Project Design Document For Guangdong Nan’ao Huaneng 45 ...

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM – Executive Board page 1

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Huaneng New Energy Industrial Co. Ltd Guangdong Nan’ao Huaneng 45.05MW Wind Power Project

Project Design Document For

Guangdong Nan’ao Huaneng 45.05MW Wind Power Project

Aug 2005

Submitted by:

Huaneng New Energy Industrial Co. Ltd The 10-11th Floor, the Huaneng Mansion Beijing 100036, China

Prepared by: Green Capital Consulting Company Suit 2001, Building 7, Jianwai SOHO Beijing,100022, China



CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD)

Version 03 – (in effect as of: 13 May 2005)

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. Estimation 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 Annex 5. List of Abbreviations



SECTION A. General description of project activity A.1 Title of the project activity: >> Guangdong Nan’ao Huaneng 45.05 MW Wind Power Project Version number of the document: 3 Date: Aug, 6th 2005 A.2. Description of the project activity: >>

The objective of the proposed Guangdong Nan’ao Huaneng 45.05 MW Wind Power Project (hereafter the proposed project), a grid-connected renewable power project, is to utilize wind resources for generating renewable electricity to sell, via a power purchase agreement (PPA), into the local Shantou Power Grid, a sub-grid of the regional Guangdong Power Grid, so as to be a self-sustained green power investment project in the market of PRC. The proposed project activity will achieve the greenhouse gas (GHG) emission reductions by avoiding CO2 emissions from the business-as-usual scenario, electricity generation of those fossil fuel-fired power plants connected into the Guangdong Power Grid.

The proposed project is sited in the east of Nan’ao Island, Shantou City, Guangdong province in southern China. The proposed project involves the installation of 53 turbines, each of which has a capacity of 850 kW, providing a total installed capacity of 45.05 MW. The site has an excellent wind resources measured extensively in the past years, and it also benefits from the good conditions for grid-connection and transportation as well as for constructions.

The proposed project clearly fits into the development priority of the PRC, and will support China in stimulating and accelerating the commercialization of grid-connected renewable energy technologies and the green-power market developments. It will therefore help reduce GHG emissions resulting from the high-growth, coal-dominated business-as-usual scenario.

Being an environment sound project, the proposed project will also play a complementary role in supplying the electricity to the Guangdong Grid. Given the fact that turbines are often perceived as aesthetic in China, the site of this proposed project is expected to become a local attraction so as to promote the development of local tourism industry. Moreover, the proposed project will demonstrate the viability of large grid connected wind power projects which can support the improved energy security, improved air quality, alternative sustainable energy futures, improved local livelihoods and overall sustainable development for the renewable energy industry.

The objectives for the proposed project are to:

reduce greenhouse gas emissions in China compared to a business-as-usual scenario;

help to stimulate the growth of the wind power industry in China;

reduce other pollutants resulting from the power generation industry in China, compared to business-as-usual approach;

create local employment opportunities during the project construction and operation; and

boost the development of local tourism.

A.3. Project participants:



>> Participants to the project activity are the following:

Table 1 Information of project participants

Name of Party involved (*) ((host) indicates a host Party)

Private and/or public entity(ies) project participants (*)

(as applicable)

Kindly indicate if the Party involved wishes to be considered as project

participant (Yes/No)

P. R. of China (host country) Huaneng New Energy Industrial

Co. Ltd (project owner) Yes

(*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required.

Project Owner: Huaneng New Energy Industrial Co. Ltd (the “HNEIC”), a subsidiary company solely owned by Huaneng Group Company.

Registered in Nov. 2002 with a total registered capital of RMB 80 million (US$9.67million equivalent), the HNEIC has focused in the business areas of new energy project development, investment, and operation, and aimed to be a large state-owned enterprises specializing in the wind power, small-scale hydro, and solar project developments. After two years successful business operations, the total registered capital of HNEIC was increased to RMB 451.5 million yuan (US$54.6million) in the end of the 2004.

