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

CDM Executive Board CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. B. C. D. E. General description of the small scale project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information

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CDM Executive Board Revision history of this document

Version Number 01 02

Date 21 January 2003 8 July 2005

Description and reason of revision Initial adoption The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM.

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22 December 2006

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SECTION A. General description of small-scale project activity

A.1

Title of the small-scale project activity:

>> Grid connected 3MWp Solar PV power plant at Raichur District of Karnataka State, India Version 02, 13/09/2011

A.2.

Description of the small-scale project activity:

>> The proposed CDM project activity is demonstration project undertaken by Karnataka Power Corporation Limited (Project Participant) and involves installation and operation of a green field, grid connected 3MWp capacity solar photovoltaic (PV) power plant at Yapaladinni village of Raichur District in Karnataka State. The generated electricity will be sold to the Gulbarga Electricity Supply Company (GESCOM) which forms part of Southern regional grid. The Project Participant has a long term Power Purchase Agreement (PPA) contract with Gulbarga Electricity Supply Company (GESCOM). The installation of solar photovoltaic power plant will displace equivalent amount of electricity generation in the regional grid, which is predominantly fossil fuel based, which would result in the emission reductions of the greenhouse gases. The project is expected to generate approximately 4468 MWh electricity per annum. The project will result in emission reductions of 4,096 tCO2e per annum. The project activity is a demonstration project which involves the installation of a new grid-connected renewable power plant. Therefore, As per AMS-ID, the baseline scenario is defined as: The electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources into the grid. The power sector in India including the Southern region largely comprises thermal power stations. In the absence of the project activity equivalent amount of electricity would have been generated from the existing grid connected power plants and planned capacity additions which are also largely fossil fuel based. The project has also been accorded Host country approval from the National Clean Development Authority, Ministry of Environment and Forests (MoEF), Government of India (HCA Letter No: 4/10/2010-CCC, Dated 12 Aug 2010). Contribution of project activity to sustainable development The project contributes to the general well being of the region and is in line with the sustainable development policies of the host country Socio- Economic: The project activity during construction would generate employment in the project vicinity; The project activity will result in direct and indirect employment opportunities for local persons towards installation, operation and maintenance of the proposed project activity. The proposed project activity will result in increased business opportunities for local contractors and suppliers during the various phases. Has a high explicability potential and can therefore promote technological self reliance in India. Increases energy services in a country which faces considerable power outages.

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Environmental Benefits: The proposed project activity is environmental friendly and the operation of this power plant does not lead to any form of pollution (Air, Land, Noise and Water) The project activity does not have any impact on the local flora & fauna; The project activity will result in CO2 emission reduction. The operation of the project activity will contribute towards the global goal of mitigating the climate change effects; Technological Benefits: The project activity is a demonstration project, which applies Solar Photovoltaic technology to generate electricity which is not so widely used technologies in the region to generate power. The success of this project activity would enable other project promoters to replicate similar projects across the region (Karnataka State).

A.3.

Project participants:

>> Name of the Party involved (*) ((host) indicates a host party) India (Host)

Private and/or public entity(ies) Kindly indicate if the Party involved project participants (*) (as wishes to be considered as project applicable) participant (Yes/No) No Public Entity: Karnataka Power Corporation Limited (KPCL) (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party (ies) involved is required.

A.4.

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

>> A.4.1.1. >> India A.4.1.2. Region/State/Province etc.: Host Party(ies):

>> Yapaladinni village in Raichur District in Karnataka State, India A.4.1.3. >> Yapaladinni village A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity : >> The project is located at Yapaladinni village with survey no. 338, which is in Raichur district which is a part of Karnataka state, India. Yapaladinni is located at a distance of 21 kms from Raichur town. Raichur and is around 400 kms north of Bangalore city, the state capital and is well connected by rail City/Town/Community etc:

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CDM Executive Board and road. The nearest airport is Hyderabad International Airport which is 160 kms away. Raichur has a railway station and is connected to national highway (NH 13) by a major road. The geographical coordinates of the site where the power plant is located are stated below: Village / Town Yapaladinni village Latitude 16 14' 51 Longitude 77 26' 35

