Professional Documents
Culture Documents
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CONTENTS
D. Environmental impacts
E. Stakeholders’ comments
Annexes
Appendices:
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The list specifying location, capacity and number of WTGs installed are provided below in Table A-1
which includes existing capacities only.
page 3
Power generated from the identified WTGs would be used for captive consumption purpose The
project activity would generate about 76.49 Million kWh annually which would replace TNEB grid
power.
LMW was founded in 1962 and has three business divisions comprising textile machinery, machine
tools and castings. It is headquartered in Coimbatore and has manufacturing units in four locations
housing four textile machinery units, three foundry units and one machine tool facility. All the units
have implemented Quality Management Systems (QMS) as per ISO 9001:2000 standard and
Environmental Management Systems (EMS) as per ISO 14001 standard. LMW has received the Top
Export award for textile machines for several consecutive years and has received the Green Foundry
award from the Institute of Indian Foundrymen.
The textile machinery division of the company manufactures the entire textile spinning machinery
ranging from blowroom to ring spinning. The machine tools division manufactures CNC lathes and
machining centres for automobile companies, auto component manufacturers as well as tier II and III
manufacturers of component conversion industry. The foundry division of the company manufactures
the ductile iron and grey iron castings catering to the captive casting requirements as well as the
demand coming out of the global companies. The textile machinery business accounts for more than
90% of the Company’s revenues
Contribution of the project activity towards achieving sustainable development objective of the
host nation
LMW employs about 7500 people and has taken responsibility for the upliftment of economic and
social fabric of Coimbatore District constantly encouraging small scale entrepreneurs and promoting
technological upgradation of alternate sources of energy. The Group’s commitment towards alternate
energy source devoid of pollution in the atmosphere has made them install wind mills. The project
activity generates electricity in a sustainable manner using wind as a resource thereby promoting
renewable energy. The project activity replaces equivalent power generation from the fossil fuel
dominated power plants of the TNEB/ regional electricity grid and contributes to sustainable
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development of the region and satisfies the four pillars of sustainable development in the following
ways
The wind mills are installed in unused barren lands thereby making the utilisation of land effective. The
project has generated local employment and uplifted their socio-economic lifestyle.
The project has improved the power quality in remote villages and decreased power cuts. Due to power
availability a number of small scale units like poultry farm and power looms have developed in these
areas generating more employment. The project has also resulted in an improvement in the
infrastructure surrounding the region like roads, drinking water and drainage facilities and, other
amenities like schools and medical centres have developed. The identified project activity has
contributed towards poverty alleviation and has improved the standard of living of the local population
as it has employed local manpower during erection and operation of the wind power plant.
The project’s initial investment was about INR 1615 million and in addition to this there will be
continuous inflow of funds considering CDM revenues. In the absence of the project such an inflow of
funds to the region was not envisaged. The project activity has also created direct and indirect job
opportunities to the local community during installation and operation of the WTGs. The project
activity has improved the availability of power to local consumers.
Coal is the predominant fuel in the energy mix of India contributing to almost 55%1 of the total primary
energy production. The annual coal production in India has been estimated at 290 million tonnes2 and
coal demand is expected to experience a two fold3 growth by 2010 and hence a huge demand supply
mismatch is envisaged. Thus the proposed project being a renewable energy power generation activity
will significantly contribute towards improving energy security of the nation and therefore contribute to
the economic well being of the country.
1
Source: Bureau of Energy Efficiency; www.bee-india.nic.in
2
Source: Bureau of Energy Efficiency; www.bee-india.nic.in
3
Source: Bureau of Energy Efficiency; www.bee-india.nic.in
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The project activity is located in the state of Tamilnadu where contribution of thermal energy towards
the total actual generation during the period 2006-07 is 86.19% where as the project utilises grid
connected renewable energy technology viz. WTGs in order to generate green power. Therefore, the
following environmental benefits are derived from the project activity:
• As the wind power replaces equivalent power generation from fossil fuel dominated electricity
grid, there would be a reduction in the GHG emissions due to the project
• Project also eliminates emissions of other air pollutants viz. SOx, NOx, particulate matters etc
which would otherwise be emitted by thermal power plants of the electricity grid for generating
equivalent power
• Project enables conservation of fossil fuel resources for better applications
The project activity demonstrates the viability of grid connected wind energy technology in India and
thus enhances the share of renewable energy in the fuel mix of southern regional grid and the country
as a whole. The project activity has also led to the promotion of relatively high capacity WTGs of
capacities 1250 kW and 1650 kW. The identified project being a local distributed electricity generation
activity provides the following benefits.
• Improved power quality;
• Reliable power supply
• Reduced lines losses;
• Reactive power control;
• Mitigation of transmission and distribution congestion and hence minimising transmission and
distribution loss.
A.3. Project participants:
>>
Name of Party involved Private and/or public entity Kindly indicate if the Party
(host indicates a host Party) (ies) project participants involved wishes to be
(as applicable) considered as project
participant
(Yes/No)
India (host Party) Lakshmi Machine Works No
Limited (LMWL)
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Tamilnadu
state
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Coimbatore district
The detailed location of the WTGs with respect to survey numbers in each village, location, unique
high tension service connection number (HTSC) and date of commissioning of the respective WTG are
provided in Appendix 1.
