Project Design Document Form (CDM PDD) - Version 02 CDM - Executive Board

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02
CDM – Executive Board page 1
CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT
Version 02 (1 July 2004)
CONTENTS
A. General description of project activity
B. Application of a baseline methodology
C. Duration of the project activity / Crediting period
D. Application of a monitoring methodology and plan
E. Estimations of GHG emissions by sources
F. Environmental impacts
G. 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
Enclosures
Enclosure I: Built Margin Calculations
Enclosure II: CER Calculations
Enclosure III: Abbreviations
Enclosure IV: List of References

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

20 MW Kabini Hydro Electric Power Project, SKPCL, India
A.2. Description of the project activity:
>> Subhash Kabini Power Corporation Limited (SKPCL) is promoted by M/s Subhash Projects and
Marketing Ltd (SPML) to develop the 20 MW Kabini Hydro Electric Power (KHEP) Project on the
existing Kabini Dam in the Mysore district of Karnataka state, India.
The purpose of the project activity is to generate power from a renewable source of mechanical
energy earlier lost in the form of discharge of surplus water from the Kabini Dam used for irrigation
purposes.
By utilizing the surplus discharge1 of the irrigation dam the project activity is
• Utilizing the untapped mechanical energy resource, this was otherwise being wasted.
• Contributing to the power requirements of Karnataka Power Transmission Corporation
Limited (KPTCL), the Karnataka state grid and thereby positively contributing to economic
growth of the state.
• Conserving the environment and its natural resources (like coal, petroleum oils and other
fossil fuels) through use of renewable energy
• Reducing Green House Gas (GHG) emissions.
SKPCL’s 2x10 MW power project is a hydro-power project, with some distinctions, which makes
the project a unique one.
The project has been developed on an existing irrigation dam constructed in 1975. The dam on the
River Kabini was primarily designed to hold monsoon water in order to meet the irrigation
requirements of the down stream area for the rest of the year. The total irrigation contemplated for
Stage I under left and right bank canals was 45749 hectares (1,13,000 acres). The gross storage
capacity of the dam was designed to hold 552.7 Million Cubic Meter (M. Cum.) of water, which
corresponds to 21.76 meter level of the dam, with a maximum allowable limit of 21.80 meter. During
the lean period, there would be no surplus water and the irrigation water would be discharged
through the irrigation canal. During monsoon season the surplus water is discharged into the river.
The project activity is envisaged to use this surplus discharge (available primarily during the
monsoon season) and not the irrigation canal discharge .
Therefore the primary objective of the project activity is

To maximise the utilisation of surplus water. The size of the plant is optimally selected at 20
MW (2x10MW). The annual days of full load operation is thus restricted to about 90 days.
Further to avail the occasional discharge other than monsoon season and lower discharge
during non-monsoon season, the plant is designed to operate at around 20% of the rated load.
Generally hydro power plants are designed to operate at around 60% - 110%2 of the rated load
to avoid cavitations. In this particular project, certain design modifications have been
incorporated in tailrace and the machines in order to operate at a much lower discharge.
The project engenders important local, national and global sustainable development for India.
The KHEP project activity is a renewable energy project, which is also in line with the India’s
national policy to promote clean power. The Government’s clean power diversification strategy
includes a multi-pronged strategy focusing on reducing wastage of energy combined with the
optimum use of renewable energy (RE) sources, as proposed by the project activity.
The KHEP project activity’s contribution towards India’s sustainable development is as follows
Environmental Well-Being
Indian economy is highly dependent on “Coal” as fuel, to generate energy and for production
processes3. Thermal power plants are one of the major consumers of coal in India, and yet the basic
electricity needs of a large section of people are not being met. Changing coal consumption patterns
will require a multi-pronged strategy focusing on demand, and reducing wastage of energy and the
proper use of finite resources in the metallurgical and production process.
The project substitutes and hence decreases the future need, for coal-based power generation by the
grid, thereby reducing carbon dioxide (CO2) emissions from the Indian electricity sector. Also the
associated SPM, SOx, NOx emissions and emission of transportation and excavation of associated
fossil fuel are avoided. Therefore power generation from renewable energy sources creates global as
well as local air pollutant benefits. The project positively contributes towards the reduction in
demand for India’s carbon intensive energy resources. This project activity has excellent
environmental benefits in terms of reduction in carbon emissions that would have occurred due to
electricity generated by an equivalent capacity thermal power plant.
Since the power is generated from the surplus water of an existing irrigation dam there are no
negative environmental impacts expected in the case of a Hydro Project with dam construction as
1
The project utilizes the surplus discharge only and will not be using irrigation canal discharge.
2
Manual on Good Practices in Power Sector(2004), Central Electricity Authority , Government of India,
www.cea.nic.in/good_practices/
3
Annual Report, www.powermin.nic.in/report/
one of the installations. The system (River, Irrigation Dam and Flow) behaviour with or without the
project activity does not alter at all except that the outcome of the project activity is green power
addition to the state grid. It may further be mentioned in the same context, that the carrying capacity
of the downstream river is adequate to support any sudden impoundments like the irrigation dam and
that has been tested for last 28 years of the existence of the dam.
Social Well-Being:
The project activity is contributing to the grid demand that is necessary for sustenance and
development of the society and especially in a power deficit grid like Karnataka4. The project activity
is also contributing to local job and income creation in the rural area.
Economic Well-Being:
The project utilizes the potential energy in the surplus discharge from the irrigation dam that was
being lost. The electricity generated from the project activity converts this waste energy to resource
and adds the power to the national economic cycle.
Besides generating local employment necessary for plant operation and maintenance, the project
activity itself has contributed to economic cycle due to its equipment, spare parts, and consumables
for maintenance.
Therefore this project has contributed to the environmental, economical and social issues by:
Reducing wasteful potential energy release to environment in the form of water discharge
from the dam.
Generating 54.03 million units of electricity on an annual basis
Reducing electricity consumption required for auxiliary consumption to generate equivalent
amount of energy in thermal power plants.
Conserving coal/gas/oil, a non-renewable primary natural resource and energy & resource
associated with its processing.
Making coal/gas/oil available for other important applications
Reducing GHG (CO2)
Reducing pollution level (negligible in comparison to equivalent thermal generation.)
Contributing to local employment in the area of skilled jobs for operation and maintenance
of the equipment.
4
www.karenergy.com,www.kptcl.com, Statistics at a glance (2003), KPTCL;
A.3. Project participants:
Name of the Party Private and/or public Kindly indicate if

involved entity(ies) the Party involved
((host) indicates a Project participants (as wishes to be
host party) applicable) considered as
project participant
(Yes/No)
India (Host) SKPCL No
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:
>> The 20 MW Kabini Hydro Electric Power Project is developed on the existing Kabini Dam in
Mysore district, Karnataka.
A.4.1.1. Host Party(ies):
>> India
A.4.1.2. Region/State/Province etc.:
>> Karnataka
A.4.1.3. City/Town/Community etc:
>> Heggedadevana Kote Taluk, Mysore District
A.4.1.4. Detail of physical location, including information allowing the

unique identification of this project activity (maximum one page):
>>
The River Kabini is one of the major tributaries of the River Cauvery. A dam across the River Kabini
was constructed in 1975, mainly for irrigation purposes. The irrigation scheme consists of a 28.96m
high dam across the River Kabini near Bidarhalli and Beechanahalli villages, in Heggedadevana
Kote Taluk, Mysore District, Karnataka State, with gross storage capacity of 552.7 M. Cum. The 20
MW Kabini Hydro Electric Power Project is developed on this existing Kabini Dam.
The entire dam site is well connected by roads (constructed during irrigation dam structure
development) and easily approachable from the nearest railway station.
Maps not to scale
A.4.2. Category(ies) of project activity:

>> The project activity is ‘hydropower project with the existing reservoirs where the volume of the
reservoir is not increased’.
The project activity fall in Scope Number 1; Sectoral Scope - Energy industries (renewable - / non-
renewable sources) as per “Link of sectoral scopes with approved methodologies (version
02/28.11.03)”
A.4.3. Technology to be employed by the project activity:

>>
The Kabini Hydro Electric Project utilizes the existing Kabini Irrigation Dam’s surplus discharge
from the head available at dam site to generate electricity. Surplus discharge was found to vary
from 50 Cumecs to 170 Cumecs with a varying head of a minimum of 13.38m to a maximum of
21.94m over the year. The project activity entailed an extension of the existing single penstock
of 5.49m diameter and constructing a Power House, a Tail Race Channel and an outdoor yard to
generate and transmit the electrical power to the Karnataka Power Transmission Corporation
Limited (KPTCL) Grid. Two 10 MW Units with 10% overload have been installed. To utilise
the low discharge, the turbines and the tailrace have been modified to operate at low load (as low
as 20% of rated load), which is not a common occurrence. Similar plants in the state (with
similar plant capacity, reservoir capacity and rainfall zone) generate net electricity output of
almost double that of the project activity.
The project activity includes the provision of double circuit 66 KV Transmission line from the
Generating Station switchyard up to Kadakola / Hunsur grid substation.
The average annual energy generation, based on reservoir operation tables for 40 years, from 1954-
55 to 1993-94 is of the order of 72.7 MU in a 50% dependable year and 52.80MU in a 90%
dependable year.
A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic

greenhouse gas (GHGs) by sources are to be reduced by the proposed CDM project activity,
including why the emission reductions would not occur in the absence of the proposed project
activity, taking into account national and/or sectoral policies and circumstances:
>>
The primary objective of the KHEP project activity is to generate electricity from surplus water from
an irrigation dam to supply to Karnataka grid with zero project emissions. The KHEP project activity
will generate gross electricity of 54.3 MU per annum and with 0.14 MU of auxiliary consumption
and 0.14MU of transformer losses, the project activity will export to KPTCL grid net electricity of
54.03 MU per annum. No transmission and distribution losses are considered as the project activity
is exporting power at high voltage of 66 kV.
Without the KHEP project activity, the same energy load would have been taken-up by Karnataka
grid mix and emission of CO2 would have been occurred due to combustion of conventional fuels
like coal, resulting in a higher combined margin carbon intensity factor for the grid. The export of
20MW of clean electricity to the fossil fuel dominated grid by the KHEP project activity will result
in GHG reductions over the crediting period, as the project would avoid an equivalent grid-generated
GHG emissions.
Therefore, a conventional grid-generated energy equivalent of 540.3 million kWh for a period of 10
years in Karnataka would be replaced by exporting power from the KHEP project activity with
projected CO2 emission reduction of 4,49,682 tonnes over a 10 year credit period.
The SKPCL has implemented the KHEP project activity over and above the national or sectoral
requirements. The GHG reductions achieved by the project activity are additional to those directed
by the governmental policies and regulations.
A.4.4.1. Estimated amount of emission reductions over the chosen

crediting period:
>>
Years Annual estimation of emission reductions in

tonnes of CO2 e
June, 2003 – May, 2004 44968
June, 2004 – May, 2005 44968
June, 2005 – May, 2006 44968
June, 2006 – May, 2007 44968
June, 2007 – May, 2008 44968
June, 2008 – May, 2009 44968
June, 2009 – May, 2010 44968
June, 2010 – May, 2011 44968
June, 2011 – May, 2012 44968
June, 2012 – May, 2013 44968
Total estimated reductions 449680
(tonnes of CO2 e)
Total number of crediting years 10
Annual average over the 44968
crediting period of estimated
reductions (tonnes of CO2 e)
A.4.5. Public funding of the project activity:
>> No public funding from parties included in Annex – I is available for the project activity.
SECTION B. Application of a baseline methodology
B.1. Title and reference of the approved baseline methodology applied to the project
activity:
>>
Title: Consolidated baseline methodology for grid-connected electricity generation from
renewable sources
Reference: Approved consolidated baseline methodology ACM0002/Version 01, Sectoral Scope: 1,
3 September 2004.
B.1.1. Justification of the choice of the methodology and why it is applicable to the
project activity:
>>
The ‘ACM0002: Consolidated methodology for grid-connected electricity generation from

renewable sources’ may be applied to grid-connected renewable power generation project activities
which are electricity capacity addition from the Run-of-river hydro power plants; hydro power
projects with existing reservoirs where the volume of the reservoir is not increased.
The KHEP project activity is a grid connected hydro-power project, which is developed on an
existing irrigation dam where the volume of the reservoir is not increased. The project activity
exports electricity to the Karnataka Power Transmission Corporation Limited (KPTCL) comprising
of power generated through other sources such as coal and gas based thermal power plants, hydro
power stations, renewable energy sources including like small/micro hydro projects and
bagasse/biomass based cogeneration/power projects. The project activity is envisaged to use only
surplus discharge (available primarily during the monsoon season) and not the irrigation canal
discharge.
ACM0002 is therefore the most suitable approved methodology available for the KHEP project
activity.
Further, ACM0002 also requires the KHEP project activity to meet the following applicability
criteria:
“The geographic and system boundaries for the relevant electricity grid can be clearly identified and
information on the characteristics of the grid is available;”
As mentioned above, the KHEP project activity feeds power to KPTCL – Karnataka Power
Transmission Corporation Limited. KPTCL is a company wholly owned by the Government of
Karnataka mainly vested with the functions of transmission of power in the entire State of Karnataka.
KPTCL serves the consumers of different categories spread all over the Karnataka State covering an
area of 0.192 million square kilometers.
KPTCL purchases power from Karnataka Power Corporation Limited, which generates and operates
major power generating projects in the state consisting Hydel, Thermal and other sources. KPTCL
also purchases power from Central Government owned generating stations like National Thermal
Power Corporation, Neyvelli Lignite Corporation and the Atomic Power Stations at Kalpakkam and
Kaiga.
KPTCL encompasses the spatial extent of the power plants catering to Karnataka state that can be
dispatched without significant transmission constraints. KPTCL is therefore the geographical and
system boundary (project electricity system). The information on the characteristics of KPTCL is
available and has been used to calculate at the Electricity Baseline Emission Factor.
This baseline methodology shall be used in conjunction with the approved monitoring methodology
ACM0002 (Consolidated monitoring methodology for zero-emissions grid-connected electricity
generation from renewable sources).
B.2. Description of how the methodology is applied in the context of the project activity:
>>
As per the Approved consolidated baseline methodology ACM0002 – Consolidated baseline