Raichur District

Location of the plant

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A.4.2. Type and category (ies) and technology/measure of the small-scale project activity:
>> The proposed CDM project activity will generate power using solar energy, which is a renewable source of energy. The proposed CDM project activity qualifies for the simplified modalities and procedures for the small scale CDM project activities as the electricity generation capacity of this project is 3MW, which is less than the maximum qualifying capacity of 15 MW. The proposed CDM project activity utilizes the solar energy potential for power generation and exports the generated electricity to Southern grid in India. As per the Appendix B of the simplified modalities and procedures for small-scale CDM project activities, the project activity proposes to apply following project type and categories: Sectoral Scope: 01 Project Type Energy Industries (renewable/non-renewable) Project Category: I.D., Grid connected renewable electricity generation, Version 17 The technical details of the proposed solar PV system are summarized below: No. Parameter Specifications I Solar PV Plant 1 Capacity proposed 3 MW 2 Type of SPV Module S6-60, Mono/multi crystalline 3 Rating of SPV Module 225 W/240 Wp 4 PCU (Inverters) 250 kW 6 Array rating 250 kW 7 HT Transformer and switchgear for evacuation 1.25MVA for each MW 8 Number of arrays 208 9 Area required 15 acres for 3MW 10 Annual energy generation 4.5 5.0 Million units II PCU (Inverters) Input data 1 Max PV power 250 kWp 2 DC Voltage range MPPT 450 -820 V 3 Max permissible DC Voltage 900 V 4 Max permissible DC Current 591 A Output data 5 Nominal AC power 250 kW 6 Operating voltage grid 20% to 15% 400 V/270 V 7 Utility type 4 wire 8 Operating frequency grid 50 Hz + or 3% 9 Voltage ripple PV voltage < 3% 10 Phase shift 0.99 of nominal power 11 Efficiency 93% and above 11KV Switchgear Cubicle for Grid Connection System Particulars 1 Normal System Voltage 11kV 2 Corresponding Highest System Voltage 12kV 3 Frequency 50 Hz (+3% - 5%) 4 Number of Phases 3 5 Neutral Earthing As per standards

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CDM Executive Board 6 7 8 Rated Short Circuit Class (indoor/outdoor) Switchgear As per standards Outdoor Draw-out type

A.4.3 Estimated amount of emission reductions over the chosen crediting period: >> The Project Participant has chosen the renewable crediting period of 7 years. The estimated amount of emission reductions during the first seven-year crediting period is shown in table below:
Years Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total estimated reductions (tonnes of CO2 e) Total number of crediting years Annual average over the crediting period of estimated reductions (tonnes of CO2 e) Annual estimation of emission reductions in tonnes of CO2 e 4,099 4,099 4,099 4,099 4,099 4,099 4,099 28,693 7 4,099

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

>> The Project Participant wishes to confirm that there is no Official Development Agency (ODA) funding availed or available for this project activity.

A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity:
>> In accordance with Appendix C of the Simplified Modalities and Procedures for Small-Scale CDM project activities Determining the occurrence of debundling, it is confirmed that this project activity is not a debundled component of a larger CDM project: No other CDM activity has been undertaken by the project participant, which is in the same project category and whose boundary is within 1 km of the project boundary of this project activity at the closest point.The participant of the proposed project has not applied to register another small scale CDM project activity within 1 KM of the proposed project boundary. Thus, the project is not a debundled component of another large scale project activity.

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SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: >> Title: AMS-ID - Grid connected renewable electricity generation. URL: http://cdm.unfccc.int/methodologies/DB/RSCTZ8SKT4F7N1CFDXCSA7BDQ7FU1X Tools Used: Tool to calculate the emission factor for an electricity system, Version 02.2.0 URL: http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.2.0.pdf B.2 Justification of the choice of the project category: >> The Project activity meets all applicability condition of AMS I.D., as described below: Project activity in accordance with the applicability criteria This methodology comprises renewable energy Applicable and Fulfilled generation units, such as photovoltaic, hydro, The project is renewable energy generation tidal/wave, wind, geothermal and renewable biomass: project (Solar photovoltaic) supplying (a) Supplying electricity to a national or a regional electricity to a regional grid grid; or (b) Supplying electricity to an identified consumer facility via national/regional grid through a contractual arrangement such as wheeling. This methodology is applicable to project activities Applicable and Fulfilled that (a) install a new power plant at a site where there The project activity is green- field project, was no renewable energy power plant operating prior which involves the installation of solar to the implementation of the project activity photovoltaic plant at a site where there was (Greenfield plant); (b) involve a capacity addition; (c) no renewable energy power plant operating involve a retrofit of (an) existing plant(s); or (d) prior to implementation of project. involve a replacement of (an) existing plant(s). Not applicable Hydro power plants with reservoirs that satisfy at least The project activity is not a Hydro Power one of the following conditions are eligible to apply plant this methodology: The project activity is implemented in an existing reservoir with no change in the volume of reservoir; The project activity is implemented in an existing reservoir, where the volume of reservoir is increased and the power density of the project activity, as per definitions given in the Project Emissions section, is greater than 4 W/m2; The project activity results in new reservoirs and the power density of the power plant, as per definitions given in the Project Emissions section, is greater than 4 W/m2. Methodology applicability criteria

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CDM Executive Board If the new unit has both renewable and non-renewable components (e.g., a wind/diesel unit), the eligibility limit of 15 MW for a small-scale CDM project activity applies only to the renewable component. If the new unit co-fires fossil fuel, the capacity of the entire unit shall not exceed the limit of 15 MW. Not applicable The project does not involve use of any fossil fuels.

