PDD-7.5 MW Biomass Based Power Plant - Clean
PDD-7.5 MW Biomass Based Power Plant - Clean
PDD-7.5 MW Biomass Based Power Plant - Clean
CONTENTS
D. Environmental impacts
E. Stakeholders’ comments
Annexes
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The aim of the project activity is to displace the fossil fuel generated electricity with
renewable Biomass based electricity. In absence of which the equal amount of energy
would be generated by fossil fuel fired power plants connected to the grid. The project
activity is to utilize renewable type biomass residues or biomass waste type1 as a source
of energy to generate 7.5 MW electricity. Utilization of such sub-types of renewable
biomass within biomass waste type will produce eco-friendly power, and achieve
sustainable development of the power generation industry and agriculture by reducing
CO2 emission and other GHG emissions. In the proposed project activity the biomass
will be combusted in the boiler to produce the steam, the steam at high temperature and
pressure will be fed to turbine generator which will generate 7.5 MW electricity. The
generated electricity will be exported to the regional grid. The part of the generated
electricity will be used to meet the auxiliary power requirement of the power plant, in
case of any grid failure and power plant failure emergency power will be provided by DG
set of 125 KVA.
Technology Employed:
The project activity involves the electricity generation from renewable biomass fired 1 X
34 tph boiler. Renewable biomass based boiler will generate super heated steam at 66
kg/cm2 pressure and at 495± 0C temperature. This superheated steam will be fed to the
turbine generator to generate 7.5 MW electricity. The super heated steam will be
produced from FBC boiler by firing with renewable biomass. The FBC boiler can also
use low grade Coal. Coal or coal based low grade fuel can be fired in boiler either along
with the Biomass or without biomass. Hence technically co fired system will be adopted
in the project activity.
The total emission reductions for the entire crediting period of 10 years have been
calculated as 286599 tCO2 equivalent.
1
Biomass residue and biomass waste considered as renewable biomass in line with EB23, Annex
18 would only be used in the project activity. ( in this type of biomass residue and biomass waste
type of biomass; several sub types of biomass like Rice Husk, Paddy straw, wood sawn dust, Sal
Seed DOC, Lops and Tops etc are also available in surplus in the region which are possible to be
used; however only Rice husk is considered for the ex ante estimation as it is the cheapest subtype
of biomass and available in highest surplus as compared to any other subtypes of the biomass
waste within this type)
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The project activity will lead towards the sustainable development and sustainable growth
by conserving the natural resources such as coal and producing green power.
Economical well-being:
Employment generation for the local population which results in economic well being.
Generation of additional income for rural farmers due to creation of commercial value for
the neglected biomass in and around the project region would bring in additional
investment consistent with the needs of the people.
Technological well-being: The CDM project activity will encourage similar type of
projects to be implemented which would lead to reduction of GHG emission and would
help to conserve the natural resources.
Environmental well being: The proposed CDM project activity involves use of
renewable energy source for electricity generation instead of fossil fuel based electricity
generation hence reducing GHG emissions.
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Technology Employed:
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The project activity involves the electricity generation from renewable biomass fired 1 X
34 tph boiler. Renewable biomass based boiler will generate super heated steam at 66
kg/cm2 pressure and at 495±5 0C temperature. This superheated steam will be fed to the
turbine generator to generate 7.5 MW electricity. The super heated steam will be
produced from FBC boiler by firing with renewable biomass. The FBC boiler can also
use low grade Coal. Coal or coal based low grade fuel can be fired in boiler either along
with the Biomass or without biomass. Hence technically co fired system will be adopted
in the project activity.
Technological specifications of the boiler and STG installed under project activity
are depicted in table below:
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is a registered small scale project activity or an application to register another small scale
project activity under the CDM:
B.1. Title and reference of the approved baseline and monitoring methodology
applied to the small-scale project activity:
>>
Title: Grid Connected Renewable Electricity Generation
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plant(s).
3 Hydro power plants with reservoirs that The project activity is not a
satisfy at least one of the following Hydro power plants but a
conditions are eligible to apply this renewable biomass based green
methodology: field power plant. Hence this
condition is not applicable on
• The project activity is project activity.
implemented in an existing
reservoir with no change in the
volume of reservoir;
• The project activity is
implemented in an existing
reservoir, where the volume of
reservoir is increased and the
power density of the project
activity, as per definitions given
in the Project Emissions section,
is greater than 4 W/m2;
• The project activity results in new
reservoirs and the power density
of the power plant, as per
definitions given in the Project
Emissions section, is greater
than 4 W/m2.
4 In the case of biomass power plants, no The project activity utilizes only
other biomass types than renewable renewable biomass type within
biomass are to be used in the project which sub types like i.e. Rice
plant. husk, Rice straw, De-oiled
salseed cake (DOC), Saw mill
wood dust, Lops and tops of trees
would be combusted in project
activity2 and these biomass
residue and biomass generated
from waste streams from
agriculture, forestry, and related
industries. These are renewable
biomass as per Annex 18 EB 23.
No other biomass type will be
used than renewable biomass.
Hence this applicability condition
is justified to the project activity.
5 If the new unit has both renewable and The project activity is new green
non- renewable components (e.g., a field plant to generate 7.5 MW
wind/diesel unit), the eligibility limit of electricity, which is less than
15 MW for a small-scale CDM project 15MW.
activity applies only to the renewable
2
Project activity will utilizes Rice husk but in emergency conditions other define renewable
biomass would be combusted in the project activity.