methodology for grid-connected electricity generation from renewable sources SKPCL is required
to:
(i) Establish additionality as per “Tool for the demonstration and assessment of
additionality” as provided in Annex I: to the Executive Board – 16 meeting report.
Information/data related to industry practice and other regulatory and project related
documents have been used to establish the additionality of the KHEP project activity.
Details of demonstration of additionality are a part of Section B.3.
(ii) Calculate baseline emissions that would have occurred in the baseline scenario in
absence of KHEP project activity due to an equivalent electricity generation by the
operation of grid-connected power plants and by the addition of new generation sources
as per the guidance provided in ACM0002/Version 01 dated 3 September 2004. The
following section presents the overview of the steps followed and the key information
and data used to apply ACM0002 to the KHEP project activity and calculate the baseline
emission factor and the baseline emissions thereafter.
Baseline
SKPCL conducted the Investment Analysis of the KHEP project activity (For details of the
Investment Analysis of KHEP project activity please refer to Section B.3). The SKPCL management
approved the KHEP project activity after taking into consideration the revenue stream generated
through sale of certified emission reductions (CERs) in the investment analysis.
Under no project (baseline) scenario the electricity requirements of Karnataka would be met by the
KPTCL comprising of fossil fuel based thermal (coal, gas and diesel based), hydro and nuclear
power plants and by the addition of new generation sources.
The baseline emissions and the emission reductions from KHEP project activity are estimated based
on the quantum of electricity to be exported by the KHEP project activity to the KPTCL and the
Baseline Emission Factor (BEF) of the chosen grid calculated as a combined margin (CM),
consisting of the combination of operating margin (OM) and build margin (BM) factors according to
the three steps given below.
Calculation of electricity baseline emission factor
STEP 1. Calculate the Operating Margin emission factor (EFOM,y)
As per Step 1, the Operating Margin emission factor(s) (EFOM,y) is calculated based on one of the
four following methods:
(a) Simple OM, or

(b) Simple adjusted OM, or
(c) Dispatch Data Analysis OM, or
(d) Average OM.
As per the methodology ‘Dispatch Data Analysis’ (1c) should be the first methodological choice.
However, this method is not selected for OM emission factor calculations due to non-availability of
activity data.
‘Simple OM’ (1a) method is applicable to project activity connected to the project electricity system
(grid) where the low-cost/must run resources constitute less than 50% of the total grid generation in
1) average of the five most recent years, or 2) based on long-term normal for hydroelectricity
production.
The Simple adjusted OM (1b) and Average OM (1d) methods are applicable to project activity
connected to the project electricity system (grid) where the low-cost/must run resources constitute
more than 50% of the total grid generation.
To select the appropriate methodology for determining the Operating Margin emission factor
(EFOM,y) for the KHEP project activity, SKPCL conducted a baseline study wherein the power
generation data for all power sources in the project electricity system were collected from
government/non-government organisations and authentic sources and analysed. The project
electricity system – the Karnataka Power Transmission Corporation Limited was found to be
dominated by fossil fuel based power plants. The low operating cost and must run resources which
typically include hydro, geothermal, wind, low-cost biomass, nuclear and solar generation
constituted less than 50% of the total grid generation and the data in the Table B-1 illustrates the
same.
Table B-1: Power generation Mix of Karnataka for five years

Energy Source 1999-00 2000-01 2001-02 2002-03 2003-04
Total Power Generation (MU) 26117.52 26520.57 28063.94 28754.00 30722.40
Total Thermal Power Generation (MU) 13116.24 14625.713 17131.231 19760.75 21368.87
4
Total Low Cost Power Generation5 13001.27 11894.857 10932.709 8993.25 9353.527
(MU) 6
Thermal % of Total grid generation 50.22 55.15 61.04 68.72 69.55
Low Cost % of Total grid generation 49.78 44.85 38.96 31.28 30.45
% of Low Cost generation out of Total generation - Average of the five most recent years –39.06%
Data Source for the years 1999-00, 2000-01, 2001-02, 2002-03 & 2003-04: KPTCL
SKPCL has therefore adopted the ‘Simple OM’ (1a) method, amongst the ‘Simple OM’ (1a),
‘Simple adjusted OM’ (1b) and ‘Average OM’ (1d) methods to calculate the Baseline Emission
Factor of the chosen grid.
The Simple OM emission factor (EFOM,simple,y) is calculated as the generation-weighted average
emissions per electricity unit (tCO2/MU) of all generating sources serving the project electricity
system, not including low-operating cost and must-run power plants. The generation data for various
power generating stations for the most recent three years are presented in Tables 3-1, 3-2, 3-3 and 3-
4 of Annex 3:
The Simple OM emission factor can be calculated using either of the two following data vintages for
years(s) y:
• A 3-year average, based on the most recent statistics available at the time of PDD submission, or
• The year in which project generation occurs, if EFOM,y is updated based on ex post monitoring.
SKPCL has calculated the OM emission factor as per the 3-year average of Simple OM calculated
based on the most recent statistics available at the time of PDD submission.
The following Table B-2 presents the key information and data used to determine the Simple OM
emission factor.
5
Low-cost/must run resources typically include hydro, geothermal, wind, low-cost biomass, nuclear
and solar generation
Table B-2: Data used for Simple OM emission factor

COEFi,j y- is the CO2 emission coefficient of fuel i (tCO2 / mass or volume unit of the fuel), taking into account
the Net Calorific Value (energy content) per mass or volume unit of a fuel i (NCVi), the CO2 emission factor
per unit of energy of the fuel i(EFCO2,i), and the oxidation factor of the fuel i (OXIDi).
Parameters 2001-2002 2002-2003 2003-2004 Source
Coal Gas Diesel Coal Gas Diesel Coal Gas Diesel

NCVi (kcal/kg) 3877 10750 9760 4171 10750 9760 4171 10750 9760 Coal: General
Review 2000-2001
& 2002-2003
(CEA)
Gas: IPCC-Good
Practice Guidance
Diesel: General
Review 2002-03
(CEA)
96.1 73.3 74.1 96.1 73.3 74.1 96.1 73.3 74.1 IPCC 1996
EFCO2,i (tonne
Revised Guidelines
CO2/TJ)
and the IPCC
Good Practice
Guidance
OXIDi 0.98 0.995 0.99 0.98 0.995 0.99 0.98 0.995 0.99 Page 1.29 in the
1996 Revised
IPCC Guidelines
COEFi,j y(tonne 1.526 3.277 2.992 1.642 3.277 2.992 1.642 3.277 2.992 Calculated as per
Equation (2) of
of CO2/ton of
ACM0002
fuel)
Fi ,j, y - Fuel Consumption – is the amount of fuel consumed by relevant power sources j (where j – power
sources delivering electricity to the grid, not including low-operating cost and must-run power plants and
including imports from the grid). The Fuel Consumption is calculated based on total generation of the relevant
power sources (j) (ΣjGENj,y) , efficiency of power generation with fuel source i (Ei,j)and the Net Calorific
Value (energy content) per mass or volume unit of a fuel i (NCVi).
GENj,y is the electricity (MU) delivered to the grid by source j, j refers to the power sources delivering
electricity to the grid, not including low-operating cost and must-run power plants, and including imports
from the grid. The j power sources would also include electricity imports from the Central Generating
Stations since the net imports from CGS exceed 20% of the total generation in the project electricity system -
KPTCL.

14281.8 943.57 1466.1 16962.31 1178.18 1103.73 17364.31 866.37 800.91 Refer to Tables 3-
ΣjGENj,y (MU)
1, 3-2, 3-3, and 3-
4: Power
Generation Data of
Annex 3-Baseline
Information
Efficiency of power generation with fuel source in % (Ei,j) -The most important parameter in calculating the
‘Fuel consumption’ by relevant power sources is the thermal efficiency of the power plant with fuel source i.
The methodology requires the project proponent to use technology provider’s nameplate power plant
efficiency or the anticipated energy efficiency documented in official sources. The design efficiency is
expected to be a conservative estimate, because under actual operating conditions plants usually have lower
efficiencies and higher emissions than the nameplate performance would imply. The efficiency of power
generation with fuel source is calculated using the most conservative Design Station Heat Rate Value.

Station Heat Rate 2434.38 1911 2062 2425.92 1911 2062 2425.92 1911 2062 Coal -Performance
(Design Values) Review of Thermal
Power Stations
2001-02, 2002-03
& 2003-04 -
Section 13
Gas- Petition No.
22/99; IA
No.27/1999 AND
IA No.18/2000
Diesel –
http://mnes.nic.in/b
aselinepdfs/annexu
re2c.pdf
Ei,j (%) 35.327 45 41.707 35.45 45 41.707 35.45 45 41.707 Calculated using
Station Heat Rate
Values
NCVi (kcal/kg) 3877 10750 9760 4171 10750 9760 4171 10750 9760 Coal – General
Review 2000-2001
& 2002-2003
(CEA)
Gas-IPCC-Good
Practice Guidance
Diesel-General
Review 2002-03
(CEA)
Fi ,j, y is the amount of fuel i (in a mass or volume unit, here tons/yr) consumed by relevant power sources j in
year(s) y

8967585 167739 309744 9865550 209445 233185 10099359 154015 169209 Calculated
Fi ,j, y (tons/yr)
16691.47 19244.22 19031.59 Refer to Tables 3-
ΣjGENj,y (MU)
1, 3-2, 3-3, and 3-
4: Power
Generation Data of
Annex 3-Baseline
Information
EF (excluding 908.23 913.47 924.24 Calculated

electricity
imports from
other grids)
(ton ofCO2/MU)
There are some electricity transfers from the connected electricity systems (PTCIL, PGCIL, NTPC-
NVVN,WREB and SREB) to the KPTCL project electricity system.
Import % from 1.35 1.70 7.61 Refer to the CER

National Grid Calculation Sheet
out of total
generation

WREB out of Calculation Sheet
total generation

SREB out of Calculation Sheet
total generation
As per ACM0002 the CO2 emission factor for the net electricity imports from the connected electricity system
may be determined as the average emission rate of the exporting grid, if and only if net imports do not exceed
20% of total generation in the project electricity system.
The Emission Factor of the National Grid has been used as the emission factor for imports from PTCIL (Power
Trading Corporation of India Limited), PGCIL (Power Grid Corporation of India Limited) and NTPC-NVVN.
The Emission Factor of the Western Grid has been used as the emission factor for imports from WREB
(Western Regional Electricity Board). The Emission Factor of the Southern Grid has been used as the emission
factor for imports from SREB (Southern Regional Electricity Board).
EF (National 872 865 845 http://mnes.nic.in/b
Grid) aselinepdfs/chapter
(ton ofCO2/MU) 2.pdf
(EF of National
Grid has been
considered)
EF (WREB) 932 910 910 http://mnes.nic.in/b
(ton ofCO2/MU) aselinepdfs/chapter
2.pdf
(EF of Western
Grid has been
considered)
EF (SREB) 752 769 757 http://mnes.nic.in/b
(ton ofCO2/MU) aselinepdfs/chapter
2.pdf
(EF of Southern
Grid has been
considered)
Net EFOM,simple,y is the calculated as the weighted average of the EF (excluding electricity imports from other
grids), EF (National Grid), EF (WREB) and EF (SREB).
Imports from 379.92 487.81 2337.28 Refer to Tables 3-

NTPC-NVVN, 4: Power
PTCIL and Generation Data of
PGCIL (MU) Annex 3-Baseline
Information
WREB (MU) 4: Power
Generation Data of
Annex 3-Baseline
Information
SREB (MU) 4: Power
Generation Data of
Annex 3-Baseline
Information
Net 907.49 912.18 915.58 Calculated
EFOM,simple,y
(ton of
CO2/MU)
EFOM,simple 911.75 Average of the
most recent three
(ton of
years' Simple OM
CO2/MU)
STEP 2. Calculate the Build Margin emission factor (EFBM,y)

As per Step 2 the Build Margin emission factor (EFBM,y) is calculated as the generation-weighted
average emission factor (tCO2/MU) of a sample of power plants.
The methodology suggests the project proponent to choose one of the two options available to
calculate the Build Margin emission factor EFBM,y
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:
(a) The five power plants that have been built most recently, or
(b) The power plants capacity additions in the electricity system that comprise 20% of the
system generation (in MU) and that have been built most recently.
Project participants should use from these two options that sample group that comprises the larger
annual generation.
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
(a) the five power plants that have been built most recently, or
(b) the power plants capacity additions in the electricity system that comprise 20% of the system
generation (in MU) and that have been built most recently.
Project participants should use from these two options that sample group that comprises the larger
annual generation.
SKPCL has adopted Option 1, which requires the project participant to 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 should consist of either (a)
the five power plants that have been built most recently, or (b) the power plants capacity additions in
the electricity system that comprise 20% of the system generation (in MU) and that have been built
most recently. Project participants are required use from these two options that sample group that
comprises the larger annual generation. As per the baseline information data the option (b) comprises
the larger annual generation. Therefore for our KHEP project activity the sample group m consists of
(b) the power plants capacity additions in the electricity system that comprise 20% of the system
generation (in MU) and that have been built most recently. Power plant capacity additions registered
as CDM project activities are excluded from the sample group.
The following Table B-3 presents the key information and data used to determine the Simple BM
emission factor.
Table B-3: Data used for Simple BM emission factor

