. Each state will have their own power generation plants (State Government owned) managed by respective State Electricity Boards / Corporations. In Uttar Pradesh, power transmission and distribution is managed by Uttar Pradesh Power Corporation Ltd.(UPPCL), Lucknow. State governments thermal power generation plants are managed by the state authority Uttar Pradesh Rajya Utpadan Nigam (UPRUN) and Hydro power plants by the state authority Uttar Pradesh Jal Vidut Nigam (UPJVN). In addition to the state govt. owned power generation plants, there are private owned power generation plants exporting power to UPPCL and central government (Government of India) owned power generation plants managed by Government of India Enterprises like National Thermal Power Corporation Ltd., Nuclear Power Corporation Ltd., National Hydro Electric Power Corporation Ltd. etc. Power generated by all generation units is being fed to the grid (Northern Grid), which is accessible to all states forming part of the northern grid. Power mix may be thermal, hydro, wind, nuclear. In India, nuclear power generation is allowed only by central sector organisations. Power generated by state owned generation units and private owned generation units would be consumed totally by respective states. But the power generated by central sector generation plants will be shared by all states forming part of the grid in fixed proportion.
Sources:
1) UPPCL Statistics at a Glance-March 2002 and other available UPPCL documents. 2) Website of Uttar Pradesh Power Corporation Limited (UPPCL)- http://www.uppcl.org
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5.0
5.1
Uttar Pradesh Power Scenario

Present Fuel Mix in Electricity Generation and Power Deficit As mentioned above UPPCL distribution network gets major portion of thermal and hydro power from UPRVUN and UPJVN respectively along with the central sector generation plants and a small portion from private sector power generation /cogeneration plants and ultimately distributed to the consumer / end users. Source wise present installed capacity and power generation in UP shows that the share of UPPCL coal based power projects is 73 % of total UPPCL installed capacity and 77% of total generation capacity in the state. Detailed break-up is as under. Table - 5.1.1: Installed Capacity and Power Generation in UP
Sr. No. A. 1. 2. 3. 4. B. C. UPPCL Thermal (coal) Hydro Micro Hydel Total (UPPCL) U.Ps share in Central Schemes (coal/gas/hydro/nuclear) Import from other sources (incl. Renewable) Total 4,092 1,494.35 26.43 5,612.78 3,166.49 8,844.27 17,565 5,232 29 22,826 18,087.41 156.80 41,069.80 Energy Source Installed Capacity in MW Net Generation in MkWh
Source: UPPCL statistics at a glance-March 2002 and other available documents
Above table shows that present share of Uttar Pradesh in central power generating schemes is quite substantial i.e 35% in installed capacity and 44% in generation. Import from other sources includes power generation in UP by private sector projects, renewable energy projects (bagasse / biomass based cogenerations) etc. Last five year data analysis of power data of UP state shows that installed capacity is dominated by thermal source with share of more than 75 %. Table 5.1.2 shows source-wise installed capacity peak demand variation during last five years (UPPCL Statistics at a Glance). In the last ten years total installed capacity increased to 8,383.93 MW (year 19992000) from 7,038.75 MW (year 1990-91) with average increase of 135 MW or 1.91% per year. Table 5.1.2 also shows that the rise in peak demand met by UPPCL is 1,517 MW (average 3.4%) in the same period. Further analysis also shows that the actual peak demand met will be around 70% of total installed capacity.
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Table 5.1.2 : Source wise Installed Generation Capacity and Peak Demand met
Years Installed Generation Capacity (MW) (Share in % ) Thermal 1999-00 1998-99 1997-98 1996-97 1995-96 1994-95 1993-94 1992-93 1991-92 1990-91 4,532 (75.11) 4,564 (75.25) 4,544 (75.12) 4,544 (75.12) 4,544 (75.12) 4,544 (75.12) 4,054 (72.9) 3,554 (71.3) 3,554 (71.3) 3,554 (71.3) Hydro 1,501.44 (24.89) 1,501.44 (24.75) 1,504.75 (24.88) 1,504.75 (24.88) 1,504.75 (24.88) 1,504.75 (27.1) 1,504.75 (27.1) 1,504.75 (29.7) 1,504.75 (29.7) 1,432.75 (28.7) Central 2,350.49 2,350.19 1,961.0 2,278.0 2,433.0 2,562 2,496 2,270 2,152 1,632 Total 8,383.93 8,234.63 8,009.75 8,326.75 8,481.75 8,610.75 8,054.75 7,328.75 7,210.75 7,038.75 5,960 5,708 5,666 5,391 5,420 5,296 5,055 4,955 4,750 4,443 71.09 69.31 70.73 64.73 63.90 61.50 62.75 67.61 65.87 63.12 Actual Peak Demand met % of Total MW
Source: UPPCL statistics at a glance-March 2002 and other available documents
With respect to present power scenario, following Table-5.1.3 shows an actual power demand and energy requirement, deficit in energy availability, deficit in peak load. On per day basis energy shortage is about 13.56 % and peak load shortage is about 24.50 %. These actual figures gives fair idea about the present situation of overall UP power sector. The data furnished in the Table 5.1.3 is based on the published Information as per UPPCL document Statistics at a Glance: 2000-01. Table 5.1.3 : Energy and Peak Demand Requirements, Availability & Shortages
Particulars Energy Requirement, Million Units (MU) Energy Availability, in MU Energy Shortage in MU ( %) Peak Demand Registered, MW Peak Demand Met, MW Peak Demand Shortage, MW (%) Source: UPPCL Statistics at a Glance March 2002 123.97 16.82 (13.56 %) 7,138 5,733 1,404 (24.50 %) Figures, per day 140.79
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Future Energy Requirement and Peak Demand Projections by CEA 16th Power Survey is as under (Table- 5.1.4). Table 5.1.4 : Future Projections of Energy Requirement (as per CEA)
Sr.No 1 2 3 4 Year 2001-02 2002-03 2003-04 2004-05 Energy Requirement in GWh(rise) 50,087 53,671 (7.15 %) 57,531(7.19 %) 61,681(7.21 %) Peak Load In MW (rise) 8,018 8,601 (7.27 %) 9,230 (7.31 %) 9,907 (7.33 %)
Source: CEA 16th Power Survey
The expected rise in Energy requirement is about 7.18 % and demand of power is about 7.30 % per annum and no other mega projects are expected to be coming up in the state, the demand-supply gap is expected to be more widen. 5.2 Plans of Capacity Additions Considering the present scenario of shortage of energy and power, capacity additions planned for Uttar Pradesh by CEA and UPPCL in the three 5 year plans are presented in Table 5.2.1. Table 5.2.1 : CEA and UPPCL Plans
Sr. No. A 1. 2. 3. B. 1. 2. 3. Ref . Document / Plan As per CEA planning Ninth 5 year Plan Tenth 5 year plan Eleventh 5 year plan As per UPPCL planning Ninth 5 year Plan Tenth 5 year plan Eleventh 5 year plan NA 2,050 NA NA 727.6 NA NA 2,777.6 NA 4,580 4,250 500 42 2,776 3,867 4,622 7,026 4,367 Thermal MW Hydro MW Total MW
Reference: Fourth national power plan - 1997-2012, CEA document & UPPCL letter to Chief Secretary (Energy), dated August 28, 2001).
The above table shows as against the requirement of 7,026 MW of capacity additions only 2,777.6 MW is planned to be added by UPPCL (this excludes the additions by centre) This
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huge gap between capacity addition plans of central Government and state Government will lead to create a huge shortfall of demand and supply situation of the state. To reduce this, UP government is encouraging the private participation in power generation sector, however, yet the due success is to be achieved. As per Fifteenth Electric Power Survey of India by CEA, the energy requirements and peak load demand projections for UP are as under (Table 5.2.2). Table 5.2.2 : Five Year Plans (FYPs) for UP Sr.No Five Year Plan Energy requirement (GWh) 1. Ninth 5 year Plan 2. Tenth 5 year plan 3. Eleventh 5 year plan 61,066 86,452 (25,386) 1,21,253 (34,801) 11,280 15,841(4,561) 22,041(6,200) Peak Load Demand(MW)
Figures in bracket indicates capacity additions rise with respect to previous FYP Above figures of Five Year Plans (FYPs) show that the additional power generation required in tenth and eleventh plan is 25,386 GWh and 34801 GWh respectively. The rise in generation predicted is around 45.57 % and 40.25% in tenth and eleventh plan respectively as compared to the previous FYP. Also the rise predicted in peak demand is around 40.43 % and 39.13 % in tenth and eleventh plan respectively as compared to the previous FYP. 5.3 Private Sector Participation Private sector participation is currently still very limited in India. When the Indian power sector opened up in 1991, more then 250 Memorandum of Understanding (MoUs) were submitted by Independent Power Producers (IPPs). However, only few IPPs have been set up since then. Total IPP capacity amounts to about 6,000 MW, compared to a total installed capacity in India of 103,000 MW (Indian Infrastructure May 2002). Only few IPPs are listed for the state of UP. In addition to the poor financial condition of the SEBs, IPPs faces additional challenges: Doubt about sanctity of contracts (PPA) Uncertainty on tariff stability Difficulty in obtaining funding from banks/financial institutions Discouragement by the State Government of third party sales/captive use.
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ENCLOSURE II BASELINE STUDY REPORT
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ENCLOSURE - II : BASELINE STUDY REPORT

