Construma - Reneo - Komplett dokumentáció by Arttree Production

Construma 33. Nemzetközi építőipari szakkiállítás társkiállítása, a RENEO II. Nemzetközi megújuló energiák szakkiállítás carbon-neutralizációs dokumentuma

www.arttree.hu

TANÚSÍTVÁNY Szám: OG.00129/2014. CN.

Tanúsítom, hogy a Hungexpo Zrt. (1101 Budapest, Albertirsai út 10.) szervezésében 2014. április 2-6. között megrendezésre kerülő Construma 33. Nemzetközi építőipari szakkiállítás társkiállítása, a RENEO II. Nemzetközi megújuló energiák szakkiállítása a rendezvény szervezése, lebonyolítása valamint a felhasznált nyomtatványok és PR anyagok kiadványok elkészítésével kapcsolatban keletkezett Üvegházhatású gázok (ÜHG) kibocsátását önkéntesen ellentételezte. Ezáltal a rendezvény és az azzal kapcsolatos kiadványok, PR anyagok vonatkozásában karbon-semlegessé vált. A semlegesítést a Chongqing Youyang, kínai (28°58‚1"N 109°8‚51"E) vízerőmű projektből származó VCS minősítésű karbon kreditekkel végezték el. A tanúsítás hatálya alatt jogosultak a carbon-neutral védjegy használatára. A tanúsítás érvényességi ideje: 2014. április 2-től - 2014. április 6-ig hatályos. A következő monitoring esedékessége: 2015. január

Malta, 04. 02. 2014 Oxiglobe Ltd. Vault 14, Level 2 Valletta Waterfront, Floriana, FRN 1914 Malta

Forró Judit director

TANÚSÍTVÁNY Szám: OG.00128/2014. CN.

Tanúsítom, hogy a Hungexpo Zrt. (1101 Budapest, Albertirsai út 10.) a tulajdonában és üzemeltetésében lévő www.construma.hu weboldal szerverének energiafelhasználása során keletkezett Üvegházhatású gázok (ÜHG) kibocsátását önkéntesen ellentételezte. Ezáltal a vállalkozó által üzemeltetett www.construma.hu website karbon-semlegessé vált. A semlegesítést a Chongqing Youyang, kínai (28°58‚1"N 109°8‚51"E) vízerőmű projektből származó VCS minősítésű karbon kreditekkel végezték el. A tanúsítás hatálya alatt jogosultak a carbon-neutral védjegy használatára a weboldalukon. A tanúsítás érvényességi ideje: 2014. február 4-től – 2015. február 4-ig hatályos. A következő monitoring esedékessége: 2015. január

Malta, 04. 02. 2014 Oxiglobe Ltd. Vault 14, Level 2 Valletta Waterfront, Floriana, FRN 1914 Malta

Forró Judit director

TANÚSÍTVÁNY Szám: OG.00127/2014. CN.

Tanúsítom, hogy a Hungexpo Zrt. (1101 Budapest, Albertirsai út 10.) a tulajdonában és üzemeltetésében lévő www.reneo.hu weboldal szerverének energiafelhasználása során keletkezett Üvegházhatású gázok (ÜHG) kibocsátását önkéntesen ellentételezte. Ezáltal a vállalkozó által üzemeltetett www.reneo.hu website karbon-semlegessé vált. A semlegesítést a Chongqing Youyang, kínai (28°58‚1"N 109°8‚51"E) vízerőmű projektből származó VCS minősítésű karbon kreditekkel végezték el. A tanúsítás hatálya alatt jogosultak a carbon-neutral védjegy használatára a weboldalukon. A tanúsítás érvényességi ideje: 2014. február 4-től – 2015. február 4-ig hatályos. A következő monitoring esedékessége: 2015. január

Malta, 04. 02. 2014 Oxiglobe Ltd. Vault 14, Level 2 Valletta Waterfront, Floriana, FRN 1914 Malta

Forró Judit director

DEMETER VENTURE UK LIMITED

RECO ENVIRONMETAL PARTNERS LLP

ISSUANCE DEED OF REPRESENTATION

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THIS DEED OF REPRESENTATION is made on December 18th,2012 BY: (1)

DEMETER VENTURE UK LIMITED locates at St John Street, London, England., and

(2)

RECO Environmetal Partners 5BW,United Kingdom.

LLP,1

Northumberland

Avenue

London,

WC2N

THIS DEED WITNESSES as follows: 1.

INTERPRETATION

1.1

In this Deed: "Accountholder" means any person holding a VCU account with a VCSA Registry; "Approved GHG Program" means a GHG program that has been approved by the VCS Board, through a gap analysis, as a VCS-approved GHG program; "GHG Program" means a formal or organized program, scheme or arrangement for the recognition of activities leading to Reductions, or the crediting or issuance of instruments representing, or acknowledging, Reductions; "Issuance Representor" is each party to this Deed, as set out at the start of this Deed; each Issuance Representor being one or more of: (i) a Project Proponent (ii) any entity to whom a Project Proponent has assigned all of its rights to the Project's Reductions for the entire Project Crediting Period, or (iii) any entity which can demonstrate rights (either solely or jointly with the other Issuance Representors) in respect of the entire volume of a Project's Reductions, where such Reductions have been independently verified in a Verification Report issued on or before 30 September 2009, by an organisation approved by the VCSA to act as Validation/Verification Body in respect of verification of Projects; "Monitoring Report" means the document (Report no BVC/China-VCS/7072/2012, dated 2411-2012) that records data to allow the assessment of the Reductions generated by the Project during a given time period in accordance with the monitoring plan set out in the Project Description, covering the Reductions generated from [12-21-2008 to 12-20-2010]; "Project" means Chongqing Youyang County Youchou Hydropower Station Project; "Project Crediting Period" means the time period for which Reductions generated by the project are eligible for issuance as VCUs, the rules with respect to the length of such time period and the renewal of the project crediting period being set out in the VCS Standard; "Project Description" means the document that describes the Projectâ&#x20AC;&#x2122;s Reduction activities and that uses either the VCS Project Description Template or the project description template specified by the relevant approved GHG program; "Project Documents" means the documents required to register the project and/or issue VCUs, as set out in VCS document Registration and Issuance Process; "Project Proponent" means the individual or organization that has overall control and responsibility for the project, or an individual or organization that together with others, each of which is also a project proponent, has overall control or responsibility for the project;

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"Reduction" means a reduction or removal of one (1) metric tonne of CO2 equivalent caused by the activities of a Project during the Project Crediting Period; "Validation/Verification Body" means an organization approved by the VCSA to act as a validation/verification body in respect of providing validation and/or verification services in accordance with the VCS Rules; "VCSA" means the Verified Carbon Standard Association; "VCS Project Database" means the central project database that records all projects registered and VCUs issued under the VCS Program, and provides public access to all project and VCU information, including retirement and tracking of the AFOLU pooled buffer account; "VCS Registry" means a registry operating within the VCS Registry System and holding a current registry approval from the VCSA, which interacts with the VCS Project Database to issue VCUs, and which holds, transfers (to and from other VCS Registries), retires, suspends, cancels and provides custodial services for VCUs on behalf of its Accountholders; "VCS Registry System" means the system established by the VCS Program, comprised of the VCS Project Database and the VCS Registries, to provide project proponents with the ability to register projects, and issue, transfer, hold and retire VCUs; "VCS Rules" means the rules and requirements set out in the VCS Program Guide, VCS Standard and the other VCS Program documents, as such rules and requirements may be updated from time to time; "Verification Period" means the time period ([12-21-2008 to 12-20-2010]) specified in a verification report during which the Reductions were generated and have been verified by a Validation/Verification Body; "Verification Report" means the written report of the verification made by the Validation/ Verification Body in accordance with the VCS Rules (Report no BVC/China-VCS/7072/2012., dated [06-12-2012], covering the Reductions generated from [12-21-2008 to 12-20-2010]); and "Verified Carbon Unit" (VCU) means a unit issued by, and held in a VCS Registry representing the right of an Accountholder in whose account the unit is recorded to claim the achievement of a Reduction in an amount of one (1) metric tonne of CO2 equivalent that has been verified by a validation/verification body in accordance with the VCS Rules. Recordation of a VCU in the account of the holder at a VCS Registry is prima facie evidence of that holder's entitlement to that VCU. 1.2

Documents referred to in this Deed but not defined shall be the VCS documents to which the relevant definition relates:

REPRESENTATIONS, ACKNOWLEDMENTS AND AGREEMENTS

2.1

Each Issuance Representor complies with the definition of an "Issuance Representor", as set out in Clause 1 of this Deed, in relation to the Project.

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2.2

Each and every Issuance Representor hereby represents and warrants that: 2.2.1

The Monitoring Report and any other Project Documents for which the Issuance Representors are responsible and that the Issuance Representors are supplying to a VCS Registry are true and accurate in all material respects;

2.2.2

The Issuance Representors collectively have the right to all and any Reductions generated by the Project during the Verification Period; and

2.2.3

The Issuance Representors have not submitted, sought, requested or received any recognition of the Reductions generated by the Project during the Verification Period and for which they are requesting VCU issuance from any GHG Program other than under the VCS Program.

2.3

Each Issuance Representor hereby acknowledges and agrees that if, as a result of their negligence or breach of this Deed or the VCS Rules (including without limitation any failure to provide true and accurate information or data), any quantity of VCUs is issued in respect of the Project other than in accordance with the VCS Rules, they shall replace such improperly issued VCUs by transferring an equal quantity of VCUs into the account in the VCS Registry specified in writing by the VCSA or its nominee and when required under such notification. Any such replacement will not constitute a waiver by the VCSA of its rights under the VCS Rules.

2.4

Each Issuance Representor hereby acknowledges that a VCS Registry shall hold this Deed for the benefit of Accountholders holding VCUs relating to the Project at any given time.

LIABILITY Each Issuance Representor acknowledges and agrees that the Issuance Representors are jointly and severally liable for the representations, warranties and obligations expressed to be assumed by the Issuance Representors in this Deed.

GOVERNING LAW AND JURISDICTION This Deed and all non-contractual obligations arising out of or in connection with it are governed by English law, and the English courts shall have exclusive jurisdiction to settle any dispute arising from or connected with this Deed including a dispute regarding the existence, validity or termination of this Deed or the consequences of its nullity.

COUNTERPARTS This Deed may be executed in any number of counterparts, each of which when executed and delivered is an original and all of which together evidence the same deed.

DELIVERY This Deed is delivered on the date written at the start of the Deed.

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MONITORING REPORT: VCS Version 3

CHONGQING YOUYANG COUNTY YOUCHOU HYDROPOWER STATION PROJECT Document Prepared By Beijing Cronus Technology Consultancy Centre

Project Title Version Report ID Date of Issue Project ID Monitoring Period Prepared By Contact

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Chongqing Youyang County Youchou Hydropower Station Project 3 N/A 24-11-2012 N/A 21-12-2008 to 20-12-2010 Beijing Cronus Technology Consultancy Centre Tel: +86 10 62258766

MONITORING REPORT: VCS Version 3 Table of Contents CONTENTS 1 Project Details ..................................................................................................................................... 3 1.1 Summary Description of Project.................................................................................................... 3 1.2

Sectoral Scope and Project Type.................................................................................................. 3

1.3

Project Proponent ......................................................................................................................... 3

1.4

Other Entities Involved in the Project ............................................................................................ 3

1.5

Project Start Date .......................................................................................................................... 3

1.6

Project Crediting Period ................................................................................................................ 3

1.7

Project Location............................................................................................................................. 4

1.8

Title and Reference of Methodology ............................................................................................. 4

2.1

Implementation Status......................................................................................................................... 4 Implementation Status of the Project Activity ................................................................................ 4

2.2

Deviations from the Monitoring Plan ............................................................................................. 4

2.3

Grouped Project ............................................................................................................................ 4

3.1

Data and Parameters .......................................................................................................................... 5 Data and Parameters Available at Validation ............................................................................... 5

3.2

Data and Parameters Monitored ................................................................................................... 5

3.3

Description of the Monitoring Plan ................................................................................................ 9

4.1

Quantification of GHG Emission Reductions and Removals ............................................................ 12 Baseline Emissions ..................................................................................................................... 13

4.2

Project Emissions ........................................................................................................................ 13

4.3

Leakage....................................................................................................................................... 13

4.4

Summary of GHG Emission Reductions and Removals ............................................................. 13

Additional Information........................................................................................................................ 14

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MONITORING REPORT: VCS Version 3 1

PROJECT DETAILS

1.1

Summary Description of Project

Chongqing Youyang County Youchou Hydropower Station Project (hereafter referred to as “the Project”) is a grid-connected hydropower plant with an accumulation reservoir with a surface area of 7.7km2. The Project reduces greenhouse gas emissions by generating carbon neutral power that displaces carbon intensive power from Central China Power Grid (hereafter referred to as “the grid”). The total installed capacity of the Project is 120 MW (2×60MW).The Project uses hydro power generation technology for electricity generation and transmission.

1.2

Sectoral Scope and Project Type

The Project falls in the sectoral scope 1: energy industries (renewable-/non-renewable sources). The Project is not a grouped project.

1.3

Project Proponent

Chongqing Youshui Hydropower Development Co., Ltd. (Project Owner) Address: Youchou town, Youyang county, Chongqing Municipality, China, 408809 Tel: 86‐23‐75414057 Fax: 86‐23‐75414057

1.4

Other Entities Involved in the Project

There is no any other project participant(s).

1.5

Project Start Date

21-12-2008

1.6

Project Crediting Period

21-12-2008 to 20-12-2010, in total 730 days

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MONITORING REPORT: VCS Version 3 1.7

Project Location

The Project is located in the Youchou town, Youyang county, Chongqing Municipality, China. The exact location of the project is defined using GPS coordinates 28°58'01''N latitude, 109° 08'51''E longitude.

1.8

Title and Reference of Methodology

The consolidated baseline and monitoring methodology: ACM0002: “Consolidated methodology for grid connected electricity generation from renewable sources” version 10, in effect as of 28 of May 2009 (http://cdm.unfccc.int/methodologies/DB/UB3431UT9I5KN2MUL2FGZXZ6CV71LT); Tool for the demonstration and assessment of additionality, version 05.2 (http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-01-v5.2.pdf) Tool to calculate the emission factor for an electricity system, version 02 (http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.pdf) Tool to calculate project or leakage CO2 emissions from fossil fuel combustion, version 02 (http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-03-v2.pdf/history_view)

IMPLEMENTATION STATUS

2.1

Implementation Status of the Project Activity

The project was registered under CDM on 21-12-2010 and installed two sets of turbine and generator (60MW each) which are the same as described in the project PDD. The Project consists of one site only and the implementation is not phased. The construction of the first

set of turbine and generator was completed on 11/11/2008 and commissioned on 21/12/2008, the construction of the second set of turbine and generator was completed on 25/12/2008 and commissioned on 09/01/2009. The project operated normally during the indicated monitoring period.

2.2

Deviations from the Monitoring Plan

N/A

2.3

Grouped Project

N/A

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MONITORING REPORT: VCS Version 3 3

DATA AND PARAMETERS

3.1

Data and Parameters Available at Validation

3.2

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Data Unit / Parameter:

EFy

Data unit:

tCO2/MWh

Description:

Baseline emission factor

Source of data:

Calculated according to the procedure outlined in B.6.1 of the validated PDD

Value applied:

0.85285

Purpose of the data:

Calculation of baseline emissions

Any comment:

N/A

Data and Parameters Monitored

Data Unit / Parameter:

EGfacility,y

Data unit:

MWh

Description:

Quantity of electricity exported by the project plant to the grid in year y

Source of data:

Project Activity Site

Description of measurement methods and procedures to be applied:

The net electricity supplied to the grid by the project is calculated by measured result of ESy (electricity supplied to the grid) minus measured result EDy (electricity delivered from the grid to the project). ESy and EDy are continuously measured and monthly recorded by project entity with national standard electricity metering instruments Meter 1 and Meter 2. The measurement will be conducted technically in accordance with the “Technical administrative code of electric energy metering (DL/T448－2000)”.

Frequency of monitoring/recording:

Continuous measurement, monthly recording

Value monitored:

655,488 (for monthly records, please refer to the VER calculation spreadsheet)

Monitoring equipment:

Meter 1: Main meter

Backup meter

Serial No.

6090003818 (94827621)

6090003909 (94827623)

Accuracy class

0.2S

MONITORING REPORT: VCS Version 3 Date of 1st calibration

21/05/2008, valid until 20/05/2009

1st calibration was done by

Chongqing Electric Power Research Institute (certification: 15/11/2006~ 14/11/2011)

Date of 2nd calibration

20/05/2009, valid until 19/05/2010

2nd calibration was done by

Metrology and Quality Inspection Center Wanzhou in Chongqing (certification: 26/12/2006~ 25/12/2009)

Date of 3rd calibration

21/04/2010, valid until 20/04/2011

3rd calibration was done by

Metrology and Quality Inspection Center Wanzhou in Chongqing (certification: 22/09/2009~ 21/09/2014)

20/05/2009, valid until 19/05/2010

21/04/2010, valid until 20/04/2011

Meter 2:

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Main meter

Backup meter-old

Backup meter-new*

Serial No.

6090003904 (94827622)

6090003912 (94827624)

6090007053 (95771017)

Accuracy class

0.2S

Used period

12/21/2008~ 20/12/2010

12/21/2008~ 29/04/2009

29/04/2009~ 20/12/2010

Date of 1st calibration

21/05/2008, valid until 20/05/2009

1st calibration was done by

Chongqing Electric Power Research Institute (certification: 15/11/2006~ 14/11/2011)

Date of 2nd calibration

20/05/2009, valid until 19/05/2010

21/04/2009, valid until 20/04/2010

2nd

Metrology

Chongqing

MONITORING REPORT: VCS Version 3 calibration was done by

and Quality Inspection Center Wanzhou in Chongqing (certification: 26/12/2006~ 25/12/2009)

Electric Power Research Institute (certification: 15/11/2006~ 14/11/2011)

Date of 3rd calibration

21/04/2010, valid until 20/04/2011

3rd calibration was done by

Metrology and Quality Inspection Center Wanzhou in Chongqing (certification: 22/09/2009~ 21/09/2014)

* the old backup meter is displaced by a new backup meter on 29/04/2009

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QA/QC procedures to be applied:

The accuracy class of meters is complied with national standard “Technical Administrative Code of Electric Energy Metering” (DL/T 448-2000). And meters are calibrated according to the national standard “Verification Regulation of Electrical Energy Meter with Electronics” (JJG 596-1999). Data measured by the meters are cross checked using Electricity Transaction Notes (ETNs).

Calculation method:

Net electricity supplied = EGfacility,y = ESy(electricity supplied to the grid)-EDy(electricity delivered from the grid to the project )

Any comment:

N/A

Data Unit / Parameter:

CapPJ

Data unit:

Description:

Installed capacity of the hydro power plant after the implementation of the project activity

Source of data:

Project Activity Site

Description of measurement methods and procedures to be applied:

Installed capacity of the project activity is determined according to installed equipments‟ nameplates and is monitored annually. The nameplate will be checked by DOE during

MONITORING REPORT: VCS Version 3 verification. Frequency of monitoring/recording:

Yearly

Value monitored:

120,000,000

Monitoring equipment:

Determined according to installed equipmentsâ&#x20AC;&#x2122; nameplates

QA/QC procedures to be applied:

N/A

Calculation method:

N/A

Any comment:

N/A

Data Unit / Parameter:

APJ

Data unit:

Description:

Area of the reservoir measured in the surface of the water, after the implementation of the project activity, when the reservoir is full

Source of data:

Measured at the project site

Description of measurement methods and procedures to be applied:

The project entity commissions a third party to conduct the measurement from topographical surveys and maps. A measurement report will be issued by this qualified party. The surface area is calculated using the design schematics and area maps.

Frequency of monitoring/recording:

Yearly

Value monitored:

7,700,180 (measured in May 2009) 7,700,180 (measured in May 2010)

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Monitoring equipment:

Measured from topographical surveys and maps

QA/QC procedures to be applied:

A qualified third party, Chongqing Qingfeng Land Survey Co., Ltd. (certification number 50010077, valid from 15/05/2009 to 30/12/2014), is commissioned to measure reservoir surface area when the reservoir is full. Qualification is issued by governmental surveying and mapping department.

Calculation method:

N/A

Any comment:

N/A

Data Unit / Parameter:

Operational hours of emergency back-up diesel generator

Data unit:

Hours / year

Description:

Annual hours that the emergency back-up gasoline generator is running either for the purpose of commissioning/maintenance or actual

MONITORING REPORT: VCS Version 3 emergencies Source of data:

Project site

Description of measurement methods and procedures to be applied:

The project entity will record the operational hours in the daily operation logs.

Frequency of monitoring/recordin g:

Simultaneous measurement and recording along with operation

Value monitored:

Monitoring equipment:

N/A

QA/QC procedures to be applied:

Based on the "product basic specification & main components" for the diesel generator, the highest oil consumption is 107 kg/h, so the quantity of diesel oil that was consumed during this monitoring period is calculated as: 24hr/year×2year×107kg/h =5136kg. According to the Table 1.4 of Chapter 1 of volume 2 of the "2006 IPCC Guidelines for National Greeenhouse Gas Inventories", the effective CO2 emission factor of diesel is 74800 kgCO2/TJ (upper 95% confidence interval value is chosen to be conservative). According to the China Energy Statistic Yearbook 2011, the net calorific value of diesel is 42652 MJ/t. So the CO2 emission of the diesel consumed during this monitoring period is calculated as: 5136kg*74800kgCO2/TJ*42652MJ/t/10^9=16386kg. The 16386 kg CO2 emission is about 0.003% of the total emission reductions (559031t). Because the actual emissions resulted from the operation of the diesel generator is much less than 1% of emission reduction, there is no need to deduct this emission from baseline emissions.

3.3

Calculation method:

N/A

Any comment:

N/A

Description of the Monitoring Plan

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MONITORING REPORT: VCS Version 3 

Line diagram1

 Quality assurance and quality control system The accuracy of the monitoring results are in conformity with calibration requirements, recording frequency and quality assurance and quality control procedures stated in the monitoring plan. Please refer to Section 3.2.  Data collection procedures Parameter Data collection procedures

EGfacility,y

Data generation: The power output and import is measured by the Meter 1 and Meter 2 continously. Data recording: The electricity output data are monthly recorded at 0:00 AM of 1st of each month and the electricity import data are monthly recorded at 0:00 AM of 25th of each month.The data are written down in a form and put into an excel sheet. Data will be archived at least for two years after the end of the crediting period. Data aggregation: The calculated net electricity output per month is summed over the monitoring period. Calculation: see section 4. Output and import per month is the difference between the cumulative values on the power meters. Net electricity supplied to the grid is electricity output minus electricity import. Net electricity supplied to the grid multiplied by emission factor is emission reductions. Reporting: The calculated values are included in an Excel sheet and reported in the VER calculation spreadsheet.

CapPJ

Data generation: The installed capacity of the hydro power plant is reflected on the nameplate of the turbine & generator.

As per the approved monitoring plan’s requirement, the back-up line from local transformer station has been dismantled before the start of the project, so it is not included in the diagram.

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MONITORING REPORT: VCS Version 3 Data recording: The data are recoded yearly andwritten down in a form and put into an excel sheet. Data will be archived at least for two years after the end of the crediting period. Data aggregation: N/A Calculation: N/A Reporting: The values are included in an Excel sheet and reported in the VER calculation spreadsheet.

APJ

Data generation: The project developer commissions a third party to conduct the measurement from topographical surveys and maps. Data recording: A measurement report will be issued by this qualified party. Data aggregation: N/A Calculation: N/A Reporting: The values are included in an Excel sheet and reported in the VER calculation spreadsheet.

Operational hours of emergency back-up diesel generator

Data generation: The operational hours are measured by the project developer during each run. Data recording: The operation hours are recorded along with operation logs of the emergency back-up diesel generator. Data aggregation: The calculated operational hours per year is summed over the monitoring period. Calculation: N/A Reporting: The values are included in an Excel sheet and reported in the VER calculation spreadsheet.

ď&#x201A;ˇ Organizational structure, roles and responsibilities The monitoring of the emission reductions is carried out according to the scheme shown in the figure below.

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MONITORING REPORT: VCS Version 3

The director of the Safety Production department holds the overall responsibility for the monitoring process, but as indicated below parts of the process are delegated. The first step is the measurement of the electrical energy supplied to the grid and reporting of daily operations, which is carried out by the plant operation staff. The project owner appoints a monitoring officer who is responsible for verification of the measurement, collection of sales receipts, collection of billing receipts of the power supplied by the grid to the hydropower plant and the calculation of the emissions reductions. The monitoring officer prepares operational reports of the project activity, recording the daily operation of the hydropower station including operating periods, power generation, power delivered to the grid, equipment defects, etc. Finally, the monitoring reports is reviewed by the director of the Safety Production department.

ď&#x201A;ˇ Emergency procedures for the monitoring system In case of emergencies, the project entity will not claim emission reductions due to the project activity for the duration of the emergency. The project entity will follow the below procedure for declaring the emergency period to be over: 1. The project entity will ensure that all requirements for monitoring of emission reductions have been reestablished. 2. The monitoring officer and the head of operations of the hydropower station will both sign a statement declaring the emergency situation to have ended and normal operations to have resumed.

Â 4

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QUANTIFICATION OF GHG EMISSION REDUCTIONS AND REMOVALS

MONITORING REPORT: VCS Version 3 4.1

Baseline Emissions

Calculation of baseline emissions Electricity supplied to grid Baseline emission factor Total baseline emissions

Symbol EGfacility,y EFy BEy

Amount 655,488 0.85285 559,031

Unit MWh tCO2e/MWh tCO2e

Formula

Remarks 1 2

BEy=EGfacility,y Ă&#x2014; EFy

Remarks 1. EGfacility,y = ESy(electricity supplied to the grid)-EDy(electricity delivered from the grid to the project ) In 2008: 1626 MWh In 2009: 263527 MWh In 2010: 390335 MWh

4.2

Project Emissions

Calculation of project emissions

Symbol

Surface area of the reservoir at full reservoir level Installed capacity of the plant after implementation

APJ CapPJ

Power density Total project emissions

PD PEy

Amount 7,700,180 120,000,000 15.6 0

Unit 2

m W

W/m tCO2e

Formula

Remarks

N/A N/A

1 2

PD=CapPJ/APJ N/A

3 4

Remarks 1. Measured by a qulified third party. 2. Determined according to installed equipments' nameplates 3. As per methodology and PDD, PD=CapPJ/APJ 4. As per methodology and PDD, PEy=0 if PD>10.

4.3

Leakage

Calculation of leakage emissions Total leakage emissions

Symbol Ly

Amount 0

Unit tCO2e

Formula N/A

Remarks 1

Remarks 1. As per methodology and PDD, Ly=0.

4.4

Summary of GHG Emission Reductions and Removals

Calculation of emission reductions Total baseline emissions Total project emissions Total leakage emissions Total emission reductions Remarks 1. As per methodology and PDD, ERy=BEy-PEy In 2008: In 2009: In 2010:

v3.1

Symbol BEy PEy Ly Ery

Amount 559,031 0 0 559,031

Unit tCO2e tCO2e tCO2e tCO2e

1,386 224,749 332,896

tCO2e tCO2e tCO2e

Formula BEy=EGy*EFy

Remarks

ERy=BEy-PEy

MONITORING REPORT: VCS Version 3 5

ADDITIONAL INFORMATION

The following table shows the comparison of actual emission reductions or net anthropogenic GHG removals by sinks with estimates in registered PDD. This table shows that the actual value is less than the estimated emission reduction of the registered CDM-PDD during this monitoring period. Item Emission reductions or GHG removals by sinks (tCO2e)

Values estimated in ex-ante calculation of registered PDD

Actual values achieved during this monitoring period

665,2222

559,031

332,611 tCO2e(annual GHG emission reductions estimated in registered PDD) / 365 days*730 days (the days length of this monitoring period)

v3.1

WCD COMPLIANCE REPORT Chongqing Youyang County Youchou Hydropower Station Project

Report No: 10017032

Date: 05/05/2010

China Environmental United Certification Center Co., Ltd No. 1 Yuhuinanlu, Chaoyang District, Beijing 100029 China www.mepcec.com

WCD Compliance Report of Chongqing Youyang County Youchou Hydropower Station Project

Date of first issue:

Project No.:

16/04/2010

10017032

Approved by:

Organizational unit:

TANG Dingding

China Environmental United Certification Center Co.,Ltd.

Client:

Client ref.:

AES Carbon Exchange Ltd.

Leo S. Perkowski

Summary: AES Carbon Exchange Ltd. has commissioned China Environmental United Certification Center Co.,Ltd. CEC to assess the compliance with the criteria of the World Commission on Dams of the project: “Chongqing Youyang County Youchou Hydropower Station Project”.

（）

This compliance assessment has been performed by document reviews, on-site visit and interviews with the project owner, local authorities and affected stakeholders. The on-site visit was conducted on 18th -20th Mar 2010. And Furthermore publicly available information was considered as far as available and required. During the course of assessment, 1 CL and 1 FAR were raised. The guidelines of the World Commission on Dams (WCD) are comprehensive and have to be seen in some cases more as goals than concrete requirements. Taking this into account, we can confirm as result of our compliance assessment that the Chongqing Youyang County Youchou Hydropower Station is in compliance with the main principles of the seven priorities. The villagers affected by the project have been compensated according to the Chinese legal requirements. The compensation standard for land occupation is in compliance with the authorized documents issued by Authority. The negative impact on the environment (local climate, aquatic biodiversity and terrestrial species) is negligible. The measures implemented by the project owner to protect the ecosystem are in compliance with relevant regulations issued by authority. The ecological flow will be monitored by the local government. Report No.:

Date of this Revision:

Rev. No.

Number of Pages

10017032

05/05/2010

Report Title: Chongqing Youyang County Youchou Hydropower Station Project Work Carried out by: ZHANG Ruizhi, WANG Yanping Work Reviewed by: XU Linghua, LIU Qingzhi Work Verified by: ZHANG Xiaodan CDM Supervisor, Technical Director

■No distribution without permission from the Client or responsible organizational unit □Limited distribution □Unrestricted distribution

WCD Compliance Report of Chongqing Youyang County Youchou Hydropower Station Project

Table of Contents 1 INTRODUCTION......................................................................................................................................4 1.1 Objective .............................................................................................................................................4 1.2 Scope...................................................................................................................................................4 1.3 Project Description..............................................................................................................................4 2 ASSESSMENT FINDINGS.......................................................................................................................5 2.1 Gaining Public Acceptance .................................................................................................................5 2.1.1 Findings................................................................................................................................5 2.1.2 Issued CARs/CLs/FARs .......................................................................................................5 2.1.3 Conclusion............................................................................................................................5 2.2 Comprehensive Option Assessment ....................................................................................................5 2.2.1 Findings................................................................................................................................6 2.2.2 Issued CARs/CLs/FARs .......................................................................................................6 2.2.3 Conclusion............................................................................................................................6 2.3 Addressing Existing Dams ..................................................................................................................6 2.3.1 Findings................................................................................................................................6 2.3.2 Issued CARs/CLs/FARs .......................................................................................................6 2.3.3 Conclusion............................................................................................................................6 2.4 Sustaining Rivers and Livelihood .......................................................................................................6 2.4.1 Findings................................................................................................................................6 2.4.2 Issued CARs/CLs/FARs .......................................................................................................7 2.4.3 Conclusions ..........................................................................................................................7 2.5 Recognizing Entitlements and Sharing Benefits .................................................................................7 2.5.1 Findings................................................................................................................................7 2.5.2 Issued CARs/CLs/FARs .......................................................................................................7 2.5.3 Conclusion............................................................................................................................7 2.6 Ensuring Compliance ..........................................................................................................................7 2.6.1 Findings................................................................................................................................7 2.6.2 Issued CARs/CLs/FARs .......................................................................................................7 2.6.3 Conclusion............................................................................................................................7 2.7 Sharing Rivers of Peace, Development and Security..........................................................................8 2.7.1 Findings................................................................................................................................8 2.7.2 Issued CARs/CLs/FARs .......................................................................................................8 2.7.3 Conclusion............................................................................................................................8 2.8 Conclusion...........................................................................................................................................8 ANNEX 1: Information Reference List ........................................................................................................9 Table 1: Documents provided by the project proponent ...........................................................................9 Tabel 2: List of interviewed persons ....................................................................................................... 11 ANNEX 2 WCD Compliance Report .........................................................................................................13 Section 1: Description of the project....................................................................................................14 Section 2: Assessment of compliance with the WCD criteria..............................................................17

WCD Compliance Report of Chongqing Youyang County Youchou Hydropower Station Project

1 INTRODUCTION AES Carbon Exchange Ltd. has commissioned China Environmental United Certification Center Co.,Ltd.(CEC) to assess the compliance with the criteria of the World Commission on Dams of the project: â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?.

1.1 Objective The objective is to assess by an independent entity whether the proposed project is in compliance with the criteria of the World Commissions on Dams. The assessment is based on seven strategic priorities and corresponding policy principles for water and energy resources developed by the WCD.

1.2 Scope The assessment scope is defined as an independent and objective review of the present status of the project. Based on the WCD report, CEC carried out the assessment according to the assessing sheet formulated by European Union.

1.3 Project Description Chongqing Youyang County Youchou Hydropower Station is located at the main stream of Youshui River near Youchou Township of Youyang County, Chongqing Municipality, China. The main objective of the project is to generate power in Chongqing Municipality and contribute to the sustainability of power generation of the Central China Grid. The total installed capacity of the proposed project is 120MW. The proposed project is a newly built hydropower station. The main construction structures include: dam and power plant. The dam is maximum height of 62.2 meters including water intakes on the left hand side, a power house located at the base, and a set of 5 floodgates towards the right bank. The submerged area of reservoir is 7.7km2, the normal water level 335 m, corresponding storage capacity is 152 million m3. The station is under operation at the time of on-site assessment. The assessment team could check directly the powerhouse and the site of the dam. According to the Regulation of Safe Management of Reservoir Dam, a dam with a height of 15 m or more (from the foundation) will be defined as a large dam. Hence, the dam of Youchou Station is classified as a large dam. The key parameters for the project activity are given in the following table. Table 1-1: Technical parameters of the turbine / generator units1 The Technical Parameter Turbine Unit Type Manufacturer Rated Water Head Rated Flow Rate Rated Power

Youchou Hydropower Station 2 HL(PO45)-LJ-425 Zhejiang Fuchunjiang Hydropower Equipment Co. Ltd. 43m 157.69m3/s 61860KW

Data are cited from the nameplate of Generators and Turbines.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project

Generator

Rated Rotation Speed Life time Unit Type manufacturer Rated Power Rated Voltage Rated Current Rated Frequency Rated Rotational Speed Life time

125r/min 40 2 SF60-48/9120 Zhejiang Fuchunjiang Hydropower Equipment Co. Ltd. 60MW 10.5KV 3881.3A 50Hz 125r/min 40

Note: The average lifetime of the equipments are 40 years based on the technical agreement.

2 ASSESSMENT FINDINGS The WCD Compliance assessment is focused on seven Strategic Priorities including the principles. In the following sections each of seven Strategic Priorities is verified individually.

2.1 Gaining Public Acceptance 2.1.1 Findings The residents affected by the project referred to inhabitants of 5 townships i.e. Youchou, Daxi, Keda, Pianbai and Wufu, and the station is near Youchou Township and the reservoir area effects Daxi Township. The occupied land includes farmland, barren land, residential land and some woodland and garden, the negative impact on the environment (local climate, aquatic biodiversity and terrestrial species is negligible. Stakeholders were clearly identified in the phase of the Environmental Impact Assessment (EIA). The Stakeholders include inhabitants of 5 townships, local governmental staff and project owner. The information obtained on site shows a stakeholder forum was held on 22/09/2004 during the EIA public survey, and questionnaires were distributed to collect the opinions of local. residents, related township government regarding the project activity when EIA was developed. According to information obtained through document review and on-site visit, the decision-making process was conducted by the project owner and the local government. The inhabitants were not directly involved in the decision process, but they were informed about the project in detail through bulletin issued by government before the project started. The living conditions of the affected people are improved since the construction of the project. As the core requirement of “no social or cultural disadvantages” has been achieved, the essence of the WCD guidelines is fulfilled. 2.1.2 Issued CARs/CLs/FARs CL1 Please provides evidence to testify the questionnaires had been distributed. The PP provided all of the received questionnaires. Through checked them, the validation team considered to be valid, thus CL1 was closed. No CARs/ FARs was issued. 2.1.3 Conclusion The validation team considered the result as compliance with the WCD priority “Gaining Public Acceptance”.

2.2 Comprehensive Option Assessment

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project

2.2.1 Findings Hydropower is the most important segment of renewable energies in China, and Chinese national energy strategy promotes hydropower production. The development needs and objective of the project were defined in the project design documents (FSR). These documents were approved by the government before the start of the project. According to the FSR undertaken by qualified entity, comprehensive options have been considered and assessed. When assessing the alternatives, both social-environmental aspect and technical-economical aspect were considered. For the sake of sustainable development, Youshui River Basin Hydro energy Development Plan was carried out by Central Southern Survey and Design Institute of National Electrical Company and approved by Chongqing Government.

，

2.2.2 Issued CARs/CLs/FARs No CARs/CLs/FARs was raised. 2.2.3 Conclusion The validation team considered the result as in compliance with the WCD priority “Comprehensive Option Assessment”

2.3 Addressing Existing Dams 2.3.1 Findings According to information obtained through document review and on-site visit, the dam of Youchou station is a large dam with a maximum height of 62.2 meters which includes flood gates and sand sluices, and the storage capacity of the reservoir is 152 million m3. Hence, it developed special safety measures include environmental monitoring, Soil and Water Conservation, After the project started, the Youyang Environmental Protection Bureau will be responsible for the environmental monitoring and will conduct the check and acceptance of environmental protection and the Youyang Water Resource Bureau will be responsible for the monitoring of implementation of Soil and Water Conservation measure. 2.3.2 Issued CARs/CLs/FARs No CARs/CLs/FARs was raised. 2.3.3 Conclusion The validation team considered the result as compliance with the WCD priority “Addressing Existing Dams”

2.4 Sustaining Rivers and Livelihood 2.4.1 Findings The project will have a total installed capacity of 120 MW. The project has a reservoir with surface area of 7.7km2 and volume of 152million m3 at full storage capacity. An Environmental Impact Assessment (EIA) was carried out in Sep 2005 and was approved by the Chongqing Environmental Protection Bureau on 07/11/2005. As described in the EIA the negative impact on local climate, aquatic biodiversity and terrestrial species is negligible. There aren’t any rare species in the project area. The operation of the project can start after the check and acceptance of environmental protection by the local authorities. The measures implemented by the project owner to protect ecosystem function are in compliance with relevant regulations issued by authority.

