under review - adani power

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. General description of 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 project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan

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Page 1: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 1

CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD)

Version 03 - in effect as of: 28 July 2006

CONTENTS A. General description of 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 project activity Annex 2: Information regarding public funding Annex 3: Baseline information

Annex 4: Monitoring plan

Page 2: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 2 SECTION A. General description of project activity A.1 Title of the project activity: Energy efficient power generation in Tirora, India

Version 05, October 22, 2009

A.2. Description of the project activity:

Adani Group, a diversified conglomerate has interests in various activities including interests in

commodity trading, edible oil refining and infrastructure projects and services. Adani Enterprises Ltd

(AEL), the flagship company of the group, is an international trading house dealing in nearly 70

commodities in more than 60 countries around the world. Adani Power Maharashtra Limited (APML)

is a subsidiary company of Adani Power Limited. The power division of AEL is a well known name in

power trading in India.

APML will implement the high efficiency power generation project using coal-fired super-critical

technology at Tirora, District Gondia - Maharashtra which would result in reduced consumption of

fossil fuel and associated greenhouse gas (GHG) emissions for thermal power generation.

Purpose of the project activity

Super-critical coal fired power generation plant is being proposed as project activity which will have

an installed capacity of 1320 MW (2 x 660 MW). The efficiency of the super-critical coal fired power

plant is around 41.75%1 which is quite higher than the sub-critical coal fired power plants that are

presently operating in India having average efficiency ~31.80%2 (also refer Table A1 in Annex 3). A

subcritical power plant of 500 x2 MW capacity and constructed in recent years would have a higher

efficiency of about 35.1% (corresponding to a station heat rate of 2450 kCal/kWh)3. The electricity

generated will be exported to the local/regional/national grid. The project activity will be implemented

at Tirora, the installed capacity will be 1320 MW (2 x 660 MW).

Many regions of the world are experiencing fast growing electricity demand. Thermal power plants

are a major source of carbon dioxide, which is one of the GHGs listed under the Kyoto Protocol. Coal

1 Calculated from Station Heat Rate of 2060 kCal/kWh for the proposed project activity 2 Sources: http://www.cea.nic.in/god/opm/Thermal_Performance_Review/0607/SECTION-13.pdf http://www.cea.nic.in/god/opm/Thermal_Performance_Review/0708/highlights.pdf 3 http://www.cercind.gov.in/03022007/Pet_106-2006%20RihandSTPS-II.pdf

Page 3: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 3 is an abundant fuel resource in many of the world’s developing regions and forecasts show that it is

likely to remain a dominant fuel for electricity generation in many countries for years to come.

Capital scarcity and competition which are maintaining downward pressure on prices of new power

plants. It is against this backdrop that power plant suppliers have invested heavily in generation

technologies that produce power more efficiently. Enhanced plant efficiency reduces emissions of CO2

and all other pollutants by using less fuel per unit of electricity generated. Improvement in efficiency

can be achieved by using supercritical steam conditions. One percent increase in efficiency reduces by

two percent, specific emissions such as CO2, NOx, SOx and particulates4.

The steam generation in the project activity will be occurring at super-critical conditions (at boiler

outlet, steam temperature of 5710C and pressure of 25.40 MPa (g)) and this steam is further utilised in

power generation through condensing type steam turbine. The super-critical cycle has a higher

efficiency of steam generation as compared to that of conventional sub-critical technology. Higher

steam generation efficiency and hence higher overall cycle efficiency will lead to lower specific coal

(i.e. fossil fuel) consumption.

Salient features of the proposed project activity

Installed capacity of the proposed project activity will be 1320MW (2 x 660 MW units).

The boiler which is being used for generating steam (hereafter referred to as ‘main steam’) at super-

critical conditions of 25.40 MPa (g) pressure and 5710C temperature is a once-through coal fired type

boiler. The reheat steam5 will be at a temperature of 5690C and pressure of 4.52 MPa. At super-

critical condition, the fluid conditions eliminate the requirement of re-circulating boiler. Keeping the

steam parameters at super-critical conditions will increase the efficiency of overall power generation

cycle of the super-critical power plant over that of a sub-critical power plant. In India, the generation

efficiency of a typical sub-critical power plant is around 31.80% (also refer to Table A1 of Annex-3)

whereas the super-critical technology offers generation efficiency of around 41.75%. Now, higher

overall generation efficiency of the plant would lead in lower fossil fuel consumption and which in turn

to less GHG emissions.

4 http://power4georgians.com/supercritical.aspx 5 The Steam after passing through the HP turbine is reheated in the reheater before passing through the IP/LP turbine. This is referred to as the reheat steam. Refer to Figure 2 (part marked 3).

Page 4: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 4 Thus the implementation of the proposed project activity will reduce fossil fuel combustion for the

generation of same amount of electricity and thus will lead to lessening of global warming.

Project’s contribution to sustainable development

The proposed project’s contribution to the sustainable development of India is elaborated under the

following four pillars of sustainable development:

Social sustainability

Due to its location, the project activity will contribute towards poverty alleviation by generating both

direct and indirect employment for the local community. During the construction activity of the

project, local people will be employed. Due to better technology usage, the project activity would help

adding to the knowledge and skill base of the power plant operators. It will also contribute to

improvement of the power deficit situation, which will improve quality of life and facilitate accelerated

implementation of rural electrification initiatives in India.

Environmental sustainability

The higher efficiency of power generation would reduce fossil fuel consumption. Less coal

consumption will improve the local environmental condition by reducing emissions of carbon dioxide

and other air pollutants like SPM, SO2 etc.

Economic sustainability

The project activity will contribute towards sustainable development of the region, not only through

reduced emissions contributions, but also through various initiatives to be undertaken by the project

Sustainable Development

Social Well Being

Environmental Well Being

Economic Well Being

Technological Well Being

Page 5: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 5 proponent. These include the local employment during project implementation and operational phases

and extending the medical care facility to the employees. It will also lead to the local employment for

the resources with low and medium skilled services often required in the project activity. The proposed

project activity will lead to huge investment being made in the State of Maharashtra. The proposed

project activity will reduce the supply deficit of electricity in India and contribute to the infrastructural

and economic growth of India. The technical consultants, equipment suppliers all would be benefited

economically because of the proposed project activity.

Technological sustainability

The technology employed being the first-of-its-kind in the thermal power generation sector of

Maharashtra and the project activity will initiate capacity building, development of new skills and the

knowledge base which could be used as a reference for the next coming entrants. The usage and

development of such technologies in developing countries like India will help in greater extent in

fulfilling its energy generation need in a very environment friendly way.

A.3. Project participants: Name of Party involved Private and/or public entity

(ies) project participants Kindly indicate if the Party involved wishes to be considered as project participant (Yes/ No)

Government of India (Host Country)

Adani Power Maharashtra Ltd – Private Entity

No

A.4. Technical description of the project activity A.4.1. Location of the project activity: A.4.1.1. Host Party (ies):

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

Maharashtra

A.4.1.3. City/Town/Community etc:

Tirora, Gondia District

Page 6: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 6 A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page):

The site is located about 2.5 km east of Tirora town in Gondia District, Maharashtra. The site is about

122 km from Nagpur airport, and 45 km from Gondia railway station. The latitude and longitude of

plant site are 21O 24’ 42.9” North and 79O 58’ 14.9” East respectively. The site is encompassed by

villages Chikhali, Churdi, Bhiwapur, Tamsar and Mendipur Bhandara Road – Gondia Section of

South Eastern Railway is passing within 500 m of the site. The state highway connecting Khairanji

and Bhandara Road grazes past the plant site and connects Tirora Town.

Page 7: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 7 A.4.2. Category (ies) of project activity:

The project activity is a large scale potential CDM project, which fits into the Category 1: Energy

industries (renewable / non renewable sources) as per ‘List of Sectoral Scopes’6.

A.4.3. Technology to be employed by the project activity:

"Supercritical" is a thermodynamic expression describing the state of a substance where there is no

clear distinction between the liquid and the gaseous phase (i.e. they are a homogenous fluid). Water

reaches this state at a pressure above 22.1 MPa. The molecular structure of water as function of

Pressure and Temperature is shown in figure 1 below:

Figure 1: Molecular structure of water as a function of Pressure and Temperature

Thermodynamic Cycle:

The thermodynamic cycle for 660 MW unit will consider super-critical steam parameters. The unit

comprises the boiler, the steam turbine generator, the condenser, the condensate extraction and boiler

feed systems along with all other necessary equipment for single/double reheat-regenerative cycle. The

Page 8: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 8 steam parameters at the outlet of the boiler have been considered to be 259.01 kg/cm2 (a), 571°C with

steaming capacity of about 2111 TPH. Corresponding steam parameters at the turbine inlet would be

246.77 kg/cm2 (a) at 566°C and reheated steam parameters would be about 46.091 kg/cm2 (a) and

569°C. The HP/IP cylinders may be single/double casing design as per manufacturers’ standard. The

exhaust from HP-IP turbine will further expand in the double flow LP Turbines.

The exhaust steam from the LP turbine will be cooled in the main steam condenser by circulation of

required quantity of cooling water and its vacuum will be maintained by two of the four 50% capacity

vacuum pumps maintaining a backpressure of 76 mm Hg (abs). The condenser would be twin flow,

double pass, horizontal, shell and tube type, cooled by circulation of cooling water (inlet water

temperature 33°C max) in a re-circulating cooling water circuit using wet cooling tower.

The regenerative feed heating system will consist of three/four stages of low pressure heaters, one

gland steam condenser, one separate condenser, one separate drain cooler, one spray-cum-tray type

deaerator, two parallel chains of three high pressure heaters having 50% capacity. The condensate

drawn from condenser hot well by 3 x 50% capacity steam turbine driven condensate extraction

pumps will be pumped to the de aerator through condensate polishing unit, gland steam condenser,

drain cooler and the LP heaters. The feed water would be drawn by the boiler feed pumps and pumped

to the respective boilers to the three higher pressure heaters. Three nos. boiler feed pumps [two nos.

turbine driven of 50% capacity each and one no. motor driven of 30% capacity] have been envisaged

for each unit.