A.4.2. Category(ies) of project activity:
>>
As per the scope of the project activity enlisted in the ‘list of sectoral scopes and related approved
baseline and monitoring methodologies’, the project activity may principally be categorised as follows:
Scope Number : 1
Sectoral Scope : Energy industries (renewable/non renewable sources).
Type : Grid connected electricity generation from renewable sources
The technology employed, converts wind energy to electricity. In wind power generation, energy of
wind is converted into mechanical energy and subsequently into electrical energy. The technology is a
clean technology since there are no GHG emissions associated with the electricity generation.
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The technical specifications of the WTGs have been provided in Appendix 2. There is no transfer of
technology involved in the project activity. The details of WTGs employed in the project activity and
the corresponding interconnection with the grid are detailed in Appendix 3:
A.4.4. Estimated amount of emission reductions over the chosen crediting period:
>>
Year-2 71,136.6
Year-3 71,136.6
Year-4 71,136.6
Year-5 71,136.6
Year-6 71,136.6
Year-7 71,136.6
Year-8 71,136.6
Year-9 71,136.6
Year-10 71,136.6
(tonnes of CO2e)
Total number of crediting years 10
Annual average over the crediting period of
estimated reductions (tonnes of CO2e) 71,136.6
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B.1. Title and reference of the approved baseline and monitoring methodology applied to the
project activity:
>>
Title – “Consolidated baseline methodology for grid connected electricity generation from renewable
sources”
Reference: Revision to approved consolidated baseline methodology ACM0002
Version : 06
Sectoral Scope : 01
Date : 19 May 20064
B.2 Justification of the choice of the methodology and why it is applicable to the project
activity:
>>
The approved consolidated baseline methodology ACM0002 /version 06, sectoral scope.01 dated 19
May 2006 has been used for the project activity. The ACM0002 methodology is applicable to grid-
connected renewable power generation project activities under the following conditions;
• Applies to electricity capacity additions from ;
• Run of river hydro power plant; hydropower project with existing reservoirs where the
volume of the reservoir is not increased
• New hydro electric power projects with reservoirs having power densities (installed power
generation capacity divided by the surface area at full reservoir level) greater than 4 W/m2.
• Wind sources
• Geothermal sources
• Solar sources
• Wave and tidal sources
The identified project activity is an electricity capacity addition from wind sources and hence complies
with the applicability condition as stipulated in the approved consolidated baseline methodology
ACM0002 /version 06.
4
http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html
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B.3. Description of the sources and gases included in the project boundary
>>
conservative
N2O No Excluded for simplification. This is
conservative
B.4. Description of how the baseline scenario is identified and description of the identified
baseline scenario:
>>
Approved consolidated baseline methodology - ACM0002 stipulates the following as the baseline
scenario for the project activities that do not modify or retrofit an existing electricity generation
facility.
“Electricity delivered to the grid by the project would have otherwise been generated by the operation
of the grid-connected power plants and by the addition of the new generation sources, as reflected in
the combined margin (CM) calculations.”
The proposed project is connected to the TNEB grid which is an integral part of Southern regional grid
in India and in the absence of the project activity the same quantum of / equivalent electricity would
have been generated by the operation of the power plants and the new generation sources within the
southern regional grid. Moreover the proposed project activity is not a retrofitting or modification of
the existing electricity generation facility and hence the approach for formulating the baseline scenario
would be the combined margin estimation of baseline emission factor. The detailed of combined
margin estimation is illustrated below
The baseline emission factor (EFy) is calculated as a combined margin (CM), consisting of the
combination of operating margin (OM) and build margin (BM) factors which is described in this
section.
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As stipulated in the methodology, ‘Dispatch Data Analysis’ (1c) should be the first methodological
choice. However, this approach is not considered for OM emission factor calculations, as the share of
low cost / must run resources of the selected grid over the past five years (2001-02 to 2006-07) has
been estimated at 25.41 %, which is less than 50% of the gross grid generation. This satisfies the
condition as delineated in the selected methodology, for using the simple OM (1a), the simple adjusted
OM (1b.) or the average emission rate (1d) for calculating the operating margin emission factor as
against the dispatch analysis method.
The Simple OM method (1a) can be used for the proposed project activity since the low-cost/must run
resources constitute less than 50% of total grid generation in: 1) average of the five most recent years; as
per the requirement of ACM0002.
5
Source: Central Electricity Authority (CEA) – ‘All India Installed capacity (in MW) of power stations located
in regions of main land and islands’. (http://www.cea.nic.in/power_sec_reports/executive_summary/2007_04/22-
28.pdf)
6
Source: Central Electricity Authority (CEA) – ‘All India Installed capacity (in MW) of power stations located
in regions of main land and islands’. (http://www.cea.nic.in/power_sec_reports/executive_summary/2007_04/22-
28.pdf)
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The Simple adjusted OM (1b) and Average OM (1d) methods would be applicable to the project activity
only where the low-cost/must run resources constitute more than 50% of the total grid generation.