Parameters 2003-2004 Source
Coal Gas Diesel

COEFi,m,- is the CO2 emission coefficient of fuel i (tCO2 / mass or volume unit of the fuel), taking into account
the Net Calorific Value (energy content) per mass or volume unit of a fuel i (NCVi), the CO2 emission factor per
unit of energy of the fuel i (EFCO2,i), and the oxidation factor of the fuel i (OXIDi).
NCVi (kcal/kg) 4171 10750 9760 Coal & Diesel – General Review 2002-2003 (CEA)
Gas-IPCC-Good Practice Guidance
EFCO2,i (tonne CO2/TJ) 96.1 73.3 74.1 IPCC 1996 Revised Guidelines and the IPCC Good Practice
Guidance
OXIDi 0.98 0.995 0.99 Page 1.29 in the 1996 Revised IPCC Guidelines
COEFi,m (tonne of 1.642 3.277 2.992 Calculated as per Equation (2) of ACM0002
CO2/ton of fuel)
Where NCVi ,EFCO2,i OXIDi, COEFi,m are analogous to the variables described for the simple OM method above
for plants in the sample group m.
Coal Gas Diesel

Fi ,m, y - Fuel Consumption – is the amount of fuel consumed by relevant power sources m (where m – power
sources which are a part of the sample group m delivering electricity to the grid). The Fuel Consumption is
calculated based on total generation of the relevant power sources (m) (ΣmGENm,,y) , efficiency of power
generation with fuel source i (Ei,m)and the Net Calorific Value (energy content) per mass or volume unit of a
fuel i (NCVi).
ΣGENm,y (MU) 3363.82 866.37 0.00 Refer to Table 3-5 Power Generation Data for Calculation of Built
Margin of Annex 3-Baseline Information
Station Heat Rate 2425.92 1911 2062 Coal -Performance Review of Thermal Power Stations 2003-04
(Design Values) Section 13 Page no. 13.3
Gas- Petition No. 22/99; IA No.27/1999 AND IA No.18/2000
Diesel – http://mnes.nic.in/baselinepdfs/annexure2c.pdf
Avg. efficiency of 35.45 45 41.707 Calculated using Station Heat Rate Values
power generation with
fuel source as (in %)
NCVi (kcal/kg) 4171 10750 9760 Coal & Diesel – General Review 2002-2003 (CEA)
Gas-IPCC-Good Practice Guidance
Fi ,m, y (tons/yr) 1956451 154015 0 Calculated
Where GENm,y (MU) , NCVi ,Fi,m,y, are analogous to the variables described for the simple OM method above
for plants in the sample group m.
ΣGENm,y (excluding 5122.41 Refer to Table 3-5 Power Generation Data for Calculation of Built
imports of electricity from Margin of Annex 3-Baseline Information.
other grids) (MU)
Where GENm,y is analogous to the variables described for the simple OM method above for plants in the
sample group m.
EF (BM,excluding imports 725.50 Calculated

of electricity from other
grids) (ton of CO2/MU)
There are some electricity transfers from the connected electricity systems (PTCIL, PGCIL, NTPC-
NVVN,WREB and SREB) to the KPTCL project electricity system.
Import % from National 22.86 Refer to the CER Calculation Sheet
Grid out of total
generation of the ‘m’
plants considered for BM
Calculation
Import % from WREB out 0.00 Refer to the CER Calculation Sheet
of total generation of the
‘m’ plants considered for
BM Calculation
Import % from SREB out 0.00 Refer to the CER Calculation Sheet
of total generation of the
‘m’ plants considered for
BM Calculation
The imports from various grids have been dealt with in a manner similar to that of the OM calculation. The
Emission Factor of the National Grid has been used as the emission factor for imports from PTCIL (Power
Trading Corporation of India Limited), PGCIL (Power Grid Corporation of India Limited) and NTPC-NVVN.
The Emission Factor of the Western Grid has been used as the emission factor for imports from WREB (Western
Regional Electricity Board).The Emission Factor of the Southern Grid has been used as the emission factor for
imports from SREB (Southern Regional Electricity Board).
EF (National Grid) 845 http://mnes.nic.in/baselinepdfs/chapter2.pdf
(ton ofCO2/MU) (EF of National Grid has been considered)
EF (WREB) 910 http://mnes.nic.in/baselinepdfs/chapter2.pdf
(ton ofCO2/MU) (EF of Western Grid has been considered)
EF (SREB) 757 http://mnes.nic.in/baselinepdfs/chapter2.pdf
(ton ofCO2/MU) (EF of Southern Grid has been considered)
EFBM,y is then calculated as the weighted average of the EF (excluding electricity imports from other grids), EF
(National Grid), EF (WREB) and EF (SREB).
Imports from NTPC- 1517.62 Refer to Table 3-5 Power Generation Data for Calculation of Built
NVVN, PTCIL and PGCIL Margin of Annex 3-Baseline Information.
(MU)
Imports from WREB (MU) 0.00 Refer to Table 3-5 Power Generation Data for Calculation of Built
Margin of Annex 3-Baseline Information.
Imports from SREB (MU) 0.00 Refer to Table 3-5 Power Generation Data for Calculation of Built
Margin of Annex 3-Baseline Information.
752.81 Calculated
BM, EFBM,y (ton of
CO2/MU)
STEP 3. Calculate the Electricity Baseline Emission Factor (EFelectricity, y)

As per Step 3 the baseline emission factor EFelectricity, y is calculated as the weighted average of the
Operating Margin emission factor (EFOM,y) and the Build Margin emission factor (EFBM,y), where the
weights wOM and wBM, by default, are 50% (i.e., wOM = wBM = 0.5), and EFOM,y and EFBM,y are
calculated as described in Steps 1 and 2 above and are expressed in tCO2/MU.
The most recent 3-years average of the Simple OM and the BM of the base year i.e. 2003-2004 are
considered. This is presented in the table below.
Table B-4: Data used for Baseline Emission Factor
Parameters Values Remarks
(ton of CO2/MU)
Simple OM, EFOM,simple 911.75 Average of most recent 3-years values

BM, EFBM,y (ton of CO2/MU) 752.81 Value of the base year i.e. 2003-2004
Baseline Emission Factor, EFy 832.28
Baseline emissions due to displacement of electricity by KHEP project activity
Baseline emissions (BEy in tCO2) due to displacement of grid-electricity are the product of the
Baseline Emissions Factor (EF,y in tCO2/MU) calculated in Step 3, times the electricity supplied by
the KHEP project activity to the grid (EGy in MU), over the crediting period as given below.
BEy = EGy . EFy
Electricity generation from the KHEP project activity
The total power generated by the KHEP project activity during the crediting period is based on the
power plant’s capacity, the plant’s annual water availability, available head and operating days of
power generation from the project activity per year.
The plant is restricted to operate for 90 days with full load in a year. In order to avail the occasional
discharge other than in the monsoon season, the plant is designed to operate at around 20% of the
rated load. The KHEP project activity proposes to export 54.03 million units of electricity per annum
to the grid. Therefore, a conventional energy equivalent of 540.3 million units for a period of 10
years would be conserved by the project activity and this electrical energy will displace an equivalent
amount of electricity that would be generated by the KPTCL grid mix. Without KHEP project
activity, the same energy load would have been taken up by power plants of the project electricity
system – KPTCL and an equivalent CO2 emissions would have been occurred due to fossil fuel
combustion.
Project Emissions:
As per the ACM0002 there are no project related emissions.
Leakage:
As per the ACM0002 the main emissions potentially giving rise to leakage in the context of electric
sector projects are emissions arising due to activities such as power plant construction, fuel handling
(extraction, processing, and transport), and land inundation (for hydroelectric projects). Project
participants do not need to consider these emission sources as leakage in applying this methodology.
Therefore SKPCL has not taken leakage into consideration. Neither have they claimed any credits
for the KHEP project activity on account of reducing these emissions below the level of the baseline
scenario.
Emission Reductions:
The KHEP project activity reduces carbon dioxide through displacement of grid electricity
generation with fossil fuel based power plants by renewable-hydro electricity. The emission
reduction ERy due to KHEP project activity during a given year y is calculated as the difference
between baseline emissions (BEy), project emissions (PEy) and emissions due to leakage (Ly), as per
the formulae given below:
ERy = BEy – PEy - Ly

where the
BEy = Baseline emissions (Please refer to ‘Baseline emissions due to displacement of electricity’ as
given above)
PEy = Project emissions; PEy = 0 for KHEP project activity.

Ly = Emissions due to Leakage. Ly = 0 for KHEP project activity.
The total net emission reductions achieved from the project activity is presented in Section E.5 & E.6
of this PDD.
B.3. 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:
>>
The KHEP project activity is a “hydro power project with existing reservoir where the volume of the
reservoir is not increased connected to an electricity grid”. It is a renewable energy based power
project (with a net CO2 emission factor of 0 ton CO2/MU) that exports power to the KPTCL grid.
The power generated from KHEP project activity displaces electricity that would have been
generated by the operation of the mix of hydro, nuclear and fossil fuel grid-connected power plants
in the Karnataka state (with a CO2 emission factor of 832.28 ton CO2/MU, calculated as per the
guidance in ACM0002/Version 01) in absence of the KHEP project activity.
As per the decision 17/cp.7 para 43, a CDM project activity is additional if anthropogenic emissions
of greenhouse gases by sources are reduced below those that would have occurred in the absence of
the registered CDM project activity.
As per the selected methodology ACM0002, the project proponent is required to establish that the
GHG reductions due to project activity are additional to those that would have occurred in absence
of the KHEP project activity as per the ‘Tool for the demonstration and assessment of additionality’
Annex-1 to EB 16 Report. Additionality of project activity as described in the selected methodology
(ACM0002) is discussed further.
The flowchart presented in below provides a step-by-step approach to establishing additionality of

the project activity.
SKPCL demonstrates KHEP project activity additionality as follows
Step 0 - Management Decision for implementing the project activity
SKPCL wishes to have the crediting period starting prior to the registration of their project activity.
SKPCL is required to
a) Provide evidence that the starting date of the CDM project activity falls between 1 January
2000 and the date of the registration of a first CDM project activity, bearing in mind that
only CDM project activities submitted for registration before 31 December 2005 may claim
for a crediting period starting before the date of registration;
The SKPCL’s KHEP project activity was commissioned on 24 June, 2003, which falls between 1
January 2000 and the date of the registration of a first CDM project activity which is18th November
20046. SKPCL would provide evidences to establish the same.
SKPCL has prepared all documentation necessary for registration of the CDM project activity in line
with ACM0002 and proposes to get the KHEP project activity registered with UNFCCC before
December 31, 2005.
b) Provide evidence that the incentive from the CDM was seriously considered in the decision
to proceed with the project activity.
SKPCL was aware that the KHEP project activity is a GHG Abatement project, which could avail
financial benefits under CDM if the project activity was found to be additional wherein the
anthropogenic emission of greenhouse gases by sources are reduced below those that would have
occurred in absence of the registered CDM project.
SKPCL learnt of KPTCL’s proposition to reduce the power tariff rate much below that proposed in
the Power Purchase Agreement that was signed between KPTCL and SKPCL for sale of power. The
execution team prepared the revised KHEP project activity proposal, which was re-submitted to the
top management of KHEP in December 2002. All aspects of the project activity were discussed. The
discussions revolved around the financial implications of the revised power tariff rate on the
implementation of the project activity and the financial losses SKPCL would need to borne by
commissioning the KHEP project activity. One other major point of the discussion was the quantum
of emission reductions the KHEP project activity would generate and the financial benefits the
KHEP project activity could attain under CDM. In order to arrive at the decision to proceed with the
implementation of the project activity, SKPCL management conducted the investment analysis with
the CDM revenue estimates as one of the cash in flows that would be made available after sale of the
emission reductions. With the CDM revenue as one of the annual cash inflows, the KHEP project
activity would be financially attractive for the SKPCL management. The SKPCL management also
noted that the CDM revenue computations were based on rough estimates. On these basis, the
SKPCL’s top management decided to recommend the project activity to the Board of Directors for
approval. The KHEP project activity papers were enclosed along with the Board Agenda for the
Board Meeting conducted on 26th December 2002. The KHEP project activity received approval and
the approval was documented in the Minutes of the Board Meeting. SKPCL chose their project
consultants in India to guide them through the KHEP project activity registration process and
facilitate the transaction of CERs.
6
Reference: http://cdm.unfccc.int/Projects/registered.html
Step 1. Identification of alternatives to the project activity consistent with current laws and
regulations
In sub-step 1a and 1b, SKPCL is required to identify realistic and credible alternative(s) that were
available to SKPCL or similar project developers that provide output or services comparable with the
KHEP project activity. These alternatives are required to be in compliance with all applicable legal
and regulatory requirements.
SKPCL identified the different potential alternative(s) to KHEP project activity.
The following paragraphs illustrate the alternatives
SPML is in the business of constructing water pumping stations for various government undertakings
and municipal corporations and laying of cross country water pipelines for the government agencies.
The company proposed to diversify into construction of renewable energy generation through mini
hydel-power plants to utilise the expertise they had developed water management. SKPCL
management wanted to explore the provision of implementing a hydropower project on the existing
irrigation dam on the River Kabini.
Alternative 1- Implementation of the KHEP project activity not undertaken as a CDM project
activity;
In this alternative, KHEP project activity is connected to the KPTCL grid and therefore it displaces
an equivalent amount of electricity of the grid mix of KPTCL.
Since the KHEP project activity has no project emissions this alternative would not generate carbon
dioxide. This alternative is in compliance with all applicable legal and regulatory requirements and
may be a part of the baseline.
SKPCL may implement KHEP project activity to generate and sell power to KPTCL. This
alternative may be a part of the baseline. However as per the investment analysis this alternative is
financially less attractive as compared to the Weighted Average Cost of Capital (WACC) of the
project activity, which was computed based on the investors’ required return on capital. Details of
the investment analysis have been conducted as per Step 2: Investment analysis of the “Tool for the
demonstration and assessment of additionality”.
In absence of KHEP project activity, SKPCL management did not propose to undertake any other
project alternatives like coal-fired power station or wind energy power station since SPML had no
background and expertise in implementing coal-fired or wind energy based power station. Therefore
the only other alternative available is Alternative 2.
Alternative 2- No KHEP project activity; Continuation of current situation
In this alternative, KHEP project activity is not implemented resulting in the continued current grid
mix of KPTCL. There is no displacement of electricity of the grid mix of KPTCL.
In Alternative 2 i.e. in absence of KHEP project activity, an equivalent amount of electricity would
be generated by the power plants comprising the KPTCL grid mix. An equivalent amount of carbon
dioxide would be generated at the thermal power generation end. This alternative is in compliance
with all applicable legal and regulatory requirements and may be a part of the baseline. This scenario
was the status quo of the existing facility before CDM project implementation.
Step 2 Investment analysis OR Step 3 Barrier analysis
SKPCL proceeds to establish KHEP project activity additionality by conducting the Step 2:
Investment Analysis as per ACM0002.
To conduct the investment analysis, SKPCL is required to use the following sub-steps:
Sub-step 2a Determine appropriate analysis method