IDENTIFICATION OF THE MOST LIKELY BASELINE AND THE ASSOCIATED GHG EMISSIONS 1.0 Selection of Baseline Methodology The Indian economy is in transition from a planned economy to a market based economy. For the coming years the market is still expected to operate imperfectly. The growth rate of the infrastructure is inadequate and there is a substantial shortfall in planed projections. Therefore a scenario analysis is the best to be adopted as the baseline methodology for this project. At present details of approved methodology for baseline calculations for CDM projects of capacity more than 15 MW is not available on the UNFCCC website3. However, reference has been taken from OECD and IEA information document regarding baseline methodology (Reference # 31) and UNFCC document Indicative simplified baseline and monitoring methodologies for selected small scale (CDM projects less than 15 MW) project activity categories (Reference # 05). As per the Kyoto Protocol (KP)4 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. With reference to above, a new baseline methodology has been developed as mentioned in section Bof the CDM-PDD report. Following two baseline approaches/scenarios have been considered for methodology development. 1. Combined Margin scenario with use of actual available information / data of past and years and base year. 2. Modified Combined Margin scenario with use of futuristic projections for credit period.
3 4
Source: Indicative Simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories. Source: Kyoto Protocol to the UNFCCC agreed by Conference of Parties (CP)
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2.0
Application of methodology for estimation of GHG emissions UPPCL grid receives power generated by state, central and private power plants based on coal, gas, hydro, nuclear and small portion of renewable sources like bagasse / biomass, solid waste, solar etc. The present project is a bagasse based electricity generation project supplying power to UPPCL grid. For Scenario I, the reference case for the baseline is the generation mix of the base year along with the recently built projects and for scenario II, the baseline reference case is the generation mix of particular year, considering projected future capacity additions to the UPPCL. Future capacity addition in the UPPCL grid is to reduce the shortage of energy and peak demand. The following basis was used at arriving at the reference baseline. o o Existing mix of power generation by UPPCL is considered for base year reference The future mix of generation is considered as future baseline, since UPPCL grid has a power deficit. To meet the present deficit and to enable future growth, additional capacity is required. o The fuel and technology choice for additional capacity depends on a number of factors like availability of finance, location of the project site, the availability of fuel, the availability of infrastructure to support the project, the policy framework for investment in power and renewable energy projects, the purchase of fuel, the sale of power etc. Therefore, a number of market and non-market factors that control the choice of fuel-technology combination.
2.1
Baseline Selection The first step in determining the baseline is the selection of the reference region. As described in Enlosure -I, the state electricity grid (UPPCL) is part of the northern grid with similar resource base of recent projects. In line with the UP state government policy, project promoter has signed a Power Purchase Agreement (PPA) with Uttar Pradesh state grid (UPPCL) and proposes to export surplus power to UPPCL. In view of above,Uttar Pradesh state grid (UPPCL) is considered as a reference for baseline calculations. Scenario I - Baseline is based on the actual generation mix data of UPPCL. Scenario II - The baseline is based on the likely new project portfolio during the crediting period. For the estimation of the baseline, historical information on recently commissioned, under implementation, proposed or announced projects is used. These projects are considered to be indicative of the intentions of the players in the sector and provide a fair estimate of the generation portfolio that will emerge in the period up to 2012. Since the
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crediting period extends to the year 2013 the baseline emissions for the 2013 is statistically calculated.
2.2
UP state grid : GHG Sources in the Current Situation Figure 2.2.1 shows the flow chart of the current delivery system, producing the same amount of electricity as the proposed project. The main GHG emissions in this system arise from burning fossil fuels for electricity generation. In addition to the emissions arising from fossil-fired power generation, additional CO2 emissions occur during the transport of coal and oil from coalmines and oil wells (or ports). In the northern region coalfields are far from the coal-fired power stations. The transportation distance is much smaller for the bagasse used in the proposed project than for the coal-fired power stations. This means transport emission will be lower in the CDM project then they are currently. Because of a lack of data on average transport distance for coal to power stations in Uttar Pradesh and the northern grid, we have not included fuel transport emissions in the system boundary of both the current situation and the project. This also provides a conservative estimate of the emission reductions. Since the fuel requirement of the project will be fulfilled by saved bagasse of Haidergarh and Babhnan sugar mills and biomass will only be used in case of fuel shortage. The DPR indicates that no biomass will be required for 320 days of operation of the cogen.
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Figure 3.2.1 : Flow Chart Of Current
Delivery System OF Uttar Pradesh
THERMAL NUCLEAR
HYDRO
OTHER REGIONAL GRIDS
CENTRAL SECTOR GENERATION (Thermal/Hydro/Nuclear/RE)
NORTHERN REGION GRID
UPRVN THERMAL
PROJECTS (coal / Gas based)
Private Sector Generation (Thermal/Hydro/ Renewables)
UPPCL GRID
HCM (Cogen Project)
UPJVN (Hydro Project)
UPPCL DISTRIBUTION NETWORK
END USERS / CONSUMERS OF UTTAR PRADESH
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2.3
Existing Generation Facilities The consumer of an Indian state gets a mix of power from the different sources. The figures of installed power capacity, share of the state in the central pool, and actual plant availability decides the content of power. In India, the thermal power is mainly generated by burning bituminous coal mined in central and eastern parts and lignite mined in Tamil Nadu, Andhra Pradesh and Gujarat. Only a small fraction of the thermal power capacity is based on naphtha and natural gas. Also, the maximum extent of hydropower is generated in Himalayan region and the south western mountain ranges. The real mix of power in a particular year is however based on actual units generated from various sources of power. The installed capacity and generation statistics for the state of Uttar Pradesh presented in Table 2.3.1 below are compiled from UPPCL & NEDA documents. Table 2.3.1: Installed Capacity and Power Generation Statistics of UP
Sr. No. A. A.1 A.2 A.3 A.4 A.5. A.6 B. B.1 B.2 B.3 B.4 B.5 UPPCL Thermal (coal based) Hydro Micro/small Hydro Renewable sources/MSW etc Import from other sources incl. Industrial cogeneration etc. UPPCL total U.Ps share in Central Schemes (coal/gas/hydro/nuclear) Thermal (coal) Thermal (gas based) Hydro Nuclear U.Ps share in Central Schemes Total Source: 2510.00 203.00 239.49 214 3,166.49 8,844.27 15103.00 1082.00 805.00 1097.00 18,087.00 41,069.80 4,092.00 1,494.35 26.43 40.00 25.00 5677.78 17,565.00 5,232.00 29.00 87.00 69.80 22982.8 Energy Source Installed Capacity in MW Net Generation in GWh
Letter of UPPCL No. 1774-Ni/GP/DPU/2002-07 dated August 28, 2001 regarding capacity addition plan for 10th FYPs
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2.4
Capacity addition forecasts The main key factor effecting the baseline emissions in scenario II approach, is the change in generation mix of the UP State. As per the data available, all new projects that are under planning stage or that have got clearance from UPPCL for implementation are projected as future capacity addition projects in the coming years up to 2007 (see Table 2.4.1 above and UPPCL documents & website). This will clearly indicate the expected change in generation mix up to 2007 and the trend for next years of credit. Information / date gathered from various published documents concerned sources like CEA, CMIE, UPPCL, NEDA, MoP, MNES, GoUP is used for predicting the capacity additions during tenth & eleventh plan (2002-03 to 2011-12). Following Table-2.4.1 shows the capacity additions planned at UPPCL from 2002 until 2007 Table 2.4.1 Capacity Additions Projected by UPPCL by the year 2007
Sr.No. A. 1. 2. 3. 4. Project details Thermal power projects Aanpara-c project Panki expansion project Parichha Expansion project Hardua expansion project Sub Total B. 1. 2. 3. 4. C. Source: Hydel projects Maneri Bhali II Lakhwad Vyasi Shitala Sub Total Total (Thermal + Hydal) 304.00 420.00 3.60 727.60 2,777.60 Targeted for 10th plan (2007) Targeted for 10th plan (2007) Targeted for 10th plan (2007) Coal Gas Coal Gas 2 X 500 1 X 210 2 X 210 2 X 210 2050 Implemented by 2005 Implemented by 2006 Implemented by 2007 Implemented by 2007 Fuel used Capacity (MW) Present Status / Remarks
1) Information received / published documents of CEA, CMIE, UPPCL, NEDA, MoP, MNES, GoUP etc. 2) Letter of UPPCL No. 1774-Ni/GP/DPU/2002-07 dated August 28, 2001 regarding capacity addition plan for 10th FYPs
The actual generation data of the entire UP for the year 2000 - 2001 is available in the form of UPPCL statistics which includes own generation, purchase from central sector power plants, purchase from private sector power plants/ cogeneration plants etc.
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It has been observed that an average capacity addition is in the installed capacity of UP including state and central projects is only about 18-19% during last ten years. (1990-91 to 1999 2000). This will be assumed for prediction of capacity addition in the central schemes for tenth and eleventh plan. As per sixteenth power survey of CEA, average capacity addition is in the state of UP including State and central projects is predicted as 7.19%. The same has been considered for predicting the capacity additions of thermal and hydropower projects of UPPCL during the year 2007 to 2012. The total installed capacity with addition of around 9,000 MW during the year 2002-03 to 2011-12 or around 900 MW average addition per year is arrived as 17,690 MW, which is lower than the required by the end of eleventh five year plan value of 22,040 MW (year 2011-12). With this scenario expected shortage will be of 4,350 MW. Also, there is a good potential for small hydro projects which can be set up on irrigation canals, tanks etc. that will not alter the generation mix substantially. The additional data collected from official documents/website of UP Government in which list of new projects proposed / sanctioned and new expansion proposals which indicates the future capacity additions. These projects are available for private sector promoters. The same data is reproduced and presented in the Annexure A and summary of the same is mentioned as under. Table 2.4.2 Summary of New Projects Available in UP for private sectors
Sr. No. 1. 2. Project Details Thermal projects Hydro projects Capacity (MW) 1,000 2,023 UPPCL project 50 % is expected to be implemented by 10th plan & balance by 11thplan Remarks
Source: Website of Uttar Pradesh Power Corporation Limited (UPPCL), - http://www.uppcl.org
In addition to the above scenario there are number of proposed renewable energy projects. If these capacities are realised as planned, then will help a lot to reduce the shortage of demand for power in the State. Present status of renewable energy projects along with the future projections are as under (Table-2.4.3). Potential for renewable energy projects (REP) excluding solar, in UP is more than 4,000 MW.
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Table 2.4.3 Projections of Renewable Energy Projects (REP)