The main business activities of HNEIC include: new energy project development and investment, OEM, engineering construction, and operation for various types of new energy projects including hydro, wind power, landfill power, and solar and etc; it also provides services in the areas of sales and marketing of the engineering construction equipment, as well as the related technology development, transfer, training, and maintenances.

The Company aims to achieve a total amount of 1500MW renewable energy installation capacity by 2010, of which, 1000MW for the wind power, and 500 MW for the small-scale hydropower. For achieving this, the HNEIC has been actively seeking the large project investment opportunities in various regions and provinces where have abundant resources for wind and hydro power developments, including the provinces of Jiling, Shangdong, Weihai, Naoao Island, Inner Mongolia, Jiangsu, and Hebei.

HNEIC believes that the company should supply “green power” to the market, and assumes responsibility in protecting the environment. It has made a full commitment to the sustainable development for the society at large. Translating its commitment into action, the group has developed a large number of renewable energy projects, thus reducing significant amounts of GHG emissions in the market of PRC.

Host Country: The host country is the People’s Republic of China and the Designated National Authority is the National Development and Reform Commission of the Government of China. The Government of the People’s Republic of China announced its approval of the Kyoto Protocol in September 2002.

Purchasing Party: To be determined

Other parties involved in the Project but who are not Project Participants include:

Project Developer: Green Capital Consulting Company, a China-registered legal entity specializing in providing solutions for green project development, financing and implementation in the PRC.

More detailed contact information on the Participants and other Parties are provided in Annex 1 A.4. Technical description of the project activity:



A.4.1. Location of the project activity: >> The proposed project is sited in the east area of Nan’ao Island, Shantou City, Guangdong province. Nan’ao is an island county within Shantou City, and it is surrounded by the South China Sea, about 450km and 50km away from the east Guangzhou city and Shantou city respectively, and about 180 sea miles away from the Northeast of Hong Kong. Figure 1 shows the location of the proposed project.

Figure 1: Map of the location of the proposed project

A.4.1.1. Host Party(ies): >> The Host Country is the People’s Republic of China. A.4.1.2. Region/State/Province etc.: >> Guangdong province A.4.1.3. City/Town/Community etc: >> Nan’ao Island, Shantou City A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): >> The geographical central coordinates of proposed project are east longitude 117º06' and north latitude 23º27'.The area of the site is about 10km in east-west and 4km in north-south (LxW), with a 400m of the elevation. The proposed project site is faced and closed to the South China Sea in north, east and south, about 450km and 50km away from the east of Guangzhou city and Shantou city respectively, about 180 sea miles away from the northeast of Hong Kong. While situated in subtropical zone with monsoon marine climate, the site is also surrounded by mountains within the island, with a varied topography and dense vegetation. A schematic of the project and the land layout of turbines are shown in Figure 2.


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Figure 2. The Land Layout of the turbines for the Propo

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A.4.2. Category(ies) of project activity: >> This category would fall within sectoral scope 1: energy industries. A.4.3. Technology to be employed by the project activity: >>

The proposed project involves the installation of 53 turbines, each of which has a capacity of 850 kW, providing a total installed capacity of 45.05 MW, which is expected to generate a total amount of the annual output approximately 100,965MWh to be sold into the Shantou Power Grid, a sub-grid of the Guangdong Power Grid. According to anemometry data collected during the past years, the capacity factor of the proposed project is estimated about 25.6%.

The proposed project will adopt a mode in one-turbine-one-transformer unit for grid connection. Each turbine will has a 690V-to-35kV transformer, from which a tri-circuit 35kv current collection line will be linked into a newly constructed 110kv switchgear at the substation, then a 45.7km long 110kv line will be linked into the 220kv substation Sunan Substation.