The KHEP project activity exports electricity to KPTCL as per the Power Purchase Agreement dated
20.08.2001. One of the revenue streams of the KHEP project activity is through sale of electricity to
KPTCL. Therefore Option I – Simple cost analysis would not be an appropriate analysis method.
Amongst the other two options – investment comparison analysis (Option II) and benchmark
analysis (Option III) SKPCL has adopted the benchmark analysis wherein the weighted average cost
of capital (WACC) of the KHEP project activity serves as a benchmark to assess the financial
attractiveness of the project activity. Option III assesses if the project’s returns are sufficient for
SKPCL and other investors to make the initial investment and further bear the associated costs of
successfully operating the KHEP project activity over the crediting period of the project.
Sub-step 2b – Option III. Apply benchmark analysis
The KHEP project activity has a high initial capital cost with no high capital investment for the
alternative 2 - the continuation of the current situation of the KPTCL grid mix. SKPCL conducted an
investment analysis of the KHEP project activity with the Internal Rate of Return as the financial
indicator. ‘Internal Rate of Return’ is one of the known financial indicators used by banks, financial
institutions and project developers for making investment decisions.
SKPCL calculated the KHEP project activity’s internal rate of return (IRR) and compared it with the
WACC of the KHEP project activity.
Since SKPCL had to use several sources in order to raise capital necessary to implement the KHEP
project activity, and each of these sources expected different returns, the WACC was calculated as a
weighted average of the different returns to be paid to these sources. The 15.846% WACC of the
KHEP project activity was based on the capital investment and the rate of return of each of the
investors.
Sub-step 2c – Calculation and comparison of financial indicators

The financial internal rate of return of the KHEP project activity without CDM revenues is 10.8 %
which much lower than the 15.846% weighted average cost of capital for the KHEP project activity
as required by the investors.
The financial internal rate of return of the KHEP project activity without CDM revenues was
calculated based on the following aspects
1. Annual export to KPTCL - 54.03 mu
2. Power tariff rate of KPTCL – INR 3/- per unit with an annual escalation rate of 2%.
3. IRR is computed from the year 2003-2013. The 2003-2013 period has been selected based
on the validity of the Power Purchase Agreement between KPTCL and SKPCL.
The internal rate of return of the KHEP project activity with CDM revenues is 13.05%. Therefore the
project activity would only be financially viable if the project activity attains CDM revenue through
sale of the emission reductions.
The financial internal rate of return of the KHEP project activity with CDM revenues was calculated
based on the following aspects
2. Power tariff rate of KPTCL – INR 3/- per unit with an annual escalation rate of 2%.
3. Annual CER generated – 40,000
4. Exchange rate - 1EURO equivalent to INR 56/-
5. Conservative CER price per ton of CO2 equivalent.
All financial data used to arrive at the internal rate of return of the KHEP project activity with and
without CDM revenues would be provided to the DOE in the process of Validation.
Sub-step 2d. Sensitivity analysis :

The KHEP project activity was found to be sensitive to the following factors –
2. OM Expenses
The sensitivity analysis was conducted for scenarios with variations in each one of the above-
mentioned factors and for scenarios with variations in all the above-mentioned factors
simultaneously in order to assess the financial attractiveness of the KHEP project activity under such
circumstances.
Sl Parameters Variation IRR % Change Comments

The financial internal rate of return of the KHEP project activity without CDM revenues
The IRR of the KHEP project
activity is still lower than the
WACC benchmark;
However the probability of a 10%
increase in annual export to
KPTCL is not probable. It is
unlikely that the hydrological
conditions that are available in the
KHEP project activity are able to
sustain a 10% increase in the
annual power generation.
Annual Export to +10% 14.29%
1. KPTCL The IRR of the KHEP project
activity is lower than the WACC
-10% 7.16%
benchmark.
2. OM Expenses +10% 10.18%
benchmark.
WACC benchmark. However it is
unlikely that the OM expenses are
reduced by 10% and this option
-10% 11.4%
may be discarded.
WACC benchmark; however the
probability of a 10% increase in
annual export to KPTCL and a
10% reduction in OM expenses is
not probable. It is unlikely that
- the hydrological conditions that
are available in the KHEP project
activity are able to sustain a 10%
increase in the annual power
1→+10% generation.
- the OM expenses are reduced by
4. Combinations 2→-10%; 14.88
10%.
1→-10% The IRR of the KHEP project
2→+10% 6.51%
benchmark.
The results of the sensitivity analysis conducted confirm that the financial internal rate of return of
the KHEP project activity without CDM revenues is much lower than the WACC benchmark for the
KHEP project activity as required by the investors, under circumstances which could bring about
variations in the critical factors used for the IRR computations in Step 2c.
Hence, the conclusion that the ‘KHEP project activity is financially non viable’ is robust to
reasonable variations in the critical assumption and the CDM revenue the KHEP project activity
would obtain through sale of the emission reductions is very crucial to sustain the operations of the
project activity.
Step 4. Common Practice Analysis
Step 4-a. Common Practice Analysis
From the Step 2 Investment Analysis, we may conclude that Alternative 2 (No KHEP project
activity; Continuation of current situation) is a status quo and does not have impediments that would
prevent its implementation. However the Alternative 1 (Implementation of the KHEP project activity
not undertaken as a CDM project activity) was found to be less financially attractive without CDM
revenue, which would prevent SKPCL from implementing the project activity as elaborated in the
step 2 ‘Investment Analysis’.
SKPCL is further required to conduct the common practice analysis as a credibility check to
complement the investment analysis (Step 2). SKPCL is required to identify and discuss the existing
common practice through the following sub-steps:
Sub-step 4a. Analyze other activities similar to the proposed project activity:
Karnataka, the eighth largest State in India, is situated on the western edge of the Deccan plateau.
The climate and physiography of the region make the state one of the most important in the country
with regard to water resources. Karnataka has a traditional irrigation system of impounding surface
flow by creating small earthern dams across streams, creeks and rivulets. The average annual yield of
the rivers of the Karnataka has been roughly estimated as 98406 m.cum. (3475 Tmc). There are 86
irrigations projects developed in Karnataka to utilize the irrigation potential of the estimated water
flow. There are only 9 irrigation projects to have utilized the rivers’ potential to generate and export
clean power to KPTCL through private sector participation. However it was further observed that
these irrigation projects developed through private sector participation were all based on irrigation
canal discharge. The KHEP project activity is not based on the irrigation canal discharge. Therefore
these 9 hydro projects are not similar to the KHEP project activity and have a different investment
climate. KHEP project activity is the first private sector project to be developed on an existing
irrigation dam and utilize surplus discharge of Kabini irrigation project for power generation.
Therefore out of 86 irrigation projects this is the only project activity to have been developed to
utilize surplus discharge to generate power through private participation. There has been no similar
project activity with a similar investment climate implemented previously or currently underway and
therefore the KHEP project activity is not a common practice.
Sub-step 4b. Discuss any similar options that are occurring:
Since there is no similar project activities with a similar investment climate implemented previously
or currently underway this sub-step is not applicable.
Step 5. Impact of CDM registration
The existing power tariff rate rendered the KHEP project activity financially unattractive. The KHEP
project activity’s returns were lower than the required rate of return of the investors. (Refer to
Investment Analysis). However with CDM revenue as one of the annual cash flows, expected after
approval and registration, the KHEP project activity’s financial viability would improve and the
adequacy of returns to the investors would be assured. Therefore SKPCL management took the
decision of taking the investment risks and secure financing partially from bank funding and partially
through internal accruals so as to invest in the CDM KHEP project activity after computing the
proposed carbon financing. Besides the direct financing risk, SKPCL is also shouldering the
additional transaction costs such as preparing documents, supporting CDM initiatives and
developing and maintaining Monitoring methodology to fulfill CDM requirements. SKPCL, is
shouldering a significant market or financial risk and taking a pro-active approach by showing
confidence in the Kyoto Protocol/CDM system.
SKPCL’s decision to invest
in the CDM project activity

in additional transaction costs such as preparing documents, supporting CDM initiatives and
developing and maintaining M&V protocol to fulfil CDM requirements
was guided solely by the anthropogenic greenhouse gas emission reductions the project activity
would result in and its associated carbon financing the project activity would receive through sale of
CERs under the Clean Development Mechanism . The revenue from the CDM funds proves to be
vital to project’s feasibility and significantly improve the sustainability of the KHEP project activity.
B.4. Description of how the definition of the project boundary related to the baseline
methodology selected is applied to the project activity:
>As per the definition of project boundary of ACM0002, the spatial extent of the project boundary
includes the project site and all power plants connected physically to the electricity system that the
CDM project power plant (KHEP) is connected to.
Project Site
KHEP project activity boundary covers the point of water supply (penstock entry/ reservoir water
level) to the point of power generation and export to the grid, where SKPCL has a full control. Thus,
the project boundary includes the reservoir level over the intake, penstock, flow control valves,
turbine, generator, control systems, auxiliary consumption units, synchroniser and the power
evacuation system at the project activity site. The KHEP project activity evacuates the power to the
state grid. Therefore, those power plants contributing to the Karnataka state grid are taken in the
connected (project) electricity system for calculation of baseline emission.
Connected (Project) electricity system - Power plants connected to the electricity system
For the purpose of determining the Built Margin (BM) and Operating Margin (OM) emission factor,
as per ACM0002, a (regional) connected electricity system is defined by the spatial extent of the
power plants that can be dispatched without significant transmission constraints.
Indian power grid system is divided into five regions namely Northern, North Eastern, Eastern, and
Southern and Western Regions. The Southern Region consists of Andhra Pradesh, Karnataka,
Kerala, Tamil Nadu, Pondicherry and Lakshadweep. Each state has their own power generation
plants (State Government owned) managed by respective State Electricity Boards / Corporations.
KHEP project activity is connected to the Karnataka state grid (KPTCL). KPTCL is the selected
project electricity system due to following reasons:
(a) KPTCL by themselves decides on the amount of demand to be catered, the amount of
energy to be produced and purchased, the source of power, the cost of electricity (purchase and
selling price), net power cuts and subsequently the generation mix and may therefore be considered
as an isolated system boundary. These decisions are independent as long as the state grid maintains
the ‘grid discipline’. This grid mix is entirely managed by the KPTCL.
(b) Further the KHEP project activity is too small to have a significant impact on the
national grid or regional grid in terms marginally effecting changes in the generation and dispatch
system (operating margin) or delay future power projects that may be commissioned during the
crediting period (build margin) in the national or northern regional grid. The project activity, a 20
MW hydro power plant, is 0.018% of national grid capacity (107,877 MW) and 0.069% of the
northern region’s grid capacity (28,750 MW) and 0.38 % of state grid capacity (5,196.77 MW) as on
31st March, 2003. Therefore, the principal effect of the project activity would be on the lowest level
of the grid i.e. the carbon intensity of the Karnataka state grid.
(c) The Karnataka state grid is the most realistic choice of the grid for the KHEP project
activity also because the power generated in this region is dispatched in their jurisdiction without
significant transmission constraints. Karnataka state grid (KPTCL) is power deficit. However the
historical and actual records of KPTCL suggests that the electricity imports power from other states
to KPTCL grid are much less than 20% of the total electricity, hence, the grid acts as an island with
less influence from power generated by other states. The inter-grid transmission of electricity is
restricted due to poor transmission and distribution infrastructure. Due to poor infrastructural support
inter-regional and inter-state grid transmission of power is limited and Karnataka state may be
treated as an isolated grid.
The Current Delivery System of Karnataka is demonstrated below in Figure 1.
Figure 1 Flow Chart of Current Delivery System of Karnataka
Electricity Import from Electricity Imports from

Central Sector Other Grids
NTPC-NVVN,
Nuclear Thermal PTCIL, PGCIL WREB SREB
(National Grid)
Independent Power
VVNL Producers
(Hydro/ Diesel based (Coal/Gas/ Diesel based
power projects) power projects)
KPCL KPTCL Independent Power

