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

CDM – Executive Board

CLEAN DEVELOPMENT MECHANISM


PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)
Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders’ comments

Annexes

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

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring Information

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Revision history of this document

Version Date Description and reason of revision


Number
01 21 January Initial adoption
2003
02 8 July 2005 • The Board agreed to revise the CDM SSC PDD to reflect
guidance and clarifications provided by the Board since
version 01 of this document.
• As a consequence, the guidelines for completing CDM SSC
PDD have been revised accordingly to version 2. The latest
version can be found at
<http://cdm.unfccc.int/Reference/Documents>.
03 22 December • The Board agreed to revise the CDM project design
2006 document for small-scale activities (CDM-SSC-PDD), taking
into account CDM-PDD and CDM-NM.

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SECTION A. General description of small-scale project activity

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


>>
Biomass based power project by Harinagar Sugar Mills Ltd.
Version 09.1
16/10/2012

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


>>
Harinagar Sugar Mills Ltd. proposes to set up a 14.5MW biomass based cogeneration power plant at its
sugar factory in Harinagar, West Champaran district, Bihar, India. The purpose of the project activity is
to generate electricity by the combustion of bagasse which is a carbon neutral fuel. In addition of
bagasse, small quantity of biogas may also be used in the project activity. A part of the generated
electricity (2.75MW) will be used in the adjacent sugar plant and the surplus electricity (10.93MW) will
be exported to the Bihar State Electricity Board (BSEB).

The existing set up at the project site includes four (4) back pressure turbine generator sets, of which
three have a power generating capacity of 3MW and the fourth is of 2MW capacity Apart from this, there
are four boilers of capacities 80tph, 75tph, 35tph and 40tph. The 80tph and 75tph boilers are operating at
pressure of 32kg/cm2 whereas the 35tph and 40tph boilers are operating at 21kg/cm2 pressure. The project
activity will replace the existing 2MW back pressure turbo alternator set and the boilers of 35tph & 40tph
capacity, 21kg/cm2 pressure each. These units will be decommissioned.

The pre-project scenario is as follows:

Boiler
80tph,32kg/cm2

Boiler
75tph,32kg/cm2 Turbine
(3x3MW),
32kg/cm2
Boiler +
35tph,21kg/cm2 2MW,21kg/cm2

Boiler
40tph,21kg/cm2

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Total bagasse available/ generated per season of 100 days at 50% moisture content from the sugar mill in
pre-project scenario is 318,604.86 tonne/year. Below are the details of the bagasse consumed in each
boiler in the pre-project scenario:

Boiler No. Boiler#1 & #2 (21kg/cm2) Boiler #3 & #4 (32kg/cm2)


Bagasse Tonne/year 60,030.65 175831.41
consumed1

Hence there was a bagasse surplus of 82,742.80tonne/year. Since boiler #1 & #2 has been discarded,
hence 60,030.65 tonne of bagasse will be saved. Hence the total saved bagasse from the pre-project
scenario will be 142,773.45tonne/year. This excess bagasse will be used in the proposed project activity.

The proposed project scenario is as follows:

Turbine
Boiler 14.5MW,
85tph,
70kg/cm2
72.4kg/cm2

The project activity involves the installation of a 14.5MW Extraction cum Bleed cum Condensing type
turbine generator operating at a pressure and temperature of 70kg/cm2 and 515+5°C respectively. The
turbine will be connected to an 85 tonnes per hour capacity boiler operating at 72.4kg/cm2 pressure and
525+ 5°C temperature. The project activity will primarily utilize baggase, a by-product of sugar, to
produce renewable electricity and thereby reduce green house gas (GHG) emissions.

Total bagasse available/ generated per season of 100 days at 50% moisture content under project scenario
is 318,604.86 tonne/year. Below are the details of the bagasse consumed in the proposed-project
activity:

Boiler 85tph (72.4kg/cm2)


Season(100days) Off-season(115days)
Bagasse Tonne/year 74,741.01 66,232.79
consumed

Hence, total bagasse consumption in the project activity will be 140,973.80tonne/year.

1
All supporting documents have been provided to the DOE.

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Contribution of Project activity towards Sustainable Development

The project activity contributes towards sustainable development and addresses the key issues as
mentioned below:

Social well-being: The project activity will lead to an increase in the local employment by employing
skilled and unskilled personnel for construction, operation and maintenance of the power plant.

Economical well-being: The generated electricity will be sold to the NEWNE regional grid, thereby
improving the grid frequency and availability of electricity to the consumers which will provide new
opportunities for industries and economic activities to be setup in the area. This will result in local
employment, ultimately contributing to the overall development of the area.

Environmental well being: The combustion of bagasse will lead to a reduction in the emission of green
house gases and other harmful gases like Suspended Particulate Matter (SPM), oxides of sulphur (SOx),
oxides of nitrogen (NOx) etc.

Technological well-being: The technology to be used in the power plant is reliable and safe. The
technology is available in the host country and hence there is no transfer of technology from Annex I
country.

A.3. Project participants:


>>
Name of Party involved Private and/or public entity(ies) Kindly indicate if the Party
(*) ((host) indicates a host project participants(*) involved wishes to be
party) (as applicable) considered as a project
participant (Yes / No)
India (host) Private entity: Harinagar Sugar Mills No
Ltd.
United Kingdom of Great Private entity: Agrinergy Pte Ltd No
Britain and Northern
Ireland
(*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD
public at the stage of validation, a Party involved may or may not have provided its approval. At the
time of requesting registration, the approval by the Party(ies) involved is required.

The contact details are listed in Annex I.

A.4. Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity:


>>

A.4.1.1. Host Party(ies):


>>
India

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A.4.1.2. Region/State/Province etc.:


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State- Bihar

A.4.1.3. City/Town/Community etc:


>>
Village – Harinagar, District - West Champaran

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


unique identification of this small-scale project activity :
>>
The project activity is located inside the sugar complex of Harinagar Sugar Mills Ltd in Bihar. The
geographical co-ordinates of the power plant site are as follows:

Latitude 27° 8’ 54” N


Longitude 84° 19’ 54” E

The following map shows the location of the project activity clearly:

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Project Activity (located at Harinagar village)

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A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:
>>
Sectoral Scope I – Energy Industries (renewable/ non-renewable sources)
Type I – Renewable Energy Projects
Category C – Thermal energy production with or without electricity

The project activity produces renewable energy from the combustion of renewable biomass (bagasse and
biogas) which will be available from the adjacent sugar factory. The cane crushing capacity of the sugar
factory is 10,000 tcd (tonnes of cane per day). The project activity comprises of the following major
equipments:

Boiler
Type Travelling Grate
Capacity 85tph
Pressure 72.4kg/cm2
Temperature 525 +5°C
Turbine
Type Single extraction cum Bleed cum
condensing type
Installed capacity 14.5MW
Pressure 70kg/cm2
Temperature 515 + 5°C

The proposed project activity will utilise the biogas generated from the bio-digester which shall be
utilized in the cogeneration plant boiler.

The boiler will contain sub-systems like De-aerator system, feed water system, attemperator, chemical
dosing equipments and will also be provided with an Electrostatic Precipitator (ESP) to control the dust
emission concentration.

A diesel generator is already present at the site and will be used for black starting i.e. if all of the plant’s
main generators will shut down the DG set will be used to start the large generators, which in turn will be
used to start the main power station generators. The DG set shall be coupled with HT alternator. The
diesel consumed in the DG set shall be monitored and project emissions from this will be considered in
the calculation of emission reductions.

One trough and bi-directional belt conveyor of capacity 50tph shall be installed to feed the bagasse to
Main Bagasse Carrier (MBC) of new boiler. The other belt conveyor of same configuration will be
installed to convey the excess bagasse from MBC of new boiler to the bagasse yard.

For ash handling an electrostatic precipitator shall be installed to control the concentration of particulate
matter in boiler flue gas. The outlet emission at the ESP exit will be below 115mg / Nm3.

The power will be produced at 11kV. For captive power requirement, 11kV power supply will be
stepped down to 433V through a 4.0MVA, 11kV/415V distribution transformer and the surplus power

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for export will be stepped up to 132kV through a 12.5/16MVA, 11kV/132kV outdoor type power
transformer and connected to 132kV Bihar State Electricity sub-station, Ramnagar.

There is no transfer of technology to the host country since the technology is available in and supplied
from India.

A.4.3 Estimated amount of emission reductions over the chosen crediting period:
>>
A 10 year fixed crediting period has been chosen:

Years Estimation of annual emission reductions in tonnes


of CO2e
July 2012 - June 2013 45,495
July 2013- June 2014 45,495
July2014- June 2015 45,495
July2015- June 2016 45,495
July2016- June 2017 45,495
July2017- June 2018 45,495
July2018- June 2019 45,495
July2019- June 2020 45,495
July2020- June 2021 45,495
July2021- June 2022 45,495
Total estimated reductions 45,4950
(tonnes of CO2e)
Total number of crediting years 10
Annual average of the estimated 45,495
reductions over the crediting period
(tonnes of CO2e)

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


>>
The project has not received any public funding.

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

Appendix C, paragraph 2 of the Simplified Modalities and Procedures for Small-Scale CDM project
activities states:

“A proposed small-scale project activity shall be deemed to be a de-bundled component of a


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

• With the same project participants;


• In the same project category and technology/measure; and
• Registered within the previous 2 years; and

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• Whose project boundary is within 1 km of the project boundary of the proposed small-
scale activity at the closest point

There is no registered small-scale CDM project activity or an application to register another small-scale
CDM project activity with the same project participants whose project boundary is within 1 km of the
project boundary of the proposed small-scale activity at the closest point hence, this is not a de-bundled
component of a large scale project activity.