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The project activity meets the applicability criteria of the methodology AMS I.D. Version
16, EB 54 and
the application of the methodology is thus justified.
Since, the maximum electricity generating capacity is limited by the design of the plant
and machinery and by the license issued by the state authorities; hence, there is no
possibility of exceeding the limits of small-scale CDM project activity during the
crediting period and the project activity will remain as a small- scale project activity.
Since the generated electricity is intended for export to the regional grid system, the
applicable methodology is AMS-I.D. The latest version of the methodology, Version 16
is applied.
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Project Boundary
BIOMASS STORAGE
COAL
STORAGE
BOILER
STEAM TURBINE
GENERATOR
AUXILIARY
ELECTRICITY CONSUMPTION
GENERATED
The project boundary covers from the point of fuel supply to the point of power export to
the grid where the project proponent has full control i.e. fuel storage , boiler, steam
turbine generator and all other power generating equipments, and auxiliary consumption
units.
Justification:
The project activity is the installation of a new grid-connected renewable power plant,
hence as per approved small scale methodology AMS I D the baseline scenario is the
electricity delivered to the grid by the project activity that otherwise would have been
generated by the operation of grid-connected power plants and by the addition of new
generation sources.Further to this generating electricity from the project activity would
be delivered to regional grid “NEWNE” hence “NEWNE” grid is identified as baseline.
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The baseline emissions are the product of electrical energy baseline EGBL, y expressed in
MWh of electricity produced by the renewable generating unit multiplied by the grid
emission factor.
Where:
BEy = Baseline Emissions in year y (t CO2)
EGBL, y = Quantity of net electricity supplied to the grid as a result of the
implementation of the CDM project activity in year y (MWh)
EF CO2grid,y = CO2 emission factor of the grid in year y (t CO2/MWh)
OR
(b) The weighted average emissions (in t CO2/MWh) of the current generation mix.
.The data of the year in which project generation occurs must be used.
PP selected option (a) and Combined margin (CM) is calculated according to the
procedures prescribed in the “Tool to calculate the Emission Factor for an electricity
system” Version 02.2 EB- 61 Annex 12. And the emission factor calculated as per CM
approach is fixed ex-ante for the entire crediting period. And detail procedure is given in
Section B 6. 1.
Key variable and parameters used for baseline emission calculation are as follows:
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Renewable Biomass:
A biomass assessment survey was carried out and the details of the biomass generation
and consumption of the biomass fuels in the project region (within the radius of 50 km
from the project site) have been presented in the Biomass assessment report furnished to
the DOE. Renewable Biomass assessment report established that in project activity
region renewable biomass is in surplus state.
It is evident from Table 1 that the installed capacity is predominantly coal based and
therefore, it is a major source of carbon dioxide emissions in India. Hence, there exists
scope for reducing the CO2 emissions in the country by way of fuel substitution,
3
The Gazette of India ,Extra Ordinary, Part I –Section 1, Ministry of Power (No.
23/40/2004-R&R (Vol.II) dated 12th, February, 2005
4
http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver4.pdf
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increased use of renewable energy sources, and also by improving the thermal efficiency
of power generation.
As per EB49-Annex 22 since start date of the project activity is before 02/08/2008, hence
its fall under the category of “Existing Project Activities”
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Bilaspur.
8 Advance paid to 22/11/2004 First real -
manufacturer (Thermax) action towards
for supply of plant project
equipments. implementation
(Start date of
Project
activity).
9 Interview before DNA for 22/09/2005 - Step towards
HCA CDM
registration
10 HCA received from DNA 9/11/2005 . Step towards
CDM
registration
11 Board resolution for the 26/06/2006 - Step towards
appointment of additional CDM
internal CDM Consultants registration
(namely “Beneficial
securities Pvt. Ltd).
12 Correspondence between 03/07/2006 - Step towards
NRI’s and Beneficial CDM
Securities Pvt. Ltd. (Internal registration
CDM consultant) regarding
CDM registration activity
13 Date of Commissioning of 31/08/2006 Project activity -
project activity. commissioning
completed.
14 Commercial production 26/12/2006 Step towards -
started Project
implementation
15 ERPA signed between PP 23/01/2007 - Step towards
and SBM Gmbh CDM
registration
16 Correspondence between 23/04/2007 - Step towards
NRI’s and Beneficial 20/06/2007 CDM
Securities Pvt. Ltd. (Internal 26/06/2006 registration
CDM consultant) regarding 29/06/2007
CDM registration activity
17 Email Offer for CDM 21/08/2007 - Step towards
consultancy from Zenith CDM
Energy Services registration
18 Appointment of Third 02/10/2007 - Step towards
CDM Consultants (namely CDM
“Zenith Energy Services”) registration
19 Email correspondence from 13/11/2007 - Step towards
Zenith Energy Services- CDM
requesting information to registration
move further towards CDM
registration.
20 Quotation for service of 17/11/2007 - Step towards
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The chronology of events clearly demonstrate that there is less than 2 years of a gap
between the documented evidence hence it can be concluded that continuing and real
actions were taken to secure CDM status for the project activity.