Producers
(Hydro Projects) (Mini-Hydel, Wind,
Biomass &
Cogeneration based
KPCL power project)
(Coal based project)
KHEP
Project
Activity
END USERS
In Karnataka, power transmission is managed by Karnataka Power Transmssion Corp. Limited

(KPTCL), Banglore. State Government’s thermal power generation plants are managed by the state
authority Karnataka Power Corporation Ltd. (KPCL) and Vishveswaraya Vidyuth Nigama Limited
(VVNL). Karnataka Power Corporation Ltd. (KPCL) is a wholly owned Government of Karnataka
undertaking, entrusted with the responsibility of construction, operation and maintenance of power
projects in the State of Karnataka for the last three decades. VVNL owns and operates the thermal
and hydel power stations in Karnataka which were commissioned by erstwhile Karnataka Electricity
Board between 1956 and 1999.
In addition to the state govt. owned power generation plants, there are private owned power
generation plants exporting power to KPTCL and central government (government of India) owned
power generation plants managed by Government of India Enterprises like National Thermal Power
Corporation Ltd., Nuclear Power Corporation Ltd., National Hydro Electric Power Corporation Ltd.
etc. Power generated by all central generation units is being fed to the grid (Southern Grid), which is
accessible to all states forming part of the southern grid. Power mix may be thermal, hydro, wind,
nuclear. In India, nuclear power generation is allowed only by central sector organisations.
Power generated by state owned generation units and private owned generation units would be
consumed totally by respective states. But the power generated by central sector generation plants
will be shared by all states forming part of the grid in fixed proportion.
For calculations of baseline, the individual power plants of KPTCL are taken under project
electricity system boundary.
Since the (fixed) central sector shares are electricity transfers from connected electricity systems to
the project electricity system they are defined as electricity imports. As per the ACM0002, emission
factor of the exporting grid, is to be calculated as per Step 1, 2, and 3 if the imports exceed 20% of
the total generation in the project electricity system. The central sector power plants contributing to
the central share power generation of Karnataka state grid, which may be defined as electricity
imports are 25.64% of the total generation for 2003-2004. Therefore these electricity imports have
been considered as a part of project electricity system boundary and the emission factor of the
baseline is calculated as per Step 1, 2 and 3.
There are some electricity transfers from NTPC-NVVN, PTCIL, PGCIL, WREB and SREB.
However, their contributions to the grid mix of KPTCL are as low as 7.61% of the total generation
for 2003-2004. As per the ACM0002, emission factor of the exporting grid is to be calculated as the
average emission rate of the exporting grid, if and only if the net imports do not exceed 20% of the
total generation in the project electricity system. Therefore these electricity imports have been
considered as a part of project electricity system boundary and the emission factor of the baseline is
calculated as the average emission rate of the National Grid, Western Region Grid and the Southern
Region grid.
B.5. Details of baseline information, including the date of completion of the baseline
study and the name of person (s)/entity (ies) determining the baseline:
>>
Please refer to section B2 in conjugation with Annex 3: Baseline Information. The final draft of this
baseline section was prepared by SKPCL along with the project consultants in April 2005.
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:

>>
December, 2002.
The SKPCL management approved the KHEP project activity in Dec, 2002. The KHEP project
commenced electricity production on 24 June 2003.
C.1.2. Expected operational lifetime of the project activity:
>> Life time of the project : 30 years
C.2 Choice of the crediting period and related information:
For the KHEP project activity, the preferred credit period opted is for 10 years.
C.2.1. Renewable crediting period
C.2.1.1. Starting date of the first crediting period:

>> NA
C.2.1.2. Length of the first crediting period:
>> NA
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:

>> 24th June, 2003
C.2.2.2. Length:
>> 10 years
SECTION D. Application of a monitoring methodology and plan
D.1. Name and reference of approved monitoring methodology applied to the project
activity:
>>
Title: Consolidated monitoring methodology for zero-emissions grid-connected electricity
generation from renewable sources
Reference: Approved consolidated monitoring methodology ACM0002/Version 01, Sectoral Scope:
1, 3 September 2004.
D.2. Justification of the choice of the methodology and why it is applicable to the project
activity:
>>
>> KHEP project activity meets the applicability criteria of the ‘Approved baseline
methodology ACM0002’. (Please refer to Section B.2. for details). The applicability criteria
of the ‘Approved monitoring methodology ACM0002’ are identical to those of the
‘Approved baseline methodology ACM0002’. Therefore SKPCL has used the ‘Approved
monitoring methodology ACM0002’ in conjugation with the ‘Approved baseline
methodology ACM0002’ for the KHEP project activity.
The ACM0002 methodology requires the project participant to monitor power generation
units exported to the grid. Since the KHEP project activity is a grid connected renewable
energy project, emission reduction quantity is dependent on the net units exported to the
grid, which will avoid generation of equivalent power by the carbon intensive KPTCL grid
mix. Therefore the KHEP project activity’s monitoring requirements are in line with the
‘Approved monitoring methodology ACM0002’,which is the most suitable monitoring
methodology applicable for the KHEP project activity.
D.2. 1. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario
Project emission associated to KHEP project activity is zero. Therefore this section is Not Applicable
D.2.1.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:
ID number Data Source of Data Measured Recording Proportio How will the Comment
(Please use variable data unit (m), frequency n of data data be
numbers to calculated (c) to be archived?
ease cross- or estimated monitored (electronic/
referencing (e) paper)
to D.3)
D.2.1.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2
equ.)
>>
This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.
D.2.1.3. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHGs within the project
boundary and how such data will be collected and archived :
ID number Data variable Source of data Data Measured Recording Proportio How will Comment
(Please use numbers unit (m), frequency n of data the data be
to ease cross- calculated to be archived?
referencing to table (c), monitored (electronic/
D.3) estimated paper)
(e),
1. EGy Electricity supplied to SKPCL MWh Directly Hourly 100% Electronic,
the grid by the KHEP records/ Measured measurement During the
project activity KPTCL and monthly crediting
records recording period and
two years
after
2. EFy CO2 emission factor KPTCL/CEA tCO2/ Calculated Yearly 100% Electronic, Calculated as
of the grid MWh During the weighted sum of
crediting OM and BM
period and emission factors as
two years per Step 3 of
after ACM0002
(e),
3. EFOM,,y CO2 operating margin KPTCL/CEA t CO2/ Calculated Yearly 100% Electronic, Calculated as Step 1
emission factor of the MWh During the of ACM0002
grid crediting
period and
two years
after
4. EFBM,y CO2 build margin KPTCL/CEA t CO2/ Calculated Yearly 100% Electronic Calculated as Step 2
emission factor of the MWh During the of ACM0002
grid crediting
period and
two years
after
(e),
5. Fi,j,y Amount of fossil fuel KPTCL/CEA tons Calculated Yearly 100% Electronic Calculated based on
i, consumed by each During the the Total power
power source/ plant in crediting generation, Average
year y period and Net Calorific Value
two years of the Fuel used and
after the Designed
Station Heat Rate
data of power
plants of KPTCL
grid
(e),
6. COEFi, CO2 emission factor IPCC/local t CO2 / Standard Yearly 100% Electronic, Calculated based on
of each fuel type i, ton of /Calculated During the the IPCC default
fuel crediting value of the
period and Emission Factor,
two years Net Calorific Value
after and Oxidation
Factor of the Fuel
used by the power
plants of KPTCL
grid
7. GENj,y Electricity delivered KPTCL/CEA MWh/ Measured Yearly 100% Electronic, Obtained from
to the grid by power annum During the authentic and latest
source j in year y crediting local statistics.
period and
two years
after
(e),
8. Plant Name Power Text estimated Yearly 100% of Electronic,
Source/plant set of During the
‘j’of KPTCL plants crediting
for the OM period and
two years
after
9. Plant Name Power Text estimated Yearly 100% of Electronic,
Source/plant set of During the
of KPTCL for plants crediting
the BM period and
two years
after
10.GENj/k/l,yIMPORTS Electricity quantity Electricity kWh Measured Yearly 100% Electronic, Obtained from
imports to During the authentic and latest
KPTCL crediting local statistics.
period and
two years
after
(e),
11.COEFi,j,yIMPORTS Emission factor MNES/Other t CO2 / Standard Yearly 100% Electronic,
coefficient Government kWh /Calculated During the
data sources crediting
period and
two years
after
D.2.1.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emissions units of CO2
equ.)
>>
>>With reference to ACM0002, baseline emissions are estimated as under
Calculation of electricity baseline emission factor
An electricity baseline emission factor (EF,y) is calculated as a combined margin (CM), consisting of the combination of operating margin (OM) and
build margin (BM) factors according to the following three steps. Calculations for this combined margin must be based on data from an official
source (where available) and made publicly available.
STEP 1. Calculate the Operating Margin emission factor(s)
Out of four methods mentioned in the ACM0002, Simple OM approach has been chosen for calculations since in the KPTCL grid mix, the low-
cost/must run resources constitutes less than 50% of total grid generation. Simple OM factor is calculated as under.
EFOM,simple,y is calculated as the average of the most recent three years (2001-2002, 2002-2003 & 2003-2004) .
∑i, j
Fi , j , y x COEFi , j
EFOM , simple, y =
∑j
GEN j , y
where
COEFi,j y - Is the CO2 emission coefficient of fuel i (t CO2 / mass or volume unit of the fuel), calculated as given below and
GENj,y - Is the electricity (MWh) delivered to the grid by source j
Fi ,j, y - Is the amount of fuel i (in a mass or volume unit) consumed by relevant power sources j in year(s) y , calculated as given below
j -Refers to the power sources delivering electricity to the grid, not including low-operating cost and must-run power plants, and including
imports from the grid
The Fuel Consumption Fi ,j, y is obtained as

 ∑ GEN j, y ⊗ 860 

∑ Fi , j , y = 

j

NCVi ⊗ Ei , j 
i 
 
where
GENj,y - Is the electricity (MWh) delivered to the grid by source j
NCVi - Is the net calorific value (energy content) per mass or volume unit of a fuel i
Ei,j - Is the efficiency (%) of the power plants by source j
The CO2 emission coefficient COEFi is obtained as
COEF i = NCV i ⊗ EF CO 2 , i ⊗ OXID i
where
NCVi Is the net calorific value (energy content) per mass or volume unit of a fuel i
EFCO2,i Is the CO2 emission factor per unit of energy of the fuel i
OXIDi Is the oxidation factor of the fuel
STEP 2. Calculate the Build Margin emission factor (EFBM,y) as the generation-weighted average emission factor (t CO2/MWh) of a sample of power
plants m of KPTCL grid, as follows:
∑
i ,m
Fi ,m, y x COEFi ,m
EFBM , y =
∑
m
GEN m, y
where
Fi,m,y, COEFi,m and GENm,y - Are analogous to the variables described for the simple OM method above for plants m.
Considered calculations for the Build Margin emission factor EFBM,y which is updated annually ex post for the year in which actual project generation
and associated emissions reductions occur. The sample group m for the most recent year consists of the 20 (twenty) power plants that have been built
most recently, since it comprises of larger annual power generation. (Refer to Table 3-5 of Annex 3)
Further, power plant capacity additions registered as CDM project activities have been excluded from the sample group m of KPTCL grid mix.
STEP 3. Calculate the electricity baseline emission factor EFelectricity,y as the weighted average of the Operating Margin emission factor (EFOM,y) and
the Build Margin emission factor (EFBM,y):
EF y = W OM ⊗ EF OM , y ⊕ W BM ⊗ EF BM , y
where the weights wOM and wBM, by default, are 50% (i.e., wOM = wBM = 0.5), and EFOM,Simple,y and EFBM,y are calculated as described in Steps 1 and 2
above and are expressed in t CO2/MWh.
BE y = EFy x EGy
where
BEy - Are the baseline emissions due to displacement of electricity during the year y in tons of CO2
EGy - Is the electricity supplied to the grid by the KHEP project activity during the year y in MWh, and
EFy - Is the CO2 baseline emission factor for the electricity displaced due to the project activity in during the year y in tons CO2/MWh.
For this methodology, it is assumed that transmission and distribution losses in the electricity grid are not influenced significantly by the project activity.
They are therefore neglected.
D. 2.2. Option 2: Direct monitoring of emission reductions from the project activity (values should be consistent with those in section E).
Not Applicable
D.2.2.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:
ID number Data Source of Data Measured Recording Proportio How will the Comment
(Please use variable data unit (m), frequency n of data data be
numbers to calculated to be archived?
ease cross- (c), monitored (electronic/
referencing estimated (e), paper)
to table
D.3)
D.2.2.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2
equ.):
>>
D.2.3. Treatment of leakage in the monitoring plan
D.2.3.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project
activity
ID number Data Source of Measured Recording Proportio How will the Comment
Data
(Please use variable data (m), frequency n of data data be
unit
numbers to calculated (c) to be archived?
ease cross- or estimated monitored (electronic/
referencing (e) paper)
to table
D.3)
D.2.3.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)
There are no emission sources as leakage in the KHEP project activity. Further, the methodology ACM0002 too requires the project participants not to
consider emission sources as leakage. Therefore this section is Not Applicable
D.2.4. Description of formulae used to estimate emission reductions for the project activity (for each gas, source, formulae/algorithm,
emissions units of CO2 equ.)
>>
Formula used for estimation of the total net emission reductions due to the KHEP project activity during a given year y is as under.
ER y = BE y − PE y − L y where
ERy - Are the emissions reductions of the project activity during the year y in tons of CO2
BEy - Are the baseline emissions due to displacement of electricity during the year y in tons of CO2
PEy - Are the project emissions associated with KHEP
Ly - Are the emissions sources as leakage
D.3. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored
Data Uncertainty level of Explain QA/QC procedures planned for these data, or why such procedures are not
(Indicate table and ID number e.g. 3.-1.; data necessary.
3.2.) (High/Medium/Low)
Baseline Emissions
1. EGy - Electricity supplied to the grid by Low Electricity meters are properly maintained with regular testing and calibration
the KHEP project activity schedules developed as per the technical specification requirements to ensure accuracy.
Low This is calculated based on the parameters 3. EFOM,y and 4. EFBM,y.
2. EFy - CO2 emission factor of the
grid
3. EFOM,y - CO2 operating margin emission Low This is calculated based on the parameters 5. Fi,j,y , 6. COEFi,j,y and 7. GENj,y..
factor of the grid
4. EFBM,y - CO2 build margin emission Low This is calculated based on the parameters 5. Fi,m,y , 6. COEFi,m,,y and 7.
factor of the grid GENm,,y..
5. Fi,j,y / Fi,m,y - Amount of fossil fuel i, Low This is calculated based on the parameters 2. NCVi, 6. Ei,j/Ei,m and 7. GENm,,y..
consumed by each power source/ plant in
year y
6. COEFi,j,y / COEFi,m,y - CO2 emission Low Please refer to point 3.