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SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the
small-scale project activity:
>>
AMS I C – Thermal energy production with or without electricity
Version 19, valid from 17th June 2011

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


>>
The methodology states the eligibility criteria for choice of project activity as follows:

Applicability conditions Project activity justification


1 This methodology comprises renewable energy The project activity involves the installation
technologies that supply users with thermal energy of a renewable biomass based cogeneration
that displaces fossil fuel use. These units include system that displaces fossil fuel use.
technologies such as solar thermal water heaters
and dryers, solar cookers, energy derived from
renewable biomass and other technologies that
provide thermal energy that displaces fossil fuel.
2 Biomass-based cogeneration systems are included The project activity is a biomass based
in this category. For the purpose of this cogeneration plant producing both heat and
methodology “cogeneration” shall mean the electricity.
simultaneous generation of thermal energy and
electrical energy in one process. Project activities
that produce heat and power in separate element
processes (for example, heat from a boiler and
electricity from a biogas engine) do not fit under
the definition of cogeneration project.
3 Emission reductions from a biomass cogeneration The project is a biomass-based co-generating
system can accrue from one of the following system that supplies electricity (i) to the
activities: grid, (ii) to adjacent sugar factory. The
(a) Electricity supply to a grid; project activity claims for emission
reductions only from the supply of
(b) Electricity and/or thermal energy (steam or electricity to the grid. This fulfils the
heat) production for on-site consumption or for conditions outlined in paragraph 3(c).
consumption by other facilities;

(c) Combination of (a) and (b).


4 The total installed/rated thermal energy generation The project activity is a cogeneration system
capacity of the project equipment is equal to or less and it solely claims for emission reductions
than 45 MW thermal (see paragraph 6 for the from electrical energy production.
applicable limits for cogeneration project
activities). The total installed capacity is 14.5 MW
which is below the small scale specified
limit of 15 MW.

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5 For co-fired systems, the total installed thermal The project activity is not a co-fired system
energy generation capacity of the project and hence this condition is not applicable.
equipment, when using both fossil and renewable
fuel shall not exceed 45 MW thermal (see
paragraph 6 for the applicable limits for
cogeneration project activities).
6 The following capacity limits apply for biomass The project activity fulfils the condition
cogeneration units: specified in the paragraph 6(c) because it
(a) If the project activity includes emission solely claims for emission reductions from
reductions from both the thermal and electrical electrical energy production.
energy components, the total installed energy
generation capacity (thermal and electrical) of the The total installed capacity is 14.5 MW
project equipment shall not exceed 45 MW thermal. which is below the small scale specified
For the purpose of calculating this capacity limit limit of 15 MW.
the conversion factor of 1:3 shall be used for
converting electrical energy to thermal energy (i.e.,
for renewable energy project activities, the
maximal limit of 15 MW(e) is equivalent to 45 MW
thermal output of the equipment or the plant);

(b) If the emission reductions of the cogeneration


project activity are solely on account of thermal
energy production (i.e., no emission reductions
accrue from electricity component), the total
installed thermal energy production capacity of the
project equipment of the cogeneration unit shall
not exceed 45 MW thermal;

(c) If the emission reductions of the cogeneration


project activity are solely on account of electrical
energy production (i.e., no emission reductions
accrue from thermal energy component), the total
installed electrical energy generation capacity of
the project equipment of the cogeneration unit shall
not exceed 15 MW.
7 The capacity limits specified in the above The project activity involves the installation
paragraphs apply to both new facilities and retrofit of 14.5 MW biomass cogeneration system at
projects. In the case of project activities that the adjacent sugar factory. It is physically
involve the addition of renewable energy units at distinct from the existing units as a new set
an existing renewable energy facility, the total of equipments have been installed as part of
capacity of the units added by the project should the project activity which are not connected
comply with capacity limits in paragraph 4 to 6, to the existing equipments.
and should be physically distinct from the existing
units.
8 Project activities that seek to retrofit or modify an The project activity is a new power plant and
existing facility for renewable energy generation does not involve retrofit or modification of
are included in this category. an existing facility.

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9 New Facilities (Greenfield projects) and project This project activity is installation of a
activities involving capacity additions compared to Greenfield cogeneration unit. Compliance
the baseline scenario are only eligible if they with the “General Guidelines to SSC CDM
comply with the related and relevant requirements methodologies” has been demonstrated at
in the “General Guidelines to SSC CDM relevant places throughout the PDD.
methodologies”.
10 If solid biomass fuel (e.g., briquette) is used, it The project is not using biomass fuel in
shall be demonstrated that it has been produced briquette form.
using solely renewable biomass and all project or
leakage emissions associated with its production
shall be taken into account in emissions reduction
calculation.
11 Where the project participant is not the producer of The project activity does not involve use of
the processed solid biomass fuel, the project solid biomass fuel; hence this criterion is not
participant and the producer are bound by a applicable.
contract that shall enable the project participant to
monitor the source of the renewable biomass to
account for any emissions associated with solid
biomass fuel production. Such a contract shall
also ensure that there is no double-counting of
emission reductions.
12 If electricity and/or steam/heat produced by the The electricity and steam/heat produced is
project activity is delivered to a third party i.e. used for captive consumption by the
another facility or facilities within the project adjacent sugar factory and not delivered to
boundary, a contract between the supplier and another facility or facilities within the
consumer(s) of the energy will have to be entered project boundary.
into that ensures there is no double-counting of
emission reductions.
13 If the project activity recovers and utilizes biogas The project activity is a Greenfield cogen
for power/heat production and applies this project activity based on biomass. Though
methodology on a stand alone basis i.e. without project activity has provision for use of
using a Type III component and applies this biogas also as a supportive fuel along with
methodology, any incremental emission occurring the bagasse but proposed project activity is
due to the implementation of the project activity not a stand alone project involving recovery
(e.g. physical leakage of the anaerobic digester, and utilization of biogas for power/ heat
emissions due to inefficiency of the flaring), shall production.
be taken into account either as project or leakage
emissions. Hence this criterion is not applicable
14 Charcoal based biomass energy generation project The project activity is not charcoal based
activities are eligible to apply the methodology biomass energy generation and hence this
only if the charcoal is produced from renewable condition is not applicable.
biomass sources provided:
(a) Charcoal is produced in kilns equipped with
methane recovery and destruction
facility; or

(b) If charcoal is produced in kilns not equipped

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with a methane recovery and destruction facility,


methane emissions from the production of charcoal
shall be considered. These emissions shall be
calculated as per the procedures defined in the
approved methodology AMS-III.K. Alternatively,
conservative emission factor values from peer
reviewed literature or from a registered CDM
project activity can be used, provided that it can be
demonstrated that the parameters from these are
comparable e.g., source of biomass, characteristics
of biomass such as moisture, carbon content, type
of kiln, operating conditions such as ambient
temperature.

Hence from the above it is concluded that the project activity meets all the applicability conditions of the
small scale methodology AMS I.C, version 19.

B.3. Description of the project boundary:


>>
According to paragraph 15 of the methodology AMS I.C.,
The spatial extent of the project boundary encompasses:
a) All plants generating power and/or heat located at the project site, whether fired with biomass,
fossil fuels or a combination of both;
b) All power plants connected physically to the electricity system (grid) that the project plant is
connected to;
c) Industrial, commercial or residential facility, or facilities, consuming energy generated by the
system and the processes or equipment affected by the project activity;
d) The processing plant of biomass residues, for project activities using solid biomass fuel (e.g.
briquette), unless all associated emissions are accounted for as leakage emissions;
e) The transportation itineraries, if the biomass is transported over distances greater than 200
kilometres, unless all associated emissions are accounted for as leakage emissions;
f) The site of the anaerobic digester in the case of project activity that recovers and utilizes biogas
for power/heat production and applies this methodology on a stand alone basis i.e. without using
a Type III component of a SSC methodology.

Hence, the project boundary of the proposed project activity includes the following:
• Adjacent sugar factory
• Bagasse storage area
• Steam and power generating equipments i.e. boiler, turbine and generator
• Auxiliary consumption units
• NEWNE regional grid

For the purpose of the project activity the relevant grid is defined by the power generating units serving
the same grid as the project activity. In the case of India there are regional grids which facilitate the
transfer of electricity between states. Central Electricity Authority (CEA), Government of India has
divided the Indian power system into two grids for the purpose of calculating the grid emission factor,
namely the new integrated Northern, Eastern, Western, and North-Eastern regional grid (NEWNE) and

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the Southern grid. Bihar is a part of the Eastern Region and we have therefore considered the NEWNE
grid for the analysis.