Combined heat and power (co-generation) systems are Not applicable not eligible under this category. The project activity is not a Combined heat and power plant In the case of project activities that involve the addition of renewable energy generation units at an existing renewable power generation facility, the added capacity of the units added by the project should be lower than 15 MW and should be physically distinct from the existing units. In the case of retrofit or replacement, to qualify as a small-scale project, the total output of the retrofitted or replacement unit shall not exceed the limit of 15 MW. Not applicable The project activity is Greenfield and there is no existing power generation facility at the site.

Not applicable Project activity is neither retrofit nor modification of existing facility. The installed capacity of the project will be 3MWp which is lesser than the limit of 15 MW Thus the project fulfils all the applicability criteria for the methodology and hence the same is applied to the project.

B.3. Description of the project boundary: >> As per Paragraph 9, AMS-I.D, Version 17 The spatial extent of the project boundary includes the project power plant and all power plants connected physically to the electricity system that the CDM project power plant is connected to. Hence, the spatial extent of the project boundary includes the project site and all the power plants physically connected to the electricity system of Southern Regional grid of India.

Measuring Point: Energy Meters

Project Boundary

Sub- Station Regional Grid End Users

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B.4. Description of baseline and its development: >> The project activity is the installation of a new grid-connected renewable power plant. Therefore, As per AMS-ID, the baseline scenario is defined as: The electricity delivered to the grid by the project activity would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources into the grid. The power sector in India including the Southern region largely comprises thermal power stations. In the absence of the project activity equivalent amount of electricity would have been generated from the existing grid connected power plants and planned capacity additions which are also largely fossil fuel based. As per Paragraph 11, AMS I.D, The baseline emissions are the product of electrical energy baseline of electricity produced by the renewable generating unit multiplied by the grid emission Factor As per Paragraph 12, AMS I.D, The emission factor can be calculated in a transparent and conservative manner as follows: (a) A combined margin (CM), consisting of the combination of operating margin (OM) and build margin (BM) according to the procedures prescribed in the Tool to calculate the Emission Factor for an electricity system.; OR (b) The weighted average emissions (in t CO2/MWh) of the current generation mix. The data of the year in which project generation occurs must be used. For the purpose of this project, Option (a) has been used to determine the grid emission factor. As per the Tool to calculate the emission factor for an electricity system (Version 02)1, the combined margin emissions factor is calculated as follows: EFgrid,CM,y = EFgrid,OM,y X

wOM

+ EFgrid,BM,y X

wBM

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

wBM = Weighting of build margin emission factors (%)

The tool specifies that for solar power generation project activities: the first crediting period and for subsequent crediting periods.

wOM = 0.75 and wBM =0.25 for

Operating Margin (EFgrid,OM,y) The tool specifies that if the ex antes option is chosen, for grid power plants, use a 3-year generationweighted average, based on the most recent data available. Hence, Central Electricity Authority, under the Ministry of Power, Government of India2, has estimated the operating margin of the South Grid as follows:
1 2

http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.pdf

These values are taken from version 6.0, the most recent available data published by the Central Electricity Authority in March 2011 (CEA published data. Version 6.0, http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm)

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Simple Operating Margin (tCO2/MWh) (incl. Imports)(1) (2) 2004-05 2005-06 2006-07 2007-08 NEWNE 1.03 1.02 1.01 1.00 South 1.00 1.01 1.00 0.99 India 1.02 1.02 1.01 1.00

2008-09 1.01 0.97 1.01

2009-10 0.98 0.94 0.98

Hence the 3-year generation-weighted average is 0.9690 tCO2e/MWh Build Margin (EFgrid,BM,y) The tool specifies that the build margin emissions factor is the generation-weighted average emission factor. Central Electricity Authority, under the Ministry of Power, Government of India, has estimated the operating margin of the South Grid as follows: Build Margin (tCO2/MWh) (not adjusted for imports) 2004-05 2005-06 2006-07 NEWNE 0.70 0.67 0.63 South 0.70 0.71 0.70 India 0.70 0.68 0.65