Steam Generator Set:

The steam generator for super-critical unit consists of a number of parallel circuits connected by inlet

and outlet headers. Pressurized water enters the circuit at one end and leaves as super critical steam at

other end. Thus boiler is of “Once-through type”. Once-through boilers may be designed in both two-

pass & tower type design. Since flow is once-through furnace wall tube temperature tends to increase

at low load. The volume of the evaporator system is much smaller compared to a natural circulation

boiler. Due to smaller inventory of stored water & steam, theoretical rate of response is much faster

than drum unit. Furnace has low thermal inertia resulting in a shorter start up time, faster rate of load

change & shorter time of forced cooling operation during emergency shut down. Due to elevated

6 Reference: http://cdm.unfccc.int/DOE/scopes.html

Page 9: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 9 pressure and temperature, cycle efficiency improves which results in reduction of fuel consumption per

unit electricity generated which in terms reduces CO2, NOx & SOx emissions. To limit the dust load

at the inlet to the chimney to a value of 75 mg/Nm3, adequately sized electrostatic precipitators would

be provided.

Turbine Generator Set:

The steam turbines would be standard multi-stage, 3000 rpm, tandem compound, single/double reheat,

regenerative, condensing, multi-cylinder unit with eight/nine uncontrolled extractions for regenerative

feed water heating. The proposed turbine will have one single flow HP cylinder, one double flow IP

turbine and two double flow LP casings. The LP turbine will exhaust against a condenser pressure of

76 mm Hg (abs) and maximum cooling water temperature of 33°C. The unit would have horizontally

split double flow LP cylinder with the LP turbine exhausting steam directly into spring mounted

surface type, two-pass condenser having divided water box. The turbo-generator sets would be

designed for a maximum throttle steam flow at turbine valve wide open (VWO) condition of 105% of

turbine MCR flow. The steam turbines will be directly coupled to the horizontally mounted, three

phase, two-pole, cylindrical rotor type electric generators and will have a nominal rating of 660 MW

at generator terminal after meeting power requirement for excitation system.

The mode of operation of the super-critical boiler differs from that of the sub-critical boiler. The

super-critical boiler is a once through type of boiler. In sub-critical boiler, water and steam remains in

saturated condition in the boiler drum and water is re-circulated for generation of steam which is not

the case in super-critical boiler. The once through boiler does not require any circulating pump or

drum except for boiler feed water (BFW) pump. Energy required for circulation is provided by the

feed pump.

Details of the Rankine cycle are being illustrated in Figure 2 given below. As shown in the Figure,

cycle starts with point 1 which indicates the super-critical steam conditions. After expansion through

the High Pressure (HP) Turbine, at point 2, steam enters the re-heater and then into the Low Pressure

(LP) Turbine. From points 4 to 5, the steam condenses to form saturated liquid. It is then mixed with

make up water, if required, and pumped to a deaerator. The Boiler Feed Pump pumps the water from

the deaerator to the boiler.

Page 10: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 10

Figure 2: T-S diagram for super-critical Rankine Cycle

Figure 2: Super-critical Rankine Cycle

Two super-critical coal fired power generation units will be set up in proposed project activity, each of

which has 660 MW (Nominal) capacity, providing a total installed capacity of 1320 MW (Nominal).

The steam generator (SG) would be once through type of boiler and would be designed for firing on

100% domestic coal. The characteristics of the SG would be radiant, single reheat, balanced draft and

outdoor type. The parameters for the SG are as below.

Table 1: Parameters for Steam Generators

Parameter Value Super heater outlet pressure 25.40 MPa(g) at TMCR7 Super heater outlet temperature 571OC Super heater outlet flow 2111 ton/h Re-heater outlet pressure 4.52 MPa (g)

7 Turbine Maximum Continuous Rating

1-2 HP Expansion Turbine 2-3 Reheat 3-4 IP/LP Turbine Expansion 4-5 Condenser 5-6 Low pressure Feed Water Heating 6-7 Feed water Pumping 7-8 High pressure Feed Water Heating 8-1 Evaporator / Superheater

Page 11: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 11

Re-heater outlet temperature 569 0C Re-heater outlet flow 1766.58 ton/h Feed water inlet temperature to economizer 277 0C

The water wall would be spiral wound plain tubes.

The steam parameters at the condensing steam turbine generator (STG) inlet will be as below.

Table 2: Parameters for Steam Turbo-Generator

Parameter Value Pressure 24.2 MPa (a) Main Steam temperature 566 0C Reheat Steam temperature 566 0C

A.4.4 Estimated amount of emission reductions over the chosen crediting period:

Operating Years CO2 Emission Reductions (tonnes of CO2)

Aug 2011-Jul 2012 964567 Aug 2012-Jul 2013 1218401 Aug 2013-Jul 2014 1218401 Aug 2014-Jul 2015 1218401 Aug 2015-Jul 2016 1218401 Aug 2016-Jul 2017 1218401 Aug 2017-Jul 2018 1218401 Aug 2018-Jul 2019 1218401 Aug 2019-Jul 2020 1218401 Aug 2020-Jul 2021 1218401

Total estimated reductions (tonnes of CO2 e) 11930172 Total number of crediting years 10 Annual average over the crediting period of estimated reductions (tonnes of CO2 e)

1193017

A.4.5. Public funding of the project activity: There is no availability of public funding for the proposed project activity.

Page 12: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 12 SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity:

Title: Consolidated baseline and monitoring methodology for new grid connected fossil fuel fired

power plants using a less GHG intensive technology

Reference: ACM0013, Version 02.1, www.unfccc.int

B.2 Justification of the choice of the methodology and why it is applicable to the project activity:

The methodology ACM0013, Version 02.1 is applicable to “new electricity generation plants” and

thus can be considered for the proposed project activity under consideration since the proposed project

activity of APML involves development of Greenfield coal based power generation capacity using

super-critical technology and supplying power to the Western Regional Grid of India.

Further, the project activity meets the applicability criteria of ACM0013, Version 02.1 as under.

“The project activity is the construction and operation of a new fossil fuel fired grid-connected

electricity generation plant that uses a more efficient power generation technology than what would

otherwise be used with the given fossil fuel”- The proposed project activity of APML involves

construction of the new super-critical coal fired power plant at Village Tirora, District Gondia. As

already depicted in section A.2., the project activity uses super-critical technology which is more

efficient than the conventional coal fired sub-critical power generation technology, an established and

conventional practice in the Indian scenario.

“The project activity is not a co-generation power plant”- The proposed project activity generates

only power and is not a cogeneration power plant. A fully condensing turbine will be used in the

proposed project activity. The turbine will operate at a pressure of about 24.2 MPa (a), main steam

temperature and reheat steam temperature both are of about 566 0C.

Page 13: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 13 “Data on fuel consumption and electricity generation of recently constructed power plants is

available.”- The relevant data/ information on electricity generation and fuel consumption are

available with Central Electricity Authority (CEA), Govt. of India and the same have been used by

CEA for calculation of baseline emission factor which has been published by CEA8. The same factor

is used by the project proponent to arrive at the baseline emissions for the project activity9.

“The identified baseline fuel is used in more than 50% of total generation by utilities in the

geographical area, as defined later in the methodology, within a country or country10. To

demonstrate this applicability condition data for latest three year shall be used. Maximum value of

same fossil fuel generation estimated for three years should be greater than 50%”-The identified

baseline fuel is coal which is used in more than 50% of total generation by utilities within India which

is clearly shown in the below given data. Data for latest three years have been given below.

Table 3: All India Electricity Generation Data in GWh

Generation (GWh) Type of Generation 2007-081 2006-071 2005-062

Coal 476726.57 461339.98 435096.64 Gas + Diesel 72227.9 66207.38 62117.66 Total Thermal 558990.05 527547.36 497214.30 Hydro 123424.12 113358.77 101293.1 Nuclear 16776.91 18606.75 17238.89 Total 699191.08 662522.96 617510.44 % Coal in total Generation

68.18 69.63 70.45

% of gas + diesel in Total Generation

10.33 9.99 10.05

1http://www.cea.nic.in/god/opm/Monthly_Generation_Report/18col_A_08_03/FILE-04.pdf 2http://www.cea.nic.in/cea-archive/body/Reports/Monthly%20Generation%20Report/2006/18col_06_03.pdf

8 As per CEA website (http://www.cea.nic.in/planning/cdm.pdf), “The CO2 Baseline Emission factor for coal based power units as applicable to new coal fired power generating units with supercritical steam parameters has been worked out as 0.941 tCO2/MWh ( based on net generation ) for the year 2007-08. The calculations are based on CDM Executive Board approved methodology ACM0013 Ver 01 “ New Grid connected fossil fuel fired power plants using a less GHG intensive technology”. Since the calculation procedure for emission factor is the same for ACM0013 version 01 and ACM0013 version 02, hence the value of 0.941 tCO2/MWh has been used for the project activity as well. 9 http://www.cea.nic.in/ 10 For the purpose of demonstrating compliance with the applicability condition the geographical area has to be limited by the physical borders of the host country and cannot be extended to neighboring non-Annex I countries, even if such an extended geographical area is used for the calculation of a benchmark emission factor.

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 14

Table 4: All India Installed Generating Capacity in MW

All India Generating Installed Capacity (MW) Thermal Total Year Hydro

Coal Gas Diesel Total Nuclear R.E.S@

% Coal in total Generating Installed Capacity

As on 31-03-20061

32325.77 68518.88 12689.91 1201.75 82410.54 3360.00 6190.86 124287.17 55.13

As on 31-03-20072

34653.77 71121.38 13691.71 1201.75 86014.84 3900.00 7760.60 132329.21 53.75

As on 31-03-20083 35908.76 76048.88 14656.21 1201.75 91906.84 4120.00 11125.41 143061.01 53.16 1 Source : http://www.cea.nic.in/power_sec_reports/executive_summary/2006_03/6.pdf 2 Source : http://www.cea.nic.in/power_sec_reports/executive_summary/2007_03/6.pdf 3 Source : http://www.cea.nic.in/power_sec_reports/executive_summary/2008_03/8.pdf

Using tables 3 and 4, it can be concluded that the identified baseline fuel, coal is used as a fuel in more

than 50% of the generation utilities in India.