However considering that low-cost/ must run resources constitute less than 50% of the total grid
generation, for the project activity the ‘Simple OM (1a) method is chosen. Thus amongst the ‘Simple
OM’ (1a), ‘Simple adjusted OM’ (1b) and ‘Average OM’ (1d) methods to calculate the Baseline
Emission Factor of the chosen grid, LMWL has adopted the ‘Simple OM’ (1a) method. To select the
appropriate method and also to ascertain the Operating Margin emission factor (EFOM,y) for the
project activity, the project proponent has sourced required statistics from Central Electricity Authority
(CEA).
• (ex-ante) the full generation-weighted average for the most recent 3 years for which data are
available at the time of PDD submission, if or,
• the year in which project generation occurs, if EFOM,y is updated based on ex-post
monitoring.
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For the project activity, the CEA emission factors (Ref: CEA’s CO2 baseline database version 2.0, June
21, 2007) has been used. The CEA data is provided in Annex 3 and is based on ACM0002 (version 6).
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B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered CDM project activity (assessment
and demonstration of additionality): >>
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. As per the selected methodology ACM0002, the project proponent is
required to establish that the GHG reductions due to project activity are additional to those that would
have occurred in absence of the project activity as per the ‘Tool for the demonstration and assessment
of additionality’, version 03 as published in Annex-5 of the Executive Board (EB-29), hereinafter
referred to as “Additionality tool”. The flowchart presented below provides a step-by-step approach to
establishing additionality of the project
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Step 1. Identification of alternatives to the project activity consistent with current laws and
regulation.
Alternative 1- Implementation of the project activity not undertaken as a CDM project activity;
In this alternative, project activity is connected to the TNEB grid so as to wheel power through the grid
for captive consumption. This would displace an equivalent amount of electricity in the power
generation mix of the southern regional grid.
This alternative is in compliance with all legal and regulatory requirements and could be the baseline
option and therefore LMWL may generate power from wind energy resources for captive consumption
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and also sell power to the TNEB grid. However, the relatively low internal rate of return (IRR) of the
project activity indicates that this alternative is financially less attractive if CDM fund flow is not
considered. This is evident as per the Step (2) Investment analysis of the ‘Tool for demonstration and
Assessment of Additionality (ver 03)’ conducted for the project detailed below. Considering low IRR
of the project activity, the project proponent feels the need for CDM funds to make the project a
relatively more attractive investment due to the reasons as outlined below:
(a) Low capacity factor: Though the potential locations for wind mill installations in the country were
identified through detailed micrositing7 the capacity factor of the wind mills in the country is very low.
The low capacity factor of the wind mills adversely affects the power generation and therefore the
profitability of the project which puts the financial sustainability of the project in question.
(b) Grid non-availability: During 2005, 20068 and 20079, TNEB had insisted project promoters to shut
down their wind turbines during peak season (of wind power generation) considering evacuation
problems due to peak generation from thermal power plants and Hydro Power Plants as well as non
availability of adequate substation capacity. This limited the power generation from the project activity
and therefore wheeling of power through TNEB grid which has affected the economics of the project.
From the above it is evident that despite the low financial returns from the project activity, the project
proponent has set up the wind power project. This is primarily with objective of generating clean power
through use of wind resources which would enable reduce GHG emissions by replacing equivalent
electricity generation from the fossil fuel dominated Southern regional grid (having a contribution of
thermal power to the extent of 54.78% in its total installed capacity as on 30.04.0710). By generating
and delivering greener power to the grid, the project contributes to sustainable development. However
as apparent from the above discussions, this alternative ‘Implementation of the project activity not
undertaken as a CDM project activity’ cannot be a potential baseline option considering low economic
7
Reference: Wind Power Density Map, Wind Resource Assessment Unit, Centre for Wind Energy
Technology
8
Reference: Business Line dated 31 May 2006 with article ‘TN wind mills asked to back down turbines’
9
Reference: The Hindu dated 24 June 2007 with article ‘Windmills come to a grinding halt’
10
Source: Central Electricity Authority (CEA) – ‘All India Installed capacity (in MW) of power stations located
in regions of main land and islands’. (http://www.cea.nic.in/power_sec_reports/executive_summary/2007_04/22-
28.pdf)
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attractiveness/ low returns of the project activity. Without CDM fund flow the project would not be
financially viable.
In this alternative, the project activity would not be implemented and therefore equivalent power that is
generated by the identified wind power project would have been drawn from the fossil fuel dominated
Southern regional grid mix leading to GHG emissions into the atmosphere. This alternative is the
continuation of the current situation and is the most likely baseline option.
All the alternatives discussed above are in compliance with applicable legal and regulatory
requirements. Moreover, there is no foreseeable regulatory change that would make the above
alternatives non- compliant.
For this project activity, additionality would be established by conducting the Step 2: Investment
Analysis as per ACM0002/version 06. To conduct the investment analysis, the following sub-steps are
applied:
The project activity uses the wind power for captive power purposes and hence the revenue streams of
the identified project are very distinctly determined through avoidance of purchase of grid power and
also from sale of electricity. Therefore option I – simple cost analysis would not be an appropriate
analysis method.
Amongst the other two options – investment comparison analysis (option II) and benchmark analysis
(option III), the benchmark analysis has been adopted wherein the Internal Rate of Return (IRR) of the
project activity serves as a benchmark to evaluate the economic attractiveness of the project activity.
