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

CDM Executive Board

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

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

CDM Executive Board

Revision history of this document

Version Number 01 02

Date 21 January 2003 8 July 2005 Initial adoption

Description and reason of revision

03

22 December 2006

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

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

CDM Executive Board

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

1.50 MW Wind Power Project by JC Retail India Pvt. Ltd. Pune Maharashtra, India Version 02 29/11/2010 A.2. Description of the small-scale project activity:

Jai Hind Collections Retail India Private limited, (J.C Retail India Pvt. Ltd ) has envisaged the installation of 1.5 MW wind turbine to generate electricity. The wind turbine of 1.5 MW capacity is being implemented in the state of Rajasthan at village Ratan Ka Bas of Jodhpur district. The project is a Greenfield activity at the project site which has been recently developed by the technology provider. Prior to the project activity electricity would have been generated from already installed grid connected power plants, which is also taken as the baseline for the project activity as explained in section B.4. The installed capacity of India has grown tremendously over years and has reached to 147.965 GW in 2009. However, it is dominated by coal-based thermal generation which amounts to 77.649 GW out of total thermal generation capacity of 93.725 GW1. The share of renewable resources is still very low amounting to approximately 9% of the total installed capacity. The Indian power system has been divided into two independent grids viz. NEWNE and Southern grid. NEWNE grid is an integrated grid comprising regional grids of northern, eastern, western & north-eastern regions. The electricity generated from the project activity (WTG) will feed into NEWNE grid. The project activity installs model S82 of Suzlon make WTG which is designed for generating the optimal power output at sites with a modest wind speed regime like Rajasthan. Wind turbine transforms the kinetic energy of wind into mechanical energy which is further converted into electrical energy. There are no associated greenhouse gas emissions in the electricity generation process since it utilizes a clean energy source. Thus it reduces equivalent amount of GHG emissions that would have been generated in the absence of the project activity from the grid connected power plants which is dominated by fossil fuel based thermal power plants. With todays technology, it has become possible to generate electricity from wind on a commercial scale. Although wind based electricity generation is not an economical option, sustainable development mechanisms like CDM help to alleviate the financial risk associated with the project and motivate project developers to invest in wind energy. The project activity is expected to deliver approximately 2.65 GWh annually to the NEWNE Grid. In the absence of the project activity the same amount of electricity would have been produced from the fossil fuels leading to more emissions of GHG which are avoided by this project activity. Project Contribution towards Sustainable Development Ministry of Environment and Forests, Govt. of India has stipulated the social well being, economic well being, environmental well being and technological well being as the four indicators for sustainable development for Clean Development Mechanism (CDM) projects. The proposed project activity contributes to these aspects in the following manner. Social well being
1

http://www.cea.nic.in/planning/c%20and%20e/user_guide_ver5.pdf

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

CDM Executive Board

Rural and infrastructural development in the areas around the project. The project activity has assisted in higher interaction amongst the local villagers thereby increasing the flow of information in the villages thereby increasing the levels of awareness and knowledge in the community. Contribution towards achievement of the objectives of Government of India's policy on wind power generation.

Environmental well being Reduction in the consumption of fossil fuels in the grid for generating additional electricity equivalent to that generated by the wind turbine. Reduction of GHG emissions associated with fossil-fuel based electricity generation in the grid. Economic well being Assisting in economic development of remote villages in Rajasthan by making investment in that area. As a result of huge amount of investment, lot of ancillary and utility units may open up, which will provide employment opportunities to local people, thus bringing about economic well being. Technological well being The successful implementation of project activity encourages other entrepreneurs to adopt this technology and invest in wind energy

A.3.

Project participants:

Name of Party involved Private and/or Public entity Kindly indicate if the party involved (*)((host) indicates a host (ies) Project Participants (*) wishes to be considered as a project party) as applicable participant (Yes / No) Government of India (Host Country) J C Retail India Pvt. Ltd. (Private Entity) No

A.4.

Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity: A.4.1.1. India A.4.1.2. State : Rajasthan A.4.1.3. City/Town/Community etc: Region/State/Province etc.: Host Party(ies):

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

CDM Executive Board

Village: Ratan Ka Bas District: Jodhpur A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity :

WTG Location No. RKB 32

Village Name Ratan Ka Bas State: Rajasthan

Latitude N 26 29' 54"

0

Longitude E 720 30' 46.2"

District: Jodhpur

Village: Ratan Ka Bas, District: Jodhpur

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

CDM Executive Board

A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: Type: I - Renewable energy projects Project category: I.D. Electricity generation for a system The project is a renewable energy project with maximum output capacity of 1.5 MW and is well below the specified limits of 15 MW of maximum output capacity as per Appendix B of the simplified modalities and procedures for small-scale project activities. Hence it qualifies for the mentioned type and category. Technology to be employed by the project activity: Project activity involves installation of Suzlon make WTG S82-1500 kW whose technical details are furnished in the table below. The 1.5 MW S82 Model is based on robust design with pitch regulated blade operation, a 3-stage gearbox with 1650 kW rating and flexible coupling to the asynchronous induction generator. The Flexi-slip System provides efficient control of the load and power control. The S82-1500 kW is designed to withstand extreme conditions and operate effectively with low maintenance cost. The project lifetime is 20 years as specified by the technology supplier. A plant load factor of 21% has been assumed as mentioned in tariff order of Rajasthan2, in order to account for variation in PLF a senstivity analysis for both 10% increment and decrement has been included in the calculations of section B.5. Wind, being a renewable source of energy can produce renewable electricity and replaces the equivalent amount of electrical power at regional grid which otherwise would have been generated from fossil fuel based power stations, as conventional in India. Therefore, the project reduces emissions (as calculated in the subsequent sections A.4.3 & B.6.3) corresponding to the amount of electricity that could have been emitted because of the fossil fuel use in absence of this project activity. Technical details of 1500 KW Suzlon make WTG: MODEL OPERATING DATA Rated power Cut-in wind speed Rated wind speed Cut-off wind speed Survival wind speed ROTOR Type Diameter Rotational speed at rated power Rotor blade material Swept area Power regulation GEARBOX Type Ratio
2

S82-1500kW 1500 kW 4 m/s 14 m/s 20 m/s 52.5 m/s 3 Blades, Upwind / Horizontal axis 82 m 15.6 to 18.4 rpm Epoxy bonded fiber glass 5281 m2 Active pitch regulated with Suzlon Flexi Slip System 1 planetary stage / 2 helical stages 1 : 95.09

http://www.rerc.gov.in/Tenders_for_Works.pdf

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

CDM Executive Board

Nominal load Type of cooling GENERATOR Type Speed at rated power Rated power Rated voltage Frequency Insulation Enclosure Cooling system TOWER Type Tower height Hub height (including foundation) BRAKING SYSTEM Aerodynamic braking Mechanical braking YAW SYSTEM Type Bearing Protection PITCH SYSTEM Type Operating range Resolution CONTROLLER