B.3. Description of the sources and gases included in the project boundary

The circumference of the project boundary includes the power plant at the project site and all power

plants considered for the calculation of the baseline CO2 emission factor (EFBL,CO2,y). In calculating the

project emissions and Baseline emissions, only CO2 emissions from fossil fuel combustion in power

plant(s) are taken.

Table 5: Overview on emissions sources included in or excluded from the project boundary

Source Gas Included? Justification / Explanation CO2 Yes Main emission source. CH4 No Excluded for simplification.

This is conservative.

Bas

elin

e

Power generation in baseline

N2O No Excluded for simplification. This is conservative.

CO2 Yes Main emission source. CH4 No Excluded for simplification.

Proj

ect

Act

ivity

On-site fuel combustion in the project plant N2O No Excluded for simplification.

Page 15: Under Review - Adani Power

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 15 The project boundary includes the top 15% coal fired power plants constructed in the last 5 years,

operating in India with a capacity of 500 MW at base load. Besides these power plants, the proposed

project activity at Tirora is also included in the project boundary.

B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario:

Step 1: Identify plausible baseline scenarios

As postulated in the methodology, project activity should be seek out in various possible and credible

alternative baseline scenarios given that all outputs and services are in accordance with the proposed

CDM project activity (including the proposed project activity without CDM benefits), i.e., need to

seek out all type of power plants that could be constructed as alternative to the project activity within

the project boundary, as defined in the section “Project boundary” and in Step 2 of the section

“Baseline emissions” below. As mentioned earlier for discussion on baseline each of the 2x 660 MW

super-critical coal fired unit located in a single location have been considered as single power plant.

The following Alternatives have been identified and analyzed as below.

Alternative 1. The project activity not implemented as a CDM project

Implementation of the proposed project activity but not as a CDM project activity. This alternative is

in compliance with all local and national laws and regulations and hence is considered further for

arriving at the baseline scenario.

Alternative 2. Power generation using coal-fired sub-critical power generation technologies

Sub-critical coal-fired technologies can be carried out for the same output for the proposed project

activity using but this activity will lead to higher GHGs emissions. This alternative is in compliance

with all laws and regulations of the country and hence is considered further for arriving at the baseline

scenario.11

11 For supercritical power plant, unit sizes are available in 660 MW and 800 MW. The project activity uses the 660 MW configuration. For subcritical power plants, unit sizes are available in 250 MW and 500 MW (these two units “form the backbone of the Indian Power Sector” as per page 5 of the report made available by CEA, “REPORT OF THE COMMITTEE TO RECOMMEND NEXT HIGHER SIZE OF COAL FIRED THERMAL POWER STATIONS” at http://www.cea.nic.in/thermal/Special_reports/Report%20of%20the%20committee%20to%20recommend%20next%20hi

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 16

Alternative 3. Power generation using energy sources (natural gas) other than coal

Natural gas can be used for power generation and this alternative is in compliance with all laws and

regulations of the country. In this case, the power plants will emit GHGs associated with combustion

of natural gas. However, given the deficit situation of natural gas supply and the projection of long-

term natural gas price, it is unlikely that any new thermal power generation capacity of 1320 MW will

come with natural gas as fuel. Hence this alternative is not considered further for arriving at the

baseline scenario.

As per CEA data of 2006-07, in the Indian Grid, coal based generation capacity is about 69.63% of

the total generation capacity while gas and diesel together account for only 9.99%. Nuclear and

renewable energy sources contribute a small amount to the energy requirement of India. Considering

these facts, it can be concluded that electricity generation comparable to the proposed project activity

in India can only be achieved by coal fired generation technology.

Alternative 4: Power generation using energy sources (diesel/ fuel oil/naphtha) other than coal

Diesel/ fuel oil/naphtha based power generation as an alternative to the project activity can be taken by

the project proponent. This alternative would be in order with all applicable laws and regulations of

the country. However, in this alternative the project proponent would face high operational cost barrier

on account of spiraling diesel/ fuel oil/naphtha prices for consumers. Under merit order purchasing or

compared to low cost of generation through other fuel alternatives, selling of power would be

extremely difficult from such power stations. In fact, the highest capacity power plant running on

diesel in India is of 128 MW (Kozhikode DG)12 only. Hence this alternative is not considered further

gher%20size%20of%20coal%20fired%20thermal%20power%20stations.pdf . To implement an installed capacity to the tune of 1320 MW, it is more reasonable that the project proponent would have gone ahead with the implementation of 2-3 units of 500 MW (at a single location or at different locations). 500 MW units would ensure economies of scale and it would be more practical for the project proponent to install two 500 MW units rather than four 250 MW units. Moreover the 500 MW units is more efficient and have better performance than the smaller size units (Page 2-3 of http://cea.nic.in/thermal/Special_reports/Report%20of%20the%20committee%20to%20recommend% 20next%20higher%20size%20of%20coal%20fired%20thermal%20power%20stations.pdf). More number of units at different locations would also mean more difficulty in land acquisition for the project and operational/ monitoring issues. 12 According to the report of Working Group on Petroleum and Natural Gas for XIth Plan (2007-12), [Ref: Planning Commission, Govt. of India] there is a natural gas demand–supply gap (shortfall in supply) to the extent of 67.98 MMSCMD in 2007-08 which may fall to 42.81 MMSCMD in 2008 – 09. According to the same projections, from this level, the gap would increase steadily to 91.13 MMSCMD by 2011-12. At present in India, only the industries in Power and fertilizer sector and small-scale users deserve the supply of Government regulated natural gas under Administered Price Mechanism (APM). According to a policy document (L-12015/5/04-GP (i) of Ministry of Petroleum and Natural

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 17 for arriving at the baseline scenario since this alternative is associated with the barriers mentioned

above.

Alternative 5: Power generation using energy sources (renewable energy sources) other than

coal

In this alternative scenario, the project proponent could have considered generation of power using

renewable energy sources which includes hydro power, wind power, biomass energy etc. In this option

there would be no GHG emissions and this alternative is in compliance with all applicable laws and

regulations of the country. However, generation of power to the tune of 1320MW (which would be

running on a base load) using renewable resources like small hydro, wind, biomass etc is not a

technically and economically feasible proposition on account of inconsistent availability of renewable

sources and high risk associated with renewable technologies. The project proponent would face high

investment, technological and other barriers in order to implement this alternative. Furthermore,

renewable resource based power generating stations typically used for peak load services. Wind

energy generation is seasonal and intermittent during the seasons. Highest plant load factor achieved

by the wind based generation projects in a coastal Indian state like Maharashtra, is at a maximum of

33%, which is not comparable to the proposed project activity13. Biomass based generation projects

are planned to encourage utilization of waste land and active utilization of biomass available.

According to Ministry of New and Renewable Energy, Govt. of India, maximum load factor

achievable is 75%, which is less than that of the proposed project activity14. Typically biomass based

power stations are to the tune of 10 MW and hence is not a feasible alternative to the proposed project

activity.

Gas the power and fertilizer sector and some other specific units will receive NG supply against their existing allocation. Also, in case of reduction in availability of this gas in future, the supplies to APM consumer would be reduced on a pro-rate basis. The project proponent – APML does not have any existing allocation of NG. Furthermore, considering the declining volume of APM gas supply in future (Ref: CRISIL Research Natural Gas Update – November 2007) it is highly unlikely that the 1320 MW or nearing power generation capacity would come up based on APM gas supply.

http://72.14.235.132/search?q=cache:jtfvfuTUOp0J:powermin.nic.in/whats_new/PFR/Kearla/Perijankutty.pdf+powermin+Brahmapuram&hl=en&ct=clnk&cd=1&gl=in 13 Page 30 of Maharashtra Electricity Regulatory Commission Order, Case No. 17 (3), 3, 4 & 5 of 2002 found at http://mercindia.org.in/pdf/Detail_Wind_Energy_Order.pdf 14 http://mnes.nic.in/annualreport/2006_2007_English/HTML/ch2_pg5.htm

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 18 Large hydro projects face huge risks of geological and hydrological uncertainties and could cause

dislocation of significant population15.

Plant Load Factor for Hydro Power Plants in India16

Therefore, the nature of the project activity and this baseline option on delivering similar services vary

significantly17.

Hence this alternative is not considered further for arriving at the baseline scenario.

Alternative 6. Power generation using energy sources (nuclear) other than coal

As an alternative to the project activity, the project proponent could have opted for nuclear power

generation. In this option there would be very less GHG emissions and this alternative will be in

compliance with all applicable laws and regulations of the country. However, as per the present

Atomic Energy Act of India nuclear power generation is restricted to Government or Government

owned companies only and not so far open to any private sector participation18. The project proponent

has to face stiff regulatory barriers in order to implement this option. Hence this alternative is not

considered further for arriving at the baseline scenario.

15 Policy on Hydro Power Development, Govt of India, Page 2-3 found at http://www.powermin.nic.in/whats_new/pdf/hydro_power_policy_developmemt.pdf 16 http://www.cea.nic.in/power_sec_reports/general_review/0405/ch2.pdf, http://www.cea.nic.in/power_sec_reports/executive_summary/2006_03/6.pdf, http://www.cea.nic.in/power_sec_reports/Executive_Summary/2007_03/6.pdf,

http://www.cea.nic.in/god/opm/Monthly_Generation_Report/18col_07_03.pdf, http://www.cea.nic.in/power_sec_reports/general_review/0405/ch3.pdf 17 As per Ministry of Power Guidelines for development of Hydro Electric projects sites by private developers, GoI, several potential risks of natural calamities such as inter-state water sharing disputes, ecological imbalance, displacement and land submergence. For e.g. seven tribunals were set-up by Ministry of Water Resources for resolving various disputes including the inter-state. As a result of these disputes, large hydro generation projects are withheld for execution among various Indian states.