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project

2.4.2 Issued CARs/CLs/FARs FAR1 the check and acceptance of environmental protection should be verified during the first verification. No CLs/CARs was issued. 2.4.3 Conclusions The validation team considered the result as in compliance with the WCD priority “Sustaining Rivers and Livelihood”.

2.5 Recognizing Entitlements and Sharing Benefits 2.5.1 Findings Compensation for affected inhabitants was carefully investigated. Compensation agreements had been put in place in accordance with Chinese legislation. The compensation standard is developed in accordance with national and local legal requirements. Other benefits include building a new town and constructing a medical service institution and a middle school for Daxi Town; building the abstraction of water supply for Youchou Town and two new roads from Youyang County to Daxi town and Youchou town. All interviewed persons in 5 townships stated that their living environment has been considerably improved by the project, including the new house new road and drinking water supply system.

、

According to the on-site interview with stakeholders, local residents have fully taken part in the negotiation of land and objects occupation compensation. The evidences provided by project owner have been verified by the assessment team. 2.5.2 Issued CARs/CLs/FARs No CARs/CLs/FARs was issued. 2.5.3 Conclusion The validation team considered the result as compliance with the WCD priority “Recognizing Entitlements and Sharing Benefits”

2.6 Ensuring Compliance 2.6.1 Findings According to information obtained by the validation team during the validation process, an Ensuring Compliance plan as defined in the WCD guidelines didn’t exist. However, the financing plan of all social and environmental compensation and mitigation schemes were included in the FSR and EIA. Furthermore the construction of the project is based on the approved FSR and EIA. The validation team considered the deviation from the WCD guidelines as acceptable. The amount of total compensation of land and personal belongings was derived from the document issued by local government. The compensation has been already paid. The construction of Daxi new town basically completed, a part of immigrations has been relocated. Water facilities of Youchou town have been completed. The roads leading to Youchou town and Daxi new town have been built and the traffic condition has been greatly improved. 2.6.2 Issued CARs/CLs/FARs No CARs/CLs/FARs was issued. 2.6.3 Conclusion The validation team considered the result as compliance with the WCD priority “Ensuring Compliance”. China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project

2.7 Sharing Rivers of Peace, Development and Security 2.7.1 Findings The project does not have trans-boundary effect. The affected region of the project only includes Youchou, Daxi, Wufu, Keda and Pianbai town; all of them are located in Youyang county of Chongqing, P.R.China. Both the up-stream and below-stream of the power station are other hydropower stations. 2.7.2 Issued CARs/CLs/FARs No CARs/CLs/FARs was issued. 2.7.3 Conclusion The validation team considered the result as compliance with the WCD priority “Ensuring Compliance”.

2.8 Conclusion The guidelines of the World Commission on Dams (WCD) are comprehensive and have to be seen in some cases more as goals than concrete requirements. Taking this into account, we can confirm as result of our compliance assessment that the Chongqing Youyang Youshui River Youchou Hydropower Stations is in compliance with the main principles of the seven priorities. The villagers affected by the project have been compensated according to Chinese legal requirements; the compensation standard for land occupation is in compliance with the authorized documents issued by Authority. The negative impact on the environment (local climate, aquatic biodiversity and terrestrial species is negligible. The measures implemented by the project owner to protect the ecosystem and environment are in compliance with relevant regulations issued by authority and is monitored by relevant authority.

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of Chongqing Youyang County Youchou Hydropower Station Project

ANNEX 1: Information Reference List

Table 1: Documents provided by the project participant Reference

Document

AEIA

Approval of Environmental Impact Assessment of Youchou Hydropower Station, issued by Environmental Protection Bureau of Chongqing City on 07/11/2005 ref no. YUHUANZHUN [2005] No.316.

EIA

Environment Impact Assessment of Youchou Hydropower Station, carried out by Sino-coal International Engineering Group Chongqing Design & Research Institute, 09/2005.

FSR

Feasibility Research of Youchou Hydropower Station, carried out by State Electric Power Zhongnan Engineering Corporation in June 2004.

AFSR

Approval of Feasibility Research of Youchou Hydropower Station, issued by Chongqing Development Reform committee on 30/06/2004,ref no. YuFaGaiJiao[2004] No.686.

RDP

Revise on Youshui River Basin Hydro Energy Development Planning, carried out by State Electric Power Zhongnan Engineering Corporation in September, 2000.

YDP

ďš

Youshui River Development Planning carried out by State Electric Power Zhongnan

Engineering Corporation, 1987.

AYDP

Approval of Youshui River Basin Hydro Energy Development Planning, issued by Ministry of Hydrology Hydropower Planning and Design Administration, Shuiguizi [90], 1987.

WRAR

Water Resources Assessment Report for Youshui River Youchou Stations, carried out by Changjiang Water Resources Commission Water Conservancy Bureau & Chongqing Institute of Water Resources and Electric Power Investigation and Design in Jan 2005.

AWRAR

Approval of Water Resources Assessment Report for Youshui River Youchou Stations, issued by Ministry of Hydrology Changjiang Hydrology Committee in September, 2004.

SWCS

Soil and Water Conservation Scheme of Chongqing Youchou Hydropower Project, carried out by Chongqing Lanyu Landscape Greening Engineering Co., Ltd..

ASWCS

Approval of Soil and Water Conservation Scheme of Chongqing Youchou Hydropower Project. YUSHUIXUKE[2005] No.59. Chongqing Water Conservancy Bureau, 12/09/2005.

SWCMP

Soil and Water Conservation Monitoring Report 2006-2008, Changjiang Water Resources Commission Soil and Water Conservation Monitoring Center of Changjiang River Basin.

FPCP

Flood Prevention & Control Plan in 2009. Chongqing Youshui Hydropower Development Co., Ltd. 03/2009.

DSMP

Dam Safety Monitoring Procedures. Chongqing Youshui Hydropower Development Co., Ltd. 01/2010.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project

ERPS-EF

Emergency Response Plan Scenario for Exceeded Flood. Chongqing Youshui Hydropower Development Co., Ltd. 01/2010.

ERPS-AW

Emergency Response Plan Scenario for Abnormal Weather. Chongqing Youshui Hydropower Development Co., Ltd. 01/2010.

ERPS-DOC

Emergency Response Plan Scenario for Dam Overtopping, Collapse. Chongqing Youshui Hydropower Development Co., Ltd. 01/2010.

ERPS-EFG

Emergency Response Plan Scenario for Emergency Flood Gate Can Not Open and Close Programs in Flood Duration. Chongqing Youshui Hydropower Development Co., Ltd. 01/2010.

ERPS-URC

Emergency Response Plan Scenario for Upstream Reservoir Collapse. Chongqing Youshui Hydropower Development Co., Ltd. 01/2010.

ERPS-RLL

Emergency Response Plan Scenario for Reservoir Area Large Landslide Chongqing. Youshui Hydropower Development Co., Ltd. 01/2010.

ERPS-UGD

Emergency Response Plan Scenario for Unexpected Geological Disaster. Chongqing Youshui Hydropower Development Co., Ltd. 01/2010.

ERPS-DE

Emergency Response Plan Scenario for Destructive Earthquake. Chongqing Youshui Hydropower Development Co., Ltd. 01/2010.

ERPS-FCDR

Emergency Response Plan Scenario for Flood Control and Drought Relief. Chongqing Youshui Hydropower Development Co., Ltd. 01/2010.

TGTA

Turbine & Generator Technical Agreement, signed by Hydro china Zhongnan Engineering Corporation and Zhejiang Fuchunjiang Hydropower Equipment Co. Ltd.

Construction Contract signed by Chongqing Youshui Hydropower Development Co., Ltd. and Hydro china Zhongnan Engineering Corporation

Business License of Chongqing Youshui Hydropower Development Co., Ltd. issued by Chongqing Administrative Bureau for Industry and Commerce

ALO

Approval of Land Occupation of Youchou Stations, issued by Youyang Land and Resources Administration on 2009, ref no. 315 Fangdizheng [2009] No. 01121. .

PDD

Project Design Document titled “Chongqing Youyang County Youchou Hydropower Station Project”, (Ver 2.0) 31/12/2009.

RWCD

PPC

The Report of the World Commission on Dams “Dams and Development-A New Framework for Decision-Making” released on 16/11/2000. Construction Permission of the Project.

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project

CPIP

Chongqing Medium and Large Hydro Hydropower Construction and Resettlement Interim Provisions. Chongqing municipal government. YUFUFA[2001] No.28.

ACS

Notice on Adjust Land Appropriation Compensation Standard and Improve Land Appropriation Compensation Work. Youyang municipal government. YOUYANGFUFA[2005] No.52.

LARMP

Youyang Country Land Appropriation and Resettlement Management Tentative Procedures for Reservoir Engineering Construction. Youyang municipal government. YOUYANGFUBANFA[2006] No.2, 06/01/2006.

CLARP

Special report on Youchou Hydropower Station Construction Land Expropriation and Resettlement Plan. State Electric Power Zhongnan Engineering Corporation. 06/2005.

ASIS

Adjust Scheme of Youchou Hydropower Reservoir Area Land Appropriation and Resettlement Compensation Items and Sandard. YOUYANGFUBANFA[2009] No.77. 27/04/2009. Understand Cards on Household Objects and Compensated of Youyang County Youchou Town Immigrant.

CALO

Compensation Agreement, signed by Chongqing Youshui Hydropower Development Co., Ltd (project owner) and villagers of Youchou, Daxi, Pianbai. Keda and Wufu township.

Tabel 2: List of interviewed persons Name

Organization / Function

QIN Lin

Hydropower Development Co., Ltd. / GM

FAN Hu

Hydropower Development Co., Ltd. / Project Manager

WENG Qin

Youyang People’s Government/Vice Director-General

LI Shifu

Land and Resources Bureau of Youyang County / Director

LU Bangquan

Development and Reform Bureau of Youyang County / Director-General

YAO Chuanjiang

Environmental Protection Bureau of Youyang County / Director-General

LIU Jun

Youyang Electricity supply company / Director

YANG Xiujie

Forestry Bureau of Youyang County / Director

XU Hongchuan

Water Conservancy Bureau of Youyang County/Director

XIE Zhenwen

Immigration Affairs Office of Daxi Town/Director

TIAN Rrenduo

Youchou town/ villager/Miao nationality

LI Shuyuan

Youchou town/ villager/ Miao nationality

TIAN Hongzhou

Youchou town/ villager/ Miao nationality

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Project

TIAN Ying

Wufu country/ villager/ Tujia nationality

LIN Zhixiang

Wufu country/ villager/ Tujia nationality

ZHANG Zhengguo

Wufu country/ villager/ Tujia nationality

LIN Yiju

Wufu country/ villager/ Tujia nationality

ZHANG Rrencai

Wufu country/ villager/ Tujia nationality

HAN Mingqing

Wufu country/ villager/ Tujia nationality

TIAN Hongquan

Keda country/ villager/ Tujia nationality

CHEN Yuanfen

Keda country/ villager/ Tujia nationality

PENG Jianguo

Keda country/ villager/ Tujia nationality

TIAN Yibei

Keda country/ villager/ Tujia nationality

LIU Honglin

Keda country/ villager/ Tujia nationality

SONG Jiawan

Keda country/ villager/ Tujia nationality

SONG Chuanquan

Keda country/ villager/ Tujia nationality

LIU Maohong

Daxi country/ villager/ Tujia nationality

WU Shengfu

Daxi country/ villager/ Tujia nationality

LI Zehua

Daxi country/ villager/ Miao nationality

ZHANG Jinxiang

Daxi country/ villager/ Tujia nationality

LI Maoxiang

Daxi country/ villager/ Tujia nationality

WANG Xinghai

Daxi country/ villager/ Miao nationality

HUANG Fujiang

Daxi country/ villager/ Tujia nationality

LI Yulin

Daxi country/ villager/ Miao nationality

LI Maohua

Daxi country/ villager/ Miao nationality

TIAN Qinglin

Daxi country/ villager/ Tujia nationality

ZHANG Chang

Pianbai country/ villager/ Tujia nationality

WANG Xuejun

Pianbai country/ villager/ Miao nationality

LEI Xichun

Pianbai country/ villager/ Tujia nationality

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Project

ANNEX 2 WCD Compliance Report

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

COMPLIANCE REPORT ASSESSING APPLICATION OF ARTICLE 11 b (6) OF EMISSIONS TRADING DIRECTIVE TO HYDROELECTRIC PROJECT ACTIVITIES EXCEEDING 20 MW (Final Version of 17 November 2008) Section 1:

Description of the project

. 1: Summary description of the CDM project activity Name of the project

Please complete Chongqing Youyang County Youchou Hydropower Station Project

Project ID Number Location

Youchou Township of Youyang County, Chongqing Municipality, China.

Name of the watercourse

Youshui River

Date of completion of the Compliance Report

5 May, 2010

1.1. Project area 1.

Description of the watershed: -

Political and administrative boundaries

Communities located along

Principal land use patterns

Existing and planned river flow modifications

Average annual runoff (m3)

Sources: FSR and EIA Report - Political and administrative boundaries: Youchou Township of Youyang County, Chongqing Municipality, China. - Communities located along: According to Chapter 10 of the FSR, there are 17 villages (Xikou village, Jiangxi village, Daxi village , Changling village, Jinxian village, Chadian village, shidi village, Erping village, Shanling village, hetao village, Wufu village, Longsha village, Zhaojia village, Dahe village, Wujia village, Zhongba village, Chengxiang village) and 1 township (Daxi township) among the project. - Principal land use patterns: Cultivated land and forest, as well as a part of residence area are expropriated for the reservoir and plant.

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WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

- Existing and planned river flow modifications: According to the FSR, the proposed project is included in the You River development planning which consists of 9 cascades stations in total and was approved by the authority. The 9 hydropower stations are planned in one portfolio of which 7 stations started and are now under construction or operation, so the resulted river flow modifications have already been considered when the planning was approved. - According to the FSR, average annual runoff is 4.671 billion m3 2.

Average annual river flow (m3/s)

According to the FSR, the average annual river flow is 145m3/s

Average annual river runoff before and after project's implementation (m3)

Before: 4.671 billion m3 After:

4.671billion m3

State briefly what impacts other hydrological projects have had on the river basin within 50 km (untouched, affected, significantly affected by other activities).

According to the FSR and EIA, 4 hydropower stations are existed in the upstream of Youshui River, and 4 hydropower stations are existed in the downstream. All of them are established according to the related development plan. The nearest hydropower station in the upstream is 62km away, and the nearest one in the downstream is 34km away which is Shidi hydropower Station. There is no significant effect among the hydropower stations or on the river basin, as all of them are either built up or going to be established according to the approved relevant development plan.

Ecological description of the surroundings (forest, cultivated land, wasteland, cultural heritage sites etc.) conservation value

Some cultivated land and forest are submerged when the project launches into the operation. No scenic spots, historical sites or ground cultural are submerged.

1.2. Project-related activities 1.

Type of water infrastructure (i.e. storage reservoir, run-of-river, other)

Run-of-river type

Related infrastructure being built as part of the project (i.e. roads, transmission lines, bridges)

4 roads (1. Bishanba to Daxi village; 2. Yuexiba to Laozhai village; 3. Dagongqiao to Changling village; 4. Toudaohe to Zhangjiaba) and 5 bridges (Xianggou, Gangou, Zhangjiaba, Zhuxingba, Wangjiaba) are built to convenient for the people

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

Installed generation capacity (MW)

120MW

Load factor

37.29%

Average annual energy production (MWh)

The expected annual power generation is 392,000MWh.

What role does the project play in the national/regional electricity supply (base load, peak load, load balancing services for the grid, support for intermittent renewables, etc.)?

According to the FSR, this project will play a role of base load and load balancing services for the grid, support for intermittent renewable.

Estimated annual emission reduction potential (tCO2e)

332,611 tCO2e

At what stage is the project’s construction at the time of this application?

Construction is finished and the project is now in full operation.

What other direct purposes does the project serve (irrigation, flood control, water storage for drought protection, water-based transport, leisure facilities, aqua-culture, industrial and municipal water supply, etc)?

According to the FSR, the only purpose of proposed project is power generation.

1.3. Project components Water-flow: structures and changes Production capacity-submerged area (W/m2)

21.41 W/ m2 = 120,000,000 W/5,604,340.28 m2

Retention structure/retarding structure (if present) 1.

Type of water diversion

Power house at dam-toe

Length of diversion

65.91m

Type of water inlet

Intake integrated with the dam

Reservoir (if present) 4.

Dam height (from the foundation)

China Environmental United Certification Center Co.,Ltd

Yes 62.6m

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

Crest length

186.92m

Reservoir area at average water level

7.7 km2

Total reservoir capacity (m3)

152million m3

Backwater length

51.29km

Submerged area in total

376.9hm2

10. Submerged residential area

17.9hm2

11. Submerged farmland/grassland

(farmland 5386.29Mu)359hm2

12. Number of displaced inhabitants

4635 21.41 W/m2

13. Production capacity/submerged area(W/m2)

Section 2:

Assessment of compliance with the WCD criteria

Please complete this form with full explanations for all items.

If a criterion is not relevant to the project, please explain why.

CRITERIA 1. Gaining Public Acceptance

Description

Sources2

Validator's Assessment

Such as process documentation, stakeholders and issues identification, consultation strategies, resources planning, compensation plans, timetables, information sharing, written agreements with stakeholders, records of interviews, results of surveys/polls, minutes of meetings of the Stakeholders Forum, project documentation, Environmental Impact Assessments, documents related to local spatial planning, government and local authorities permits and agreements, description of methodologies used, decommissioning plans (where appropriate), other related environmental impact and social impact studies, etc.

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WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

1.1. Stakeholder consultation

Describe how the relevant stakeholders were identified.

1. In the EIA stakeholders have been identified through a specific investigation where the targets were local people influenced by the project and the relevant governmental department as well as project developer. 28 stakeholders were consulted in a consultation meeting in September 22 of 2004. And later a total of 80 questionnaires were distributed to the stakeholders.

EIA

FSR

Stakeholder meeting minutes documents on the compensation standards Compensation agreement

1. The stakeholders were identified during the environmental impact assessment period. The stakeholders including the local residents influenced by the project, local governmental officers and project owner. The residents affected by the project are all of Daxi, parts of Youchou, Wufu, Keda and Pianbai town. This had been verified by on-site visit and interview and reviewed relevant documents such as EIA, FSR,SMM and CA. 2. Through on-site interview and desk review, the validation team found Tujia and Miao nationalities live in affected area. The PP consulted the opinions with affected villagers before the station started construction and developed several measures to meet them. Through on-site verification, all of these measures were fulfilled.

Are any of these people minority groups, especially indigenous people and if so, what special efforts were taken to identify and meet their needs?

2. This proposed area is populated with Tujia and Miao nationalities. The minorities’ representatives were invited to attend the stakeholder consultation meeting or survey to express their opinion on the construction of the project and their requirement. After communication, several measures like build new roads and bridges alongside the project and for the impacted area have been taken to meet their needs and increase their acceptance:

How many people have to be resettled due to the project?

3. About 4635 persons will be resettled according to the EIA and resettlement plan.

3. Through cross-checking EIA and resettlement plan with information obtained from on-site interview of stakeholders, the validation team affirmed the number of immigrants is about 4635.

Resettled people/annual energy production (number/GWh).

4. According to FSR, Resettled people/annual energy productions is 4635/390GWh, about 12 people/GWh.

China Environmental United Certification Center Co.,Ltd

12 people/GWh i.e. 4635/390GWh

Special report on Youchou Hydropower Station Construction Land Appropriation and Resettlement Plan.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

How many people were otherwise affected by the project (e.g. through loss of land, reduced productivity of fishing or hunting, etc.)?

5. According to the EIA, 4635 People will be affected by the project.

5. According to related information of EIA, FSR and resettlement plan, about 4635 persons are affected by the project. The number was validated through on site interview of villagers and related personnel of government.

Describe how the affected local people and other relevant stakeholders have been informed and involved in the decision-making process of building the power plant.

6. A public participation activity is required to include in the EIA, during the environment impact assessment process, 28 stakeholders were consulted in a consultation meeting in September 22 of 2004. And a total of 80 questionnaires were distributed to the local villagers and communities, the result of the consultation meeting and the returned questions show they were supportive to the construction of the project.

6. The information obtained through on site interview of villagers and representatives of other stakeholders showed they knew the information through read the bulletin. According to our information obtained from on-site visit, the affected local people were not involved in the decision-making process; In the course of EIA public survey, A stakeholder meeting was held on 22 Sep. 2004, 28 stakeholders were invited to gather opinions and answer any questions raised by stakeholders, and also some questionnaires were distributed to collect the opinions of local residents against the project. The validation team checked the name list and questionnaires.

，

There is a little deviation from several guidelines of the WCD Report but the affected people have been improved their living environment. As the core requirement of “no social or cultural disadvantages” has been achieved, the essence of the WCD guidelines is still fulfilled.

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WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

Describe how the affected local people and relevant stakeholders have been informed about the impacts of the project on their quality of life.

7. a) The relevant impacts were described in the information published in the local newspaper, as well as the printed notices; b) The relevant impact were introduced in the stakeholders consultation meeting which held by the EIA Institute on 22 Sep. 2004. c) A total of 80 questionnaires with a summary on the relevant impacts were distributed to the local villagers and communities.

7. The validation team checked the related evidences provided by the PP and affirmed the ways that the affected local people and other stakeholders were informed by the information published in the local newspaper and the printed notices; the stakeholder meeting and questionnaire survey.

How have the affected local and indigenous communities participated in the decision-making process?

8. In China, although there is no such regulation to require the relevant stakeholders to take part in the decision-making processes, during the environment impact assessment process, 28 stakeholders were consulted in a consultation meeting in September 22 of 2004. And a total of 80 questionnaires were distributed to stakeholders, the result shows 100% stakeholders support the construction of the project. The opinions about the project from stakeholders were collected and seriously considered by the project owner and EIA entity, and the questionnaires distributed in the consultation meeting were collected and attached in the EIA report.

8. According to the on-site interview with affected villagers, they addressed the opinions by answering the EIA questionnaires and through stakeholdersâ&#x20AC;&#x2122; consultation meeting. The opinions about the project from stakeholders were collected and seriously considered by the project owner and EIA entity.

How will the economic and social impacts of the project on the affected local communities, indigenous people and/or other relevant stakeholders be addressed?

9. The economic and social impacts of the project on the affected local people, have been addressed in the Special report on Youchou Hydropower Station Construction Land Expropriation and Resettlement Plan which published by State Electric Power Zhongnan Engineering Corporation in June 2005. The land expropriation and resettlement

9. Through interviewed on-site with affected villagers and validated the compensation receipts for immigrant aftercare, the evidences showed the economic and social impacts of the project had been addressed; the compensation that the local residents had got will benefit their lives. All these have been interviewed on-site.

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WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

implement according to the approved expropriation and resettlement standard, a compensation agreement was signed and implemented between the affected stakeholders and the local government which is commissioned by the project owner. 10. How do compensation and benefit agreements correspond with the identified needs and rights of the stakeholders negatively affected upstream and downstream due to the project?

11. Was a Stakeholders Forum held with a broad local community participation (based on a customary and national law)? Describe the process and its outcome, and the response of project developer, local and national authorities?

10. Base on the actual situation, the project owner together with the impacted people have a full negotiation on the land expropriation and Resettlement standards, and the land expropriation and Resettlement standards updated twice to satisfy the project developer and impacted people. And finally a compensation agreement was signed by impacted people.

10. According to information obtained through on-site interview with stakeholders, the compensation agreement was signed based on the full negotiation between the project owner and the affected people. All of the stakeholders are satisfied with the compensation.

11. Yes, the stakeholder consultation meeting was held with broad participation of different stakeholders including affected local residents, village committee, officers of local government, local judicial authority, environmental protection bureau, land and resources bureau, project design institute and project owner. During the meeting, the project information and impacts were introduced to stakeholders. Furthermore, a total of 80 questionnaires were distributed to them to further collect the opinions of stakeholders. The meeting and survey results showed that the stakeholders, local government were all supportive to the construction of the project. For special needs raised by stakeholders during the meeting, the project developer would take well

11. The minutes were checked on the site, and this was cross-checked through interview with relevant peoples.

China Environmental United Certification Center Co.,Ltd

It is valid by checking these agreements.

The forum held with the representatives cover all kinds of stakeholders. According to the EIA and the compensation agreement, the consultation meeting had been held and another stakeholder forum was held for CDM consultation, all of the participants agreed with the conclusions.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

consideration during project design and compensation agreement development phase.

1.2. Transparency. 1.

Was key project documentation (e.g., social and environmental impact assessments) made publicly available before a decision to start construction was made?

1. Yes, In China an environmental impact assessment process must be publicly available and approved by authority before the construction start. The Environmental Impact Report was designed according to the relevant law and regulations, and it is approved by Chongqing Environmental Protection Bureau on 07 November 2005.

In what form was project documentation made available to stakeholders? Was it the original EIA etc. or was it in another form e.g. , a summary of positive and negative effects of the hydrological construction.

2. A summary of positive and negative impacts on the social and environmental was including in the questionnaires which were distributed to the stakeholders during the stakeholder consultation meeting on 22 September 2004.

How many of the total number of stakeholders have had access to the key documentation and have been actively involved?

3. In the EIA process, a concise edition of project introduction including the impact is public available, meanwhile 28 stakeholders were invited to the consultation meeting and a total of 80 questionnaires were distributed to local stakeholders, and all of them have an access to reach the key documentation on the project..

China Environmental United Certification Center Co.,Ltd

- EIA - FSR - Stakeholder meeting name list and questionnaires - Official government documents on the compensation standards (include CPIP, ACS, LARMP, CLARP, ASIS, UC, CALO) - Compensation agreement

1. According to Chinese law and regulations, the EIA report must be publicly available to collect public opinion before the approval by the local environmental protection authority. The project EIA was approved by Chongqing Environmental Protection Bureau. The PP provided the relevant evidences to DOE. All these have been verified by document review and interviewed with relevant personnel of government. 2. In the course of EIA publication, EIA was made available with a summary of positive and negative effects of the project. This had been verified by Chongqing EPA website.

3. During EIA public survey, many questionnaires were distributed, and were retrieved. 28 stakeholders took part in stakeholders’ consultation meeting on 22 September 2004. 80 questionnaires were distributed to local stakeholders, and 79 questionnaires were 22

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

received There were 4635 villagers who signed on the compensation agreement. These relevant documents were checked on the site. CL1

Please provide relevant evidences to testify the questionnaires had been distributed. PP Response: During project environmental impact assessment, the questionnaires have been distributed to affected stakeholders. The meeting minute, meeting sign-in forms and completed questionnaires can testify that the project information has been distributed to stakeholders. Please refer to the attachment of stakeholder survey in EIA. Conclusion: The PP explained that 80 questionnaires were distributed and 79 questionnaires were received, and all of 79 questionnaires were provided. Through reviewed these questionnaires, the validation team think they are valid, thus CL1 was closed. 4.

Is there a negotiated agreement between the stakeholders and project owner(s)? If so, is it publicly available?

4. The compensation agreement was signed and holds by affected villagers.

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4. The compensation agreement was signed and holds by affected villagers. These agreements were checked on the

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

site and verified to be reliable.

Validator’s Conclusions concerning Priority 1: Considered Priority 1 as conformity. 2. Comprehensive Options Assessment 2.1 Needs 1.

What priority is given to hydropower in national development or energy planning (e.g. relevant government decisions)?

What are the needs for hydropower at regional and local level?

1. The common practice for electricity generation in Central China Power Grid is still coal-fired power plant and according to the Renewable Energy Law published on 28 February 2005 and the Eleventh Five Year Renewable Resources Development Plan, the hydropower is listed as one of the encouraged renewable energy resources.

- FSR

2.According to the FSR, 1/4 electric demands of Chongqing city supplied by other province, and water resource is abundant in Youyang County, so the power supplied by hydropower projects is helpful to make the East Chongqing Grid operate reposefully and improve quality and reliability of power supply.

- ADRWR

- AFSR - EIA

1. The government supports hydropower construction and it can be verified by the document such as the Renewable Resources Law published on 28 February 2005 and the Eleventh Five Year Renewable Resources Development Plan.

- AFSR - DRWR

YDP

AYDP

2. Water resources are abundant in Youyang County. And it is helpful to make the East Chongqing Grid operate reposefully and improve quality and reliability of power supply. This was verified through on-site interviews with local officers.

What are the regional/national supply needs of the electric system (renewable base load, peak load or load balancing of the grid, support of intermittent renewables)?

3. The base load will be supplied by the project activity to the power grid. Also, the project is important to balance the connected grid.

3. As renewable base load, this was verified through document review of FSR and on-site interviews with local officers.

Describe safeguards for equitable access to water resources. How do hydropower projects contribute to efficient water resources management?

4. The project activity is designed and constructed according to the You River Development Planning and Revise on

4. Through checking Youshui River Development Planning, Demonstration Report on Water

Resources for Youshui River Youchou Stations

Youshui River Basin Hydroenergy Development Planning in Chongqing

and their approval, and Water Resource Assessment Report of Chongqing Youchou

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WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

Does this hydropower project provide financial incentives to develop a multi-purpose project?

2.2. Alternatives 1.

Describe the examination of alternatives to the project that have been considered (include details of feasibility studies and do-nothing options analysis that have been conducted).

which are both approved by the government authorities. Youchou hydropower stations is established according to the related development plan and approved by the authority, which means that the project activity can get enough water sources to produce electricity. The project activity also has to ensure water use as required in the EIA. The authority will monitor the real status before the project is put into operation.

Hydropower Station, and on site visit, the validation team verified that station was designed and constructed according to requires of these documents.

5. No financial incentives are set to develop a multipurpose project. The project is only constructed for power generation purpose.

5. The only purpose of the project is power generation. It was verified on site visit.

1. Chongqing City has abundant water resource, which is an advantage of developing hydropower generation. So without the project construction, the electricity to be displaced will be generated with continuation of current power plants within the grid or addition of new power plants with the same capacity. Most of the current regional grids depend on coal-fired plants, so the continuation of current practice will not reduce emissions. In China, coal-fired power plants with a capacity below 135MW have been prohibited, so the addition of new power plant with the same capacity can only choose renewable energy sources. However, except hydropower, no other renewable energy sources, such as wind or solar are suitable in the project area due to ill-suited meteorological and topographical conditions. 3 different options of different

China Environmental United Certification Center Co.,Ltd

- FSR & AFSR - EIA & AEIA - WRAR - AWRAR

1. Alternatives listed in description were considered by validation team as reasonable and credible. The power station using other resource was justified to be unfeasible. All the evidences provided by project owner were verified to be reliable.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

capacities are discussed in the FSR. The final decision was based on the investment and geologic factors. 2.

Have stakeholders been involved in the identification of the options? Describe process and outcome of that involvement.

2. In China, stakeholders are not required to be involved in the identification of the options. But if the plans will affect the local environment, the design institute will call for the opinion from the local government. And the project design plan must be approved by authority. Youchou project design plan was approved as a part of the FSR on 30th June 2004.

2. According to obtained information on site, local governments have been involved in the identification of the options.

What are the main reasons behind the project choice and site selection (social, environmental, economic, and technical)?

3. The main reason behind the project choice and site selection in FSR is based on the economic, social and environmental consideration.

3. The project choice and site selection were based on FSR approved by Chongqing Development Reform committee, which was verified through on-site visit.

What are the consequences of non-action for the local and global environment?

4. If the project is not constructed, Chonqing power grid will mainly depends on coal-fired power plants to satisfy the demand. This means that a lot of coal will be burned and a lot of CO2 will be emitted into the atmosphere. It will bring negative impact to the local and global environment.

4. The consequences of non-action for the local and global environment is the common practice for electricity generation in Central China Power Grid i.e. still coal-fired power plant which discharge a lot of pollutants into air.

5. Options of installed capacity, rated flow rate, annual power generation, operational hours, investment, and operational cost are discussed in the FSR. The hydropower station with 120MW installed capacity is selected for the project based on a higher output-input ratio. The choice of turbine and generator is made based on the consideration of

5 Based on the construction structure and cost , the 2*60MW Generators were chosen and this has been verified by the relative document and on-site interview with the PP.

On the project assessment level, describe project variants and types of technology considered in comparison with the selected option.

China Environmental United Certification Center Co.,Ltd

﹠

This was verified through on-site interview with local officers and document review.

、

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

dam, water diversion system, etc.

Validator’s Conclusions concerning Priority 2: Considered Priority 2 as conformity. 3. Addressing projects 1.

Existing

Dams/hydroelectric

For hydroelectric projects with dams, please describe the national requirements and routines for monitoring and reporting regarding: - emergency warning, - sediment management, - safety system, - maintenance system, - environmental impact, - social impact, - implementation agreements.

1. In China, the existing hydropower plant should establish a flood control proposal, which must be approved by the authority. An operational instruction, including the sediment management, safety control, and equipment maintenance, should be established and designated staff should be trained. The monitoring plan for environmental impact and social impact during construction period and operation period are stated in the approved EIA. The land evacuation and compensation agreement was signed between the project owner and the local government on behalf of the affected villagers according to the national and local laws and local official regulations.

compensation

For non-dam projects, describe details of the continuous monitoring of the project (environmental and quality assurance). How have relevant outstanding social and environmental issues from existing dams/hydroelectric projects in the river

FSR & AFSR

EIA & AEIA

WRAR & AWRAR

ERPS-EF

ERPS-AW

ERPS-DOC

ERPS-EFG

ERPS-URC

ERPS-RLL

ERPS-UGD

ERPS-DE

ERPS-FCDR

2. N/A

3. The construction of hydropower stations on Youshui River is in accordance with the Youshui River Basin Plan, there is no relevant outstanding

China Environmental United Certification Center Co.,Ltd

1. National requirements for hydroelectric projects with dams are described in the following legal document

：

1) Regulation on Dam Safety Management 2) Measures on administration for environment protection of construction project 3) Rules on final completion environmental protection acceptation of construction projects 4) Ordinance on land acquisition compensation and resettlement for construction of Medium and large hydraulic and hydroelectric. Project

2. N/A

3. According to information obtained by on-site interview with relevant personals, there are no relevant outstanding social and environmental issues from existing dams/hydroelectric projects in 27

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

basin been addressed?

social and environmental issue from existing dams/hydroelectric projects in this river, and the Youshui River Basin Plan has been approved by Chongqing government.

the river basin.

Have national regulations been enforced for existing dams and what can be concluded with regard to compliance?

4. Yes, a reservoir storage acceptance check must be taken before the dam commissioning. For the project, reservoir storage procedure has been carried out as per related regulation and has been accepted by local authorities.

4. Generally, national regulations have been enforced for existing dams. Based on the on-site visit with local officers, it was testified conforming requirements. As for Youchou Stations, before commencement of commercial operation, all of this must be checked and accepted by local authorities.

Will the implementation of safety measures and evacuation plans be independently audited?

5. Yes. The safety measures and evacuation plan is a part of flood emergency plan, and the plan should be approved by the government.

5. In FSR, the safety measures and evacuation plans are independent part respectively, and FSR was approved by Chongqing Development and Reform Commission and has been verified by the validation team.

Provisions for decommissioning

6. Same as other hydropower stations in China, Youchou hydropower station will plan to implement an annual maintenance in every winter, and will plan to implement an overhaul to the equipment every 3 years.

6. According to the information obtained from on-site interview and desk review, both of the measures of maintenance and overhaul were made by PP.

maintenance

and

What provisions have been made for maintenance and refurbishment (eg. a maintenance and refurbishment fund)? What arrangements are made for decommissioning at the end of the plant lifetime, if any (e.g. decommissioning set aside fund)?

7. No such arrangements at this stage, but according to the regulations for reservoir downgrade and scrap, the project owner will commission a qualified institute to demonstrate the relevant issues of decommissioning and submitted to authority for approving before the end of the plant lifetime, and then decommissioning the plant according the

China Environmental United Certification Center Co.,Ltd

ďź&#x152;

- Regulations (Trial) for Reservoir Downgrade and Scrap

7. In China, the Regulations for Reservoir Downgrade and Scrap (http://fxkh.mwr.gov.cn/zcfg/20050804/200402050 075.htm) are legally binding, all of relevant reservoirs must comply with it, and the PP of this proposed project is no exception.

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

report. 8.

Describe provisions for emergency drawdown and decommissioning. -

Are they sufficiently flexible to accommodate changing future needs and values, including ecosystem needs and ecosystem restoration (Guideline 12)?

8. The project owner prepared a series of emergency preplan including the situation of emergency drawdown. Before 15 minutes of emergency drawdown, the project owner will launch 3 alarm rings to inform the people upstream and downstream, and this rule has been informed by post.

- ERPS-EF - Regulations (Trial) for Reservoir Downgrade and Scrap

For the decommissioning, the project owner will commission a qualified institute to demonstrate the feasibility first and submitted to authority for approving before decommissioning, and the Regulation especially request the report shall include the reasons and basis for decommission, risk assessment, environmental impact and implementation plan. But from reviewing the available documentation, the validation team found that the arrangements after the project is decommissioned are not developed at this stage.

For the decommissioning, according to the regulations (Trial) for reservoir downgrade and scrap, the project owner will commission a qualified institute to demonstrate the feasibility first and submitted to authority for approving before decommissioning. But no such plan on decommissioning at this stage.

Does the licence for project development define the responsibility and mechanisms for financing decommissioning costs?

10. Describe economic, environmental, social and political factors that may point against future decommissioning, if this has been recognised as the best solution.