The project activity is more capital intensive when compared to the alternative 2 i.e. the continuation of
the current situation of importing power from the Southern regional grid which is having a predominant
contribution of thermal energy sources in its fuel mix. An investment analysis of the project activity
was conducted considering IRR as the financial indicator. The internal rate of return (IRR) of the
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project activity was computed and then compared against the benchmark equity IRR of 16% for an
electric utility industry by the Central Electricity Regulatory Commission (CERC).
Depreciation : 10.34%
The internal rate of return (IRR) with and without CDM for each company involved in the project
activity is provided in Table B-3 below:
The internal rate of return of individual WTGs of LMWL without CDM benefit is lower than the 16 %
IRR which is the benchmark for Indian electric utility industry. The IRR is computed for the period of
14 years. The IRR workings would be provided to the DOE during validation.
The low IRR of the project activity can be attributed to the actual power generation which is a result of
low capacity factors and a function of the grid availability which in turn has affected the returns from
sale of power.
The expected incentive from the CDM revenue would reduce the financial risk to a certain extent. All
financial data and calculations used to arrive at the internal rate of return of the project activity with
and without CDM revenues will be provided to the Designated Operational Entity (DOE) during
validation.
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speed in the region since the energy contained in wind is a function of the cube of its speed. Hence the
table below demonstrates how it will affect the profitability of the project if the annual sale of power is
shrunk by another 10% or increased by 10%
1. Reduction in annual generation – Annual generation may reduce due to change in wind
patterns, low capacity factors and any other unforeseen circumstances such as grid non-
availability.
Table B-4: IRR with and without CDM funds (-10% generation)
The result of the above sensitivity analysis reveals the fact that the project’s profitability level would go
down further if power generation by the proposed project activity is further reduced. The returns from
wind power projects at LMWL will remain below the benchmark level of 16% if generation is reduced
by 10% which is a very realistic consideration as the grid availability has not been very encouraging in
the region.
2. Increase in annual generation – Annual generation may increase due to change in wind patterns
and improvements in grid availability and related factors.
Table B-5: IRR with and without CDM funds (+10% generation)
As apparent from the above sensitivity analysis, even with increase in power generation, the post tax
IRR without CDM would still remain below 16% benchmark.
Thus in light of the above discussion it can be concluded that the proposed CDM project is not the most
economic attractive option. Moreover there are some barriers as well that are impediments to the
project activity which are in turn affecting the returns for the project and are discussed below:
Step 3 Barrier analysis
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Having justified the project’s additionality through ‘Investment analysis’, the project proponent wishes
to highlight a few barriers that have affected the performance of the wind power project:
During 2005, 2006 and 2007 many of the wind power promoters were asked by TNEB to shut down /
back down11, 12
their turbines during peak season due to evacuation problems, considering peak
generation from thermal power stations. It appears that during a time when the wind speed is high and
power generation from wind would probably have been the highest, the wind turbines had been asked
to back down their operations. This has resulted in low power generation from wind power projects and
therefore affected the profitability of the project.
It was observed for the project activity that the grid availability during the month of May – July, 2005
was in the range of 53% as against the normal availability of about 93% during the rest of the year
which has affected the power generation to some extent. It is apparent from the entire project activity
that due to grid non-availability the power generation has been reduced during 2005-06 which has
significantly affected the project’s revenues from sale of power to the grid.
Though the potential locations for wind mill installations in the country were identified through
detailed micrositing, the capacity factor of the wind mills in the country is very low. The low capacity
factor of the wind mills adversely affect the power generation and therefore the profitability of the
project. Low capacity factors were observed in the case of the project activity as well based on actual
power generation data during 2005-06.
(c)Technological barrier
The project activity has installed predominantly high capacity WTGs of capacities 1250 kW and 1650
kW which inculcate high pitch technology. This high pitch technology demands additional technical
insight to ensure smooth operation of the WTGs which in turn lead to additional investment when
compared against to the stall technology of comparatively lesser capacity WTGs.
11
Reference: Business Line dated 31 May 2006 with article ‘TN wind mills asked to back down turbines’
12
Reference: The Hindu dated 24 June 2007 with article ‘Windmills come to a grinding halt’
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It can be concluded that the grid non-availability, low capacity factors are significant impediments to
the project activity and limits the project proponent from improving the financial viability of the project
as these aspects affect the returns to the project.
As apparent from both the Investment and Barrier analysis, the project activity is economically not
attractive without CDM funds and therefore the project proponent further proceeds to Step – 4
(Common practice analysis).
From the Step 2 Investment Analysis and Step 3 Barrier analysis, it may be concluded that Alternative
2 (No project activity; continuation of current situation) is a status quo and does not have impediments
or barriers that would prevent its implementation. However, the Alternative 1 (implementation of the
project activity not undertaken as a CDM project activity) was found to be less financially attractive
without CDM revenue, which would prevent implementation of the project activity as elaborated in the
step 2 ‘Investment Analysis’ and briefly explained in Step 3 ‘ Barrier analysis’.