1) The site of the proposed project

Nan’ao Island is geared to a geographic intermittent vertical motion, and the formed mountains are either in a relatively slow upward motion or at a standstill period, resulting in a gentle ground on the top of mountains, which provide topographical advantages for wind farm construction. By means of field surveys, anemometry data analysis, and also taking into the account of transportation and the grid-connection conditions, the proposed project will be developed first in the south area of the Nan’ao island, and latter on the site will be expanded into the north area of the island.

2) The unit capacity of turbine

Base on domestic and international experience on installation and operation of wind farms as well as the development trend of the steady increasing in per unit capacity of turbine in recent years, the HNEIC finally selected a maximum possible unit capacity for the proposed project about 1 MW, so as to achieve a better performance in utilize wind resources and obtain a maximum economic return on the investment, while taking into the account of the various related issues, including the financial viability of the proposed project, the advanced technology applicable maturity degree achieved by different type of products, operational performance, manufacture history, price of turbines, the localization status of each types of wind turbine to be considered, and the conditions of transportation and equipment delivery and installation, and etc.

3) The type of the turbines

The type of the turbines for the proposed project is WTG850B turbine with an installation height of 65m, which was resulted from the comparative analysis made on various factors, including the manufactory level of the turbines, the actual operational performance and energy efficiency, the geographical features of the site. More detailed descriptions of the selections are provided at below.

In matter of factor, there 4 different types of turbines were initially identified: theWTG750A, WTG850B, WTG1250B and WTG1500H. And then, based on the comparative analysis on various factors, including the overall performances in the power profile and the amount of annual output, sufficiency of utilization of the wind resources, and the abilities for enhancing the installation capacity in the end of project life cycle and for improving of the electric voltage quality of the grids where the proposed project to be



connected, the types of WTG850B、WTG1500H turbines were selected for further considerations. For the specifications of the four types of wind turbines, please see table 2.

It is estimated that the wind switching index of the site is about 0.05-0.17. Base on the data analysis of the turbines, namely the type of WTG850B and WTG1500H, the suggested installation height is about 55m and 65m, and base on the comparative economic analysis on the cost-effectiveness and investment sensitiveness of the two types of turbines, the WTG850B type of turbine is finally selected for the proposed project as it has better performance results in terms of its mature experience in installation, operation, and maintenance services under much complicated construction conditions. The installation height for the selected turbines is about 65m.

Table 2 Key technical parameters of the four wind turbines

Model Technical parameter WTG750A WTG850B WTG1250B WTG1500H

Rotor

Diameter(m) 48.4 52 64 70.5

Swept area(m2) 1810 2124 3217 3904

Rotate speed(r/min) 22.3 14.6～30.8 13.8～20.7 11～22

Power conditioner Stall Lose of speed

Variable plasma distance



Cut-in wind speed (m/s) 4 4 4 4

Rated wind speed(m/s) 15 16 14 12

1

Cut-out wind speed (m/s) 25 25 25 25

generator

Model double-winding asynchronous motor

Double-feedback asynchronous motor

double-winding asynchronous motor

Double-feedback asynchronous motor

Capacity(kW) 750/150 850 1250/250 1500

Voltage(V) 690 690 690 690

Frequency(Hz) 50 50 50 50

2

Rotate speed(r/min) 1500 900～1900 1006～1506 1000～2000

Blade 3

Length(m) 23.2 25.3 31 34.000

Gear box 4

Variable ratio 1:67.9 1:61.74 1:74.917 1:90

Braking system

Emergency braking system mechanical tray brake

mechanical tray brake



5

Others Needle blade gas motion

blade whole consequent plasma

Air dynamical brake Various Blade plasma

Tower

Models taper canister taper canister Tower canister/joist fight

taper canister

6

Height (m) 50 65 55 65

Weight

Rotor(t) 13.8 15.9 20 32.9

Nacelle(t) 22 23 23 51

7

Tower(t) 58.6 73 65 80



4) The land layout of the turbines

The proposed project will arrange all the turbines in a Quincunx shape within the site.