8. According to the Regulations for Reservoir Downgrade and Scrap (http://fxkh.mwr.gov.cn/zcfg/20050804/200402050 075.htm ), the PP developed the Emergency Response Plan Scenario for Abnormal Weather and Emergency Response Plan Scenario for Flood Control and Drought Relief.

9. Yes, it does. Once the project owner obtains the project development right, the responsibility and mechanisms for financing decommissioning costs will be automatically covered by the project owner.

- FSR & AFSR

9. In China, once the project owner obtains the project development right, the responsibility and mechanisms for financing decommissioning costs will be automatically covered by the project owner. The project owner will commission a qualified institute to demonstrate the feasibility first and submitted to authority for approving before decommissioning, and the Regulation especially request the report shall include financing decommissioning costs.

10. For the decommissioning, according to the regulations (Trial) for reservoir downgrade and scrap, the project owner will commission a qualified institute to demonstrate the relevant issues first and

- FSR & AFSR

10. From reviewing the available documentation, the arrangements after the project is decommissioned are not specified, and there is no such requirement in China.

China Environmental United Certification Center Co.,Ltd

- EIA & AEIA

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

submitted to authority for approving before decommissioning. But no such plan on decommissioning at this stage. On the other hand, the FSR and EIA of the projects are approved by the authority. Validator’s Conclusions concerning Priority 3: Considered Priority 3 as conformity. 4. Sustaining Rivers and Livelihoods

4.1. Water use ratio3 Water use ratio (ratio of natural flow, agricultural water, industrial water, domestic water…) including:

population of the river basin area (106 inhabitants):

FSR

EIA

WRAR

0.1419x106 inhabitants; 1.

population of the river basin area (106 inhabitants);

natural mean flow (km3/year): 4.57272km3/year;

natural mean flow (km3/year); demand (km3/year);

demand (km3/year):

water use ratio (%);

comparison of water demand with natural mean flow;

storage capacity (km3);

annual water consumption by type of users (hm3/year): agricultural and farming, domestic use, industrial use

All these have been verified by the FSR and EIA and Water Resources Assessment Report Which were approved by local authorities and confirmed to be correct.

0.2481176k m3/year; 4.

water use ratio (%): 3.5%;

comparison of water demand with natural mean flow: 0.05%;

Water Use Ratio - an environmental indicator which refers to the withdrawal of water for irrigation, industry, household use… A ratio of 25% or higher is generally an indicator of water stress. Important water demanding activities affect seriously its quantity and in consequence the availability of water resources. Some of these driving forces are urbanization, industry and agricultural production. The increase in impervious surface has the effect of reducing water infiltration and aquifer recharge

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

storage capacity (km3): not available;

annual water consumption by type of users (hm3/year): agricultural and farming=15,429 hm3/year, domestic use=2,060.1 hm3/year, industrial hm3/year.

4.2 Impact Assessment (Note: both positive and negative impacts should be included here)

use=7,322.66

4.2 Based on < Environmental Protection Law of PRC>, <Environment Impact Assessment Law of PRC> <Environmental Protection Regulation of Construction Project>, <Environmental Protection Classification Management Catalogue of Construction Project> and <Chongqing Municipality Environmental Protection Regulation>, the environmental impact assessment was performed by Chongqing Research & Design Institute of Sino-Coal International Engineering Group in Sep. 2005.

4.2.1. Environmental Impacts

4.2.1.

- FSR & AFSR

Describe environmental impacts of the project (including impact on water quality (temperature,

Main positive impacts of the project:

- EIA & AEIA

What Impact Assessments have been carried out and on which regulations were they based on? – Describe the major impacts in each of the following categories and the mitigation measures for negative impacts:

China Environmental United Certification Center Co.,Ltd

EIA & AEIA

The description of environmental impacts on air quality, water quality, soil, noise, and biodiversity is in the EIA which was carried out by Sino-coal International Engineering Group Chongqing Design 31

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

oxygen, etc.), soil, air quality, GHG emissions, biodiversity, habitats, risk of erosion caused by inundation etc.)

1. The sustainability of power generation of the Central China Grid, the reduction of local power shortage, as well as environmental and social benefits and employment opportunities.

& Research Institute and approved by Chongqing Environmental Protection Bureau.

The relevant documents were checked on the site.

2. In the longer term, the project will increase local financial revenues and promote local economic development while at the same time stimulating the development of several industries including the building materials industry, construction industry. 3. The project will generate electricity from renewable energy and replace the common use of coal-fired thermal power which will significantly reduce the air pollution. 4. The project will be beneficial to the environment and sustainable economic development in the surrounding area, developing transportation and communication conditions. Besides, the construction and layout of a new residential area as well as infrastructure will be improved compared to the current situation. Main negative impact of the project: 1. Water quality Major pollutants in the waste water China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

resulted from project construction and operation phases include SS, COD, BOD5, NH3-N.The waste water will be drainage after biological treatment so as to meet the Waste Water Drainage Standard (GB8978-96). Hence, the project will only bring minor impact on Youshui River and downstream water users. In addition, according to the EIA, the project will not cause temperature changes on the surrounding water courses and concentration of dissolved oxygen will not change too much as well. 2. Air quality and noise Impacts on air quality mainly come from waste gas of onsite transportation and construction dust during the construction phase. The project developer will adopt effective measures to minimize such impact and therefore, the negative impact on air quality is considered minor. Noise is also resulted from the construction phase. Project developer will choose proper time to operate so as to minimize noise pollution to nearby residents. 3. Water and soil conservation The construction of the Youchou Hydropower Station will occupy and disturb a total area of 621.06 hm2. Additional soil and water losses during the construction period and China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

operation period amount to 22,500 ton while soil and water losses caused by waste slag amount to 252,400 ton. The total soil and water losses as a result of the project amount to 274,900 ton. For the soil and water losses caused by project construction several preventive structures will be constructed including drainage ditches, a debris retaining dam and sedimentation tanks as well as other measures including shortening the unprotected slag stacking period and greening of the area. The additional cost for the prevention of water and soil losses amounts to 7,808,800RMB. 4. Biodiversity Since there are not so many rare and protected species in the project area, the project implementation will not cause major impacts on the biodiversity. 4.2.2. Environmental Flow Assessment 1.

Describe how the environmentally safe minimum flow has been determined. Describe the measures taken to minimise the impact of reduced flow in the affected river.

1. The minimum flow is determined according to the approved Water Resources Assessment Report, in which the minimum flow is 3m3/s 2. The outlet water level is overlap with the reservoir level of the downstram station; besides, Youshui River has many branch to support the flow, therefore, there is little relevant

China Environmental United Certification Center Co.,Ltd

FSR

EIA

WRAR

1. In the approved Water Resources Assessment Report of this project, the minimum flow is 3m3/s.

、

2 The EIA (environmental impact assessment) has stated no potential negative impact by the hydropower station. . This has been verified through on-site visit.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

impact.

、

Describe the measures taken to maintain ecosystems, productive fisheries and other aqua-cultures downstream and upstream.

3. The outlet water level is overlap with the reservoir level of the downstram station; besides, Youshui River has many branch to support the flow, therefore, there is little relevant impact. Moreover, the project establishment raises the water surface level, and increase variety of the life-forms and improves the biological system. The establishement much improves the local fishing sustainable development by fishing capacity building. On the other hand, the reservoir establishment supports the local water cultural, such as, Dragon-boat race, etc.

3 This has been verified through reviewed relevant documents such as FSR and EIA.

Describe the activities the project developer will undertake before flooding the land (e.g. clearing of vegetation or other preparations).

4. A reservoir clearing process is implemented before reservoir is filled in according to the regulation.

4. This has been verified through on-site reviewed with the PP.

Describe any other compensatory measures addressing environmental impacts of the project

5. some compensatory measures adopted:

5. By verified on-site, the measures include more than 11million RMB for the flooded vegetation as the recovery charge, more than 1.5million RMB for the compensation to the flooded water conservancy facilities and cultivated land are already in place.

a) pay 11million RMB and more for the flooded vegetation as the recovery charge; b) Pay 1.5million RMB and more for the compensation to the flooded water conservancy facilities and cultivated land. 4.2.3.

Social Impact Assessment

1. The main positive impacts of

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FSR

1. All of social impacts of the project could be

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

Describe social impacts of the project (including resettlement, impacts on other land or river use e.g. fishing, agriculture, hunting and use of other types of natural resources and including benefits to individuals and communities)

Youchou hydropower project are: (1) continuous provision of clean electricity and hence strong support to power supply of Chongqing Municipality; (2) improve living conditions of the region and attract foreign investment opportunity; (3) facilitate agricultural, industrial as well as economic development of the region; (4) improve the local fishing development; (5) offer the good opportunities for local national culture development; (6) improve the local schools, life and transportation conditions; (7) offer the good opportunities for local tourist development, etc. The main negative impacts of the project are: (1) 359.086hm2 cultivated land will be inundated due to the project and hence cause 2650t reduction on food production; (2) 4653 people will be resettled as a result of land expropriation. For the negative impacts, the project developer will carry out the following measures to alleviate them: (1) develop an immigrants resettlement and production plan to help maintain and increase their income; (2) adjust structure on plantation industry and improve production per unit area. After such measures, the project will not cause too much impact on the overall agricultural income of the county.

China Environmental United Certification Center Co.,Ltd

EIA

FSR

- CLARP

verified on-site. Social impacts of the project were described in FSR and EIA. FSR and EIA were approved by local authorities. The information obtained from on-site review shows that land occupation has been compensated, and water supply systems of Youchou town has been built and it of Daxi towm is building, and built new roads to improve the traffic around towns. The project involved 4635 resettled individuals. We could assure that the sum of compensation was sufficient to build new houses which offer more amenities and quality of life than the old houses. The compensation payments were already transferred and the new houses have been already built and the mass of the relocates have moved already in new house (partially the interior is not yet completely ready). The social environment has been partially changed. All interviewed persons stated that the new home is better and that their living environment has been considerably improved.

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

Describe any identified health impacts due to the project.

2. Health impacts during construction phase:

- EIA

2. No health impacts to local villagers. This has been identified due to the project through on site interview.

3. There is no religious heritage in this area, and cultural heritage is not affected by this project, this is verified through on site visit.

The viral hepatitis and bacteria dysentery may be identified as major infectious disease during construction. Precautionary measures have been taken to prevent its large scale spread, including set up staff profiles and carry out investigation in time; enhance health education; regularly clear-up and sanitize of the project site. Moreover, the hospital can help on disease control during project construction and its the infrastructure can meet the needs for disease prevention. Health impacts during operation phase: The viral hepatitis and bacteria dysentery are also identified as major infectious disease during operation phase. Sanitation station will be established during operation phase so as to help with health examination for the immigrants. It has been recognized that, the project will improve the overall sanitation condition of the affected region and it will bring benefits to the stakeholders in the long term. 3.

Describe impacts on religious and cultural heritage.

3. According to the EIA, no cultural heritage is found within the project area.

China Environmental United Certification Center Co.,Ltd

EIA

WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

Describe the liability provisions safeguarding the implementation of the planned measures.

FSR

EIA

5. Yes, the project is designed from a sustainable development point of view: (1) the project choice and site selection considering the natural and geological factors, and in the meantime, it with a consideration of environment impact to the local residents; (2) design of the project is in accordance with the whole river basin development plan which have taken well consideration of sustainable development (3) project information was distributed to stakeholders during the EIA phase and therefore, special needs of stakeholders have been identified and considered by project developer at very early stage. On the other hand, both EIA and FSR of the project have been approved..

FSR & AFSR

5. It was confirmed through on-site visit.

EIA & AEIA

FAR1

WRAR & AWRAR

The check and acceptance of environmental protection should be verified during the first verification.

1. The project design has considered

FSR

Based on the on-site investigation and documents

4. (1) The local authority will perform onsite verification on reservoir clearing and safety compliance of the dam before reservoir filling;

4. The implementation of the relevant measures was supervised by local authorities during the construction period, and verified by validation team.

(2) the environmental protection bureau will monitor the planned measures in the EIA; (3) The project developer will work closely with local fishery and agricultural authority and enhance protection and monitoring on these resources. 5.

Is the project planned in a responsible way in order to sustain livelihoods and the environment?

4.3 Cumulative Impacts

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WCD Compliance Report of â&#x20AC;&#x153;Chongqing Youyang County Youchou Hydropower Station Projectâ&#x20AC;?

Describe the cumulative impacts of all hydrological structures existing in the river basin using variables such as: 1.

flow regime,

water quantity,

productivity,

water quality species composition of different rivers in the same river basin

the normal flow regime of the river basin, therefore, the project establishment will little impact to the flow regime; 2. The project is only designed for power generation, and the evaporative capacity is also little; therefore, the project will not impact the water quantity;

EIA

WRAR

review, the validation team considers there is no impact on annual average river flow, but there is impact on flow distribution. As the water level of reservoir rises and storage increased, and station will annually put fish fries in it, thus its productivity is improved.

3. The project design is designed as adjustable hydropower station, and does not supply water and irrigation. It only alters the runoff distribution in a quarter without the amount loss. The tail water is still returned into the river. Therefore, it will not impact the river productivity; 4. Youshui River has many branches. After the station establishment, the fishes like race and gap will transfer to the branches; the fishes like tranquil flow will stay. And the project owner also saves the original fishes by breeding and then restoring them into the river. Meanwhile, since there have been some other stations established on the river and the relevant measures have also been considered, the project is not the main obstruction for the migrant ional fishes.

Validatorâ&#x20AC;&#x2122;s Conclusions concerning Priority 4: Considered Priority 4 as conformity. 5. Recognising Entitlements and Sharing Benefits

China Environmental United Certification Center Co.,Ltd

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

Are Mitigation, Resettlement and Development Action Plans (where applicable - including commensurate compensation packages) in place? Provide details:

Demonstrate that the construction of the plant did not lead to worsening of the living conditions of the local residents and resettled families

Were compensation and benefit agreements planned in consultation with affected groups?

Yes.

1. The relevant compensation and resettlement agreement is signed according to the national and local laws and the local regulations and standards which established according the level of economic development in local and have also called for the stakeholders opinions before issued. And the project also established many public roads, helped to build new public facilities and programme, etc. All stakeholders consider their life conditions better than before. 2. Yes, The compensation and benefit agreements are planned in consultation with affected groups.

FSR

EIA

AWRAR

CLARP

ASIS

Through on-site visit and interviews with stakeholders, there is a Mitigation, Resettlement and Development Action Plans (where applicable including commensurate compensation packages)

1. The project owner has provided the evidence of the construction of road and drinking water feeding pipe and were verified through on-site interview with the project owner and local people and visit. All interviewed persons stated that the new home is better and that their living environment has been considerably improved.

2. The Compensation Agreements of Land Occupation was signed between the project owner and affected villagers. Before the signing of compensation agreements, the project owner conducted a survey and analysis on the particular case of affected stakeholders and held meeting to consult with them and collect the opinions on the compensation, this was verified by on site visit.

What standards were the measures based on? (e. g. national standards or other)

3. The measures are based on “Land Administration Law of the Peoples Republic of China”, “Law of the Peoples Republic of China on Land Contract in Rural Areas”, “Land

China Environmental United Certification Center Co.,Ltd

3. The compensation standard was in accordance with national and local legal and regulations. This was verified by the validation team on-site visit and interviews with local officers.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

Requisition and Immigration Resettlement Regulations on Large and Medium Hydro Projects Construction”, etc, 4.

Were the affected people satisfied with the compensation packages?

4. All stakeholders consider their life conditions better than before.

4. Through on-site interview, the validation team considered that they were satisfied with the compensation packages.

Benefits for the affected people (individuals and communities): In what way will the affected local and indigenous population’s livelihoods be improved due to the project?

5. a) The living condition is improved which including housing, drinking water, and eclectic supply;

5. Through on-site visit, apart from land occupation compensation and building Daxi new town and resettlement houses of the residents, the project owner built roads which are the channels to outside of Daxi towm and Youchou town, and built a drinking water system for villagers of Youchou town, In addition, the project provided employment opportunities for local people during construction and operation period. At the same time, the station boosted the prosperity of the local market. All of these can improve local livelihood.

b) The traffic conditions is improved by new-built roads and bridges, 4 roads (1. Bishanba to Daxi village; 2. Yuexiba to Laozhai village; 3. Dagongqiao to Changling village; 4. Toudaohe to Zhangjiaba) and 5 bridges (Xianggou, Gangou, Zhangjiaba, Zhuxingba, Wangjiaba) are built to convenient for the people; c) The culture life is more plentiful due to living in concentrated

Validator’s Conclusions concerning Priority 5: Considered Priority 5 as conformity. 6. Ensuring Compliance 6.1. Compliance measures: 1.

What will be done to ensure that relevant laws, regulations, agreements (including resettlement and compensation agreements) and recommendations are followed?

1. The official agreements are signed between the stakeholders and the local government commissioned on behalf of the project owner. And a special resettlement management office was established to implement the agreement. And the compensation is paid through the

China Environmental United Certification Center Co.,Ltd

FSR

EIA

AWRAR

CLARP

1. The construction of the project is based on the approved FSR and EIA. Before the project begins operation, the project owner shall apply for the acceptance of safety to local safety administration and supervise the safety operation condition.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

bank remittance not by cash. On the other hand, the agreement is legally binding.

- ASIS

When the project put into operation, Chongqing Environmental Protection Bureau will conduct the acceptance of environmental protection and be responsible for the environmental monitoring when the construction is finished. A special resettlement management office was established to implement the agreement.

Are the compensation agreements legally binding – through treaties, administrative acts or other safeguards?

2. Yes, the agreement is legally binding, and implement by the resettlement management office of Youyang County as witness and safeguard.

2. In China, Compensation Agreement is legally binding.

Is the cost of the compensation package included in the financial plan?

3. Yes, the cost of compensation package is listed in FSR.

3. The cost of compensation package has been included in the FSR and has been verified by the validation team. The cost of the compensation package already reckoned in the total construction cost.

Does the project developer already operate other hydroelectric power stations? If so, have there been any conflicts between the project developer and stakeholders related to the development, operation and compensatory measures related to these projects? If so, describe the cause of the conflict and how it was resolved.

4. No, the project is the first project which is operated by the project owner.

4. It was confirmed by on-site visit. The project developer didn’t develop any other hydropower station in this basin.

6.2. Monitoring and evaluation during crediting period: 1.

Describe conditions in place for monitoring and evaluation of environmental and socio-economic impacts of the project.

1. The environmental monitoring plan stated in the EIA will be monitored by local environmental protection bureau (periodic and non-periodic ).

China Environmental United Certification Center Co.,Ltd

- EIA & AEIA

1. Through on-site interview, the requirements are checked by the respective local authorities.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

An annual monitoring report on the water and soil conservation in construction period will be made, and the aspects of inconsistent with the contents of the monitoring plan will be recommended to correct. 2.

What provisions have been made to ensure that all measures not yet implemented at the time of validation will be put in place as appropriate, and monitored (for example through an independent auditing panel or auditor, or through self-auditing etc.)?

2. A dedicated employee will be appointed to follow the implementation of the plan stated in EIA. On the other hand, an acceptance of dam safety and environmental protection and recovery will be required by the local safety administration department and environmental protection bureau, when the project put into operation.

EIA & AEIA

2. The implementation of the project is based on the approved FSR and EIA. Before the project begins operation, the project owner shall apply for the acceptance of safety and environmental protection of local safety administration and environmental protection bureau. When the project put into operation, the Chongqing Environmental Protection Bureau will be responsible for the environmental monitoring and conduct the acceptance of environmental protection when the construction is finished. Meanwhile, the local administration of safety will also supervise the safety operation condition.

Validator’s Conclusions concerning Priority 6: Considered Priority 6 as conformity. 7. Sharing rivers for peace, development and security. Does the project have trans-boundary impacts? - If so, give details of agreement(s) between affected countries, considering international recommendations for trans-boundary water projects and describe how this affects the project.

Not applicable, since the project is not located trans-boundary.

China Environmental United Certification Center Co.,Ltd

FSR

EIA

WRAR

Through on-site visit, the project will have no trans-boundary impacts.

WCD Compliance Report of “Chongqing Youyang County Youchou Hydropower Station Project”

Validator’s Conclusions concerning Priority 7: Considered Priority 7 as conformity. Validator’s assessment as to how the project respects the seven strategic priorities outlined in the World Commission on Dams November 2000 Report “Dams and Development – A New Framework for Decision-Making”

The guidelines of the World Commission on Dams (WCD) are comprehensive and have to be seen in some cases more as goals than concrete requirements. Taking this into account, we can confirm as result of our compliance assessment that the Chongqing Youshui River Youchou Hydropower Stations is in compliance with the main principles of the seven priorities. The villagers affected by the project have been compensated according to the Chinese legal requirements; the compensation standard for land occupation is in compliance with the authorized documents issued by Authority. The negative impact on the environment (local climate, aquatic biodiversity and terrestrial species) is negligible. The measures implemented by the project owner to protect the ecosystem are in compliance with relevant regulations issued by authority. The ecological affection will be monitored by the local government. Name and Function: ZHANG Ruizhi Contact details: WANG Yanping

WANG Yanping (Team leader and member ) Tel: +86(10)84665052

Fax:+86(10)84665059

E-Mail: wangyp@mepcec.com

Address: No.1 Yuhuinanlu, Chaoyang District, Beijing, China, 100029 Company/validating entity: China Environmental United Certification Center Co., Ltd Date of validation of the Compliance Report: 05/05/2010

China Environmental United Certification Center Co.,Ltd

PROJECT DESCRIPTION: VCS Version 3

CHONGQING YOUYANG COUNTY YOUCHOU HYDROPOWER STATION PROJECT Document Prepared By Beijing Cronus Technology Consultancy Centre

Project Title Version Date of Issue Prepared By Contact

v3.1

Chongqing Youyang County Youchou Hydropower Station Project 3 24-11-2012 Beijing Cronus Technology Consultancy Centre Tel: +86 10 62258766

PROJECT DESCRIPTION: VCS Version 3 Table of Contents 1 Project Details ......................................................................................................................... 3 1.1 Summary Description of the Project ................................................................................. 3 1.2 Sectoral Scope and Project Type ...................................................................................... 3 1.3 Project Proponent .............................................................................................................. 3 1.4 Other Entities Involved in the Project............................................................................... 3 1.5 Project Start Date .............................................................................................................. 3 1.6 Project Crediting Period .................................................................................................... 3 1.7 Project Scale and Estimated GHG Emission Reductions or Removals ............................ 3 1.8 Description of the Project Activity ................................................................................... 4 1.9 Project Location ................................................................................................................ 4 1.10 Conditions Prior to Project Initiation ............................................................................ 4 1.11 Compliance with Laws, Statutes and Other Regulatory Frameworks........................... 4 1.12 Ownership and Other Programs .................................................................................... 4 1.12.1 Right of Use............................................................................................................ 4 1.12.2 Emissions Trading Programs and Other Binding Limits ....................................... 4 1.12.3 Participation under Other GHG Programs ............................................................. 4 1.12.4 Other Forms of Environmental Credit.................................................................... 5 1.12.5 Projects Rejected by Other GHG Programs ........................................................... 5 1.13 Additional Information Relevant to the Project ............................................................ 5

v3.1

PROJECT DESCRIPTION: VCS Version 3 1

PROJECT DETAILS

1.1

Summary Description of the Project Chongqing Youyang County Youchou Hydropower Station Project (hereafter referred to as “the Project”) is a grid-connected hydropower plant with an accumulation reservoir with a surface area of 7.7km2. The Project reduces greenhouse gas emissions by generating carbon neutral power that displaces carbon intensive power from Central China Power Grid (hereafter referred to as “the grid”). The total installed capacity of the Project is 120 MW (2×60MW).The Project uses hydro power generation technology for electricity generation and transmission.

1.2

Sectoral Scope and Project Type The Project falls in the sectoral scope 1: energy industries (renewable-/non-renewable sources). The Project is not a grouped project.

1.3

Project Proponent Chongqing Youshui Hydropower Development Co., Ltd. (Project Owner) Address: Youchou town, Youyang county, Chongqing Municipality, China, 408809 Tel: 86-23-75414057 Fax: 86-23-75414057

1.4

Other Entities Involved in the Project There is no any other project participant(s).

1.5

Project Start Date 21-12-2008

1.6

Project Crediting Period 21-12-2008 to 20-12-2010, in total 730 days

1.7

Project Scale and Estimated GHG Emission Reductions or Removals Project

v3.1

Large project



Years

Estimated GHG emission reductions or removals (tCO2e)

2008 (21-12-2008 to 31-12-2008)

10,024

PROJECT DESCRIPTION: VCS Version 3 2009 (01-01-2009 to 31-12-2009)

332,611

2010 (01-01-2010 to 20-12-2010)

322,587

Total estimated ERs

665,222

Total number of crediting years

Average annual ERs

332,611

1.8

Description of the Project Activity

1.9

Project Location The Project is located in the Youchou town, Youyang county, Chongqing Municipality, China. The exact location of the project is defined using GPS coordinates 28째58'01''N latitude, 109째 08'51''E longitude.

1.10

Conditions Prior to Project Initiation The scenario existing prior to the start of the implementation of the project activity is same as the baseline scenario as described below. Electricity delivered by the project activity to the CCPG would have otherwise been generated in grid-connected fossil fuel based power plants resulting in Green House Gas (GHG) emissions in the absence of the project activity. The project activity therefore, by displacing relatively carbon intensive grid electricity (primary emission source with a Combined Margin Emission Factor of 0.85285 tCO2/ MWh) with renewable hydroelectricity, reduces GHG emission that would have occurred in the baseline.

1.11

Compliance with Laws, Statutes and Other Regulatory Frameworks

1.12

Ownership and Other Programs

1.12.1

Right of Use

The business license and operation license are evidences for right of use. The approval of EIA and PDR are evidences for legislative right. Besides, the purchasing contract of turbine generator and the power purchase agreement are the evidences for the ownership of the plant, equipment and process generating.

1.12.2

Emissions Trading Programs and Other Binding Limits

The project proponent chose a clear VCS crediting period from 21-12-2008 to 20-12-2010 which is not part of any emissions trading programs or any other binding limits.

1.12.3

Participation under Other GHG Programs

The Project has been registered as a CDM project in UNFCCC on 21-12-2010 and the registration number is 3961.

v3.1

PROJECT DESCRIPTION: VCS Version 3 1.12.4

Other Forms of Environmental Credit

The project proponent chose a clear VCS crediting period from 21-12-2008 to 20-12-2012 which has not created another form of environmental credit.

1.12.5 1.13

Projects Rejected by Other GHG Programs

Additional Information Relevant to the Project Eligibility Criteria N.A. Leakage Management N.A. Commercially Sensitive Information N.A. Further Information N.A.

v3.1

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

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 project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan

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

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SECTION A. General description of project activity A.1

Title of the project activity:

Project title: Chongqing Youyang County Youchou Hydropower Station Project PDD Version: 3.0 Completion date PDD: 20/07/2010 Revision History: Version 1.0: Submitted for host country approval Version 2.0: Submitted for validation / global stakeholder comments Version 3.0: Respond to Draft Validation Report

A.2.

Description of the project activity:

The Chongqing Youyang County Youchou Hydropower Station Project involves the construction of a new hydro electric power project at the main stream of Youshui River near Youchou Township of Youyang County, Chongqing Municipality, China. The main objective of the project is to generate power from clean renewable hydro power in Chongqing Municipality and contribute to the sustainability of power generation of the Central China Grid. The scenario prior to the implementation of the project activity is that electricity delivered to the grid is generated by the operation of grid-connected power plants and by the addition of new generation sources, which is identical with the baseline scenario. Coal-fired power generation is currently the dominant power supply option within the Central China Grid. By displacing coal-fired power generation with clean renewable energy, the project leads to the reduction of CO2 emissions into the atmosphere. Total annual Green House Gases emissions reduction is estimated to be of 332,611tCO2e annually. The project scenario falls within sectoral scope 1 - Energy Industries, Electricity generation from hydropower- and consists of the construction of a dam with a maximum height of 62.2 meters which includes flood gates and sand sluices. The powerhouse is integrated in the dam with the turbines installed at the base of the dam in the river bed, providing a total capacity of 120 MW. Average water flow at the project location is 145m3/s, while the head available for power generation is 43 meters. The expected full load operating hours are 3,267 hours annually, the power load factor is 0.3729 and expected net annual power supply to the grid is 390,000 MWh. The power generated by the proposed project will be routed via an on-site step-up station to the 220 kV Youyang transformer station which is an integral part of the Chongqing Municipality Power Grid. The baseline scenario is the same as the scenario existing prior to the start of the project activity mentioned above, as the project is the construction of a new power plant. The project activity‟s contributions to sustainable development are:  Reducing the dependence on exhaustible fossil fuels for power generation;  Reducing air pollution by displacing coal-fired power plants with clean, renewable power;  Reducing the adverse health impacts from air pollution;  Reducing the emissions of greenhouse gases, to combat global climate change;

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



page 3

Contributing to local economic development through employment creation.

This project fits with the Chinese government objective to reduce the dependence on exhaustible fossil fuels for power generation, make the energy sector in general and the power sector in particular more sustainable. A.3.

Project participants:

The parties involved in the project are shown in Table A.1: Table A.1 Project participants Name of Party involved Private and/or public entity(ies) project ((host) indicates a host participants (as applicable) Party) Private entity: Chongqing Youshui Hydropower China (Host) Development Co., Ltd. AES Carbon Exchange, Ltd. The Netherlands

the Party involved wishes to be considered as project participant (Yes/No)

No No

For more detailed contact information on participants in the project activities, please refer to Annex 1. A.4.

Technical description of the project activity: A.4.1. Location of the project activity: A.4.1.1.

Host Party(ies):

People‟s Republic of China A.4.1.2.

Region/State/Province etc.:

Chongqing Municipality A.4.1.3.

City/Town/Community etc:

Youchou Township, Youyang County of Chongqing Municipality A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): The Youchou Hydropower Station is located at the main stream of Youchou River near Youchou Township of Youyang County, Chongqing Municipality, China. It is 73 kilometers northeast of Youyang county seat. The site location‟s coordinates are east longitude of 109º08‟51” and north latitude of 28º58‟01”.Figure A.1 shows the location of the project.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM â&#x20AC;&#x201C; Executive Board

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Figure A.1: Map of the project location

A.4.2. Category(ies) of project activity: The project activity falls within Sectoral Scope 1: Energy Industries. - Electricity generation from renewable energy (hydropower) A.4.3. Technology to be employed by the project activity: The project will install conventional hydro power technology and equipments which will be domestically manufactured, therefore the project does not relate to technology transfer. The technology employed has been used in China before and its implementation at the proposed location received approval by the Environment Protection Bureau as further discussed in section D. The scenario prior to the implementation of the project activity is that electricity delivered to the grid is generated by the operation of grid-connected power plants and by the addition of new generation sources. Coal-fired power generation is currently the dominant power supply option within the Central China Grid.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM â&#x20AC;&#x201C; Executive Board

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Generation data within the Grid are monitored and published by Chinese authorities through the Electric Power Yearbook and the Energy yearly. In accordance with the applied methodology, the greenhouse gases involved in the project activity consist of CO2 emissions from electricity generation in fossil fuel fired power plants that is displaced due to the project activity. The project is a new hydro-electric facility with a medium head of 43 meters with limited storage capacity. The technology employed is a conventional integrated dam-powerhouse design. The structure consists of a dam with a maximum height of 62.2 meters, including water intakes on the left hand side, a power house located at the base, and a set of 5 floodgates towards the right bank. The reservoir will have a total surface area of 7.7 km2. The power density of the project is 15.6 W/m2 (see section B.6.1 for the calculation). The choice of turbines for this project reflects the medium head nature of the project. The project will install two Francis turbine/generator sets with an individual capacity of 60MW. The specific technical data of the turbines / generators are listed in Table A.2. The units will be manufactured by Zhejiang Fuchunjiang Hydropower Equipment Manufacturing Co. Ltd. Table A.2 Technical data of the turbine / generator units (specifications are per unit) Turbines 1& 2 Nominal flow 161.3 m3/s Nominal power 61.86 MW Generators 1 & 2

Nominal power

60 MW

Frequency

50Hz

The baseline scenario is the same as the scenario existing prior to the start of the project activity mentioned above, as the project is the construction of a new power plant. The spatial extent of the project boundary includes all power plants connected physically to the electricity system that the CDM project power plant is connected to, including the project power plant itself. Data for installed capacity and power generation within the Central power Grid are provided in Table B.8, section B.6.1 Implementation schedule: An indicative implementation schedule of the proposed project activity is indicated in Table A.4 below (the dates are best estimates). Table A.3 Start date June 2006 June 2006 Nov. 2007 Dec. 2007 May 2008

Implementation schedule proposed project activity End date Activity March 2008 Construction of the dam and water intake July 2008 Construction of the power house April 2008 Construction of on-site transformer station and transmission lines Dec. 2008 Installation, commissioning and operationalization of first turbine/generator Jan.2009 Installation, commissioning and operationalization of second turbine/generator

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Estimated amount of emission reductions over the chosen crediting period:

A 7-year renewable crediting period (renewable twice) is selected for the proposed project activity. The estimation of the emission reductions in the crediting period is presented in Table A.5. Table A.4 The estimation of the emission reductions in first crediting period Year Year 1: 01/01/2011 – 31/12/2011 Year 2: 01/01/2012 – 31/12/2012 Year 3: 01/01/2013 – 31/12/2013 Year 4: 01/01/2014 – 31/12/2014 Year 5: 01/01/2015 – 31/12/2015 Year 6: 01/01/2016 – 31/12/2016 Year 7: 01/01/2017 – 31/12/2017 Total estimated reductions (tonnes of CO2e) Total number of crediting years in 1st crediting period Annual average over the 1st crediting period of estimated reductions (tonnes of CO2e)

The estimation of annual emission reductions (tCO2e) 332,611 332,611 332,611 332,611 332,611 332,611 332,611 2,328,277 7

A.4.5. Public funding of the project activity: There is no public funding from Annex I countries available to the proposed project.

332,611

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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 project activity: Baseline methodology: Approved consolidated baseline and monitoring methodology ACM0002 (Version 10): Consolidated baseline methodology for grid-connected electricity generation from renewable sources (approved on 47th CDM EB conference on 28th of May, 2009) This methodology draws upon the following tools:  Tool for the demonstration and assessment of additionality (version 05.2)  Tool to calculate the emission factor for an electricity system (version 02)  Tool to calculate project or leakage CO2 emissions from fossil fuel combustion (version 02) For more information on the baseline and monitoring methodology we refer to the UNFCCC website: http://cdm.unfccc.int/methodologies/PAmethodologies/approved.html

B.2 Justification of the choice of the methodology and why it is applicable to the project activity: The baseline and monitoring methodology ACM0002 is applicable to the proposed project, because the project meets all the applicability criteria stated in the methodology and associated tools:

   

The proposed projects involve the installation of a new hydropower plant at a site where no renewable power plant was operated prior to the implementation of the project activity (Greenfield plant). The project activity results in new reservoir and the power density of the power plant, as per definitions given in the Project Emissions section, is greater than 4W/m2. (See section B.6.1. for detailed calculations) The project does not involve an on-site switch from fossil fuels to a renewable source. The methodology will be used in conjunction with the tools referred to above.

The latest version of ACM0002 (Version 10) has been applied. B.3.

Description of the sources and gases included in the project boundary

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. Emission sources and gases included in the project boundary for the purpose of calculating project emissions and baseline emissions are determined in the methodology, and shown in Table B.1 below.

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Project Activity

Baseline

Table B.1 Inclusion of gases and sources in the calculation of the emission reductions Source Gas Included? Justification / explanation CO2 emissions from CO2 Yes Main emission source electricity generation in fossil CH4 No Minor emission source fuel fired power plants that is displaced due to the project N2O No Minor emission source activity Emissions of CH4 from the reservoir

CO2

Minor emission source

CH4

Yes

Main emission source

N2O

Minor emission source

In line with the methodology, the greenhouse gasses accounted for are CO2 emissions from electricity generation in fossil fuel fired power plants that is displaced due to the proposed project activity and CH4 emissions from the reservoir. As will be shown in Section B.6.1, the power density is greater than 10 W/m2, and therefore reservoir emissions (and hence project emissions) have been assumed at zero, and do not result in deductions from the proposed project emission reductions, in line with the methodology. Methodology ACM0002 refers to the „Tool to calculate the emission factor for an electricity system‟ for the definition of an electricity system. According to this tool, the relevant grid definition should be based on the following considerations: 1. Use the delineation of the project electricity system and connected electricity system as provided by the DNA of the host country if available; or 2. Use, where DNA guidance is not available and the electricity system does not have spot markets for electricity or where it is impossible to determine the operational rate of the transmission line, the following definition of boundary: In large countries with layered dispatch system (e.g. state/provincial/regional/national) the regional grid definition should be used. In accordance with the above, the regional grid is selected as the project electricity system, which includes all power plants physically connected to this system. The proposed project activity is connected to the Chongqing Municipality Power Grid, which is part of the Central China Power Grid, which is selected as the project electricity system. The Central China Power Grid includes the Provinces of Henan, Hunan, Hubei, Jiangxi, Sichuan and Chongqing. The Central China Power Grid imports electricity from the Northwest China Power Grid. Accordingly, we have selected the Northwest China Power Grids as the connected electricity system. For ease of reference, when we refer throughout this PDD to Central China Power Grid, this will take account of the emissions associated with the imports of power from the connected electricity system (i.e. the Northwest China Power Grid).