2007-08 0.60 0.71 0.63

2008-09 0.68 0.82 0.71

2009-10 0.81 0.76 0.80

Weighted Average Combined Margin (EFgrid, CM,y) Based on the Tool to calculate the emission factor for an electricity system, the default values for Wind and solar power generation project activities: wOM = 0.75 and wBM = 0.25 have been applied to derive the Combined Margin. tCO2e/MWh Operating Margin (Average of last 3 years) 0.9690 Build Margin 0.7633 Combined Margin (EFgrid,OM,y X wOM + EFgrid,BM,y X wBM ) 0.9176 B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: >> UNFCCC simplified modalities seek to establish additionality of the project activity as per Attachment A to Appendix B, which lists various barriers, out of which, at least one barrier should be identified due to which the project would not have occurred any way. The additionality for this project activity is established by conducting investment analysis. Investment Barrier: As per Paragraph 16, Annex 58 EB 51, If the alternative to the project activity is the supply of electricity from a grid, this is not to be considered as an investment and a benchmark approach is considered appropriate. Hence, the project proponent has applied benchmark analysis to demonstrate investment barrier. For the purpose of carrying out benchmark analysis, the financial indicator chosen is the Project IRR. The selected financial indicator is the most appropriate and widely used financial indicators by banks, financial institutions and project developers for decision-making context. As per guidance 12 of Annex 58, EB 51, Local commercial lending rates or weighted average costs of capital (WACC) are appropriate benchmarks for a project IRR. The project developer has chosen RBI Published prime lending rate, published by for five major banks, as the benchmark. The value

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CDM Executive Board of PLR range was 12.75% to 13.25%3 (July 2008) during the project conceptualization stage4. The PP derived the benchmark by considering the lowest BPLR 12.75%. The key parameters and assumptions considered for the IRR estimations are as follows: S.N 1 2 3 Parameter Total Installed Capacity Project Cost Value 3 MW Rs. 621 Million Rs 4.38/kWh Source Detailed Project Report Detailed Project Report HERC order on fixation of tariff for power through solar energy, dated 25 April 20085 HERC order on fixation of tariff for power through solar energy, dated 25 April 2008 HERC order on fixation of tariff for power through solar energy, dated 25 April 2008 KREDL letter Detailed Project Report Detailed Project Report Detailed Project Report RBI PLR As per Electricity Act 1948 As per Income tax act

Grid Tariff*

O&M Cost

0.5% of capital cost 1.5%, second year on wards 17% 365 24 25 12.75% 3.60% 30.90%

5 6 8 9 10 11 12 13

Escalation on O & M PLF Total operating days Operating Hours Project Life (in Years) Interest on Debt Depreciation (SLM Method, 90% Dep in 25 yrs) Corporate Tax

Grid Tariff: The base tariff has been used in the calculation, though the Solar PV project activity are eligible to claim Generation Based Incentive (GBI), the PP has opted for accelerated depreciation under section 32 of the Income Tax Act 1961, hence as per the MNRE eligibility criteria for GBI the project activity would not be eligible to claim the GBI. On the basis of above assumption, Project IRR was found to be -9.11% . The project activity as mentioned above is a demonstration project promoted by Government of Karnataka. The Project Participant is taking the risk of continuing with the project activity even with a negative IRR with main aim of achieving the objective of penetration of Solar PV technology in the state of Karnataka. CDM revenues would boost the confidence of the project participants and also the margin of negative IRR would reduce to an extent. Sensitivity analysis As per Paragraph 17 of Annex 58, EB 51, Only variables, including the initial investment cost, that constitute more than 20% of either total project costs or total project revenues should be subjected to reasonable variation. Accordingly four parameters were chosen for conducting sensitivity analysis.

http://rbidocs.rbi.org.in/rdocs/Wss/PDFs/86924.pdf KPCL Board approved the demonstration solar projects on 28/06/2008 allotting Rs. 750 cr per each project, based on the proposal submitted by BHEL for a similar project.
4 5

Available at the time of decision making, KERC had not defined tariff for Solar PV Projects.