factor of each fuel type i,
7. GENj,y / GENm,y - Electricity delivered to Low This is based on authentic grid data.
the grid by power source j/m in year y
8. Plant name - Power Source/plant ‘j’of Low This is based on authentic grid data.
KPTCL for the OM
9. Plant name - Power Source/plant of Low This is based on authentic grid data.
KPTCL for the BM
10.GENj/k/l,yIMPORTS - Electricity imports to Low This is based on authentic grid data.
KPTCL
11.COEFi,j,yIMPORTS - Emission factor Low This is based on authentic government data.
coefficient for imports
D.4 Please describe the operational and management structure that the project operator will implement in order to monitor emission reductions
and any leakage effects, generated by the project activity
>>
SKPCL has implemented an operational and management structure in order to monitor emission reductions and any leakage effects, generated by the KHEP
project activity.
SKPCL has formed a CDM team/committee comprising of persons from relevant departments, which will be responsible for monitoring of all the parameters
mentioned in this section. The CDM team also comprises of a special group of operators who are assigned the responsibility of monitoring of different
parameters and record keeping as per the monitoring plan (ref. Annex 4). On a weekly basis, the monitoring reports are checked and discussed by the seniors
CDM team members/managers. In case of any irregularity observed by any of the CDM team member, it is informed to the concerned person for necessary
actions. On monthly basis, these reports are forwarded at the management level.
D.5 Name of person/entity determining the monitoring methodology:

>>
>> SKPCL along with guidance from the project consultants.
SECTION E. Estimation of GHG emissions by sources
E.1. Estimate of GHG emissions by sources:

>>
There are no project emissions in the KHEP project activity. PEy = 0
E.2. Estimated leakage:

>>
The main emissions potentially giving rise to leakage in the context of hydro electric sector projects
are emissions arising due to activities such as power plant construction. As per the methodology
ACM0002, project participants do not need to consider these emission sources as leakage in applying
this methodology. Therefore no emissions related to leakage have been considered in the KHEP
project activity.
E.3. The sum of E.1 and E.2 representing the project activity emissions:
>>
>> Total KHEP project activity emissions are zero over a 10 year credit period.
E.4. Estimated anthropogenic emissions by sources of greenhouse gases of the baseline:

>>
Sl. No. Operating Years Baseline Emission Factor Baseline Emissions
(tCO2 / MU) (tCO2)
1. . June, 2003 – March, 2004 832.28 33726
2. . April, 2004 – March, 2005 832.28 44968
3. . April, 2005 – March, 2006 832.28 44968
4. . April, 2006 – March, 2007 832.28 44968
5. . April, 2007 – March, 2008 832.28 44968
6. . April, 2008 – March, 2009 832.28 44968
7. . April, 2009 – March, 2010 832.28 44968
8. . April, 2010 – March, 2011 832.28 44968
9. April, 2011 – March, 2012 832.28 44968
10. April, 2012 – March, 2013 832.28 44968
11. April, 2013 - May, 2013 832.28 11242
E.5. Difference between E.4 and E.3 representing the emission reductions of the project
activity:
>>
Sl. Operating Baseline Project CO2 Emission Reductions

No. Years Emissions Emissions (tCO2)
(tCO2) (tCO2)
1. June, 2003 – March, 2004 33726 0 33726
2. April, 2004 – March, 2005 44968 0 44968
3. April, 2005 – March, 2006 44968 0 44968
4. April, 2006 – March, 2007 44968 0 44968
5. April, 2007 – March, 2008 44968 0 44968
6. April, 2008 – March, 2009 44968 0 44968
7. April, 2009 – March, 2010 44968 0 44968
8. April, 2010 – March, 2011 44968 0 44968
9. April, 2011 – March, 2012 44968 0 44968
10. April, 2012 – March, 2013 44968 0 44968
11. April, 2013 - May, 2013 11242 0 11242
Total Estimated Emission Reductions: 4,49,682 over 10 year crediting period.
E.6. Table providing values obtained when applying formulae above:

>>
Please refer to Enclosure – I and Enclosure II
SECTION F. Environmental impacts
F.1. Documentation on the analysis of the environmental impacts, including transboundary

impacts:
>>
The Ministry of Environment and Forests (MoEF), Government of India has under the Environmental
(Protection) Act 1986 promulgated a notification on 27 January 1994 (amended on 04/05/1994,
10/04/1997, 27/1/2000 and 13/12/2000) making environmental clearance mandatory for expansion or
modernisation of any activity or for setting up new projects listed in Schedule I of the notification.
EIA clearance is required from the central government, for 29 categories of industries of which river
valley projects including hydel power is category 1. Karnataka Power Corporation Limited (KPCL),
the first licencing holder, have conducted a comprehensive EIA study for the KHEP Project and
received the clearance from MoEF. The project proponent, SKPCL, has also carried out a separate
EIA study by Institute for Catchments Studies and Environmental Management, Bangalore, India.
Detail of site and surroundings of the Project
The KHEP project has been developed beside the existing Kabini Dam constructed for irrigation
purposes serving the areas covered under the villages of Bidrahalli and Becchanahalli of
Heggadadevena Kote Taluk of the Mysore District, Karnataka State. The major construction in any
Hydel power project is the construction of dam, which already exists from the year 1975. Hence, the
KHEP project activity did not require any major construction work, which required any resettlement
and rehabilitation of population. There has been no disturbance to any natural set-up nor was there any
additional submergence of land caused. Moreover the site is not prone to earthquakes.
The land on which construction was carried out is composed of granite and gneiss rock therefore there
was no possibility of the area experiencing any induced seismicity.
The KHEP project contemplates to utilize only the surplus water available at dam site after meeting
the irrigational needs. Surplus water varying from 50 (m3/s) to 170 (m3/s) and head varying from
minimum of 13.38 m on to maximum of 21.94 m is available over the year. The water for power
generation would be released generally after the water level at dam site has crossed the mark of 21.80
m. Therefore, it is clear that the primary purpose of the dam is to harness water for irrigation and
when surplus water is available power would be generated.
The site neither covers any forest area nor any further evacuation of trees or vegetation was required
for construction purposes. The EIA study reveals that there are no rare, threatened, endangered or
migratory fishes available in the river stretch of the KHEP project site. So far no endangered species
of birds or animal has been noticed at the KHEP project site. The EIA expert’s reports summarises the
KHEP project site to be fit for Hydropower generation and there will be no adverse environmental
impact due to diversion of surplus water from the reservoir and again back to the river below.
F.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 comprehensive EIA study addressed all the parameters of environmental assessment study as per
Environmental (Protection) Act 1986 guidelines. The EIA team collected and analyzed various
seasonal data during the field visits to the KHEP project site, including information about ecological,
socio-economic impacts on the people living around the KHEP project area. The significant finding
and major Environmental Management Plans of the EIA conducted are detailed below.
The environmental impacts by the KHEP project activities were categorized into:
• Impact during construction phase
• Impact during operational phase
• Impact during maintenance phase
Construction phase
Activity: The construction activities of the KHEP project activity were to be undertaken mainly at the
toe of the existing Kabini Dam. The Kabini Hydel scheme mainly involved construction of penstock,
powerhouse and tailrace channel along with outdoor yard.
Environmental Impacts Recommendations: Implementation:
The construction phase does not

include any significant negative
impact on the environment.
Since the construction activities Hence, soil conservation and

have been undertaken mainly at afforestation programme are not
the toe of the existing Kabini required to be assisted.
Dam there would be no
additional submergence of
forest or other lands are
involved in the KHEP project.
Also there is no rehabilitation of The colonies should be far away

population as there is no from the KHEP project site for
dislocation of population. The safety reasons.
colony that will be built up
during construction work is a
temporary arrangement and has
no significant effect on the
environment.
As far as possible, blasting had The civil engineers of Subhash

to be avoided as it causes Kabini Power Corporation
vibration of nearby construction Limited (SKPCL) adopted
leading to fractures. control blasting procedure under
supervision of National Institute
of Rock Minerals, NIRM-Kolar.
Disposal of unutilized The unutilized excavated

excavated materials had to done materials were dumped in
systematically terraces and contained between
toe walls, which are above the
highest flood level. In such
areas afforestation was also
being carried out with suitable
native plants.
Since all the construction had to

be at the toe of the dam, the
presences of aquatic life
demanded careful attention at
the time of excavation.
Operational phase
Activity: The KHEP project utilizes only the surplus water available after meeting the irrigational
requirement for which the dam has been constructed primarily. The power generation scheme does not
include any storage dam weir plan action. After generating electricity at the turbine end, the water
would be discharged into the river.
There is no effect on the However, precautions should be During construction of intake

physical or biological properties taken while diverting the water suitable screens have been
of the river-water. into the penstock in order to introduced at the upstream of
avoid any entry of aquatic life gate to avoid any entry of
into the project system and aquatic life and migratory fishes
causing deaths. moving into the downstream.
During the operation of turbines The best way to mitigate the

and generators, the noise would minimal noise is to plan four-
be almost minimal and no line greenery in the form of
radiant heat would be generated. hardy native plants with good
crown coverage that will act as

a buffer.
Socio-Economic Impacts Recommendations: Implementation:
The development of the KHEP

project would contribute to the
socio-economic and aesthetic
betterment of the local people
and also its surrounding areas.
There is no settlement of
residential areas near the KHEP
project site. The villages are at
distance away from the site;
therefore unusual health
problems will not be
encountered or is anticipated.
Maintenance phase
Activity: The KHEP project maintenance work would be carried out twice in a year.
Restoration of the abused sites

including dumping sites and
excavated areas should be
levelled with debris.
Till date, the power needs of the state are increasing by leaps and bounds. With hydro power and its
major benefits – it is renewable, it produces negligible amounts of greenhouse gases, and it can easily
adjust the amount of electricity produced to suit the grid demand - implementation of power scheme at
the toe of the existing dam becomes an essential feature to ameliorate the state’s economy and support
electricity deficiency in an environment friendly manner.
SECTION G. Stakeholders’ comments

>>
G.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
SKPCL identified the people, groups and organisations that were interested or have got involved with
the KHEP project implementation as stakeholder. SKPCL sent a communication to all the identified
stakeholders about the KHEP project activity. They conducted open consultation where all the
stakeholders were given an opportunity to present their views and opinions regarding the KHEP
project. All these consultation processes were aimed at
transparency
accountability
flexibility
increased stakeholder awareness of project related issues
broad stakeholder input and involvement
efficiency and effectiveness
promotion of stakeholder confidence
understanding of stakeholder perspectives.
Identification of Stakeholders
The stakeholders identified for the KHEP project are as under.
Elected body of representatives administering the local area (village Panchayat)
Karnataka Power Transmission Corporation Limited (KPTCL)
Karnataka Electricity Regulatory Commission (KERC)
Karnataka Renewable Energy Development Agency (KREDA)
Karnataka Pollution Control Board (KPCB)
Ministry of Environment & Forest (MoEF), Government of India
Ministry of Non Conventional Energy Sources (MNES)
Non-Governmental Organisations (NGOs)
Consultants
Equipment Suppliers
Stakeholders list includes various government and non-government parties, which are involved with
the KHEP project activity at various stages of its implementation.
SKPCL’s took into consideration the following aspects during the stakeholder consultation process:
The information was provided to all the stakeholders in manner they clearly understand who is
consulting and why, the way in which decisions would be made (and by whom) and the type
of consultation to be undertaken.
SKPCL communicated to the relevant stakeholders their plan to implement the KHEP project.
Representatives of SKPCL approached the Village Panchayat and the NGOs seeking for their
comments and supports for the KHEP project.
Targeted consultation was conducted as felt appropriate
Applications for getting necessary clearances and approvals for the KHEP project were also
sent to the above mentioned government organisations.
Comments from stakeholders were taken into consideration and was given due weightage in
the company’s course of action.
G.2. Summary of the comments received:

>>
Non-government parties
Elected Body of Representatives (village Panchayat)/ Local Populace
The village panchayat / local elected body of representatives administering the local area are a true
representative of the local population in a democracy like India. Hence, their consents / permissions to
set the KHEP project were necessary. SKPCL has completed the necessary consultation and
documented their approval for the KHEP project.
Local population comprises of the local people in and around the KHEP project area. The roles of the
local people are as a beneficiary of the KHEP project. The construction of the KHEP project and
continuous operation included local manpower working at the plant site. Since, the KHEP project
provided good direct and indirect employment opportunities the local populace is encouraging and
providing complete support to the KHEP project.
The KHEP project does not require any major displacement of any local population. It is set up on an
existing dam necessary for irrigation. Further since, the distance between the electrical substation for
power evacuation and the plant is not very high, the installation of transmission lines would not create
any inconvenience to the local population. In addition, the local population is also an indirect
consumer of the power that is supplied from the KHEP plant. This is essentially because the power
sold to the grid is expected to improve the stability in the local electricity network.
Thus, the KHEP project would not cause any adverse social impacts on local population rather would
help them improve their quality of life. Therefore KHEP project received complete support from the
local populace.
Non-Governmental Organisations (NGOs), Consultants, Equipment Suppliers
Several Non-Governmental Organisations (NGOs) got involved with the KHEP project during various
stages of its implementation. They have provided complete support to the KHEP project activity.
Project consultants were involved in the KHEP project to take care of various pre contract and post
contract project related activities like preparation of Detailed Project Report (DPR), preparation of
basic and detailed engineering documents, preparation of tender documents, selection of vendors /
suppliers, supervision of project implementation, successful commissioning and trial runs.
SPML supplied the equipments as per the specifications delivered as scheduled and SKPCL
successfully commissioned the plant
Government parties
Karnataka Electricity Regulatory Commission (KERC), Karnataka Power Transmission Corporation
Limited (KPTCL) and Karnataka Renewable Energy Development Agency (KREDA),
Karnataka Electricity Regulatory Commission (KERC) is the state’s apex body of power with the
responsibility to regulate all aspects of the electricity sector in an objective, professional and
transparent manner, safeguard consumers’ interests and ensure reliable, least – cost power supply as a
basic input for the economic and social development of the state.
They have issued their consent for the installation of hydel power plant of 20 MW capacity under
section 21 (4) of Karnataka electricity reform act 1999 read with section 44 of the Indian Electricity
Supply Act 1948.
As an importer of the power, the KPTCL is a major stakeholder in the KHEP project activity. They
hold the key to the commercial success of the KHEP project. KPTCL has already cleared the KHEP
project and SKPCL has already signed Power Purchase Agreement (PPA) with KPTCL.
Karnataka Renewable Energy Development Agency (KREDA) is the agency which implements
policies in respect of non-conventional renewable power projects in the state of Karnataka. KHEP
project activity has received necessary consents from KREDA.
Karnataka Pollution Control Board (KPCB)
Karnataka Pollution Control Board (KPCB) and Environment Department of Government of

Karnataka have prescribed standards of environmental compliance and monitor the adherence to the
standards. The KHEP project received the No Objection Certificate (NOC) from KPCB for
commissioning of the plant. SKPCL has also received the Consent to Operate from KPCB.
Ministry of Non Conventional Energy Sources (MNES)
The government of India, through Ministry of Non-conventional Energy Sources (MNES), has been
promoting energy conservation, demand side management and renewable energy projects including
wind, small hydro and hydro / bio-mass power. SKPCL’s effort in implementing the hydro power
project is appreciated by them.
Designated National Authority - Ministry of Environment & Forest (MoEF), Government of India,
The Ministry of Environment & Forests is the Designated National Authority of India. The
government of India, through Ministry of Environment and Forests (MoEF) are encouraging project
participants to take up such Climate Change initiatives. SKPCL has submitted the Project Concept
Note and Project Design Document to the MoEF for Host Country Approval.
Stakeholders’ Comments
SKPCL has already received the all necessary approvals and consents from various authorities,
required for the KHEP project implementation like Karnataka Electricity Regulatory Commission,
Karnataka Power Corporation Limited.
G.3. Report on how due account was taken of any comments received:
>>
The SKPCL’s representatives met with the various stakeholders for appraisal and support. They were
commended for their voluntary action toward environmental development and energy efficiency
measures undertaken in this KHEP project activity involving generation of electricity by utilisation of
the mechanical energy of the surplus discharge of the existing Kabini Dam.
The relevant comments and important clauses mentioned in the KHEP project documents/clearances
like Detailed Project Report (DPR), environmental clearances, power purchase agreement, local
clearance were considered while preparation of CDM project development document.
The KHEP project activity has received positive comments from the non-government parties. Further,
SKPCL has complied with all the applicable conditions to KHEP project activity implementation
detailed in the consents and agreements.
As per UNFCCC requirement the PDD will be published at the validator’s web site for public
comments.
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Table-1-1: Project Proponent
Organization: Subhash Kabini Power Corporation Limited
Street/P.O.Box: Village:Pokhra, Tehsil: Heggadadvana; Dist: Mysore
Building: 8/2 Ulsoor Road Bangalore
City: Banglore
State/Region: Karnataka
Postfix/ZIP: 560 042
Country: India
Telephone: +91 80 25595515
FAX: +91 80 25595580
E-Mail: skpcl@spml.co.in
URL: www.subhashpower.com
Represented by:
Title: Finance Controller and Company Secretary
Salutation: Mr
Last Name: Subramanian
Middle Name: Ganapathy
First Name: S.
Department:
Mobile: -
Direct FAX:
Direct tel:
Personal E-Mail:
Table-1-2: Host Country

Organization: Climate Change Cell,
Ministry of Environment & Forest,
Government of India
Street/P.O.Box: Lodhi Road
Building: Paryavaran Bhawan, CGO Complex
City: New Delhi
State/Region: New Delhi
Postfix/ZIP: 110003
Country: India
Telephone: 011-24362252
FAX: 011 24363577
E-Mail: rksethi@menf.delhi.nic.in
URL:
Represented by:
Title: Director
Salutation: Mr.
Last Name: Sethi
Middle Name: K.
First Name: R.
Department: Climate Change
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail:
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
No public funding for this project.
ANNEX 3
BASELINE INFORMATION
The data of Table 3-1, 3-2, 3-3 and 3-4 given above are used for Simple OM emission factor
(EFOM,simple,y).
Table 3-1 : Power Generation Mix of Karnataka from State Generating Stations
Sl.No Installed
Name of Power Plant Fuel Net Generation in MU
. Capacity
(MW) 2001-02 2002-03 2003-04
A. State- Thermal7
1 RTPS-I to IV Coal 4x210 5922.03 6079.33 5911.48
2 RTPS-V & VI Coal 210 2253.07 3036.22 2999.46
3 RTPS-VII Coal 210 0 275.55 1504.33
4 Power Purchase-VVNL Diesel 745.971 684.976 523.783
Total- Thermal 8921.071 10076.076 10939.053
B State-Hydro8
1 Sharavathy Hydel 10x103.5 4155.68 2827.11 3261.49
2 Chakra Hydel 0 412.46 455.38
3 Linganamakki Hydel 2x27.5 175.77 111.23 126.93
4 Nagajhari Hydel 3x135+3x150 2393.18 1782.86 1700.84
5 Supa Hydel 2x50 387.9 250.31 234.5
6 Ghataprabha Hydel 2x16 72.47 57.79 63.01
7 Varahi Hydel 2x115 870.85 822.53 696.84
8 Mani Hydel 2x4.5 19.41 17.46 10.62
9 Bhadra Hydel 2x12+1x2 23.67 8.76 4.73
10 Kadra Hydel 3x50 282.55 228.69 214.73
11 Kalmala Hydel 1x0.4 0.13 0.05 0.12
12 Sirwar Hydel 1x1 0.22 0.78 0.17
13 Ganekal Hydel 1x0.35 0.49 0.14 0.07
14 Mallapur Hydel 2x4.5 28.34 0.76 8.46
15 Kodasali Hydel 274.82 213.63 212
3x40+4x60
16 Gerusoppa Hydel 408.25 309.63 355.38
17 Bhadra Right Bank Hydel 1x7.2+1x6 20.66 7.49 3.79
18 Kappadagudda Hydel 9x0.225+11x0.23 5.31 10.86 14.98
19 Almatti Dam Power House Hydel 0 0 0.45
20 Power Purchase-VVNL Hydro 215.749 250.234 191.347
Total- Hydro 9335.449 7312.774 7555.837
State Sector Total 18256.52 17388.85 18494.89
Data Source: KPTCL
7
Installed capacity as on 31st August'2004
8
Installed capacity as on 31st August'2004
Table 3-2 : Power Generation Mix of Karnataka from Independent Power Producers
Installed
Sl.No. Name of Power Plant Fuel Net Generation in MU
Capacity
(MW) 2001-02 2002-03 2003-04
A IPP9
1 Rayalseema Alkalies Diesel 27 189.08 61.8 41.63
2 TATA Electric Company Diesel 81 531.05 356.95 235.5
3 Taneer Bhavi Power Company Gas (Naptha) 220 943.57 1178.18 866.37
Total- IPP(Major) 1663.7 1596.93 1143.5
Data Source: KPTCL
Table 3-3 : Power Generation Mix of Karnataka from Private Generating Stations
Installed
Capacity
(MW) 2001-02 2002-03 2003-04
A IPP-Mini-Hydel
1 ITPL 2.37 1.38 0.66
2 EDCL 24.48 22.87 20.76
3 Murudeshwar Power Corporation Ltd. 48.54 37.91 37.17
4 Bhoruka Power Corporation Ltd. 27 27.3 23.59
5 Bhoruka Power (Shahapur) 0 0 2.86
6 S.M.I.O.R.E 28.46 11.98 4.45
7 Thungabhadra Steel Products 0.39 0.37 0.31
8 Amogha Power Projects 1.96 2.8 1.81
9 Atria Power Corporation Ltd. 21.34 79.29 54.46
10 Vijaylakshmi Hydro Power Ltd. 1.33 1.83
11 Moodatyagil Power Pvt. Ltd. 0.32 0.52
12 Maruthi Power (Kabini) 1.65
13 Maruthi Power (Hemabhathi) 0.5
14 Kalson Power Tech Ltd. 2.89
15 Graphite India Ltd. 1.31
16 Intrernational Power Corpn. Ltd. 3.32
Total- IPP(Mini-Hydel) 154.54 185.55 158.09
B IPP-Co-generation
1 Ugar Sugar Ltd. Bagasse 69.9 51.66 55.48
2 Shamanur Sugars Ltd. Bagasse 100.02 98.31 111.9
3 Shree Renuka Sugars Ltd. Bagasse 34.61 26.33 45.96
4 Bannari Amman Sugars Ltd. Bagasse 57.71 73.82 76.27
5 ICL Sugars Ltd. Bagasse 13.54 17.17 14.19
6 Prabhulingeshwara Sugars Bagasse 33.66 38.34 34.07
7 Dandeli Ferro Alloys Limited 4.45 3.57 0
8 Jamkhandi Sugars Limited 0.62 7.14 13.47
9 GEM Sugars 0 8.29 27.59
9
Installed capacity as on 31st March'2003
Installed
Capacity
(MW) 2001-02 2002-03 2003-04
10 Ryatsara Sahakari S.K.N 2.87 5.69 2.76
11 Devengare Sugar Co. Ltd. 0 0 1.67
Total- IPP(Co-Generation) 317.38 330.32 383.36
C IPP-Biomass
1 Mallavali Power Plant Rice Husk 13.11 21.78 26.47
Coffee Husk,
2 South India Paper Mills Rice Husk & 12.23 23.55 13.11
Copra Shells
3 Bhagarampur Solvets 3.22
4 R.K.Powergen 9.75
5 Samson Distillisers 0.43
Total- IPP(Biomass) 25.34 45.33 52.98
D IPP-Wind
1 Cepco Wind Farm 7.35 20.27 23.57
2 Topaz Wind Farm 0.93 1.86 2
3 Enercon Wind Farm 2.92 23.21 26.95
4 Prabhat Agri biotech Ltd. 1.08 1.05
5 Panarna Business Centre 0 1.24
6 Panarna Credit & Capital 0.66
7 Texmo Precision and Castings 0 2.87
8 Siddaganga Oil Extractions 0 2.86
9 Fiza Developers and Inner Trade 0.01 2.83
10 Suttatti Enterprise 0 2.48
11 Raja Magnetics Ltd. 0 1.11
12 VXL Systems-II 0.77
13 VXL Systems-I 0.77
14 Kamal Trading Company 0.72
15 Jindal Alluminium-1.9MW 3.23
16 Mayura Steels 0.75
17 Shilpa Medicare 0.64
18 Patel Shanti Steels 0.71
19 Balasaheb IJ Limited 0.69
20 Friends Associate Power Projects 0.74
21 Sharp Pumps (P) Ltd. 0.73
22 Rajnikanth Foundation 0.71
23 RSM Autokast Ltd. 1.49
24 Indan Energy Ltd. 1.48
25 MSPL Ltd. Phase-1 1.99
26 Savitha Chemicals 4.82
27 Elveety Industries 0.57
28 Jindal Alluminium-6.6MW 2.57 14.59
29 Ghodawat Pan Masala (Enercon) 11.83
30 Ghodawat Pan Masala-NH 9.46
Installed
Capacity
(MW) 2001-02 2002-03 2003-04
31 Sanjay D. Ghodawat 1.55
32 Shriram Transport Finance 8.73
33 Shriram City Union Finance 3.89
34 Shriram Investments 8.03
35 Texmo Industries EP2 4.51
36 Enercon-Karnataka 46.08
37 Lovely Fragrances 1.83
38 J.N.Investments 0.81
39 Reliance Energy Ltd. 0.89 19.08 20.08
40 Topaz Investments-1.2MW 2.14
41 Cepco Industries-0.6MW 0 1.2
42 Shilpa Medicare-0.46MW 1.5
43 Mohite & Mohita 4.06
44 NEG Mican 6.99
45 Pallavi Green Power 0.56
46 Supreme Power Company 1.46
47 Dee Dee Enterprises 1.4
48 Royal Energy Company 1.08
49 Rangad minerals and Mining Ltd. 1.15
50 MSPL Ltd. Phase-II 3.61
51 Mansukmal Investments 0.29
52 Reliance-BSES 3.06
53 Encon Services Ltd. 4.34
54 Mahe Ltd. 12.17
55 Prime Lables Ltd. 0.36
56 Savita Chemicals (Encon Group) 2.37
57 Sanjay D. Ghodawat (I & II) 0.01
58 BS Charnabasappa & Sons 0.01
59 Associated Autotex Ancilliaries Ltd. 0
60 Good Luck Syndicate 0.01
61 Ghodawat Pan Masala (VVS) 0.02
62 Star Flexi Pack Industries 0.01
63 Shreya Laxmi Properties 0
64 Shraddha Constructions 0
65 VXL Systems 0.6MW (VVS) 0
66 Cepco Industries-1.2MW(VVS) 0
67 Dee Dee Enterprises (Enercon) 2.01
68 Miscellaneous IPPs 26.66
Total- IPP(Wind) 12.09 94.74 269.63
Private Sector Total 509.35 655.94 864.06
Data Source: KPTCL
Table 3-4 : Power Generation Mix of Karnataka from Central Generating Stations
Installed
Capacity
(MW) 2001-02 2002-03 2003-04
A. Central- Thermal
1 NTPC-SR Coal 3255.45 3689.19 3006.56
2 NTPC-ER Coal 846.52 1616.36 571.23
3 NTPC-NVVN 0 0 112.88
4 NTPC-Talcher 2&3 Coal 0 0 835.85
5 NLC Lignite 2004.73 2265.66 2082.99
6 NLC Expansion-I Lignite 0 0 452.41
7 PTCIL 379.92 190.57 819.66
8 PGCIL-SREB 0 297.24 1404.74
Total- Thermal 6486.62 8059.02 9286.32
B Central-Nuclear
1 Madras Atomic Power Station (MAPS) 431.09 158.63 96.9
2 KAIGA Generating Station 627.17 852.1 829.82
Total- Nuclear 1058.26 1010.73 926.72
C Imports from Other Grids
SREB
1 KSEB 0 0 0
2 APTRANSCO 2.52 12.56 0
3 TNEB 0 0 0
Sub-Total 2.52 12.56 0
WREB
1 MSEB 0.59 4.19 0
2 Goa 0 1.18 0
3 CSEB 0 0.14 0
4 MPEB 0 7.12 0
5 GEB 0 3.53 0
6 WREB 56.73 0 0
Sub-Total 57.32 16.16 0
Hydro-T.B. Dam
1 T.B.H.E 29.65 14.75 6.91
Sub-Total 29.65 14.75 6.91
Total- Imports from Other Grids 89.49 43.47 6.91
Central Sector Total 7634.37 9113.22 10219.95
Data Source: KPTCL
The data of Table 3-5 given below are used for Simple BM emission factor (EFBM,y).
Table 3-5: Power Generation data of the Sample Group for Calculation of Built Margin
Year of
Sr.No. Power plant name / location Unit No. Fuel Type Capacity MU
commissioning
2003-
(MW)
2004
1 RTPS-VII 7 Coal 7x210 2003-2004 1504.33
National
2 NTPC-NVVN 2003-2004 112.88
Generation Mix
3 IPP-Wind Wind 2003-2004 178.56
4 IPP-Biomass Biomass 2003-2004 13.4
5 IPP-Mini Hydel Mini Hydel 2003-2004 9.67
6 IPP-Co-generation Co-generation 2003-2004 1.67
7 NLC Expansion-I Lignite 2003-2004 452.41
8 Almatti Dam Power House Hydel 2003-2004 0.45
9 NTPC-Talcher 2&3 3 Coal 2003 835.85
10 IPP-Wind Wind 2002-2003 18.47
13 Chakra Hydel 2002-2003 455.38
National
14 PGCIL-SREB Generation Mix
2002-2003 1404.74
15 IPP-Wind Wind 2001-2002 72.6