Base on analysis of the anemometry data, simulation of the wind resource distribution within the site by using the WASP software, and the proposed project, also took into account the topography and geographic feature, firstly had all the turbines arranged at the points where were marked with most abundant wind resources, and then, the initial turbine layouts were adjusted for fully utilizing the wind resources at the site. The layout plan was finalized by optimizing and adjusting the previous arrangements till to achieve largest amount of electricity output. As a result, the Quincunx-shape arrangement for the turbines layout was adopted for the proposed project. The annual output is then estimated based on the WASP software applied on 1:10000 relief map as well as the data collected at the points where the turbines installed.

The proposed project currently is under preparation for site construction, and for international equipment tendering.

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 proposed project is additional and therefore not the baseline scenario as it faces some key financial and technological barriers. In the absence of the additional revenues or funding, possibly from the CDM project activity, the proposed project will have the difficulties to be implemented and the GHG emission reductions generated by the proposed project is unlikely to occur. The major barriers the proposed project faces are as follows:

Compared to those local typical grid-connected coal-fired and gas-fired power plants, the grid-connected wind power project has obvious disadvantages, including much higher cost in per KW installation and initial capital investment, and much shorter annual operational period. Despite the preferential bus-bar tariff(RMB0.528 yuan/kWh)1, the IRR of the total investment of the proposed project is only 7.54%, and the IRR of the equity investment of the proposed project is 8.26%, which makes this proposed project economically and commercially unviable, therefore it appears no attractions to the investors.

Compared to those conventional commercial power plants, technology know-how requirements for

renewable energy power generation are much higher. Some key components of the wind turbines of the proposed project need to be imported from the overseas, resulting in an increased cost not only in the investment but also the maintenance services for the turbines. Furthermore, as it will be greatly influenced by climate conditions at the site area, the wind power project also is featured in an unstable output during a certain time period, resulting in a challenge to the local grid for its overall constant operations. Therefore, in a technical sense, a new renewable power investment project has little attractions to grid managers and power project developers when it compare to the conventional commercial power plants.

1 From October 1, 2004, the bus-bar tariff of new incremental coal-fired unit(including co-generation unit) is RMB 0.405 yuan (without desulfurization equipment, including tax) and RMB 0.420 yuan(with desulfurization equipment, including tax). New incremental oil-fired unit is RMB 0.4716 yuan (including tax). (Source: Notice of related issues on bus-bar tariff adjustment and management issued by the Pricing Bureau of Guangdong Province)



Considering the total amount of renewable energy power output, at present, only accounts for less than 1% of the total amount of power output in the PRC, which demonstrates that the wind power projects are the less option when they compare to those conventional fossil fuel power plants. Hence, without the additional revenues or funding, possibly from the CDM project activity, the GHG emission reduction of the proposed project is unlikely to occur.

A.4.4.1. Estimated amount of emission reductions over the chosen crediting period: >> It is estimated that the proposed project activities will generate emission reductions, within the Guangdong Power Grid via the Shantou Power Grid where the proposed project connected into, in a total amount of 679,390 tCO2e over a 10-year crediting period (October 2006-September 2016). The emission reductions are achieved by avoiding CO2 emissions from electricity productions of those fossil fuel-fired power plants connected into the Guangdong Power Grid. The annual estimation of emission reductions are as follows:

Table3. The estimation of the annual emission reductions

Years

Estimated emission reductions in tCO2 e

2006 (from 1 Oct to 31 Dec) 16,985 2007 67,939 2008 67,939 2009 67,939 2010 67,939 2011 67,939 2012 67,939 2013 67,939 2014 67,939 2015 67,939 2016 (from 1 Jan to 30 Sept) 50,954 Total estimated reductions (tCO2e): 679,390 Number of crediting years: 10 Annual average estimated reductions over the crediting period (tCO2e):

67,939

A.4.5. Public funding of the project activity: >> There is no public funding involved in this proposed project.