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Figure B.1. Flow diagram of the project boundary

APJ

Reservoir

CH4

Dam

Water diversion structure

Turbine CAPpj Project activity

Generator

Internal consumption

Project boundary

On-site Transformer Station EG facility,y

Power Grid

Flow of water Flow of electricity

CO2

Monitoring variables Emission sources and gases included in the project boundary

B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: The Chongqing Youyang County Youchou Hydropower Station Project is the installation of a new gridconnected renewable power plant. Therefore, the baseline is identified in the methodology and defined as: 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, as reflected in the combined margin (CM) calculations described in the “Tool to calculate the emission factor for an electricity system”. 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):

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The additionality of the project activity is demonstrated using the steps described in the „Tool for the demonstration and assessment of additionality‟ (version 05.2). See UNFCC website: http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-01-v5.2.pdf Step 1. Identification of alternatives to the project activity consistent with current laws and regulations Sub-step 1a: Define alternatives to the project activity The methodology requires a number of sub-steps to provide realistic and credible alternatives to the project activity. There are only a few alternatives that are prima facie realistic and credible in the context of the Central China Power Grid:  Scenario 1: Fossil fuel-fired power generation  Scenario 2: Power generation from wind power or other renewable energy  Scenario 3: The proposed hydropower Station, without the support of CDM  Scenario 4: The same service of power supply is provided from grid (i.e. continuation of the present situation) These alternatives are in accordance with the description of the methodology (the additionality tool requires that the proposed project activity be included as an alternative, without the benefit from CDM). Coal-fired power generation is the dominant power supply option in China. In the case of the Central China Grid, both coal-fired power generation and hydropower are common options. In 2007, coal-fired power accounted for 64.56% of total power generation and hydropower accounted for 35.44% of power generation.1 There is no available wind, solar, geothermal or biomass renewable resource resulting in the same annual power generation at the project location that is financially attractive, scenario 2 is not feasible and cannot be considered as an alternative. Therefore, Scenario 2 is excluded. Sub-step 1b: Consistency with mandatory laws and regulations The second sub-step involves the compliance of the alternatives with all China‟s mandatory applicable laws and regulations. The construction of small-scale power plants with a capacity under 135 MW has been prohibited.2 Scenario 1 is consequently excluded. The proposed project activity is consistent with national policies for environmental protection, energy conservation and sustainable development. However, there are no binding legal and regulatory requirements for this project type. The Renewable Energy Law adopted by the National People‟s Congress on 28 Feb. 2005 encourages and supports renewable-based power generation, but does not stipulate specific goals for local air quality improvement. Scenario 3 and 4 are in compliance with the relevant Chinese laws and regulations. Step 2. Investment analysis

China Electrical Power Yearbook 2008 See General Office of the State Council (2002), Notice of the General Office of the State Council concerning the Strict Prohibition of the Construction of Thermal Power Units with a Capacity of 135MW or Below, Guo Ban Fa Ming Dian (2002) Document No.6. 2

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Sub-step 2a: Determine appropriate analysis method The analysis will be analyzed through Option III of the additionality tool, i.e. benchmark analysis. This method is applicable because:   

Option I: Simple cost analysis, does not apply as the project generates economic returns through the sales of electric power to the grid. Option II: Investment comparison analysis is not used as the most credible alternative scenario (provision of same amount of electricity from the Grid) is not considered an investment. Option III: Benchmark analysis is used as the return on investment relative to the industry benchmark was crucial for the decision to go ahead with the project.

Option III is applicable to the project activity. Sub-step 2b – Option III: Apply benchmark analysis The project faces a barrier to implementation due to the poor returns on investment. To illustrate this, we performed a benchmark analysis in which we calculate the project Internal Rate of Return (Project IRR after tax) of the project and compare the result with the 8% benchmark applied in the Feasibility Study of the Youchou Project3 which is also in accordance with the Interim Rules on Economic Assessment of Electrical Engineering Retrofit Projects. Sub-step 2c: Calculation and comparison of financial indicators For the calculation of the financial indicators for the proposed hydropower project, we used the parameters listed in Table B.2.

Chapter 15 of FSR lists benchmark documents and standards applicable to the project, which consist of “Economic Evaluation Method and Parameters for Project Construction (second edition)”, “Instruction for Feasibility Study of investment project” and “Interim provisions concerning hydropower construction project financial assessment”. Only the latter document provides a benchmark value for hydropower projects, set at 12%, while the 8% benchmark applied in the FSR is in accordance with “Interim Rules on Economic Assessment of Electrical Engineering Retrofit Projects”. This benchmark document is primarily applicable to retrofit projects in the power industry but can be applied more generally to power projects for which no relevant benchmark is available. This benchmark has therefore been applied to projects in the wind power, fossil-fuel fired power and large hydro power (>50MW) sectors as no relevant benchmark existed. Consequently, 8% is applied in this PDD in strict accordance with the FSR, and in keeping principles of conservativeness in the determination of the project financial attractiveness without the revenue from the sale of certified emission reduction.

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Table B.2 Parameters used in the calculation of the project IRR after tax Proposed project Parameters Data Source Installed capacity 120 MW Feasibility Study Report Static total investment 886,460,000 RMB Feasibility Study Report Annual power supply 390,000,000 kWh Feasibility Study Report 1st year: 26,900,000 kWh Annual O & M Cost 1st year: 2,180,000RMB Feasibility Study Report 2 -10 year: 16,180,000RMB 11-30 year:14,230,000RMB Investment horizon 33 years Feasibility Study Report Grid Tariff (VAT incl.) 0.284 RMB/kWh Highest price at the time of investment decision VAT 17% Actual rate Depreciation period 20 years Guoshuifa[2000] 84 Residual rate 5% Guoshuihan[2005] 883 Loan 709,168,000 RMB Feasibility Study Report Interest rate on loan 5.76% Feasibility Study Report Duration of loan 20 years Feasibility Study Report Income tax 33% Feasibility Study Report Expected CER price 8 EUR /tCO2e Market price

The investment analysis compares the internal rate of return (IRR) of the project with the benchmark defined in sub-step 2b. The main results of the investment analysis are presented in Table B.3, where the IRR for the proposed project has been calculated with and without CDM revenues. Table B.3 Main results of the IRR calculations Scenario Project without revenues from the sale of CERs Project with CER revenues (at 8 EUR / tCO2)

IRR 6.55% 8.88%

From the results in Table B.3 it is clear that the return on investment for the Chongqing Youyang County Youchou Hydropower Station Project without the revenues from the sales of CERs is lower than the 8% benchmark that applied in the feasibility study. This demonstrates that the proposed project activity is not a commercially viable option to supply power. The detailed spreadsheet calculations are available to the validator. The suitability of input values: Static investment costs: The Feasibility Study report of the project was designed by Central South Survey & Design Academy of State Grid Company which has authorized design qualification Class A. All data used in IRR originate from the approved FSR which were prepared based on “Economic Evaluation Method and Parameters for Project Construction (Second edition)”, “Instruction for Feasibility Study of investment project” and “Interim provisions concerning hydropower construction project financial assessment”, and approved by the Chongqing Municipality Development and Reform Commission on Jun 30th, 2004. The breakdown of total investment costs is stated in Table B.4.: Table B.4. Static investment costs

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Items

Investment cost in FSR 265,838,300

Civil works Equipments cost and installation

133,354,100

Metal structure equipment and installation Temporary works environmental protection Land flooded compensation and migration Other cost Preparation cost(10% of total construction cost)

45,828,500 53,455,900 6,880,600 215,282,300 111,104,400 54,720,500

Static investment cost4

886,460,000

Actual investment cost 563,107,800 (Turnkey contract )

490,804,300 129,250,000 1,183,162,100

The table above compares total costs as estimated in the Feasibility Study with actual costs incurred at the time of writing the PDD. Furthermore, as indicated in Audit Report 2009 published by Chongqing Wulian Certified Public Accountants, the total investment cost occurred by the end of 2009 is 1,011,234,457 Yuan, which is higher than that of FSR. Therefore, we consider the estimate total investment in FSR is reasonable and conservative to be applied in IRR calculation. Annual power supply The power supply is calculated in Chapter 15 in FSR. The calculation formulation is listed below: Annual Power Supply = Electricity generation ×(1-auxiliary power consumption rate) =392,000,000 kWh ×(1-0.5%) ≈ 390,000,000 kWh Grid tariff (VAT incl.): Due to differences on resource distribution and investing scale in Chongqing region, Chongqing municipality did not establish a bus-bar tariff for all hydropower projects5, different project has a different tariff, according the official document in Chongqing Municipality “The Notice on Chongqing Price Bureau's Implementation of the Grid Tariff Adjustment Made by NDRC6” for normal hydropower projects and a statistical table7 made by the Regulatory Authority of Centre China Grid, the highest tariff issued to hydropower project at the time of investment decision in Chongqing is 0.284 Yuan/kWh(VAT incl.). This tariff applied in IRR calculation is conservative and suitable. Annual Operation and Maintenance costs: The table below compares O&M costs as estimated in FSR with O&M costs recalculated based on Official Guidance from the Chinese Government. Table B.5 Annual Operation and Maintenance costs recalculated in accordance with official guidance Cost item Repair Cost

Recalculation Amount (104RMB) 938

Justification 1% of fixed assets

The sum up of all break up items in total static investment cost is 886,464,600, however the value in detailed break up table of Feasibility Study is round to 886,460,000. To be consistent and conservative, we apply 886,460,000 here and in IRR calculation. 5

http://www.cqpn.gov.cn/gb/news/news_detail.asp?id=35273

http://www.cqwater.gov.cn/sjym/sjym.aspx?id=109&table=Water_sxzhl&dy=1

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Social insurance

30 people * 23,292RMB/year(based on published 2005 salary standard);Welfare is 14% of total wages 20% of total wage

Retirement insurance

10% of total wage

House fund

15% of total wage

Education fund

3.5% of total wage

Material cost

5yuan /kW

Reservoir maintenance cost

0.001yuan/kWh (power supply)

The support fund for immigrant

195

0.005yuan/kWh

Others

288

24yuan/kW

Wages and Welfare Expenses 80

O&M cost 1 year

219

O&M cost 2-10 years(with the support fund for immigrant)

1,625

O&M cost 11-30 years (without the support fund for immigrant)

1,430

As shown in table B.5, it was noticed that the O&M costs provided in FSR are lower than our recalculation according to the official Guidance document “Interim Regulations of Hydropower Construction Project Financial Evaluation”. The 23,292RMB/year is strictly in compliance with the guidance as average wages of Staffs and Workers in Urban Economic Units by Electricity, water and gas production and supply industry for Chongqing municipal in year 20058, which is slightly higher than the designed value 20,000 yuan per year in FSR. Therefore, the O&M costs applied in Investment analysis are conservative. In addition, variations in the annual O&M costs have a small impact on the return of the project. The IRR which will be 7.31% remains below the benchmark (8%) even if the O&M costs decreased by 50%. Income Tax / VAT Income tax rate of 33% was used in the IRR calculation which was the standard rate at the time when the Project Owner made his investment decision. The standard income tax rate has changed into 25% from Jan.2008 so that we also provide an IRR calculation spread sheet in which 25% income tax rate is used to demonstrate that even using the latest income tax rate, the project IRR after tax is 6.80% without CDM revenues, an extremely same conclusion that the proposed project faces an investment barrier due to its commercial unattractiveness is made as the IRR results are low. The 17% of VAT rate is actual rate approved by Chongqing Price Bureau and could be evidenced by the power sales invoices. Use of fixed values in the IRR calculations: The IRR calculation is based on real and fixed values. The use of fixed input values is appropriate in case both the input values and the benchmark are defined in real terms (as opposed to nominal terms, which refers to any price or value expressed in money of the day, as opposed to real values: the latter adjust for the effect of inflation) and when there is no expectation that the change in the nominal value of the input parameters will differ significantly from the rate of inflation. The use of fixed real input values (such as grid tariff and O&M cost) is common practice in China and is in accordance with guidance for the 8

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preparation of feasibility studies which demonstrates that the benchmark is defined in real terms and therefore the application of fixed real input values is appropriate. The IRR calculation compares the real IRR with a real benchmark which in both cases takes out the effects of general price increases due to inflation. From the results in Table B.3 it is clear that the return on investment for the Youchou Hydropower Station Project without the revenues from the sales of CERs is lower than the 8% benchmark applied in the feasibility study. This demonstrates that the proposed project activity is not a commercially viable option to supply power. The detailed spreadsheet calculations are available to the validator. Sub-step 2d: Sensitivity analysis The „Tool for the demonstration and assessment of additionality‟ requires that a sensitivity analysis is conducted to check whether the financial attractiveness remains unaltered for reasonable variations in the critical assumptions. For the IRR with CDM revenues, we have considered variations in the CER price. For the IRR without CDM revenues, the following parameters were used as critical assumptions:  Total investment  Grid tariff  Operating hours  Annual operation and maintenance cost In the sensitivity analysis, variations of ±10% have been considered in the critical assumptions. Such variation is considered appropriate as it is consistent with the approach taken by the official Chinese Standard document “Interim provisions concerning hydropower construction project financial assessment” and in accordance with the general guidance provided by the “Document for Registered Engineering Consultants in China”, published by the China Planning Press under the supervision of the National Development & Reform Commission. In addition it is not considered likely that the project‟s return will exceed the benchmark due to the following reasons: - Investment Cost: As discussed in suitability of input value section above, actual investment costs are increased 33.4% more than the estimated value in feasibility study because construction, engineering costs and immigration allowance are rising in China. Therefore, a 10% decrease of total costs is not considered realistic. - Annual O&M cost: Annual O&M costs are expected to rise rather than fall due to increases in the wage level. According to Chongqing Statistical Yearbook9 (2007-2009), it indicates that the average wage of the employed in Electricity, water and gas production and supply industry of State owned company keeps rising from 2005 to 2008. Therefore, a 10% decrease of annual O&M costs is not considered realistic. Table B.5.1 Average wages of Staffs and Workers of state owned companies in Urban Economic Units by Electricity, water and gas production and supply industry Year Average wages of Staffs and Workers (Yuan) 2005 23,292 2006 27,454 2007 31,076 2008 36,772 9

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Furthermore, the IRR which will be 7.31% remains below the benchmark (8%) even if the O&M costs decreased by 50%, which is impossible to happen. - Annual Power Generation: Annual power generation designed by Central Southern Survey & Design Institute is based on 46 years of water flow statistics (1957-2003) and the fixed water head data available at the project site. When the power generation increased by 15.9%, the IRR of proposed project will reach the benchmark of 8%. Considering the construction is complete now, the occurred total investment is fixed anyhow in the future. With the actual total investment (1,183,162,100 RMB) applied in the above IRR calculation, only if the power generation increased by 49.4%, the IRR of proposed project can reach the benchmark of 8%, which is impossible to happen. - Grid Tariff (VAT incl.) The value of 0.284RMB/KWh (VAT incl.) that is the highest tariff attainable at the time of investment decision is applied in the above IRR calculations. When grid tariff is increased by 15.9%, the IRR of proposed project will reach the 8% benchmark. Considering the construction is complete now, the occurred total investment is fixed anyhow in the future. With the actual total investment (1,183,162,100 RMB) applied in the above IRR calculation, only if the grid tariff increased by 49%, the IRR of proposed project can reach the benchmark of 8%, which is not likely to happen. The results of the sensitivity analysis for the IRR without CDM revenues are shown in Table B.6. Figure B.2 provides a graphic depiction. Table B.6 Sensitivity analysis; impact of variations in assumptions on the IRR without CDM revenues Percentage Variation -10% -5% 0% +5% +10% Critical assumption Total Investment cost 7.61% 7.06% 6.55% 6.08% 5.65% Grid tariff 5.21% 5.90% 6.55% 7.18% 7.79% Annual power supply 5.21% 5.90% 6.55% 7.18% 7.79% Annual O&M Cost 6.76% 6.66% 6.55% 6.45% 6.34% Figure B.2 Results of the sensitivity analysis

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The sensitivity analysis of the Internal Rate of Return confirms that the proposed project after realistic modifications to the critical assumptions remains commercially non viable without CDM revenues. The Internal Rate of Return of the proposed project activity without CDM revenues remains below the 8% benchmark. The conclusion may be clear that with reasonable modifications in the critical assumptions, the main results remain unaltered. The results of the sensitivity analysis therefore confirm that the project faces significant economic barriers without CDM revenues. Step 3. Barrier analysis The project does not face other barriers besides the low economic returns. Therefore step 3 of the additionality tool is skipped. Step 4. Common practice analysis Sub-step 4a. Analyze other activities similar to the proposed project activity: According to the „Tool for the demonstration and assessment of additionality’, projects are considered similar if they are in the same country/region and/or rely on a broadly similar technology, are of similar scale, and take place in comparable environment with respect to regulatory framework, investment climate, access to technology, access to financing, etc. Choose the similar area For the area chosen for common practice, the development policies and investment environments for hydropower projects in different provinces of China are different, Chongqing Municipality is chosen as geographic boundary which is in accordance with the delineation of Provincial Power Grid set by Chinese authorities. Choose the similar scale

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For the similar scale to the proposed project, projects below 50MW and above 300MW are excluded because the Chinese government considers hydropower stations between 50MW and 300MW as middle scale projects with a different set of regulations and industry benchmarks.10 Choose the similar construction year Projects that started construction before the 10th February 2002 reforms restructuring the power sector are not taken into account, since they did not benefit from comparable environment with regard to regulatory framework11. Therefore, the projects which started construction activities before 10th February 2002 have the essential difference and are excluded from the similar projects. Based on the above analysis, the power plants similar to the proposed project are those located in Chongqing Municipality with installed capacity of 50MW-300MW which started construction activities after 10th February 2002. According to „Yearbook of China Water Resources, 2006‟, the hydropower stations located in Chongqing Municipality are as follows: Table B.7a Hydropower stations in Chongqing Municipality from “Yearbook of China Water Resources, 2006” Project name 1

Yujiankou hydropower station

Shiban hydropower station

Dahekou hydropower station

Shuanghe hydropower station

Ganchang hydropower station

Tizidong hydropower station

Anju hydropower station

Weituo hydropower station

Developer Chongqing Yujiankou Hydroelectricity Co., Ltd Local government Sichuan Wujiang electric power Co., ltd. Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd. Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd. Chongqing Wujiang electric power (Group) Co., Ltd . Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd. Chongqing waterway construction

Operationalization date

Capacity (MW)

2004

199712

115

1996

N.A.

37.5

2004

1992

1993

The definition of small scale, medium scale, and large scale hydropower stations in provided in the “Ranks of Hydraulic and Hydropower Engineering”, State Document No. SL 252-2000. Based on this definition, the small scale hydropower benchmark guidance document (SL16-95) employs a 10% project IRR benchmark for hydropower stations below 50MW, were the benchmark for medium and large scale hydropower stations is 8%. Additionally, small scale hydropower stations can under certain circumstances apply for a special 6% VAT rate, whereas medium and large scale hydropower stations cannot. 11

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Development Co., Ltd. 9

Yutiao hydropower station

Daxihe Hydropower Co., Ltd.

2001

Furthermore, the projects constructed on Youshui River are analyzed: Table B.7b Hydropower stations constructed on Youshui River 1 2 3 4 5 6 7 8

Project name

Location Hunan Province Hubei Province

Operationalization date 1993 1994

Capacity (MW) 24.5 15

Wantang hydropower station Tangkou hydropower station Baifusi (Lajitan) hydropower station Jilongtan hydropower station Shidi hydropower station Wanmipo hydropowewer station Fengtan hydropower station Expansion project Gaotan hydropower station

Hubei Province

N.A

Hubei Province Chongqing City Hunan Province

N.A 2007 2004

27 120 240

Hunan Province

2004

400

Hunan Province

1998

Sub-step 4b. Discuss any similar options that are occurring: There are essential distinctions between the above projects and proposed project. For the projects listed in the Table B.7a, First, Shuanghe hydropower station, Ganchang hydropower station, Tizidong hydropower station, Anju hydropower station, Weituo hydropower station and Yutiao hydropower station are excluded because they are not ranged between 50 MW and 300MW; Second, Shiban hydropower station and Dahekou hydropower station are not consider similar, because they were developed before 2002. Third, Yujiankou hydropower station is the only project that can be considered similar to the proposed project as it took place in a comparable environment. However, there are essential distinctions between Youchou hydropower station and Yujiankou hydropower station and the latter is developed by Chongqing Yujiankou hydroelectricity Co., Ltd. Chongqing Yujiankou hydroelectricity Co., Ltd is invested by Asia Power Corporation Limited14 which is Singapore based company, and the Yujiankou hydropower station has a low investment per kilowatt of 6600 Yuan/kW, whilst the investment per kilowatt of Youchou project is 7387 Yuan/kW. For the projects listed in the Table B.7b, As the Wantang hydropower station, Tangkou hydropower station, Baifusi hydropower station, Jilongtan hydropower station, Wanmipo hydropower station, Fengtan hydropower station, Gaotan hydropower station are excluded due to different region; the only project is Shidi hydropower station, and it is development under CDM15. In light of the above, it is clearly demonstrated there are essential distinctions between the above projects and the proposed project. The proposed project would not be feasible without additional revenues from the CDM. In conclusion, the proposed Project is deemed to be additional according to ACM0002 and the tool for the demonstration and assessment of additionality. Impact of CDM registration

http://mszz.fd.gov.cn/gov/HTML/20091016142428_51805.html

http://cdm.ccchina.gov.cn/website/CDM/pdf/Item_new/Item_new614.pdf

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Registration of the project as a CDM project would result in additional revenues for the project, significantly improving the economic attractiveness of the project and consequently overcoming the barrier to implementation. The income through CDM will raise the IRR for the project from 6.59 % to 8.93%, which is above the 8% benchmark. The project entity was aware of the CDM incentive before the start of project activity. Early CDM Consideration In June 2004, Feasibility Study Report was completed. According to the conclusion of FSR, only if the gross tariff reached 0.326yuan/kwh, the IRR of Youchou project would crossover the industry benchmark of 8%. However project owner noted that the tariff of 0.326yuan/kWh was not realistic and attainable when they investigated the tariff level of Chongqing municipality, And they noticed that the highest actual tariff issued to hydropower project was only 0.284Yuan/kWh. Youchou project was less financial attractive for project owner under this investment environment. That is reason why the project owner did not start construction even the government approved the project in Jun. 30th 2004. In June 2005, the shareholder of project owner took part in a CDM training seminar organized by the National Development and Reform Commission. Since then, they started to seek CDM support. In September 2005, the Board of Director finally made a decision to invest in the project with serious consideration of the CDM revenue. This can be evidenced by the fact that additional revenues from the CDM were considered a key factor in the decision by Chongqing Youshui Hydropower Development Co., Ltd.to invest in the proposed project activity, as detailed in the below timeline.

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Table B.8 Timeline of CDM consideration Date Jun. 2004 th

Jun. 30 2004 May 2005

Jun. 2005

Sep. 2005

Dec. 14th 2005 Jun. 6th 2006 Jul. 3rd 2006 Jan. – 30th Jun. 2007 Sep. 28th 2007

28th Feb.-1st Mar. 2008 May, 2008

May-Aug. 2008 19th Sep. 2008 11th Nov. 2008 27th Nov. 2008 Oct.-26th Dec. 2008 Jan. 2009 May 2009 Jun. 2009 8th Jul. 2009 12 Feb. 2010

Events

Remarks

Feasibility Study Report is completed

FSR

Feasibility Study Report is approved “The Notice on Chongqing Price Bureau's Implementation of the Grid Tariff Adjustment Made by NDRC Yujia[2005]214” is published. M. Liu Zhongqi and M. Mou Min from Chongqing Construction Investment Co, Ltd (a major shareholder of Youshui Hydropower Development Co., Ltd) take part in a CDM training seminar organized by the National Development and Reform Commission. The financial incentive from the Clean Development Mechanism is acknowledged by the Board of Directors as a key element for the project‟s profitability. Start of project activity - The turnkey contract is signed Start of construction activities An internal CDM development team is established

FSR approval Yujia[2005]214 from Chongqing price bureau

ERPA negotiation with original potential CER buyer. Parties failed to reach an agreement and negotiations with original CER buyer are terminated. The CDM internal team contacts other buyers and an engagement agreement is signed between the project entity and AES A Stakeholder consultation meeting was held CDM Application for Host Country approval is suspended as both party fail to reach a final agreement on ERPA ERPA re-negotiation and finally signed

Training list: http://cdm.ccchina.gov.cn/web/NewsI nfo.asp?NewsId=350 Line 50 and 51 Board Meeting Resolution

Contract Construction start order Notice on establishment of an internal CDM team Meeting minute and draft ERPA CDM engagement agreement

Meeting memo, records, pictures, questionnaires Email correspondence on ERPA negotiation

Signed ERPA and email correspondence Application documents and PDD submitted to NDRC Email correspondence Host Country DNA meeting 55th meeting announcement http://cdm.ccchina.gov.cn/WebSite/C DM/UpFile/File2012.pdf DOE selection process commences email correspondence - Information and evidence collection for updating GSP Email correspondence PDD Updated PDD - GSP PDD completed for DOE to release quotation Letter Of Approval issued by NDRC LoA Contract negotiation with DOE is terminated Email correspondence CEC identified as potential DOE, Quotation from CEC Email correspondence submitted to buyer‟s headquarter for approval Obtain approval for validation and initiate contract Email correspondence negotiation Start GSP http://cdm.unfccc.int/Projects/Validat ion/DB/2FCMQYFYDRJJ7VN7TW VX2OFA7RBKCJ/view.html

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Emission reductions: B.6.1. Explanation of methodological choices:

Baseline emissions In accordance with the „ACM0002 methodology‟ (Version 10), baseline emissions for the year y are calculated as:

BE y  EGPJ , y  EFgrid ,CM , y

(B.1)

Where:  BEy are the baseline emissions in year y (tCO2/yr);  EG PJ, y is quantity of net electricity generation that is produced and fed into the grid as a result of the implementation of the CDM project activity in year y (MWh/yr);  EFgrid,CM,y is the Combined Margin CO2 emission factor for grid connected power generation in year y, calculated using the latest version of the “Tool to calculate the emission factor for an electricity system”. Calculation of EGPJ,y The project activity is the installation of a new grid-connected renewable power plant/unit at a site where no renewable power plant was operated prior to the implementation of the project activity:

EG PJ , y  EG facility, y

(B.2)

Where:  EGPJ,y is quantity of net electricity generation that is produced and fed into the grid as a result of the implementation of the CDM project activity in year y (MWh/yr) and;  EGfacility,y is quantity of net electricity generation supplied by the project plant/unit to the grid in year y (MWh/yr). The expected net power supply to the grid and an ex ante calculation of the emission factor in the first crediting period, and will hence be revised during the implementation of the project activity on the basis of actual net power supply to the grid. For the calculation of Combined Margin CO2 emission factor, EFgrid,CM,y, the methodology refers to the „Tool to calculate the emission factor for an electricity system‟ (Version 02). In accordance with this tool, the baseline emission factor is calculated as a combined margin: a weighted average of the operating margin emission (OM) factor and the build margin (BM) emission factor. Both the OM and BM emission factors are calculated ex ante and will not be updated during the first crediting period. This PDD refers to the Operating Margin (OM) Emission Factor and the Build Margin (BM) Emission Factor published by the Chinese DNA on July in 2009. We will refer to these emission factors as the „published emission factors‟. For more information on the published OM and BM emission factors, please refer to: http://qhs.ndrc.gov.cn/qjfzjz/t20090703_289357.htm: calculation result of the baseline emission factor of Chinese power grid.

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The description below focuses on the key elements in the calculation of the published emission factors and the subsequent calculation of emission reductions. The full process of the calculation of the emission factors and all underlying data are presented in English in Annex 3 to this PDD. Selection of values for net calorific values and CO2 emission factors of various fuels. As mentioned above, the Chinese DNA has entrusted key experts with the calculation of the grid emission factors. In these calculations choices have been made for the values of net calorific values and CO2 emission factors. In the calculation files of the published emission factors, the net calorific values are based on the China Energy Statistical Yearbook, and the CO2 emission factors are based on IPCC 2006 default values. The following table summarizes the values used. Note that the table lists the carbon emission factor of the fuels, while the CO2 emission factor has been obtained by multiplying with 44/12. Besides, in accordance with Chinese DNA, the lower limit of 95% confidence interval is applied for CO2 emission factor calculation to reflect the uncertainty. Rounded figures have been reported but exact figures have been used in the calculations in this PDD. The IPCC 2006 default carbon emission factors assume as a default value 100% oxidation in the combustion process. The calculation by the Chinese DNA and the calculations presented here follow the same approach by assuming complete combustion of the fuels. The „Tool to calculate the emission factor for an electricity system‟ does not take into account oxidation rates, which is equivalent to assuming 100% oxidation. Table B.9. Default values used for net calorific values and CO 2 emission factors of fuels Fuel

Unit 4

NCV

Carbon emission factor

CO2 emission factor

(TJ/unit)

(TC/TJ)

(kgCO2e/TJ)

Raw coal

10 Tons

209.08

25.8

87,300

Clean coal

104 Tons

263.44

25.8

87,300

Other washed coal

104 Tons

83.63

25.8

87,300

Briquettes

104 Tons

209.08

26.6

87,300

Coke

104 Tons

284.35

29.2

95,700

Coke oven gas

108 m3

1672.60

12.1

37,300

Other gas

108 m3

522.70

12.1

37,300

Crude oil

104 Tons

418.16

20.0

71,100

Gasoline

104 Tons

430.7

18.9

67,500

Diesel

104 Tons

426.52

20.2

72,600

Fuel oil

104 Tons

418.16

21.1

75,500

LPG

104 Tons

501.79

17.2

61,600

Refinery gas

104 Tons

460.55

15.7

48,200

Natural gas

108 m3

3893.1

15.3

54,300

Other petroleum products

104 Tons

383.69

20.0

75,500

Other coking products

104 Tons

284.35

25.8

95,700

Kerosene

104 Tce

430.7

19.6

87,300

Data source: All data are from the files mentioned above, and have been crosschecked against the original sources cited, as follows:  Net calorific values: China Energy Statistical Yearbook, 2008, P.284;  Carbon emission factors and oxidation rates: IPCC default values; see 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 (energy);  CO2 emission factors: calculated in accordance with Chinese DNA.

Description of the calculation process

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The key methodological steps according to the „Tool to calculate the emission factor for an electricity system‟ are: 1. Identify the relevant electricity power systems; 2. Choose whether to include off-grid power plants in the project electricity system (optional). 3. Select an operating margin (OM) method; 4. Calculate the operating margin emission factor according to the selected method; 5. Identify the group of power units to be included in the build margin (BM); 6. Calculate the build margin emission factor, and; 7. Calculate the combined margin (CM) emission factor. Step 1. Identify the relevant electricity power systems The Chinese DNA has defined and published a delineation of the project electricity system and connected electricity systems. Therefore, in accordance with the above mentioned tool, this delineation is applied to the project activity. The Youchou hydropower station project electricity system is defined as the Central China power grid. Electricity transfers from connected electricity systems to the project electricity system are defined as electricity imports and electricity transfers to connected electricity systems are defined as electricity exports. The Central China power grid does not import or export electricity from other grids; consequently there is no connected electricity system. The project is connected to the Chongqing Municipality Power Grid through local transformer station. The Chongqing Municipality Power Grid is part of the Central China Power grid, which includes the Sichuan, Henan, Hubei, Hunan, and Jiangxi and Chongqing city power grids. Figure B.3 Central China Power Grid

Chongqing

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

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Two options are provided in the “Tool to calculate the emission factor for an electricity system” to calculate the operating margin and build margin emission factor:  Option I: Only grid power plants are included in the calculation.  Option II: Both grid power plants and off-grid power plants are included in the calculation. In China, off – grid plants are not significant as electricity grids under government control are dominant power supplier. Therefore, option I is chosen for operating margin and build margin emission factor calculation. Step 3.Select a method to determine the operating margin (OM) method The „Tool to calculate the emission factor for an electricity system‟ offers several options for the calculation of the OM emission factor. Of these, dispatch analysis, cannot be used, because dispatch data, let alone detailed dispatch data, are not available to the public or to the project participants. For the same reason, the simple adjusted OM methodology cannot be used. The average OM does not take into account the non-dispatchable nature of low-cost/must-run resources and as low-cost/must-run resources constitute less than 50% of total grid generation (see table B.9), we have selected the Simple OM method as the most appropriate method. Table B.9 Electricity generation of the Central China Grid, 2002-2006 Year 2003 2004 2005 2006 2007

Generation (GWh) Thermal 240,839 270,846 303,976 334,027 408,400

Hydro 126,448 169,094 187,734 202,500 224,300

Others n.a. n.a. n.a. n.a. n.a.

Total 367,287 439,940 491,710 559,100 632,800

% Low cost/must run 34.43% 38.44% 38.17% 36.22% 35.44%

Source: China Electric Power Yearbook (editions 2004, 2005,2006, 2007 and 2008)

Data vintage selection In accordance with the „Tool to calculate the emission factor for an electricity system‟, the OM is calculated according to the „ex ante option‟ and the emission factor is determined once at validation stage, thus no monitoring and recalculation of the emissions factor during the crediting period is required: For grid power plants, use a three-year generation-weighted average, based on the most recent data available at the time of submission of the CDM-PDD to the DOE for validation, without the requirement to monitor and recalculate the emissions factor during the crediting period. Step 4. Calculate the operating margin emission factor according to the selected method According to the Simple OM method, the OM emission factor is calculated as the generation-weighted average tCO2 emissions per unit of net electricity generation (tCO2/MWh) of all generating power plants serving the system, not including the low-cost/must-run power plants/units. We calculate the OM emission factor according to option C (based on data on the total net electricity generation of all power plants serving the system and the fuel types and total fuel consumption of the project electricity system) of the Simple OM method, as  Data required for option A (based on data on the net electricity generation and a CO2 emission factor of each power unit), fuel consumption and net electricity generation of each power plant / unit) and B (based on data on net electricity generation, the average efficiency of each power unit

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and the fuel type(s) used in each power unit) such as electricity generation, CO2 emission factor for specific power plants/units serving the grid is not available to the public or to the project participants. According to the Chinese publicly available data such as China Electric Power Yearbooks, nuclear and renewable power generation are considered as low-cost/must-run power sources and the quantity of electricity supplied to the grid by these sources is known. And Off-grid power plants are not included in the calculation (i.e., Option I has been chosen in Step 2).

Under option B is used, the simple OM emission factor is calculated based on the net electricity supplied to the grid by all power plants serving the system, not including low-cost/must-run power plants/units, and based on the fuel type(s) and total fuel consumption of the project electricity system, as follows:

EFgrid ,OMsimple, y 

 FC

i, j

 NCV i , y  EFCO 2,i , y

EG y

(B.3)

Where:  EFgrid,OMsimple,y is the simple operating margin CO2 emission factor in year y (tCO2/MWh);  FCi,y is the amount of fossil fuel type i consumed in the project electricity system in year y (in a mass or volume unit);  NCVi,y is the Net Calorific Value (energy content) of fossil fuel type i in year y (GJ/mass or volume unit);  EFCO2,i,y is the CO2 emission factor of fossil fuel type i in year y (tCO2/GJ);  EGy is the net electricity generated and delivered to the grid by all power sources serving the system, not including low-cost / must-run power plants / units, in year y (MWh);  i are all fossil fuel types combusted in power sources in the project electricity system in year y, and;  y is the three most recent years for which data is available. Choice of aggregated data sources The published OM emission factor calculates the emission factor directly from published aggregated data on fuel consumption, net calorific values, and power supply to the grid and IPCC default values for the CO2 emission factor. Calculation of the OM emission factor as a three-year full generation weighted average On the basis of these data, the Operating Margin emission factors for 2005, 2006 and 2007 are calculated. The three-year average is calculated as a full-generation-weighted average of the emission factors. For details we refer to the publications cited above and the detailed explanations and demonstration of the calculation of the OM emission factor provided in Annex 3. It is calculated the Operation Margin Emission Factor as 1.1255tCO2e/MWh. The calculation of the OM emission factor is done once (ex ante) and will not be updated during the first crediting period. This has the added advantage of simplifying monitoring and verification of emission reductions.

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Step 5. Identify the group of power units to be included in the build margin (BM) According to the „Tool to calculate the emission factor for an electricity system‟, the sample group of power units m used to calculate the build margin consists of either: (a) The set of five power units that have been built most recently, or (b) The set of power capacity additions in the electricity system that comprise 20% of the system generation (in MWh) and that have been built most recently A direct application of this approach is difficult in China. The Executive Board (EB) has provided guidance on this matter with respect to the application of the AMS-1.D and AM 0005 methodologies for projects in China on 7 October 2005 in response to a request for clarification by DNV on this matter. The EB accepted the use of capacity additions to identify the share of thermal power plants in additions to the grid instead of using power generation. The relevance of this EB guidance extends to the „Tool to calculate the emission factor for an electricity system‟. The calculation in step 6 and the calculation of the published BM Emission factor by the Chinese authorities are based on this guidance. The approach is explained below in step 6 and is the one that has been followed in numerous PDDs using the similar ACM0002 methodology since the EB decision. Data vintage selection In accordance with the „Tool to calculate the emission factor for an electricity system‟, the BM is calculated according to option one: For the first crediting period, the build margin emission factor is calculated ex-ante based on the most recent information available. For the second crediting period, the build margin emission factor will be updated based on most recent data available at the time of submission of the request for registration. For the third crediting period, the build margin emission factor calculated for the second crediting period will be used. Step 6. Calculate the build margin emission factor The Build Margin Emission Factor is, according to the „Tool to calculate the emission factor for an electricity system‟, calculated as the generation-weighted average emission factor (measured in tCO2/MWh) of all power units m during the most recent year y for which data is available:

 EG  EF   EG m, y

EFgrid , BM , y

EL , m , y

(B.4)

m, y

Where:  EFgrid,BM,y is the build margin CO2 emission factor in year y (tCO2/MWh);  EGm,y is the net quantity of electricity generated and delivered to the grid by power unit m in year y (MWh);  EFEL,m,y is the CO2 emission factor of power unit m in year y (tCO2/MWh);  m are the power units included in the build margin, and;  y is the most recent historical year for which power generation data is available. The sample m, according to the methodology, should be over the latest 5 power plants added to the grid, or over the last added power plants accounting for at least 20% of power generation. We apply an indirect approach based on the EB decision as mentioned in step 5.

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First the newly–added installed capacity and the share of each power generation technology in the total capacity are calculated. Second, the weights of each power generation technology in the newly-added installed capacity are calculated.16 Third, emission factors for each fuel group are calculated on the basis of an advanced efficiency level for each power generation technology and a weighted average carbon emission factor on the basis of IPCC default carbon emission factors of individual fuels. Since the exact data are aggregated, the calculation will apply the following method: We calculate the share of the CO2 emissions of solid fuel, liquid fuel and gas fuel in total emissions respectively by using the latest energy balance data available; the calculated shares are the weights. Using the emission factor for advanced efficient technology we calculate the emission factor for thermal power; the BM emission factor of the power grid will be calculated by multiplying the emission factor of the thermal power with the share of the thermal power in the most recently added 20% of total installed capacity. Detailed steps and formulas are as below: First, the share of CO2 emissions of the solid, liquid and gaseous fuels in total emissions respectively is calculated.