It is further required to conduct the common practice analysis as a credibility check to complement the
investment analysis (Step 2) and barrier analysis (Step 3). The existing common practice needs to be
identified and discussed, which is done in following sub-steps:
Sub-step 4a. Analyze other activities similar to the proposed project activity:
Tamil Nadu is one of the most industrialized states in India and hence the electricity supply -demand
gap always exists. In keeping with the policy of liberalization set in motion since 1991, private
investment for generation of power through thermal stations, mini and micro hydro - electric schemes,
diesel power generation, etc are welcomed by the state. Wind farms are located only in following 8
states of India out of 29 states and 6 union territories: Gujarat, Karnataka, Kerala, Maharashtra, Tamil
Nadu, Andhra Pradesh, Rajasthan and West Bengal, last two states being latest entries. The total
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installed capacity of country’s wind energy is 6270.40 MW13 in 31.12.2006 out of total installed
capacity of 121,381.8 MW14 for the same period. Thus the share of installed capacity of wind was just
5.16%. From the above explanation, it is evident that wind energy is not a regular prevailing practice to
meet the electricity demand of the country.
The cumulative installed capacity of wind power as on 31.12.2006 is about 3216.1 MW in the State of
Tamilnadu out of a total of 6270.4 MW cumulative capacity in India. The state of Tamilnadu has a
share of about 51.29% in installed capacities of wind power projects in the country. There are projects
similar to those implemented by the project proponent in the State of TN however most of them are
also in the process of availing CDM funds15. As on 13 July 2007 there are totally 11 wind power
projects from the State of Tamilnadu registered as CDM projects under the UNFCCC totalling 663.25
MW capacity. Additionally there is one WTG of 1.25 MW in TN state, belonging to a project bundle of
15 MW capacity (spread in many states in the country) which is also registered. With this additional
1.25 MW, the total capacity of wind power project registered at UNFCCC from TN State is 664.5 MW
as on 13 July 2007. There are several other projects under validation stage.
This fact clearly indicates that wind power projects similar to those belonging to the project activity
have considered inflow of CDM funds considering low IRR of the project and other barriers such as
low capacity factors and grid non-availability.
13
www.mnes.nic.in
14
www.cea.nic.in
15
Source: cdm.unfccc.int
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However, the project proponent took the decision of taking the investment risks and secured financing
through internal accruals so as to invest in the CDM project activity after computing the proposed
carbon financing. Besides the direct financing risk, the project activity is also shouldering the
additional transaction costs such as preparing documents, supporting CDM initiatives and maintaining
monitoring protocol to fulfill CDM requirements. The project proponents are shouldering a significant
market or financial risk by taking a pro-active approach in showing confidence in the Kyoto
Protocol/CDM mechanism.
The project proponent’s decision to invest in the CDM project activity and in additional transaction
costs such as preparing documents, supporting CDM initiatives and developing and maintaining M&V
protocol to fulfil CDM requirements was guided by the anthropogenic greenhouse gas emission
reductions the project activity would result in and its associated carbon financing the project activity
would receive through sale of CERs under the Clean Development Mechanism. The revenue from the
CDM funds proves to be vital to project’s feasibility and would significantly improve the sustainability
of the project activity.
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:
>>
B.6.2. Data and parameters that are available at validation:
(Copy this table for each data and parameter)
Data / Parameter: EF
Data unit: T CO2/MWh
Description: Combined Margin CO2 emission factor of the regional grid
Source of data used: CO2 baseline database for the Indian Power Sector –Central Electricity
Authority (CEA), Ministry of Power
Value applied: 0.93
Justification of the CEA has estimated the baseline emission factor for the Southern Regional Grid
choice of data or based on ACM0002
description of
measurement methods
and procedures
actually applied :
Any comment: Details given in Annex-3
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(EGy in MWh) for project activities that do not modify or retrofit an existing electricity generation
facility .
BEy = EGy X EFy
(t CO2) (MWh) (tCO2/MWh)
Where,
EGy is the net quantity of electricity displaced due to the project activity during the year y in
MWh
EFy is the baseline emission factor of the grid during the year y in tons CO2/MWh
The baseline emission factor (EFy) is calculated as a combined margin (CM), consisting of the
combination of operating margin (OM) and build margin (BM) factors according to the following three
steps. Calculations for this combined margin must be based on data from an official source and made
publicly available.
Out of four methods mentioned in the ACM0002/version 06, simple OM approach has been chosen for
calculations in the southern regional grid mix, the low-cost/must run resources constitutes less than
50% of total grid generation. Simple OM factor is calculated as the generation-weighted average
emissions per electricity unit (tCO2/MWh) of all generating sources serving the system, not including low-
operating cost and must-run power plants:
.