1650 kW Forced oil cooling lubrication system Single speed induction generator with slip rings, variable rotor resistance via Suzlon Flexi slip system 1511 rpm 1500 kW 690 V AC (phase to phase) 50 Hz Class H IP 54 / IP 23 (slip ring unit) Air cooled Tubular tower (corrosion proof painting on inner and outer surface) with welded steel plates 76 m Approximately 78.5 m 3 Independent systems with blade pitching Hydraulic fail safe disk brake system Active electrical yaw motor Polyamide Slide bearing with gear ring & automatic greasing system Cable twist sensor, proximity sensor 3 independent blade pitch control with battery backup for each blade -5 to + 90 0.1 to 10 Deg Suzlon Control System with following salient features: Park slave Power output control / limitation Reactive Power control Grid measurement Low voltage ride through (LVRT) Weather measurement Time synchronization Statistics

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

CDM Executive Board

A.4.3. Estimated amount of emission reductions over the chosen crediting period: Estimation of annual emission reductions in tonnes of CO2e 2010-2011 2,444 2011-2012 2,444 2012-2013 2,444 2013-2014 2,444 2014-2015 2,444 2015-2016 2,444 2016-2017 2,444 2017-2018 2,444 2018-2019 2,444 2019-2020 2,444 Total estimated reductions (tonnes 24,440 of CO2) Years Total number of crediting years Annual average of the estimated reductions over the crediting period (tCO2) 10 2,444

A.4.4. Public funding of the small-scale project activity: No Public funding is flowing into the project activity. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: As per 'Guidelines on assessment of de-bundling for SSC project activities' Annex 13 to EB 54, para 2, 'A proposed small-scale project activity shall be deemed to be a debundled component of a large project activity if there is a registered small-scale CDM project activity or an application to register another small-scale CDM project activity : (a) With the same project participants; (b) In the same project category and technology/measure; (c) Registered within the previous 2 years; and (d) Whose project boundary is within 1 km of the project boundary of the proposed small- scale activity at the closest point. The project Participant have not registered any small scale CDM activity or applied to r egister another small scale CDM project activity within 1 km of the project boundary, in the same project category and technology/measure in previous 2 years.

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

CDM Executive Board

SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: Title: Grid Connected Renewable Energy Generation3, Version 16, EB 54, sectoral scope 01 Reference: Appendix B of the simplified modalities & procedures for small scale CDM project activities The methodology also refers to latest approved versions of Tool to calculate the emission factor for an electricity system, version 024 B.2 Justification of the choice of the project category:

Choice of project category, 'D- Electricity generation for a system' is as per the Appendix B of the simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories. Justification for the choice has been provided in table as per requirements set in para 1-8 in the methodology AMS ID. Version-16. Applicability criteria Project case The Project is wind based renewable energy, zero emission power project connected to the NEWNE grid. The Project will displace equivalent amount of fossil fuel based electricity generation that would have otherwise been provided by the operation and expansion of the fossil fuel based power plants in NEWNE regional electricity grid

This category comprises renewable energy generation units, such as photovoltaic, hydro, tidal/wave, wind, geothermal and renewable biomass that supply electricity to a national or a regional grid.

This methodology is applicable to project activities that (a) install a new power plant at a site where there was no renewable energy power plant operating prior to the implementation of the project activity (Greenfield plant); (b)involve a capacity addition; (c)involve a retrofit of (an) existing plant(s); or (d)involve a replacement of (an) existing plant(s).

The project is installation of a new wind based electricity generation plant at a site where no renewable energy power plant was in operation (Greenfield plant) by the PP.

3 4

http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html http://cdm.unfccc.int/methodologies/SSCmethodologies/approved.html

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

CDM Executive Board

Hydro power plants with reservoirs that satisfy at least one of the following conditions are eligible to apply this methodology: The project activity is implemented in an existing reservoir with no change in the volume of reservoir. The project activity is implemented in an existing reservoir, where the volume of reservoir is increased and the power density of the project activity, as per definitions given in the Project Emissions section, is greater than 4 W/m2; The project activity results in new reservoirs and the power density of the power plant, as per definitions given in the Project Emissions section, is greater than 4 W/m2. In the case of biomass power plants, no other biomass types than renewable biomass are to be used in the project plant. If the unit added has both renewable and nonrenewable components (e.g., a wind/diesel unit), the eligibility limit of 15 MW for a small-scale CDM project activity applies only to the renewable component. If the unit added co-fires fossil fuel, the capacity of the entire unit shall not exceed the limit of 15 MW.

The Project activity is power generation from wind energy source hence criteria is not applicable to the project activity.

The project activity does not use any type of biomass. Hence this criteria is not applicable.

The project activity is a 1.5 MW wind electricity generation. Unit does not co-fires fossil fuels since wind is the only source of power generation.

Combined heat and power (co-generation) Project activity is not a combined heat and systems are not eligible under this category. power system. In the case of project activities that involve the addition of renewable energy generation units at an existing renewable power generation facility, the added capacity of the units added by the project should be lower than 15 MW and should be physically distinct from the existing units. Project involves installation of wind mill of capacity of 1.5 MW at project site where no unit was already existing. It does not involve capacity addition.

In the case of retrofit or replacement, to qualify Not applicable, the entire wind project is a Green as a small-scale project, the total output of the field project activity and this project is not the modified or retrofitted unit shall not exceed the enhancement or upgradation project. limit of 15 MW

B.3.

Description of the project boundary:

Project boundary has been ascertained using para 9 of AMS I.D. 'The physical, geographical site of the renewable generation source delineates the project boundary.'. Hence all the WTG equipments, and the metering arrangements and connected sub-station consists of the project boundary as marked in the figure below.

10

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

CDM Executive Board

The GHG emission sources considered for the project boundary and their explanations are as follows: Source (BASELINE) Electricity Generation of NEWNE grid Gas CO2 CH4 N2O CO2 CH4 N2O Included Yes No No No No No Justification / explanation Major emission sources Excluded for simplification. This is conservative Excluded for simplification. This is conservative As renewable wind power project, hence not applicable The proposed project is wind power project, hence not applicable The proposed project is wind power project hence not applicable

(PROJECT ACTIVITY) Wind Electricity Generation

B.4.