In summary, serious action to ascertain CDM benefits was taken in the form of
appointment of CDM consultant 4 months prior to the project start date. Hence, as a
result the project activity received Host country approval (on 09/11/2005) viz. 11 months
prior to the start of commercial production.
However, due to lack of response from the appointed consultant, a new CDM consultant
(Zenith Energy) was appointed on 02/10/2007 to expedite the CDM process.
Due to non registration of the project as a CDM activity, the project started facing loss5
and the original promoter’s Dr Y.R Krishna and Mrs. Y Kamla transferred their rights to
Mr. Pawan Agrawal and Mr. Ramesh Kumar Agrawal from dated 15/05/2008 onwards.
Due these episodes CDM processing work of the project activity could not take shape in
time. New directors had experience of power generation and CDM process too. And the
new promoters appointed a new CDM consultant viz. ITFC Limited vide work order
dated 10/10/2008. The new CDM consultant expedited the CDM process and also
assisted in appointment of a DOE on 30/03/2009.
Additionality:
5
Audit reports of PP certified by the statutory auditors.
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PP has identified investment barrier as the most relevant barrier to the Project activity.
Investment Barrier:
WACC Calculation
Weighted average cost of capital (WACC) is calculated as weighted average cost of
equity and cost of debt as illustrated below:
The cost of debt has been taken as the average prime lending rate of nationalized
commercial bank prevailing at time of decision i.e 10.62%.
b) Cost of Equity:
Expected return on equity has been arrived at using the Capital Asset Pricing
Model (CAPM). In estimating the expected return on equity, conservative and
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published data has been used to arrive at beta value and market risk premium for
the project type.
Beta:
The beta is determined by referring return on publicly listed companies that are
engaged in similar type of business.
Rj = a + b RM
Where,
Rj = is the return on investment j,
RM = is the return on the market index.
'
b" = slope of the regression is the beta
Average beta value based on adjusted beta values of power generation companies
worked out to be 1.12.
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The above two values (cost of debt and cost of equity) have been used to
calculate WACC, which works out to be 12.41%.
Based on above parameters, the Post Tax WACC works out to be 12.41 %.
The post-tax Project IRR has been calculated based on following parameters and
assumptions
Selection of appropriate biomass sub-type : In the proposed project activity the
biomass type waste or residue only is proposed to be used. As per biomass assessment
within type the following sub-types of biomass are also available in addition to the Rice
Husk, however the available of rice husk is most abundant and price wise most
economical or the cheapest sub-type of biomass fuel. In view of this the price of rice
husk alone has been considered for calculation of financial indicator. The prices of
different types of biomass are given below:
6
http://rbi.org.in/scripts/AnnualReportPublications.aspx?Id=393
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It may also be noted that the Chhattisgarh State Electricity Regulatory Commission as
well CREDA (Govt, of Chhattisgarh undertaking) have also considered only the rice husk
as the biomass subtype fuel for assessment of tariff for the grid.
Since the prices of biomass sub-types are much higher than Rice Husk thus if IRR is
calculated based on those than it would work out to be much lower than assessed by
considering Rice Husk, hence as a conservative approach not required to be calculated
based on other sub-type of biomass. Besides this none of the registered biomass project
activities located in the state of Chhattisgarh have considered these other sub-types of
biomass as an alternative biomass fuel although all these are also available in abundance
but are costlier than the rice husk. As discussed in the biomass assessment report other
sub types of biomass have some alternative usages like rice straw used for fodder as well
as paper making, saw mill wood dust and lops and tops are widely used as domestic fuel,
SAL DOC was also having some usage for which it was being exported as per the Annual
Report of The Solvent Extractors Association of India. However in the current years the
same is not being exported and normally used as fuel by the solvent plant units and
surplus is sold to biomass power plant. The market forces play an important role in
determining the prices of all these sub type of biomasses in which rice husk being highest
in surplus and being difficult for being used by other fuel requiring systems than the
boiler operators. Therefore rice husk is the cheapest type of biomass sub type of fuel. Due
to the market logic all other fuel become costlier for the reasons that they also have some
alternative usages whereas the rice husk is having only one use that is for being used as
fuel or left in the atmosphere for decay in open or combusted without any use. In view of
this use of rice husk only for the financial additionality calculations is most conservative
and most appropriate.
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based on boiler
efficiency 85%
with only fossil
fuel (coal) fire
situation
Revised IRR calculation was done in response to “request for review” considering the
difference boiler efficiency for different type of fuel as per the SEC (SECBIOMASS
16832.90 MJ/MWh and SECCOAL 15248.63 MJ/MWh) arrived in the table given above
and Post Tax Project IRR was found to be 6.66%.
Thus PLF, project cost, cost of fuel and O&M cost have been considered for
sensitivity analysis.
Sensitivity analysis:
The sensitivity analysis keeping in view the 10% variation in PLF, Project cost,
Fuel cost and O&M cost which are parameter contributing more than 20% of
revenue and cost from decision making contest is done and data obtained is
presented below
A. Increase in PLF
S.No. Scenario
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As given in the table above the IRR without CDM remains below benchmark i.e. 12.41%,
whereas with CDM support this crosses the benchmark level hence satisfies the
additionality requirement that CDM support helps in alleviating the barrier to the
investment.
B.6. Emission reductions:
The baseline emissions are the product of electrical energy baseline EGBL, y expressed in
MWh of electricity produced by the renewable generating unit multiplied by the grid
emission factor.