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 19 Alternative 7: Import of electricity from connected grids, including the possibility of new

interconnections.

This alternative involves import of electricity from connected grid to meet the power demand of India.

Table 6: Import of Electricity in India

All India Energy Generation data Generation (GWh) Type of Generation

2007-08 2006-07 2005-06 Thermal 558990.05 527547.36 497214.30 Nuclear 16776.91 18606.75 17238.89 Hydro 123424.12 113358.77 101293.13 Bhutan Import 5290.1 3010.08 1764.12 Total 704481.18 662522.96 617510.44 % of import in Total Generation 0.75 0.45 0.29 http://www.cea.nic.in/god/opm/Monthly_Generation_Report/18col_A_08_03/FILE-04.pdf http://www.cea.nic.in/cea-archive/body/Reports/Monthly%20Generation%20Report/2006/18col_06_03.pdf

http://www.cea.nic.in/power_sec_reports/executive_summary/2008_03/6.pdf

This alternative is in coherence with all applicable laws and regulations of the country. However, the

import of power by India has been 0.75% in 2007-08 and 0.45% in 2006-07. Considering this

historical trend of import of power and also considering the fact that large scale power import in India

is constrained by inadequate power transmission infrastructure and lack of grid integration among

neighboring countries, it can be concluded that the import of electricity from connected grids is not a

realistic and credible alternative and the imported amount of electricity will not be sufficient to meet

the power deficit situation in India. Hence this alternative is not considered any further.

Step 2: Identify the economically most attractive baseline scenario alternative

Most attractive baseline scenario alternative is identified using investment analysis. As per the

guidance of the methodology the levelized cost of electricity generation in INR/kWh has been used as

financial indicator for comparison of economic attractiveness of baseline alternatives.

The major assumptions to arrive at the levelized cost of power generation have been tabulated below.

18 National Report to the Convention on Nuclear Safety, Fourth Review Meeting of the Contracting Parties, April 2008, Govt. of India

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 20

Assumptions Sub critical Super Critical

Project Size MW 1320 1320

Project Cost INR Millions 34937 65600

Debt % 70.00% 70.00%

Equity % 30.00% 30.00%

Rate of Interest on Loan

Capital

% 11.25% 11.25%

Rate of interest on Working

Capital

% 12.00% 12.00%

Return on Equity % 14.00% 14.00%

Loan Repayment Period Years 10 10

Depreciation % 3.60% 3.60%

O&M Costs (Fixed) Million INR/MW 0.8 0.8

O&M Cost (Variable) Million INR/MW 0.00 0.00

Escalation % of Capital Cost 4% 4%

Insurance % of Capital Cost 1.00% 1.00%

Maintenance Spares % of Capital Cost 1.00% 1.00%

Plant Life Years 25 25

PLF % 85% 85%

Auxiliary Consumption % 7.50% 7.50%

Gross generation Million kWh 9828.72 9828.72

Net generation Million kWh 9091.57 9091.57

Discounting Rate % 11.1% 11.1%

Gross Calorific Value kCal/kg 4895 4895

Station Heat Rate (SHR) kCal/kWh 2450 2060

Fuel Price INR/ton 1077.8 1077.8

Fuel Price Escalation % P.A. 5.00% 5.00%

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 21 The values for the subcritical power plant have been taken from a CERC approved order of a power

plant of similar capacity (500 x 2 MW) and approved at the same time when the project activity was

being conceptualized. The cost has been extrapolated for a plant of 1320 MW capacity.

The 70:30 debt/equity for the subcritical power plant is as per standard CERC guidelines and the

same has been used for the supercritical power plant.

The fuel (coal) price has been considered at INR 1077.8 per ton. This figure is arrived at by

considering a coal price of INR 750 per ton, a transportation and handling charge of INR 220 per ton

and a transportation loss of 0.1%19. The coal price of INR 750 per ton20 has been calculated

considering:

a) a royalty for the coal block allocated to the project proponent (including cess etc) (about INR

120/ton)

b) operational costs including manpower cost, power, stores etc

Table 7: Economic analysis of all the realistic and credible alternatives available with APML in absence of the proposed project activity

Description of Alternative Levelized Cost of electricity

production (INR/kWh)

Alternative 1 The project activity not implemented as a

CDM project

2.01

Alternative 2 Power generation using sub-critical coal-

fired power generation technologies

1.64

Note: The calculation sheet is attached as Appendix 2.

As the data shows in above Table 7, the occurrence of Alternative -1 is prohibited by the higher

levelized cost of electricity generation. Hence, this alternative can not be considered as baseline option.

Alternative 2 “Power generation using sub-critical coal-fired power generation technologies” is

therefore the baseline for the proposed project activity.

19 Project Information Memorandum by SBI Capital Markets Limited for Adani Power Maharashtra Limited 20 Advance Coal Management & Marketing Pvt Ltd: Assessment of estimated project cost and operational cost at Lohara West & Lohara Extension Opencast Project

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 22 B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (assessment and demonstration of additionality): >> As per the approved methodology (ACM0013, Version 02.1) followed in this PDD,

“A power plant is a facility for the generation of electric power from thermal energy from

combustion of a fuel. In case where several power generation units have been installed at one site in

a single location, each unit should be considered as a power plant.”

Therefore, each of the 660 MW super-critical technology based unit (in project activity scenario) or

500 MW sub-critical units (in baseline scenario) have been considered as separate power plant for

subsequent discussion on emission reduction computation.

Even though this super-critical technology is already in practice in other nations like UK and Japan, no

super-critical power plant is yet operational in India21. In India, out of total installed power generation

capacity of 143061.01 MW the installed capacity of coal based thermal power constitutes 76048.88

MW as on 31.03.2008 (Refer to Table 4). However, till date not a single thermal power plant in India

has come up with super-critical technology. This demonstrates the real uniqueness of the project. The

technology has achieved very limited penetration in India due to the investment, technology and other

barriers as elaborated below.

The “Tool for the demonstration and assessment of additionality” version 05.2 has been followed to

demonstrate the additionality of this proposed project activity.

21 Page 141 of UMPP Risk Analysis Report by Mott MacDonald, British High Commission found at the link http://www.defra.gov.uk/environment/climatechange/internat/devcountry/pdf/umpp-risk-analysis.pdf

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 23

Step 1: Identification of alternatives to the project activity consistent with current laws and regulations Realistic and credible alternatives to the proposed project activity which are consistent with mandatory

laws and regulations and can be part of the baseline scenario have been identified in Section B.4. Thus

Option 2, which involves power generation using sub-critical coal fired technology, has been selected

as the most representative baseline for this proposed project activity.

Step 2: Investment Analysis

The project proponent has performed investment analysis to establish project additionality.

Sub-step 2a: Determine appropriate analysis method

Investment comparison analysis has been applied to establish additionality of the project activity.

Sub-step 2b: Option II

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 24 As per the additionality tool, levelized cost of electricity production may be selected as a financial

indicator of the project. For the project activity under consideration, levelized cost of electricity

production has been identified as the most suitable financial indicator for the project type.

Sub-step 2c: Calculation and comparison of financial indicators

Options

Levelized cost of electricity production

(INR/kWh)

Baseline: Power generation using sub-critical

coal-fired power generation technologies

1.64

Project activity not implemented as a CDM

project

2.01

Since, the levelized cost of electricity production of the proposed project activity is substantially

higher than the levelized cost of electricity production for the baseline case, it can be concluded that

the proposed project activity is additional from the financial point of view. The above comparison

between levelized costs of electricity production signifies that it is not a financially attractive

proposition for the project proponent to invest in the proposed project activity. However, the revenue

flow to the project activity through CDM would make the project financially viable.

Sub-step 2d: Sensitivity Analysis

The sensitivity analysis has been performed for a -/+10% variation in parameters of the plant load

factor, project cost, station heat rate, rate of interest on loan capital and coal cost for both subcritical

and supercritical power plants of realistically comparable capacity. The sensitivity analysis further

proves the robustness of the financial additionality of the proposed project activity.

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 25

Step 3: Barrier Analysis

As investment analysis has been carried out to prove the additionality of the project activity, hence

barrier analysis is not done.

Step 4. Common practice analysis

Sub-step 4a. Analyze other activities similar to the proposed project activity

As per the definition of the term “similar activities” (as indicated in Tools for the demonstration and

assessment of additionality - Version 05.2), plants are considered similar only if they rely on a broadly

similar technology or practices, are of a similar scale, take place in a comparable environment with

respect to regulatory framework and are undertaken in the relevant country/region.

The employment of super-critical technology and at large scale is a new addition in India. At present

there is no operating super-critical power plant in India at this scale (installed capacity of 1320 MW)

which is running on coal and supplying electricity to the grid. At the time of project conception, the

Mundra UMPP, Sasan UMPP, Krishnapatnam UMPP, North Karanpura (NTPC) and Adani Power

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 26 (Phase 3), Mundra were being conceptualized. However the UMPPs are of a higher capacity (4000

MW) and use a different unit size (800 MW). The NTPC plant is also of a higher capacity (1980

MW). Only the Adani Power Plant in Mundra satisfies the criteria to similar activities. (All the five

projects i.e. the Mundra UMPP, Sasan UMPP, Krishnapatnam UMPP, NTPC North Karanpura

projects and Adani –Phase 3 have been conceptualized considering CDM revenues)22.

Sub-step 4b. Discuss any similar options that are occurring

As there are no similar activities observed, this authenticate similar activities are not commonly

carried-out. Hence the need to any similar options that are occurring would not arise.