Sr. No. 1. Renewable Energy Source Present installed capacity Expected additions during 10th plan 117.00 MW 117.00 MW Expected additions during 11th plan 600.00 MW 600.00MW
Micro / Mini Hydel Micro / Mini Hydel Total 26.43 MW
2. (i) (ii) (iii) (iv) (v)
Renewable/Cogen/MSW and other sources Bagasse / Biomass based cogeneration Municipal Waste Biomass Gasifier / misc Wind Solar Photovoltaic Total * Projects are under implementation ** minimum expected additions 40.00 MW 15.00 MW* 2.27 MW 25.00 MW** N.A 0.40 MW 407 550 50.00 MW** 300.00 MW 82.00 MW 400.00 MW 100.00 MW
Sources: Published documents of NEDA, website of government of UP etc
Source of the above information regarding installed capacities is various published documents of NEDA and MNES including the website of Govt. of UP. Since there is no clear cut plan available regarding capacity additions during the tenth & eleventh plan, estimations have been carried out based on the discussions with NEDA officials, the available potential of each of the source, present central policy regarding 10 % share of REP in the total power generation, revised energy policy of UP govt. towards development of renewable energy sector, UPPCL policy for purchase of renewable energy power etc. The total capacity addition in each plan is considered to be equally distributed during the five years span. Based on the capacity addition statement, it is expected that by the eleventh FYP, out of the total installed capacity 62% will be the thermal plants. Balance 38% comprises of hydro, nuclear and renewable energy (9.25%) including micro hydel projects. Considering all the above it is concluded that the thermal generation mix will continuously increase slightly towards 2012. For the detailed calculation please refer to the Annexure C.
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2.5 2.5.1
Calculations of Baseline Emissions On-site Emissions UPPCL grid is considered for baseline analysis and calculation of anthropogenic emissions by fossil fuels during power generation. As mentioned earlier the UPPCL generation mix, coal and gas based power projects are responsible for GHG emissions. Two scenarios considered for baseline calculations are : (i) The Combined Margin scenario (average of the approximate operating margin and the build margin). (ii) Modified Combined Margin scenario
The distribution of capacity additions over the two plan periods is undertaken in the following manner: Based on the reported and collected information on the likely commissioning of projects, the capacities for the projects are listed under the respective years. The expected capacity additions have been listed as new capacities for the year. The capacity additions till the year 2007 are based on information gathered from various sources as mentioned above (also in the reference list). Wherever the particular year of commissioning is not available, these capacities are assumed to equally spread over the plan period. Estimated capacity addition factor is applied for the predictions of conventional power projects of centre and UPPCL during the year 2007 to 2013. Capacity additions through renewable energy projects by the year 2007 is also based on the information collected from concerned sources as mentioned above. Beyond the year 2007 till 2012 it is based on the potential available for each type. The generation from each fuel source was calculated, considering previous year generation as a basis. The most important parameter in estimating the emissions is the future thermal efficiency of the power plants. As per the CEA report, it is assumed that all the coal and lignite based plants coming up in tenth and eleventh five year plan will use pulverized coal sub-critical / super critical pressure technology with the thermal efficiency of around 34 % and gas based plants will use combined cycle gas turbine (CCGT) technology with thermal efficiency of around 43 %. The percentage of carbon that is not burnt is very low and, hence, complete combustion is assumed.
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Scenario-wise, description of estimation of CO2 emissions is as under