Coal 

F

iCOAL, j

i, j, y

F

i, j, y

 COEFi , j

(B.5)

i, j

Oil 

F

 COEFi , j

F

 COEFi , j

iOIL , j

i, j, y

(B.6)

i, j

Gas 

F

 COEFi , j

F

 COEFi , j

iGAS , j

i, j, y

(B.7)

i, j

Where:  Fi,j,y the amount of the fuel i consumed in y year of j province (measured in tce);  COEFi,j,y the emission factor of fuel i ( measured in tCO2/tce) while taking into account the carbon content and oxidation rate of the fuel i consumed in year y, and;  COAL,OIL and GAS subscripts standing for the solid fuel, liquid fuel and gas fuel. Second, calculate the emission factor of the thermal power:

Newly added capacity is determined as follows. First, the latest year (2007) for which data on total installed capacity is available is identified. Then, the last year is identified in which the total installed capacity was below 80% of the total installed capacity in 2007. This defines “newly added capacity”. Note that this approach does not follow the EB decision in response to the DNV request as mentioned in the main text to the letter, but the approach taken is the one that has been followed in numerous PDDs since the EB decision.

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(B.8)

While EFCoal,Adv, EFOil,Adv and EFGas,Adv represent the emission factors of advanced coal-fired, oil-fired and gas-fired power generation technology, see detailed parameter and calculation in Annex 3. Third, calculate BM of the power grid:

EFgrid , BM , y 

CAPThermal  EFThermal CAPTotal

(B.9)

Where CAPTotal represents the total newly-added capacity and CAPThermal represents newly-added thermal power capacity. The λs are calculated on the basis of the weight of CO2 emissions of each type of fuel in the total CO2 emissions from thermal power. Subsequent calculation of the Build Margin emission factor yields a baseline emission factor of 0.5802tCO2e/MWh. For details please refer to Annex 3. The calculation of the BM emission factor for the first crediting period is done once (ex ante) and will not be updated during the first crediting period. This has the advantage of simplifying monitoring and verification of emission reductions. Step 7. Calculate the combined margin (CM) emission factor The Baseline Emission Factor is calculated as a Combined Margin, using a weighted average of the Operating Margin and Build Margin.

EFgrid ,CM , y  EFgrid ,OM , y  Wom  EFgrid , BM , y  WBM

(B.10)

The “Tool to calculate the emission factor for an electricity system” provides the following default weights: Operating Margin, WOM = 0.5; Build Margin, WBM = 0.5 We apply published data of 1.1255 for the Operating Margin Emission Factor and 0.5802 for the Build Margin Emission Factor. Applying the default weights and the published emission factors, a combined margin Baseline Emission Factor of 0.85285tCO2/MWh is calculated. The published emission factor in the calculation of baseline emissions is applied. Calculation of Baseline Emissions Baseline Emissions are calculated by multiplying the Baseline Emission factor by the net quantity of electricity supplied to the grid electricity system by the project according to formula B.2 repeated below for convenience:

BE y  EG y  EFgrid ,CM , y

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The estimated baseline emissions (see Section B.6.3) are based on expected net power supply to the gird and an ex ante calculation of the emission factor in the first crediting period, and will hence be revised during the implementation of the project activity on the basis of actual net power supply to the grid. Project Emissions: PE =PEHP,y PEHP,y

Emissions from water reservoirs of hydro power plants

For hydro power project activities that result in new reservoirs, emissions from water reservoirs of hydro power plants shall be accounted for and are based on the power density of the project activity, which is calculated as follows:

PD 

Cap PJ  Cap BL APJ  ABL

(B.11)

Where: PD = Power density of the project activity, in W/m2. CapPJ = Installed capacity of the hydro power plant after the implementation of the project activity (W). CapBL = Installed capacity of the hydro power plant before the implementation of the project activity (W). For new hydro power plants, this value is zero. APJ = Area of the reservoir measured in the surface of the water, after the implementation of the project activity, when the reservoir is full (m2). ABL = Area of the reservoir measured in the surface of the water, before the implementation of the project activity, when the reservoir is full (m2). For new reservoirs, this value is zero. The Youchou project will create a new hydro power plant and a new reservoir. Therefore, the power density is determined as: Total installed capacity: 120,000,000 W Reservoir surface area at full reservoir level: 7,700,000 m2 PD = 15.6 W/m2 Consequently, and according to the methodology, the power density is greater than 10W/m2, therefore project emissions equal zero. Leakage In agreement with the methodology, leakage emissions (arising from power plant construction, upstream emissions from fossil fuel use, etc.) are ignored. Calculation of Emission Reductions As the project involves neither project emissions nor leakage emissions, emission reductions are equal to baseline emissions. Using the results of the preceding sections, we calculate the emission reductions using formula B.13:

ER y  BE y  PE y  LE y

(B.12)

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The project will install one on-site diesel generator with total capacity of 400kW which will be maintained for emergency purpose in case the power line which sends the power from the grid is cut off. In case of emergencies the project will not claim emission reductions and the use of the diesel generator will be monitored. The project owners will run the diesel generator about 10 hours17 annually. So the expected annual power generation can be calculated to be 4,000kWh. Once the emissions of the diesel generator are less than 1% of total emission reductions and are considered negligible. For the emission factor of the diesel generator we refer to the AMS-I.D (version 13) methodology which provides emission factors for diesel generator systems. We apply the highest value listed in the methodology which is 2.4kgCO2e/kWh (generator below 15kW), which is conservative considering the size of the generator used on-site. The annual emissions by the diesel generators is estimated as 9.6tCO2e, which would reduce annual emission reductions about 0.003% and can therefore be considered negligible. If the emissions of the diesel generator are more than 1% of total emission reductions and the emission from diesel generator will be taken into project emission. B.6.2. Data and parameters that are available at validation: Data / Parameter: Data unit: Description: Source of data: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment: Data / Parameter: Data unit: Description: Source of data: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment: Data / Parameter:

EFgrid,CM,y tCO2e/MWh Combined Margin Grid Emission Factor for the project electricity system in year y Calculated ex-ante based on the OM emission factor and BM emissions factor. 0.85285tCO2e/MWh Calculated from the published emissions factors.

EFgrid,BM,y tCO2e/MWh Build Margin Grid Emission Factor for the project electricity system in year y Calculated ex-ante (see Annex 3) 0.5802tCO2e/MWh Calculated ex-ante (see Annex 3).

EFgrid,OM,y

The back-up diesel generator is installed to supply emergency power in case the power line which sends the power from the grid. For the conservative consideration and according to the project ownerâ&#x20AC;&#x;s experience, project owner assumed that the annual operation hours of diesel generator for emergency is around 10 hours as mentioned above. The operation hours of the diesel generator is just an estimated value, while the value used for calculating the actual emission reduction will come from the monitoring result.

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

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

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tCO2e/MWh Operating Margin Grid Emission Factor for the project electricity system in year y Calculated ex-ante (see Annex 3) 1.1255 tCO2e/MWh Calculated ex-ante (see Annex 3).

CapBL W Installed capacity of the hydropower plant before the implementation of the project activity. For new hydropower plants the value is zero. N.A. Zero The proposed CDM project activity involves a new hydropower station and hence CapBL is zero.

CapPJ W Installed capacity of the hydropower plant after the implementation of the project activity. Feasibility study report 120,000,000 W This is the best data available.

PLF Ex-ante power load factor Feasibility Study Report 0.3729 In accordance with the guidance for the reporting and validation of Plant Load Factor, the ex-ante plant load factor is defined according to the data determined by Central South Survey & Design Academy of State Grid Company which has authorized design qualification Class A. Ex-ante Plant Load Factor=Operating hours/8760=3267/8760=0.3729

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Data / Parameter: Data unit: Description:

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

ABL m2 Area of the reservoir measured in the surface of the water, before the implementation of the project activity, when the reservoir is full (M²). N.A. Zero Not applicable: ABL is determined ex-ante: the size of the reservoir before implementation of the project cannot be monitored after implementation of the project activity. APJ m2 Area of the reservoir measured in the surface of the water, after the implementation of the project activity, when the reservoir is full Feasibility study report 7,700,000 m2 This is the best data available

EGfacility,y MWh (Net) Electricity supplied by the project to the grid Feasibility study report 390,000 MWh This is the best data available

Parameters used for the calculation of the Operating Margin (OM) and Build Margin (BM) Emission Factors in accordance with the “Tool to calculate the emission factor for an electricity system”:

Data / Parameter: Data unit: Description: Source of data used:

Value applied:

EGy, EGj,y, EGk,y and EGn,h MWh (per annum) Net electricity generated and delivered to the grid by power plant / unit m,j,k, or n in year y or hour h See the downloadable files mentioned above for the full data set. Original data are from China Electric Power Yearbook (Editions 2006, 2007 and 2008) For detailed values; see Annex 3

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These data are the best data available, and have been published by the Chinese authorities. For the calculation of the OM emission factor, total electricity supply per power generating category has been used instead of electricity supply per power plant/unit. For the calculation of the BM emission factor, the latest 20% capacity addition to the grid has been employed. For values and a detailed description of the calculation method see Annex 3 and Section B.6.1 respectively. Internal power consumption of power plants Percentage Internal consumption of power by source China Electric Power Yearbook (Editions 2006, 2007 and 2008) For detailed values: see Annex 3 These data are the best data available, and have been published by the Chinese authorities.

Data / Parameter: Data unit: Description:

FCi,m,y, FCi,y, FCi,j,y, FCi,k,y, FCi,n,y, and FCi.n.h Mass or volume unit Amount of fossil fuel type i consumed by power plants / units m,j,k, or n in year y or hour h Source of data used: See the downloadable files mentioned above for the full data set. Original data are from China Energy Statistical Yearbook, 2006, 2007 and 2008 editions Value applied: For detailed values; see Annex 3 Justification of the These data are the best data available, and have been published by the choice of data or Chinese authorities. For the calculation of the OM emission factor, total description of fuel consumption per power generating category has been used instead of measurement methods fuel consumption per power plant/unit. For the calculation of the BM and procedures actually emission factor, the latest 20% capacity addition to the grid has been applied: employed. For values and a detailed description of the calculation method see Annex 3 and Section B.6.1 respectively. 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 :

Power generation by source GWh (per annum) Provincial level power generation data by source China Electric Power Yearbook (Editions 2006, 2007 and 2008) For detailed values: see Annex 3 These data are the best data available, and have been published by the Chinese authorities.

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Data / Parameter: Data unit: Description: Source of data used:

Efficiency of advanced thermal power plant additions %

Data / Parameter: Data unit: Description:

Capacity by power generation source MW For the different power generation sources, installed capacity in 2005, 2006 and 2007 in the Central China Grid. Calculated by summing provincial data. See the downloadable files mentioned above for the full data set. For detailed values: see Annex 3 These data are the best data available, and have been published by the Chinese authorities.

See the downloadable files mentioned above for the full data set. Data are based on the best technologies available in China. Value applied: Coal: 38.1%; Oil: 49.99%; Gas: 49.99% Justification of the These data are the best data available, and have been published by the choice of data or Chinese authorities. description of measurement methods and procedures actually applied : Any comment:

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

Oxidation Factor Percentage Oxidation factors for 16 different fuels Data used are IPCC default values. See 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2, Energy For detailed values; see Annex 3 These data are the most recent data available, and have been used by the Chinese authorities to calculate the emission factors.

Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied: Any comment: 2006 IPCC emission factors are based on 100% oxidation default values and the “Tool to calculate the emission factor for an electricity system” does not require the use of oxidation values. We have listed them as a parameter as the Chinese DNA uses them (100%) and we want to be comprehensive. Utilizing 100% oxidation default values does not influence the calculation of the combined margin grid emission factor.

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

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EFco2,i,y and EFco2,m,i,y tCO2/GJ tCO2 emission factor of fossil fuel type i in year y Data used are IPCC default values. See 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2, Energy For detailed values; see Annex 3 These data are the most recent data available, and have been used by the Chinese authorities to calculate the emission factors.

NCVi,y GJ / mass or volume unit Net calorific value (energy content) of fossil fuel type i in year y See the downloadable files mentioned above for the full data set. Original data are from China Energy Statistical Yearbook, (2004) p. 302. For detailed values; see Annex 3 These data are the best data available, and have been published by the Chinese authorities.

Fuel CO2 Emission Coefficients kgCO2/TJ Carbon emission factors for 17 different fuels In accordance with Chinese DNA, the lower limit of 95% confidence interval is applied for CO2 emission factor calculation to reflect the uncertainty. See 2006 IPCC Guidelines for National Greenhouse Gas Inventories and the China Clean Development Mechanism website online at: http://qhs.ndrc.gov.cn/qjfzjz/W020090703644238739485.xls. For detailed values see Annex 3 These are the most recent data.

Electricity imports from connected grids MWh (per annum) Electricity imports of power from other grids Original data are from China Electric Power Yearbook (Editions 2006,

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2007and 2008) Value applied: For detailed values; see Annex 3 Justification of the These data are the best data available, and have been published by the choice of data or Chinese authorities. description of measurement methods and procedures actually applied: 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:

B.6.3

Primary fuel input for thermal power supply 104 tons, 108 m3, 104 tce, depending on the specific fuel. We refer to Annex for details. Physical amount of fuel input, for 17 different fuels China Energy Statistical Yearbook 2006, 2007 and 2008 editions. For detailed values: see Annex 3 These data are the best data available, and have been published by the Chinese authorities.

Ex-ante calculation of emission reductions:

Baseline emissions The annual net power supply to the Central China Grid during the first crediting period is estimated to be 390,000 MWh. Applying formula B.2 presented in Section B.6.1, we obtain the values for the baseline emissions during the first crediting period provided in Table B.10: Table B.10 The estimation of baseline emissions during the 1 st crediting period Year Period Annual net power Baseline emission supply to the grid factor (EGy) (MWh) (tCO2/MWh) 1 01/01/2011 – 31/12/2011 390,000 0.85285 2 01/01/2012 – 31/12/2012 390,000 0.85285 3 01/01/2013 – 31/12/2013 390,000 0.85285 4 01/01/2014 – 31/12/2014 390,000 0.85285 5 01/01/2015 – 31/12/2015 390,000 0.85285 6 01/01/2016 – 31/12/2016 390,000 0.85285 7 01/01/2017 – 31/12/2017 390,000 0.85285 Total Average 390,000

Baseline emissions (tCO2e) 332,611 332,611 332,611 332,611 332,611 332,611 332,611 2,328,277 332,611

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In a given year, the emission reductions realized by the project activity (ER y) is equal to baseline GHG emissions (BEy) minus project emissions: ERy = BEy - PEy = 332,611tCO2/y –0= 332,611tCO2/y

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Summary of the ex-ante estimation of emission reductions:

Table B.11 Ex ante estimation of emission reductions due to the project Year Project Baseline Leakage Emissions emissions (tCO2) (tCO2) (tCO2) Year 1: 01/01/2011 – 31/12/2011 0 332,611 0 Year 2: 01/01/2012 – 31/12/2012 0 332,611 0 Year 3: 01/01/2013 – 31/12/2013 0 332,611 0 Year 4: 01/01/2014 – 31/12/2014 0 332,611 0 Year 5: 01/01/2015 – 31/12/2015 0 332,611 0 Year 6: 01/01/2016 – 31/12/2016 0 332,611 0 Year 7: 01/01/2017 – 31/12/2017 0 332,611 0 Total 0 2,328,277 0 Average 0 332,611 0

B.7

Emission Reductions (tCO2) 332,611 332,611 332,611 332,611 332,611 332,611 332,611 2,328,277 332,611

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

Data / Parameter: Data unit: Description: Source of data: Measurement procedures:

Monitoring frequency: QA/QC procedures to be applied:

Any comment: Data / Parameter: Data unit: Description: Source of data: Measurement procedures: Monitoring frequency:

EGfacility,y MWh Electricity supplied to the grid by the project (net) Project activity site The net electricity supplied to the grid by the project is calculated by measured result of ESy (electricity supplied to the grid) minus measured result EDy (electricity delivered from the grid to the project). For details we refer to section 7.2. ESy and EDy are continuously measured and monthly recorded by project entity with national standard electricity metering instruments M1 (see Figure B.4). The measurement will be conducted technically in accordance with the “Technical administrative code of electric energy metering (DL/T448－2000)”. Continuous measurement and monthly recording These data will be directly used for calculation of emission reductions. Measurement results of electricity supplied to the grid and that delivered from the grid to the project will be cross-checked against Electricity Transaction Notes (hereinafter ETNs). In case of discrepancies the conservative value will prevail. The metering instruments will be calibrated annually. CapPJ W Installed capacity of the hydro power plant after implementation of the project activity. Project activity site Installed capacity of the project activity will be determined according to installed equipments‟ nameplates and will be monitored annually. The nameplate will be checked by DOE during verification. Yearly

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No further QA/QC procedures are considered necessary. -

Data / Parameter: Data unit: Description:

APJ m2 Area of the reservoir measured in the surface of the water, after the implementation of the project activity, when the reservoir is full. Source of data: Measured at the project site Measurement The project entity will commission a third party to conduct the measurement procedures: from topographical surveys and maps. A measurement report will be issued by this qualified party. The surface area will be calculated using the design schematics and area maps. Monitoring frequency: Yearly QA/QC procedures to A qualified third party will be commissioned by the project entity to be applied: measure reservoir surface area when the reservoir is full. Qualification is issued by governmental surveying and mapping department. Any comment: Data / Parameter: Data unit: Description: Source of data: Measurement procedures (if any): Monitoring frequency: QA/QC procedures to be applied:

Any comment:

B.7.2

Operational hours of emergency back-up diesel generator Hours / year Annual hours that the emergency back-up gasoline generator is running either for the purpose of commissioning/maintenance or actual emergencies Project site The project entity will record the operational hours in the daily operation logs. Simultaneous measurement and recording along with operation The expected annual emissions associated with the operation of the emergency back-up diesel generator amount to about 0.003% of total emission reductions. The actual emissions resulted from the operation of the diesel generator will be calculated and considered as project emissions once it is more than 1% of emission reduction and therefore deducted from baseline emissions. In case of actual emergencies the project entity will not claim emission reductions (see section B.7.2). Further QA/QC procedures are therefore not considered necessary. -

Description of the monitoring plan:

This monitoring plan outlines the principles which shall be followed in the monitoring of the parameters listed in section B.7.1. Monitoring of net electricity supplied by the project to the grid The proposed project activity is connected to the Chongqing Municipality Power Grid through two onsite transformers. The project will supply electricity to the Grid through an on-site step up station

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connected to the Youyang 220 kV transformer station, which is part of the Chongqing Municipality Power Grid. The project is connected to one back-up power line to provide emergency power in case the project is not operational (indicated in dark yellow line in figure B.4). An indicative grid connection diagram is provided in figure B.4. The grid connection diagram indicates the principles for positioning of metering instruments that will be used in the monitoring of emission reductions. A detailed grid connection diagram which is updated on the basis of the actual implementation of the project‟s grid connection and will serve as the basis for periodic verification. The project entity will ensure that the actual implementation of grid connection will not deviate from the procedures outlined in this section. Figure B.4 Indicative grid connection diagram

The project entity will meter electric power according to the following principles:

Youyang Transformer Station

Local Transformer Station

Internal power line Main power supply line Back-up power line

Project / Grid Boundary

Hydropower station Back up diesel generator



The Power supplied to the grid through main power line (ESy): As indicated in Figure B.4 the project is connected by two main power supply lines (indicated in red) which will supply power generated by the project to the grid. Electricity supplied to the grid is metered as below:

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Project entity: The electricity supplied to the grid is measured continuously by the project entity with standard metering instrument M1and M2 in accordance with national regulations. ESy will be recorded monthly. Calibration: Calibrations of M1 and M2 are carried out annually by the grid company or by a certified company. The grid company will issue purchase electricity records (i.e.ETNs,Electricity Transaction Notes, hereinafter ETNs) each month to the project entity where the monthly amount of electricity supply to the grid is mentioned. The measurement results of EDy by M1and M2 will be cross-checked against the values on ETNs. In case of discrepancies between measured power supply and that on ETNs the lower value will be taken into account for emission reductions calculation. 

Electricity delivered from the grid to the project (EDy, or electricity received by the project): As M1 and M2 are bidirectional the electricity received by the project activity from the grid through the main power line will be measured continuously by the project entity with M1and M2. EDy will also be monthly recorded.

Besides, as indicated in Figure B.4 the project is connected by one back-up emergency power line (indicated in dark yellow line) which will deliver power from the grid to the project in case of emergencies or when the turbines of the proposed project activity are not in operation. This back-up line may be dismantled in the future as the electricity can be delivered from the grid through main power lines. The metering instrument M3 will measure continuously the power received by the project activity from the grid via the back-up power line and the measurement results of M3 will be recorded monthly. Calibrations of M3 will be carried out annually by the grid company or by a certified entity. The grid company will issue ETNs (or statements if applicable) each month where EDy via main power line as well as back-up power line is settled. The measurement results of power received through M1,M2 and M3 recorded monthly by the project entity will be cross-checked against values on the ETNs (or other evidence provided by the grid company). In case of inconsistency the higher value will prevail and be used for the purpose of claiming emission reductions. Both the metering instruments M1 and M2 have their back-up meter that measures electricity exchange following the same principle mentioned above. These back-up meters will be used for claiming emission reductions in case of emergencies18 or that M1 and M2 are non-functional. Calibrations of these back-up meters will be carried out periodically by the grid company or by a certified entity. Installed capacity of the hydropower plant: In addition to the above, the installed capacity of the hydropower plant will be monitored yearly. The project entity will annually prepare photographic evidence of the installed equipment on the basis of the nameplates, which will be in accordance with domestic and international standards. 

Monitoring of reservoir surface area: The project entity will commission a qualified third party to conduct the measurement from topographical surveys and maps. A measurement report will be issued by this qualified party and

Emergencies are defined here as “conditions under which the project entity has not been able to monitor due to unexpected accidents”.

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will be available for verification. The surface area will be calculated using the design schematics and area maps. Reporting, archiving and preparation for periodic verification: The project entity will in principle report the monitoring data annually but may deviate to report at intervals corresponding to agreed verification periods and will ensure that these intervals are in accordance with CDM requirements. The project entity will ensure that all required documentation is made available to the verifier. Data record will be archived for a period of 2 years after the crediting period to which the records pertain.

The project entity will collect internal records, the ETNs for power supplied to the grid and for power received from the grid as evidence. The net supply (i.e. gross supply minus supply by the grid to the project) will be used in the calculations. In case of discrepancies between the measurements results of M1, M2 and M3 and values on ETNs the conservative values will prevail. All records of generation, power delivered to the grid, ETNs and the results of calibration will be collated in a central place by the project entity. An overview of detailed information on minimum accuracy requirements of the metering instruments, measuring intervals, recording form, calibration and available documentation is provided in Table B.12. Determination of net power supply: Net electricity supplied to the grid by the project (EGy in section B.7.1.) is calculated on a monthly basis as:

EG y  ES y  ED y  

With: ESy, electricity supplied by the Project through the main power line (in MWh) measured by project entity and cross-checked against ETNs. In case of inconsistencies between project entity measurement results and ETNs the lower values will prevail. EDy, electricity delivered to the Project through main power line as well as back-up power line measured by the project entity cross-checked against ETNs (or grid statement). In case of discrepancies between project entity measurement results and ETNs the higher value will be used for emission reductions calculation. Table B.12 Details of metering instruments Operated Electronic Meter Recording by measurement M1 Project Continuous Monthly entity M2 Project Continuous Monthly entity M3 Project Continuous Monthly entity

Calibration

Accuracy

Documentation

Annual calibration conducted by a certified company

Accuracy Class 0.2S

Plant log books cross checked against ETNs or statements

PROCEDURES IN CASE OF DAMAGED METERING EQUIPMENT / EMERGENCIES Damages to metering equipment:

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In case metering equipment is damaged and no reliable readings can be recorded the project entity will estimate net supply by the proposed project activity according to the following procedure: 1. In case metering equipment is damaged: If the metering instrument(s) M1 or M2 is non-functional, the project entity will use readings from the backup metering instrument(s) onsite to cross-check that is installed against ETNs and the conservative value between the two will be used for emission reductions calculation. In the unlikely event that both metering instrument(s) are damaged, the electricity supplied to the grid or electricity delivered from the grid to the project activity that is recorded by the grid company, or may be evidenced by the ETNs, will be used for the days for which no record could be recorded. The project entity will furthermore document all efforts taken to restore normal monitoring procedures. Emergencies: In case of emergencies, the project entity will not claim emission reductions due to the project activity for the duration of the emergency. The project entity will follow the below procedure for declaring the emergency period to be over: 1. The project entity will ensure that all requirements for monitoring of emission reductions have been re-established. 2. The monitoring officer and the head of operations of the hydropower station will both sign a statement declaring the emergency situation to have ended and normal operations to have resumed. OPERATIONAL AND MANAGEMENT STRUCTURE FOR MONITORING The monitoring of the emission reductions will be carried out according to the scheme shown in Figure B.5. The director of the Safety Production department will hold the overall responsibility for the monitoring process, but as indicated below parts of the process are delegated. The first step is the measurement of the electrical energy supplied to the grid and reporting of daily operations, which will be carried out by the plant operation staff. The project owner will appoint a monitoring officer who will be responsible for verification of the measurement, collection of sales receipts, collection of billing receipts of the power supplied by the grid to the hydropower plant and the calculation of the emissions reductions. The monitoring officer will prepare operational reports of the project activity, recording the daily operation of the hydropower station including operating periods, power generation, power delivered to the grid, equipment defects, etc. The selection procedure, tasks and responsibilities of the monitoring officer are described in detail in Annex 4. Finally, the monitoring reports will be reviewed by the director of the Safety Production department.

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Figure B.5. Management structure in order to monitor emission reductions Plant operation staff: Measurement of electrical power produced

Monitoring officer: Verification of measurement & calculation of emission reductions

Director of safety production dept: Review Internal audit

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) Date of completion of the baseline study and monitoring methodology: 20/07/2010

Name of persons determining the baseline study and the monitoring methodology: Caspervandertak Consulting Tel: +86-10-84505756 Fax: +86-10-84505758 Christophe Assicot: Operations Manager – CDM & Sustainability Yinli: Operations Manager – CDM & Sustainability Zhenlan Li Consultant- CDM & Sustainability

christophe@cdmasia.org yinli@cdmasia.org zhenlan@cdmasia.org

Gansu Tonghe Investment Project Consulting Co., Ltd Tel: +86-931-4663436 Fax: +86-931-8440721 Jin Yue Bing Director yuebing.jin@gstonghe.com Zhao Dianhui Consultant dianhui.zhao@gstonghe.com Gansu Tonghe Investment Project Consulting and Caspervandertak Consulting are not project participants.

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SECTION C. Duration of the project activity / crediting period C.1

Duration of the project activity: C.1.1. Starting date of the project activity:

14/12/2005 This was the date when the turnkey contract was signed.

C.1.2. Expected operational lifetime of the project activity: 30 years C.2

Choice of the crediting period and related information: C.2.1. Renewable crediting period

A renewable crediting period will be used. C.2.1.1.

Starting date of the first crediting period:

01/01/2011, or the date of registration, whichever is later. C.2.1.2.

Length of the first crediting period:

7 years 0 months C.2.2. Fixed crediting period: C.2.2.1.

Starting date:

C.2.2.2.

Length:

Not applicable

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SECTION D. Environmental impacts D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: An Environmental Impact Assessment (EIA) was carried out by the Chongqing Research & Design Institute of Sino-Coal International Engineering Group and was approved by Chongqing Municipality Environment Protection Bureau on November 7th 2005. A summary of the main findings of the EIA is provided below. SUMMARY OF ENVIRONMENTAL IMPACT ASSESSMENT

Main positive impacts of the project The Youchou hydropower project will have the following impacts: The sustainability of power generation of the Central China Grid, the reduction local power shortage, as well as environmental and social benefits and employment opportunities. In the longer term, the project will increase local financial revenues and promote local economic development while at the same time stimulating the development of several industries including the building materials industry, construction industry. The project will generate electricity from renewable energy and replace the common use of coal-fired thermal power which will significantly reduce the air pollution. The project will be beneficial to the environment and sustainable economic development in the surrounding area, developing transportation and communication conditions. Besides, the construction and layout of a new residential area as well as infrastructure will be improved compared to the current situation. Main negative impacts of the project 1) Impact on social environment The construction of the Youchou Reservoir will reduce the total farmland of Youyang County, thus reducing the production of grains and agriculture income during a period of transition. 2) Environment impact caused by resettlement In the process of resettlement, no pollution of surface water, deforestation and/or land reclamation is allowed. In order to sustain the current forest coverage rate a comprehensive area plan will be developed covering the local mountains, water bodies, forest, farmland and roads of the resettlement area. The construction of the reservoir will improve the conditions for treatment solution of domestic sewage and waste compared to the original reservoir. Domestic waste produced by Daxi township, Wufu township and other centralized resettlement areas in the reservoir area will be treated in accordance with domestic landfill site standards and combined with the clean up activities of the reservoir. On the basis of an analysis of the capacity of the land to sustain tourism development, development of the secondary and tertiary industries, it is concluded that it is feasible for the displaced people to retreat to areas that are located higher in the mountains. The construction of the Youchou Hydropower Station will improve the transport conditions and will contribute towards the development of tourism in the areas surrounding the reservoir area. This will provide opportunities to increase displaced peopleâ&#x20AC;&#x;s income. At the same time, the natural resources in the reservoir area will be developed and transportation, communication, electric power and water resource conditions will be improved greatly. This will lead to an accelerated development of second and tertiary industry and thus provide new channels for employment of displaced people.

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In general, the construction of the Youchou Reservoir will improve the displaced peopleâ&#x20AC;&#x;s living quality. 3) Soil and water loss The construction of the Youchou Hydropower Station will occupy and disturb a total area of 621.06 hm2. Additional soil and water losses during the construction period and operation period amount to 22,500 ton while soil and water losses caused by waste slag amount to 252,400 ton. The total soil and water losses as a result of the project amount to 274,900 ton. For the soil and water losses caused by project construction several preventive structures will be constructed including drainage ditches, a debris retaining dam and sedimentation tanks as well as other measures including shortening the unprotected slag stacking period and greening of the area. The additional cost for the prevention of water and soil losses amounts to 7,808,800RMB. Environmental management and monitoring The construction company should strengthen the environmental management activities and set up an environment protection department. This department should be equipped with professional environmental protection staff which shall manage environmental protection activities works and execute the monitoring plan for the construction and operation phases. In order to control the environmental pollution, assess the impact on the ecological environment and properly mitigate this impact in the construction area and the rest of the Youshui River Basin, the environmental monitoring must be executed in accordance with environment monitoring plan in the Report on Environmental Quality in the Construction and Operation Period. The monitoring shall be executed by firms with the proper competence in this field. Economic loss analysis of environmental impacts The expenses for environment protection measures amount to 24,562,212 RMB (which includes soil / water conservation and protection of the forest) and form 2.64% of the total project investment. Summarizing, Youchou Hydropower Project forms part of the hydropower cascade development plan for Youshui River. The construction of the project will make full use of the available hydropower resources of Youshui River and will improve the efficient use of the water resources by projects located downstream. The project constitutes a high quality hydropower addition and a peak demand power source to the Chongqing Grid. The project will benefit the development of Youyang County and therefore has a favourable social and economic impact. Upon completion of the Youchou Hydropower Station and with all environmental protection and pollution treatment measures properly executed, the project will have a limited impact to the local ecological environment and environmental quality of the Youshui River Basin. Therefore, the project is acceptable from the perspective of environmental protection. Recommendations During the construction of the project, the project entity should take environmental protection into consideration in the bidding proposals for construction activities. Furthermore, environmental protection supervision should be strengthened and the utmost should be done to carry out the environment protection measures and reduction of ecological environment impacts.

D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: The environmental impacts of the project are not considered significant by the Chinese government and the project participants. The Environmental Impact Assessment (EIA) was approved by the Chongqing Municipality Environmental Protection Bureau.

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SECTION E. Stakeholders’ comments E.1.

Brief description how comments by local stakeholders have been invited and compiled:

The project entity carried out a separate stakeholder consultation to confirm the impacts of the project on the relevant stakeholders. The consultation lasted for one month, from March 18 th to April 20th 2008, and consisted of the following elements: 



Distribution of questionnaires to local residents The seventeen villages impacted by the project were subject to an opinion poll, conducted in the form of a questionnaire distributed. A total of 422 questionnaires (418 collected) were distributed to local residents, including 82 questionnaires (79 collected) during the consultation meeting described below and 340 questionnaires (339 collected) directly in the villagers. The main findings are available in section E.2, table E.2.

Organization of a stakeholder consultation meeting near project site: Date / time: February 27th 2008, from 9:00 to 11:30. Location: Youchou Township Government meeting hall Agenda of the meeting: - Opening of the meeting - Introduction of the project - Introduction of the Clean Development Mechanism - Explanation of the stakeholder consultation process - Round of comments by each participant - Further questions and answers - Closing of the meeting

To ensure wide participation of stakeholders, announcements of the stakeholder consultation meeting and website were made through the following channels: -

Newspaper announcement on February 19th, 2008, in the Youyang News Online announcement on the Youyang News Site: www.yybwlb.com on February 19th, 2008. Bill postings in every village impacted by the project

In addition to the above announcements, important stakeholders received personal invitations to attend the meeting. See for attendance of the meeting Table E.1. A report of the main comments and outcomes of the meeting is provided in section E.2. Table E.1. List of stakeholders that attended the stakeholder consultation meeting No. Organization Participant 1 Environment protection bureau of Youyang County Yang Xinyuan 2 Water resource bureau of Youyang County Tian Fangli 3 Land resource and real estate bureau of Youyang county Li Shifu 4 Resettlement Bureau of Youyang county Huang Yiqun 5 Resettlement Bureau of Youchou hydro power station Weng Qin 6 Resettlement Bureau of Youchou hydro power station Chen Tuyong 7 Resettlement Bureau of Youchou hydro power station Zhang Jiecheng 8 Local government of Youchou town Luo Junxun

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM â&#x20AC;&#x201C; Executive Board 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59

Local government of Daxi town Local government of Daxi town Local government of Pianbai town Local government of Wufu town Local government of Keda town Local government of Keda town Xikou village Xikou village Xikou village Xikou village Jiangxi Village Jiangxi Village Jiangxi Village Jiangxi Village Daxi village Daxi village Daxi village Daxi village Changling village Changling village Changling village Changling village Jinxian village Jinxian Jinxian Jinxian village Chadian village Chadian village Chadian Chadian Shidi village Shidi village Shidi village Shidi village Erping village Erping Erping Erping Shanling village Shanling village Shanling village Shanling village Hetao village Hetao village Hetao village Hetao village Wufu village Wufu village Wufu village Wufu village Longsha village

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Li Maohong Xie Zhenwen Tian Huaqiang Ran Chengjun Luo Jinjie Tian Gongli Tian Renduo Tian Renyou Peng Lanying Bai Changke Li Shuhui Li Shuyuan Li Dexiang Song Wuquan Huang Fujiang Xiao Hebai Xing Yuangao Bai Guihua Peng Shiguo Peng Shicheng Xiao Lishang Yang Zaixing Tian Guoyin Tian Yingquan Tian Qingyu Wu Jide Li Shixian Li Wenyou Zhou Mingwu Liu Hongwan Zhang Tinggui Tian Fangzhi Lei Shiyou Li Shiquan Chen Changhua Tian Yongguo Wang Xuefu Huand Ningshu Ran Guohua Peng Xiangao Long Zongbao Huang Lianmu Zhang Wei Zhai Zixuan Zhang Yao Zhang Yixiong Tian Ying Zhang Anxiang Zhang Xiuhe Xiong Liangfu Luo Jinguo

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E.2.

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Longsha village Longsha village Longsha village Zhaojia village Zhaojia village Zhaojia village Zhaojia village Dahe village Dahe village Dahe village Dahe village Wujia village Wujia village Wujia village Wujia village Zhongba village Zhongba village Zhongba village Zhongba village Chengxiang village Chengxiang village Chengxiang village Chengxiang village

Peng Wenfu Xiang Shiguo Luo Songbo Lin Yiju Zhang Zhihua Wang Shichun Tian Yingshou Peng Mingqing Peng Shijin He Wangfen Peng Fanzhi Chen Yuanfeng Peng Jianguo Zhang Zhixue Peng Changjun Tian Yibei Luo Bifu He Shunmin Liu Rangjie Song Jiawang Song wenhou Xiang Mingcai Song Jiacai

Summary of the comments received:

Comments and opinions received at stakeholder consultation meeting: Each attendant of the stakeholder consultation meeting expressed his or her opinion on the proposed project. During the meeting many stakeholders asked general questions about the CDM procedures, these comments were omitted from the comments stated below. The project entity was represented by Chongqing Youshui Hydropower Development Co Ltd. - Mr. Fan Hu (Director) - Mr. Qin Lin (General Manager) An overview of the main comments/questions expressed during the meeting: Name: Yang Xinyuan Position / Affiliation: Environment Protection Bureau, Youyang County Comments: Mr. Yang explains that the Youchou station will not create air pollution after operation and that hydropower has a lot of advantages compared to coal based electricity generation. The project will also contribute to reduce greenhouse gas emissions. He adds that environmental impacts monitoring measures will be executed on a monthly basis, in accordance with the requirements of the EIA report. Name: Position / Affiliation: Comments:

Huang Yiqun Resettlement Bureau, Youyang County

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Mr. Huang says that the project will contribute to a sustainable development while making full use of water resources in the area. He confirms that local regulations on resettlement have been enforced. Name: Weng Qin Position / Affiliation: Resettlement Bureau of Youchou hydropower station Comments: Mr. Qin mentions that the project development abides by National Laws on resettlements. The Youyang County Government ensures the interests of relocated residents are protected. In addition, effective measures are enforced to preserve farmland whenever possible. Fish breeding activities will be developed. The project also contributes to alleviate local power shortage. Finally, Mr. Qin gives supplementary explanation that land expropriation and compensation work is complete and that 70% affected population has been relocated. He estimates the whole process will be finished by August 2008, before operationalization of the station. Name: Tian Fangli Position / Affiliation: Water resources bureau, Youyang County Mr. Tian states that renewable energy projects such as hydropower are supported by the Government. Name: Luo Junxun Position / Affiliation: Youchou Township Government Comments: For Mr. Luo, the project contributes to local economic development, improves infrastructure and also creates employment opportunities for local residents. Mr. Fan Hu, from the project entity, adds that about 1,000 local residents are employed during construction. Name: Tian Huaqiang Position / Affiliation: Pianbai Township Government Comments: Mr. Tian brings forward that living conditions of relocated residents will improve due to the project. Name: Bai Changke Position / Affiliation: Spokesperson for Xikou village Comments: Mr. Bai supports the construction of the Youchou station as employment opportunities will contribute to increase incomes. Name: Song Wuquan Position / Affiliation: Spokesperson for Jiangkou village Comments: Mr. Song explains that the project turns a natural resource into an economic resource. Jiangkou village supports the Youchou project. Name: Tian Yingquan Position / Affiliation: Jinxian village Comments: Mr. Tian explains that local residents are satisfied with the compensation for relocation and land expropriation. The new houses are of better quality than the old ones.