Since similar activities are not observed, hence Step 4 is satisfied.

Thus, it may be concluded that the proposed project activity is additional as it satisfies all the criteria

of the “Tool for the demonstration and assessment of additionality”, Version 05.2.

The objective of the proposed project activity is to generate and supply power to consumers in India

through electricity distribution agencies on a long term basis. The objective holds true irrespective of

the technology and investment chosen for the power plant. Under the proposed project activity, the

project proponent will be supplying 1320 MW of power to Maharashtra State Electricity Distribution

Co. Ltd as per the competitive tariff based mutually signed contractual agreement. In absence of the

said Power Purchase Agreement with the Maharashtra State Electricity Distribution Co. Ltd for the

proposed project activity, the project proponent would have generated power and sold it to other

authorities/ third party etc. The agreement with any other distribution authority would have also been

based on a similar competitive tariff based bidding process.

Even though there are other cost effective options (coal based subcritical power plant), yet the project

proponent decided to go for implementation of a supercritical coal based power plant. The tariff of

22 The Mundra UMPP was the first supercritical power plant based on 800 MW units (http://www.ifc.org/ifcext/spiwebsite1.nsf/1ca07340e47a35cd85256efb00700cee/1584EA74DA3979AB852573A0006847BB), which was awarded in April 2007 (http://news.oneindia.in/2007/04/23/tata-power-takes-over-mundra-umpp.html). The Sasan and Krishnapatnam UMPPs were awarded between May-October 2007 (http://www.business-standard.com/india/news/reliance-power-bags-krishnapatnam-umpp/29907/on. The fourth UMPP at Tilaiya was to be awarded at a much later date in December 2008 (http://www.projectsmonitor.com/detailnews.asp?newsid=16355). All these projects are of a higher capacity (4000 MW) as compared to the proposed project activity. All the UMPPs have been conceptualized with CDM consideration (Page 7 of http://www.pfcindia.com/Tariff_Policy.pdf). The supercritical plant at North Karanpura which is also of a higher capacity as compared to the proposed project activity, was also conceptualized with CDM consideration. (http://cdm.unfccc.int/methodologies/PAmethodologies/publicview.html?meth_ref=NM0217)

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 27 power generation from this power plant is also independent of the technology or investment chosen for

the power plant. The project proponent decided to go for the implementation of a coal based

supercritical power plant due to the reason that the flow of CDM revenue to the supercritical coal

based power plant would improve the cost effectiveness of the project activity and the energy efficient

supercritical power plant would contribute to the cause of mitigation of climate change.

The major milestones in the CDM chronology of the proposed project activity have been tabulated

below. The table demonstrates that the project proponent was well aware of the CDM modalities and

procedures before they decided to go ahead with the project activity and that CDM was the major

decisive factor for them to go ahead with the proposed project activity.

Sr. No.

Subject / Activity Date Remark

1 Email communications with CDM consultants 29.9.2007 Awareness of CDM

05.10.2007 2 Information Memorandum by SBI Caps Nov-07 3 Proposal placed by Vineet Jain, for implementation of

the project activity 07.02.2008 CDM

consideration 4 Approval for implementation of project activity by group

Chairman 08.02.2008

5 Email communications with CDM consultants for appointment

20.2.2008

22.2.2008 6 EPC Contract with M/s. SCMEC for 2 x 660 MW coal

based Thermal Power Project on Super Critical Technology

28.02.2008 Start date of project activity

7 Preparation of PDD Mar-Jun 2008 8 PPA Signed with MSEDCL 08.09.2008 9 Communications with validator for appointment 16.09.2008 10 Presentation to DNA (Ministry of Environment &

Forests, Govt of India) 17.11.2008

11 Validator appointment 28.11.2008 12 Webhosting 01 Jan-30 Jan 2009 13 Receipt of Host Country Approval 17.04.2009

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 28 B.6. Emission reductions:

B.6.1. Explanation of methodological choices: The relevant methodological steps are described below. Baseline Emissions Baseline emissions are calculated by multiplying the electricity generated in the project plant (EGPJ,y)

with a baseline CO2 emission factor (EFBL,CO2,y), as follows:

yCOBLyPJy xEFEGBE ,2,,=

Where:

BEy Baseline emissions in year y (tCO2)

EGPJ,y Net quantity of electricity generated in the project plant in year y (MWh)

EFBL,CO2 Baseline emission factor in year y (tCO2/MWh)

EFBL,CO2 is determined using the lower value between the emission factor of the technology and fuel

type that has been identified as the most likely baseline scenario and a benchmark emission factor

determined based on the performance of the top 15% power plants that use the same fuel as the project

plant and any technology available in the geographical area as defined in Step 2 below.

To calculate EFBL,CO2,y the lowest value among the following two options will be used.

Option 1: The emission factor of the technology and fuel identified as the most likely baseline scenario

under “Identification of the baseline scenario” section above, and calculated as follows:

Where:

EFBL,CO2,y Baseline emission factor in year y (tCO2/MWh)

EFFF,BL,CO2,y CO2 baseline emission factor of the baseline fossil fuel type that has been identified as the most likely baseline scenario (tCO2 / Mass or volume unit)

EFFF,PJ,CO2,y Average CO2 emission factor of the fossil fuel type used in the project plant in year y (tCO2 / Mass or volume unit)

ηBL Energy efficiency of the power generation technology that has been identified as

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 29

the most likely baseline scenario

For the proposed project activity, the baseline fossil fuel type that has been identified as the most

likely baseline scenario is coal and the fossil fuel to be used in the proposed project activity is also

coal.

Option 2: The average emissions intensity of all power plants j, corresponding to the power plants

whose performance is among the top 15 % of their category, as follows:

∑∑

=

jxj

jxjCOxjxj

yCOBL EG

EFNCVFCEF

,

,,2,,

,2,

**

Where:

EFBL,CO2,y Baseline emission factor in year y (tCO2/MWh)

FCj,x Amount of fuel consumed by power plant j in year x (Mass or volume unit)

NCVj,x Net calorific value of the fossil fuel type consumed by power plant j in year x (GJ / Mass

or volume unit)

EFCO2,j,x CO2 emission factor of the fossil fuel type consumed by power plant j in year x (tCO2 /

Mass or volume unit)

EGj,x Net electricity generated and delivered to the grid by power plant j in year x

X Most recent year prior to the start of the project activity for which data is available

J Top 15% performing power plants (excluding cogeneration plants and including power

plants registered as CDM project activities), as identified below, among all power plants

in a defined geographical area (India) that have a similar size, are operated at similar

load (i.e. at base load) and use the same fuel type (coal) as the project activity

For determination of the top 15% performer power plants j, the following step-wise approach is used:

Step 1: Definition of similar plants to the project activity

The sample group of similar power plants should consist of all power plants (except for cogeneration

power plants):

• Those use the same fossil fuel type as the project activity, where fuel types are defined in the

following categories:

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 30

-Coal

-Oils (e.g. diesel, kerosene, residual oil)

-Natural gas

• Those have been constructed in the previous five years;

• Those have a comparable size to the project activity, defined as the range from 50% to 150% of the

rated capacity of the project plant;

• Those are operated in the same load category, i.e. at peak load (defined as a load factor of less than

3,000 hours per year) or base load (defined as a load factor of more than 3,000 hours per year) as the

project activity; and

• Those have operated (supplied electricity to the grid) in the year prior to the start of the project

activity.

The sample group of plants identified consists of coal based sub-critical power plants that have a

capacity between 330MW to 990MW, have been constructed in last 5 years, operate at base load and

have supplied electricity to the grid before start of the proposed project activity.

Step 2: Definition of the geographical area

As per the methodology ACM0013, Version 02.1, the geographical area to identify similar power

plants is chosen in a manner that the total number of power plants “N” in the sample group comprises

at least 10 plants. As a default, the grid to which the project plant will be connected should be used.

As the number of similar plants, as defined in Step 1, within the Western regional grid boundary is

less than 10, the geographical area is extended to India. The number of similar plants is now greater

than 10.

Step 3: Identification of the sample group

Identify all power plants n that are to be included in the sample group. Determine the total number

“N” of all identified power plants that use the same fuel as the project plant and any technology

available within the geographical area, as defined in Step 2 above.

The sample group should also include all power plants within the geographical area registered as

CDM project activities, which meet the criteria defined in Step 1 above.

Step 4: Determination of the plant efficiencies

Calculate the operational efficiency of each power plant n identified in the previous step. The most

recent one-year data available is used. The operational efficiency of each power plant n in the sample

group is calculated as follows:

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 31

8.277** ,,

,,

xnxn

xnxn NCVFC

EG=η

Where:

EGn,x Net electricity generated and delivered to the grid by the power plant n in the year x

(MWh)

FCn,x Quantity of fuel consumed in the power plant n in year x (Mass or volume unit)

NCVn,x Net calorific value of the fuel type fired in power plant n in year y (GJ / mass or volume unit)n are all power plants in the defined geographical area that have a similar size, are

operated at similar load and use the same fuel types as the project activity

277.8 Conversion factor from TJ to MWh

x Most recent year prior to the start of the project activity for which data are available

Step 5: Identification of the top 15% performer plants j

Sort the sample group of N plants from the power plants with the highest to the lowest operational

efficiency. Identify the top 15% performer plants j as the plants with the 1st to Jth highest operational

efficiency, where the J (the total number of plants j) is calculated as the product of N (the total number

of plants n identified in step 3) and 15%, rounded down if it is decimal.4 If the generation of all

identified plants j (the top 15% performers) is less than 15% of the total generation of all plants n (the

whole sample group), then the number of plants j included in the top 15% performer group should be

enlarged until the group represents at least 15% of total generation of all plants n. All Steps should be

documented transparently, including a list of the plants identified in Steps 3 and 5, as well as relevant

data on the fuel consumption and electricity generation of all identified power plants.

The emission factor has been calculated by Central Electricity Authority, Govt of India and published

on their website (http://www.cea.nic.in/planning/cdm.pdf).