I) Scenario 1: The average of the approximate operating margin and the build margin. Similar to the scenario I, baseline calculations were carried out under this scenario. Approximate operating margin and build margin is to be calculated as per the OECD and IEA reference document (reference # 5) and UNFCCC methodology specified for small scale activities. For estimation of operating margin, weighted average of all resources, excluding hydro, geothermal, wind, low-cost biomass and solar generation is considered. For estimation of the build margin (or recently built) the weighted average emissions (in kgCO2/kWh) as most recent 20% of plants built or the 5 most recent plants of recent capacity additions, which ever is greater. In this case also, actual performance data including CO2 emission figures of coal based thermal power plants operating in UP state are considered. Details of coal based projects is as per Table # 2.5 (a) below Share of gas-based projects is very small (2.81%) as compared to coal based, hence standard value of CO2 emission by combustion of gas is considered for baseline calculations (and not actual values). For Natural Gas based power plants IPCC standard emission factor of 56.10 kg CO2/GJ and 45% efficiency is considered. For calculation of build margin, UPPCL data regarding recently build 5 power plants is used which accounts for more than 20 % of total installed capacity of UPPCL. As per the Table # 2.5(b)below, build margin factor for base year (2001) comes out to be 1.0750 kg of CO2/kWh. As per the table, average build margin CO2 emission factor is considered as 1.075 kg CO2/kWh. An improvement of 10% is assumed for build margin, till 2010 considering the central government guideline regarding increase of renewable energy share in the present generation mix to 10% by the year 2010.The same trend has been extended till end of credit period i.e. 2013. Looking at the progress made in the renewable energy power sector (as mention in Enclosure-I) this is a conservative assumption. Step by step calculation of CO2 emissions due to burning of coal and gas for power generation and emission reductions by project activity is as under.
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Step 1
Net emission factor for coal Net emission factor for gas Operating factor margin
Actual emission factor for coal x % of generation by coal out of total generation excl.Hydro and RE projects. Step 1 is to be repeated for gas Net emission factor for coal + Net emission factor for gas (Avg. actual emission factor for thermal projects x recently build thermal projects + emission factor for hydro x recently build hydro projects) / (total of recently build thermal & hydro projects) (Operating margin factor + Built margin factor) /2 Export in season + Export in off-season Units exported to UPPCL grid x average of operating and build margin factor.
Step 2 Step 3 Step 4
: : :
= = =
Built margin factor
Step 5 Step 6 Step 7
: : :
Average of operating and build margin factor Units exported UPPCL CO2 reduction to
= = =
emission
II)
Scenario 2: Modified Combined Margin Method Since the selected state grid is power deficit, there is a continuous addition of capacity in all sectors of grid mix. To take care of this, a modified combined margin method (MCMM) has been developed which has takes into account the present generation mix as well as the capacity additions for the credit period (Ex Post & Ex Ante calculations). In the combined margin methodology, the effect of proposed / future capacity additions are not considered for estimation of carbon intensity of the grid for future years (credit period). Operating margin is calculated as in combined margin method for each year of the credit period with capacity addition consideration.
Step 1 Step 2 Step 3 : : : Modified Combined Margin Factor Units exported UPPCL CO2 reduction to = = = Selected lowest conservative value Combined Margin over of Credit Period. (Export in season) + (Export in off-season ) Units exported to UPPCL grid x Modified Combined Margin Factor
emission
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Table 2.5(a): Power Plant performance and CO2 emissions

Sr. No. Power plant location Installed capacity (MW) 1630 385 848 1442 274 220 1000 2000 330 840 Generation Capacity (MW) 1630 135 653 1014 165 80 960 1545 195 826 Plant Efficiency (%) 31 22 34 25 24 25 33 36 23 30 Coal required (kg/kWh) 0.70 1.02 0.65 0.88 0.90 0.88 0.66 0.61 0.96 0.74 Coal Grade E,F E,F E,F E,F E,F E,F E,F E,F E,F E,F CO2 emission (kg/kg) 1.329 1.329 1.329 1.329 1.329 1.329 1.217 1.620 1.329 1.329 Calculated CO2 emission (kg/kWh) 0.93030 1.35558 0.86385 1.16952 1.19610 1.16952 0.80322 0.98820 1.27584 0.98346
1 Anpara 2 Harduaganj 3 Dadri 4 Obra 5 Panki 6 Paricha 7 Rihand 8 Singrauli 9 Tanda 10 Unchahar
Total / 8969 7203 31.04 0.72 E, F 1.38 0.986 wt.Avg. Source: A paper on Anthropogenic Emissions from Energy Activities in India: Generation and Source Characterization by Moti L.Mittal and C.Sharma
For calculation of build margin, following UPPCL data regarding recently build 5 power plants is used as under. Also this capacity is more than 20 % of total installed capacity Table 2.5(b) :Build margin calculation
Sr.No. Power plant name / location Anpara A Anpara A-Phase II Anpara B Tanda Type Capacity (MW) 420 (2 x 10) 1x210 Year of commissioning 1987 1988 CO2 emission (kg/kWh) 0.93030 0.93030
1. 2. 3. 4.
Thermal- coal based Thermal- coal based Thermal- coal based Thermal- coal based
1x500 1994 0.93030 930 1987 1.27584 (3x310) 5. Khara Hydro 1x22 1992 0.00 TOTAL 2082 Wt. Avg. 1.0750 Source: 1) UPPCL Report, Statistics at a Glance March 2002 2) A paper on Anthropogenic Emissions from Energy Activities in India: Generation and Source Characterization by Moti L.Mittal and C.Sharma
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Following table indicate the net baseline emission factors and certified emissions reductions (CERs) of each year, for Scenario 1 as given above. Table 2.5 (c) Certified Emission Reductions with scenario 15
Operati ng Years Net Baseline Emission Factor (kgof CO2 / kWh) 1.021 1.021 1.021 1.021 1.021 1.021 1.021 1.021 1.021 1.021 Total Baseline Emissions (tones of CO2) 96,926 102,984 109,042 109,042 109,042 109,042 109,042 109,042 109,042 109,042 1,072,245 Project Emissions (tones of CO2) 0 0 0 0 0 0 0 0 0 0 0 Leakage emissions (transportation) 1,950 1,950 1,950 1,950 1,950 1,950 1,950 1,950 1,950 1,950 19,500 Certified Emission Reductions (CERs) (tones of CO2 ) 94,976 101,034 107,092 107,092 107,092 107,092 107,092 107,092 107,092 107,092 1,052,745
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Following table indicate the net baseline emission factors and certified emissions reductions (CERs) of each year, for Scenario 2 as given above.
Table 2.5 (d) : Certified Emission Reductions with Scenario 26