The below diagram shows the project boundary of the project activity:

Sugar factory Bagasse Bagasse Biogas Project boundary


storage area digester

Boiler Meter
85tph
72.4kg/cm2

DG-Set
Meter Meter

Export
TG
14.5 NEWNE grid
MW

Import

B.4. Description of baseline and its development:


>>
In accordance with AMS I.C., the following can be plausible baseline scenarios for the proposed project
activity:

Baseline scenario Explanation for the applicability of scenario to project


activity
a) Electricity is imported from a grid Not applicable, as the proposed project activity is new
and thermal energy (steam/heat) is Greenfield project. Electricity requirement of the sugar
produced using fossil fuel mill was met from captive power plant and not from grid
and thermal energy is not produced using fossil fuel.

b) Electricity is produced in an on-site Not applicable, electricity and thermal energy were not
captive power plant using fossil produced using fossil fuel in the past.
(with a possibility of export to the
grid) and thermal energy

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(steam/heat) is produced using


fossil fuel
c) A combination of (a) and (b) Not applicable.

d) Electricity and thermal energy Not applicable, electricity and thermal energy were not
(steam/heat) are produced in a produced using fossil fuel in the past.
cogeneration unit using fossil fuel
(with a possibility of export of
electricity to a grid/other facilities
and/or thermal energy to other
facilities)
e) Electricity is imported from a grid Not applicable, historically steam/heat and electricity both
and/or produced in an on-site were produced from biomass.
captive power plant using fossil
fuels (with a possibility of export to
the grid); steam/heat is produced
from biomass
f) Electricity is produced in an on-site Not applicable, electricity was not exported to the grid
captive power plant using biomass historically and steam/heat was not produced using fossil-
(with a possibility of export to a fuel.
grid) and/or imported from a grid;
steam/heat is produced using fossil
fuel.
g) Electricity and thermal energy Applicable: Electricity and thermal energy were produced
(steam/heat) are produced in a in a biomass fired cogeneration unit and there was no
biomass fired cogeneration unit export to the grid or to other facilities.
(without a possibility of export of
electricity either to a grid or to
other facilities and without a
possibility of export of thermal
energy to other facilities). This
scenario applies to a project
activity that installs a new grid
connected biomass cogeneration
system that produces surplus
electricity and this surplus
electricity is exported to a grid.
The baseline scenario is that the
electricity would otherwise have
been generated by the operation of
grid-connected power plants and
by the addition of new generation
sources to the grid.
h) Electricity and/or thermal energy Not applicable as there was no co-fired system on the plant
produced in a co-fired system site.
i) Electricity is imported from a grid The proposed project activity is new biomass cogeneration
and/or produced in a biomass fired system and electricity generated will be exported to grid

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cogeneration unit (without a and there is no import of electricity from grid in baseline
possibility of export of electricity scenario. Hence, this criterion is not applicable.
either to the grid or to other
facilities); stem/heat is produced in
a biomass fired cogeneration unit
and/or a biomass fired boiler
(without a possibility of export of
thermal energy to other facilities).
This scenario applies to a project
activity that install a new biomass
cogeneration system that displaces
electricity which otherwise would
have been imported from a grid.

Hence, amongst the above mentioned baseline scenarios of the applied methodology AMS I.C, the
applicable baseline scenario for the project activity is the paragraph 19(g) i.e. “Electricity and thermal
energy (steam/heat) are produced in a biomass fired cogeneration unit (without a possibility of export of
electricity either to the grid or to other facilities and without a possibility of export of thermal energy to
other facilities.) This scenario applies to a project activity that installs a new grid connected biomass
cogeneration system that produces surplus electricity and this surplus electricity is exported to a grid.
The baseline scenario is that the electricity would otherwise have been generated by the operation of
grid-connected power plants and by the addition of new generation sources to the grid.”

According to the methodology, the steam generation is improved compared to pre-project scenario and
the energy supply is also improved during the crediting period which can be shown under following
table:

Pre project activity2


Steam generation Power supply
196.63 tph 8.40MW

Proposed project activity


Steam generation Power supply
230.07 tph 11.26 MW

From the above table it can be inferred that the energy supply improved during the crediting period
which is in compliance with para 19 (g) of AMS I.C, Ver. 19.

As per paragraph 34 of AMS I.C “For case 19 (g), baseline emissions from the additional production of
electricity that displaces grid electricity import and/or supply electricity to the grid, shall be calculated
as per paragraph 21.”

As per paragraph 21 “Baseline emissions for supply of electricity to and/or displacement electricity from
a grid shall be calculated as per the procedures detailed in AMS I.D or AMS I.F as applicable”

2
The figure is as per 3years historical data from the plant records.

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Hence the baseline emissions for the project activity have been calculated from paragraph 11 of the latest
version of AMS I.D which states that “the baseline emissions are the product of electrical energy
baseline EGBL, y expressed in MWh of electricity produced by the renewable generating unit multiplied by
the grid emission factor”.

BE y = EG BL , y ∗ EFCO2 , grid , y

Where:
BEy Baseline Emissions in year y (tCO2)
EGBL,y Quantity of net electricity supplied to the grid as a result of the implementation of the
CDM project activity in year y (tCO2)
EFCO2,grid,y CO2 emission factor of the grid in year y (t CO2/MWh)

As per paragraph 12 of AMS I.D. – The Emission Factor can be calculated in a transparent and
conservative manner as follows:
a) A combined margin (CM), consisting of the combination of operating margin (OM) and build
margin (BM) according to the procedures prescribed in the ‘Tool to calculate the Emission
Factor for an electricity system’.
OR
b) The weighted average emissions (in kg CO2e/kWh) of the current generation mix. The data of the
year in which project generation occurs must be used.

Calculations must be based on data from an official source (where available) and made publicly
available.”

The latest version of the “tool to calculate the emission factor for an electricity system” has been used to
calculate the emission factor of the regional grid i.e. version 02. The data has been provided by the
Central Electricity Authority, Government of India – “CO2 Baseline Database for the Indian Power
Sector, Version 5”. Approach ‘a’ has been used for the calculation of the Emission Factor of the
NEWNE region.

The combined margin emissions factor is calculated as follows:

EFgrid , CM , y = EFgrid , OM , y × w OM + EFgrid , BM , y × w BM

Where,
EFgrid,CM,y Combined margin CO2 emission factor for the year y (tCO2/MWh)
EFgrid,BM,y Build margin CO2 emission factor for the year y (tCO2/MWh)
EFgrid,OM,y Operating margin CO2 emission factor for the year y (tCO2/MWh)
wOM Weighting of operating margin emission factors (%)
wBM Weighting of build margin emission factors (%)

Simple Operating Margin (tCO2/MWh)


2006-07 2007-08 2008-09
NEW NE 1.0084 0.9999 1.0065

Build Margin (tCO2/MWh)

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NEW NE 0.6751

The tool further specifies that for biomass power generation project activities: wOM = 0.50 and wBM =0.50
(owing to their intermittent and non-dispatchable nature) for the first and subsequent crediting periods.
Therefore, we can calculate the combined margin emission factor as shown in the following table:

Combined Margin (tCO2/MWh)


OM BM CM
NEW NE 1.0049x0.50 0.6751x0.50 0.8400

B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered small-scale CDM project activity:

In line with attachment A to appendix B of the simplified Modalities &Procedures for small scale CDM
project activities, demonstration of additionality focuses on the barriers facing the project. As a part of
additionality, an investment analysis has been performed to demonstrate that the project activity faces an
investment barrier in its implementation. In showing that the project is additional we demonstrate that it
is not a part of the baseline scenario, which in the case of the project activity is the generation of
electricity in fossil fuel based grid connected power plants.

National Policies:

As per the host country Electricity Act 2003, any entity may install power plant on its own. Also, the
central government and various state governments have introduced renewable energy policies to promote
renewable energy technologies.

Privatised companies that were previously state run electricity boards, primarily manage electricity
generation in India. The Electricity Act, 2003 is now the main driver of reform in the electricity sector.
The Electricity Act, 2003 consolidated the laws relating to the generation, transmission, distribution and
trading of electricity and generally sought to put in place measures to promote the development and
supply of electricity across India.

Section 3 of the electricity act also empowered the respective State Electricity Commissions to specify
the terms and conditions for the determination of tariffs in their respective states. Hence, various states
issued respective tariff orders for projects in respective states. All the tariff orders were in force during
the conceptualization of the project

There are neither any national & sectoral policies nor any circumstances that influence the decision or
impose obligation to the project proponent on implementation of the project activity

CDM consideration
In line with Annex 22, EB49 since the start date of the project activity is after 2nd August 2008, the
project proponents have notified the Designated National Authority (DNA) of India and the UNFCCC on
15th May 2010 which is within 6 months of the start date about their intention to seek CDM status. The
email and letters have been provided to the DOE during the site visit.

Investment Barrier:

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The main barrier to the project is the investment barrier. To analyse the feasibility of the project, the
project proponent have conducted a project internal rate of return (IRR) analysis for the project activity
The project could be implemented by other power producing companies and not solely by the project
proponent, and therefore in line with paragraph 12, Annex 5, EB 62, which mentions that Weighted
Average Cost of Capital (WACC) is an appropriate benchmark for project IRR. The typical power
industry WACC is a suitable benchmark because the project activity could be undertaken by an entity
other than the project participant and therefore the specific WACC for the project participant is not
suitable. A typical power industry WACC represents an estimate of the required return on capital and
cost of financing for comparable projects. This is calculated as the weighted average of cost of equity
and cost of debt. The following parameters have been taken into account while calculating the WACC:

Where,
wd weight of debt
cd cost of debt
we weight of equity
ce cost of equity

Cost of Debt
The cost of debt is defined as the rate at which lenders agree to lend money to a project. Accordingly,
the bank prime lending rate (PLR) prevailing at the time of the project investment decision has been
taken as the cost of debt. The PLR is obtained from the Reserve Bank of India website3.

c d = PLR(1 − tax rate)

The prime lending rate during the investment decision date was 11.50%. The tax rate used is average tax
rate calculated for power generating companies in India using the Profit Before Tax (PBT) and Profit
After Tax (PAT) of the firms. The tax rate applicable is 11.33%. Hence, the post tax cost of debt (cd) is
10.19%.

Cost of Equity
The cost of equity has been determined based upon the Capital Asset Pricing Model (CAPM) using the
data from BSE 5004 as this is a more diversified portfolio than BSE 30 or BSE 200. BSE-500 index
represents nearly 93%5 of the total market capitalization on BSE. BSE-500 covers all 20 major industries
of the economy. The model states that

c e = R f + β ( Rm − R f )

Where,
Rm – Rf is termed as Market Risk Premium.

3
http://www.rbi.org.in/scripts/WSSViewDetail.aspx?TYPE=Section&PARAM1=4
4
Bombay Stock Exchange
5
http://www.bseindia.com/about/abindices/bse500.asp

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Rf = Risk Free Return


The risk free rate of return taken is the average of the Indian Government bond rates beyond 10 years
available at the time of the investment decision. The risk free rate of return is 7.80%.