Where:
BEy = Baseline Emissions in year y; t CO2
EGBL, y = Quantity of net electricity supplied to the grid as a result
of implementation of the CDM project activity
in year y (MWh).
EFCO2, grid,y = CO2 emission factor of the grid in year y (t CO2/MWh)
According to “Tool to calculate the emission factor for an electricity system - Version
02.2”, the emission factor is calculated as a Combined Margin (CM), based on the
following six steps.
Historically, the Indian power system was divided into five independent regional grids,
namely Northern, Eastern, Western, Southern, and North-Eastern. Each grid covered
several states (see Table below). Since August 2006, however, all regional grids except
the Southern Grid have been integrated and are operating in synchronous mode, i.e. at
same frequency. Consequently, the Northern, Eastern, Western and North-Eastern grids
are treated as a single grid named as NEWNE grid in this document from FY 2007-08
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onwards for the purpose of this CO2 Baseline Database. The Southern grid has also been
planned to be synchronously operated with rest of all Indian Grid by early 12th Plan
(2012-2017). Presently Southern grid is connected with Western and Eastern grid through
HVDC link and HVDC back to back systems.
Power generation and supply within the regional grid is managed by Regional Load
Dispatch Centre (RLDC). The Regional Power Committees (RPCs) provide a common
platform for discussion and solution to the regional problems relating to the grid. Each
state meets their demand with their own generation facilities and also with allocation
from power plants owned by the central sector such as NTPC and NHPC etc. Specific
quotas are allocated to each state from the central sector power plants. Depending on the
demand and generation, there are electricity exports and imports between states in the
regional grid. Moreover, there are also electricity transfers between regional grids, and
small exchanges in the form of cross-border imports and exports (e.g. from Bhutan).
The project activity is located in the state of Chhattisgarh and connected to the NEWNE
grid.
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STEP 2: Choose whether to include off-grid power plants in the project electricity
system (optional)
Project participants may choose between the following two options to calculate the
operating margin and build margin emission factor:
Option I : Only grid power plants are included in the calculation.
Option II : Both grid power plants and off-grid power plants are included in
the calculation.
The calculation of the operating margin emission factor (EFgrid,OM,y) is based on one of the
following methods:
The simple OM method (option a) can only be used if low cost/must-run resources
constitute less than 50% of total grid generation in: 1) average of the five most recent
years, or 2) based on long-term averages for hydroelectricity production.
The percentage shares of generation from low cost/must run power plants for the 5 most
recent years in the NEWNE grid is as follows:
Source: CO2 Baseline Database for the Indian Power Sector (Version 3.0 &.4.0)
Percentages of total grid generation by low cost/must run power plants (on the basis of
average of five most recent years) = 17.93%.
Thus the simple OM method can be used to calculate the operating margin emission
factor, as low cost/must run resources constitute less than 50% of total grid generation.
Applying the Tool to calculate the emission factor for an electricity system , the project
participant choose an ex ante option for calculation of the operating margin emission
factor (EFgrid,OM,y) with a 3-year generation-weighted average, based on the most recent
data available at the time of submission of the PDD to the DOE for validation, without
requirement to monitor and recalculate the emissions factor during the crediting period.
STEP 4: Calculate the operating margin emission factor according to the selected
method
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As per „Tool to calculate the emission factor for an electricity system , Option A (“Based
on the net electricity generation and a CO2 emission factor of each power unit”) is used to
calculate simple OM emission factor. Where Option A is used, the simple OM emission
factor is calculated based on the electricity generation of each power unit and an emission
factor for each power unit, as follows:
Where:
EFgrid,OMsimple,y = Simple operating margin CO2 emission factor in year y (tCO2/MWh)
EGm,y = Net quantity of electricity generated and delivered to the grid by power
unit m in year y (MWh)
EFEL,m,y = CO2 emission factor of power unit m in year y (tCO2/MWh)
m = All power units serving the grid in year y except low-cost / must-run
power units
y = the relevant year as per the data vintage chosen in STEP 3
The CO2 emission factor (EFEL,m,y) data for simple OM, available under the CEA
database (Version 4.0) for the last three years is as follows
The net electricity generation (EGm,y) data, available under the CEA database (Version
4.0), of all generating power plants (not including low-cost / must-run power plants /
units) for the last three year is as follows:
Thus, as can be seen from the above tables, the 3 years generation-weighted OM average
for the most recent three years available at the time of PDD for validation, i.e.2005-06,
2006-07 and 2007-08 for NEWNE grid is:
EFgrid,OMsimple,y = ( EGm,y X EFEL,m,y ) / EGm,y
The build margin emission factor has been calculated ex-ante as per option (1) based on
the most recent information available on units already built for sample group m at the
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time of CDM-PDD submission to the DOE for validation. This option does not require
monitoring the emission factor during the crediting period.
The sample group of power units m used to calculate the build margin should be
determined as per the following procedure, consistent with the data vintage selected
above:
The sample group of power units m used to calculate the build margin consists of either:
(a) Identify the set of five power units, excluding power units registered as CDM
project activities, that started to supply electricity to the grid most recently (SET5-
units) and determine their annual electricity generation (AEGSET-5-units, in MWh);
(b) Determine the annual electricity generation of the project electricity system,
excluding power units registered as CDM project activities (AEGtotal, in MWh).