Sr. No. Operatin g Years 1. 2. 3. 4. 5. 2004 2005 2006 2007 2008 Net Baseline Emission Factor (kg of CO2 / kWh) Baseline Emissions (tones of CO2) 86,399 91,799 97,199 97,199 97,199 Project Emissions (tones of CO2) 0 0 0 0 0 Leakage emissions (transportation) 1,950 1,950 1,950 1,950 1,950 Certified Emission Reductions, CERs (tones of CO2 ) 84449 89849 95249 95249 95249
0.91 0.91 0.91 0.91 0.91
5 6
As per Annexure C(Combined margin) As per Annexure C-2 (Modified)
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Sr. No.
Operatin g Years
Net Baseline Emission Factor (kg of CO2 / kWh)
Baseline Emissions (tones of CO2) 97,199 97,199 97,199 97,199 97,199 955,789
Project Emissions (tones of CO2) 0 0 0 0 0 0
Leakage emissions (transportation) 1,950 1,950 1,950 1,950 1,950 19,500
Certified Emission Reductions, CERs (tones of CO2 ) 95249 95249 95249 95249 95249 936,289
6. 7. 8. 9. 10.
2009 2010 2011 2012 2013
0.91 0.91 0.91 0.91 0.91 Total CERs
Therefore an conventional energy equivalent of 1050.32 Million kWh for a period of 10 years in UP would be saved by the exporting power from the proposed 20 MW nonconventional renewable sources bagasse based cogeneration power plant which in turn will reduce 1,052,745 tons of CO2 emissions considering baseline calculations as per scenario 1, 936,289 tons of CO2 emissions considering baseline calculations as per scenario 2.
As being a realistic and conservative approach, which also takes into account the recent trend of power projects build for estimation of CO2 emissions reductions, scenario 2 has been considered for further calculations.
2.5.2 Off-site emissions In the power generation process at thermal power plant, major activities responsible for site emission are construction of infrastructure for the movement of fuel and transport of the fuel. In context of this project, leakage activity identified, which contributes for GHG emissions outside the project boundary is transportation of saved bagasse from Babhnan Sugar Mill to proposed cogen power project at Haidergarh. Calculation of leakage has been carried-out as under: Bagasse to be procured from Bhabnan plant Distance between Bhabnan & Haidergarh Bagasse load per truck Number of trips Consumption of Diesel per trip Total Diesel consumption per annum 81120 MT 160 km 5 MT 16224 40 litres (@4km/litre) 648960 litre
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CO2 emission factor for Diesel Per annum co2 emission
74.10 tonne CO2 / TJ 1950 tons (approx) per year
The same type of CO2 emission (leakage) occurs during transportation of coal from coal mines to respective power plants and distance between the coal mine and power plant is quite higher as compared to the transportation distance between Babhnan and Haidergarh and hence the higher CO2 emission. To be on conservative side, this leakage due to coal transportation has not been added while calculating the baseline of UP grid and hence a small leakage due transportation of bagasse has been neglected from the calculations. Total baseline emissions Total baseline emissions will be addition of on-site emissions and off-site emissions. Since off-site emissions are not considered for baseline emission calculations, as mentioned above, the total baseline emission will be same as on-site emissions.
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Annexure A List of Conventional Power Project Available in the State of Uttar Pradesh to be Implemented in the Near Future7
Sr.No. A. 1. Name of Project & Location Thermal Anpara C, District sonbhadra Sub Total B. 1. 2. 3. 4. 5. Hydro Big Projects Bowla Nand Prayag, Dist. Chamoli Pala Manari, Dist. Uttar Kashi Tapovan Vishnugad, Dist. Chamoli Lohari Nagpala, Dist. Uttar Kashi Tuni Plasu, Dist. Dehradun Sub Total C. Hydro Small Projects 1770 These projects are also open for private sector participation These projects are also open for private sector participation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
7
Capacity (MW) 2 x 500 1000
Remarks
The project is open for private sector participation
These projects are open for private sector participation 3 x 144 4 x104 3 x 120 4 x 130 3 x 14
Supin, Uttarkashi Tons, Uttarkashi Yamuna-1, Uttarkashi Barnigad, Uttarkashi Kakorigad, Uttarkashi Kaldigad, Uttarkashi Asiganga-I, Uttarkashi Asiganga II, Uttarkashi Asiganga III, Uttarkashi Hanumanganga, Uttarkashi Jalandharigarh, Uttarkashi Pilanggad II, Uttarkashi
11.20 14.40 3.60 6.50 3.60 7.00 4.50 3.00 3.00 3.50 4.00 4.00
Source: Official website of Government of Uttar Pradesh, India http://www.upindia.org
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Sr.No. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39.
Name of Project & Location Balganga I, Tehri Balganga II,Tehri Bhilganga II, Tehri Bhilganga III, Tehri Ksheer-Ganga, Chamoli Urgam II, Chamoli Guarikund, Chamoli Patha-Buying, Chamoli Kaliganga I, Chamoli Kaliganga II, Chamoli Nandakini I, Chamoli Nandakini II, Chamoli Nandakini III, Chamoli Birahi-Ganga - I, Chamoli Birahi-Ganga II, Chamoli Naxman-Ganga, Chamoli Alaknanda I, Chamoli Alaknanda II, Chamoli Madhya Mahashwarganga, Chamoli Mandakini-I, Chamoli Mandakini-II,Chamoli Mandakini-III,Chamoli Pabar, Dehradun Relagad, Pithoragarh Painagad, Pithoragarh Jimbagad, Pithoragarh Tankul, Pithoragarh Sub total C TOTAL
Capacity (MW) 5.40 7.00 10.50 8.40 4.00 3.80 13.20 9.70 4.60 6.00 4.80 6.20 4.25 5.40 4.50 4.40 15.00 10.00 5.60 7.50 8.00 8.00 5.20 3.55 4.00 6.00 7.80 251.10 3021.10
Remarks
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Annexure B8 List of Renewable Energy Projects Available in the State of Uttar Pradesh to be implemented in the Near Future - Under NEDAs Programme
Sr.No. Name of Project & Location Capacity (MW) A. A1. Small Hydro New Small & Micro hydel projects to be implemented 117 (estimated) 44 projects are under detailed survey. UPPCL already signed MoUs with 23 projects of total capacity 68.50 MW Remarks
A2. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
Partial list of the projects is as under Harsila, Almora Mansuna, Chamoli Palalganga, Chamoli Gaurikund, Chamoli Gharitganga, Chamoli Baram, Pithoragarh Bhadeli, Pithoragarh Jimigarh, Pithoragarh Chalthi, Pithoragarh Seragad, Pithoragarh Aglar, Tehri Lastergad, Tehri Jalkur, Tehri Jakhol, Uttarkashi Sawrigad, Uttarkashi Siyan, Uttarkashi Supin, Uttarkashi SUB TOTAL A2 1.00 2.00 1.40 2.00 1.25 1.00 1.00 1.35 1.50 1.50 1.35 1.20 2.00 2.00 1.50 3.00 3.00 28.05 These projects are open for private sector participation
Source: Official website of Government of Uttar Pradesh, India http://www.upindia.org
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Sr.No.
Name of Project & Location
Capacity (MW)
Remarks
A3.
Additional estimated Potential Sub Total A
600 717
Expected to be implemented by 10th & 11th FYP
B. 1.
Municipal Solid Waste Agra 8.00 These projects are open for private sector participation (Expected to be implemented in 2-3 years)
2. 3. 4. 5. 6. 7. 8. 9. 10. 11
Aligarh Allahbad Bareilly Ghaziabad Gorakhpur Kanpur Lucknow Meerut Muradabad Varanashi Sub Total B
5.00 7.00 7.00 5.00 5.00 20.00 20.00 7.00 5.00 8.00 97.00
C. C1. C2.
Bagasse Cogeneration Actual implementation Additional Projected potential 40 700 Implemented by 7 sugar mills. It is expected that around 300 MW will be implemented by 10th FYP.
Sub Total C Total
740 1554
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ENCLOSURE III EIA SUMMARY REPORT
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ENCLOSURE III : EIA SUMMARY REPORT