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CDM Executive Board All the parameters chosen substantially influence the total project costs or total project revenues associated with the project activity. 1. Plant Load Factor (PLF). 2. O&M Cost 3. Capital Cost 4. Grid Tariff These variables have been subjected to 10% variation on either side. A detailed discussion on sensitivity analysis is given below. Capital Cost PLF O&M Cost Grid Tariff 10% -9.88% -8.33% -9.28% -8.33% -10% -8.25% -9.96% -8.94% -9.96% As evident from the sensitivity analysis done, the project activity even with varying conditions the IRR works out to be negative. Occurrences of the above situations are unrealistic atleast in the near future. Thus, it is clear that the proposed project is not a financially viable project to KPCL. However Karnataka Government has entrusted the responsibility of developing the Solar PV plants in the State to KPCL for the following reasons: 1. To demonstrate the technological feasibility of large scale grid connected solar PV in the country. 2. To demonstrate the potential of solar PV in the State so that investors are aware on the technology and develop interest to implement similar plants 3. As a demo project to train its employees/investors on the solar PV Envisaging that the installation of Solar PV plants cannot even met the benchmark PLR, KPCL has considered CDM revenue to recover its operational cost and also cost involved in training its employees on the technology. CDM consideration evidence: As the start date of the project activity (i.e. 21/12/2009, Date of EPC contract) is after the date of 02 August 2008, therefore in line with Para 2, Annex 46, EB41, the project proponents have sent intimation letter to UNFCCC about the project activity and intentions of the project proponent to apply for registration under the Clean Development Mechanism of UNFCCC. The same is also listed on UNFCCC web site. As per UNFCCC, the intimation letter was received by them on 21/11/20096. Also, as per Para 6 (b), Annex 46, EB41, The project participant must indicate, by means of reliable evidence, that continuing and real actions were taken to secure CDM status for the project in parallel with its implementation. Given below is the chronology of events demonstrating that the project proponent had considered CDM for the project activity and had taken real and continuing actions to secure CDM status. 1. Board Decision to Implement the project : 28/06/2008 2. Tender for EPC contract (CDM Section included) : 27/07/2009 3. Appointment of CDM consultant : 07/11/2009 4. Intimation to UNFCCC : 21/11/2009 5. Appoint of EPC contractor : 21/12/2009 (Start date) 6. Meeting with NCDMA for HCA : 07/07/2010
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http://cdm.unfccc.int/Projects/PriorCDM/notifications/index_html

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CDM Executive Board 7. HCA granted 8. Appointment of DOE 9. Date of project commissioning: : 12/08/2010 : 28/02/2011 : 30/09/2011 (Tentative)

As the gap between any activities is less then 2 yrs, In line with Para 8 (a), Annex 46, EB41, it can be concluded that continuing and real actions were taken to secure CDM status for the project activity. B.6.

Emission reductions:

B.6.1. Explanation of methodological choices: >> Baseline emissions As per AMSID, Version 17, Paragraph 11, the baseline emissions are the product of electrical energy baseline EG BL , y expressed in MWh of electricity produced by the renewable generating unit multiplied by the grid emission factor.

BE y = EGBL, y * EFCO2 , grid , y

BE
y

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

EG BL, y
EFCO 2 , grid , y
Calculation of

EF CO2, grid, y

As per the Tool to calculate the emission factor for an electricity system (Version 02)7, the combined margin emissions factor is calculated as follows: EFgrid,CM,y = EFgrid,OM,y X wOM + EFgrid,BM,y X wBM Where: EFgrid,BM,y = Build margin CO2 emission factor for the year y (tCO2/MWh) EFgrid,OM,y = Operating margin CO2 emission factor for the year y (tCO2/MWh) wOM = Weighting of operating margin emission factors (%) wBM = Weighting of build margin emission factors (%) The tool specifies that for solar power generation project activities: wOM = 0.75 and wBM =0.25 for the first crediting period and for subsequent crediting periods. Operating Margin (EFgrid,OM,y) The tool specifies that if the ex antes option is chosen, for grid power plants, use a 3-year generationweighted average, based on the most recent data available. Hence, Central Electricity Authority, under

http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.pdf

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CDM Executive Board the Ministry of Power, Government of India8, has estimated the operating margin of the South Grid as follows: Simple Operating Margin (tCO2/MWh) (incl. Imports) (1) (2) 2004-05 2005-06 2006-07 2007-08 NEWNE 1.03 1.02 1.01 1.00 South 1.00 1.01 1.00 0.99 India 1.02 1.02 1.01 1.00

2008-09 1.01 0.97 1.01

2009-10 0.98 0.94 0.98

Hence the 3-year generation-weighted average comes to 0.9690 tCO2e/MWh Build Margin (EFgrid,BM,y) The tool specifies that the build margin emissions factor is the generation-weighted average emission factor. Central Electricity Authority, under the Ministry of Power, Government of India, has estimated the operating margin of the South Grid as follows: Build Margin (tCO2/MWh) (not adjusted for imports) 2004-05 2005-06 2006-07 NEWNE 0.70 0.67 0.63 South 0.70 0.71 0.70 India 0.70 0.68 0.65