SECTION B. Application of a baseline methodology B.1. Title and reference of the approved baseline methodology applied to the project activity: >> It is proposed that the AM0005 Baseline Methodology (barrier analysis, baseline scenario development and baseline emission rate using combined margin) for small grid-connected zero-emissions renewable electricity generation, which was approved by EB-12 (27-28 November 2003), is applied to the proposed project. For more information regarding the proposal and its consideration by the Executive board please refer to case NM0023: “El Gallo Hydroelectric Project” on http://cdm.unfccc.int/methodologies/approved. B.1.1. Justification of the choice of the methodology and why it is applicable to the project activity: >> Applying the AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation to the proposed project is justified because:

The proposed project matches the applicability criteria defined in the AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation, and the additional criteria suggested by the EB;

There are sufficient evidences that renewable energy projects in China face many barriers and lack of effective support policies when compared to those traditional energy sources;

The proposed project has also faced financial and investment barriers for which the project developer has sought a variety of means to overcome; and

The proposed project faces additional technological, operational and institutional barriers which need to be overcome.

Using the applicability criteria of the AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid connected zero-emissions renewable electricity generation and the additional conditions defined by the EB, the methodology is applicable to the proposed project because:

A. Sufficient information exists to demonstrate in a transparent and conservative manner that the proposed project faces barriers and its registration as a CDM project is helping it to overcome these barriers;

B. Sufficient information exists to demonstrate in a transparent and conservative manner that the type of activity undertaken in the proposed project is not common practice in China at the present time;

C. The proposed project will displace grid electricity that would otherwise be provided by the operation and expansion of the generating plant connected into the grid. Data on the Guangdong Power Grid is available and regularly updated.

D. The Guangdong Power Grid is not dominated by those generating sources with zero or low operating costs such hydro, geothermal, wind, solar, nuclear, and low cost biomass. The total installed capacity of the Guangdong Power Grid was 39.2GW in 2003, of which fuel-fired power (includes coal-fired



power, oil-fired power, gas-fired power and waste incineration power generation) accounted for 69.5%, the hydropower (includes conventional hydropower plant and pumped storage power plant) accounted for 20.7%, while the nuclear power accounted for 9.6% and wind power accounts for 0.2% (Data source: China Electric Power Yearbook 2004 Edition). It is quite Clear that the hydropower, nuclear power and wind power do not dominate the generation mix of the Guangdong Power Grid.

E. The total amount of the electricity output imported/exported are included in the electricity generation data used for calculating and monitoring the baseline emission factor to avoid potential leakage. As per the AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation, the impact of electricity imported/exported on the emission factor of the grid, EFy, is considered.

The electricity output generated by the proposed project will be sold into the Guangdong Power Grid, a main sub-grid of the South China Power Grid. The total installed capacity and power generation of the Guangdong Power Grid accounted for about 54.8% and 55.6% of those of the South China Power Grid in 2003. The Guangdong Power Grid is also the first provincial power grid that has achieved a unified dispatching operation. The activities for the electricity importing/exporting within the Guangdong Power Grid are quite vigorous as shown in table 4.

In matter of fact, due to the power shortages, the Guangdong Power Grid imports large amount of electricity from the Yunnan Power Grid, the Guizhou Power Grid and the Guangxi Power Grid within South China Power Grid. In addition, the power companies from Guangdong province also made some large investments for generating electricity sold into the Guangdong Power Grid, namely the Tianshengqiao First Step Hydropower Plant and the Tianshengqiao Second Step Hydropower Plant in the Guangxi province, the Liyu River Sub-critical coal-fired Power Plant in the Hunan province, and the Three Gorges Hydropower Plant. While importing the electricity, the Guangdong Power Grid also exports electricity to Hongkong and Macao.