Identify the set of power units, excluding power units registered as CDM project
activities, that started to supply electricity the grid most recently and that
comprise 20% of AEGtotal (if 20% falls on part of the generation of a unit, the
generation of that unit is fully included in the calculation) (SET 20%) and
determine their annual electricity generation (AEGSET- 20%, in MWh);
(c) From SET5-units and SET 20% select the set of power units that comprises the larger
annual electricity generation (SETsample);
Identify the date when the power units in SETsample started to supply electricity to
the grid. If none of the power units in SETsample started to supply electricity to the
grid more than 10 years ago, then use SETsample to calculate the build margin.
Ignore steps (d), (e) and (f).
Otherwise:
(d) Exclude from SETsample the power units which started to supply electricity to the
grid more than 10 years ago. Include in that set the power units registered as
CDM project activity, starting with power units that started to supply electricity
to the grid most recently, until the electricity generation of the new set comprises
20% of the annual electricity generation of the project electricity system (if 20%
falls on part of the generation of a unit, the generation of that unit is fully
included in the calculation) to the extent is possible. Determine for the resulting
set (SETsample-CDM) the annual electricity generation (AEGSET-sample-CDM, in MWh); If
the annual electricity generation of that set is comprises at least 20% of the
annual electricity generation of the project electricity system (i.e. AEGSET-sample-
CDM 0.2 × AEGtotal), then use the sample group SETsample-CDM to calculate the
build margin. Ignore steps (e) and (f).
Otherwise:
(e) Include in the sample group SETsample-CDM the power units that started to supply
electricity to the grid more than 10 years ago until the electricity generation of the
new set comprises 20% of the annual electricity generation of the project
electricity system (if 20% falls on part of the generation of a unit, the generation
of that unit is fully included in the calculation);
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(f) The sample group of power units m used to calculate the build margin is the
resulting set (SETsample-CDM->10yrs).
Accordingly, the CEA database calculates the build margin as the average emissions
intensity of the 20% most recent capacity additions in the grid based on net generation by
applying “Tool to calculate the emission factor for an electricity system , the build
margin emission factor (EFgrid,BM,y) for the year 2007-08 (most recent year) for NEWNE
grid, applicable for the project is 0.5977 tCO2/MWh from the CEA database (Version
4.0).
The calculation of the combined margin (CM) emission factor (EFgrid,CM,y) is based on one
of the following methods:
Where:
EF grid,CM,y = Combined Margin CO2 emission factor in year (tCO2/MWh)
EFgrid,BM,y = Build margin CO2 emission factor in year (tCO2/MWh)
EFgrid,OM,y = Operating margin CO2 emission factor in year y (tCO2/MWh)
wOM = Weighting of operating margin emissions factor (%)
wBM = Weighting of build margin emissions factor (%)
(where wOM + wBM = 1)
The “Tool to calculate the emission factor for an electricity system” requires the
following default values should be used for wOM and wBM:
• Wind and solar power generation project activities: wOM = 0.75 and wBM = 0.25
(owing to their intermittent and non-dispatchable nature) for the first crediting
period and for subsequent crediting periods;
• All other projects: wOM = 0.5 and wBM = 0.5 for the first crediting period , and
wOM = 0.25 and WBM = 0.75 for the second and third crediting period, unless
otherwise specified in the approved methodology which refers to this tool.
Hence the following given value is applied to calculate the CM for the CDM project
activity.
wOM = 0.50
wBM = 0.50
Using the values of emission factors for OM and BM for NEWNE grid, provided in the
official database and as computed above; and the weights provided above, the value of
the emission factor for the combined margin has been determined to be:
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The project activity is a renewable energy based project, wherein biomass residues are
combusted in a boiler to produce steam, which drives a turbine connected to an alternator,
producing power. No anthropogenic emissions would occur due to utilization of biomass
as fuel. The project activity is permitted to use fossil fuel/coal to an extent of 25% of the
annual fuel consumption.
In accordance to the methodology AMS- I.D. para 22, for projects consuming biomass
and fossil fuel to produce electricity, a specific energy consumption of each type of fuel
(biomass or fossil) to be used should be specified ex ante. The consumption of each type
of fuel (biomass or fossil) shall be monitored.
If fossil fuel is used, the electricity generation metered should be adjusted by deducting
the electricity generation from fossil fuels using the specific energy consumption and the
quantity of fossil fuel consumed.
The amount of electricity generated using biomass fuels then shall be calculated using
specific energy consumption and amount of each type of biomass fuel used. The SEC for
all subtypes of biomass are considered the same as all are falling within the same Type of
Biomass waste/Residue. The lower of the two values should be used to calculate
emission reductions
EGBL,y = Lower ( The amount of electricity generated adjusted with the electricity
generation from fossil fuel calculated using specific energy consumption of fossil fuel
used and the amount of electricity generated from biomass calculated using specific
energy consumption of biomass fuel used )
As the project activity envisage the usage of coal for generation of power, in both the
approaches, the Station Heat Rate (SHR) of the biomass power project itself determines
the specific energy consumption.
The following are the detailed equations proposed to calculate specific energy
consumption. There by arrived specific energy consumption is fixed ex-ante for the entire
crediting period.