Project emissions

The CO2 emissions from electricity generation in the proposed project activity (PEy) is calculated

using the latest approved version of the “Tool to calculate project or leakage CO2 emissions from

fossil fuel combustion” (Version 02, EB 41), where the process j in the tool corresponds to the

combustion of fossil fuels in the project plant. Here the process j corresponds to combustion of coal

for power generation using super-critical technology in the proposed project activity. As per this tool,

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 32 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:

∑=i

yiyjiyjFC xCOEFFCPE ,,,,,

Where:

PEFC,j,y CO2 emissions from fossil fuel combustion in process j during the year y (tCO2 / yr)

FCi,j,y Quantity of fuel type i combusted in process j during the year y (mass or volume unit /

yr);

COEFi,y CO2 emission coefficient of fuel type i in year y (tCO2 / mass or volume unit);

I Fuel types combusted in process j during the year y

The CO2 emission coefficient COEFi,y can be calculated following two procedures, depending on the

available data on the fossil fuel type i, as follows:

Option A: The CO2 emission coefficient COEFi,y is calculated based on the chemical composition of

the fossil fuel type i, or

Option B: The CO2 emission coefficient COEFi,y is calculated based on net calorific value and CO2

emission factor of the fuel type i.

Option A is followed here.

12/44,,, xwCOEF yicyi =

Where:

COEFi,y CO2 emission coefficient of fuel type i in year y (tCO2 / mass or volume unit);

wc,i,y Weighted average mass fraction of carbon in fuel type i in year y (tC / mass unit of the

fuel)

i Fuel types combusted in process j during the year y

Note: For ex-ante calculation of emission reduction, the value of wc,i,y is estimated to be 0.416 or

41.6%. As this is a future project, hence the data sources (fuel supplier invoices or measurement by

project proponent) as mentioned in the “Tool to calculate project or leakage CO2 emissions from fossil

fuel combustion” (Version 02) are not applicable here. The value of 41.6% is an estimated value taken

from the technical specifications of the supply contract between the project proponent and SCMEC

(signed on 28th February 2008). The same will be monitored ex-poste as mentioned in section B.7.2 in

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 33 line with the “Tool to calculate project or leakage CO2 emissions from fossil fuel combustion”

(Version 02).

Leakage

The methodology does not require the consideration of any leakage emissions.

LEy=0

LEy are the leakage emissions during the year y (tCO2e).

Emission reductions

Emission reductions (ERy) by the project activity during year y are the difference between the baseline

emissions (BEy), project emissions (PEy) and emissions due to leakage (LEy), and are expressed as

follows:

ERy = BEy − PEy − LEy……………………………………….. (15)

where:

ERy Emission reductions due to the project activity during the year y (tCO2e)

BEy Baseline emissions during the year y (tCO2e)

PEy Project emissions during the year y (tCO2e)

LEy Leakage emissions during the year y (tCO2e)

B.6.2. Data and parameters that are available at validation: (Copy this table for each data and parameter) Data / Parameter: EFFF,BL,CO2,y Data unit: tCO2/GJ Description: CO2 baseline emission factor of the baseline fossil fuel type that has been

identified as the most likely baseline scenario Source of data used: 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Table

2.2, Default Emission Factor for Sub bituminous Coal Value applied: 0.0961 Justification of the choice of data or description of measurement methods and procedures actually applied :

IPCC default value is internationally accepted and hence used.

Any comment: -

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 34 Data / Parameter: ηBL

Data unit: - Description: Energy efficiency of the power generation technology that has been

identified as the most likely baseline scenario Source of data used: This parameter is calculated as part of the baseline scenario selection

procedure. Value applied: 0.351 Justification of the choice of data or description of measurement methods and procedures actually applied :

The efficiency has been taken as the higher efficiency between: a) Efficiency (35.1%) calculated as per the station heat rate (of 2450 kCal/kWh as given in tariff order of CERC, Govt of India) of baseline subcritical power plants b) Efficiency (31.8%) calculated as per the weighted average station heat rate (of 2703.9 kCal/kWh as given in Annex 3, Table A1) of thermal power plants in India in 2007-08 published by CEA, Govt of India.

Any comment: Data / Parameter: EFFF, PJ,CO2,y Data unit: tCO2e/GJ Description: CO2 emission factor of the fossil fuel type consumed by the proposed

project activity Source of data used: 2006 IPCC Guidelines for National Greenhouse Gas Inventories-Table

2.2 for sub bituminous coal Value applied: 0.0961 Justification of the choice of data or description of measurement methods and procedures actually applied :

The proposed project activity will use sub-bituminous coal. Hence IPCC default value of emission factor for sub-bituminous coal is used as it is internationally accepted. (IPCC values are used as well documented and reliable regional/national values are not available).

Any comment: Data / Parameter: EFBL,CO2,y Data unit: tCO2e/MWh Description: Baseline emission factor in the year Source of data used: i) 2006 IPCC Guidelines for National Greenhouse Gas Inventories (IPCC

values are used as well documented and reliable regional/national values are not available) ii) CEA Website (www.cea.nic.in)

Value applied: 0.941 Justification of the choice of data or description of measurement methods and procedures actually applied :

The baseline emission factor as per the two options namely Option 1 and Option 2 have been calculated and the lower value of the two options (in this case Option 2) have been used for calculation of baseline emissions. Option 1: Calculated from the three parameters ηBL, EFFF,BL,CO2,y and EFFF,PJ,CO2,y. The value is calculated as 0.964 tCO2/MWh Option 2: This factor is published on the CEA website

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 35

(http://www.cea.nic.in/planning/cdm.pdf) and the value stands at 0.941 tCO2/MWh

Any comment: Since Option 2 is the lower between Options 1 and 2, hence the Option 2 emission factor has been used for emission reduction calculation. Also as per the methodology ACM0013, version 02.1, in case of option 2, EFBL,CO2,y is not monitored annually but only calculated once at the start of the crediting period and updated at the renewal of a crediting period.

Note: The parameters FCj,x, FCn,x, NCVj,x, NCVn,x, EGj,x and EGn,x are required to calculate the

baseline emission factor (as per Option 2). Since the baseline emission factor EFBL,CO2,y is calculated

and published by CEA, Govt of India, hence the parameters FCj,x, FCn,x, NCVj,x, NCVn,x, EGj,x and

EGn,x have not been included in this section of data and parameters available at validation.

CEA has publicly made available a document which says that the factor of 0.941 tCO2/MWh has been

calculated as per the methodology ACM0013, considering data upto 2007-08 and is applicable to new

coal fired power generating units with supercritical steam parameters. The same is available at:

http://www.cea.nic.in/planning/cdm.pdf

The detailed step wise procedure and calculation based on the methodology ACM0013 to calculate the

emission factor (of 0.941 tCO2/MWh) as per Option 2 can also be found in pages 20-26 of “CO2

Baseline Database for the Indian Power Sector, User Guide”, Version 4.0, October 2008 published by

Government of India, Ministry of Power, Central Electricity Authority (CEA) and publicly available

at: http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver4.pdf

B.6.3 Ex-ante calculation of emission reductions: The list of power plants that are coal based sub-critical power plants with a capacity between 330MW

to 990MW, constructed in last 5 years, operating at base load and supplying electricity to the grid

before start of the proposed project activity have been included in the sample group.

Table 11: Power Plants included in the sample group

S. No. Name Unit No. Capacity Location Date of

Commissioning

1. TALCHER STPS 3 500 Orissa 4-Jan-03

2. TALCHER STPS 4 500 Orissa 25-Oct-03

3. TALCHER STPS 5 500 Orissa 13-May-04

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 36 4. TALCHER STPS 6 500 Orissa 6-Feb-05

5. R_GUNDEM STPS 7 500 Andhra Pradesh 26-Sep-04

6. VINDH_CHAL STPS 9 500 Madhya Pradesh 27-Jul-06

7. VINDH_CHAL STPS 10 500 Madhya Pradesh 8-Mar-07

8. RIHAND 3 500 Uttar Pradesh 31-Jan-05

9. RIHAND 4 500 Uttar Pradesh 24-Sep-05

10. KAHALGAON 6 500 Bihar 16-Mar-2008

11. BELLARY TPS 1 500 Karnataka 3-Dec-07

12. SANJAY GANDHI 5 500 Madhya Pradesh 18-Jun-07

13. SIPAT STPS 1 500 Chhattisgarh 27-May-07

14. KAHALGAON 5 500 Bihar 31-Mar-2007

Source: Baseline Carbon Dioxide Emission Database Version 4.0 – LATEST

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

Out of these power plants-only the plants has been considered that satisfy the criteria to be included in

the top 15% power plants. Accordingly, two units of 500MW i.e. Talchar STPS unit 3 and 4 are

identified as 15% top performing units. These units also cover more than the 15% of the total net

generation of all plants selected in the sample Group. CEA has calculated the baseline emission factor

based on the net electricity generation and unit wise coal consumption by the top power plants as per

Option 2 given in the methodology ACM0013.