ENVIRONMENTAL IMPACT ASSESSMENT The environmental impacts can be categorized as either primary or secondary. Primary impacts are those that are attributed directly by the project, secondary impacts are those which are indirectly induced and typically include the associated investment and changed patterns of social and economic activities by the proposed action. The proposed project would create an impact on the environment in two distinct phases: During the construction phase and During the operation phase which would have long term effects. The proposed cogeneration plant will be set up adjacent to the proposed sugar-manufacturing unit at Haidergarh. The land is presently barren with not much vegetation. No cutting of trees is involved and there is no deforestation required. During the study of environmental impact assessment, a few additional mitigating measures have been identified to further minimize the net impact. These issues have been covered with each of the impacts below.
IMPACTS DURING CONSTRUCTION The impacts envisaged during the construction of the proposed plant are: Impact on Land use and Hydrology
Due to the terai region, the water level is very high. The pumping of ground water will help in lowering the water level in the factory area. The Sugarcane requires large quantities of water for irrigation. 59% of area is irrigated by tube-wells and increase sugarcane crop will help in bringing down the water table.
Impact on Terrestrial Ecology The proposed land is barren and there is no requirement to clear the land. There is no negative effect of the proposed project on the terrestrial ecology of the area. The project site will also be extensively landscaped with the development of green belt consisting of variety species which would enrich the ecology of the area. Impact on Aquatic Ecology There is no tank, lake, river or surface water body very close to the project site. Hence no impact is envisaged in the construction phase on the aquatic ecology of the area.
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Demography and Socio-Economics Land has been purchased from local villages for which proper price has been paid. Some efforts are necessary to resettle their families. The establishment of the factory will prove highly beneficial to the rural population neighboring the site. There will be a marginal increase in the employment of some persons living in the nearby villages both at the time of construction as well as during operation. Traffic and Traffic Hazards for Access Roads During construction phase, the building material, equipment and machinery and labour will be transported to the site and this will increase the volume of traffic on access roads. However this effect will not be very significant in view of the fact that the construction activities will be spread over a period of 10 months.
The impacts during the construction phase are regarded as temporary or short term and hence do not have an everlasting affect on the soil, air, noise or water quality of the area. During Construction Phase The impact from the construction phase is not envisaged to be serious. However the following factors should be kept in mind to make certain that the impacts are minimal. Site Preparation No major leveling operations are required. However during dry weather conditions, it is necessary to control the dust generated by excavation and transportation activities. At the site such activity will be carried out after water sprinkling. Sanitation The construction site should be provided with sufficient and suitable toilet facilities for workers meeting the proper standards of hygiene. These facilities should preferably be connected to a septic tank and maintained to ensure minimum environmental impact. Noise The impact of noise on the nearest inhabitants during the construction activity will be negligible. However it is advisable that on site workers using high noise equipment use noise protection devices like ear muffs. Noise prone activities have to be restricted to the extent possible during
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night particularly during the period 10 p.m. to 6 a.m. in order to have minimum environmental impact. Construction Equipment and Waste It should be ensured that both gasoline and diesel powered vehicles are properly maintained to minimize smoke in the exhaust emissions. The vehicle maintenance area should be located in such a manner to prevent contamination of surface and ground water sources by accidental spillage of oil. Unauthorized dumping of waste oil should be prohibited. Deforestation Although the site is not endowed with trees and vegetation, in order to avoid felling of trees in the vicinity, the construction site workers should be assisted in procuring fuel for cooking purposes in order to avoid felling of any trees in the neighborhood. Storage of Hazardous Materials The following hazardous materials are anticipated to be stored at site during construction: Petrol and Diesel Gas for welding purpose Painting materials These materials should be stored in drums as per international safety norms. Land Environment As soon as construction is over the surplus earth has to be utilized to fill up low lying areas, the rubbish is to be cleared and all unbuilt surfaces reinstated. There are no trees at the present site hence no felling of trees is involved. Appropriate vegetation will be planned after construction activity. During construction the impacts are generally manifested by loss of minor vegetative cover, migration of minor avian population restricted to site. After green belt development these will be mitigated and the avian population will increase after green belt development since there are no tress presently. Development of green belt is to be taken up along with civil works.
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IMPACTS DURING OPERATION The operational phase will involve power production using bagasse. The following activities in relation to the operational phase will have varying impact on the environment and are considered for impact prediction. Impact on Air Quality The EIA study establishes that the existing status of the ambient air quality of the area is well within the national ambient air quality standard. The pollutants envisaged from the proposed co-generation power plant are Suspended Particulate Matter (SPM), Oxides of Nitrogen (NOx), Carbon mono-oxide (CO) and CO2. As such the bagasse has very low ash content (1.5%). The SPM as ash is controlled by high efficiency Electro-Static Precipitator (ESP). High efficiency (> 99%) ESP will ensure SPM levels less than 150 mg/Nm3 in the stack. There will not be any Sulpher di-oxide (SO2) emission considering bagasse do not contain sulpher. Moisture content of 50% in bagasse will keep the burner temperatures low so that NOX formation will not take place. Similarly the for high efficiency combustion is envisaged so that CO formation do not take place and the CO2 gets absorbed by the sugar canes harvested each year. To reduce the ground level concentrations of the pollutants still further, 72 m high R.C.C. stack height is proposed. This will further help is fast dispersion of pollutants into the atmosphere, thus, reducing their impact in the vicinity of the project area. The predictions for air quality during operation phase were carried out for suspended particulate matter, concentrated for using Air Quality model Industrial Source Complex Version 99155 (ISCST3) developed by the US Environmental protection agency in 1995 for atmospheric dispersion of stack emissions from point source (Details provided in the EIA Report). The maximum predicted ground level concentrations for SPM were 3.14 ug/m3 and these were observed in the North-North-West at a distance of 2.2 km. This shows that HCM will be taking adequate measures such that air quality impacts of running the power plant operation phase are reduced to a minimum. There may be some adverse impact on air quality from truck/tractor exhaust and dust due to transport of bagasse from Babhnan to the site considering per truck load 2 to 5 tones of loose bagasse or 8 tones of bale bagasse will be transported. That is additional trips per day based on the bale or loose type bagasse transport respectively. About 81,120 tones of bagasse will be transported to plant site from Bhabnan per annum. It is recommended that HCM should transport bagasse as compressed bales to reduce number of transport trips. For this HCM has to install baling machine at Bhabnan and de-baling machine at their Haidergarh sugar unit. Considering the advantage of transporting 5 to 8 tones of bagasse as bales over 2 to 5 tones per truck without baling the system will have economic benefits along with environmental benefits. Also, it will be ensured that the bagasse transporting trucks do not return empty.
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The air pollution from the plant in the form of particulate matter emitted mainly from the boiler are found to be well within the prescribed norms and hence no mitigation measures are envisaged. In case of non-availability of bagasse, is envisaged to be used as fuel. Considering bio-mass has more ash content (17%) against 1.5% of bagasse the ESP needs to be fine tuned so that stack emissions remains within limits. Impact on Soil Most of the impacts on soil due to the project are negligible and restricted to the construction phase and will get stabilized during the operational phase. Fly ash collected from the ESP hoppers and air heater hoppers and the ash collected from the furnace bottom hoppers can be used as landfills and also can used as fertilizers in the sugar cane fields. The ash content in the bagasse is less than 2%. The total fly ash collected may be mixed with press mud from the sugar plant and sold to farmers as manure because of its high nutrient value. The boiler soot after cleaning should be stored in a closed drum and to be disposed properly. Similarly the oily waste, cloth etc. should be stored in a drum and disposed properly. Impact On Water Resources The proposed cogeneration units water requirement would be met by the ground water resources. This is considering abundant ground water with continuous recharge is available.