Description of baseline and its development:

The proposed project activity is a Greenfield activity as it involves installation of a new Wind turbine generator at the project site by the Project Participant. Therefore, as per guidelines for baseline in Para 10 of methodology, AMS I.D, If the project activity is the installation of a new grid-connected renewable power plant/unit, the baseline scenario is the electricity delivered to the grid by the project activity that otherwise would have been generated by the operation of grid-connected power plants and by the addition of new generation source. Thus, Baseline for the project activity is power generated from renewable energy source multiplied by the grid emission factor of the respective grid calculated in transparent and conservative manner. Further, as per Para 11 of AMS I.D, baseline emission is the product of electrical energy baseline EGBL,y expressed in MWh of electricity produced by the renewable generating unit multiplied by the grid emission factor. BEy = EG BL,y X EFCO2,grid,.y Where,

11

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

CDM Executive Board

BEy = Baseline Emissions in year y; t CO2 EGBL, y = Quantity of net electricity supplied to the grid from project activity in year y (MWh) EF CO2, grid, y = CO2 emission factor of the grid in year y; t CO2/MWh The methodology provides following approaches for emission factor calculations. (a) Combined margin (CM), consisting of the combination of operating margin (OM) and build margin (BM) according to the procedures prescribed in the Tool to calculate the emission factor for an electricity system, version 2.0. OR b) The weighted average emissions (in t CO2/MWh) of the current generation mix. The data of the year in which project generation occurs must be used. Option (a) has been considered to calculate the grid emission factor as per the Tool to calculate the emission factor for an electricity system since data is available from an official source. CO2 Baseline Database for the Indian Power Sector, Version 5, Nov 20095, published by Central Electricity Authority (CEA), Government of India has been used for the calculation of emission reduction. As per the "Tool to calculate the emission factor for an electricity system" version 2, following steps have been followed. STEP 1. Identify the relevant electricity power systems. STEP 2. Choose whether to include off-grid power plants in the project electricity system (optional). STEP 3. Select a method to determine the operating margin (OM) method. STEP 4. Calculate the operating margin emission factor according to the selected method. STEP 5. Identify the cohort group of power units to be included in the build margin (BM). STEP 6. Calculate the build margin emission factor. STEP 7. Calculate the combined margin (CM) emissions factor. STEP 1. Identify the relevant electricity power systems. The tool defines the electric power system as the spatial extent of the power plants that are physically connected through transmission and distribution lines to the project activity and that can be dispatched without significant transmission constraints. Keeping this into consideration, the Central Electricity Authority (CEA), Government of India has divided the Indian Power Sector into five regional grids viz. Northern, Eastern, Western, North-eastern and Southern.

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

12

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

CDM Executive Board

However since 2007-08 as the four regional grids except the southern grid has been synchronized, they are now being considered as one and named as NEWNE grid. Since the project supplies electricity to the NEWNE grid, emissions generated due to the electricity generated by the NEWNE grid as per CM calculations will serve as the baseline for this project. STEP 2. Choose whether to include off-grid power plants in the project electricity system (optional). Project participants have the option of choosing between the following two options 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. The Project Participant has chosen only grid power plants in the calculation. STEP 3. Select a method to determine the operating margin (OM) method. The calculation of the operating margin emission factor (EFOM,y) is based on one of the following methods: (a) Simple OM, or (b) Simple adjusted OM, or (c) Dispatch data analysis OM, or (d) Average OM. The data required to calculate simple adjusted OM or Dispatch data analysis is not possible due to lack of availability of this activity data to the project developers. The choice of other two options for calculating the operating margin emission factor depend on the generation of electricity from low cost/must run sources. In the context of the methodology low cost/must run sources typically include hydro, geothermal, wind, low cost biomass, nuclear and solar generation. Share of Must-Run (Hydro/Nuclear) (% of Net Generation) 2004-2005 NEWNE South India NA* 21.6% 18.0% 2005-06 18.0% 27.0% 20.1% 2006-07 18.5% 28.3% 20.9% 2007-08 19.0% 27.1% 21.0% 2008-09 17.3% 22.8% 18.6%

Data for NEWNE grid in the CEA database has been included from 2005-06 onwards The above data clearly shows that the percentage of total grid generation by low cost/must run plants (on the basis of average of three most recent years) for the NEWNE and southern grids are less than 50 % of the total generation. Thus the average emission rate method cannot be applied, as low cost/must run resources constitute less than 50% of total grid generation.

13

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

CDM Executive Board

The Simple operating margin has been calculated as per the weighted average emissions (in tCO2/MWh) of all generating sources serving the system, excluding hydro, geo-thermal, wind, low-cost biomass, nuclear and solar generation; In the project activity, (ex-ante) the full generation-weighted average for the most recent 3 years for which data are available at the time of PDD submission has been considered. The data is published annually by the Central Electricity Authority. The CEA database is based on the methodology ACM0002 version 10. It is confirmed that ex-ante vintage is considered in the project activity and cannot be changed during the crediting period. STEP 4. Calculate the operating margin emission factor according to the selected method. The operating margin emission factor has been calculated using a 3 year data vintage: Net Generation in Operating Margin (GWh) Year 2006-2007 2007-2008 2008-2009 Simple Operating Margin (tCO2/MWh) (incl. Imports) Year 2006-2007 2007-2008 2008-2009 tCO2/MWh (NEWNE) 1.0085 0.9999 1.0066 MWh (NEWNE) 379,471 401,642 421,803

Simple Operating Margin = Generation weighted average of the simple operating Margin = 1.0049 (tCO2/MWh) STEP 5. Identify the cohort group of power units to be included in the build margin (BM). The value of the data has been taken from the data published by CEA as referred in earlier step. The CEA Baseline Database has been calculated as per the methodology ACM0002 and the details of the key assumptions considered to calculate the figure can be found in the User Guide of the same. Project participants can choose between one of the following two options: Option 1 Calculate the Build Margin emission factor EFBM,y ex-ante based on the most recent information available on plants already built for sample group m at the time of PDD submission. The sample group m consists of either the five power plants that have been built most recently or the power plant capacity additions in the electricity system that comprise 20% of the system generation (in MWh) and that have been built most recently. Project participants should use from these two options that sample group that comprises the larger annual generation.