Fi , j , y x COEFi , j
i, j
EFOM, simple, y =
GEN j , y
j
Where
F i, j, y is the amount of fuel i (in a mass or volume unit) consumed by relevant power sources
j in year(s) y
j refers to the power sources delivering electricity to the grid, not including low
operating cost and must run power plants, and including imports to the grid
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COEF i, j, y is the CO2 emission coefficient of fuel i (t CO2/mass or volume unit of the fuel), taking
into account the carbon content of the fuels used by relevant power sources j and the percent
oxidation of the fuel in year(s) y, and
GENj,y is the electricity (MWh) delivered to the grid by source j
where
NCVi is the net calorific value (energy content) per mass or volume unit of a fuel i
OXIDi is the oxidation factor of the fuel (reference: page 1.29 in the 1996 Revised IPCC
Guidelines for default values)
EFCO2,i is the CO2 emission factor per unit of energy of the fuel,i
STEP 2: Calculate the Build Margin emission factor (EFBM,y) as the generation-weighted average
emission factor (t CO2/MWh) of a sample of power plant m of southern regional grid, as follows:
Fi ,m , y x COEFi ,m
i, m
EFBM,y =
GEN m , y
m
where
Fi,m,y, COEFi,m and GENm,y - are analogous to the variables described for the simple OM method above
for plants m.
STEP 3: Calculate the electricity baseline emission factor EF electricity, y as the weighted average of the
Operating Margin emission factor (EFOM, y) and the Build Margin emission factor (EFBM, y)
where the weights WOM and WBM, by default, are 75% and 25% respectively and EFOM, Simple,y and
EFBM,y are calculated as described in Steps 1 and 2 above and are expressed in tCO2/MWh.
BEy = EFy x EGy
where
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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BEy are the baseline emissions due to displacement of electricity during the year y in tons of
CO2
EGy is the net quantity of electricity displaced due to the project activity during the year y in
MWh
EFy is the CO2 baseline emission factor for the electricity displaced due to the project
activity in during the year y in tons CO2/MWh
For this methodology, it is assumed that transmission and distribution losses in the electricity grid are
not influenced significantly by the project activity. They are therefore neglected
B.7 Application of the monitoring methodology and description of the monitoring plan:
page 27
Data / Parameter: EF
Data unit: T CO2/MWh
Description: Combined Margin Emission Factor - Southern Grid for wind and solar projects
Source of data used: CO2 baseline database for the Indian Power Sector –Central Electricity
Authority (CEA), Ministry of Power
Value applied: 0.93
Justification of the CEA has estimated the baseline emission factor for the Southern Grid based on
choice of data or ACM0002
description of
measurement methods
and procedures
actually applied :
Any comment: Details given in Annex-3
Electricity generation
As emission reductions from the project are determined by the number of units consumed for captive
purposes, it is mandatory to have a monitoring system in place and ensure that the project activity
produces and uses for captive consumption, the rated power at the stipulated norms. The sole objective
of having monitoring system is to have a constant watch on the emission reductions.
The delivered energy is metered by the project proponent and TNEB at the high voltage side of the step
up transformers installed at each HTSC connection. The metering equipment is located at each WTGs
location.
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Captive consumption
The power used by LMWL for captive purposes is monitored periodically by TNEB and monthly meter
reading is recorded by the authorised representatives of TNEB in presence of the representative of
LMWL.
The wind mills that are used for captive consumption displace TNEB grid power since the power
generated is connected to the grid, and is wheeled through the grid for consumption by the company.
The power consumed by the company for captive purposes is adjusted against the wind power
generated by the company, in the TNEB bills.
As per ACM0002 /version 06 dated 19 May, 2006, the baseline for the project activity is the equivalent
electricity delivered to the grid by the project would have otherwise been generated by the operation of
grid –connected power plants and by the addition of new generation sources, as reflected in the
combined margin calculations. Hence, the baseline is the net electricity wheeled through the grid for
captive consumption multiplied by baseline emission factor (combined margin) of the southern regional
grid. The baseline emission factor has to be determined as per combined margin calculation in
accordance with ACM0002/version 06. The combined margin baseline emission factor has been
derived from CEA data as explained in Step 3 of Section B 6.3.
B.8 Date of completion of the application of the baseline study and monitoring methodology
and the name of the responsible person(s)/entity(ies)
>>
30/07/07
Mr.J. Sridhar ,
Sr. General Manager - Finance
Lakshmi Machine Works Limited.
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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page 30
During construction
Impact on air
Movement of construction material during construction phase would have caused some air quality
impacts which are negligible.
Impact on water
Proper sanitary arrangements were provided by project proponents and therefore impact on water was
minimized.
Personal protective equipments were provided to workers involved in the construction activity to
mitigate the effects of noise pollution. However the project construction did not have impact on
ambient noise levels.
Taking into consideration the project life cycle, the magnitude of the impacts during the construction
phase is found to be negligible and would exist for a temporary period of time till the end of
construction phase. Therefore, it would not effect the environment considerably. The impacts on the
environment due to construction activities of wind turbines are negligible
Operation and Maintenance Phase
Systematic and scientific maintenance of all equipments has been undertaken to ensure the best safety
standards.
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Impact on air
Wind power plants do not contribute to atmospheric pollution as no fuel combustion is involved during
any stage of the operation.
Impact on water
There is absolutely no effluent discharge during operation of wind turbine generators.
Impact on ecology
There are no known migratory birds/endangered species in the region of project activity. Therefore no
harm on the ecological environment is envisaged.
Socio-Economic Impacts
There is no inconvenience to the local community due to the transmission lines. The project activity
helps the up-liftment of skilled and unskilled manpower in the region. The project will be providing
employment opportunities not only during the construction phase, but also during its operational
lifetime. The project activity improves employment rate and livelihood of local populace in the vicinity
of the project. Moreover, the project generates eco-friendly, GHG free power which contributes to
sustainable development of the region.