Rm = Market returns

Rm is calculated using Compounded Annual Growth Rate (CAGR) of the BSE-500 Index as it is the
most diversified index in the Indian Equity Markets. The value of Rm is 26.08%. The time period
considered is 8.08 years.

BETA β
Beta measures the risk that cannot be eliminated in a systematic, well balanced and diversified portfolio.
beta is calculated as the covariance between its return and the return of a well diversified market
portfolio, divided by a variance of the return of a well diversified market portfolio.

cov ar (r , rm )
Beta ( β ) =
var(rm )

Where,
r the return from the equity investment in a single stock
rm the return from the equity investment in the well diversified market portfolio

The value of β also depends on the Capital Mix Debt-Equity (D/E) ratio) of the firm. A common practise
to compare equity β along various firms with different capital structure is to adjust the equity β to asset β
(β if the asset was wholly funded by equity).

levered β
Asset Beta =
D
(1 + (1 − tax)( ))
E

For the purpose of calculation of WACC, the average beta value from the power generating companies in
India has been considered and this has been relevered with a 70:30 debt equity ratio which is the
appropriate capital structure for the power sector in India. This is in accordance with guidance 18 of
Annex 5, EB 62 which states – “If the benchmark is based on parameters that are standard in the
market, then the typical debt/equity finance structure observed in the sector of the country should be
used.” Hence the average DE ratio of the power industry has been used.

Beta values of power generating companies in India have been considered for the purposes of its
determination which are outlined in the table below:

Company Name Beta


BF Utilities Limited 1.01
CESC 0.57
Energy Development
1.55
Corporation

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GVK Power and Infra 0.76


Jaiprakash Hydro 1.04
Neyveli lignite 1.31
NTPC 0.38
Reliance Infrastructure 1.18
Tata Power 0.66
GIPCL 0.85
Average Value 0.93

The average beta value is calculated as 0.93.

For calculation of WACC the power industry average Debt to Equity ratio has been considered

Therefore:
Ce = 24.83%

Using the above values we arrive at a WACC of 14.59% as appropriate benchmark for the project
activity.

The assumptions in performing the investment analysis are outlined in the table below with the source:

Sr. Parameter Unit Value Reference


No.
1 Project installed capacity MW 14.5 Financial proposal dated
November 2009
2 Operational days Days 215 Financial proposal dated
November 2009
3 Hours Hrs 24 Financial proposal dated
November 2009
4 Season days Days 100 Financial proposal dated
November 2009
5 Off-season days Days 115 Financial proposal dated
November 2009
6 Capacity of exportable electricity MW 10.93 Financial proposal dated
November 2009
7 Net electricity exported per year MWh/year 54,164 Financial proposal dated
November 2009
8 Investment cost INR million 810 Financial proposal dated
November 2009
9 Term loan interest rate (Bank loan) % 11.75 Financial proposal dated
November 2009
10 Term loan repayment Years 7 Financial proposal dated
November 2009
11 Moratorium period Years 2 Financial proposal dated
November 2009
12 Term loan interest rate (Sugar % 4 Financial proposal dated
Development Fund) November 2009
13 Term loan repayment Years 5 Financial proposal dated

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November 2009
14 Moratorium period Years 3 Financial proposal dated
November 2009
15 O&M expenses 6 INR million 16.73 Financial proposal dated
November 2009
16 Escalation on O&M expenses % 5 Financial proposal dated
November 2009
17 Residual value % 10 Central Electricity
Regulatory Order
(CERC)
18 Bagasse purchase cost INR/Tonne 800 Financial proposal dated
November 2009
19 Escalation % 4% Financial proposal dated
November 2009
20 Export tariff INR/kWh 3.57 Financial proposal dated
November 2009
21 Depreciation on buildings % 10% Indian Company’ Act
1956
22 Depreciation on plant &machinery % 5.28% Indian Company’ Act
1956
23 Depreciation as per Income Tax % 80% Host country guidelines
(IT)
24 MAT rate % 11.33%7 Host country IT rule
25 Corporate tax rate % 33.99%8 Host country IT rule

The proposed project activity is not the addition of renewable energy unit. It is a new renewable energy
unit and physically distinct from the existing units as a new set of equipments have been installed as part
of the project activity which are not connected to the existing equipments. Hence, there is no sharing and
use of common and limited renewable biomass (bagasse). Therefore, paragraph 36 of the methodology,
version19 is not applicable. Whereas the biomass used in the project activity will not be used as
fertilizers or for energy generation. The project participants shall use the renewable biomass (bagasse)
from his own source and hence paragraph 17 and 18 of the General Guidance on leakage in biomass
project activities is not applicable for the proposed project activity.

The project activity is a co-generation power plant and the steam generated shall be consumed in the
project participant’s sugar mill adjacent to the project activity. The opportunity cost of the steam
consumed has been considered in the investment analysis as revenue to the PP. This is conservative as it
leads to increase in the IRR.

Even though bagasse is a by-product during cane crushing season, however, there is an opportunity cost
as bagasse is used in paper production and as domestic fuel in rural areas and as fuel in other bagasse
based power consumption plants. Excess bagasse in the absence of the project activity was being sold

6
O&M expenses include expense for utilities, salaries & wages, repair & maintenance, insurance and administrative
expenses.
7
http://www.incometaxindiapr.gov.in/incometaxindiacr/contents/taxrates/taxrates_2009_10_cos.htm
8
http://www.incometaxindiapr.gov.in/incometaxindiacr/contents/taxrates/taxrates_2009_10_cos.htm

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outside to other users and hence bagasse cost has been considered in the investment analysis. At the time
of investment decision, the bagasse cost has been considered from the financial proposal dated November
2009 which is as per the Bihar Electricity Regulatory commission (BERC) tariff order for biomass co-
generation plants dated 21st May 20099 considering an escalation in bagasse price at 4% per annum.
Based on the above assumptions the project IRR is calculated as 6.12% without CDM revenues. The
IRR is below the benchmark and hence the project is additional.

Sensitivity Analysis
The sensitivity analysis has been done in accordance with EB 51, Annex 58 ‘Guidance on the Assessment
of Investment Analysis’ paragraph 17 and 18. The following factors are expected to have a significant
impact on the internal rate of return of the project and hence a sensitivity analysis has been conducted for
these:

1. Electricity Tariff
2. Investment Cost
3. Bagasse cost
4. Total Operating costs
5. Net export to the grid

The only revenue of the project activity comes from the export of power to the grid. The signed Power
Purchase Agreement (PPA) with the state electricity board has been provided to the validator and it has
been signed as per the BERC tariff order dated 21st May 2009. The results of the variation are shown
below:

Electricity tariff
-10% Base 10%
IRR without CDM 0.00% 6.12% 11.59%

The investment cost has been given a variation of ±10% as per the investment guidance and the results
are tabulated below:

Investment cost
-10% Base 10%
IRR without CDM 7.79% 6.12% 4.70%

The bagasse cost has been varied by ±10% to determine its effect on the project IRR.

Price of bagasse
-10% Base 10%
IRR without CDM 10.15% 6.12% 0.00%

9 http://www.berc.co.in/media/Other-Order/Bagasse%20BiomassTarif%20Order-21-5-09-.pdf

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The total operating costs were varied and the following results highlight the importance of CDM
revenues in the project activity.

Total operating costs


-10% Base 10%
IRR without CDM 7.00% 6.12% 5.12%

The net power exported to the grid has also been given a variation of ±10% and the results are as shown
below:

Net export
-10% Base 10%
IRR without CDM 0.00% 6.12% 11.59%

Based on the above results, we can see that the IRR without CDM remains below benchmark even on
subjecting the key parameters to a sensitivity analysis reiterating the need for CDM revenues for the
project.

Sensitivity analysis based on Tariff as per BERC order dated 29th June 2010

The sensitivity analysis has also been done based on the BERC tariff order dated 29th June 2010, which
was available after the investment decision making. As per the tariff order, tariff has two components,
fixed and variable. Fixed tariff rate is given for 13 years and decreasing every year but variable
component is provided for only one year. On conservative basis, PP assumed that variable component
will be same till 13th years as tariff order does not speak about tariff structure after 13 year. As fixed
tariff rate decreasing every year, it is likely that variable component of tariff will also decrease every
year. Hence, the following parameters are expected to have a significant impact on the internal rate of
return of the project and hence a sensitivity analysis has been conducted for these:

1. Electricity tariff
2. Investment cost
3. Bagasse cost
4. Operational cost
5. Net export to the grid

The result in the variation on electricity tariff is given below:

Electricity tariff
-10% Base 10%
IRR without CDM 3.62% 3.54% 3.27%

If tariff increased by 10% then IRR crossing the benchmark but tariff order suggests that tariff rate is
decreasing every year, hence increase in tariff by 10% is highly unlikely scenario.

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The investment cost has been given a variation of ±10% as per the investment guidance and the results
are tabulated below:

Investment cost
-10% Base 10%
IRR without CDM 4.98% 3.54% 2.35%

The bagasse cost has been varied by ±10% to determine its effect on the project IRR.

Price of bagasse
-10% Base 10%
IRR without CDM 3.37% 3.54% 3.61%

The total operating costs were varied and the following results highlight the importance of CDM
revenues in the project activity.