14

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

CDM Executive Board

Option 2 For the first crediting period, the Build Margin emission factor EFBM,y must be updated annually ex-post for the year in which actual project generation and associated emissions reductions occur. For subsequent crediting periods, EFBM,y should be calculated ex-ante, as described in option 1 above. The sample group m consists of either the five power plants that have been built most recently or the power plant capacity additions in the electricity system that comprise 20% of the system generation (in MWh) and that have been built most recently. Project participants should use from these two options that sample group that comprises the larger annual generation. STEP 6. Calculate the build margin emission factor (EFBM, y ) Option 1 as described above is chosen in the project activity. BM is calculated ex-ante based on the most recent information available at the time of submission of PDD. The EFBM, y is estimated as 0.6752 tCO2/MWh (With sample group constituting most recent capacity additions to the grid comprising 20% of the system generation) STEP 7. Calculate the combined margin (CM) emissions factor Combined Margin The combined margin is the weighted average of the simple operating Margin and the build margin. In particular, for intermittent and non-dispatchable generation types such as wind and solar photovoltaic, the Tool to calculate the emission factor for an electricity system, version 2.0, allows to weigh the operating margin and Build margin at 75% and 25%, respectively. The baseline emission factor is calculated using the combined margin approach as described in the following steps: Calculation of Baseline Emission Factor EFy The baseline emission factor EFy is calculated as the weighted average of the Operating Margin emission factor (EF OM, y) and the Build Margin emission factor (EF BM, y): EF y = w OM * EFOM, y + w BM * EF BM, y Where the weights w OM and w BM , are 75% and 25% respectively for wind energy projects, and EFOM, y and EF BM, y are calculated as described in Steps 1 and 2 above and are expressed in tCO2/MWh. Baseline Emission factor(NEWNE) = 0.75*1.0049 + 0.25*0.6752 = 0.9225 tCO2/MWh B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: Power generation in India is dominated by fossil fuel-based thermal power plants producing conventional electricity supplied at regional grids. It is also evident from the share of power generation in the capacity mix of India stated in section A.2 of the PDD.

15

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

CDM Executive Board

National Electricity Policy6 also encourages coal-based power plants due to their economic viability and it further emphasizes utilization of lignite reserves of country for power generation to meet future electricity demand of the country. The project activity is production of electricity from an environmentally benign wind technology. However, wind electricity generation is not a financially attractive option and has a very low share in the present generation capacity. Therefore, in absence of project activity it would make economic sense to continue with the baseline scenario. The implementation of the project activity was a voluntary step undertaken by the project developers with no direct or indirect mandate by law. The project activity is in line with the policies of the Government of India Ministry of New and Renewable Energy (MNRE). Wind Power Project is one of the thrust areas of power generation from renewable in the Ministry of New and Renewable Energy. It has been recognized that wind power projects can play a critical role in improving the over all energy scenario of the country and in particular for remote and inaccessible areas like deserts, sea shores etc. In accordance with paragraph 28 of the Simplified Modalities and procedures for Small Scale CDM project activities, a Simplified Baseline and Monitoring methodology listed in Appendix B may be used for a Small Scale CDM project activity if project participants are able to demonstrate that the project activity would otherwise not be implemented due to the existence of one or more barriers listed in Attachment A of Appendix. B. These barriers are: A. Investment Barrier B. Technology Barrier C. Barriers due to Prevailing Practice D. Other Barriers. The project faced an investment barrier to its implementation, hence according to the Attachment A, investment barrier has been chosen to demonstrate additionality. Investment Barrier Application of Benchmark analysis With reference to the Guidance 16 of Annex 58 of EB 51, " The benchmark approach is suited to circumstances where the baseline does not require investment or is outside the direct control of the project developer, i.e. cases where the choice of the developer is to invest or not to invest." In reference to both the guidance above, as the baseline scenario for the project activity is to supply the electricity to NEWNE grid, for which no investment is required by the Project Participant, hence benchmark approach is best suited approach for PP. Internal Rate of Return (IRR) is the most common financial indicator used by investors to meet the financial viability of the project. The Internal Rate of Return (IRR) of the project is calculated and compared with the benchmark to prove that the proposed CDM project activity is unlikely to be financially attractive without CER revenues. The assumptions used in calculating project IRR have been listed in the table below:

http://www.powermin.nic.in/indian_electricity_scenario/national_electricity_policy.htm

16

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

CDM Executive Board

Assumptions supporting Financial Projections Parameters Values Project cost 10 (million) PLF 21.00% Source Techno-commercial offer Report submitted to bank RERC Tariff order http://www.rerc.gov.in/Tenders_for_Works.p 16/07/2009 df

Transmission loss 4.00% Tariff (Rs/kWh) 4.28 Tariff for second 3.87 Calculated year O & M costs (million INR/Year) First Year 0.00 Techno-commercial Second Year 1.70 offer Yearly Escalation 7.5% from 5th year Term Loan Details Debt equity ratio 70:30 Loan Repayment RERC Tariff order 10 Period (in Years) 16/07/2009 Moratorium 1 period (months) Interest on Term 11.63% Avg. RBI PLR for Loan June,09 Other Details Insurance Cost Techno-commercial 0.15 +Land lease offer Average Sett. Price of CER price 13 CERs from Jan,09 to Euro/Ton Jan,10 Exchange rate Exchange rate at the 69 EUR=INR time of decision Accelerated 80% MNRE depreciation Tax holiday / 10 MNRE years

http://www.rerc.gov.in/Tenders_for_Works.p df

Monthly RBI Bulletin

http://www.ecx.eu/CER-Futures http://www.x-rates.com/cgi-bin/hlookup.cgi http://mnre.gov.in/prog-wind.htm http://mnre.gov.in/prog-wind.htm

The electricity tariff from second year onwards is calculated as per the tariff indexing mechanism specified in the Rajasthan Electricity Regulatory Commission in its Regulation 76, dated 23 January 20107. As per the regulations the tariff for wind energy projects will be automatically revised during each subsequent year of control period (2009-2014) according to the following indexing formula Tn = T1 * (1 + dn) + [0.08 * [LTPLRi LTPLR0] ] dn = [a * (SIn-1/SI0 - 1) + b * (CIn-1/CI0 - 1)]/ (a+b) Where,
7