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Name: Peng Jianguo Position / Affiliation: Spokesperson for Wujia village Comments: Mr. Peng expresses Wujia villageâ&#x20AC;&#x;s support to the project as it brings convenience regarding transportation.

Results of the opinion poll in impacted villages: The survey clearly showed that local residents approve the construction of the project and expect that the operationalization of the Youchou hydropower station will bring additional benefits and contribute to the development of Youyang County. Table E.2.

Main findings of the questionnaire

Impacts of Youchou hydropower station Land expropriation

Economy

Society

Environment

Water

Daily life

General opinion

Compensation for relocation abides by the Law Relocation process is satisfactory Relocation process is not satisfactory Compensation for expropriated land abides by the Law Compensation for expropriation is satisfactory Compensation for expropriation is not satisfactory Promote local economic development Help develop livestock breeding Without negative impacts With negative impacts Employment opportunities Increase local income Improve stability of electric power Improve communications (boats, dam) Without negative impacts With negative impacts Replace the use of wood in daily life No discharge of pollutants Without negative impacts With negative impacts Facilitate water fetching Improve irrigation Without negative impacts With negative impacts With positive impacts With negative impacts Make no difference Support the project Against the project

Number of people investigated 75 408 408 74 413 413 411 411 407 401 412 412 412 412 407 407 412 412 392 392 405 405 403 403 417 417 417 414 414

% people who agree with the statement 98.67 100 0 98.65` 100 0 100 99.2 99.75 0.25 100 98.09 97.13 95.93 99.75 0.25 100 97.59 100 0 100 99.75 100 0 99.52 0.24 0.24 100 0

Furthermore, the stakeholder consultation results were summarized in Environment Impact assessment. The local residents approve the construction of the project and consider the Youchou hydropower station will promote the economy development. E.3.

Report on how due account was taken of any comments received:

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Given the generally positive nature of the comments received, no further measures are considered necessary.

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Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY The Project Entity: Organization:

Chongqing Youshui Hydropower Development Co., Ltd.

Street/P.O.Box:

Youchou town, Youyang County

Building:

City:

Chongqing Municipality

State/Region:

Youyang County

Postfix/ZIP:

408809

Country:

China

Telephone:

023-75414057

FAX:

023-75414057

E-Mail:

youshui518@163.com

URL: Represented by:

Fan Hu

Title:

Director

Salutation:

Last Name:

Fan

Middle Name:

First Name:

Department:

Company Office

Mobile: Direct FAX:

023-75414057

Direct tel:

023-75414057

Personal E-Mail:

Fanhu201299@yahoo.com.cn

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The Purchasing Party: 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:

AES Carbon Exchange, Ltd. 8 Par-La-Ville Road Mintflower Place, 4th floor Hamilton HM 08 Bermuda +1 321 549 3965 +1 (321) 722-9008 registry@aes.com http://www.aes.com Director of Regulatory Affairs and Quality Assurance Mr. Perkowski S Leo Regulatory +1 (321) 722-9008 +1 321 549 3965 leo.perkowski@aes.com

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Annex 2 INFORMATION REGARDING PUBLIC FUNDING The project does not receive any public funding from Annex I countries.

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Annex 3 BASELINE INFORMATION Our baseline calculation follows the methodology used in the OM and BM emission factors baseline calculation published by the Office of National Coordination Committee on Climate Change in 2nd July, 2009. Full information on the calculation of the baseline and underlying data can be found at: http://qhs.ndrc.gov.cn/qjfzjz/t20090703_289357.htm Below we provide the main data used in the calculation of the baseline emission factor. Table A1. Calculation of the Combined Margin Emission Factor Emission factor Value and Source Weight A 1

EFOM

EFBM

Weighted value

D=B*C

1.1255 Table A2 0.5802 Table A10, C

0.5

0.56276

0.5

0.29008 0.85285 D1 + D2

Table A2. Calculation of the Operating Margin Emission Factor Variable 2007 2006 A B 1 Supply of thermal power 377,233,680 334,027,226 to Central China grid Table A3c, C7 Table A3b, C7 (MWh) 2 Imports of power from 3,005,400 3,028,950 other grids (MWh) Files cited Files cited above above 3 Total power supply for 380,239,080 337,056,176 calculation EFOM (MWh) A3 = A1 + A2 B3 = B1 + B2 4 CO2 emissions associated 415,974,066 375,028,077 with thermal power generation on Central Table A4c, E Table A4b, E China grid (tCO2) 5 CO2 emissions associated 3,039,328 3,003,157 with power imports from Table A5 Table A5 other grids (tCO2) 6 Total CO2 emissions for 419,013,395 378,031,235 calculation EFOM (tCO2) A6 = A4 + A5 B6 = B4 + B5 7 EFOM (tCO2/MWh) 1.10197 1.12157 A6 / A3 B6 / B3

2005 C 286,203,305

Total D 997,464,211

Table A3a, C7

D1 = A1 + B1 + C1

6034350

Files cited above

D2 = A2 + B2 + C2

286,203,305 C3 = C1 + C2 332,420,496

1,003,498,561 D3 = D1 + D2 1,123,422,640

Table A4a, E

D4 = A4 + B4 + C4

6042485.897 D5 = A5 + B5 + C5

332,420,496

1,129,465,125

C6 = C4 + C5 1.16148 C6 / C3

D6 = D4 + D5 1.12553 D6 / D3

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Table A3a. Calculation of thermal power supply to Central China Grid, 2005. Grid Thermal Power Losses (%) Thermal power supply generation (MWh) (MWh) A B C = A * (100 - B) / 100 1

Jiangxi

30,000,000

6.48

28,056,000

Henan

131,590,000

7.32

121,957,612

Hubei

47,700,000

2.51

46,502,730

Hunan

39,900,000

5.00

37,905,000

Chongqing

17,584,000

8.05

16,168,488

Sichuan Central China

37,202,000

4.27

35,613,475

286,203,305 C7 = C1 + C2 + C3 + C4 + C5 + C6

Source: Data are from China Electric Power Yearbook 2006, p. 559-560, 568.

Table A3b. Calculation of thermal power supply to Central China Grid, 2006 Grid Thermal Power Losses (%) Thermal power supply generation (MWh) (MWh) A B C = A * (100 - B) / 100 1 32,323,497 Jiangxi 34,449,000 6.17 2

Henan

151,235,000

7.06

140,557,809

Hubei

54,841,000

2.75

53,332,873

Hunan

46,408,000

4.95

44,110,804

Chongqing

23,487,000

8.45

21,502,349

Sichuan Central China

44,193,000

4.51

42,199,896

334,027,226 C7 = C1 + C2 + C3 + C4 + C5 + C6

Source: Files mentioned above. Original data are from China Electric Power Yearbook 2007, p. 639. China Energy Statistics Book 2007.p42.

Table A3c. Calculation of thermal power supply to Central China Grid, 2007 Grid Thermal Power Losses (%) Thermal power supply generation (MWh) (MWh) A B C = A * (100 - B) / 100 1 42,100,000 7.72 38,849,880 Jiangxi 2 177,300,000 7.55 163,913,850 Henan 3

Hubei

60,900,000

6.69

56,825,790

Hunan

54,200,000

7.18

50,308,440

Chongqing

28,800,000

9.2

26,150,400

Sichuan Central China

45,100,000

8.68

41,185,320

408,400,000

377,233,680 C7 = C1 + C2 + C3 + C4 + C5 + C6

Source: Files mentioned above. Original data are from China Electric Power Yearbook 2008, p. 733-734

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Table A4a. Calculation of CO2 emissions from fuels for thermal power production, Central China Grid, 2005. Fuel

Unit

Raw coal

104 Tons

Clean coal

104 Tons

Other washed coal

104 Tons

Coke

104 Tons

Coke oven gas

108 m3

Other gas

108 m3

Crude oil

104 Tons

Gasoline

104 Tons

Diesel

104 Tons

Fuel oil

104 Tons

LPG

104 Tons

Refinery gas

104 Tons

Natural gas

108 m3

Other petroleum products

10 Tons

Other coking products

104 Tons

Other E (standard coal)

104 Tce

Jiangxi

1,869.29 0.02 0.00 0.00 0.00 0.00 0.00 0.00 1.30 0.64 0.00 0.71 0.00 0.00 0.00 0.00

Henan

7,638.87 0.00 138.12 25.95 0.00 10.20 0.82 0.02 3.03 0.29 0.00 3.41 0.00 0.00 0.00 2.88

Hubei

2,732.15 0.00 0.00 0.00 1.15 0.00 0.36 0.00 2.39 3.15 0.00 1.76 0.00 0.00 0.00 0.00

Sichuan

2,999.77 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.22 0.00 0.00 3.00 0.00 0.00 0.00

Hunan

1,712.27 0.00 0.00 105.00 0.00 0.00 0.00 0.00 1.39 1.68 0.00 0.78 0.00 0.00 1.50 1.74

Chongqing

Central

NCV

Oxidation factor

Carbon coefficient

CO2 emissions

China Grid

(TJ/unit)

(Fraction)

(kgCO2/TJ)

(tCO2)

E= A*B*C*D/1000

17,827.75

209.08

87,300

325,404,287.18

0.00

0.02

263.44

87,300

459.97

89.99

228.11

83.63

87,300

1,665,408.07

0.00

130.95

284.35

95,700

3,563,450.03

0.36

1.51

1672.6

37,300

94,205.85

3.12

13.32

522.7

37,300

259,696.18

0.00

1.18

418.16

71,100

35,082.79

0.02

0.04

430.7

67,500

1,162.89

1.38

9.49

426.52

72,600

293,861.19

0.89

8.87

418.16

75,500

280,035.48

0.00

501.79

61,600

0.00

6.66

460.55

48,200

147,842.08

0.00

3.00

3893.1

54,300

634,185.99

0.00

418.16

75,500

0.00

1.50

284.35

95,700

40,818.44

32.80

37.42

292.7

875.40

0.00

Total Data source: Fuel consumption data are from China Energy Statistical Yearbook 2006. Net calorific values are from the China Energy Statistical Yearbook, 2004 p. 302; Oxidation factors are IPCC default values , see 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 (energy). Fuel emission coefficients is the lower limit of 95% confidence interval to reflect uncertainty.

0.00 332,420,496.13

Σ(Ei)

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Table A4b. Calculation of CO2 emissions from fuels for thermal power production, Central China Grid, 2006. Fuel

Unit

Raw coal

104 Tons

Clean coal

104 Tons

Other washed coal Briquettes Coke Coke oven gas

10 Tons 10 Tons 10 Tons 8

10 m

Crude oil

LPG Refinery gas Natural gas

10 Tons

Sichuan Chongqing

2,454.48 3,285.22

1184.3

10 Tons

Other coking products

104 Tons

20,127.82

209.08

87,300

367,386,738.07

263.44

87,300

133,160.23

83.63

87,300

1,434,115.59

87,300

182.53

(tCO2) E=A*B*C*D/1000

5.79

4.51

104.12

8.59

79.21

196.43

0.01

17.23

0.32

17.55

284.35

95,700

477,575.78

0.52

1.07

4.24

0.01

0.38

6.22

1672.6

37,300

388,053.24

12.69

3.95

1.7

0.01

4.36

22.71

522.7

37,300

442,770.28

0.49

418.16

71,100

14,568.28

0.01

430.7

67,500

290.72

7.29

426.52

72,600

225,737.42

7.94

418.16

75,500

250,674.38

0.00

501.79

61,600

0.00

0.01

209.08

0.91

2.23

1.41

1.78

0.96

0.51

1.26

1.31

0.8

3.49

0.57

0.86

8.1

0.97

10.93

460.55

48,200

242,629.71

0.28

18.63

0.16

19.07

3893.1

54,300

4,031,308.94

0.00

418.16

75,500

0.00

0.01

284.35

95,700

272.12

134.00

292.7

0.00

10 Tons

CO2 emissions

10 m

(kgCO2/TJ)

4 8

Carbon coefficient

(Fraction)

10 Tons

Oxidation factor

10 Tons

NCV (TJ/unit)

104 Tons

Central China Grid

5.79

Other petroleum products

Other E (standard coal)

3,179.79

Hunan

Fuel oil

1,926.02 8,098.01

Hubei

10 m

Diesel

Henan

Other gas

Gasoline

Jiangxi

10 Tce 17.45

37.36

31.55

18.29

29.35

Total Data source: Fuel consumption data are from China Energy Statistical Yearbook 2007, p.178-214. Net calorific values are from the China Energy Statistical Yearbook, 2004 p. 302; Oxidation factors are IPCC default values; see 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 (energy). Fuel emission coefficients is the lower limit of 95% confidence interval to reflect uncertainty.

375,028,077.28

Σ(Ei)

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Table A4c. Calculation of CO2 emissions from fuels for thermal power production, Central China Grid, 2007. Fuel

Unit

Jiangxi

Henan

Hubei

Hunan

Chongqing

Sichuan

Central China Grid A

NCV

Carbon coefficient (kgCO2/TJ)

CO2 emissions

(TJ/unit)

Oxidation factor (Fraction)

E= A*B*C*D/1000

(tCO2)

Raw coal

104 Tons

1,863.80

6,948.50

2,510.50

2,197.90

875.5

2,747.90

17,144.10

209.08

87,300

410,829,403.68

Clean coal

104 Tons

2.34

263.44

87,300

157,998.40

Other washed coal Briquettes Coke

104 Tons 104 Tons 104 Tons

48.93 0 0

104.22 0 109.61

0 0 0

0 0.92 0

89.72 0 0

0 0 0

242.87 0.92 109.61

83.63 209.08 284.35

1 1 1

87,300 87,300 95,700

1,355,630.93 182.53 0.00

Coke oven gas

108 m3

1.68

0.34

2.02

1672.6

37,300

259,534.00

Other gas

108 m3

2.61

522.7

37,300

2,020,444.06

Crude oil

104 Tons

0.86

0.22

1.08

418.16

71,100

12,784.41

Gasoline

104 Tons

0.06

0.01

0.07

430.7

67,500

1,453.61

Diesel

104 Tons

0.02

3.86

1.7

1.72

1.14

8.44

426.52

72,600

354,862.93

Fuel oil

104 Tons

1.09

0.19

9.55

1.38

0.48

1.68

14.37

418.16

75,500

189,742.19

LPG

104 Tons

0.00

501.79

61,600

0.00

Refinery gas

104 Tons

3.52

2.27

5.79

460.55

48,200

291,022.47

108 m3

2.27

3893.1

54,300

501,006.93

0.00

418.16

75,500

0.00

10 Tons

0.00

284.35

95,700

0.00

104 Tce

16.92

15.2

20.95

53.07

292.7

0.00

Natural gas Other petroleum products Other coking products Other E (standard coal)

10 Tons

Total

415,974,066.13

Σ(Ei) Data source: Data source: Fuel consumption data are from China Energy Statistical Yearbook 2008, p.174-209. Net calorific values are from the China Energy Statistical Yearbook, 2008 p. 284; Oxidation factors are IPCC default values; see 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 (energy). Fuel emission coefficients is the lower limit of 95% confidence interval to reflect uncertainty.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM â&#x20AC;&#x201C; Executive Board page 63

Table A5. Calculation of emissions associated with imports from North West Grid Year

Imports (MWh) A

Average emission factor (tCO2/MWh) B

Associated CO2 emissions (tCO2) C=B*A

2006

3,028,950

0.820672818

2,485,777

2007

3,005,400

1.01129

3,039,328

Table A6 Table A6 Note: the Central China Power Grid did not import electricity in 2004 and 2005 Table A6. Calculation of average emission factors of North West Power Grid 2006 1

Total power supply (MWh)

Total CO2 Emissions (tCO2)

3 = 2/1

Average emission (tCO2/MWh)

Factor

156,142,241 Table A7 154,812,639 Table A9a

2007 178,920,940 Table A8 180,940,805 Table A9b

0.99148

1.01129

Table A7. Calculation of thermal power supply to North West Grid, 2006 Grid Thermal Power Losses (%) Thermal power supply generation (MWh) (MWh) A B C = A * (100 - B) / 100 1

Shaanxi

54,482,000

6.97

50,684,605

Gansu

35,738,000

4.29

34,204,840

Qinghai

7,204,000

2.57

7,018,857

Ningxia

36,731,000

N.A.

36,731,000

Xinjiang North West

29,901,000

8.02

27,502,940

156,142,241

C7 = C1 + C2 + C3 + C4 + C5 + C6 Source: Original data are from China Electric Power Yearbook 2007, p. p. 559-560, 568.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM â&#x20AC;&#x201C; Executive Board page 64

Table A8. Calculation of total power supply to North West Grid, 2007 Grid Total Power Losses (%) generation (MWh) 6.77

C = A * (100 - B) / 100 55,098,930

42,400,000

5.89

39,902,640

Qinghai

9,700,000

7.19

9,002,570

Ningxia

43,500,000

0.00

43,500,000

Xinjiang North West

34,600,000 214,201,000

9.20

31,416,800

Shaanxi

Gansu

A 59,100,000

Thermal power supply (MWh)

178,920,940 C7 = C1 + C2 + C3 + C4 + C5 + C6 Source: Original data are from China Electric Power Yearbook 2008, p. 733-734.

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

page 65

Table A9a. Calculation of CO2 emissions from fuels for thermal power production, North West Grid, 2006

Fuel

Unit

Raw coal

104 Tons

Clean coal

104 Tons

Other washed coal

104 Tons

Coke

10 Tons

Shaanxi

Gansu

Qinghai

Ningxia

North West China

NCV (TJ/unit)

Oxidation factor (Fraction)

Carbon coefficient (kg CO2/TJ)

CO2 emissions (tCO2)

E= A*B*C* D/1000 151,47 2,271

Xinjiang

2,834.44

1,660.92

421.86

1,833.72

1,547.69

8,298.63

209.08

87,300

0.00

263.44

87,300

0.00

112.70

8.45

121.15

83.63

87,300

884,50 4

0.00

0.01

0.00

0.01

284.35

95,700

272

Coke oven gas

10 m

0.20

0.00

0.08

0.28

1672.6

37,300

17,469

Other gas

108 m3

0.10

0.00

0.10

522.7

37,300

1,950

Crude oil

10 Tons

0.00

0.02

418.16

71,100

595

Gasoline

104 Tons

0.01

0.00

0.01

430.7

67,500

291

Diesel

104 Tons

Fuel oil

104 Tons

1.14

0.24

0.61

0.00

1.25

3.24

426.52

72,600

100,32 8

0.00

0.60

0.00

0.11

0.71

418.16

75,500

22,415

LPG

10 Tons

0.00

501.79

61,600

Refinery gas

104 Tons

0.00

460.55

48,200

1.59

0.56

1.06

0.00

7.49

10.70

3893.1

54,300

2,261, 930

Natural gas

10 m

Other petroleum products

104 Tons

0.00

418.16

75,500

Other coking products

104 Tons

1.86

0.00

1.86

284.35

95,700

50,615

Other E (standard coal)

104 Tce

33.57

8.81

0.00

2.20

44.58

292.7

0 154,81 2,639

Total Data source: Fuel consumption data are from China Energy Statistical Yearbook 2006, p.126-246. Net calorific values are from the China Energy Statistical Yearbook, 2004 p. 302; Oxidation factors and fuel emission coefficients are IPCC default values; see 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 (energy

Σ(Ei)

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

page 66

Table A9b. Calculation of CO2 emissions from fuels for thermal power production, North West Grid, 2007 Fuel

Unit

Shaanxi

Gansu

Qinghai

Ningxia

Xinjiang

North West China

NCV (TJ/unit)

Oxidation factor (Fraction)

Carbon coefficient (kg CO2/TJ)

CO2 emissions (tCO2)

E = A*B*C*D/1000

Raw coal

104 Tons

2,834.44

1,660.92

421.86

1,833.72

1,547.69

8,298.63

209.08

87,300

176,525,905

Clean coal

104 Tons

0.00

263.44

87,300

0.00

112.70

8.45

121.15

83.63

87,300

991,243

Other washed coal

10 Tons 4

Coke

10 Tons

0.00

0.01

0.00

0.01

284.35

95,700

64,432

Coke oven gas

108 m3

0.20

0.00

0.08

0.28

1672.6

37,300

0.10

0.00

0.10

522.7

37,300

89,215

Other gas

10 m

Crude oil

10 Tons

0.00

0.02

418.16

71,100

289,526

Gasoline

104 Tons

0.01

0.00

0.01

430.7

67,500

2,676

1.14

0.24

0.61

0.00

1.25

3.24

426.52

72,600

581

0.00

0.60

0.00

0.11

0.71

418.16

75,500

110,546

0.00

501.79

61,600

36,307

0.00

460.55

48,200

1.59

0.56

1.06

0.00

7.49

10.70

3893.1

54,300

132,969

0.00

418.16

75,500

2,697,404

Diesel Fuel oil LPG Refinery gas Natural gas Other petroleum products

10 Tons 4

10 Tons 8

10 m 4

10 Tons 4

Other coking products

10 Tons

1.86

0.00

1.86

284.35

95,700

Other E (standard coal)

104 Tce

33.57

8.81

0.00

2.20

44.58

292.7

Total Data source: Fuel consumption data are from China Energy Statistical Yearbook 2008. Net calorific values are from the China Energy Statistical Yearbook, 2008 p. 284; Oxidation factors are IPCC default values; see 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 (energy). Fuel emission coefficients is the lower limit of 95% confidence interval to reflect uncertainty.

180,940,805

Σ(Ei)

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 67

Table A10. Calculation of the BM Emission Factor, Central China Grid EFthermal (tCO2/MWh)

Share of thermal power in added capacity, 2006-2004

EFBM (tCO2/MWh)

C=A*B

0.82130

70.64%

Table A11

Table A14

0.5802

Table A11. Calculation of EF thermal λ

EFadv

EFthermal calculation

C=A*B

0.82488189 Table A12 0.39104

Coal

Gas

99.13% Table A13 0.74%

Oil

Table A13 0.13%

Table A12 0.54371

Table A13

Table A12

3 4

0.8177 0.00289 0.00073 0.82130

EFthermal

Table A12. Calculation of Emission factors of fuel using advanced technologies Fuel Efficiency Carbon Oxidation EFadv (tCO2/MWh) (%) coefficient factor (kgCO2/TJ) A B C D =(3.6/(A*1000000))*B*C Coal 38.10% 87,300 1 0.8249 Gas

49.99%

54,300

0.3910

Oil 49.99% 75,500 1 Source: Files downloaded and mentioned above.

0.5437

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

page 68

Table A13. Calculation of λs for the calculation of the BM, Central China Grid. Fuel

Raw coal Clean coal Other washed coal

Unit

104 Tons

Central

NCV

Total energy consumption Central China

Oxidation factor

Carbon coefficient

CO2 emissions

China Grid

(TJ/unit)

(Fraction)

(TC/TJ)

(tCO2)

E = A*B*C*D/1000

20,127.82

209.08

4,705,949.64

87,300

410,829,404

5.79

263.44

1,809.83

87,300

157,998

196.43

83.63

15,528.42

87,300

1,355,631

209.08

2.09

87,300

183

95,700

10 Tons 10 Tons 4

Briquettes

10 Tons

0.01

Coke

104 Tons

17.55

284.35

0.00

Other coking products

104 Tons

0.00

284.35

0.00

Coke oven gas

108 m3

6.22

1672.6

6,958.02

Other gas

108 m3

22.71

522.7

54,167.40

37,300

2,020,444

LPG

104 Tons

0.00

501.79

0.00

37,300

Refinery gas

104 Tons

10.93

460.55

6,037.81

61,600

291,022

Natural gas

108 m3

19.07

3893.1

9,226.65

48,200

501,007

76,389.87

54,300

3,072,007

Coal, total

4,723,289.98

Gas total

412,343,216 259,534

Crude oil

104 Tons

0.49

418.16

179.81

Gasoline

104 Tons

0.01

430.7

21.54

71,100

1,454

7.29

426.52

4,887.92

67,500

354,863

2,513.14

72,600

189,742

75,500

Diesel

10 Tons

Fuel oil

10 Tons

7.94

418.16

Other petroleum products

104 Tons

0.00

418.16 7,602.40

Oil total

Total

12,784

558,843

1,809.83

415,974,066 Σ(Ei)

Note: λ is calculated as the share of Coal, Gas respectively Oil in total CO2 emissions.

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

page 69

Lambda Λcoal

99.13%

Λgas

0.74%

Λoil

0.13%

Table A14. Calculation of the share of thermal power in recently added capacity Installed Capacity added Share in 2005 2006 2007 capacity in 2007-2005 added A B C D=C-A capacity Thermal (MW) 60,167.20 76,658.00 92,580.00 32,412.80 70.64% Hydropow er (MW) 48,205.20 52,518.00 61,650.00 13,444.80 29.30% Nuclear (MW) 0.00 0.00 0.00 0.00 0.00% Other (MW) 24.00 41.00 51.00 27.00 0.06% Total (MW) 108,396.40 129,217.00 154,281.00 45,884.60 100.00% Percentage of 2006 capacity 70.26% 83.75% 100.00% Source: China Electric Power Yearbook 2006-2008

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

page 70

Annex 4 MONITORING INFORMATION Selection procedure: The monitoring officer will be appointed by the general manager of Chongqing Youshui Hydropower Development Co. Ltd. The monitoring officer will be selected from among the senior technical or managerial staff. Tasks and responsibilities: The monitoring officer will be responsible for carrying out the following tasks  Supervise and verify metering and recording: The monitoring officer will coordinate with the plant manager to ensure and verify adequate metering and recording of data, including power delivered to the grid.  Collection of additional data, sales / billing receipts: The monitoring officer will collect sales receipts for power delivered to the grid, billing receipts for power delivered by the grid to the hydropower station and additional data such as the daily operational reports of the hydropower station.  Calculation of emission reductions: The monitoring officer will calculate the annual emission reductions on the basis of net power supply to the grid. The monitoring officer will be provided with a calculation template in electronic form by the project‟s CDM advisors.  Preparation of monitoring report: The monitoring officer will annually prepare a monitoring report which will include among others a summary of daily operations, metering values of power supplied to and received from the grid, copies of sales/billing receipts, a report on calibration and a calculation of emission reductions.

VALIDATION REPORT AES Carbon Exchange Ltd.

Chongqing Youyang County Youchou Hydropower Station Project

REPORT NO. : 10011032

China Environmental United Certification Center Co., Ltd No. 1 Yuhuinanlu, Chaoyang District, Beijing, China 100029 www.mepcec.com

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

Date of First Issue:

Report No:

02/04/2010

10011032

Organizational Unit:

Client:

China Environmental United Certification Center Co., Ltd (CEC) Project Title:

AES Carbon Exchange Ltd. Country:

Chongqing Youyang County Youchou Hydropower Station Project

China

Methodology and Version

Sectoral Scope:

ACM0002 (Version 10)

PDD for GSP

Final PDD Version

Date:31/12/2009

Date:20/07/2010

Version:2.0

Version: 3.0

GHG Reducing Measure/Technology

ER Estimate:

Renewable

Power

Generation

from

Hydro

332,611 tCO2e per year during the first crediting period.

Sources

China Environmental United Certification Center Co., Ltd (CEC) has performed the validation of Chongqing Youyang County Youchou Hydropower Station Project on the basis of all applicable CDM requirements. The CDM requirements include the CDM modalities and procedures and subsequent decisions by the CMP and documents released by the CDM Executive Board and available on the UNFCCC CDM website. The validation scope is defined as an independent and objective review of the PDD, the Project’s baseline study, monitoring plan and other relevant documents, and consisted of the following three phases: i) desk review of the Project design and the baseline and monitoring plan; ii) follow-up interviews with Project stakeholders; iii) resolution of outstanding issues and the issuance of the final validation report and opinion. The overall validation, from contract review to validation report & opinion, was conducted using CEC internal procedures. The first output of the validation process is a list of Clarification and Corrective Actions Requests (CLs and CARs), presented in Appendix A. Taking into account this output, the Project participant took corrections and revised its Project design document. In summary, it is CEC’s opinion that Chongqing Youyang County Youchou Hydropower Station Project, as described in the PDD ver.3.0 dated 20/07/2010, meets all relevant UNFCCC requirements for the CDM and all relevant Host Parties criteria and correctly applied the baseline and monitoring methodology ACM0002 ver.10. CEC thus requests the registration of the Project as a CDM Project activity. Work Carried out by:

Date of this revision

Rev. No.

Number of Pages:

ZHANG Ruizhi, WANG Yanping,

31/08/2010

Work Reviewed by:

□Draft Validation Report

XU Linghua, ZHANG Xiaohong

■Final Validation Report

Work Verified by:

■ No

ZHANG Xiaodan

responsible organizational unit)

CDM Supervisor, Technical Director

□ Limited Distribution

Approved by:

□ Unrestricted Distribution

Distribution

(without

permission

from

the

client

TANG Dingding, Chairman of Board

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

Abbreviations CAR

Corrective Action Request

CSPG

China Southern Power Grid

CER

Certified Emission Reduction

Clarification Request

CO2

Carbon Dioxide

DNA

Designated National Authority

DOE

Designated Operational Entity

Document Review

Executive Board

EIA

Environmental Impact Assessment

Emission Reduction

ERPA

Emission Reduction Purchase Agreement

FAR

Forward Action Request

FSR

Feasibility Study Report

GHG

Greenhouse Gas

GSP

Global Stakeholders Process

GWh

Giga Watt Hours

Interview

IPCC

Intergovernmental Panel on Climate Change

IRR

Internal Rate of Return

Kilo Watt

kWh

Kilo Watt Hours

LoA

Letter of Approval

MoV

Means of Verification

Mega Watt

MWh

Mega Watt Hours

N/A

Not Applicable

NDRC

National Development and Reform Commission

NGO

Non Government Organization

ERPA

Emission Reduction Purchasing Agreement

PDD

Project Design Document

PDR

Preliminary Design Report

UNFCCC

United Nations Framework Convention on Climate Change

VVM

Validation and Verification Manual

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

TABLE OF CONTENTS 1. INTRODUCTION ....................................................................................... 4 1.1

Objective ...................................................................................................................... 4

1.2

Scope ........................................................................................................................... 4

1.3

Validation Team........................................................................................................... 4

2. METHODOLOGIES ................................................................................... 5 2.1

Validation Protocol ...................................................................................................... 5

2.2 Document Review............................................................................................................ 7 2.3

Follow-up Interviews .................................................................................................. 8

2.4

Resolution of Corrective Action, Clarification and Forward Action Requests .... 9

2.5

Internal Quality Control ............................................................................................ 10

3. VALIDATION FINDINGS .......................................................................... 11 3.1

Approval and Participation ...................................................................................... 11

3.2

Project Design Document ....................................................................................... 12

3.3

Project Description ................................................................................................... 12

3.4

Baseline and Monitoring Methodology .................................................................. 13

3.5

Additionality ............................................................................................................... 15

3.6 Emission Reductions .................................................................................................. 22 3.7 Monitoring Plan ........................................................................................................... 24 3.8

Sustainable Development ....................................................................................... 26

3.9 Stakeholders Consultation ......................................................................................... 26 3.10 Environmental Impacts............................................................................................. 27

4. VALIDATION OPINION ............................................................................ 27 5. REFERENCES ........................................................................................ 29 6. PERSONS INTERVIEWED ..................................................................... 32

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

1. INTRODUCTION AES Carbon Exchange Ltd. has commissioned CEC to perform the validation of the project: Chongqing Youyang County Youchou Hydropower Station Project (hereafter called “the project”) with regard to the relevant requirements for CDM project activities. This report summarizes the findings of the validation of the project, performed on the basis of UNFCCC criteria for the CDM, as well as criteria given to provide for consistent project operations, monitoring and reporting.

1.1 Objective The purpose of a validation is to have an independent third party assess the project design. In particular, the project’s baseline, additionality, the monitoring plan and the project’s compliance with relevant UNFCCC and host country criteria validated in order to confirm that the project design, as documented, is sound and reasonable and meets the stated requirements and identified criteria. Validation is a requirement for all CDM projects and is seen as necessary to provide assurance to stakeholders of the quality of the project and its intended generation of certified emission reductions (CERs).

1.2 Scope The validation scope is defined as an independent and objective review of the project design document (PDD). The PDD is reviewed against the criteria stated in Article 12 of the Kyoto Protocol, the CDM modalities and procedures as agreed in the Marrakech Accords, the simplified modalities and procedures for small-scale CDM project activities and relevant decisions by the CDM Executive Board, including the approved baseline and monitoring methodology ACM0002 Version 10. The validation team has also conducted the validation process basing on the recommendations in the Validation and Verification Manual (VVM). The validation is not meant to provide any consulting services to the project participants. However, stated requests for clarifications and/or corrective actions may have provided input for improvement of the project design.

1.3 Validation Team According to the technical scopes and experiences in the sectoral or national business environment, CEC has composed a validation team, the composition is shown in the following table. Table 1 Validation team

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

Name

Role

Qualification

ZHANG Ruizhi

Team Leader

Auditor

WANG Yanping

Team Member

Auditor

Specific Scope √

2. METHODOLOGIES The validation consists of the following phases: I

A desk review of the project design documents:



Review of data and information to verify the correctness, credibility and interpretation of presented information;



Cross checks between information provided in the PDD and information from sources other than that used, conduct independent background investigations.



Reference to available information relating to projects or technologies similar to the proposed project; and



Review,

based

the

approved methodology

being

applied,

the

appropriateness of the value and formulae applied and correctness of calculations. II

Follow-up actions (e.g., on site visit and telephone or email interviews), including:



Interviews with relevant stakeholders in the host country, personnel with knowledge of the project design and implementation;



Cross-check of information provided by interviewed personnel (i.e. by checking sources or other interviews) to ensure that no relevant information has been omitted from the validation;

III Reference to available information relating to projects or technologies similar to the proposed CDM project activity under validation; and IV Review, based on the approved methodology being applied, of the appropriateness of formulae and correctness of calculations. V The resolution of outstanding issues and the issuance of the final validation report and opinion

2.1 Validation Protocol In order to ensure transparency, a validation protocol was customized for the proposed project, according to the Validation and Verification Manual. The protocol shows in transparent manner criteria (requirements), means of verification and the

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

results from validating the identified criteria. The validation protocol serves the following purpose: 

It organises, details and clarifies the requirements a CDM project is expected to meet;



It ensures a transparent validation process where the validater will document how a particular requirement has been validated and the result of the validation.

The validation protocol consists of two tables. The different columns in these tables are described in the figure below. The completed validation protocol for the “Chongqing Youyang County Youchou Hydropower Station Project” is enclosed in Appendix A to this report. Corrective action requests (CARs) are raised where: i) The project participants have made mistakes that will influence the ability of the project activity to achieve real, measurable additional emission reductions; ii) The CDM requirements have not been met; iii) There is a risk that emission reductions cannot be monitored or calculated. Request for clarifications (CLs) are raised where information is insufficient or not clear enough to determine whether the applicable CDM requirements have been met. Forward action request (FAR) are raised to highlight issues related to project implementation that require review during the first verification of the project activity. FARs shall not relate to the CDM requirements for registration. Validation Protocol Table 1: Requirement checklist Checklist

Reference

Means of

question

Comment

Draft

and/or

Final

Verification(MoV)

Conclusion The

various

Gives

Explains

how

The section is

This is either

requirements in

reference to

conformance

with

used

acceptable

Table2

documents

the

where

the

question

answer

linked

are to

checklist questions project meet.

the should The

checklist

organized

the checklist

investigated. Examples

question

or means

item

found.

checklist

verification document

elaborate and

based

discuss

evidence

the

checklist

provided (OK),

question

or a corrective

and/or

are review

(DR) or interview

China Environmental United Certification Center Co., Ltd.

the

action request

conformance

(CAR) due to

noncompliance

the

question. It is

with

the

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

different

(I). N/A means not

further used to

checklist

sections,

applicable.

explain

question

the

(See

following

the

conclusions

below).

logic

the

reached.

request

for

large-scale PDD

clarification

template,

(CL)

version 03 – in

when

effect as of: 28

validation team

July

has identified a

2006.

Each

used the

need for further

section is then

clarification.

further

request

sub-divided.

forward action

A for

request (FAR) is used for a need for review during the first verification.

Validation Protocol Table 2: Resolution of Corrective Action and Clarification Requests Draft clarifications corrective

report

Ref.

and

checklist

action

question

Summary project

of owner

Validation conclusion

response

requests

table 2

If the conclusions from

Reference to the

The

the draft Validation are

checklist

given by the project

summaries

CARs, CLs or FARs,

question

participants

validation

these requests should

number in Table

the communications

responses and final

be listed in this section.

with the validation

conclusions.

The

CARs, CLs or

team

conclusions

should

FARs

summarized in this

also be included in

section.