Total operating costs


-10% Base 10%
IRR without CDM 3.52% 3.54% 3.57%

The net power exported to the grid has also been given a variation of ±10% and the results are as shown
below:

Net export
-10% Base 10%
IRR without CDM -2.81% 3.54% 8.24%

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:


>>
ER y = BE y − PE y − LE y

Where:
ERy Emission reductions in year y (tCO2e)
BEy Baseline emissions in year y (tCO2e)
PEy Project emissions in year y (tCO2)
LEy Leakage emissions in year y (tCO2)

Baseline emissions

BE y = EG BL , y ∗ EFCO2 , grid , y
Equation 1
Where:
BEy Baseline Emissions in year y (t CO2)
EGBL, y Quantity of net electricity supplied to the grid as a result of the implementation of the
CDM project activity in year y (MWh)

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EFCO grid y CO2 emission factor of the grid in year y (t CO2/MWh)

EG BL , y = EGExport , y − EGIm port , y

Where:
EGExport, y Quantity of net electricity exported to the grid in year y (MWh)
EGImport, y Quantity of electricity imported from the grid in year y (MWh)

EFCO2,grid,y is calculated using the data from the “CO2 Baseline Database for the Indian Power Sector –
User Guide”, Version 5, which is the official source of the Ministry of Power, Government of India.

As per the “Tool to calculate the emission factor for an electricity system, version 02”, the combined
margin emission factor is calculated as per the following steps:

Step 1: Identify the relevant electricity systems


Step 2: Choose whether to include off-grid power plants in the project electricity system (optional)
Step 3: Select a method to determine the Operating Margin (OM)
Step 4: Calculate the operating margin emission factor according to the selected method
Step 5: Identify the group of power units to be included in the build margin (BM)
Step 6: Calculate the build margin emission factor
Step 7: Calculate the combine margin (CM) emissions factor

The following section details the steps mentioned above in order to calculate the combined margin
emission factor:

Step 1: Identify the relevant electricity systems

The tool requires that for the purpose of determining the electricity emission factor, a project electricity
system is defined by the spatial extent of the power plants that are physically connected through
transmission and distribution lines to the project activity and that can be transmitted without significant
transmission constraints.

It has also been mentioned that in the case of India the Government of India has published a delineation
of the project electricity system and connected electricity systems, the delineations provided are therefore
used as shown in the following table:

NEWNE grid Southern grid


Northern Eastern Western North-Eastern Southern
Chandigarh Bihar Chhattisgarh Arunachal Pradesh Andhra Pradesh
Delhi Jharkhand Gujarat Assam Karnataka
Haryana Orissa Daman & Diu Manipur Kerala
Himachal Pradesh West Bengal Dadar & Nagar Meghalaya Tamil Nadu
Jammu & Kashmir Sikkim Haveli Mizoram Pondicherry
Punjab Andaman & Madhya Pradesh Nagaland Lakshwadeep
Rajasthan Nicobar Maharashtra Tripura
Uttar Pradesh Goa
Uttarakhand

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The project activity supplies electricity to the NEWNE grid and hence NEWNE grid has been chosen as
the relevant electric power system.

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

Project proponents have chosen Option I: Only grid power plants are included in the calculation.

Step 3: Select a method to determine the operating margin (OM)

As per the tool the calculation of the operating margin emission factor is based on one of the following
methods:

a) Simple OM
b) Simple adjusted OM
c) Dispatch data analysis OM
d) Average OM

The tool allows the use of any of the above mentioned methods to calculate the operating margin
emission factor; however, in order to use the simple OM method, it must be ensured that low-cost/must-
run resources constitute less than 50% of the total grid generation in:

1. Average of the five most recent years


2. Based on long term averages for hydroelectricity production

We have adopted the approach of average of the five most recent years for calculating the share of low
cost must-run sources. Please see Annex 3 for data. Since the low-cost/must-run resources constitute
less than 50% of the total grid generation the simple OM method has been chosen. As per the Central
Electricity Authority CO2 baseline database, in India, hydro and nuclear stations qualify as low-cost/
must run sources and are excluded.

According to the tool, the emission factor can be calculated using either of the two following data
vintages:

• Ex ante option: A 3 –year generation-weighted average, based on the most recent data available
at the time of submission of the CDM-PDD to the DOE for validation, without requirement to
monitor and recalculate the emissions factor during the crediting period, or
• Ex post option: If the ex post option is chosen, the emission factor is determined for the year in
which the project activity displaces grid electricity, requiring the emissions factor to be updated
annually during monitoring. If the data required to calculate the emission factor for year y is
usually only available later than six months after the end of year y, alternatively the emission
factor of the previous year (y-1) may be used. If the data is usually only available 18 months after
the end of year y, the emission factor of the year proceeding the previous year (y-2) may be used.
The same data vintage (y, y-1, or y-2) should be used throughout all crediting periods.

“Ex ante option: A 3-year generation - weighted average” has been selected for the purpose of emission
reductions calculation for this project.

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Step 4: Calculate the operating margin emission factor according to the selected method

The operating margin emission factor is calculated as the generation-weighted average CO2 emissions per
unit net electricity generation (tCO2/MWh) of all generating power plants serving the system, not
including low cost/must run power plant/units. The operating margin emission factor is defined as the
weighted-average emissions per electricity unit (tCO2/MWh) of all generating sources serving the
system, excluding zero or low-cost/must-run power sources based on the average of the latest three years
of data available (2006-07, 2007-08, 2008-09). The OM has been calculated as per the equation 1 of the
tool:

∑ EG xEF
m
m, y EL , m , y
EFgrid ,OMsimple , y =
∑ EG m
m, y

Where:
EFgrid,OMsimple,y Simple operating margin CO2 emission factor in year y (tCO2/MWh)
EGm,y Net quantity of electricity generated and delivered to the grid by power unit m in year y
(MWh)
EFEL,m,y CO2 emission factor of power unit m in year y (tCO2/MWh)
m All power units serving the grid in year y except low-cost / must-run power units
y The relevant year as per the data vintage chosen in Step 3

Determination of EFEL,m,y

The emission factor of each power unit m has been determined by Option A1, equation 2 of the tool as
follows:

∑ FC
i
i,m, y xNCVi , y xEFCO 2,i , y
EFEL ,m , y =
EGm, y
Where:

Where:
EFEL,m,y CO2 emission factor of power unit m in year y (tCO2/MWh)
FCi,m,y Amount of fossil fuel type i consumed by power unit m in year y (Mass or
volume unit)
NCVi,y Net calorific value (energy content) of fossil fuel type i in year y (GJ/mass
or volume unit)
EFCO2,i,y CO2 emission factor of fossil fuel type i in year y (tCO2/GJ)
EGm,y Net quantity of electricity generated and delivered to the grid by power
unit m in year y (MWh)
m All power units serving the grid in year y except low-cost/must-run power
units
i All fossil fuel types combusted in power unit m in year y
y The relevant year as per the data vintage chosen in Step 3

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As per the database provided by the Central Electricity Authority the weighted generation OM is
calculated to be 1.0049tCO2/MWh.

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


2006-07 2007-08 2008-09
NEWNE 1.0084 0.9999 1.0065

Net Generation in Operating Margin


(GWh)
2006-07 2007-08 2008-09
NEWNE 3,79,471 4,01,642 4,21,803

Net Generation in Operating Margin


including imports (GWh)
2006-07 2007-08 2008-09
NEWNE 3,79,471 4,01,642 4,21,803

Please refer to Annex 3 for detailed information.

Step 5: Identify the group of power units to be included in the build margin (BM)

The tool to calculate the emission factor requires the project proponent to choose between the following
two options for the vintage of data,

Option 1: For the first crediting period, the build margin emission factor should be calculated ex-ante
based on the most recent information available on units already built for sample group m at the time of
CDM-PDD submission to the DOE for validation. For the second crediting period, the build margin
emission factor should be updated based on the most recent information available on units already built
at the time of submission of the request for renewal of the crediting period to the DOE. For the third
crediting period, the build margin emission factor calculated for the second crediting period should be
used. This option does not require monitoring the emission factor during the crediting period.

Option 2: For the first crediting period, the build margin emission factor shall be updated annually, ex-
post, including those units built up to the year of registration of the project activity or, if information up
to the year of registration is not yet available, including those units built up to the latest year for which
information is available. For the second crediting period, the build margin emissions factor shall be
calculated ex-ante, as described in option 1 above. For the third crediting period, the build margin
emission factor calculated for the second crediting period should be used.

Option 1 has been chosen from the above mentioned options and the build margin has been calculated ex-
ante based on the most recent information available on the plants already built for a sample group m at
the time of PDD submission. The build margin emission factor will be updated with the most recent
information available during the second crediting period. There will not be any monitoring of the
emission factor during the first crediting period.

Step 6: Calculate the build margin emission factor

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The build margin emission factor has been obtained from the CO2 Baseline database published by the
Central Electricity Authority for the year 2008-09 which is 0.6751tCO2/MWh.

It has been calculated by equation 13 of the tool

m
∑ EG xEFm, y EL , m , y
EFgrid , BM , y =
∑ EG
m
m, y

Where:

EFgrid,BM,y Build margin CO2 emission factor in year y (tCO2/MWh)


EGm,y Net quantity of electricity generated and delivered to the grid by power unit m in year y
(MWh)
EFEL,m,y CO2 emission factor of power unit m in year y (tCO2/MWh)
M Power units included in the build margin
Y Most recent historical year for which power generation data is available

Build Margin (tCO2/MWh) (not adjusted for imports)


2006-07 2007-08 2008-09
NEWNE 0.6313 0.5977 0.6751

Please refer to Annex 3 for detailed information.

Step 7: Calculate the combined margin emissions factor

The combined margin emission factor is calculated as follows:

EFgrid ,CM , y = EFgrid ,OM , y × wOM + EFgrid , BM , y × wBM

Where:
EFgrid,CM,y Combined margin CO2 emission factor for the year y (tCO2/MWh)
EFgrid,BM,y Build margin CO2 emission factor for the year y (tCO2/MWh)
EFgrid,OM,y Operating margin CO2 emission factor for the year y (tCO2/MWh)
wOM Weighting of operating margin emission factors (%)
wBM Weighting of build margin emission factors (%)

The tool further specifies that for biomass power generation project activities: wOM = 0.50 and wBM =0.50
(owing to their intermittent and non-dispatchable nature) for the first and subsequent crediting period.
Therefore, we can calculate the combined margin emission factor as shown in the following table:

tCO2/MWh
Operating Margin (generation weighted average of 3 years) 1.0049
Build Margin 0.6751
Combined Margin (1.0049 x 0.5) + (0.6751 x 0.5) =
0.8400

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For the purpose of calculations, EFgrid,CM,y = EFCO2,grid,y

Project emissions

A diesel generator shall be used for emergency situations and consumption of diesel shall be monitored.
Ex ante PP has considered zero project emission but diesel consumption will be monitored throughout
the crediting period.