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Impact on Noise For assessing the impact of noise during operation phase, considerations have been given to two aspects, those relating to the noise sources and the other relating to potential receivers. The sound pressure level generated by noise sources decreases with increasing distance from the source due to wave divergence. An additional decrease in sound pressure level with distance from the source is expected due to atmospheric effect in its interaction with objects in the transmission path. Hence, the maximum exposure of noise is when a person is at line of sight from the noise generating source. In the cogeneration unit continuous and very high noise levels are generated near primary air fans, forced drafted fans, boilers, generators, compressors and pumps. Plant equipments are designed to keep noise levels less than 90 dB(A). This is considering damage risk criteria as enforced by OSHA (Occupational Safety and Health Administration) to reduce hearing loss, stipulates that noise level upto 90 dB(A) are acceptable for 8 hour working shift per day. For computing the noise levels at various distances with respect to the plant site in general and the turbo-generator bay in particular, noise propagation analysis was undertaken. The noise computed at a far distance of about 1000m is of the order of 35dB(A) during the operation of the plant. The ambient noise level recorded in the nearby villages ranges between 40-55 dB(A). (Details provided in the EIA Report) Due to masking effect, the ambient noise levels in the nearby villages will not increase during the operation phase. The noise levels in the work areas like generator room and boiler room may be slightly on the higher side (>85dB(A) continuously) but at these places, continuous attendance of workers are not required and workers will be on duty only in shifts as required. Provision of protective personnel equipment in addition will reduce the impact of noise level. Hence these noise levels may not be of much concern from occupational health point of view. However under the general health check-up scheme as per factory act, a trained doctor will check up the workers for any Noise Induced Hearing Loss (NIHL). The greenbelt, which is being provided by HCM will act as noise attenuator.
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Impact on Water Quality The EIA study establishes that the existing status of the water quality of the area are well within the environmental norms. The effluent generated from the proposed sugar plant and the project activity the cogeneration power plant will be treated in the effluent treatment plant to ensure there is no environmental deterioration. The liquid effluents from the power plant would include effluent generated from DM water treatment plant, boiler blow down, cooling tower blow-down, floor washings, sanitation etc. Effluent from DM Plant: Hydrochloric acid and sodium hydroxide will be used as regenerants in the DM water plant for boilers and effluent would be drained into epoxy lined underground neutralizing pits. Generally, these effluents are self neutralizing, however provisions will be made such that the effluents are completely neutralized by addition of acid/alkali. The effluent would then be pumped into the effluent treatment ponds, which are a part of the effluent disposal system. Effluent from RO Plant: The wastewater generated from Reverse Osmosis (RO), which by design will have less than 2100 mg/l Total Dissolved Solids (TDS) will be sent to sugar factory ETP Effluent from Boiler:The salient characteristics of the blow down water from the point of view of pollution would mainly be the pH and temperature since the suspended solids are negligible. The pH would be in the range of 9.8 to 10.3 and the temperature would be around 100 oC. The quantity of the blow down water is as low as 1.2 tones/hr it is proposed to put the blow down into the trench and leave it into the sugar plant effluent ponds. Therefore there are no major impacts envisaged due to effluent generation from the project activity.
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Impact on Ecology The inventory on terrestrial ecology has been compiled through data collection from marshes, irrigation canals, agricultural land and groves (Details provided in the EIA Report). Air emissions from the plant are very low as mentioned above. SPM will contain primarily ash with high nutrient value and will be beneficial to the plants. Other pollutants like NOX and CO are not envisaged in much quantity to adversely affect the plants or animals. There are no liquid discharges from the plant that will interfere with the local aquatic ecological system. High TDS water (<2100 mg/l) will get diluted and will not deplete the dissolved oxygen levels if reaches to water body, even though it will be discharged on the land. Ecology and Green belt Development Implementation of afforestation program is of paramount importance for any industrial development. In addition to augmenting green cover, it also checks soil erosion, marks the climate more conductive, restores water balance and makes ecosystem more complex and functionally more stable. The proponents are proposing for an extensive program for the development of green belt around the plant. The green belt is being proposed for the following objectives: Mitigation of fugitive dust emissions including any odor problems Noise pollution control Controlling soil erosion Balancing eco-environment Aesthetics The tree species selected for green belt would include the native species like Mohua, Dhak, Neem, Mango, Barad etc. The treated sewage effluent from the plant would be used for watering the green belt.
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ENCLOSURE IV ABBREVIATIONS
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ABBREVIATIONS
BCML HCM CCGT CC CDM CEA CER CMIE CO2 CPU CP DCS DPR DM EGEAS EPS ESP EIA FYP GHG GOI GoUP GWh HP HV ICICI IPCC IPP IREDA ISPLAN KP km KV KW KWh LP 1 Lakh MkWh MU Balrampur Chini Mills Limited Haidergarh Chini Mills, a unit of Balrampur Chini Mills Limited Combined Cycle Gas Turbine Climate Change Clean Development Mechanism Central Electricity Authority Certified Emission Reductions Centre for Monitoring Indian Economy Carbon di-oxide Central Power Units Credit Period Distributed Control System Detailed Project Report De-Mineralised Electric Generation Expansion Analysis System Electric Power Survey Electro Static Precipitator Environmental Impact Assessment Five Year Plan Greenhouse Gas Government of India Government of Uttar Pradesh Gega Watt hour High Pressure High Voltage Industrial credit & Investment Corporation of India Intra-governmental Panel for Climate Change Independent Power Producers Indian Renewable Energy Development Agency Integrated System Plan Kyoto Protocol Kilo Kilo Voltage Kilo Watt Kilo Watt hour Low Pressure 1,00,000 Million Kilo Watt hour Million units
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ABBREVIATIONS (Contd.)
MoP MNES MoU MSW MT MW NCE NEDA NTPC NOC p.a PLF PPA PIN REP SEB STG TCD TJ TPH TERI UNFCCC UP UPPCL UPPCB UPERC UPRVUN UPJVN
Ministry of Power Ministry of Non-conventional Energy Sources Memorandum of Understanding Municipal Solid Waste Metric Ton Mega Watt Non Conventional Energy Non conventional Energy Development Agency National Thermal Power Corporation No Objection Certificate Per annum Plant Load Factor Power Purchase Agreement Project Idea Note Renewable Energy Projects State Electricity Board Steam Turbine Generator Tones of Crushing per Day Trillion Joules Tones Per Hour Tata Energy Research Institute United Nations Framework Convention on Climate Change Uttar Pradesh Uttar Pradesh Power Corporation Limited Uttar Pradesh Pollution Control Board Uttar Pradesh Electricity Regulatory Commission Uttar Pradesh Rajya Vidut Utpadan Nigam Uttar Pradesh Jal Vidut Nigam
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ENCLOSURE V REFERENCE LIST
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REFERENCE LIST
Sr.No Particulars of the references Kyoto Protocol / UNFCCC Related 1. 2. Kyoto Protocol to the United Nations Framework Convention on Climate Change Website of United Nations Framework Convention on Climate Change (UNFCCC), http://unfccc.int 3. 4. 5. UNFCCC Decision 17/CP.7 : Modalities and procedures for a clean development mechanism as defined in article 12 of the Kyoto Protocol. UNFCCC document, Clean Development Mechanism-Project Design Document (CDM-PDD) version 01(in effect as of: August 29, 2002) UNFCCC document : Annex B to attachment 3 Indicative simplified baseline and monitoring methodologies for selected small scale CDM project activity categories ver 01, January 21, 2003. Project Related 6. Detailed Project report on 20 MW Non-Conventional renewable Sources bagasse/biomass Cogeneration Power Plant at HCM, Haidergarh, prepared by M/s Avant-Garde Engineers and Consultants (P) ltd., Chennai, India. Executive summary of revised capacity of 20 MW by M/s Avant-Garde Engineers and Consultants (P) ltd., Chennai, India. Various project related information / documents / data received from Haidergarh Chini Mills, Haidergarh during the site visits. Baseline Related 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Center for Monitoring Indian Economy (CMIE) published document of April 2002 on Energy which includes the detailed data of Energy sector of India. Website of Center for Monitoring Indian Economy (CMIE) Pvt. Ltd., Mumbai, India www.cmie.com Website of Central Electricity Authority (CEA), Ministry of Power, Govt. of India www.cea.nic.in CEA published document Fifteenth Electric Power Survey of India CEA published Report on Perspective plan for generating capacity addition, Integrated Operation of regional grids (Free run studies using EGEAS model) CEA published Report on Power on Demand by 2012, Perspective plan studies CEA Report on, Fourth National Power plan 1997 2012. Website of Uttar Pradesh Power Corporation Limited (UPPCL), Energy Ministry, Govt. of UP http://www.uppcl.org UPPCL Report, Statistics at a Glance : 2000-2001, a detailed document on power sector overview of UP. Website of Ministry of Power (MoP), Govt. of India www.powermin.nic.in -
7. 8.
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Sr.No 19. 20. 21. 22.
Particulars of the references Website of Ministry Non-Conventional Energy Sources (MNES), Govt. of India www.mnes.nic.in Paper by Moti L. Mittal and C. Sharma (Ohio Super Computer Center), Anthropogenic Emissions from Energy Activities in India: Generation and Source Characterisation. Website of Indian Renewable Energy Development Agency (IREDA), www.ireda.nic.in Detailed Information document of Non-conventional Energy Development Agency (NEDA), Govt. of Uttar Pradesh Lucknow. (2001-2002).
23.
NEDAs progress report of the year 2001-02 regarding Non-conventional Energy Development programs in Uttar Pradesh.
24. 25. 26. 27. 28.
Official website of Government of Uttar Pradesh, http://www.upindia.org CII Investor Guidebook on bagasse Co-generation . Paper by H. M. Nandanpawar; Overview of Cogeneration Power Projects at Sugar Mills in India at International Conference on Non- Conventional Energy Resources, (Pune, 2001). Background Paper of International Conference and Business Meet on Non Fossil Fuel Generation organized jointly by CII, NHPC and NPC of India Ltd. (New Delhi, 2001). Paper by Dr. V. Bakthavatsalam, (MD, IREDA) Renewable Energy Financing: Indian Experience at International conference and Business Meet on Non-Fossil Fuel Generation. (New Delhi, 2001). Paper by Mr. Rangan Banerjee, (Energy Systems Engineering, IIT Bombay), Review of Electricity Generation from Renewables. (2001). www.infraline.com Paper by Sivan Kartha and Michael Lazarus with Martina Bosi, IEA Practical baseline recommendations for greenhouse Gas mitigation projects in the electric power sector, an OECD and IEA Information paper. Official website of Uttar Pradesh Government, India. www.upindia.org India Electrical Distribution Reform Review and Assessment. A report prepared by CORE international, Washington for USAID, India, September 2002.
29. 30. 31.
32. 33.
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CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