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Subsequently while considering the quantity of fossil fuel fired in the project activity as
in 100% mode then the boiler efficiency as per the manufacture specified as 83%,
however as per “Tool to determine the baseline efficiency of thermal or electric energy
generation systems” Ver-1 EB 48 it is considered as 85% as a conservative approach, thus
SEC (SECCOAL) worked out to be 15248.63 MJ/MWh.
Quantity of fuel energy required(MJ/hr) Net Steam Enthalpy produced by the boiler
in( MJ/hr)/Efficiency of boiler for specific
fuel( %)
Net Steam Enthalpy produced by the Steam flow (tph)*1000X Net gain in
boiler in( MJ/hr) enthalpy of steam produced by boiler
(MJ/kg)
Net gain in enthalpy of steam produced by Enthalpy of steam produced by the boiler –
boiler (MJ) Enthalpy of feed water
Input values used for the determination of the SEC are based on the following
parameters specified by the manufacturer:
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Considering the above Specific energy consumption the EGBLY is calculated as below by
computing EGa,y and EGb,y:as per option 1 and option 2 and the lowest of the two is
considered as EGBLY :
“If fossil fuel is used, the electricity generation metered should be adjusted by deducting
the electricity generation from fossil fuels using the specific energy consumption and the
quantity of fossil fuel consumed”
Where,
EGa,y = Quantity of net electricity supplied to the grid as a result of
implementation of CDM Project activity in year y after having adjusted
for Net electricity supplied from fossil fuel (MWh/annum)
EG EXP,y = Net electricity exported/supplied to the NEWNE grid system in year y
(MWh/annum)
EGF,y = The amount of net electricity supplied from fossil fuels in the year y
(MWh/annum).
( FFc,y X NCVc,y)
EGF,Gross,y = ----------------------
SECCOAL
FFc,y = Quantity of fossil fuel type (coal) combusted in the project activity
during the year y (in MT)
SECCOAL= Specific energy consumption for fossil fuel (coal) ( MJ/ MWh)
NCVc,y = Weighted average net calorific value of fossil fuel(coal) combusted in the
project during the year y (MJ/MT)
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“The amount of electricity generated using biomass fuels calculated shall be compared
with the amount of electricity generated calculated using specific energy fuel
consumption and amount of each type of biomass fuel used”
Where,
EGb,y = Quantity of net electricity supplied to the grid as a result of
implementation of CDM Project activity from biomass fuel
(MWh/annum)
( BFk,y X NCVk,y )
EG BF,Gross,y = ----------------------
SEC
Where,
BFk,y = Quantity of dry biomass fuel type k combusted in the project
activity during the year y (MT)
SEC = Specific energy consumption of the biomass project activity
(MJ/MWh)
NCVk,y = Net calorific value of each biomass fuel type combusted in the
project during the year y (MJ/MT)
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Project Emissions:
The possible project emissions for a biomass based power project would be due to
combustion of fossil fuels (other than those used in boiler, like in DG set)
Project emissions due to the combustion of fossil fuels (DG set) = PEFC,j,y
The project activity would install a diesel generator to meet the emergency requirements
of power house etc. Emissions due to use of fossil fuel (diesel) will be accounted as
project emissions based on the following equation:
Where,
PEFC,j,y = Are the CO2 emission from fossil fuel combustion in process j
during the year (tCO2/yr);
FCi,j,y = Is the quantity of fuel type i combusted in process j during the year
y (mass or volume unit/yr);
COEFi,y = Is the CO2 emission coefficient of fuel type i in year y (tCO2/mass
or volume unit)
i = Are the fuel types combusted in process j during the year y.
Where,
The CO2 emission coefficient COEFi,y is calculated based on option B of “ Tool to calculate
project or leakage CO2 emissions from fossil fuel combustion” as follows :
Hence,
Leakage:
According to methodology AMS I.D. Version 16 para 20 leakage is to be considered only
if the energy generating equipment is transferred from another activity.
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Project activity is new green field project utilizing all the new equipments and rule out
any transfer of generating equipment from another activity. Hence such type of leakage in
Project activity is considered Zero.
From the above only option C is relevant to the project according to which the following
is applicable:
(a) In some cases, the biomass used in the project activity could be used for other
purposes in the absence of the project. For example, biomass residues from
existing forests could have been used as fuel wood or agricultural biomass
residues could have been used as fertilizers or for energy generation. Competing
uses for biomass are not relevant, where the biomass is generated as part of the
project activity (new forests or cultivations).
(b) The project participant shall evaluate ex-ante if there is a surplus of the biomass
in the region of the project activity, which is not utilized. If it is demonstrated
(e.g. Using published literature, official reports surveys etc) at the beginning of
each crediting period that the quantity of available biomass in the region (e.g.50
Km radius). Is at least 25% larger than the quantity of biomass that is utilised
including the project activity, than this source of leakage can be neglected
otherwise that leakage shall be estimated and deducted from the emission
reduction.”
Biomass availability status at the time of decision to invest in project activity8 (In
MT)
8
Biomass assessment report
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includin
g the
requirem
ent in
project
activity.
2 Rice 641805.45 182611.09 - 182611.09
Straw
3 DOC of 25317.26 12000.00 - 12000.00
Sal Seed
4 Saw Mill 6300 00 - 00
wood dust
5 Lops & 46898.58 00 - 00
Tops from
agro
forestry
Total 1359665.93 519734.47 55423.34 575157.81 More
than
25%
surplus
As the Type of “ Biomass waste and residue” and also sub-type (rice husk) of the
Biomass waste and residue proposed to be used in the Project activity is available 25%
surplus hence such type of leakage is not considered for the project activity.