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Table 12: Baseline Emissions

Baseline Emissions

Option 1 Option 2

Year PLF Auxiliary Consump

tion

EGPJ,y EFFF,BL,CO2,

y

EFFF,PJ,CO2,y ηBL EFBL,CO2,y EFBL,CO2

,y

BEy

% % MWh tCO2/GJ tCO2/GJ tCO2/MWh

tCO2/MWh

tCO2

Sub-bituminous

coal

Coal used in project

Aug 2011-Jul 2012

85 7.50% 7197490 0.0961 0.0961 0.351 0.986 0.941 6772838

Aug 2012-Jul 2013

85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2013-Jul 2014

85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2014-Jul 2015

85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2015-Jul 2016

85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2016-Jul 2017

85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2017-Jul 2018

85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2018-Jul 2019

85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2019-Jul 2020

85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2020-Jul 2021

85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Total 83769310

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Table 13: Project Emissions

Project Emissions Year Sub-Bituminous Coal

required ton per MWh FCi,i,y Wc,i,y PEy

ton/MWh ton %C tCO2 Aug 2011-Jul 2012 0.529 3807870 41.6 5808271 Aug 2012-Jul 2013 0.529 4809941 41.6 7336763 Aug 2013-Jul 2014 0.529 4809941 41.6 7336763 Aug 2014-Jul 2015 0.529 4809941 41.6 7336763 Aug 2015-Jul 2016 0.529 4809941 41.6 7336763 Aug 2016-Jul 2017 0.529 4809941 41.6 7336763 Aug 2017-Jul 2018 0.529 4809941 41.6 7336763 Aug 2018-Jul 2019 0.529 4809941 41.6 7336763 Aug 2019-Jul 2020 0.529 4809941 41.6 7336763 Aug 2020-Jul 2021 0.529 4809941 41.6 7336763

Total 47097337 71839138

Table 14: Emission Reductions

Year Baseline Emission Project Emission Emission reduction tCO2 tCO2 tCO2

Aug 2011-Jul 2012 6772838 5808271 964567 Aug 2012-Jul 2013 8555164 7336763 1218401 Aug 2013-Jul 2014 8555164 7336763 1218401 Aug 2014-Jul 2015 8555164 7336763 1218401 Aug 2015-Jul 2016 8555164 7336763 1218401 Aug 2016-Jul 2017 8555164 7336763 1218401 Aug 2017-Jul 2018 8555164 7336763 1218401 Aug 2018-Jul 2019 8555164 7336763 1218401 Aug 2019-Jul 2020 8555164 7336763 1218401 Aug 2020-Jul 2021 8555164 7336763 1218401

Total 83769310 71839138 11930172

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

Year

Estimation of

proposed project

activity

emission

(tonnes of CO2 e)

Estimation of

baseline

emissions (tonnes

of CO2 e)

Estimation of

leakage

(tonnes

of CO2 e)

Estimation of

emission

reductions

(tonnes of

CO2 e)

Aug 2011-Jul 2012 5808271 6772838 0 964567

Aug 2012-Jul 2013 7336763 8555164 0 1218401

Aug 2013-Jul 2014 7336763 8555164 0 1218401

Aug 2014-Jul 2015 7336763 8555164 0 1218401

Aug 2015-Jul 2016 7336763 8555164 0 1218401

Aug 2016-Jul 2017 7336763 8555164 0 1218401

Aug 2017-Jul 2018 7336763 8555164 0 1218401

Aug 2018-Jul 2019 7336763 8555164 0 1218401

Aug 2019-Jul 2020 7336763 8555164 0 1218401

Aug 2020-Jul 2021 7336763 8555164 0 1218401

Total (tonnes of CO2 e) 71839138 83769310 0 11930172 B.7 Application of the monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored: (Copy this table for each data and parameter) Data / Parameter: EGPJ,y Data unit: MWh Description: Net quantity of electricity generated in the project plant in year y Source of data to be used:

Power plant records

Aug 2011-Jul 2012 7197490 Aug 2012-Jul 2013 9091566 Aug 2013-Jul 2014 9091566 Aug 2014-Jul 2015 9091566 Aug 2015-Jul 2016 9091566 Aug 2016-Jul 2017 9091566 Aug 2017-Jul 2018 9091566 Aug 2018-Jul 2019 9091566

Value of data applied for the purpose of calculating expected emission reductions in section B.5

Aug 2019-Jul 2020 9091566

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Aug 2020-Jul 2021 9091566 Description of measurement methods and procedures to be applied:

-This data will be monitored continuously by cumulative type kWh meter. The same will be recorded on a daily basis. The kWh meter will be calibrated on a regular interval by an accredited agency. The Plant In-charge will be responsible for the regular calibration of the meter. -Data will be recorded in paper/electronic format and archived for Crediting Period + 2 years.

QA/QC procedures to be applied:

The data can be cross verified with the electricity sales invoices.

Any comment: The installed meter will monitor the gross generation and auxiliary consumption of the proposed project activity. The same meter will also display the net generation based on the difference between the gross generation and auxiliary consumption.

Parameters to be monitored to calculate Project Emissions as per Tool to calculate project or leakage CO2 emissions from fossil fuel combustion/Version 02

Data / Parameter: FCi,j,y Data unit: Ton/year Description: Quantity of fuel type i combusted in process j during the year y Source of data to be used:

Power plant records

Aug 2011-Jul 2012 3807870 Aug 2012-Jul 2013 4809941 Aug 2013-Jul 2014 4809941 Aug 2014-Jul 2015 4809941 Aug 2015-Jul 2016 4809941 Aug 2016-Jul 2017 4809941 Aug 2017-Jul 2018 4809941 Aug 2018-Jul 2019 4809941 Aug 2019-Jul 2020 4809941

Value of data applied for the purpose of calculating expected emission reductions in section B.5

Aug 2020-Jul 2021 4809941 Description of measurement methods and procedures to be applied:

This data will be monitored continuously with the help of a weighing machine installed at each power generation unit. The same will be recorded on a daily basis. The weighing machine will be calibrated annually by an accredited agency. The Plant In-charge will be responsible for the regular calibration of the instrument. -Data will be recorded in paper/electronic format and archived for Crediting Period + 2 years.

QA/QC procedures to be applied:

The consistency of metered fuel consumption quantities would be cross-checked by an annual energy balance that is based on purchased quantities and stock changes. Where the purchased fuel invoices can be identified

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specifically for the CDM project, the metered fuel consumption quantities would also be cross-checked with available purchase invoices from the financial records.

Any comment: Total coal consumption will be monitored at project end and cross verified with audited balance sheet.

Data / Parameter: wc,i,y Data unit: % Description: Weighted average mass fraction of carbon in fuel type i in year y (tC /

mass unit of the fuel) Source of data to be used:

Data source Conditions for using the data

source a) Values provided by the fuel supplier in invoices

This is the preferred source.

b) Analysis reports of coal from a national/international accredited laboratory

If a) is not available

Value of data applied for the purpose of calculating expected emission reductions in section B.5

i=1 for coal whose wc,i,y= 41.6%

Description of measurement methods and procedures to be applied:

-Data will be recorded in paper/electronic format and archived for Crediting Period + 2 years. -Data will be monitored on a monthly basis.

QA/QC procedures to be applied:

The reliability of the parameter is ensured since it is from the fuel supplier or a national/international accredited laboratory. The values under a) or b) would be checked to see if they are within the uncertainty range of the IPCC default values as obtained from Tables 1.2 and 1.3, Vol. 2 of the 2006 IPCC Guidelines. If the values fall below this range additional information from the testing laboratory will be collected to justify the outcome or conduct additional measurements. The laboratories in b) would have ISO 17025 accreditation or would be able to justify that they can comply with similar quality standards.

Any comment: For ex-ante calculation of emission reduction, an estimated value of wc,i,y

has been used.

Actual measurements would be undertaken in line with national fuel standards.

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 42

B.7.2 Description of the monitoring plan: Please refer to Annex 4 for the monitoring plan. B.8 Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies)

25th March 2009

Name of person/entity determining the baseline:

Consultants and Experts of Adani Power Maharashtra Limited. Please refer to Annex 1 for contact

details.

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 43 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:

28th February 2008 (Agreement Executed) C.1.2. Expected operational lifetime of the project activity: 25 years 0 months C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period C.2.1.1. Starting date of the first crediting period:

Not applicable. C.2.1.2. Length of the first crediting period:

Not applicable. C.2.2. Fixed crediting period: C.2.2.1. Starting date:

01st August 2011 or on registration at UNFCCC (whichever is later) C.2.2.2. Length:

10 years 0 months

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 44 SECTION D. Environmental impacts D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts:

A comprehensive study on the project’s positive and negative impacts on the local environment and on

society is thus a key element for each CDM project. Article 12 of the Kyoto Protocol requires that a

CDM project activity lead to the sustainable development of the host country. APML proposes to

implement the proposed project activity because of its commitment to ensure maximum global and

local benefits in relation to certain environmental and social issues and is a major step towards

sustainable development.

Assessment of Environmental Impact

The impact of the project on the environment can be seen broadly in two stages:

1. Construction phase

2. Operational phase

Impacts during construction phase

As the construction period is around three years whereas the lifetime of the power plant is around 25

years, so the impacts due to the construction activities are negligible. Associated activities would

cause air pollution which would be short-term and would cease to exist beyond the construction phase.

Impacts during operational phase

Since the operating technology is occurring at super-critical conditions, most of the GHGs emissions

are occurring due to the consumption of coal but if a sub-critical power plant of the same capacity had

been set up, then the coal consumption would have been higher resulting in more GHG emissions.

The nature of the impacts that are evident during the operational and maintenance phases are

discussed in the tables given below. All possible environmental aspects for the proposed project

activity have been identified and discussed for their impacts on the baseline environment (that prevails

before the proposed project activity is executed). The following table summarizes the environmental

scenario before the proposed project activity is executed, proposed project activity’s local and

environmental, social and other impacts, benefits and the mitigation measures taken by APML to

reduce/ minimize negative impacts if any and enhance the positive impacts.

Environment Impacts and Mitigation Measures

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 45 Possible Impact Mitigation during construction Mitigation during operation

Air Impact § Spray water on dry surface

generating dust particles

§ Regulate vehicle emission

§ Implementation of ESP and bag

filters

§ Provide proper ash utilization

Plan

§ Green belt development

§ Space Provision for FGD

Soil Quality

Degradation

Removing top soil for construction,

turfing and plantation after civil

works

§ Continuous monitoring of soil

quality

§ Green belt development

§ Proper ash utilization

Drainage and irrigation Seawater will be the source of water for the power plant. So, there will be

no impact on local drainage and irrigation system

Groundwater depletion

& quality degradation

Seawater will be the source of water for the power plant. So, there

will be no impact on groundwater system

Surface water pollution Discharge of effluent will be based on the study done by National Institute

of Oceanography.