http://www.rerc.gov.in/regulations/Reg%2076.pdf

17

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

CDM Executive Board

T1 = Base levellised Tariff determined for the WEG projects commissioned in first year of the Control Period (i.e. FY 2009-10)(in Rs/kWh). Tn = Levelised Tariff to be applicable for WEG projects commissioned during the financial year (n) of the Control Period (in Rs/kWh). = 4.28 Rs./kWh for the projects commissioned in the first year of control period i.e. 2009-10 dn = Capital cost escalation factor applicable for year (n) of the Control Period a = Constant to be determined by Commission from time to time, (in default it is 0.70) for weightage to Steel Index SIn-1 = Average WPI Steel index prevalent for calendar year (n-1) of the Control Period This is taken as the average Wholesale Price Index for Jan 2009 to May 2009 i.e. 290.04 SI0 =Average WPI Steel Index prevalent for Calendar year (0) i.e. Jan-2008 to Dec-2008 = 338.4 b = Constant to be determined by Commission, (in default it is 0.30) for weightage to Cement Index CIn-1 = Average WPI Cement Index prevalent for fiscal year (n-1) of the Control Period This is taken as the average Wholesale Price Index for Jan 2009 to May 2009 i.e. 225.28 CI0 = Average WPI Cement Index prevalent for Calendar year (0) i.e. Jan-2008 to Dec-2008. = 222.7 LTPLR(n) = Long term prime lending rate (in %) of State Bank of India as prevalent as on 31st January of each calender year prior to nth year of the Control Period. LTPLR(0) = Long term prime lending rate (in %) of State Bank of India as prevalent as on 31st Jannuary 2009. This is assumed to be constant. Thus change in Long term prime lending rate of State Bank of India is assumed to be zero as this would have a negligible impact on the tariff Thus Tn as determined is 3.87 Rs./kWh.

18

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

CDM Executive Board

Application of Benchmark analysis According to "Guidance on assessment of investment analysis" (EB 41, Annex 45), benchmark can be derived from commercial lending rates or weighted average costs of capital. PP has used weighted average costs of capital as the benchmark for the project activity since the project was expected to be financed by debt & equity in a ratio of 70:30. The benchmark is derived from weighted average of return on debt and return on equity as per following formula: WACC = (Re We) + [Rd Wd (1- Tc)] Where: Re = Return on equity Rd = Return on Debt We = Percentage of financing that is Equity Wd = Percentage of financing that is Debt T = Tax rate Return on debt: Prime lending rate of Reserve Bank of India has been taken as the debt benchmark as per the 'Guidelines on assessment of investment analysis' EB 51, Annex 58. Return on equity is calculated as per the Capital Asset Pricing Model according to the given formula: Re = Rf + Beta x (Rm Rf1) Where: Re = Return on Equity Rf = Rate of risk free investment Beta = Indicator measuring volatility of a security relative to the asset class (Market) Rm = Expected market return Rf1 = Average return of a risk free investment Beta (e) = Covariance(R, Rm) / Variance(Rm) Covariance(R, Rm) = Covariance of a stock with market portfolio Variance(Rm) = Variance of the market portfolio CAGR of market return 22.82% Average Risk Free Return 10.14% Market Debt Equity Ratio Risk Premium Debt Equity 12.68% 70.00% 30.00%

Beta 1.48

Risk Free Rate 7.69%

Equity Debt Benchmark benchmark benchmark 26.5% 11.63% 14.70%

The calculated benchmark has been compared with IRR of the project activity to demonstrate Additionality. Calculation and comparison of financial indicator The Project IRR has been computed by taking into account the cash outflows (capital investment in the project) and cash inflows comprising profit after tax, depreciation, interest on term loan and salvage value

19

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

CDM Executive Board

(in the terminal year). Cost of electricity generated from wind energy is taken from the per unit cost available from tariff order of Rajasthan Electricity Regulatory Commission dated 16 July 2009. Based on the above mentioned factors Internal Rate of Return (IRR) is estimated for project owner. Table below shows the benchmark rate of return as well as the project IRR with and without CDM revenues. Capacity (MW) 1.5 IRR without CDM benefits(%) 6.52% IRR with CDM benefits(%) 8.97%

Company name J C Retail India Pvt. Ltd.

Benchmark 14.70%

Hence, from the above table it can be concluded that investors of this wind power project activity are not even able to achieve even their conservative benchmark IRR under normal conditions. The CDM benefit helps the project in alleviating the risk associated with the project activity. Therefore the project is financially additional in the absence of CDM benefit. Sensitivity analysis Following factors have been considered in the sensitivity analysis: 1. Gross generation 2. Project cost 3. O&M cost 4. Electricity tariff The variation in these parameters have been considered for a range of -10% to 10% and the impact of variation is shown in the table below: Project Benchmark IRR 6.52% 14.7% Project Cost 10% 5.10% - 10% 8.30% -12% 8.70% Gross generation 10% 8.48% - 10% 4.68% 10% 5.98% O&M Cost - 10% 7.08% -12% 7.17%

The results of sensitivity analysis show that even with a variation of +10% & -10% in project cost, O&M cost and gross generation by the wind turbine, project IRR is significantly lower than the benchmark. The sensitivity analysis was done for project cost & O&M cost for even 12% decrease in the cost. However, even in that case the IRR for the project activity does not reaches the benchmark value. Project IRR Benchmark 10% 6.52% 14.7% 8.44% -10% 4.72% Electricity Tariff Tariff @ 4.28 Rs/kWh for 20 years 8.57%

As a conservative approach, assuming that the electricity tariff applicable from second year is same as that in first year i.e. 4.28 Rs/kWh, even with this assumption project IRR fails to surpass the benchmark. Thus it can be concluded that the project activity is additional in absence of CDM benefits.

20

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

CDM Executive Board

Demonstration of Parallel and continuing actions as per the ' guidelines on the demonstration and assessment of prior consideration of the CDM' annex 22 to EB 49. Para 7 & 8 to the document describes the requirement of parallel and continuing actions with respect to CDM and wind project by the project proponent. It also sets out certain guidelines to decide on prior consideration of CDM by the project proponent. Chronological actions by the project proponents have been set in table below: WTG I.D Action for propagation project Actions for implementation CDM

Date

Proof of action Extract of minutes of meeting of the board Copies of purchase orders PPA copy

Board resolution for implementation of project activity along with CDM benefits Purchase order raised for wind turbine generator Power purchase agreement signed with Jaipur Vidyut Vitaran Limited RKB 32 Commissioning of wind turbine

Board resolution for 16-July-09 implementation of project activity and Serious consideration of CDM 25-July-2009 22-Sep-2009

Proposals from Consultant

CDM 23-Nov-2009

2-Jan-2010 Contract with CDM 23-Jan-2010 consultant signed Intimation to UNFCCC 23-Jan-2010 for prior consideration of CDM Local stakeholder's 17-Mar-2010 meeting held

Proposal Copy from Gensol Consultant. Commissioning certificate Contract Copy Receipt of confirmation mail Comments Sheets, attendance sheet, Public notice in local newspaper

Proposal from DOE (BVQI) for validation of the project Date of completion of the application of the baseline and monitoring methodology & project design document Proposal from DOE (Sirim QAS International) for validation of the project Meeting with DNA (MoEF) for seeking Host country approval Contract with DoE

27th-Aug-2010

8th-Sep-2010

28th-Sep-2010

28th-Oct-2010

30th-Oct-2010 Copy of contract

21

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

CDM Executive Board

Signed

22

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

CDM Executive Board

B.6.