Conclusion
The net impact under environmental pollution category would be positive as all necessary abatement
measures would be adopted and periodically monitored. The project activity does not have any major
adverse impacts on environment during its construction or operational phase. The socio economic
parameters would show positive impacts due to increased job opportunities.
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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D.2. If environmental impacts are considered significant by the project participants or the
host Party, please provide conclusions and all references to support documentation of an
environmental impact assessment undertaken in accordance with the procedures as required by
the host Party:
>>
The project activity does not fall under the purview of Environmental Impact Assessment notification
of the Ministry of Environment and Forests (MoEF), Government of India (GOI) and the project
activity is exempted from environmental clearances.
The details of environmental impacts during construction and operational stages are already provided in
section D.1 which indicates that the impacts are insignificant.
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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The project proponent had conducted stakeholders’ consultation meeting and requested the
stakeholders to provide their comments and have gathered the comments for the project activity.
LMWL responded to the above points during the stakeholder meeting which have been documented.
The copies of the Minutes of the local stakeholders’ meeting will be made available to the DOE during
the validation
The Project Design Document (PDD) will be hosted in UNFCCC website for global stakeholders’
comments
E.3. Report on how due account was taken of any comments received:
>>
There were no adverse comments received and therefore no action was taken in this regard
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Annex 1
page 35
Annex 2
No public funding for this project activity was received from Annex 1 Parties.
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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Annex 3
BASELINE INFORMATION
(Source: Central Electricity Authority)
(Source: Central Electricity Authority, CO2 baseline database, Ver 2.0, 21 June 2007)
page 37
Annex 4
MONITORING INFORMATION
The Monitoring and Verification (M&V) procedures define a project-specific standard against which
the project'
s performance (i.e. GHG reductions) and conformance with all relevant criteria will be
monitored and verified. It includes developing suitable data collection methods and data interpretation
techniques for monitoring and verification of GHG emissions with specific focus on technical /
efficiency / performance parameters. It also allows scope for review, scrutinize and benchmark all this
information against reports pertaining to M & V protocols.
The M&V Protocol provides a range of data measurement, estimation and collection options/techniques
in each case indicating preferred options consistent with good practices to allow project managers and
operational staff, auditors, and verifiers to apply the most practical and cost-effective measurement
approaches to the project. The aim is to enable this project to have a clear, credible, and accurate set of
monitoring, evaluation and verification procedures. The purpose of these procedures would be to direct
and support continuous monitoring of project performance/key project indicators to determine project
outcomes, greenhouse gas (GHG) emission reductions.
As emission reductions from the project are determined by the number of units used for captive
consumption , it is mandatory to have a monitoring system in place and ensure that the project activity
produces and uses for captive consumption the rated power at the stipulated norms. The sole objective
of having monitoring system is to have a constant watch on the emission reductions.
The delivered energy is metered by the project proponent and TNEB at the high voltage side of the step
up transformers installed at each HTSC connection. The metering equipment is located at each WTGs
location.
Captive consumption
The power used by LMWL for captive purposes is monitored periodically by TNEB and monthly meter
reading is recorded by the authorised representatives of TNEB in presence of the representative of
LMWL.
The wind mills that are used for captive consumption displace TNEB grid power since the power
generated is connected to the grid, and is wheeled through the grid for consumption by the company.
The power consumed by the company for captive purposes is adjusted against the wind power
generated by the company, in the TNEB bills
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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page 39
Appendix 1:
No. of
Wind
WEGs & Date of
Mill SC MAKE S.F.Nos. LOCATION
Capacity in commissioning.
No.
'KW'
331 1 X 1250 SUZLON 327/2 Vadavalli 05/02/05
330 1 X 1250 SUZLON 314/3B Vadavalli 05/02/05
329 1 X 1250 SUZLON 280/3B Vadavalli 05/02/05
326 1 X 1250 SUZLON 274/2 Vadavalli 05/02/05
693 1 X 1650 NEG -MICON 129/1& 129/2 Poolankinar 26.03.05
809 1 X 1650 NEG -MICON 37 Anthiyur 17.05.05
913 1 X 1650 NEG -MICON 83/1,2,3,4 & 84/3 Poolankinar 09.09.05
914 1 X 1650 NEG -MICON 76/4 & 79/2E Poolankinar 09.09.05
1045 1 X 1650 NEG -MICON 196/F3 Pukkulam 17.12.05
1046 1 X 1650 NEG -MICON 406/1C4 Sommavarapatti 19.12.05
1251 1 X 1650 NEG -MICON 212 Part & 213( P) Pukkulam 19.04.06
163/2B(P)&170/2A(P
1252 1 X 1650 NEG -MICON
)
Pukkulam 19.04.06
VESTAS 92/1A(P), 92/1B,
1342 1 X 1650
INDIA 124/2A(P)
Mukkudujallipatti 22.12.06
VESTAS 282/3G,3H,286/ 2(p)
1343 1X1650
INDIA & 286/3(p)
Poolankinar 22.12.06
VESTAS
1456 1X1650
INDIA
342 (P) Pukkulam 11.07.07
VESTAS
1457 1 X 1650
INDIA
516/3B,517/1 Pukkulam 13.07.07
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Appendix 2
ROTOR
Diameter : 82 m
No of Rotor Blade :3
Power Control : Active stall
Rotational speed (Synchronous) : 14.4 rpm
Rotor position : Upwind
Nominal power : 1650 kW
Hub height : 78 m
Tilt angle : 50
OPERATIONAL DATA
GEAR BOX
GENERATOR
TOWER
Mechanical Brake
page 41
No of calipers : 1 pc
CONTROLS
ROTOR
Diameter : 66 m
No of Rotor Blade :3
Swept area : 3421 sq. mtrs
Orientation : Upwind/ Horizontal axis
Rotational speed : 13.9/20.8 rpm.