Below formula shall be used to account project emission arising from diesel consumption in DG sets
during project operation.

According to the methodological tool “Tool to calculate project or leakage CO2 emissions from fossil
fuel combustion”- CO2 emissions from fossil fuel combustion in process j are calculated based on the
quantity of fuels combusted and the CO2 emission coefficient of those fuels, as follows:

PE FC , j , y = ∑ FCi , j , y × COEF i , y
i

Where:
PEFC,j,y The CO2 emissions from fossil fuel combustion in process j during the year y
(tCO2/MWh)
FCi,j,y The quantity of fuel type I combusted in process j during the year y (mass or volume
unit/yr)
COEFi,y The CO2 emission coefficient of fuel type I in year y (tCO2/mass or volume unit)
I The fuel types combusted in process j during the year y

The COEFi,y is calculated from Option B as per the tool, as follows:

The CO2 emission coefficient COEFi,y is calculated based on net calorific value and CO2 emission
factor of the fuel type i, as follows:

COEFI , y = NCV,i , y × EFCO 2,i , y

Where:
COEFi,y = Is the CO2 emission coefficient of fuel type i (tCO2/mass or volume unit);
NCV,i,y = Is the weighted average net calorific value of the fuel type i in year y (GJ/mass
or volume unit of the fuel);
EFCO2,i,y = Is the weighted average CO2 emission factor of fuel type i in year y (tCO2 /GJ)
i = Are the fuel types combusted in process j during the year y

For ex-ante purposes diesel related project emission are not considered for simplification. However, the
diesel consumption shall be monitored ex-post and for calculation of project emissions.

Leakage

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Paragraph 47 of the methodology AMS I.C states that- “If the energy generating equipment currently
being utilized is transferred from outside the boundary to the project activity, leakage is to be
considered.”
As there is no transfer of energy generating equipment from/to the project activity, hence leakage is not
considered.

Further as per paragraph 47 of the methodology AMS I.C “In case collection/ processing/ transport of
biomass residues is outside the project boundary CO2 emissions from collection / processing /
transportation of biomass residues to the project site.”

With reference to the general guidance on leakage in biomass project activities, we have to consider the
possibility of leakage in the case of the project activity. The guidance has highlighted three distinct
possibilities of leakage in biomass usage:

A. Shift of pre-project activities: Decreases of carbon stocks, for example as a result of


deforestation, outside the land area where the biomass is grown, due to shifts of pre-project
activities.
As the project activity is being implemented at the sugar factory and bagasse is the by product
which is used as a biomass fuel for generating heat and electricity. Hence, this paragraph is not
applicable.

B. Emissions from the production of the renewable biomass: Potentially significant emission
sources from the production of renewable biomass can be:
(a) Emissions from application of fertilizer; and
(b) Project emissions from clearance of lands.
As the project activity is being implemented at the sugar factory and bagasse is the by product
which is used as a biomass fuel for generating heat and electricity Hence, this paragraph is not
applicable.

C. Competing uses for the biomass: The biomass may in the absence of the project activity be
used elsewhere, for the same or a different purpose.
As the project activity is being implemented at the sugar factory and bagasse is the by product
which is used as a biomass fuel for generating heat and electricity, there is no
collection/processing/transportation of biomass residues from outside the project boundary.
Hence, as per paragraph 17 of the General guidance on leakage in biomass project activities,
version 3 –“Competing uses for biomass are not relevant, where the biomass is generated as part
of the project activity (new forests or cultivations).”

Therefore leakage is not occurring.

Emission reductions
Emission reductions are calculated as follows:

ER y = BE y − PE y − LE y Equation 2

Where:
ERy Emission reductions in year y (tCO2e)

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BEy Baseline emissions in year y (tCO2e)


PEy Project emissions in year y (tCO2)
LEy Leakage emissions in year y (tCO2)

As there are no leakage emissions due to the project activity, therefore

ERy = BEy - PEy Equation 3

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

Data / Parameter: EFCO2,grid,y


Data unit: tCO2/MWh
Description: CO2 emission factor of the grid in year y
Source of data used: Central Electricity Authority (CEA): CO2 Baseline Database, Version 5
Value applied: 0.8400
Justification of the Central Electricity Authority is a government body which provides the data for
choice of data or calculation of the grid emission factors
description of
measurement methods
and procedures
actually applied :
Any comment: Specified ex-ante for the crediting period.

Data / Parameter: EFgrid,OM,y


Data unit: tCO2/MWh
Description: Operating margin CO2 emission factor for the year y
Source of data used: Central Electricity Authority
http://cea.nic.in/planning/c%20and%20e/Government%20of%20India%20web
site.htm

Value applied: 1.0049


Justification of the This value has been provided by the Central Electricity Authority (CEA), a
choice of data or government body, for the NEWNE grid in India.
description of
measurement methods
and procedures actually
applied :
Any comment: Specified ex-ante for the crediting period.

Data / Parameter: EFgrid,BM,y


Data unit: tCO2/MWh
Description: Build margin CO2 emission factor for the year y
Source of data used: Central Electricity Authority
http://cea.nic.in/planning/c%20and%20e/Government%20of%20India%20web
site.htm

Value applied: 0.6751

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Justification of the This value has been provided by the Central Electricity Authority (CEA), a
choice of data or government body, for the NEWNE grid in India.
description of
measurement methods
and procedures actually
applied :
Any comment: Specified ex-ante for the crediting period.

B.6.3 Ex-ante calculation of emission reductions:


>>
From Section B.6.1, the emission reductions are calculated as per equation 3:

ERy = BEy - PEy

Baseline emissions

The baseline emissions are calculated as per equation 1:

BE y = EG BL , y ∗ EFCO2 , grid , y

EG BL , y = EGExport , y − EGIm port , y


EGExport,y = 54,164 MWh/yr

EGImport, y = 0 (for simplification purpose)


However, EGImport, y shall be monitored and account during the project operation.

EFCO grid ,y = 0.8400 tCO2/MWh


Hence,
BEy = 45,495tCO2/year

PE FC , j , y = ∑ FCi , j , y × COEF i , y
i

However, for ex-ante project emission from diesel generator considered ‘0’.

Hence, PEy = 0

There is no collection/processing/transportation of biomass as the bagasse is generated within the sugar


factory where the project activity is located. Also there is no transfer of energy generating equipment.
Hence, there are no leakage emissions associated with project activity.

LEy = 0

Therefore,

ERy = BEy - PEy - LEy

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= 45,495 – 0 - 0
= 45,495 tCO2/year

Therefore the emission reductions accruing from the project activity are:

ERy = 45,495tCO2/year.

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


>>
Year Estimation of Estimation of Estimation of Estimation of
project activity baseline emissions leakage (tCO2 e) overall emission
emissions (tCO2 e) reductions (tCO2
(tCO2 e) e)
July2012- June 2013 0 45,495 0 45,495
July2013- June 2014 0 45,495 0 45,495
July2014- June 2015 0 45,495 0 45,495
July2015- June 2016 0 45,495 0 45,495
July2016- June 2017 0 45,495 0 45,495
July2017- June 2018 0 45,495 0 45,495
July2018- June 2019 0 45,495 0 45,495
July2019- June 2020 0 45,495 0 45,495
July2020- June 2021 0 45,495 0 45,495
July2021- June 2022 0 45,495 0 45,495
Total (tonnes of CO2 0 45,4950 0 45,4950
e)

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

B.7.1 Data and parameters monitored:


Data / Parameter: EGBL,y
Data unit: MWh/year
Description: Quantity of net electricity supplied to the grid as a result of the implementation
of the CDM project activity in year y
Source of data to be Plant records
used:
Value of data 54,164
Description of EGBL,y shall be calculated based on the EGExport,y and EGImport,y as below:
measurement methods
and procedures to be EGBL,y = EGExport,y - EGImport,y
applied:
The metering for EGExport,y and EGImport,y shall be carried out using energy meter
located at common metering point/interconnection point.
Recording of reading will be done once a month in the presence of an official
from state electricity board and project owner.
QA/QC procedures to The meter reading can be cross checked with the invoices/sales receipts of

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be applied: electricity. The two energy meters i.e. main meter and check meter with
accuracy of 0.2 will be installed at the grid substation of the Bihar State
Electricity Board (BSEB) The meter will be calibrated once in three years.
Calibration of meter is under the scope of state electricity and project owner does
not have any control on calibration of energy meter installed at sub station.
Any comment: The data will be kept for the later of, two years after the end of the crediting
period or the last issuance of CERs for the project activity.
100% of the data will be monitored.

Data / Parameter: EGthermal,y


Data unit: TJ
Description: Net quantity of steam/heat supplied by the project activity during the year y
Source of data to be Calculated from enthalpy difference of steam and boiler feed water multiplied by
used: the quantity of steam
Value of data 5070.13
Description of This will be calculated as the product of total steam generated by the project and
measurement methods the net energy output (enthalpy difference).
and procedures to be
applied:
QA/QC procedures to The meters for measurement of steam flow, temperature and pressure will be
be applied: calibrated once in three years as per paragraph 12(c), Annex 20, EB 41.

Any comment: The data will be kept for the later of, two years after the end of the crediting
period or the last issuance of CERs for the project activity.
100% of the data will be monitored.