16 IPP-Biomass Biomass 2001-2002 39.58
19 NTPC-ER Coal 2001-2002 571.23
Taneer Bhavi Power
20
Company
Naphtha 220 2000-2001 866.37
TOTAL 6640.03
20% of Total Gross Generation 6144.48
Data Source: KPTCL
Annex 4
MONITORING PLAN
The aim is to enable KHEP project activity to have a clear, credible, and accurate set of
monitoring, evaluation and verification procedures. The purpose of these procedures would be to
direct and support continuous monitoring of project performance/key project indicators to determine
project outcomes, greenhouse gas (GHG) emission reductions.
The project activity’s revenue is based on the units exported as measured by power meters at
plant and check meters at the high-tension substation of the KPTCL. The monitoring and verification
system mainly comprise of these meters as far as power export is concerned. The export of electricity
will be through invoices to KPTCL. The invoices, based on meter readings will also be covered in the
regular finance audit.
The KHEP project activity has employed the latest state of art monitoring and control
equipment that measure, record, report, monitor and control various key parameters. Parameters
monitored are the total power generated, power exported to the grid and auxiliary power generated.
These monitoring and controls will be the part of the Distributed Control System (DCS) of the entire
plant.
The instrumentation system of the KHEP project activity comprises of microprocessor-based

instruments of reputed make with desired level of accuracy. All instruments will be calibrated and
marked at regular intervals so that the accuracy of measurement can be ensured all the time.
The quantity of emission reduction units claimed by the project activity is only a fraction of
the total generated emissions, which depends on the actual generation mix of the grid in a particular
year. KPTCL publishes yearly reports regarding the performance of all power generation units. Hence,
authentic data related to the measurements, recording, monitoring and control of the generation mix of
the KPTCL network is ensured.
The KPTCL report contains all information regarding type of generation like hydro, thermal,
nuclear, renewable etc., installed capacity, de-rated capacity, performance of generating unit, actual
generation, capacity additions during the year, etc. which can be used for verification of generation
mix and emission factors for baseline calculation for a particular year.
Project Parameters affecting Emission Reduction
Monitoring Approach
The general monitoring principles are based on:
Frequency
Reliability
Registration and reporting
As the emission reduction units from the project are determined by the number of units exported to the
grid (and then multiplying with appropriate emission factor) it becomes important for the project to
monitor the net export of power to the grid on real time basis.
Frequency of monitoring
The KHEP has installed all metering and check metering facilities within the plant premises as well as
in the grid substation where exported power is connected to the grid. The measurement is recorded and
monitored on a continuous basis by both KPTCL and SKPCL through DCS.
Reliability
The amount of emission reduction units is proportional to the net energy generation from the project.
Thus the final KWh meter reading is the final value from project side. All measurement devices will
be of microprocessor based with best accuracy and will be procured from reputed manufacturers.
Since the reliability of the monitoring system is governed by the accuracy of the measurement system
and the quality of the equipment to produce the result all power measuring instruments must be
calibrated once a year for ensuring reliability of the system. All instruments carry tag plates, which
indicate the date of calibration and the date of next calibration. Therefore the system ensures the final
generation is highly reliable.
Registration and reporting
Registration of data is on-line in the control cabin through a microprocessor. However, hourly data
logging will be there in addition to software memory. Daily, weekly and monthly reports are prepared
stating the generation. In addition to the records maintained by the SKPCL, KPTCL also monitors the
power exported to the grid and certify the same.
No other project specific indicators are identified that affect the emission reductions claims.
Enclosure III
ABBREVIATIONS
% Percentage
BM Build Margin
BEF Baseline Emission Factor
CAIA CERUPT Alternative Investment Analysis
CDM Clean Development Mechanism
CEA Central Electricity Authority
CER Carbon Emission Reduction
CM Combined Margin
CO2 Carbon Di Oxide
DNA Designated National Authority
DOE Designated Operational Entity
EIA Environmental Impact Assessment
GHG Green House Gases
GWh Giga Watt Hour
Gwh/ Year Giga Watt Hour per Year
H.T. High Tension
Hz Hertz
IPCC Intergovernmental Panel on Climate Change
IPPs Independent Power Producers
IRR Internal Rate of Return
Kg / kWh Kilo Gram per Kilo Watt Hour
kg CO2 equ/kwh Kilo Gram Carbon Di Oxide equivalent per Kilo Watt Hour
kg/kwh Kilo Gram per Kilo Watt Hour
KERC Karnataka Electricity Regulatory Commission
KHEP Kabini Hydro Electric Power
KP Kyoto Protocol
KPCL Karnataka Power Corporation Limited
KPTCL Karnataka Power Transmission Corporation Limited
KREDA Karnataka Renewable Energy Development Authority
KV Kilo Volt
kw Kilo Watt
kWh Kilo Watt Hour
M Meter
M&P Modalities and Procedures
M&V Monitoring and Verification
M Cum. Million Cubic Meter
Mkwh Million Kilo Watt Hour

MNES Ministry of Non-Conventional Energy Sources
MoEF Ministry of Environment and Forests
MU Million Units (Million Kilo Watt Hour)
MW Mega Watt
MW Mega Watt
NCV Net Calorific Value
NTPC National Thermal Power Corporation
NTPC-NVVN National Thermal Power Corporation – Vidyut Vyapar Nigam Limited
OECD Organisation for Economic Co-operation and Development
OM Operating Margin
OM Expenses Operation and Maintenance Expenses
PGCIL Power Grid Corporation of India Ltd
PTCIL Power Trading Corporation of India Limited
R.T.P.S Raichur Thermal Power Station
Rs. Indian Rupees
RSPM Respirable Suspended Particulate Matter
SKPCL Subhash Kabini Power Corporation Limited
SPM Suspended Particulate Matter
SPML Subhash Projects and Marketing Limited
SREB Southern Regional Electricity Board
T&D Transmission and Distribution
UNFCCC United Nations Framework Convention on Climate Change
Units Kilo Watt Hour
VVNL Vishveswaraya Vidyuth Nigama Limited
WACC Weighted average cost of capital
WREB Western Regional Electricity Board
Enclosure IV
LIST OF REFERENCES
Kyoto Protocol to the United Nations Framework Convention on Climate Change

(UNFCCC)
Website of United Nations Framework Convention on Climate Change, http://unfccc.int
UNFCCC decision 17/CP.7: Modalities and procedures for a clean development
mechanism as defined in article 12 of the Kyoto Protocol
UNFCCC, Clean Development Mechanism, CDM Project Design Document (CDM-
PDD) version 02 (in effect as of: 1 July 2004)
UNFCCC, Clean Development Mechanism, Approved consolidated baseline
methodology ACM0002 - “Consolidated baseline methodology for grid-connected
electricity generation from renewable sources” ACM0002 / Version 01; Sectoral Scope:
1, 3 September 2004.
UNFCCC, Clean Development Mechanism, Annex 1, Tool for the demonstration and
assessment of additionality EB 16 Report;
Detailed project report on Kabini Hydro Electric Power project Activity
KHEP project activity proposal, 2002
Board Agenda for the SKPCL Board Meeting, 26th Dec, 2002
Website of Central Electric Authority (CEA), Ministry of Power, Govt. of India-
www.cea.nic.in
Communications from KPTCL, 2005
Water Resources Department, Government of Karnataka ; waterresources.kar.nic.in
Website of Ministry Non-Conventional Energy Sources (MNES), Government of India,
www.mnes.nic.in
Power Purchase Agreement between SKPCL and KPTCL;
Stakeholders Comments, (2003), SKPCL

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM – Executive Board page 1

CLEAN DEVELOPMENT MECHANISM

A. General description of project activity

B. Application of a baseline methodology

C. Duration of the project activity / Crediting period

D. Application of a monitoring methodology and plan

E. Estimations of GHG emissions by sources

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

Enclosure I: Built Margin Calculations

Enclosure II: CER Calculations

Enclosure III: Abbreviations

Enclosure IV: List of References

CDM – Executive Board page 2

SECTION A. General description of project activity

A.1 Title of the project activity:

A.2. Description of the project activity:

Therefore the primary objective of the project activity is

CDM – Executive Board page 3

CDM – Executive Board page 4

CDM – Executive Board page 5

A.3. Project participants:

Name of the Party Private and/or public Kindly indicate if

India (Host) SKPCL No

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

A.4.1.1. Host Party(ies):

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

A.4.1.3. City/Town/Community etc:

>> Heggedadevana Kote Taluk, Mysore District

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

CDM – Executive Board page 6

Maps not to scale

A.4.2. Category(ies) of project activity:

CDM – Executive Board page 7

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

A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic

CDM – Executive Board page 8

A.4.4.1. Estimated amount of emission reductions over the chosen

Years Annual estimation of emission reductions in

A.4.5. Public funding of the project activity:

CDM – Executive Board page 9

SECTION B. Application of a baseline methodology

The ‘ACM0002: Consolidated methodology for grid-connected electricity generation from

CDM – Executive Board page 10

As per the Approved consolidated baseline methodology ACM0002 – Consolidated baseline

CDM – Executive Board page 11

Calculation of electricity baseline emission factor

STEP 1. Calculate the Operating Margin emission factor (EFOM,y)

(a) Simple OM, or

CDM – Executive Board page 12

Table B-1: Power generation Mix of Karnataka for five years

CDM – Executive Board page 13

Table B-2: Data used for Simple OM emission factor

Coal Gas Diesel Coal Gas Diesel Coal Gas Diesel

Coal Gas Diesel Coal Gas Diesel Coal Gas Diesel