Leakage due to combustion of fossil fuels for transportation of biomass residues to the
project site during the year y (LETy)
As the renewable biomass is not generated at site but is collected from an area of 50 km
radius, leakage due to combustion of fossil fuels for transportation of renewable biomass is
considered. The emissions are calculated based on the distance of travel and average truck
load.
BF T , k , y
LETy = k
X AVDy X EF km CO2 y
TLy
Where,
LETy : Leakage during the year y due to transportation of renewable
biomass to the project site (tCO2/yr)
AVDy : Average round trip distance (to and fro) between the renewable
biomass supply sites and the site of the project plant during the year
y (km)
EFkm,CO2,y Average CO2 emission factor for the trucks measured during the
year y (tCO2/km)
BFT,k,y : Quantity of renewable biomass that would be transported to the
project site during the year y (tons)
TLy : Average truck load of the trucks used (tons) during the year y
k : Sub-Types of biomass residues used in the project plant that would
be transported to the project plant in year y
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Leakage due to transportation of renewable biomass is calculated in the above table with
necessary assumptions. The average truck load is taken as 8 tonnes. The average mileage of
trucks is taken as 4.5 km/litre. The average round trip distance for procurement of renewable
biomass is taken as 100 km.
Hence,
Emission reductions:
9
Biomass consumption from 2nd yr onwards has been considered for conservative estimate of
leakage( see section B.7.1 below)
10
Average load truck of 8 tonnes/truck is considered to be conservative figure for estimation of
leakage since the actual load truck observed per truck is in the range of 10-12 tonnes/truck.
Weighbridge slips have been submitted to DOE during validation as supporting evidence for the
same.
11
India Road Transport Service Efficiency Study by World Bank, November 2005.
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measurement methods and Renewable Electricity Generation and the “Tool to calculate
procedures actually the Emission Factor for an Electricity System, Version 2.2,
applied : EB-61 Annex 12.
Any Comment SEC for fossil fuel and Biomass type is Fixed Ex Ante for
the entire Crediting Period. The data will be maintained for
crediting period + 2years. It can be archived in electronic
form also.
Justification of the choice The surplus availability of biomass in project activity region
of data or description of (50Km radius) is assessed based on the Biomass assessment
measurement methods and report. The same is in line with General guidance on leakage
procedures actually in biomass project activities Version 3 EB 47 Annex 28
applied: Section C Competing uses for the biomass.
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As discussed in section B.6.1 the Specific energy consumption is the fuel consumption
(in energy basis) per unit of electricity generated (e.g., TJ of type of fuel energy per
MWh output of electrical energy). It has been calculated ex-ante based on manufacturer’s
specification of project equipment and works out to be as below for the respective type of
fuel used in the project activity
EGBL,y = Lower ( The amount of electricity generated adjusted with the electricity
generation from fossil fuel calculated using specific energy consumption of fossil fuel
used and the amount of electricity generated from biomass calculated using specific
energy consumption of biomass fuel used )
Option 1
a. Total quantity of fossil fuel consumed during the year “y”= FFc,y=11290.40 tonnes
b. Average Calorific value of the Fossil Fuel used= NCVc,y =16044.94 MJ/Tonne
c. Specific Energy Consumption of Fossil Fuel (SECCOAL )in MJ/MWh=15248.63
MJ/MWh
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(FFc,y X NCVc,y )
EGF,Gross,y = SECCoal
Subsequent to the above; proportionate the auxiliary power consumed for the system is
deducted to arrive at the net power generation due to the fossil fuel energy in the power
plant. Thus the % of auxiliary power consumed in the entire Power plant is multiplied
with the calculated power generation due to fossil fuel energy as given below:
EGAux%,y is calculated based on the total power consumed in the auxiliary facility(EGAux,y)
of the Power plant ( which is the difference between the export of power and total of
gross power generation plus import power) divided with Gross power generated and
multiplied by 100 to arrive at percentage consumption which is denoted as EGAux,%y (for
ex ante estimation it is considered as 10%; whereas the actual ratio will be worked out
based on the measured data during the monitoring period). Based on this the EGF,Aux,y is
calculated in the following manner for ex ante estimation.
Option 2
“The amount of electricity generated using biomass fuels calculated shall be compared
with the amount of electricity generated calculated using specific energy fuel
consumption and amount of each type of biomass fuel used”
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(BFk,y X NCVk,y )
EG BF,Gross,y = -------------------------
SECBIOMASS
= (44786.54X 13395.20) / 16832.90
= 35640.00 MWh
EGb,y = 35640-3564
= 32076.00 MWh
Lower of two values of EGBL,y calculated as per option 1 and 2 on the basis of monitored
parameters would be used for calculation of ex-post baseline emissions. Since in the
present ex-ante calculation both the values are found same thus any one is used but
during the monitoring period the lowest of the two will be used.
“If fossil fuel is used, the electricity generation metered should be adjusted by deducting
the electricity generation from fossil fuels using the specific energy consumption and the
quantity of fossil fuel consumed.”