2007-08 0.60 0.71 0.63

2008-09 0.68 0.82 0.71

2009-10 0.81 0.76 0.80

Combined Margin (EFgrid,CM,y) Therefore, we can calculate the combined margin emission factor as, tCO2e/MWh 0.9690 0.7633 0.9176

Operating Margin (Average of last 3 years) Build Margin Combined Margin (EFgrid,OM,y X wOM + EFgrid,BM,y X wBM )

Project Emission (PEy) : As per Paragraph 19 of the methodology, Project Emissions are to be considered only in case of geothermal and hydro projects. In the project activity there is no emissions resulting due to the project. Hence, Project Emission (PEy) = 0 Leakage (LEy) According to the methodology, leakage is to be considered only if the energy generating equipment is transferred from another activity or if the existing equipment is transferred to another activity. There is no equipment transfer involved in the project activity and hence, Leakage (LEy) = 0 Emissions Reductions (ERy) = Baseline Emissions (BEy) Project Emissions (PEy) Leakage (LEy) B.6.2. Data and parameters that are available at validation: >> EFGrid,OM,y Data / Parameter:
These values are taken from version 6.0, the most recent available data published by the Central Electricity Authority in March 2011 (CEA published data. Version 6.0, http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm)
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CDM Executive Board Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : tCO2/MWh Operating Margin emission factor for the South grid CEA published data. CO2 Baseline Database (Version 06) 0.969 (ex-ante approach) OM has been calculated as per ACM0002 with 3 years vintage data (200708, 2008-09 and 2009-10) and option of ex ante calculation based on Simple Operating Margin Method.
2007-08 Operating Margin (tCO2e/MWh) Generation (GWh) Weighted Average OM 0.9999 496119 2008-09 0.9700 510693 0.96902464 2009-10 0.9400 544915

Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

The value has been fixed ex-ante for the entire crediting period EFGrid,BM,y tCO2/MWh Build Margin emission factor for the South grid CEA published data. CO2 Baseline Database (Version 06) 0.7633 (ex-ante approach) The data is publicly available and is conservative and transparent.

The value has been fixed ex-ante for the first crediting period. For the second crediting period, the build margin emission factor would be updated based on the most recent information available on units already built at the time of submission of the request for renewal of the crediting period. For the third crediting period, the build margin emission factor calculated for the second crediting period would be used.

Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

EF CO 2 , grid , y
tCO2/MWh Combined Margin CO2 emission factor for the South grid CEA published data. CO2 Baseline Database (Version 06) 0.9176 (ex-ante approach) CM has been calculated as per ACM0002 with 3 years vintage data and option of ex ante calculation based on 75% of OM and 25% of BM values approach.

The value has been fixed ex-ante for the entire crediting period

B.6.3 Ex-ante calculation of emission reductions: >> Energy Generation Installed Capacity MW 3 Operating Hours Hr per Annum 8760 PLF % 17%

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CDM Executive Board Gross Generation Auxiallry Consumption Net Generation MWh % MWh 4468 0 4468

Formula used to calculate the net emission reduction for the project activity is ERy = BEy PEy As explained in section B.6.1 PEy are zero. There is no GHG emission within the project boundary. So the above equation is simplified to ERy = BEy Baseline Emission (BEy) Baseline Emission are calculated by multiplying the net quantity of electricity supplied by this project activity (EGY) with the CO2 baseline emission factor for the electricity displaced due to the project (EFCO2 elec) as follows: = EGBL,y* EFCO2 BEy Where: EFCO2elec , y = 0.9176 tCO2/MWh EGBL,y = 4468 MWh/year Putting EG and EF in above formula ERy = 4,099 tCO2/year

The total Emission Reduction (ER) from this project activity is 4,096 tCO2/year

B.6.4 >>

Summary of the ex-ante estimation of emission reductions: Estimation of Baseline emission (tCO2e) 4,099 4,099 4,099 4,099 4,099 4,099 4,099 28,693 Estimati on of Leakages (tCO2e) 0 0 0 0 0 0 0 0 Estimation of Project emission (tCO2e) 0 0 0 0 0 0 0 0 Estimation of project activity emission reductions (tCO2e) 4,099 4,099 4,099 4,099 4,099 4,099 4,099 28,693

Year

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total B.7

Application of a monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored: >> Data / Parameter: EG BL , y Data unit: Description: MWh/ Yr Net quantity of electricity exported to the grid by the project activity during the year y. The net electricity generation would be a

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CDM Executive Board calculated value. Joint meter statements available at project site and invoice to GESCOM. 4,468

Source of data to be used:

Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

QA/QC procedures to be applied:

Any comment:

Measurement method: The net electricity exported to grid is calculated as a difference in the total electricity exported to the grid and total import from the grid. Monitoring: Electrical Energy Meters which are electronic trivector meters Data type: Measured & Calculated Archiving: Paper & Electronic Recording Frequency: Continuous Monitoring, Continuous Measurement and at least monthly recording. Responsibility: The Site Manager and Site Supervisor shall be responsible for the regular recording of data. He is supposed to send consolidated monthly data to Executive Engineer (GSW) Bangalore Calibration Frequency: The meters shall be calibrated once in 3 years. Main & Check meters will be installed at the evacuation point in line with the CEA metering regulations9. All the metering equipment shall be operated, tested and maintained in accordance with the Regulations (Installation and Operation of Meters) 2006 Net electricity generated by project activity will be crosschecked with the electricity invoiced for sale. This is highly credible and reliable Data shall be archived for the entire crediting period + 2 years thereafter; Refer section B.7.2 for monitoring plan

B.7.2 Description of the monitoring plan: >> As per AMSID, the monitoring of data revolves around the net Quantity of electricity delivered to the grid. Operation & Management Structure Management Technical Director: Chief Engineer (GSW) Responsibility Overall responsibility of compliance with the CDM monitoring plan. 1. Quality assurance of the data/report generated by Executive Engineer. 2. Regularly verifying the monthly energy generation date with energy sales receipt or installed meters reading for identification of any discrepancies in date collection and taking suitable action to rectify them. 3. Responsible for calibration of all the installed meters at least once in a year.

http://www.powermin.nic.in/whats_new/pdf/Metering_Regulations.pdf

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CDM Executive Board 1. Responsibility for monthly and annual report generation. 2. Quality assurance of the data/report s preliminary check of data for any discrepancies. Assistant Engineer/ Responsibility of daily report generation, recording meters reading in log book, and data recording Junior Engineer Executive Engineer Metering System:

EG BL , y Electricity supplied to the grid

Two meters, Main & and bi-directional type, with accuracy of 0.2 class will be installed on out inter-connection. Main meter and check meters are owned by the GESCOM and KPCL respectively. Main meter will used for accounting and billing of electricity. Export and Import of electricity will be measured by both main and check meters and net electricity from project activity computed. Difference between Export and import is deemed as net electricity generated by project activity. Joint reading of project participant and procuring utilities will be taken by the project participant and off purpose. Reading used in invoice will be considered as net electricity generated cross-checking of net electricity generation from project activity

Meter Calibration: Meters will be calibrated once a year to ensure the accuracy of the readings; the error margin should not exceed 0.2%. In case the error margin exceeds the maximum permissible limit of 0.2% then the meter would be replaced immediately. The calibration frequency is a part of the monitoring system. This data is monitored using meters and standard testing equipment, which is regularly, calibrated following standard industry practices. Training The technology supplier will be providing the required training to the site personnel and concerned engineers about daily operation and maintenance aspects of the total project at the time of monitoring of the project activity. The training and maintenance will ensure preventive maintenance and operation control of the total project. Quality assurance and quality control The quality assurance and quality control procedures involve the process of data monitoring, recording, maintaining and archiving, and monitoring equipment calibration. The electricity delivered to and drawn from the grid will be monitored through Gateway meters. The data should be crosschecked against relevant electricity sales receipts and/or records from the grid for quality control. Calibration of Meters & Metering should be implemented according to national standards and rules annually at least. And all the records should be documented and maintained by the project owner for verification. Internal audit procedures: A Quality Assurance procedure will be undertaken every six months. An internal Audit shall be done in order to ensure the quality of the recorded data and also to ensure that all established steps have been properly followed.

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B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) >> Date of completion of the baseline study and monitoring methodology: 01/07/2011 Name of person/entity determining the baseline: Karnataka Power Corporation Limited and their CDM consultants. The contact details of CDM consultant are as follows.

Enzen Global Solutions Private Limited is the CDM consultant and not project participant of the project activity Name Dr. Uma Rajarathnam Title Head-Environment Practice Organization: Enzen Global Solutions Private Limited Street/P.O.Box: 90, Hosur Road, Madiwala City, State, Zip, Country Bangalore-560068, Karnataka, India Telephone: +91 080 67123039 FAX: +91 080 67123002 Mobile +91 9880345888 Email uma.r@enzenglobal.com Website www.enzenglobal.com

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SECTION C. Duration of the project activity / crediting period C.1 Duration of the project activity: C.1.1. Starting date of the project activity: >> 21/12/200910 C.1.2. Expected operational lifetime of the project activity: >> 25 Years 00 Months11 C.2 Choice of the crediting period and related information:

Renewable crediting period has been chosen for the proposed CDM project activity. C.2.1. Renewable crediting period Renewable crediting period has been chosen C.2.1.1. Starting date of the first crediting period: >> 01/01/2012 or Registration at UNFCCC whichever is later. C.2.1.2. >> 7 Years 00 Months C.2.2. Fixed crediting period: Not opted for C.2.2.1. >> Not Applicable C.2.2.2. >> Not Applicable Length: Starting date: Length of the first crediting period:

10
11

Letter of Award for supply of Solar power unit issued to M/s. BHEL As per the Tool to determine the remaining lifetime of equipment (EB50 Annex 15)

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SECTION D. Environmental impacts >> D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: >> Ministry of Environment and Forest i.e. Government of India vide their notification S.O 1533, 14th November 200612, does not require any Environment Impact Assessment (EIA) of solar PV power projects. D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: >> The project does not fall under the purview of the Environmental Impact Assessment (EIA) notification of the Ministry of Environment and Forest, Government of India. Hence the Environmental Impact Assessment study was not conducted by the Project Participant.

12

http://envfor.nic.in/legis/eia/so1533.pdf

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SECTION E. Stakeholders comments >> E.1. Brief description how comments by local stakeholders have been invited and compiled: >> As per the requirements of the CDM, KPCL had organized a formal stakeholder meeting on 22 Jan 2010.The venue, date and time of the meeting were published in a local daily English newspaper (Deccan Herald) dated 01/01/2010. The meeting comprised of 70 attendees. Comments have been compiled and the signatures of all present were taken. The minutes of meeting and evidence of stakeholder notice will be submitted to DOE during validation. E.2. Summary of the comments received: >> Mr. Eeresh, a resident of Yapaladinni village said that the erratic power supply at the region has effected the irrigation practice and said power cut during night effects the study of children at the region. He also said 6hrs supply of power as they are doing now is not enough to meet the irrigation demand. He asked for the clarifications on the following: 1. Whether the power generated by the 3 MW solar PV is only for Yapaladinni village or will it be supplied to others also. 2. Is the power is distributed free of cost to farmers? 3. The feeling of the people is that 3 MW is not enough to meet the present irrigation demand E.3. Report on how due account was taken of any comments received: >> KPCL officials clarified that the SPV project is meant to improve the quality of power at the tail end of the grid. The power generated is connected to the grid and then it is distributed. The power is sold to distribution agencies (GESCOM). This is purely a demonstration project of KPCL and in future KPCL will continue its efforts to generate power using renewable energy which has less impact on the environment. None of the concerns expressed by the stakeholders required an action to be taken by the KPCL.

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CDM Executive Board Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: Karnataka Power Corporation Limited --Sudarshan Complex, 3RD Floor, No.22/23, Sheshadri Road, Bangalore 560 009 India 080 -22258431 080 -22258431 www.karnatakapower.com Chief Engineer Ramesh S EI & TA 080 -22258431 080 -22258431 ceita@karnatakapower.com; ceitakpcl@gmail.com

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CDM Executive Board Annex 2 INFORMATION REGARDING PUBLIC FUNDING There is no public funding invested for this project

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CDM Executive Board Annex 3 BASELINE INFORMATION Source: CEA published data. Version 6.0, (http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm) CENTRAL ELECTRICITY AUTHORITY: CO2 BASELINE DATABASE VERSION 6.0 DATE Mar-11 BASELINE METHODOLOGY ACM0002

Simple Operating Margin (tCO2/MWh) (incl. Imports) (1) (2) 2004-05 2005-06 2006-07 2007-08 NEWNE 1.03 1.02 1.01 1.00 South 1.00 1.01 1.00 0.99 India 1.02 1.02 1.01 1.00 Build Margin (tCO2/MWh) (not adjusted for imports) 2004-05 2005-06 2006-07 NEWNE 0.70 0.67 0.63 South 0.70 0.71 0.70 India 0.70 0.68 0.65 Combined Margin in tCO2/MWh (incl. Imports) (1) (2) 2004-05 2005-06 2006-07 NEWNE 0.87 0.85 0.82 South 0.85 0.86 0.85 India 0.86 0.85 0.83

2008-09 1.01 0.97 1.01

2009-10 0.98 0.94 0.98

2007-08 0.60 0.71 0.63

2008-09 0.68 0.82 0.71

2009-10 0.81 0.76 0.80

2007-08 0.80 0.85 0.81

2008-09 0.84 0.90 0.86

2009-10 0.90 0.85 0.89

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CDM Executive Board Annex 4 MONITORING INFORMATION Refer to section B.7 - - - - -- - - - -

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