Data / Parameter: TFW


Data unit: Degree C
Description: Temperature of feed-water at the economizer inlet
Source of data to be Continuous onsite measurement would be carried out using Thermocouple. Data
used: will be recorded in plant log book.
Value of data 110
Description of Measurement method: As per industrial standard
measurement methods Measuring Equipment: Thermocouple
and procedures to be
applied:
QA/QC procedures to Calibration of the monitoring equipments will be done at least once in three
be applied: years in line with paragraph 12 (c), Annex 20, EB41.

Any comment: The data will be kept for the later of, two years after the end of the crediting
period or the last issuance of CERs for the project activity.
100% of the data will be monitored.

Data / Parameter: Ts
Data unit: Degree C
Description: Temperature of steam
Source of data to be Continuous onsite measurement would be carried out using Thermocouple. Data

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used: will be recorded in plant log book.


Value of data 525
Description of Measurement method: As per industrial standard
measurement methods Measuring Equipment: Thermocouple
and procedures to be
applied:
QA/QC procedures to Calibration of the monitoring equipments will be done at least once in three
be applied: years in line with paragraph 12 (c), Annex 20, EB41.

Any comment: The data will be kept for the later of, two years after the end of the crediting
period or the last issuance of CERs for the project activity.
100% of the data will be monitored.

Data / Parameter: P
Data unit: Kg/cm2
Description: Pressure of steam
Source of data to be Continuous onsite measurement would be carried out using pressure gauge. Data
used: will be recorded in plant log book on daily basis.
Value of data 72.4
Description of Pressure guage will be installed at the steam outlet of the boiler.
measurement methods Measurement method: As per industrial standard
and procedures to be Measuring Equipment: Pressure guage
applied:
QA/QC procedures to Calibration of the monitoring equipments will be done at least once in three
be applied: years in line with paragraph 12 (c), Annex 20, EB41.

Any comment: The data will be kept for the later of, two years after the end of the crediting
period or the last issuance of CERs for the project activity.
100% of the data will be monitored.

Data / Parameter: Bbiomass,y


Data unit: Mass or volume
Description: Net quantity of biomass consumed in year y
Source of data to be Plant records
used:
Value of data 89,978.31
Description of The quantity of bagasse consumed is measured by 2 nos. bagasse belt weighers
measurement methods of three load cell type and recorded in log books.
and procedures to be
applied: One belt weigher will weigh the bagasse being fed to the boiler and the second
one will weigh excess bagasse from the boiler. The difference between the two
values from belt weighers will provide the biomass consumed by the boiler.
QA/QC procedures to
be applied: The total quantity of bagasse consumed in the boiler shall be cross checked with
annual energy balance. The load cells of both the belt weighers will be
calibrated once in three years at an accuracy level of 1%.

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Any comment: The data will be kept for the later of, two years after the end of the crediting
period or the last issuance of CERs for the project activity.
100% of the data will be monitored.

Data / Parameter: Bmoisture


Data unit: %
Description: Moisture content of the biomass
Source of data to be Plant records
used:
Value of data 50
Description of On-site measurement
measurement methods The moisture content of bagasse will be monitored for every batch and average
and procedures to be value of all three batches for a day recorded in log book signed off by Controller,
applied: Laboratory. The instruments used for measuring moisture content of biomass
shall be calibrated as per manufacturers’ specifications. Daily data aggregated
into monthly data. The moisture content (% of water) will be obtained from the
laboratory records

The weighted average of monthly data will be calculated for each monitoring
period
QA/QC procedures to Alternatively, moisture content can be measured by any accredited laboratory to
be applied: cross check the consistency of moisture content estimated in plant’s laboratory.
Any comment: --

Data / Parameter: NCVk


Data unit: GJ/mass or volume unit
Description: Net calorific value of biomass residue
Source of data to be On-site measurements
used: Alternatively, measurement by a qualified laboratory using a standard test
method.
Value of data 7.53
Description of The fuels will be tested using the bomb calorimeter at the laboratory on site. The
measurement methods instruments used for monitoring NCV of biomass shall be calibrated as per
and procedures to be manufacturers’ specifications.
applied: NCV of bagasse will be measured quarterly, taking at least three samples of each
measurement and the average value shall be used for the rest of the crediting
period
The data will be kept for the later of, two years after the end of the crediting
period or the last issuance of CERs for the project activity

QA/QC procedures to Consistency of the measurement will be compared by the measurement results
be applied: provided by “System of technical control for cane sugar factories in India
published by The Sugar Technologists Association of India, Kanpur.
Any comment: --

Data / Parameter: BBiogas,y

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Data unit: Cu.m./year


Description: Net quantity of biogas consumed
Source of data to be Plant records
used:
Value of data 5103,000
Description of The quantity of biogas consumed is measured by using flow meter.
measurement methods
and procedures to be
applied:
QA/QC procedures to Continuously monitored and hence the uncertainties are low. Flow meters will
be applied: undergo maintenance/calibration according to appropriate industry standards or
at least once in three years to ensure accuracy
Any comment: The data will be kept for the later of, two years after the end of the crediting
period or the last issuance of CERs for the project activity.
100% of the data will be monitored.

Data / Parameter: NCVk


Data unit: GJ/mass or volume unit
Description: Net calorific value of biogas
Source of data to be Alternatively, measurement by a qualified laboratory using a standard test
used: method.
Value of data 0.018
Description of The net calorific value of biogas is fairly constant. The calorific value of biogas
measurement methods will be estimated by any third party accredited agency.
and procedures to be NCV of biogas will be measured quarterly, taking at least three samples of each
applied: measurement and the average value shall be used for the rest of the crediting
period

QA/QC procedures to Check the consistency of the measurement by comparing the measurement
be applied: results with measurements from previous years.
Any comment: --

Data / Parameter: Diesel consumption (FCi,j,y)


Data unit: Litre
Description: Quantity of diesel consumed on site every year.
Source of data to be Plant records
used:
Value of data 0
Description of Diesel is filled in fuel tank through pump and there will be one flow meter to
measurement methods record the total volume of fuel filled in fuel tank of the D.G Set. Log book shall
and procedures to be also maintain for the same purpose.
applied: The fuel issued by stores to DG set is also measured by flow meter.
QA/QC procedures to The flow meter at stores calibrated annually and total quantity of fuel issued can
be applied: be cross checked with flow meter record at DG set.
Any comment: All monitored data will be kept for a minimum of 2 years following issuance of
certified emission reductions or the end of the crediting period, whichever is
later.

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Parameter: EGExport,y
Unit: MWh/year
Description: Electricity exported to the grid in year y
Source of data: Plant records
Value of data: 54,164
Brief description of One energy meter installed at generator terminals which can record both export
measurement methods and import of electricity and will be monitored and recorded continuously
and procedures to be through Programmable logic controller (PLC) and aggregated monthly.
applied:
A logbook will also be maintained on site to record hourly readings from the
energy meter. The readings will be taken by the shift supervisor. This hourly
data will be signed off at the end of every shift by the engineer in charge of the
shift and again at the end of each day by the power plant manager.
QA/QC procedures to The meter will be calibrated once in three years by an independent accredited
be applied (if any): third party. The accuracy class of the meter would be 0.2 in line with the
national standards.
Any comment: All data will be kept for a minimum of 2 years following issuance of certified
emission reductions or the end of the crediting period, whichever is later.

Parameter: EGImport,y
Unit: MWh/year
Description: Net electricity imported from the grid in year y
Source of data: Plant records
Value of data: 0
Brief description of One energy meter installed at generator terminals to record total generation of
measurement methods electricity and import of electricity will be monitored and recorded continuously
and procedures to be through PLC (Programmable logic controller) and aggregated monthly/
applied:
A logbook will also be maintained on site to record hourly readings from the
energy meter. The readings will be taken by the shift supervisor. This hourly
data will be signed off at the end of every shift by the engineer in charge of the
shift and again at the end of each day by the power plant manager.
QA/QC procedures to The meter will be calibrated once in three years by an independent accredited
be applied: third party. The accuracy meter would be 0.2 in line with the national standards.
Any comment (if any): All data will be kept for a minimum of 2 years following issuance of certified
emission reductions or the end of the crediting period, whichever is later.

Data / Parameter: EFdiesel


Data unit: tCO2 e/ TJ
Description: CO2 emission factor for Diesel Oil
Source of data used: The following data sources may be used if the relevant conditions apply:

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Value applied: 74.1


Justification of the IPCC 2006 default value of CO2 Emission Factor (for diesel oil) is used for
choice of data or calculating project activity emissions. The default value of CO2 Emission Factor
description of has been calculated by taking into account carbon content (default value), carbon
measurement methods oxidation factor (default value) and mass conversion factor of 3.666.
and procedures
actually applied :
Any comment: --

Data / Parameter: NCVDiesel


Data unit: TJ/t
Description: Net calorific value of Diesel Oil

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Source of data used:

Value applied: 43 TJ/Gg or 0.043 TJ/t


Justification of the Default Net calorific value (for diesel oil) provided in the 2006 IPCC Guidelines
choice of data or for National Greenhouse Gas Inventories has been used for calculating project
description of activity emissions.
measurement methods
and procedures
actually applied :
Any comment:

B.7.2 Description of the monitoring plan:


>>
The General Manager of the power plant will be responsible for the overall project management of the
CDM project activity.

Monitoring plan consists of the monitoring of net electricity exported to the grid from the project
activity. The two energy meters i.e. main meter and check meter with accuracy of 0.2 will be installed at
the grid substation of the Bihar State Electricity Board (BSEB). A representative of the project owner
and the BSEB will take the main meter reading once in a month as agreed in the signed Power Purchase
Agreement (PPA). The data will be collated on monthly basis and it will be the basis for emission
reduction calculation.