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

As per Paragraph 11 of methodology I.D. the ex-ante baseline emissions are calculated based on the net electricity provided to the grid by renewable generating unit multiplied by an emission factor for the displaced grid electricity (in tCO2 /MWh). Baseline emissions : The baseline emission calculation for the project activity is attributable to the CO2 emissions that could have been produced at grid from fossil fuel based power plants in absence of the proposed project activity. Therefore the amount of electricity supplied to the baseline grid will be multiplied by the Grid emission factor to calculate the baseline emissions reduced by the Project. As per para 11of AMS ID BEy = EGBL,y X EFCO2,grid,.y Where, BEy = Baseline Emissions in year y; t CO2 EGBL,y = Quantity of net electricity supplied to the grid as a result of the implementation of the CDM project activity in year y (MWh) EFCO2, grid, y = CO2 emission factor of the grid in year y; t CO2/MWh Project Emissions: As per para 19 to AMS ID for renewable project activities Project Emission (PEy) in tCO2/year = 0 except geothermal and hydro power plants. Since project activity is a wind power plant. Therefore, PEy = 0 ...........(1)

Leakage Emissions: Since project does not involve transfer of an energy generating equipment from another activity, as per para 15 of AMS ID: LEy = 0 ......... (2)

Emission Reduction: As per para 21 of AMS ID, ERy = BEy-PEy-LEy

23

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

CDM Executive Board

Where, ERy = Emission reductions in year y (t CO2/y) BEy = Baseline Emissions in year y (t CO2/y) PEy = Project emissions in year y (t CO2/y) LEy = Leakage emissions in year y (t CO2/y) Using equation 1 & 2 we get, ERy = BEy-0-0 or ERy = BEy B.6.2. Data and parameters that are available at validation: 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: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the EFOM,y tCO2/MWh Operating Margin Grid Emission factor Calculated from CEA database 1.0049 The value applied is taken from the CEA database, November 2009,version 5. The detailed calculation is shown in the baseline section B.4 above.

This value is fixed ex-ante EFBM,y tCO2/MWh Build Margin Grid Emission factor CEA database 0.6752 The value applied is taken from the CEA database, November 2009, version 5. The detailed calculation is shown in the baseline section B.4 above.

This value is fixed ex-ante EFCM,y tCO2/MWh Combined Margin Grid Emission factor Calculated from operating and built margin, using 75%-25% weights 0.9225 The value applied is taken from the CEA database, November 2009, version 5.

24

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

CDM Executive Board

choice of data or The detailed calculation is shown in the baseline section B.4 above. description of measurement methods and procedures actually applied : Any comment: This value is fixed ex-ante

B.6.3

Ex-ante calculation of emission reductions:

Baseline Emissions: As explained in section B.6.1 BEy = EGBL,y X EFCO2,grid,.y EGBL,y = Quantity of net electricity supplied to the grid as a result of the implementation of the CDM project activity in year y (MWh) EFCO2, grid, y = CO2 emission factor of the grid in year y; t CO2/MWh EGBL,y = Gross generation - transmission loss = 2759.4 - 110.376 = 2649 MWh Emission Factor has been calculated in section B.4 as the combined emission factor. Thus Baseline Emission = 2649 X 0.9225 = 2,444 tCO2/annum Emission Reduction: As explained in section B.6.1 ERy = BEy Hence, ERy= 2,444 tCO2/annum

B.6.4

Summary of the ex-ante estimation of emission reductions: Estimation of Project Activity Emission (tonnes of CO2 e) 0 0 0 0 0 0 0 0 0 Estimation of Baseline Emission (tonnes of CO2 e) 2,444 2,444 2,444 2,444 2,444 2,444 2,444 2,444 2,444 Estimation of Estimation of Overall Emission Leakage (tonnes Reduction (tonnes of CO2 e) of CO2 e) 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444

Year 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019

25

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

CDM Executive Board

2019-2020 Total (tCO2eq)

0 0

2,444 24,440

0 0

2,444 24,440

B.7

Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: EGS/S kWh Monthly electricity supplied to the sub-station Meter reading by Rajasthan Electricity board

Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied:

2.65 (GWh) per annum The metering system will comprise of two sets of meters; meters on the generator cables recording gross electricity generation and meters in the substation recording net electricity generation. The net metered electricity generation data will be used to calculate and monitor the greenhouse gas emission reductions from the project. Joint Meter Reading would be done at the end of every month, by REB officials and PP representatives at the substation, hard copies of these are available with the PP. QA/QC procedures to Calibration procedure: Electricity meter is calibrated by the RVPNL at least be applied: once in 12 months with a calibration report maintained by the project owner. Meter accuracy class is 0.2s. Further technology supplier have their O&M and training systems certified through ISO 9001:2008 standards Any comment:

Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied:

ICRLCS,y GWh Individual Generation at controller by WTG y Monthly generation report 2.76 (GWh) per annum Monthly generation report is prepared by the Suzlon on the basis of controller reading at the WTG.

Any comment:

The Individual LCS are connected to the Central Monitoring Station (CMS) of the wind farm through a wireless radio frequency network (SCADA), thus ensuring real time monitoring and high reliability of the data. These meters would be maintained by the technology supplier as per the operation and maintenance contract with the PP Soft copy is preserved for entire period of the project

B.7.2

Description of the monitoring plan:

26

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

CDM Executive Board

The purpose of the monitoring plan is to ensure the completeness, consistency, accuracy of the monitoring of the net electricity generation and calculation of the emission reductions. The technology supplier is responsible for operating and maintaining the WTG as per the contract signed. The person appointed by the technology supplier will be in charge of the monitoring. The WTG is connected to feeder of Suzlon substation at Ketu-Kalan which is then connected to substation at Tinwari district where the metering is done on the outgoing line. 1. Monitoring objects: As the baseline emission factor has been ex-ante calculated, the main monitoring objects are the electricity delivered to the NEWNE grid. 2. Data collection: The organization structure responsible for operation and management as well as for the for data collection is explained in the chart below:

Technology provider

Operation and management team

Site In-charge Daily and monthly generation records from CMS Project Manager (from PP side)

CDM Consultant

Responsibilities O & M team of Technology provider is responsible for the operation and maintenance of WTG. O&M team ensure joint metering every month, regular meter testing and compilation of daily and monthly generation reports. Project manager (Representative of PP) maintains the record of generation reports, monthly meter readings and raises monthly invoice as per JMR. He is responsible for overall project management. CDM consultant appointed by project proponent, will be responsible for estimation of annual CER generation as per the generation details and joint meter reading which will be provided by project manager from PP side.