Table 2, under “Final

where

explained.

the are

responses during

should

This section should the team’s

Conclusion”.

2.2 Document Review Once CEC receives the Project Design Document (PDD) version 2.0, it is made

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

publicly available on the internet on the UNFCCC CDM web pages for starting a 30 days global stakeholder consultation process (GSP). The information of PDD versions is presented on Page 1. To address the validation teamâ&#x20AC;&#x2122;s corrective action and clarification requests, the PP revised the PDD ver. 3.0 and resubmitted it on 20/07/2010 and the validation findings presented in this report related to the project are described in the PDD ver. 3.0 date 20/07/2010.

2.3 Follow-up Interviews From 18 March 2010 to 20 March 2010, CEC performed on-site interviews with project proponent, project developer and stakeholders to confirm information and to resolve issues identified in the document review. Table 2 provides a list of all persons interviewed in the context of this on-site visit and summarizes the main topics of the interviews. Table 2 Interviewed persons and topics Name

Organization/Title

Topic

QIN Lin

Chongqing Youyang

Project background information

County Youchou

Project design and status

Hydropower Station

Sustainable development issues

Project /Head of the

Stakeholder process

Board

Approval by the local governments Investment barriers Application for CDM Issues affecting the local community Implementation of the compensation

FAN Hu

Chongqing Youyang

Technical

issues

during

County Youchou

construction and operation

Hydropower Station

Technical equipment

Project /Vice

Monitoring plan

President

Training history

the

project

Management system ZHAO Dianhui,

Caspervandertak LI Consulting and

Zhenlan and Gansu Tonghe

Pre-preparation and application for CDM Project related legal issues Sustainable development issues

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

YANG Hui

Investment Project

Monitoring plan

Consulting Co.,

Training history

Ltd./Consultant

Management system Environmental impacts Stakeholder process Approval by the host country

Stake

Several departments The approval process of the project

holders

of local government

The status of economy in the local area

and affected local residence

The development of hydropower projects in the local area The

policy

and

regulation

hydropower projects Land levy of the project Compensation regulations for land levy and migration resettlement The projectâ&#x20AC;&#x2122;s influence on local economy, environment and society CDM projects development in local area Status of water resource and its usage in local area Environmental impact of the project Sustainable development issues Status of electricity generation in local area Environmental impact of the project The projectâ&#x20AC;&#x2122;s influence on local economy, environment and society

2.4 Resolution of Corrective Action, Clarification and Forward Action Requests According to the requirements of VVM, If during the validation of a project activity, the DOE identifies issues that need to be further elaborated upon, researched or added to in order to confirm that the project activity meets the CDM requirements and can achieve credible emission reductions, the DOE shall ensure that these issues are correctly identified, discussed and concluded in the validation report. China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

The CARs, CLs and FARs can only be resolved or closed out if the project participants modify the project design, rectify the PDD or provide adequate additional explanations or evidence that satisfies the DOEâ&#x20AC;&#x2122;s concerns. If this is not done, the DOE shall not recommend the project activity for registration to the CDM Executive Board. To guarantee the transparency of the verification process, the issues raised and how they were resolved are documented in more detail in part 3 of the report and the validation protocol in Appendix A. Table 3 Main Changes in the Content of the PDDs Subject and Section in the PDD

Main Changes in the Revised PDD

Section A

PDD version and revision history

General Description of Project Activity

Coordinates

Section B

Investment, sensitivity and common

Application of a Baseline and Monitoring

practice assessments

Methodology

Prior consideration of CDM Monitoring plan

Section C

Starting date

Duration of the Project Activity /Crediting Period Section D

N/A

Environmental Impacts Section E

Number of collected questioners

Stakeholdersâ&#x20AC;&#x2122; Comments

2.5 Internal Quality Control As final step of a validation, the validation report and the validation protocol have to be reviewed by the technical reviewers, then verified by the CDM Supervisor and finally approved by Chairman of Board according to the regulations on technical review of CEC; the technical reviewers have to be independent from the validation team. The validation opinion and relevant documents are submitted to the EB through the UNFCCC web-platform.

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CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

3. VALIDATION FINDINGS The findings from the document review, on-site visits and interviews are summarized in following sections of this chapter. The validation criteria (requirements), the means of validation and the results from validating the identified criteria are detailed in the validation protocol in Appendix A. No FAR was found. The information of CARs and CLs are shown in table 4: Table 4 No. of CARs and CLs No. of

No. of

CARs

CLs

General description of project activity (A)

Application of baseline and monitoring methodology (B)

Duration of the Project / Crediting Period (C)

Environmental impacts (D)

Stakeholder Comments (E)

SUM

Validation Topic

3.1 Approval and Participation The project participants are Chongqing Youshui Hydropower Development Co., Ltd. (China) and AES Carbon Exchange Ltd. (The Netherlands). The Letter of Approval (LoA) of the host Party was issued by the DNA of China on 09/01/2009, confirming the project is a bilateral CDM project, with Chongqing Youshui Hydropower Development Co., Ltd. and AES Carbon Exchange Ltd. authorized as the project participant. The LoA also confirmed the voluntary participation of the proposed project, in compliance with permission requirements and assisting China in achieving sustainable development. The LoA of the DNA of China was provided by the project participant. CEC confirmed its authenticity by cross-checking the Announcement of newly approved projects issued by DNA of China on 11/11/2008/5/ and relative documents of local government/2.2, 2.4/. The information of Project Participants and project title in these documents is consistent with the PDD. The LoA of the DNA (Ministry of Housing, Spatial Planning and the Environment) of the Netherlands was issued on 25/08/2010, confirming that it authorizes AES Carbon Exchange, Ltd. as a project proponent in the proposed project. The approval is not China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

conditional, and the participation is voluntary. Both LoAs do not refer to any specific version of the PDD or validation report. Both LoAs are valid for Chongqing Youyang County Youchou Hydropower Station Project. The related documents including PDD and MOC are consistent with the LoAs. The host party China meets the requirement to participate in the CDM. China is a non Annex I party to the Kyoto Protocol. China has established a DNA (National Development and Reform Committee, NDRC) as per the participating requirements for CDM under the Kyoto Protocol. The Netherlands has ratified the Kyoto Protocol on 31 May 2002. The host Party China and the participating Annex I Party the Netherlands both meet the requirements to participate in the CDM. Non-Annex 1 Country: http://maindb.unfccc.int/public/country.pl?country=CN And Annex 1 Country: http://maindb.unfccc.int/public/country.pl?country=NL CAR01 was raised and closed. Please see details in Appendix A. The validation team concluded that the participants and approvals are fully complying with the requirements of the CDM. According to Annex 2 of the PDD, the proposed project does not receive any public funding. The validation did not reveal any information that indicates that official development assistant (ODA) from Annex I Parties is involved in the proposed project.

3.2 Project Design Document In PDD version 02, the latest approved PDD template had been correctly applied. The validation team confirms that it is in accordance with the latest template and guidance from the CDM Executive Board available on the UNFCCC CDM website. The final version of PDD dated 20/07/2010 was provided and reviewed by the validation team. The validation team considers that the guidelines for the completion of the PDD in their most recent version have been followed. Relevant information has been provided by the participants in the corresponding PDD sections. By employing the validation protocol checklist included in Appendix A of the validation report, the project description is assessed to be accurate and complete.

3.3 Project Description The project is the construction of a grid-connected large-scale hydropower project located at the main stream of Youshui River near Youchou Township of Youyang County, Chongqing Municipality, China. The total installed capacity of the Project is 120 MW, consists two sets of 60 MW water turbines and generators. The expected full load operating hours are 3,267 hours China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

annually, the power load factor is 0.3729, and the expected net annual power supply to the grid is 390,000 MWh. The power generated by the proposed project will be routed via an on-site step-up station to the 220 kV Youyang transformer station which is an integral part of the Chongqing Municipality Power Grid, and finally supply to the Central China Grid. The estimated annual GHG emission reduction is 332,611 tCO2e. Through desk review, on-site view and interview with the project participants, it has been validated that the information provided in the PDD is consistent and in compliance with the actual situation and planning, the description is complete. The validation team checked the parameters of water turbine and generator, the type and parameter in the PDD is consistent with the purchase contract. The rated flow of the two turbines is 161.3m3/s, and the rated output power is 61.86 MW. The rated power of the two generators is 60 MW, and the rated frequency is 50Hz. The construction of the dam, flood gates and sand sluices is as per the FSR. The powerhouse is integrated in the dam with the turbines installed at the basement per the FSR. Based on the document review and on site visit, CEC confirmed that the description of the proposed project activity as contained in the PDD is accurate and outlines the nature and technical aspects of the project activity. The project activity does not involve any technology transfer. The technology applied is environmentally safe. The project is considered to contribute to sustainable development in the host country (P.R. China), by utilizing renewable water resources available in the project region, eliminating the environmental pollution caused by operation of fossil fuel-fired power plants and to achieve various social, economic and environmental benefits, such as the employment of the local people during the construction and operation period. CL 02 was raised and closed. Please see details in Appendix A. The validation team is able to confirm that the project description, as per the PDD, is sufficiently accurate and complete and therefore comply with CDM requirements.

3.4 Baseline and Monitoring Methodology 3.4.1 Applicability of the selected methodology to the project activity The approved consolidated baseline and monitoring methodology ACM0002: â&#x20AC;&#x153;Consolidated baseline methodology for grid-connected electricity generation from renewable sourcesâ&#x20AC;? (Version 10) is applicable to the proposed CDM project activity as it involves a newly built grid-connected renewable power generation using hydro energy. ACM0002 version 10 is valid from 11 Jun 09 to 25 Feb 10, which is valid at the time of PDD for global stakeholder publication on 12/02/2010, the requests for registration can be submitted until 25/10/2010 23:59 GMT, so the application of this China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

version is valid. This methodology is applicable to grid-connected renewable power generation project activities that install a new power plant at a site where no renewable power plant was operated prior to the implementation of the project activity. Thus application of the selected methodology and its version is deemed to be justified. This methodology draws upon the following tools: Tool for the demonstration and assessment of additionality (version 05.2) and Tool to calculate the emission factor for an electricity system (version 02). Based on the on-site assessment, the validation team hereby confirms that as a result of the implementation of the proposed CDM project activity, there are no greenhouse gas emissions occurring within the proposed project boundary, which are expected to contribute more than 1% of the overall expected average annual emissions reductions, which are not addressed by the applied methodology. The validation team hereby confirms that the chosen baseline and monitoring methodology is correctly applied to the proposed project. 3.4.2 Project boundary The boundary of the proposed project is selected to be the geographical and physical boundaries of the proposed project and covers all the power plants connected with the Central China Power Grid. According to latest the guidance of Chinaâ&#x20AC;&#x2122;s DNA issued on 02/07/2009, the Central China Power Grid covers provinces and areas of Henan, Hubei, Hunan, Jiangxi, Sichuan and Chongqing. According to China Electric Power Yearbook, CCPG imports electricity from the Northwest China Power Grid, the NCPG is the connected electricity system. The PDD also take account of the emissions associated with the imports of power from the NCPG when choosing CCPG as the project boundary. The power generated by the proposed project is transmitted via on-site step-up stations to the 220 kV Youyang transformer station which is an integral part of the Chongqing Power Grid and finally to the CCPG. Through document review and on-site observation, the project is under normal generation and supplies electricity to CCPG. So the boundary and baseline selection of proposed project is correct. The validation team confirms that the identification of project boundary is in compliance with the applied methodology and the identified boundary, the selected sources and gases as documented in the PDD are justified for the project activity. 3.4.3 Baseline identification According to the approved methodology, the emission baseline is the net kWh produced/displaced by the renewable generating unit multiplied by an emission coefficient of the grid. Thus the baseline emission of the proposed project is the China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

amount of net electricity (kWh) supplied to the grid multiplied by emission coefficient of CCPG. A complete list of four credible alternatives has been identified to the project activity in the PDD. Scenario 1: Fossil fuel-fired power generation Scenario 2: Power generation from wind power or other renewable energy Scenario 3: The proposed hydropower Station, without the support of CDM Scenario 4: The same service of power supply is provided from grid (i.e. continuation of the present situation) Scenario 1 is not in compliance with the applicable regulation; all other alternatives are in compliance. Scenario 2 is not realistic because of lack of resources and power generation techniques. The demonstration is cross-checked with China Electric Power Yearbook 2006. The installed capacity of different power sources in Central China Power Grid mainly comes from stations and hydro power stations in 2005, which is the time when investment decision was made. The installed capacity from other resources in CCPG is only 24MW, less than the installed capacity of the proposed project. Table 5 Installed capacity of different power sources in Central China Power Grid in 2005 Total

108,396.4MW

Coal-fired

Hydro

Nuclear

Wind

power

60,167.3MW

48,205.1MW

Others

24MW

Scenario 3 is not realistic because of lack of financial attractive. So Scenario 4 is the most applicable alternative.

3.5 Additionality In section B.5 of the PDD, additionality is justified with the investment barrier approach according to the Tool for the demonstration and assessment of additionality (version 05.2). 3.5.1 Prior consideration and continued action to secure CDM status and start date The proposed project activity is a newly built project constructed before the start of the validation. The correlative timeline was given in section B.5 of the PDD. The validation team confirmed that the events and date are correct.

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CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

The project owner discovered that the tariff in FSR was not realistic and attainable, which made the proposed project financially unattractive in 2004. So the project owner did not start construction immediately after the receipt of government approval. In June 2005, the shareholder of project owner participated in a CDM training organized by NDRC and became aware of the CDM mechanism. In Sep. 2005, the investment decision was made by the Board of Director, based on the expectation that CDM revenue could increase the financial feasibility of Youchou project. From 2005 to 2010, continuous actions had been adopted by the project owner of the proposed project. An internal CDM development team was established in July 2006; The emission reduction purchase engagement agreement was signed in Sep. 2007; ERPA was signed in Aug. 2008; LoA of host country was obtained in Jan. 2009; The PDD was published on UNFCCC website from 10/02/2010. The time intervals between these actions are less than one year. The project start date is 14 Dec. 2005 when overall contracting agreement was signed. According to the above analysis, the validation team confirms that the earliest commitment of starting the proposed project is 14 Dec. 2005, which is also as per CDM Glossary. CAR02 and CL03 were raised and closed. Please see Appendix A. Related documents were cross-checked by the validation team, the information of related events was also checked during the on-site visit and interview. The validation team is able to confirm that: The prior consideration of CDM for the project activity complies with Guidelines on the demonstration and assessment of prior consideration of the CDM. The CDM was seriously considered in the decision to implement the project activity. The continuing and real actions taken to secure CDM status is sufficient and properly demonstrated. 3.5.2 Investment analysis: Choice of approach The proposed project selects the Option III: benchmark analysis of Step 2 in Tool for the Demonstration and Analysis of Additionality for conducting the investment analysis. Through document review and on-site review, the validation team confirmed that proposed project can only receive financial benefit through supplying electricity generated by hydro power to the grid. Therefore the approach selected is appropriate. 3.5.3 Investment analysis: Benchmark selection The proposed project applies the benchmark IRR of 8%, which is sourced from Interim Rules on Economic Assessment of Electrical Engineering Retrofit Projects issued by State Power. According to which a project IRR of 8% for total investment is the benchmark for investing in hydropower projects over 50 MW hydropower plants. China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

This value has been checked by the validation team against the source. This document is applicable to retrofit projects in the power industry, as well as power projects for which no specific benchmark is available. Thus the benchmark of 8% can be applied to projects in wind power, fossil-fuel fired power and large hydro power (>50MW) sectors. According to on-site visit and interviews with the PP and local officials, this is the first project developed by the project owner company, so they apply this national benchmark, and the benchmark of project IRR 8% is widely applied by all large hydro power projects in local power sector. The installed capacity of the proposed project is 120 MW, so the benchmark IRR of 8% applied in the PDD is in accordance with the FSR, national regulation and also the Guidance on the Assessment of Investment Analysis. It is applicable and conservative. 3.5.4 Investment analysis: Input parameters In line with the EBâ&#x20AC;&#x2122;s guidance, CEC confirms that: a). All the input data of parameters except electric tariff, depreciation, VAT rate in the investment analysis to calculate project post tax IRR without CDM revenue is consistent with FSR. The sources of electric tariff are: The Notice on Chongqing Price Bureau's Implementation of the Grid Tariff Adjustment Made by NDRC and a statistical table from the Regulatory Authority of Centre China Grid, which showed the highest price in the region. These documents showed that the highest possible tariff of the proposed project activity at that time is 0.284 RMB/kWh (VAT incl.). The sources of depreciation and residue value are Notice on deduction instruction on pre Entrepreneur Income Tax and Clarification of executing date on entrepreneur adjusting fixed asset residual rate issued by State Tax Bureau. The source of VAT rate is the approval of Chongqing Price Bureau and invoice. b). The FSR designing institute is Middle-South Survey and Design Institute of National Electrical Company, a third party professional designing institute with qualifications of level A in engineering design, contracting, consulting, supervision, and construction cost consulting. The FSR was also reviewed by local government, then it was officially approved to be used as the guideline for the implementation of the proposed project. Applied values are listed in Table B.2 of PDD: Main parameters used in the calculation of the project IRR after tax. All references and sources including the FSR and its approval were cross-checked by the validation team to be valid and applicable. c). The FSR was approved in 30/06/2004; The investment decision was made in Sep. 2005; The starting date of the proposed project is 14/12/2005. So the time period between the events is sufficiently short for the validation team to confirm that it is unlikely in the context of the underlying project activity that the input values would China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

have material change. Thus it is reasonable to use the FSR as the basis of the investment analysis. d). The input parameters used in the financial analysis of the proposed project were also compared with similar CDM projects in Chongqing. There are altogether 15 hydropower projects located in Chongqing requesting registration at the beginning of validation, only two projects are between 60 to 180 MW (between the range of -50% and +50%), which is the similar range of the proposed project. The validation team compared major parameters with these projects, such as investment cost per KW, operating hours, Operating costs, etc. The detailed data is shown in Table 4. Based on the information verified, CEC confirms that all compared parameters are in reasonable ranges. CEC is able to confirm that the input parameters used in the financial analysis are reasonable and valid, they adequately represent the economic situation of the project. Table 6 Input parameters used in similar CDM projects in Chongqing UNFCCC Registrat ion No.

Capac ity (MW)

Total investment (RMB) 834,030,000

Total Operati Investment per ng MW (RMB/MW) Hours （h/y） 8,687,813 3,132

Annual operating cost per MWh (RMB/MWh) 41.61

2847

2960

585,650,000

7,808,667

2,804

41.39

Youchou

120

886,460,000

7,387,167

3,267

41.47

Total static investment The designed total static investment per MW of the proposed project is 7,387,167 RMB, lower than 7,808,667RMB and 8,687,813RMB of the other two projects. By cross-checking the Auditing Report by Chongqing Wulian Accounting Company, the validation team confirms that the actual cost until 10/02/2010 is over 1 billion, which is 13% higher than the FSR. So the application of 886,460,000 RMB is conservative. CL05 was raised and closed. Please see Appendix A. Based on the above information, it is CEC’s opinion that the total investment of the proposed project is valid and applicable. Electricity tariff Due to differences of resource distribution and investing scales in Chongqing region, Chongqing municipality did not establish a bus-bar tariff for all hydropower projects. Different projects have different tariffs. According to the official document in

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CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

Chongqing Municipality The Notice on Chongqing Price Bureau's Implementation of the Grid Tariff Adjustment Made by NDRC for normal hydropower projects and a statistical table made by the Regulatory Authority of Centre China Grid, the highest tariff for hydropower project in Chongqing at the time of investment decision is 0.284 Yuan/kWh(VAT incl.). The PDD applies the highest tariff (0.284 Yuan/kWh) issued to hydropower projects in Chongqing at the time of investment decision (September 2005). So the input value of tariff is valid and conservative. CL05 was raised and closed. Please see Appendix A. As no higher tariffs have been observed for similar projects in the same region and as with the application of the so-far highest tariff of 0.284 Yuan/kWh(VAT incl.), the project IRR does not cross the benchmark, hence ANNEX 32 of EB53 requiring E+ policy or E- policy analysis is not applicable in this case. Operating Hours (h) (used to calculate PLF) The operating hours of the proposed project is 3267 per year, estimated by the FSR design institute based on historical hydrological condition and device technical information. This value is higher than the value used by the other two projects, which are 3,132 and 2,804 respectively, so the value is within an appropriate range. The FSR report was compiled by Central South Survey & Design Institute of State Grid Company, which has authorized design qualification Class A, in which the hydrology data of two water hydrologic stations were analyzed for hydrology calculation. The approval document of FSR report by Chongqing Developmentďš Reform committee was also reviewed by the validation team, both documents clearly indicats that the estimated annual operating hours will be 3267. In accordance with the guidance for the reporting and validation of Plant Load Factor, the ex-ante plant load factor is determined according to the data defined by FSR design institute. So the Ex-ante Plant Load Factor=Operating hours/8760=3267/8760=0.3729. Based on the above information and CECâ&#x20AC;&#x2122;s technical expertise, the operating hours and the PLF of the proposed project are applicable. CL01 was raised and closed. Please see Appendix A. Operating Cost (RMB) According to the FSR, the annual O & M Cost of the proposed project is not exactly the same in all the operational years, for the 1st year: 2,180,000RMB, for the 2nd -10th year: 16,180,000RMB, for the 11th-30th year: 14,230,000RMB. For the 1st year, the power generation was expected to start from late in the second half of the year, so China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

the cost is much lower. For the 2nd -10th years, the annual O & M cost contains support fund for immigrants as per national and local regulations. The annual operating cost per MWh of the proposed project activity is 41.47 RMB/MWh, between the 41.61RMB/MWh and 41.39 RMB/MWh used by the other two projects. So the value is within a normal range. The justification of this amount is also provided in Table B.5 of the PDD, a breakdown of total costs recalculated according to official guidance is provided. Major breakdown items are: repair cost, salary package, material cost, maintenance costs, support fund for immigrant and others, the constitution is common compared with similar projects. By cross checking with the referenced official guidance document Interim Regulations of Hydropower Construction Project Financial Evaluation, CEC confirm that the recalculation process and result is correct. For each year, the applied costs in the investment analysis of the proposed project are slightly lower than the recalculation results. And the IRR will remain below the benchmark of 8% even the O&M cost is decreased by 50%. Based on the above analysis, it is CECâ&#x20AC;&#x2122;s opinion that the input value of operating cost is conservative and applicable. Loan (RMB) In FSR, 80% of total investment will be sourced from bank loans, which is 709,168,000 RMB. By cross-checking bank loan contracts and the Auditing Report by Chongqing Wulian Accounting Company, the validation team is able to confirm that the actual bank loan is raised to 850,000,000 RMB, which is 71.84% of actual total investment cost. The input value of interest of bank loan of 5.76% is from FSR, which is in accordance with the Guidance 6 of Guideline of the Assessment of Investment Analysis. CAR03 and CL05 was raised and closed. Please see Appendix A. The applied input value of loan amount is 709,168,000 RMB, which is from FSR. Considering the higher loan finance percentage leading to higher IRR, the loan calculation in investment analysis is conservative and suitable. Other parameters The 5% residual rate is applied in investment analysis according to national regulation State Tax Bureau inform to clarify executing date on entrepreneur adjusting fixed asset residual rate, Guoshuihan [2005]883. The 20 years of depreciation period is according to Clause 25 of State Tax bureau issuing notice on deduction instruction on pre Entrepreneur Income Tax, Guoshuifa China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

[2000]84. In which the minimum depreciation rate is as below: 1) House and architecture are 20 years; 2) Train, ship, machine and other equipments are 10 years; 3) Other vehicles and instruments, tools and furniture related to productions are 5 years. Therefore, the applied 20 years of depreciation period is appropriate and conservative. CL04 was raised and closed. Please see Appendix A. Through the above validation method, the validation team is able to confirm that the input parameters used in the financial analysis are reasonable and is in accordance with the Guidance on the Assessment of Investment Analysis, they adequately represent the economic situation when the investment decision was made. 3.5.5 Investment analysis: Calculation and conclusion The project FIRR of the proposed project without CDM revenue is 6.55%, lower than the project benchmark 8%, which indicates that the project in the absence of CDM benefits is not financially attractive. The project FIRR with CER revenue (8.88%) is higher than the benchmark. All parameters for investment analysis are included in The IRR spreadsheet, with complete and correct calculating formulas. Based on the above reliable data sources, the validation team confirmed that the input values from the approved FSR are valid and applicable at the time of making investment decision. Therefore, the validation team confirmed that the input values used in the PDD meet the guideline of EB 38 Para.54 (a), (b), (c). 3.5.6 Investment analysis: Sensitivity analysis Four parameters have been selected for sensitive analysis: total investment costs, grid tariff, annual power supply and annual O&M cost. Table B.6 and Figure B.2 in the PDD show that when the above four parameters fluctuate between the range of -10% and +10%, FIRR of the proposed project is still lower than the benchmark. CL06 was raised and closed. Please see Appendix A. The validation team concludes that both of the variation range and relevant assumptions stated in the PDD are robust and the investment of the proposed project is finically unattractive. 3.5.7 Common practice analysis The common practice analysis is addressed as per Step 4 of Tool for the Demonstration and Assessment of Additionality and latest rules issued by EB. The similar area is defined as Chongqing area according to the similar policy and investment environment. The similar scale is chosen to be between 50MW and China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

300MW according to the Classification of Hydraulic and Hydropower Engineering. The similar construction year is defined as from 10/02/2002, after the electric industry reform in host country. The selection is correct. Common practice analysis was made through comparing with projects in Year Book of China Water Resources 2006 and all of the hydropower stations on Youshui River. Only two similar projects were identified, one is invested by a foreign company which enjoys different invest environment with the proposed project, the other had applied CDM support. The evidences of these projects are cross-checked and confirmed by the validation team to confirm that these two projects are also not similar as the proposed project. CL07 was raised and closed. Please see Appendix A. The validation team has reviewed the approach presented in the PDD and can confirm that relevant parameters such as location, infrastructure, economical situation and development have been taken into account in order to define the region to be used for the common practice. The correctness of the selected region for the common practice comes from the nature of the Chongqing in terms of investment conditions and water resources development. So it can be confirmed that the proposed CDM project activity is not a common practice in the defined region. Based on above demonstration that in accordance with Tool for the Demonstration and Assessment of Additionality and supported by reliable data sources, it is the opinion of the validation team that the project is thus additional.

3.6

Emission Reductions

The calculations of project emissions, baseline emissions and leakage and emission reductions have been checked by the validation team. The parameters and equations presented in the PDD have been cross-checked with the information and requirements presented in applied methodology and respective tools. Baseline Emission The calculation of the baseline emissions followed the procedures described in the applied methodology ACM0002. The grid emission coefficient is calculated by “combined margin method” 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”. The operating margin as well as the build margin are determined ex-ante and remain fixed throughout the crediting period. The calculation of the OM is based on the simple OM method. Option C is adopted, the OM emission factor is calculated China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

based on the net electricity generation, the fuel type(s) and total fuel consumption of all the power plants in CCPG. The method to calculate BM is based on the method approved by CDM EB for the situation of China. First, calculate the newly added installed capacity and the various component technologies. Then calculate the weight of newly added installed capacity of each power generation technology. Finally the commercial and efficient level of each power generation technology is adopted to calculate BM emission factor. The baseline calculation was based on the published EFOM and EFBM (0.5802 and 1.1255 tCO2e/MWh, respectively) calculation process issued by the NDRC on 02/07/2009. The values were the latest available at the time of the commencement of validation and therefore considered as correct. The value of EFCM was determined using the weighted average of the EFOM and EFBM using the default values for the factors as described in the Tool to calculate the emission factor for an electricity system (Version 2.0) (ωOM=0.5 and ωBM=0.5 for hydropower projects). Therefore the combined baseline emission factor is determined ex-ante and will remain fixed during the first crediting period. EFgrid,CM,y=0.5802×0.5+1.1255×0.5=0.85285 tCO2/MWh BEy = EGy * EFgrid,CM,y= 390,000*0.85285=332,611 tCO2 Project Emission As per the applied methodology ACM0002 ver. 10, for hydropower project activities that result in new reservoirs, project proponents shall only account for CH4 and CO2 emissions from the reservoir. The power density of the proposed project is 120MW/7.7 km2, which equals to 15.6W/m2. The power density of the proposed project is greater than 10W/m2, so the project emission is zero. According to Article 77 of VVM ver. 1.2: “The validation report shall contain information regarding greenhouse gas emissions occurring within the proposed CDM project activity boundary as a result of the implementation of the proposed CDM project activity which are expected to contribute more than 1% of the overall expected average annual emissions reductions, which are not addressed by the applied methodology.” It is also assessed in the PDD about whether the on-site backup diesel generator might produce emissions more that 1% of the total emission reduction of the proposed project. The annual emission by the diesel generators is estimated to be about 0.003% of the annual emission reduction of the proposed project. Therefore it is negligible. The analysis of the PP was reviewed. According to the comparison with similar CDM projects and CEC’s sectoral expertise, the estimation is reasonable. However, in order to be more accurate about whether the emission by the diesel

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

generators will reach 1% of emission reduction of the proposed project, the operational hours of emergency back-up diesel generator will still be monitored. If the emission will be more than 1% of emission reduction of the proposed project, the amount will be considered as project emissions. Based on document review and on-site visit, the project emission is considered to be correct. Leakage As per the methodology, the project does not need to consider leakage. Emission Reduction The annual emission reductions equal to the annual baseline emissions. In summary, the calculation of the baseline emissions and the emission reductions can be considered as correct. According to the estimated annual emission reduction is 332,611 tCO2. The estimated total emission reductions is 2,328,277 tCO2e during the first crediting period represents a reasonable estimation using the assumptions given by the project. The information presented in the PDD has been validated by a first document review of all the data, further confirmation based on the on-site visit and a final step by cross-checking the information with similar relevant projects and/or technologies. The sources referenced in the PDD have been quoted correctly. The validation team can hereby confirm that the emission reductions are appropriately worked out complying with relevant methodology and tools, and parameters and data for the calculations are sourced from proper data sources. The expected operational lifetime of the project activity is 30 years which is evidenced in FSR and a renewable crediting period of seven years with the starting date of the crediting period of 01/01/2011 or the date of registration. The emission reductions are estimated to be 332,611 tCO2e per year, and 2,328,277 tCO2e over the seven-year renewable crediting period. The calculation and estimation of emission reduction is validated to be correct.

3.7

Monitoring Plan

The proposed project applies approved methodology ACM0002 (version 10). The project will supply electricity to the grid through an on-site step up station connected to the Youyang 220 kV transformer station, which is part of the Chongqing Municipality Power Grid. The on-site step up station contains two transformers, and the electricity will be supplied Youyang 220 kV transformer station through two power China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

transmission lines. The project is also connected to one back-up power line to provide emergency power in case the project is not operational (indicated in dark yellow line in figure B.4). According to the document review and on-site visit, the description of transformer, transmission and meters in the PDD is in accordance with the actual situation. According to the methodology, the following three parameters will be monitored: The electricity supplied to the grid by the proposed project EGfacility,y. The data will be electronically archived during the crediting period and two years afterwards. These data will be directly used for calculation of emission reductions. Measurement results of electricity supplied to the grid and that delivered from the grid to the project will be cross-checked against Electricity Transaction Notes (hereinafter ETNs). In case of discrepancies the conservative value will prevail. The metering instruments will be calibrated annually. The data is monitored continuously. The iinstalled capacity of the hydro power plant after implementation of the project activity CapPJ will be monitored. The installed capacity of the project activity will be determined according to installed equipmentsâ&#x20AC;&#x2122; nameplates (which is 60MW of each generator) and will be monitored annually. The nameplate will be checked by DOE during verification. The data is monitored yearly. Area of the reservoir measured in the surface of the water APJ. The project entity will commission a third party to conduct the measurement. A measurement report will be issued by this qualified party. The surface area will be calculated using the design schematics and area maps. The data is monitored yearly. According to the analysis in the section of project emission in B.6, one additional parameter is also monitored: Operational hours of emergency back-up diesel generator. The project entity will record the operational hours in the daily operation logs. It will be simultaneously measured and recorded during operation. The expected annual emissions associated with the operation of the emergency back-up diesel generator amount to about 0.003% of total emission reductions. If the monitoring record shows that the actual emissions by the operation of the diesel generator will be more than 1% of total emission reduction of the proposed project, emissions by the operation of the diesel generator will be considered as project emissions. In normal condition, the power exchange with the grid is measured by meter M1 and M2, the meters are in compliance with â&#x20AC;&#x153;Technical Administrative Code of Electric Energy Metering (DL/T 448-2000). M1 and M2 are installed at the output side of the transformers. The monitored data will be compared with the Electricity Transaction China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

Notes provided by the Grid Company. In abnormal condition, the power exchange with the grid is measured by meter M3, the meters are in compliance with Technical Administrative Code of Electric Energy Metering (DL/T 448-2000). M3 is installed at the output side of the backup transformer of the backup line. The monitored data will be compared with the Electricity Transaction Notes provided by the Grid Company. Section B.7.2 properly describes the operational management structure for monitoring of the proposed project activity. The major parameters monitored have been discussed with the PPâ&#x20AC;&#x2122;s especially regarding the location of the meters, the data management and the QA/QC procedures to be implemented in the context of the project, the validation team confirmed that the PP has ability to implement the monitoring plan. CAR04 and CAR05 were raised and closed. Please see Appendix A. The validation team confirms that the monitoring plan is in compliance with the requirements of the methodology

3.8 Sustainable Development The LoA of the Host Country clearly presents a statement that the project contributes to the sustainable development of the host party. See Section 3.1.

3.9

Stakeholders Consultation

Relevant local stakeholders received consultation questionnaires and they were invited to participate in the consultation meeting hold on 27/02/2008 prior to the publication of PDD on the UNFCCC website from 10/02/2010. From March 18th to April 20th 2008, the project entity carried out a separate stakeholder consultation process to confirm the impacts of the project on the relevant stakeholders. The description and summery of the comments received by local stakeholders from the meeting and questionnaires was described in Section E of the PDD. The meeting and survey was conducted by the PP and its CDM consultant, 422 questionnaires were distributed to local residents, 418 of them were collected. Including 82 questionnaires (79 collected) during the consultation meeting and 340 questionnaires (339 collected) distributed directly in the villages. The result showed that local residents support the construction of the project and expect that the operation of the proposed project will bring additional benefits such as economy growth and living condition improvement, and contribute to the development of local county. The information was cross-checked during the on-site visit and interview.

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CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

CL08 was raised was raised and closed. Please see Appendix A. The PDD version 2 was made publicly available on UNFCCCâ&#x20AC;&#x2122;s website. Parties, stakeholders and NGOs were invited to provide comments through the CDM website during a 30 days period from 10/02/2010 to 13/03/2010. No comment was received in this period. Based on the above, the validation team is able to confirm that the local stakeholder consultation has been adequately performed.

3.10

Environmental Impacts

The environmental impacts and conclusions of the project are described in the Section D of the PDD. The description is based on the officially approved EIA report. In EIA report, major environmental impacts of the proposed project activity were assessed according to the China laws and regulations. The EIA report sufficiently assessed the predicted impact to local eco-environment caused by the proposed project activity, the spatial scale covers the project boundary and the river basin. The assessed aspects includes: local economy, social environment, submerge, resettlement, soil and water conservation, public participation, pollution prevention and control, risk analysis, etc. The impact on biodiversity and natural ecosystems are included in the section of eco-environment impact assessment. After analysis, the major predicted negative impacts were identified in the EIA report: impact on social environment, environment impact caused by resettlement and soil and water loss. These predicted negative impacts together with relative planned monitoring and remedial measures are accurately summarized in the PDD. Finally, it is concluded in the EIA report that the project activity is not expected to cause significant negative environmental impacts. The EIA report is checked by the validation team to be valid. The validation team also cross-checked the approval of EIA report, in which the measures to prevent negative impacts were reviewed and approved. Through consulting with the officials from Environment Bureau of Youyang County, Chongqing, no environmental complaint on the proposed project was received. And to avoid negative impacts, the project owner will protect the environment according to measures approved by the government, and ensure all emissions reach national standards.

4. VALIDATION OPINION China Environmental United Center Co., Ltd (CEC) has performed a validation of the Chongqing Youyang County Youchou Hydropower Station Project in China based on UNFCCC criteria for the Clean Development Mechanism and host country criteria, as China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

well as criteria given to provide for consistent project operations, monitoring and reporting. The review of the project design documentation, the subsequent on-site interviews and the further cross-check of references have provided CEC with sufficient evidences to determine the fulfillment of stated criteria in the protocol. In our opinion, the project meets all relevant UNFCCC requirements for the CDM. Hence, CEC will recommend the project for registration by the CDM EB. An analysis as provided by the applied methodology demonstrates that the proposed project activity is not a likely baseline scenario. Emission reductions attributable to the project are hence additional to any that would occur in the absence of the project activity. Given that the project is implemented as designed, the project is likely to achieve the estimated amount of emission reductions as specified within the final PDD version. The total emission reductions from the project are estimated to be on the average of 332,611 tCO2e per year over the selected 7-year renewable crediting period. The emission reduction forecast has been checked and it is deemed likely that the stated amount is achieved given that the underlying assumptions do not change. CECâ&#x20AC;&#x2122;s opinion is that Chongqing Youyang County Youchou Hydropower Station Project in China, as described in the project design document ver. 3.0, meets all relevant UNFCCC requirements for the CDM and all relevant host country criteria, and correctly applied the baseline and monitoring methodology ACM0002 ver.10, CEC thus requests the registration of the project as a CDM project activity.