ENCLOSURE I CURRENT POWER SCENARIO & POLICIES

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

ENCLOSURE - I : CURRENT POWER SCENARIO & POLICIES

National Power Scenario

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

Wind Power Small Hydro Biomass Cogeneration Solar Thermal Power

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

Solar Photovoltaic Bio energy / Biomass Power TOTAL

Source: CEA report on fourth national power plan

Potential Of Sugar Cogeneration In India1

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

Table 3.3 : Cogeneration Potential from Sugar Mills

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

UPs Current Delivery System2

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

Uttar Pradesh Power Scenario

Source: UPPCL statistics at a glance-March 2002 and other available documents

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

Source: UPPCL statistics at a glance-March 2002 and other available documents

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

Source: CEA 16th Power Survey

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

ENCLOSURE II BASELINE STUDY REPORT

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

ENCLOSURE - II : BASELINE STUDY REPORT

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

Figure 3.2.1 : Flow Chart Of Current

Delivery System OF Uttar Pradesh

OTHER REGIONAL GRIDS

CENTRAL SECTOR GENERATION (Thermal/Hydro/Nuclear/RE)

NORTHERN REGION GRID

PROJECTS (coal / Gas based)

Private Sector Generation (Thermal/Hydro/ Renewables)

UPJVN (Hydro Project)

UPPCL DISTRIBUTION NETWORK

END USERS / CONSUMERS OF UTTAR PRADESH

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

Source: Website of Uttar Pradesh Power Corporation Limited (UPPCL), - http://www.uppcl.org

BCML - II Classified - Confidential

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

Table 2.4.3 Projections of Renewable Energy Projects (REP)