Table4. Electricity import/export data of the Guangdong Power Grid in 2003

Power Grid/Power Plant Category Electricity

Imported(+)/Exported(-) (Unit: GWh)

Hunan Liyu River Sub-critical Coal-fired Power Plant Coal-fired Power +1768.26

Three Gorge Hydropower Plant Hydropower +10.60

Hongkong Power Grid (including the Shekou Power Plant) Mixed +3006.62

Tianshengqiao First Step Hydropower Plant in Guangxi Province Hydropower +3195.83

Tianshengqiao Second Step Hydropower Plant in Guangxi Province Hydropower +5088.38

Yunnan Power Grid Mixed +5895.36

Guizhou Power Grid Mixed +5333.95 Guangxi Power Grid (not including Tianshengqiao First Step Hydropower Plant in Guangxi Province and Tianshengqiao second Step Hydropower Plant in Guangxi Province)

Mixed +245.38

Hunan Power Grid Mixed -97.05

Three Gorge Hydropower Plant Hydropower -0.60

Macao Power Grid Mixed -179.42

Hongkong Power Grid Nuclear Power -10068.67

Hongkong Power Grid Pumped storage power -2182.52

Guangxi Power Grid Mixed -82.82

(Data Source: China Electric Power Yearbook 2004 Edition, P688)



As shown in Table 4, the total amount of the electricity imported for the 2003 is about 24.54TWh which was equivalent to 12.9% of total amount of the electricity generation within the Guangdong Power Grid (189.58TWh), while the total amount of the electricity exported was about 12.61TWh, accounted about 6.65% of total amount of the electricity generated by the Guangdong Power Grid. The above data shows that the electricity imported/exported has a great impact to the grid emission factor for the Guangdong Power Grid.

F. The proposed project will lead to a capacity increase of 45.05MW, lower than the EB AM0005

Baseline methodology requirement of 60MW. Therefore the proposed project will have a very small impact on the build margin and operating margin.

B.2. Description of how the methodology is applied in the context of the project activity: >> Both parts of the baseline methodology, as detailed in the AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation, are applied to the proposed project: 1) First, establishing the additionality of the proposed project. Relevant arguments are presented both in

the specific context of the proposed project (Step M1) and in the general context of the Guangdong Power Grid where the proposed project connected into within (Step M2). Additionality of the proposed project is to be established based on the barrier analysis.

2) Second, defining a conservative baseline scenario and an algorithm for calculating the corresponding

baseline emission factor. A justification for the baseline scenario and a transparent and conservative estimation of the baseline emission factor is carried out (Step M3), using the algorithm applied in the AM0005 Methodology and the data provided in Annex 3.

Part 1. Additionality argument for the proposed project based on barrier analysis. Methodology Step M1. Analyze barriers to the proposed project This methodology seeks to establish that the barriers would have prevented the project from being undertaken or completed (Sub-step M1(a)), and to demonstrate that by registering the proposed project as a CDM activity these barriers are alleviated and the proposed project enabled (Sub-step M1(b)). Being a registered CDM project activity, by successfully negotiating a formal emission reduction purchase agreement (ERPA), has both financial and institutional benefits that will improve the viability of the proposed project. Sub-step M1(a). Identify the relevant barriers to the proposed project activity. The primary relevant barriers to the project are: Investment barriers: Guangdong province is one of the pioneers of wind power development in China and the Nan’ao County, especially, is one of the most active regions for wind investments. In matter of fact, the Country established a Wind Power Development Promotion Center in October 1986. Up to date, there six enterprises both from overseas and domestic, have invested in the wind power projects in the Nan’ao Island, resulting in a total installation of 132 wind turbines with a total amount of installation capacity of 54MW. The total amount of the annual wind power output of the Nan’ao Island is about140GWh, which



is ranked the second place in China2. Wind power developments in Guangdong Province (including Nan’ao Island) have historically been supported by government preferential policies and financial incentives, including the income tax exemptions and/or reductions, bus-bar tariff and favorable mixed loan of credit. Bus-bar tariff for those existing wind power projects were a kind of high as shown in Table 5. Therefore, these existing projects could not demonstrate that wind power projects are commercially and financially viable.