Rotational direction : Clockwise
Rotor blade material : GRP
Hub height : 74 m
OPERATIONAL DATA
GEAR BOX
TOWER
GENERATOR
page 42
OPERATING BREAKES
YAW DRIVE
page 43
Appendix – 3
No. of
Wind GENERATION STEP UP SUB-STATION
WEGs &
Mill SC MAKE DETAILS TRANSFORM TRANSFORMER CAPACITY
Capacity
No. VOLTAGE ER LOCATION
in 'KW'
FREQUENCY
Sultanpet
1500 KVA, 16 MVA
331 1 X 1250 SUZLON 690 V 50 Hz SS,Palladam Tlk.,
33 KV/690V ,110/33KV
COIMBATORE.
Sultanpet
1500 KVA, 16 MVA
330 1 X 1250 SUZLON 690 V 50 Hz SS,Palladam Tlk.,
33 KV/690V ,110/33KV
COIMBATORE.
Sultanpet
1500 KVA, 16 MVA
329 1 X 1250 SUZLON 690 V 50 Hz SS,Palladam Tlk.,
33 KV/690V ,110/33KV
COIMBATORE.
Sultanpet
1500 KVA, 16 MVA
326 1 X 1250 SUZLON 690 V 50 Hz SS,Palladam Tlk.,
33 KV/690V ,110/33KV
COIMBATORE.
2250KVA &
500 KVA 2X16,1X25 Poolankiner,
NEG -
693 1 X 1650 690 V 50 Hz 22KV/690V MVA, Udumalpet
MICON
& 110/22 KV Tlk.,COIMBATORE
22KV/400V
2250KVA &
500 KVA 4X25 Anthiyur,
NEG -
809 1 X 1650 690 V 50 Hz 22KV/690V MVA,110/ UdumalpetTlk,
MICON
& 22 KV COIMBATORE
22KV/400V
2250KVA &
500 KVA Udumalpet S.S,
NEG - 2x25 MVA,
913 1 X 1650 690 V 50 Hz 22KV/690V UdumalpetTlk,
MICON 110/ 22 KV
& COIMBATORE
22KV/400V
2250KVA &
500 KVA Udumalpet S.S,
NEG - 2x25 MVA,
914 1 X 1650 690 V 50 Hz 22KV/690V UdumalpetTlk,
MICON 110/ 22 KV
& COIMBATORE
22KV/400V
2250KVA &
500 KVA Udumalpet S.S,
NEG - 2x25 MVA,
1045 1 X 1650 690 V 50 Hz 22KV/690V UdumalpetTlk,
MICON 110/ 22 KV
& COIMBATORE
22KV/400V
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
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2250KVA &
500 KVA Udumalpet S.S,
NEG - 2x25 MVA,
1046 1 X 1650 690 V 50 Hz 22KV/690V UdumalpetTlk,
MICON 110/ 22 KV
& COIMBATORE
22KV/400V
2250KVA &
500 KVA Udumalpet S.S,
NEG - 2x25 MVA,
1251 1 X 1650 690 V 50 Hz 22KV/690V UdumalpetTlk,
MICON 110/ 22 KV
& COIMBATORE
22KV/400V
2250KVA &
500 KVA Udumalpet S.S,
NEG - 2x25 MVA,
1252 1 X 1650 690 V 50 Hz 22KV/690V UdumalpetTlk,
MICON 110/ 22 KV
& COIMBATORE
22KV/400V
2250KVA &
500 KVA 4X25 Anthiyur,
VESTAS
1342 1 X 1650 690 V 50 Hz 22KV/690V MVA,110/ UdumalpetTlk,
INDIA
& 22 KV COIMBATORE
22KV/400V
2250KVA &
500 KVA 2X16,1X25 Poolankiner,
VESTAS
1343 1X1650 690 V 50 Hz 22KV/690V MVA, Udumalpet
INDIA
& 110/22 KV Tlk.,COIMBATORE
22KV/400V
2250KVA &
500 KVA Udumalpet S.S,
VESTAS 2x25 MVA,
1456 1X1650 690 V 50 Hz 22KV/690V UdumalpetTlk,
INDIA 110/ 22 KV
& COIMBATORE
22KV/400V
2250KVA &
500 KVA Udumalpet S.S,
VESTAS 2x25 MVA,
1457 1 X 1650 690 V 50 Hz 22KV/690V UdumalpetTlk,
INDIA 110/ 22 KV
& COIMBATORE
22KV/400V