27

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

CDM Executive Board

Metering: Joint Metering is done on monthly basis by representative of technology provider and State Electricity Board (RVPNL) officials which seals and maintains meters at the outgoing line of the substation. Meter accuracy class is 0.2s. This reading is then apportioned on the basis of controller reading. The apportioning is done as per the below formula: NTL = ICRLCS, k) - EGS/S ICRLCS, k)

ITLk = NTL* ICRLCS, k/

EGindividual, = ICRLCS, k- ITLk where, NTL = Net transmission loss recorded at the sub-station ITL = Individual transmission loss of a WTG k EGindividual = Net WTG generation for billing purpose EGS/S = Sub-station meter reading at the outgoing line ICRLCS, k = Individual Generation at controller of WTG k. ICRLCS, k) = Generation by all WTG comprising the line to the substation at which EGS/S is measured k = is the number of WTG After cross checking with their online database of project owners, it is sent to RVPNL for billing.

LCS (WTG)

Secondary Meter

Tinwari Sub-station

Main Meter

Grid

Metering arrangement for the project activity

3. Data Uncertainty: Main Meter installed at the sub-station is of 0.2 s accuracy class. It is maintained by the state electricity board, hence authenticity of its output is checked periodically. A Back-up meter of same accuracy supplements the main meter and are referred both for data certainty and in case of meter failure. LCS installed at WTG are maintained and operated by the WTG provider as accepted by State electricity board. 4. Data Archiving: Each WTG is equipped with an integrated electronic meter (Local controller system or LCS). These meters record hourly data of wind speed, WTG generation, rotor RPM, reactive and active electricity consumption by WTG. The hourly meter readings are recorded and compiled at the end of each day. These readings are also compiled on monthly basis. The Individual LCS are connected to the Central Monitoring Station (CMS) of the wind farm through a wireless radio frequency network (SCADA). The LCS data of individual machine can be monitored as a real-time entity at CMS which helps in efficient operation of individual WTG and reduces the risk of breakdown of WTG. CMS also keeps a record of the total generation by WTG from the time of its commissioning till present. The snapshot of generation on the last day of every calendar month will be kept as a record both in electronic as well as printed (paper) form.

28

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

CDM Executive Board

The electricity generated is transmitted to substation which has a back up meter on the incoming line of substation and main meter on the outgoing line. The reading of main meter is used for billing purpose and for apportioning of individual generation of a WTG. The data from main and back meter will also be kept as record of the net electricity supplied by the WTG. 5. QA-QC Procedure: The meters at substation will be calibrated and sealed annually by RVPNL personnel. If any meter is found to be faulty it will be replaced by RVPNL. Backup meter is also installed at the sub-station which act as a fail-safe mechanism in event of main meter failure. The billing of electricity is done against the main electricity meter at outgoing line of the sub-station. LCS of WTG are maintained by the WTG provider, as a general practice followed by State electricity board in the state of Rajasthan.

B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) Date: 08/09/2010 Entity: Gensol Consultants Pvt. Ltd. 14-15, 2nd Floor, Camps Corner II, Opp AUDA Garden, Prahlad nagar, Ahmedabad, Gujarat - 380015, INDIA. This entity is not the Project Participant.

29

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

CDM Executive Board

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: The starting date of a CDM project activity is the date at which the implementation or construction or real action of a project activity begins. Date of raising purchase order is the conclusive evidence of project activity implementation. Hence start date of project activity is taken as 25/07/2009 which is the date of raising purchase order for the WTG. This is also documented in the chronological actions taken by the PP in section B.5

C.1.2. Expected operational lifetime of the project activity: 20 Years 0 Months C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period A fixed crediting period of 10 years has been chosen for the project activity. Hence this is not applicable. C.2.1.1. Not Applicable Starting date of the first crediting period:

C.2.1.2. Not Applicable

Length of the first crediting period:

C.2.2. Fixed crediting period: C.2.2.1. Starting date:

30/06/2011 (tentatively) or date of registration with EB whichever is later. C.2.2.2. 10 years and 0 months Length:

30

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

CDM Executive Board

SECTION D. Environmental impacts D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: Proposed project activity is using renewable energy generation technology which is free from any kind of anthropogenic emission. Project activity is not having any negative environmental impact. Only small amounts of oily and solid wastes are associated with the installation of the WTG which, can be ignored when compared to Emission reductions. Project activity will result into GHGs emission reduction equivalent to 2444 t CO2/year. As per the Schedule 1 of Ministry of Environment and Forests (MoEF - Government of India) notification dated September 14, 2006, - 39 activities are required to undertake environmental impact assessment studies.8 There are no negative environmental effects envisaged for the project. Wind turbines are considered as zero GHG emitting projects, so there will be no pollution caused by this project. Hence the proposed project does not fall under the list of activities requiring EIA as it will not involve any negative environmental impacts. Thus no EIA study was conducted.

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: Project activity has no significant emissions. Hence no environmental impact analysis was conducted.

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

31

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

CDM Executive Board

SECTION E. Stakeholders comments

E.1.

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

In order to get the views of the local stakeholders and respond to their concerns (if any), a stakeholder meeting was organized by the project proponent. The meeting was open to all and invitations were sent through the paper advertisement on the local newspaper. Concerning persons were called for the Local stakeholder's meeting held on 17/03/2010. Advertisement were given in local newspapers in local language on 4/03/2010 so that the stakeholders have ample time to compile their doubts and worries. Local farmers, maintenance personals of the WTGs, and employees were present as the stakeholders. The schedule of the meeting was as follows Welcome Note and Introduction Presentation of the CDM-Kyoto Protocol and role of local stake holder Presentation of the project undertaken by project proponent Addressing stakeholders concerns by representatives of participant Vote of thanks

Local language was used for the presentation, sharing and responding to the questions. The summary of the meeting was recorded- copy of which will be made available to Designated Operating Entity during validation process. The list of participants with their signature is kept for record and photographs of the event were also taken.

E.2.