An internal audit will be carried out annually wherein the monitoring of parameters will be checked
against the project design document procedures.

The organization will organise a regular training program for the team technicians to ensure that the
monitoring process is appropriate and effective. The additional training will be provided for the
technicians to monitor the complete process of fuel procurement, quality issues, and the handling and
storage of material in the project activity area.

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For measuring the energy exported to the grid, one main meter and one check meter are maintained at
sub-station. Joint meter reading of the main meter at the sub-station is the basis of billing and emission
reduction calculations, so long as the meter is found to be within prescribed limits of error during the
periodic check.

Joint meter reading of main and check meters are taken and signed by authorised officials of Harinagar
Sugar Mills and state utility once every month at sub-station. If during periodic test check, main meter
is found to be within permissible limits then billing as well as emission reduction calculations are as per
check meter . However, the check meter would be calibrated and /or replaced if required.

If both main meter and check meter are malfunctioning than the emission reduction will not be claimed
for that particular period.

The monitored data will be reported through project owner to Agrinergy on a monthly basis for the
calculation and estimation of emission reductions.

All data will be kept for a minimum of 2 years following issuance of certified emission reductions or the
end of crediting period, whichever is later and the storage of this data will be the responsibility of the
project owner. The archiving of data shall be done electronically as per General Guidelines to SSC CDM
methodologies.

B.8 Date of completion of the application of the baseline and monitoring methodology and the
name of the responsible person(s)/entity(ies)
>>
18/07/2010

Bhawna Singh/ Rashmi Ranjan


Agrinergy Consultancy Pvt Ltd
bhawna.singh@agrinergy.com / rashmi.ranjan@agrinergy.com
The entity is not a project participant.

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SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity:


>>
14/02/2010
Boiler purchase order

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


>>
20years-00months

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

The project activity has chosen a ten year fixed crediting period.

C.2.1. Renewable crediting period

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


>>
Not opted for
C.2.1.2. Length of the first crediting period:
>>
NA
C.2.2. Fixed crediting period:

C.2.2.1. Starting date:


>>
01/07/2012 or date of registration (whichever is later).

C.2.2.2. Length:
>>
10years-00months

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SECTION D. Environmental impacts


>>

D.1. If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:
>>
In relation to the baseline scenario no negative environmental impacts will arise as a result of the project
activity.The project obtained “Consent to Establish” from the Bihar State Pollution Control Board, Patna.

The positive environmental impacts arising from the project activity are:
• Reduction in CO2 emissions, which would be generated under the baseline scenario, by the
replacement of fossil fuels
• Reduction in the emissions of other harmful gases (NOx and SOx) that would have been emitted
from the combustion of fossil fuels for power generation in power plants connected to the grid.
• Reduced ash production because bagasse have lower ash content than that of Indian coal (30-
40%)

The project activity will install an electrostatic precipitator in between the air pre-heater and induced
draft fan of the boiler for the control of particulate matter in boiler flue gas to the level of less than
115mg/Nm3. To meet the required noise pollution standard (less than 85db) the rotating equipments like
boiler, turbo-alternator and electrical equipments shall be provided with silencers.

Monitoring of air and water quality will be undertaken on a regular basis as per Bihar Pollution Control
Board guidelines after the plant is commissioned. The testing of the environmental parameters will be
undertaken by an independent third party.

The project activity has no significant impact on the environment. According to the latest notification
dated 1/12/2009, “power plant up to 15MW, based on biomass and using auxiliary fuel such as coal/
lignite/ petroleum products up to 15% are exempt http://moef.nic.in/downloads/rules-and-
regulations/3067.pdf). Hence, there is no need of applicability of the Environmental Impact Assessment
(EIA) of the proposed project activity

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 environmental impacts are not considered significant.

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SECTION E. Stakeholders’ comments


>>

E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
The local population is considered the major stakeholder with respect to the project activity. Comments
and consents from the local stakeholders regarding the project activity have been sought through:
• A newspaper notice was given on 07th August 2010 in the local newspaper “Aaj” in local
language informing the people of the company’s intention to set up the project activity and apply
for CDM status.
• Conducting local stakeholder meeting at the project site. The local people were informed
through the newspaper notice of the stakeholder meeting. The meeting took place on 22nd
August, 2010 in the staff club hall of Harinagar Sugar Mills Ltd factory. A question and answer
session was held and the stakeholders queries replied to accordingly. The minutes of meeting
and photographs has been provided to the DOE during validation.

E.2. Summary of the comments received:


>>
The stakeholder meeting was conducted at project site and was attended by the nearby villagers, farmers,
officers and the representatives of the project participants.

Following are the names of the stakeholders which were present at the time of meeting:
• Mr. J. L. Singh, Block Development Officer
• Mr. Kamlesh kumar yadav, Labour Enforcement Officer
• Mr. Srikant Pathak, Principal of Harinagar High School
• Mr. S. N. Poddar, General Manager of Harinagar Sugar Mill

The meeting started with a welcome speech by Mr. S. N. Poddar, general manager of Harinagar Sugar
Mill. He then clarified the concept of CDM to all the stakeholders and explained how level of green
house gases like CO2 is increasing in the atmosphere day by day and threatening the very survival of
earth. He emphasizes that non-polluting initiatives can reduce the green house gases to an acceptable
level and calls for installation of more renewable energy projects. He further explained how installation
of biomass power projects can help for mitigation of climate change and global warming.

All the stakeholders were happy in knowing that a CDM project activity in their locality will be
contributing to a global cause and they commended the Harinagar Sugar Mill for their initiatives in the
areas of climate change and sustainable development. In particular, the stakeholders appreciated the
project promoter for the environment friendly power generation using bagasse as a fuel.

Details of discussions and interaction took place during the CDM project stakeholder consultation
meeting between PP and the stakeholders is described as under:

1. Will the project help in improving the electricity to the villages?


It is expected as the power generated is fed into local grid but this is completely on the discretion of
Govt.

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2. Should such projects be promoted?

Yes, stakeholders would be happy if more such project is brought here.

Further to above the villagers expressed their pleasure with the setting up of the power project as it had
provided the rural population with permanent employment opportunities. The local population hired for
the project activity are pleased with the employment opportunity available to them

E.3. Report on how due account was taken of any comments received:
>>
The stakeholders have given positive feedback and thus no measures were required to be taken.

As, there was no any negative comments by stakeholders, hence no action is required.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Harinagar Sugar Mills Ltd.


Street/P.O.Box: Xth floor
Building: World Trade Centre
City: Mumbai
State/Region: Maharashtra
Postfix/ZIP: 400005
Country: India
Telephone:
FAX: +91-22-22183385
E-Mail:
URL:
Represented by:
Title: Director
Salutation: Mr.
Last Name: Pittie
Middle Name:
First Name: Vedang
Department:
Mobile: +91-9820180202
Direct FAX: +91-22-22183385
Direct tel:
Personal E-Mail: vedang.hsml@gmail.com

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Organization: Agrinergy Pte Ltd


Street/P.O.Box: 10 Hoe Chiang Road
Building: #08-04 Keppel Towers
City: Singapore
State/Region:
Postfix/ZIP: 089315
Country:
Telephone: +65-6592 0400
FAX: +65-6592 0401
E-Mail:
URL: www.agrinergy.com
Represented by:
Title: Director
Salutation: Mr
Last Name: Atkinson
Middle Name:
First Name: Ben
Department:
Mobile:
Direct FAX: +65-6592 0401
Direct tel: +65-6592 0400
Personal E-Mail: moc@agrinergy.com

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

The project has not received any public funding.

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Annex 3

BASELINE INFORMATION

We have adopted the approach specified in the “Tool to calculate the emission factor for an electricity
system” to calculate the CO2 emission coefficient of the regional electricity grid.

Baseline information:

Emission Factors:

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


2006-07 2007-08 2008-09
NEWNE 1.01 1.00 1.01
South 1.00 0.99 0.97
India 1.01 1.00 1.01

Build Margin (tCO2/MWh) (not adjusted for imports)


2006-07 2007-08 2008-09
NEWNE 0.63 0.60 0.68
South 0.70 0.71 0.82
India 0.65 0.63 0.71

Generation Data:

Gross Generation Total (GWh)


2006-07 2007-08 2008-09
NEWNE 4,99,380 5,31,539 5,48,029
South 1,61,897 1,67,379 1,67,587
India 6,61,277 6,98,918 7,15,616

Net Generation Total (GWh)


2006-07 2007-08 2008-09
NEWNE 4,65,361 4,96,119 5,09,776
South 1,52,206 1,57,315 1,57,336
India 6,17,567 6,53,434 6,67,112

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


` 2004-0510 2005-06 2006-07 2007-08 2008-09
NEWNE 16.84% 18.0% 18.5% 19.0% 17.3%
South 21.60% 27.0% 28.3% 27.1% 22.8%
India 20.9% 21.0% 18.6%

10
The historical data share of low cost must run sources has been taken from version 03 of the CO2 baseline
database

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Net Generation in Operating Margin (GWh)


2006-07 2007-08 2008-09
NEWNE 3,79,471 4,01,642 4,21,803
South 1,09,116 1,14,702 1,21,471
India 4,88,587 5,16,343 5,43,274

20% of Net Generation (GWh)


2006-07 2007-08 2008-09
NEWNE 93,072 99,224 1,01,955
South 30,441 31,463 31,467
India 1,23,513 1,30,687 1,33,422

Net Generation in Build Margin (GWh)


2006-07 2007-08 2008-09
NEWNE 93,524 1,00,707 1,02,589
South 30,442 31,613 31,606
India 1,23,965 1,32,320 1,34,195

Source: CO2 baseline database, version 05, Central Electricity Authority, India11

11
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm

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Annex 4

MONITORING INFORMATION

Please refer to Section B.7.


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