Terrestrial ecosystem

(disruption to flora and

fauna)

Suitable site selection avoiding

unnecessary disruption of existing

vegetation

Green belt development conserve

local biota

Disruption of road

traffic

Practice caution in use of vehicles Monitoring road trafficking

situation

Disturbance to water

supply

Establish adequate alternative water

supply

Establish adequate alternative

water supply & Continuous

monitoring

Occupational health

hazard

§ Providing health inspection and

vaccination

§ Organizing proper disposal

procedure of waste

§ Providing adequate sanitary

§ Providing health inspection

and vaccination

§ Periodic health check-up

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facilities to personnel and workers

Safety of workers § Adopt appropriate safety

measures

§ Provide first aid services

§ Make workers aware of risks and

how to avoid these

§ Workers would be provided

with hand gloves ear muffs,

safety boots, safety goggles,

helmets etc

§ Workers should be trained to

follow safe working practices

§ Proper hospital facility would

be provided

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: For the proposed project activity under consideration, the total investment is about INR 6560 crore.

As per Ministry of Environment and Forests Notification, New Delhi, 14th September, 2006, an

Environment Impact Assessment (EIA) study need not be done for a project activity if the investment

is less than INR 100 crore for new project and less than INR 50 crore for expansion / modernization

project23. Therefore, EIA is required for this proposed project activity. Accordingly, a separate

Environment Impact Assessment or EIA study had been developed for the proposed project activity.

The assessment of Environmental Impact for the proposed project activity has also been carried out as

required under Environmental (Protection) Act 1986, Government of India, mandatory for expansion

or modernization of any activity or for setting up new projects listed in Schedule I of the notification.

For the project activity under consideration, Environmental Clearance (EC) received from the Ministry

of Environment & Forest (MoEF), New Delhi for 2x660 MW Tirora Project vide their letter No.: J-

13011/4/2008-IA.II (T) dated 29.5.2008.

23 Source: EIA Notification Amendment dated June 13, 2002

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 47 SECTION E. Stakeholders’ comments E.1. Brief description how comments by local stakeholders have been invited and compiled: Identification of Stakeholders

The proposed 660 x 2 MW super critical project will be implemented by APML. The project activity will use more efficient technology for power generation in comparison to conventional sub critical technology. The GHG emissions will be substantially less as compared to conventional technology based power plant.

The stakeholders identified for the project activity are as under.

• SCMEC – Technology Suppliers

• Elected body of representatives administering the local area (village Panchayat)

• Statutory environmental and pollution boards of government.

• Technical Consultants

• Employees of APML

Stakeholders list includes the government and non-government parties, which are involved in the

project activity at various stages. APML applied / communicated to the relevant stakeholders to get

the necessary clearances. APML had invited all the identified stakeholders for the meeting by sending

invitation letters well in advance. The invitation letter copy as well as the list to whom it had been sent

will be submitted to the DOE. The purpose of convening a local stakeholder meeting was to appraise

the stakeholders about the project activity and get their feedback on the same. The detailed report of

stakeholder consultation will be submitted to the DOE.

E.2. Summary of the comments received:

Stakeholders Involvement

APML has communicated to the relevant stakeholders about the project. As project activity is

environmental friendly which will lead to sustainable development of the local area. Since proposed

project activity does not involves any displacement of the local population which in turn has not

disturbed the local social structure but rather has helped in improving their quality of life.

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 48 Several industries are stakeholders to the project. Project consultants were involved in the project to

take care of various pre-contract and post contract project activities like preparation of reports,

preparation of engineering documents, selection of vendors / suppliers and supervision of project

implementation.

Equipment suppliers will supply the equipments as per the specifications finalized for the project

activity and equipment supplier/APML are responsible for successful erection and commissioning of

the same at the site.

Stakeholders’ Comments

The comments from the local stakeholders have been taken in a very transparent way by the APML

and no adverse comments are being received from any stakeholders. Comments received from the

stakeholders are presented in tabulated format below.

Sl

No

Stake Holder Name Nature of relationship with

APML

Comments

1 Employees of

APML

Employed at APML The employees of APML have

appreciated this initiative of APML.

2 Local Stakeholders Local stakeholders affected by

the proposed project activity

The local stakeholders have lauded

the initiative taken by APML which

will help in employment generation

and electrification of parts of

Maharashtra.

3 Consultants Provided engineering consulting

service to APML for the

proposed project activity

The consultants have encouraged

APML to implement such an

advanced technology which will

result in GHG reduction and

mitigation of global warming.

4 Equipment Suppliers Supplied equipments to APML

for the proposed project activity

The equipment suppliers have

appreciated the initiative of APML

to implement this less GHG

intensive technology.

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 49 E.3. Report on how due account was taken of any comments received:

APML has so far received only positive feedbacks on the project activity from all the stakeholders.

However stakeholder consultation is an on-going process and the project proponent will continue the

process. All the comments received, so far, have been considered and given due consideration while

preparing the CDM Project Design Document.

Furthermore, as per the requirement of UNFCCC, the CDM Project Design Document has been web-

hosted on the DOE’s (Designated Operational Entity) website for a period of one month for global

stakeholder consultation. The comments received by the Validator during the period of global

stakeholder consultation will be properly addressed as a part of CDM process.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Adani Power Maharashtra Limited Street/P.O.Box: 7th Floor, Sambhav House, Judges Bungalow Road, Bodakdev, Building: Sambhav Press Building City: Ahmedabad State/Region: Gujarat Postfix/ZIP: 380 015 Country: India Telephone: +91- 79-2555 6927 FAX: +91- 79-2555 7176 E-Mail: [email protected] URL: www.adanigroup.com Represented by: Title: Salutation: Mr. Last Name: Jain Middle Name: First Name: Vineet Department: Sr. Vice President Mobile: +91-9925230124 Direct FAX: +91- 79-2555 7176 Direct tel: +91- 79-2555 6927 Personal E-Mail: [email protected]

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

No public funding available for this project.

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Annex 3

BASELINE INFORMATION

Table A1: Average station heat rate in Indian power plant as published by Central Electricity Authority, Government of India

Year No. of stations analyzed Capacity (MW) Weighted Average Operating

SHR (kCal/kWh) 2005-06 57 35480 2747 2006-07 56 38611 2861 2007-08 53 37830 2703.9

Source: http://www.cea.nic.in/god/opm/Thermal_Performance_Review/0708/highlights.pdf http://www.cea.nic.in/god/opm/Thermal_Performance_Review/0607/SECTION-13.pdf

Table A2: Baseline Emissions

Baseline Emissions Option 1 Option 2

Year PLF EGPJ,y EFFF,BL,CO2,y EFFF,PJ,CO2,y ηBL EFBL,CO2,y EFBL,CO2,y BEy %

Auxiliary Consumption MWh tCO2/GJ tCO2/GJ tCO2/MWh tCO2/MWh tCO2

%

IPCC value -sub-

bituminous coal

IPCC value- coal used in

project Aug 2011-Jul 2012 85 7.50% 7197490 0.0961 0.0961 0.351 0.986 0.941 6772838

Aug 2012-Jul 2013 85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2013-Jul 2014 85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2014-Jul 2015 85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2015-Jul 2016 85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2016-Jul 2017 85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2017-Jul 2018 85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2018-Jul 2019 85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2019-Jul 2020 85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Aug 2020-Jul 2021 85 7.50% 9091566 0.0961 0.0961 0.351 0.986 0.941 8555164

Total 83769310

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 53

Annex 4 MONITORING INFORMATION

The operational and management structure that will monitor the project activity is described below.

Roles and responsibility:

1. General Manager (GM) of the APML Power Plant will have the following responsibilities

§ Ensuring implementation of monitoring procedure

§ Internal audit and project conformance reviews

2. Manager (Operations) will have the following responsibilities

§ Organizing and conduct training programs on CDM

§ Implementing all monitoring control procedures

§ Associating with the Manager (Technical Services) towards maintenance and calibration of

equipments

§ Has the overall responsibility for record handling and maintenance.

§ Reviewing of records and dealing with monitored data

§ Organizing internal audit for checking the data recorded

§ Has the overall responsibility for closing project non-conformances and implementing

corrective actions before the verification

Plant General Manager

Manager (Operations)

Plant Shift Charge Engineers

Shift Engineers

Operators

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 54 3. Plant Shift Charge Engineer will have the following responsibilities:

§ Supervising and training the operators and maintaining training records.

§ Has the overall responsibility of monitoring measurements and reporting

§ Will assist the Manager (Operations) in record handling, records checks and review and

during internal audit and check the data recorded by the Operators in the individual sections as

described in Section B7.1.

4. The Operator would collect and record appropriate data of the project activity represented in the

monitoring tables of Section B 7.1 based on the monitoring frequency and as per the instructions of his

seniors.

The Monitoring and Verification (M&V) procedures:

§ define a project-specific standard (baseline of historical emissions) against which the project’s

performance (i.e. GHG reductions) and conformance with all relevant criteria will be

monitored and verified.

§ It includes developing suitable data collection methods and data interpretation techniques for

monitoring and verification of GHG emissions.

§ It also allows scope for review, scrutinize and benchmark all this information against reports

pertaining to M & V protocols.

The M&V protocol provides a range of data measurement, estimation and collection

options/techniques in each case indicating preferred options consistent with good practices to allow

project managers and operational staff, auditors, and verifiers to apply the most practical and cost-

effective measurement approaches to the project. The aim is to enable this project have a clear,

credible, and accurate set of monitoring, evaluation and verification procedures. The purpose of these

procedures would be to direct and support continuous monitoring of project performance/key project

indicators to determine project outcomes, greenhouse gas (GHG) emission reductions.

The instrumentation system installed for the project is equipped with shift-wise recording and feedback

facility with desired level of accuracy. The accuracy of measurement can be ensured by the timely

calibration.

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