(FFc,y X NCVc,y )
EGF,Gross,y = SECCOAL
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Option 2
“The amount of electricity generated using biomass fuels calculated shall be compared
with the amount of electricity generated calculated using specific energy fuel
consumption and amount of each type of biomass fuel used”
(BFk,y X NCVk,y )
EG BF,Gross,y = -------------------------
SEC BIOMASS
= (50384.86X 13395.20) / 16832.90
= 40095.00 MWh
EGBF,Aux,y= 40095.00 X EGAux%,y
= 40095.00 X 10% = 4009.50 MWh
Lower of two values of EGBL,y calculated as per option 1 and 2 on the basis of monitored
parameters would be used for calculation of ex-post baseline emissions.
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Project emissions:
The project emissions due to the combustion of diesel are considered as zero for
estimation of ex-ante calculations of emission reductions. The emissions from the
combustion of diesel for operation of the DG
set during emergency situations are considered negligible. However the quantity of diesel
combusted in the project activity will be monitored during each year of crediting period
(B.7.1) and deducted from baseline emissions, and necessary provision has been made in
Section B.6.1 by providing formulae to calculate project emissions. Since estimation of
quantity of diesel consumption is unpredictable before actual operation of the project and
also to simplify the ex-ante calculations of emission reductions, excluding its contribution
to project emissions is considered reasonable.
Leakage:
Emission reduction:
Where,
BEy = Baseline Emission = 25761.00 tCO2e/Year for 1st yr,
28982.00 tCO2e/Year
from 2nd yr onwards
LEy = Leakage = 0 tCO2/Year
PEy = Project Emission = 0 tCO2/Year
Hence,
For 1st yr
ERy = 25761.00 - 0 - 0
= 25761.00 tCO2e/Year
ERy = 28982.00 - 0 - 0
= 28982.00 tCO2e/Year
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>>
Year Estimation of Estimation of Estimation Estimation
project baseline of leakage of overall
activity emissions (tCO2e) emission
emissions (tCO2e) reductions
(tCO2e) (tCO2e)
2011-12 0.0 25,761.00 0.0 25,761.00
2012-13 0.0 28,982.00 0.0 28,982.00
2013-14 0.0 28,982.00 0.0 28,982.00
2014-15 0.0 28,982.00 0.0 28,982.00
2015-16 0.0 28,982.00 0.0 28,982.00
2016-17 0.0 28,982.00 0.0 28,982.00
2017-18 0.0 28,982.00 0.0 28,982.00
2018-19 0.0 28,982.00 0.0 28,982.00
2019-20 0.0 28,982.00 0.0 28,982.00
2020-21 0.0 28,982.00 0.0 28,982.00
Total 0.0 286,599.00 0.0 286,599.00
(tonnes of
CO2e)
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12
Rice Husk, Rice Straw, Sal DOC, Saw Mill Wood Dust, Lops and Tops etc.
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The total quantity of fossil fuel procured for the project purpose
will be completely combusted in the power plant. Hence, the
total quantity of fossil fuel procured and quantity of fossil
combusted is considered as same for the project activity.
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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
The total quantity of diesel procured for the project purpose will
be completely combusted in DG sets. Hence, the total quantity
of diesel procured and quantity of diesel combusted is
considered as same for the project activity.
QA/QC procedures to The data recorded can be cross checked against the fuel
be applied: purchase bills.
Any comment: Data will be kept for crediting period + 2 years.
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Monitoring Plan -
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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
Personnel Responsibility
Director Director is responsible for the total monitoring plan. Director will
examine the reports generated by General Manger (Tech.) with
reference to the monthly electricity generated; net electricity
exported to grid and annual emission reduction calculations as per
the monitoring plan.
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Data uncertainty in the project activity monitoring could occur for the following parameters –
Calibration - The energy meters (both main and check) are sealed and duly
calibrated as per norms of Grid, and will be calibrated timely as per norms of
Grid normally once in year. PP does not have any control over it.
(b) Monitoring of fuel quantity( Biomass and fossil fuel combusted in Boiler)
Measurement procedure - The trucks carrying specific biomass fuel/fossil fuel is
weighed by a calibrated weighbridge upon entry (loaded weight) and exit (tare
weight) to arrive at the net quantity of respective gross biomass fuel/fossil fuel
procured. The recorded data of weighbridge can be cross checked against the
purchase receipts.
Preparation of this document has been done by “Indus Technical and Financial
Consultants Ltd.”, who is project developer but not a Project Participant and whose
address is:
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C.2.2.2. Length:
>> 10 Years 0 Month
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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03
E.1. Brief description how comments by local stakeholders have been invited and
compiled:
>>
NRI identified the following as stake holders to keep the transparency in the operational
activity of the project promoter and thereby meeting local/ environmental
regulations –
Management of Real Power Private Ltd (Formerly known as “NRI Power and Steel Pvt.
Ltd”) invited comments of local stakeholder upon project activity through public notice
published in newspapers namely “Deshbandhu” Bilaspur in Local language and
“Central Chronicle” in English language on dated 28/10/2008. A meeting of local
stakeholders of village panchayat Rambode was held on 28/11/2008 at NRI plant
premises and representative of management explain the CDM and project activity.
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E.3. Report on how due account was taken of any comments received:
>> There were no negative comments received from any of the stakeholder’s. Hence
no actions were required.
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Annex 1
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Annex 2
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Annex 3
BASELINE INFORMATION
Annex 4
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MONITORING INFORMATION
65