Beijing, 31/08/2010

ZHANG Ruizhi

TANG Dingding

Validation Team Leader

Chairman of Board

China Environmental United Certification Center Co., Ltd (CEC)

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

5. REFERENCES 1

PDD/LoA 1.1 PDD Version 2.0, 31/12/2009 1.2 PDD Version 3.0, 20/07/2010 1.3 Letter of Approval, China DNA, 09/01/2009 1.4 Letter of Approval, DNA of the Netherlands (Annex I Party), 25/08/2010 1.5 Announcement of newly approved projects, China DNA, 11/11/2008 http://www.sepacec.com/cdm/xgxx/zcxx/200905/W02009053135263168728 4.pdf

FSR, EIA and other reports and governmental approvals 2.1

Feasibility Study Report, State Electric Power Zhongnan Engineering Corporation, 06/2004,

2.2

Approval of FSR, Chongqing Developmentďš Reform committee, 30/06/2004

2.3

EIA, Sino-coal International Engineering Group Chongqing Design & Research Institute, 09/2005

2.4

Approval of EIA, Chongqing Environmental Protection Bureau, 07/11/2005

2.5

Water resource assessment report, Changjiang Water Resources Commission Water Conservancy Bureau & Chongqing Institute of Water Resources and Electric Power Investigation and Design, Jan 2004

2.6

Approval of water resource assessment report, Ministry of Hydrology Changjiang Hydrology Committee in September, 2004

2.7

Report of Youchou Hydropower Station Construction Land Expropriation and Resettlement Plan, State Electric Power Zhongnan Engineering Corporation, 06/2005

2.8

Adjust Scheme of Youchou Hydropower Reservoir Area Land Appropriation and Resettlement Compensation Items and Sandard, YOUYANGFUBANFA [2009] No.77, 27/04/2009

2.9

Notice on issuing Temporary measures on land acquisition and immigrant resettlement administration of Tujia and Miao autonomy county of Youyang county

2.10 Notice on issuing <adjusted plan on land acquisition and immigrants resettlement compensation standard of Xiushan shidi hydropower plant youyang reservoir area and Jinjiaba and youchou hydropower plant reservior area> 2.11 Approval of Land Occupation, Youyang Land and Resources Administration , Fangdizheng [2009] No. 01121, 2009 2.12 Water and soil conservation report, Chongqing Lanyu Landscape Greening Engineering Co., Ltd. 2.13 Soil and Water Conservation Monitoring Report 2006-2008, Changjiang Water Resources Commission Soil and Water Conservation Monitoring Center of Changjiang River Basin 2.14 Approval of water and soil conservation report, Chongqing Water Conservancy Bureau, YUSHUIXUKE[2005] No.59, 12/09/2005

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

2.15 River basin planning, State Electric Power Zhongnan Engineering Corporation, 1987 2.16 Approval of Youshui River Basin Hydro Energy Development Planning, Ministry of Hydrology Hydropower Planning and Design Administration, Shuiguizi [90], 1987 2.17 Revised Youshui River Basin Hydro Energy Development Planning, State Electric Power Zhongnan Engineering Corporation, September, 2000 3

Baseline and Monitoring Methodology 3.1 Notification on Determining Baseline Emission Factor of Chinaâ&#x20AC;&#x2122;s Grid, China DNA, 06/07/2009 3.2 Notice on Strictly Forbidding Construction of Fossil Fuel Fired Power Plants with the Capacity of 135MW or below, General Office of the State Council, 15/04/2002, http://www.gov.cn/gongbao/content/2002/content_61480.htm 3.3 Suggestion on Grid Connection (No.[2009]269)issued by Power Grid Company of Yunnan Province on 02/07/2009 3.4 China Water Resource Yearbook, 2006 3.5 China Electric Power Yearbook, 2003-2008

Additionality 4.1

IRR Calculation Spreadsheet

4.2

Name list of training participants, NDRC, 2005

4.3

Board meeting resolution on CDM consideration

4.4

Notice on CDM team establishment

4.5

CDM engagement agreement

4.6

Emission reduction purchase agreement/ERPA

4.7

Stakeholder consultation meeting minutes

4.8

Stakeholder consultation meeting sign-in sheet

4.9

Stakeholder consultation questionnaires

4.10

Project turnkey contract, Chongqing Youshui Hydropower Development Co., Ltd. and Hydro china Zhongnan Engineering Corporation

4.11

Turbine/generator purchase contract, Chongqing Youshui Hydropower Development Co., Ltd. and Zhongnan Hydro Engineering Corporation and Zhejiang Fuchunjiang Hydropower Equipment Co. Ltd.

4.12

Turbine & Generator Technical Agreement, Chongqing Youshui Hydropower Development Co., Ltd. and Zhongnan Hydro Engineering Corporation and Zhejiang Fuchunjiang Hydropower Equipment Co. Ltd.

4.13

Equity transfer agreement

4.14

Approval of changing of the name of project owner, Chongqing DNRC, 11/05/2009

4.15

Business license, Chongqing Administrative Bureau for Industry and Commerce, 2009

4.16

Construction Permission

4.17

Bank loan contract of Agricultural Bank

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CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

4.18

Bank loan contract of Agricultural&Commercial Bank

4.19

Bank loan contract of Commercial Bank

4.20

Financial audit report

4.21

National compensation standard for land acquisition and immigrants

4.22

Notice on Adjust Land Appropriation Compensation Standard and Improve Land Appropriation Compensation, Youyang municipal government. YOUYANGFUFA[2005] No.52.

4.23

Resettlement compensation agreement

4.24

Resettlement compensation government approval

4.25

Resettlement agreement

4.26

Compensation and resettlement affected details

4.27

Grid connection agreement

4.28

Power purchase and sales contract

4.29

Construction settlement sheet

4.30

Letter of commercial operation of Youchou hydropower plant No.2 unit

4.31

Letter of commercial operation of Youchou hydropower plant No.1 unit

4.32

Flood Prevention & Control Plan in 2009, Chongqing Youshui Hydropower Development Co., Ltd. 03/2009

4.33

Dam Safety Monitoring Procedures, Chongqing Youshui Hydropower Development Co., Ltd. 01/2010

4.34

Chongqing Medium and Large Hydro Hydropower Construction and Resettlement Interim Provisions. Chongqing municipal government. YUFUFA[2001] No.28.

4.35

Understand Cards on Household Objects and Compensated of Youyang County Youchou Town Immigrant

4.36

Compensation Agreements, Chongqing Youshui Hydropower Development Co., Ltd (project owner) and villagers of Youchou, Daxi, Pianbai. Keda and Wufu township

4.37

Chongqing Statistical Yearbook, 2006-2009

4.38

Information of Yujiankou project

5． National regulations: 5.1 Construction project economic evaluation method and parameters, National Development and Reform Committee, 2006 5.2 Interim Rules on Economic Assessment of Electrical Engineering Retrofit Projects 5.3 National Code: Technical Administrative Code of Electricity Energy Metering”DL/T448-2000” 5.4 Interim Regulations of Hydropower Construction Project Financial Evaluation, Ministry of Electricity Power and Ministry of Water Resources, 06/1994 5.5 Hydropower Engineering Classification and Flood Control Standard, SL252-2000 China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

5.6 State Tax Bureau inform to clarify executing date on entrepreneur adjusting fixed asset residual rate, Guoshuihan[2005] 883 5.7 State Tax bureau issuing notice on deduction instruction on pre Entrepreneur Income Tax Guoshuifa[2000] 84 5.8 The Notice on Chongqing Price Bureau's Implementation of the Grid Tariff Adjustment Issued by NDRC, Chongqing Price Bureau, 2005 6． Tools 6.1 Validation and Verification Manual Version 01.2 6.2 ACM0002 version 10 6.3 Tool to calculate the emission factor for an electricity system Version 2.0 6.4 Tool for demonstration and assessment of additionality Version 5.2 6.5 Guidance on the demonstration and assessment of prior consideration of the CDM Version 03 6.6 Guidelines for the Reporting and Validation of Plant Load Factors, 17/07/2009

6. PERSONS INTERVIEWED List persons interviewed during the validation or persons that contributed in providing information that cross-checked by the validation team. Name

Organization / Function or comment

QIN Lin

Hydropower Development Co., Ltd. / GM

FAN Hu

Hydropower Development Co., Ltd. / Project Manager

WENG Qin

Youyang People’s Government/Vice Director-General

LI Shifu

Land and Resources Bureau of Youyang County / Director

Development and Reform Bureau of Youyang County / Director-General Environmental Protection Bureau of Youyang County / YAO Chuanjiang Director-General LU Bangquan

LIU Jun

Youyang Electricity supply company / Director

YANG Xiujie

Forestry Bureau of Youyang County / Director

XU Hongchuan

Water Conservancy Bureau of Youyang County/Director

XIE Zhenwen

Immigration Affairs Office of Daxi Town/Director

TIAN Rrenduo

Youchou town/ villager/Miao nationality

LI Shuyuan

Youchou town/ villager/ Miao nationality

TIAN Hongzhou

Youchou town/ villager/ Miao nationality

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

TIAN Ying

Wufu country/ villager/ Tujia nationality

LIN Zhixiang

Wufu country/ villager/ Tujia nationality

ZHANG Zhengguo

Wufu country/ villager/ Tujia nationality

LIN Yiju

Wufu country/ villager/ Tujia nationality

ZHANG Rrencai

Wufu country/ villager/ Tujia nationality

HAN Mingqing

Wufu country/ villager/ Tujia nationality

TIAN Hongquan

Keda country/ villager/ Tujia nationality

CHEN Yuanfen

Keda country/ villager/ Tujia nationality

PENG Jianguo

Keda country/ villager/ Tujia nationality

TIAN Yibei

Keda country/ villager/ Tujia nationality

LIU Honglin

Keda country/ villager/ Tujia nationality

SONG Jiawan

Keda country/ villager/ Tujia nationality

SONG Chuanquan

Keda country/ villager/ Tujia nationality

LIU Maohong

Daxi country/ villager/ Tujia nationality

WU Shengfu

Daxi country/ villager/ Tujia nationality

LI Zehua

Daxi country/ villager/ Miao nationality

ZHANG Jinxiang Daxi country/ villager/ Tujia nationality LI Maoxiang

Daxi country/ villager/ Tujia nationality

WANG Xinghai

Daxi country/ villager/ Miao nationality

HUANG Fujiang

Daxi country/ villager/ Tujia nationality

LI Yulin

Daxi country/ villager/ Miao nationality

LI Maohua

Daxi country/ villager/ Miao nationality

TIAN Qinglin

Daxi country/ villager/ Tujia nationality

ZHANG Chang

Pianbai country/ villager/ Tujia nationality

WANG Xuejun

Pianbai country/ villager/ Miao nationality

LEI Xichun

Pianbai country/ villager/ Tujia nationality

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

APPENDIX A: Table 1 Requirement Checklist CHECKLIST QUESTION

Ref.

MoV

comments

Draft Concl

Final Concl

Yes. The project title is “Chongqing Youyang County Youchou Hydropower Station Project”, it is identifying the unique CDM activity clearly. Yes. The version 1.0 was compiled to apply the China LoA, The GSP was started with version 2.0 on UNFCCC CDM website: http://cdm.unfccc.int/Projects/Validation/DB/2FCMQYFYDRJJ7VN7TWV X2OFA7RBKCJ/view.html Yes. The PDD correctly applies CDM PDD template version 03, in effect as of: 28 July 2006.

A. General Description of Project Activity A.1. Title of the Project Activity A.1.1 Does the project title clearly identify the unique CDM activity? A.1.2 Are there any indication concerning the history of the versions?

A.1.3 Does the PDD apply the latest UNFCCC template?

A.2. Description of the Project Activity

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

A.2.1 Is the description delivering a transparent overview of the project activities?

A.2.2 Is the information provided by proofs consistent with the information provided by the PDD? A.2.3 Does the project activity involve alternation of existing installation? If so, have the differences between pre-project and post-project activity been clearly described in the PDD? A.3. Project Participation

DR I

China Environmental United Certification Center Co., Ltd.

The project is the construction of a grid-connected large-scale hydropower project located at the main stream of Youshui River near Youchou Township of Youyang County, Chongqing Municipality, China. The total installed capacity of the Project is 120 MW, consists two sets of 60 MW water turbines and generators. The expected full load operating hours are 3,267 hours annually, the power load factor is 0.3729, the expected net annual power supply to the grid is 390,000 MWh. The power generated by the proposed project will be routed via an on-site step-up station to the 220 kV Youyang transformer station which is an integral part of the Chongqing Municipality Power Grid, and finally supply to the Central China Grid. The estimated annual GHG emission reduction is 332,611 tCO2e. CL01 Please justify the applied Plant Load Factor as per EB 48 Annex 11. Yes. The information provided by these proofs is consistent with the information provided by the PDD.

CL01

The proposed project does not involve alteration of existing installations.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

A.3.1 Is the form required for the indication of project participants correctly applied? A.3.2 Does it clearly specifies all the Parties and project participants?

Yes. The form is correctly applied.

A.3.3 Has the project provided written approvals of all parties involved?

Yes. The project participants are: Chongqing Youshui Hydropower Development Co., Ltd. (China) and AES Carbon Exchange Ltd. (The Netherlands). The host party China meets the requirement to participate in the CDM. China is a non Annex I party to the Kyoto Protocol. China has established a DNA (National Development and Reform Committee, NDRC) as per the participating requirements for CDM under the Kyoto Protocol. The Letter of Approval /1/ of the host Party was issued by the DNA of China on 09/01/2009, confirming the project is a bilateral CDM project, with Chongqing Youshui Hydropower Development Co., Ltd. and AES Carbon Exchange Ltd. authorized as the project participant. The LoA of the DNA of China was provided by the project participant. CEC confirmed its authenticity from the Announcement of newly approved projects issued by DNA of China on 11/11/2008/37/ and relative documents of local government. The information of Project Participants in the PDD is consistent with the LoA. CAR01 LoA from Annex I party is not provided.

CAR01

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

A.3.4 Does the written approval from the host country confirm that the project contributes to the sustainable development in the country? A.3.5 Will the project create other environmental or social benefits than GHG emission reductions?

Yes. The LoA of China confirmed the voluntary participation of the proposed project, in compliance with permission requirements and assisting China in achieving sustainable development.

Yes. Besides GHG emission reduction, the proposed project activity also helps meeting electricity demand and downgrading the rely on fossil fuel, contributes to the abatement of other pollutants brought by thermal power plants, contributes to local economic development, etc. More project specific information about its contribution to sustainable development has been provided, including contribution to local economic development, improving of the infrastructure of local villages and providing employment opportunities in operation period.

CL02

A.4. Technical Description of the Project activity A.4.1 Does the information DR The project location’s coordinates are east longitude of 109º08’44” and I provided on the location of north latitude of 28º57’56” in the PDD. The power house is located under the dam. the project activity allow for a clear identification of the CL02 site(s)? Please provide evidence certifying the location of the proposed project. A.4.2 To which category(ies) does DR The project falls under scope 1 Energy Industries the project activity belonging (renewable/non-renewable sources). to? Is the category correctly The category is correctly identified in Section A 4.2 of the PDD. identified and indicated? A.4.3 Technology to be employed by the project activity

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

A.4.3.1. Does the technical design of the project activity reflect current good practices?

DR I

A.4.3.2. Does the implementation of the project activity require any technology transfer from Annex I countries to the host country? A.4.3.3. Is the technology implemented by the project activity environmentally safe? A.4.4 Is estimation of the emission reductions in first crediting period correct? A.4.5 Is any public funding from Annex I countries available to the proposed project?

DR I

Yes. As the project is a hydro power project, the technology implemented by the project activity is environmentally safe.

Yes. The calculation is correct and consistent with the information in other parts of the PDD. DR No. According to the document review of FSR, financial auditing report and PDD and on-site auditing, there is no public funding for the project activity. B. Application of a Baseline and Monitoring Methodology

DR I

China Environmental United Certification Center Co., Ltd.

Yes. After document review and on-site visit, the project uses well established hydropower generation technology for electricity generation and transmission and hence reflects the current good practices to use renewable resources to generate electricity. No. The equipments of the power plant are made in China. Therefore no technology transfer is required.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.1. Does the project correctly apply the latest approved methodology and its tools?

B.2. Does the methodology describe all project emission source for the project activity that contributes all 1% of the emission reductions? Sources that the methodology considers not to take into account are not relevant

China Environmental United Certification Center Co., Ltd.

Yes. OK The project applies approved baseline and monitoring methodology ACM0002, version 10, which is Valid from 11 Jun 09 to 25 Feb 10, which is valid at the time of PDD for global stakeholder publication on 12/02/2010. This methodology is applicable to grid-connected renewable power generation project activities that install a new power plant at a site where no renewable power plant was operated prior to the implementation of the project activity. So the application is justified. This methodology draws upon the following tools: Tool for the demonstration and assessment of additionality (version 05.2) Tool to calculate the emission factor for an electricity system (version 02). No. OK It is assessed in the PDD about whether the on-site backup diesel generator might produce emissions more that 1% of the total emission reduction of the proposed project. The annual emission by the diesel generators is estimated to be about 0.003% of the annual emission reduction of the proposed project. Therefore it is negligible. The analysis of the PP was reviewed. According to the comparison with similar CDM projects and CECâ&#x20AC;&#x2122;s sectoral expertise, the estimation is reasonable. However, in order to be more accurate about whether the emission by the diesel generators will reach 1% of emission reduction of the proposed project, the operational hours of emergency back-up diesel generator will still be monitored. If the emission will be more than 1% of emission reduction of the proposed project, the amount will be considered as project emissions. No other project emission or leakage sources contribute more than 1% and not mentioned by the methodology have been found at this stage.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.3. Are the project’s spatial boundaries (geographical) clearly defined?

B.4. What is the baseline scenario?

B.5. Demonstration and Assessment of Additionality B.5.1 Does the additionality DR justification follow the requirements of the applied methodology and/or methodological tools?

Yes. The boundary of the proposed project is selected to be the geographical and physical boundaries of the proposed project and covers all the power plants connected with the Central China Power Grid. The Central China Power Grid covers provinces and areas of Henan, Hubei, Hunan, Jiangxi, Sichuan and Chongqing. The power generated by the proposed project is transmitted via on-site step-up stations to the 220 kV Youyang transformer station which is an integral part of the Chongqing Power Grid and finally to the CCPG. Through document review and observations of the physical site, the project follows the approval of grid connection design report and the design of FSR. So the boundary and baseline selection is valid and correct. The baseline scenario of the proposed project activity is the continued operation of the existing power plants and the addition of new generation sources in the CCPG to meet electricity demand.

Yes. According to ACM0002 ver.10, the additionality of the project activity shall be demonstrated and assessed using the latest version of the “Tool for demonstration and assessment of addtionality” agreed by the CDM EB. In PDD the Tool for the Demonstration and Assessment of Additionality (ver.5.2) is applied.

B.5.2 Prior consideration of CDM

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CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.5.2.1. Is the project starting date in accordance with the CDM glossary?

DR I

B.5.2.2. Is the prior consideration of CDM correctly demonstrated in the PDD? B.5.2.3. Is decision to proceed with the project demonstrated in the PDD? B.5.2.4. Was the decision to proceed with the project taken by a person which has the authority to do so? B.5.3 Step 1: Identification of alternatives B.5.3.1. Have all realistic alternatives been identified to the project?

DR I

China Environmental United Certification Center Co., Ltd.

CAR02 The project starting date identified in the PDD version 2.0 is April 2006, when the equipment purchase contract was signed. However the overall contracting agreement was signed in Dec. 2005, earlier than the equipment purchase contract. Please correct the project start date according to CDM glossary. CL03 The demonstration of prior consideration of CDM is not sufficient in the PDD. Yes. The decision was made on the board meeting on 08/09/2005. The evidenced was provided and checked by the validation team. Yes. The decision to proceed with the project was taken by the board, This was confirmed during document review and on-site visit.

CAR02

CL03

Yes.

A complete list of four credible alternatives has been identified to the project activity in the PDD. Scenario 1: Fossil fuel-fired power generation Scenario 2: Power generation from wind power or other renewable energy Scenario 3: The proposed hydropower Station, without the support of CDM Scenario 4: The same service of power supply is provided from grid (i.e. continuation of the present situation)

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.5.3.2. Do all identified alternatives comply with applicable regulation?

Scenario 1 is not in compliance with the applicable regulation; all other alternatives are in compliance.

Yes. OK Since this specific project will only have revenue from sales of electricity and receives no other income. So benchmark analysis method is appropriate. OK Yes. The Excel Spreadsheets of the project finance indicators and IRR calculations are viewable and unprotected. The value and calculation is correct.

Scenario 2 is not realistic because of lack of resource. Scenario 3 is not realistic because of lack of financial attractive. So Scenario 4 is the most applicable alternative.

B.5.4 Step 2: Investment analysis B.5.4.1. Is the financial analysis method appropriately chosen for the project?

B.5.4.2. Is a clear, viewable and unprotected Excel spreadsheet available for the investment calculation? B.5.4.3. Is the fair value of the project activityâ&#x20AC;&#x2122;s assets at the end of the investment analysis period (as a cash inflow) included?

B.5.4.4. Is the benchmark intended for post-tax comparison?

DR I

China Environmental United Certification Center Co., Ltd.

The project lifetime is 33 years, which reflects the technical lifetime of project activity as per the FSR. The depreciation period is 20 years, the depreciation rate is 5% annually. CL04 Please explain the reason of applying the value of depreciation and residual value. Yes. The applied benchmark 8% is post-tax. The IRR result of the proposed project is also applied post-tax calculation. This is as per the Guidance on the Assessment of Investment Analysis version 03.

CL04

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.5.4.5. Were the input values used in the investment analysis valid and applicable at the time of the investment decision?

B.5.4.6. Are depreciation and other non-cash related items added back to net profits for the purpose to calculate the financial indicator? B.5.4.7. In case of Project IRR, are the costs of financing expenditures (loan repayments and interests) included in the calculation of Project IRR?

China Environmental United Certification Center Co., Ltd.

The input parameters used in the investment analysis are from the FSR. The FSR designing institute is Middle-South Survey and Design Institute of National Electrical Company, a third party professional designing institute with A level qualifications in engineering design, contracting, consulting, supervision, and construction cost consulting. The FSR was reviewed by local government, then the project owner received the official approval for using the FSR as the guideline for the implementation of the proposed project. All input parameters except electric tariff and CER price used in the investment analysis is derived from FSR. All input values are cross-checked with FSR and other evidence documents. CL05 Please further demonstrate the rationality of the input value of investment analysis, e.g. total investment, tariff and loan. The income of the proposed only includes power generation and CDM income. 100% of investment is depreciated during the project lifetime, so no residue value is added back to net profit. There are non-cash related items related to the IRR calculation of the proposed project.

CL05

The costs of financing expenditures (loan repayments and interests) are considered as an output when calculating income tax. This is in compliance with national regulation. But it is not included from the cash flow out of the project IRRs CAR03 The proposed applies post-tax benchmark, however the actual interest payable is not taken into account in the calculation of income tax, which is not consistent with the latest version of Guideline of the assessment of investment analysis.

CAR03

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.5.4.8. In case of Equity IRR: is investment costs financed by equity considered as net cash outflow and is the part financed by debt excluded in net cash outflow? B.5.4.9. Is the applied benchmark appropriate for the type of IRR calculated (e.g. local commercial lending rates or weighted average costs of capital for project IRR; required/expected returns on equity for equity IRR)? B.5.4.10. In case of internal benchmark: Is it ensured that the project cannot be developed by other developers than the PP?

N/A

Yes. According to Interim provisions concerning hydropower construction project financial assessment, a project-IRR of 8% for total investment is the benchmark for investing in hydropower projects over 50 MW hydropower plants.

The project IRRs of the proposed project without CDM revenue is 6.59%, which is lower than the benchmark 8%. So the project is not financially attractive, even developed by any other developers other than the PP.

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.5.4.11. Is sensitivity analysis appropriately done by the project participants? Please assess and determine under what conditions variations in the result would accrue and likelihood of these conditions. B.5.5 Step 3: Barrier analysis B.5.5.1. Are there any barriers given which have a clear and definable impact on the profitability of the project? B.5.5.2. How is it justified and evidenced that the barriers given in the PDD are real? B.5.5.3. How is it justified that one or a set of real barriers prevent(s) the implementation of the project activity? B.5.6 Step 4: Common practice analysis

Four parameters have been selected for sensitive analysis: total investment costs, grid tariff, annual power supply and annual O&M cost. Table B.6 and Figure B.2 in the PDD show that when the above four parameters fluctuate between the range of -10% and +10%, FIRR of the proposed project is still lower than the benchmark. CL06 The demonstration of sensitivity analysis is not sufficient.

CL06

N/A

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.5.6.1. Is the defined region for the common practice analysis appropriate for the technology/industry type? B.5.6.2. To what extent similar projects have been undertaken in the relevant region? B.5.6.3. In case similar projects are identified, are there any key differences between the proposed project and existing or onging projects and what kind of differences are observed? B.6. Emission Reductions

Yes. Chongqing Municipality is defined as the region for common practice analysis, which is appropriate for similar investment conditions and natural conditions etc. Yes. Project of Chongqing Municipality with a capacity between 50 MW and 300MW which started construction activities since year 2002.

Only one similar project is identified, which is invested by a foreign company. CL07 The selection and demonstration of similar projects is not sufficient. Please further demonstrate the common practice of the proposed project.

CL07

B.6.1.1. Are the equations applied correctly according to the applied approved methodology?

Yes. According to ACM0002 ver. 10, ER=BE-PE-L. According to ACM0002 ver. 10, project emission and leakage of the proposed project is considered to be zero. The emission of the diesel generator is estimated to be less than 1% of total emission reduction of the proposed project. However the actual emissions from the operation of the diesel generator will be monitored and calculated, if it becomes more than 1% of emission reduction of the proposed project, the amount will be calculated as project emissions.

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.6.1.2. In case the methodology DR N/A allows for different methodology choices, are the equations applied properly justified and have they been used reflecting the other methodological choices(i.e. baseline identification)? B.6.2 Data and parameters are available at validation B.6.2.1. Is the list of parameters DR The list of parameters is complete in the revised PDD with regard to the requirements of the applied methodology. presented in Chapter B6.2 considered to be complete and correct with regard to the requirements of the applied methodology? B.6.2.2. Is the choice of ex-ante or DR Yes. ex-post vintage of OM and Ex-ante is clearly specified in the approved methodology. BM factors clearly specified in the PDD? B.6.3 Ex-ante calculation of emission reduction B.6.3.1. Are the GHG calculations DR Yes. documented in a complete Detailed descriptions are given and conservative IPCC values are and transparent manner? adopted.

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.6.3.2. Is the form/table required for the indication of projected emission reductions correctly applied? B.6.3.3. Is the projection in line with the expected time schedule for the projectâ&#x20AC;&#x2122;s implementation and the indicated crediting period?

Yes. The table is complete. It includes emissions due to the project activity, baseline emissions, leakage emissions and the overall emission reductions.

Yes. The ex-ante estimate of emission reductions due to the project is calculated for a first crediting period of 7 years, starting with the expected start of crediting date on 01/01/2011 or the date of registration, whichever is later, the project will still be in operation during that time. And the expected lifetime of the proposed project is 30 years, longer than 3 renewable crediting periods. B.7. Application of the monitoring methodology and description of the monitoring plan

DR I

B.7.1 Data and parameters monitored

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.7.1.1. Are the parameters to be monitored in accordance with the requirement of the applied methodology?

China Environmental United Certification Center Co., Ltd.

Yes. According to the methodology, the following three parameters will be monitored: The electricity supplied to the grid by the proposed project EGfacility,y. The data will be electronically archived during the crediting period and two years afterwards. Measurement results of electricity supplied to the grid and that delivered from the grid to the project will be cross-checked against Electricity Transaction Notes (hereinafter ETNs). In case of discrepancies the conservative value will prevail. The metering instruments will be calibrated annually. The data is monitored continuously. Installed capacity of the hydro power plant after implementation of the project activity CapPJ will be monitored. Installed capacity of the project activity will be determined according to installed equipmentsâ&#x20AC;&#x2122; nameplates and will be monitored annually. The nameplate will be checked by DOE during verification. The data is monitored yearly. Area of the reservoir measured in the surface of the water APJ. A third party will conduct the measurement and issue a measurement report. The data is monitored yearly. According to the analysis in the section of project emission in B.6, one additional parameter is also monitored: Operational hours of emergency back-up diesel generator. The project entity will record the operational hours in the daily operation logs simultaneously when operation. The actual emissions from the operation of the diesel generator will be calculated and considered as project emissions if it is more than 1% of emission reduction of the proposed project. CAR04 The procedure of electricity monitoring and emission reduction calculation of when the electrical meter operates abnormally is not included in the monitoring plan. Please modify.

CAR04

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.7.1.2. Are the means of monitoring of all parameters contained in the monitoring plan in accordance with the requirements of the applied methodology? (such as name of the data/parameter, data unit, description, source of data, measurement equipment, monitoring frequency, QA/QC procedures) B.7.2 Description of the monitoring plan B.7.2.1. Is the monitoring plan described and in compliance with methodology? B.7.2.2. Are the responsibilities and institutional arrangements for data collection and archiving clearly provided?

The information all parameters contained in the monitoring plan, including label, data unit, description, source of data are stated clearly and transparently. See the comments in B.7.1.1.

CAR05 According to the on-site review, the description of transformer, transmission and meters in the PDD is not in accordance with the actual situation. Please correct. Yes. The project owner is responsible for recording the data collection and archiving the data. See the comments in B.7.1.1.

CAR05

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

B.7.2.3. Will all monitored data DR Yes. required for verification All monitored data records are kept until 2 years after the end of the and issuance be kept for crediting period. two years after the end of See the comments in B.7.1.1. the crediting period or the last issuance of CERs, for this project activity, whichever occurs later? B.8. Date of completion of the application of the baseline and monitoring methodology study B.8.1 Is there any indication of a DR Yes. The date is 20/07/2010 according to the revised PDD version 3.0. date when the baseline was determined? B.8.2 Is this consistent with the DR Yes. time line of the PDD history? It is consistent. B.8.3 Is the information provided DR Yes. It is correct. on the person(s)/entity (ies) responsible for the application of the baseline and monitoring methodology consistent with the actual situation? C. Duration of the Project Activity/Crediting Period

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

C.1. Are the project’s starting date and operational lifetime clearly defined and evidenced?

C.2. Is the assumed crediting period clearly defined and reasonable (renewable crediting period of Max 7 years with potential for 2 renewals or fixed crediting period of Max.10 years)? D. Environmental Impacts

DR I

Yes. The starting date of the proposed project activity is defined as 14/12/2005, which is the day on which the turnkey contract was signed. The definition of the starting date of the project was in line with the “Glossary of CDM terms” because it is the earliest date on which the project owner committed to expenditures related to the project activity. The expected operational lifetime of the project activity is 30 years, which is defined in the approved FSR and considered appropriate according to CEC’s technical expertise. Yes The renewable crediting period of 7 years with potential for 2 renewable periods is reasonable considering the life time of the project is 33 years.

D.1. Documentation on the analysis of the environmental impacts, including Trans- boundary impacts D.1.1 Has an analysis of the DR The environmental impacts of the project activity have been clearly OK environmental impacts of the described in Section D.1 of the PDD. The contracts of the compensation have been reviewed by the auditor. The ecological water flux has been project activity been sufficiently described? revised according to the EIAs. D.1.2 Are there any Host Party DR Yes. OK requirements for an The EIA is a must in P.R. China for new hydropower projects. The EIAs of the proposed project were approved by local government Chongqing Environmental Impact Environmental Protection Bureau on 07/11/2005.These documents have Assessment (EIA), and if yes, is an EIA approved? been reviewed by the validation team.

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

D.1.3 Will the project create any DR As described in the PDD and related documents, the project activity will OK OK I not have major negative environmental impact. adverse environmental effects? D.1.4 Are transboundary DR As described in the PDD and related documents, the project activity will OK OK I not have major transboundary environmental impacts. environmental impacts considered in the analysis? D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions of the environmental impact assessment in accordance with the procedures as required by the host Party. D.2.1 Are the identified DR Yes. OK OK environmental impacts To avoid negative impact on social environment, environment impact addressed in the PDD? caused by resettlement, the project owner will protect the environment according to measures approved by the government, and ensure all emissions reach national standards. The environmental impacts and conclusions of the project have been described in the Section D of the PDD. D.2.2 Does the project comply with DR Yes. OK OK environmental legislation in The EIAs were finished and approved by the authorized organization. the host country? E. Stakeholder Comments E.1. Brief description how comments by local stakeholders have been invited and compiled E.1.1 Have relevant local DR Yes. I The stakeholders were consulted through meeting and questionnaires stakeholders been invited to prior to the publication of the PDD. consultation prior to the publication of the PDD?

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

E.1.2 Have appropriate media been used to invite comments by local stakeholders? E.1.3 If a stakeholder consultation process is required by regulation/laws in the host country, has the stakeholder consultation process been carried out in accordance with such regulations/laws? E.2. Is a summary of the stakeholder comments received provided?

DR I

According to the evidence and on-site auditing. The local residents were informed by the bulletin on the newspaper and via the website.

DR I

The stakeholder consultation process is required in the EIA in China. It has been carried out in accordance with the regulation

DR I

CL08

E.3. Has due account been taken of any stakeholder comments received?

DR I

Confirmed by review the original meeting archives and questionnaires documents. CL08 The time period of the CDM stakeholder consulting meeting and questionnaires and the number of questionnaire in the PDD is not fully consistent with related evidence. Please clarify. The overall comments with regards to the project were positive and the relevant stakeholders are satisfied with the compensations.

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

Table2 Resolution of Corrective Action and Clarification Requests No.

CL/CAR/FAR Requests

Ref. to

Summary of PPâ&#x20AC;&#x2122;s response

Table 1 CAR01

LoA of Annex I Party has

A.3.3

Validation teamâ&#x20AC;&#x2122;s conclusion

LoA of Annex I party is provided.

not been provided.

The validation team checked the provided LoA issued on 25/08/2010. It confirms that it authorizes AES Carbon Exchange, Ltd. as a project proponent in the proposed project. CAR01 is closed.

CAR02

The project start date in

B.5.2.1

the PDD is April 2006,

The turnkey contract is the earliest activity in Dec. 14 2005. CDM

The validation team

starting date is revised to Dec.14 2005

checked related

when the equipment

evidences, and

purchase contract was

confirmed that the

signed. However the

revised starting date

overall contracting

is correct and in

agreement was signed in

accordance with

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

Dec. 2005, earlier than the

related regulations.

equipment purchase

CAR02 is closed.

contract. Please correct the project start date according to CDM glossary. CAR03

As applied 8% benchmark is a post tax benchmark, interests

The interest rate of

applies post-tax

payable estimated at the time of decision making are taken into

5.76% is justified

benchmark, however the

account to calculate the income tax in GSP PDD, which is in

and correctly

actual interest payable is

accordance with ‘Guidelines on the assessment of Investment

applied. The

not taken into account in

Analysis’ (version 03).

inaccurate data of

the calculation of income

As per requirement of Guidance 6 that “input values used in all

5.8% in PDD

tax, which is not consistent

investment analysis should be valid and applicable at the time of the

version 2.0 was

with the latest version of

investment decision taken by the project participant”, interest rate

corrected to 5.76%

Guideline of the

(5.76% 1) and loan amount (80% of total investment) are taken from in PDD version 3.0.

Assessment of Investment

FSR in basis of which the investment decision was made.

Analysis.

As per requirement of Guidance 11” In cases where a post-tax

The proposed project

B.5.4.6

CAR03 is closed.

benchmark is applied the DOE shall ensure that actual interest payable is taken into account in the calculation of income tax. In such situations interest should be calculated according to the prevailing commercial interest rates in the region”

5.76% was rounded to 5.8% in GSP PDD. Here we apply the original value from FSR.

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

The interest payable is deducted during income tax calculation. The actual total investment is raised from 886,460,000 Yuan to 1,183,162,100 Yuan. Loan attained by the project owner is increased from the estimate value (709,168,000 Yuan) to 850,000,000 Yuan accordingly. Furthermore, with the actual loan (850,000,000), basic interest rate in 2009 (5.94%) and total investment (1,183,162,100Yuan) applied in investment analysis, the IRR is 4.24% which remains below benchmark. CAR04

Please find revised â&#x20AC;&#x153;Procedure in case of damaged metering

The procedure of electricity monitoring and

B.7.1.1

In the revised

equipment/Emergenciesâ&#x20AC;? in monitoring plan in PDD (version 3.0). monitoring plan, the

emission reduction

procedures of

calculation of when the

requested two

electrical meter operates

situations are

abnormally is not included

described: when

in the monitoring plan.

metering equipment

Please modify.

is damaged and in emergencies. The description is acceptable. CAR04 is closed.

CAR05

According to the on-site

B.7.2.1

review, the description of

China Environmental United Certification Center Co., Ltd.

The monitoring plan has been revised in PDD (version 3.0)

The two on-site transformer

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

transformer, transmission

stations, two main

and meters in the PDD is

power lines, one

not in accordance with the

backup power line

actual situation. Please

and three meters

correct.

are correctly described. The monitoring plan is in accordance with the real situation and methodology. CAR05 is closed.

CL01

The Plant Load Factor has been justified in B.6.2.

The PLF is derived

Plant Load Factor by the

In accordance with the guidance for the reporting and validation of

from operating

proposed project as per

Plant Load Factor, the ex-ante plant load factor is determined

hours of FSR. The

EB 48 Annex 11.

according to the data defined by Central South Survey & Design

FSR clearly

Institute of State Grid Company which has authorized design

demonstrates the

qualification Class A.

decision method of

Ex-ante Plant Load Factor=Operating

average annual

hours/8760=3267/8760=0.3729

operating hours of

Please justify the applied

A.2.1

3267. The calculation is based on historical data. And the FSR is

China Environmental United Certification Center Co., Ltd.

CEC-6028C-B/3 Chongqing Youyang County Youchou Hydropower Station Project

approved by Chongqing Development and Reform Committee. The PLF is in accordance with the guidance for the reporting and validation of Plant Load Factor. CL01 is closed. CL02

In GSP PDD, the estimated coordinates are applied as no exact

The modification is

certifying the location of

data are available. The coordinates’ readings justified by GPS

correct. CL02 is

the proposed project.

instruments are revised in PDD (version 3.0) as below:

closed.

Please provide evidence

A.4.1

East longitude of 109º08’51”; North latitude of 28º58’01”. Please find the attached GPS record. CL03

The demonstration of prior consideration of CDM is

B.5.2.2

not sufficient in the PDD.

China Environmental United Certification Center Co., Ltd.

The prior consideration of CDM has been supplemented in PDD