Summary of the comments received:

Stakeholders Involvement: The project participants prepared necessary documentation before implementation of the project activity and approached the above stakeholders individually. The project participants have received all clearances and approvals with no negative comments for the project activity from the Governmental agencies vested with the authority to examine the proposals from all aspects and issue the same. Stakeholders comments: After the brief overview of CDM and project activity given by the project proponent, stakeholder interaction session was held wherein villagers and other stakeholders recommended that there are no adverse effects of the project on the villagers and have improved employment in the area. Promotion of these activities was also advocated. This is also evident from issuance of approvals/consents/licenses for setting up and commissioning of the project activity and no adverse comments for the project. Common queries from stakeholders (Mr. Prabhu Singh, Mr. Bheem Singh, Mr. Madan Kanwar and others) regarding global warming and role of greenhouse gases, and the responses by project proponent are listed below:

32

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

CDM Executive Board

Mr. Prabhu Singh. You mentioned the Greenhouse Gas Effect in which some gases come out which are harmful. Which are these gases and what is their effect? Ans. The Greenhouse Gas Effect occurs when gases such as carbon dioxide are emitted in large quantity. They trap heat energy emitted by earth's surface and lead to increase in global temperature. This is one of the gases but most emitted one contributing to Greenhouse Gas Effect. There are other gases too. Mr. Bheem Singh. Will the project help in improving electricity supply to the villagers and neighbourhood areas? Ans. It is expected to improve electricity supply since the electricity generated from the project is fed to the grid. Mr. Madan Kanwar. Will this plan of tapping energy from RE sources lead to an increase in jobs for the villagers? Ans. Yes, it will definitely lead to increase in the number of jobs for the villagers. E.3. Report on how due account was taken of any comments received:

No negative comments has been received hence no further action has been taken. The villagers were satisfied with the positive impact of the project and encouraged the idea of development of such projects.

33

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

CDM Executive Board

Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: Jai Hind Collection India Pvt Ltd Laxmi Road 607, Sadashiv Peth, Pune Maharashtra 411030 India 020-24271008/7 sales_jcretail@gmail.com Director Mr, Jain Dinesh Operations +91-9822033323

sales_jcretail@gmail.com

34

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

CDM Executive Board

Annex 2 INFORMATION REGARDING PUBLIC FUNDING NO PUBLIC FUNDING HAS BEEN RECEIVED FOR THIS PROJECT.

35

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

CDM Executive Board

Annex 3 BASELINE INFORMATION

CENTRAL ELECTRICITY AUTHORITY: CO2 BASELINE DATABASE VERSION DATE 5 Nov'09 ACM 0002/Ver 10 and "Tool to Calculate the Emission Factor for an Electricity System", Version 1.1

BASELINE METHODOLOGY

Net Generation in Operating Margin (GWh) NEWNE South India 2006-07 379,470.60 109,116 488,587 2007-08 401641.59 114,702 516,343 2008-09 421,802.63 121,471 543,274

Simple Operating Margin (tCO2/MWh) (incl. Imports) 2006-07 NEWNE 1.0083 South 0.9991 India 1.0063 weighted average emissions (tCO2/MWh) for NEWNE grid

2007-08 0.999174160 0.990623514 0.997347067

2008-09 1.0066 0.9729 1.0094

1.0047

weighted average emissions (tCO2/MWh) for Southern grid

0.9871

Build Margin (tCO2/MWh) Build Margin (tCO2/MWh) (excl. Imports) 2006-07 NEWNE 0.6313 South 0.7013 India 0.6485 Build Margin (tCO2/MWh) for NEWNE grid Build Margin (tCO2/MWh) for Southern grid combined Margin Emission Factor for NEWNE Grid (tCO2/MWh) combined Margin Emission Factor for NEWNE Grid (tCO2/kWh)

2007-08 0.5977 0.7133 0.6253

2008-09 0.6752 0.8179 0.7088 0.6752

0.8179

0.9225

0.0009

36

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

CDM Executive Board

Annex 4 MONITORING INFORMATION

The reading of the meters shall be taken every month by authorized officer of State electricity board and representative of Suzlon Energy Limited, if present. The meters shall be calibrated once in a year. If during the annual calibrations, both the main and the back up meters are found to have errors beyond permissible limits, meter shall be replaced immediately.

37

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

CDM Executive Board

APPENDIX I 1. Investment Analysis Results IRR without CDM benefits(%) 6.52%

Company name J C Retail India Pvt. Ltd. Senstivity analysis:

Capacity (MW) 1.5

IRR with CDM benefits(%) 8.97%

Benchmark 14.70%

Following factors have been considered in the sensitivity analysis: 1. Gross generation 2. Project cost 3. O&M cost 4. Electricity tariff The variation in these parameters have been considered for a range of -10% to 10% and the impact of variation is shown in the table below:

Project Benchmark IRR 6.52% 14.7%

Project Cost 10% 5.10% - 10% 8.30% -12% 8.70%

Gross generation 10% 8.48% - 10% 4.68% 10% 5.98%

O&M Cost - 10% 7.08% -12% 7.17%

As shown above the sensitivity analysis was done for project cost & O&M cost for even 12% decrease in the cost.

Electricity Tariff Project IRR Benchmark 10% 6.52% 14.7% 8.44% -10% 4.72% Tariff @ 4.28 Rs/kWh for 20 years 8.57%

As a conservative approach, sensitivity analysis for tariff of electricity sold was also done assuming that the tariff applicable from second year is same as that in first year i.e. 4.28 Rs/kWh and the result is shown in the table above Result of sensitivity analysis show that the project IRR will not surpass benchmark.

38

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

CDM Executive Board

2. CER estimation: As detailed in Section B.6.3 Baseline Emissions: As per the methodology AMS I.D. BEy = EGBL,y X EFCO2,grid,.y EGBL,y = Quantity of net electricity supplied to the grid as a result of the implementation of the CDM project activity in year y (MWh) EFCO2, grid, y = CO2 emission factor of the grid in year y; t CO2/MWh EGBL,y = Gross generation - transmission loss Gross generation = Installed capacity* PLF*365*24 = 2759.4 Transmission loss = 4% EGBL,y = 2759.4 - 110.376 = 2649 MWh Emission Factor has been calculated as the combined emission factor = 0.9225 t CO2/MWh Thus Baseline Emission = 2649 X 0.9225 = 2,444 tCO2/annum Since LEy for the project activity is zero therefore, Emission Reduction: ERy = BEy Hence, ERy= 2,444 tCO2/annum Annual generation of CERs is shown in the table below: Estimation of Project Activity Emission (tonnes of CO2 e) 0 0 0 0 0 0 0 0 0 0 0 Estimation of Baseline Emission (tonnes of CO2 e) 2,444 2,444 2,444 2,444 2,444 2,444 2,444 2,444 2,444 2,444 24,440 Estimation of Estimation of Overall Emission Leakage (tonnes Reduction (tonnes of CO2 e) of CO2 e) 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 2,444 0 24,440

Year 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 Total (tCO2eq)

39