Table 53. Bus-bar Tariff for existing wind power projects in Guangdong Province

Name Bus-bar tariff

(Yuan/kWh) Average bus-bar tariff of the

Guangdong Power Grid Guangdong Shanwei Honghaiwan Windfarm 0.743 Guangdong Huilai Windfarm 0.74 Guangdong Huilai Haiwanshi Windfarm Guangdong Nan’ao Zhenneng Windfarm

0.65 0.62

0.39 Yuan/kWh 4

The Guangdong Power Grid bears the price difference between the higher bus-bar tariff of wind power and the average bus-bar tariff within the Guangdong Power Grid. At present, the average bus-bar tariff for the Guangdong Power Grid is 0.39 Yuan/kWh, which means Guangdong Power Grid must pay the differences in a total amount of RMB13-50 million Yuan per year for wind power generated from the existing wind power projects in the Nan’ao County. Although Guangdong province is a relatively rich province in China, it is still be a burden for the Guangdong Power Grid to bear without difficulties. As a result, the Guangdong provincial government stipulated, in year 2001, that “bus-bar tariff for the wind power should not be higher than the average amount of power sales price within the Guandong Power Grid”.5 The current bus-bar tariff for the newly built wind power projects is therefore caped to a price of 0.528 Yuan/kWh6 (VAT included). Such a price will also be applied to the proposed project. It is obvious that the price adopted by the proposed project will be higher than those bus-bar tariffs of coal-fired power plants. It however will be lower than those bus-bar tariffs of the existing wind power projects in Guangdong province. For the proposed project, the total investment is estimated about RMB 417 million yuan (equivalent to US$50.42 million), and the unit investment cost is about 9,258 Yuan/kW. The equity/debt ratio is 33/67. The interest rate (for a long term loan more than 5 years) is 6.12% with a 15-year repayment period. In addition, as the wind power technology is regarded as an advanced technology in China, and it’s fully supported by a series of preferential policies. As a result, the proposed project will enjoy a set of preferential policies and incentives, including: exemption of income tax for the first 5 years, 15% income tax rate after the first 5 years (more than 50% of the savings over the normal 33% of income tax rate), and 8.5% VAT (50% lower than the normal VAT rate of 17%). Although with these policy supports, the overall financial performances for the proposed project not yet improved substantially. The total investment IRR of the proposed project after tax is about 7.54%, still lower than the China’s project IRR benchmark 8% for power sector and 12% for social acceptable. The IRR for the equity capital is 8.26%, which is lower than the project IRR benchmark 10% for power sector.

2 http://biz.163.com/41127/5/1673ES0T00020QC3.html 3 http://www.newenergy.org.cn/energy/wind/read.asp?id=605 4 www.gxzx.gov.cn 5 http://www.gd.xinhuanet.com/newscenter/2003-12/04/content_1290343.htm 6 Document No.[2004]110, Guangdong Provincial Pricing Bureau

http://www.baidu.com/s?lm=0&si=&rn=10&ie=gb2312&ct=0&wd=site%3Awww%2Egxzx%2Egov%2Ecn+%B9%E3%B6%AB%B5%E7%CD%F8%C6%BD%BE%F9%C9%CF%CD%F8%B5%E7%BC%DB&cl=2



It is very clearly that, without the additional revenues or funding, possibly from the CDM activities, the proposed project might not be moved forward successfully for the construction and operation as planed. The project owner, Huaneng New Energy Industrial Co. Ltd is aware of the CDM as a business opportunity to overcome the investment barriers in earlier 2005 during the feasibility study phase of the proposed project, and had made its statement in the Feasibility Study Report on their intention to develop the proposed project as the CDM project as a mean to overcome the investment barriers, so as to for achieving a self-sustained investment objective. The Feasibility Study Report is available subject to the request of the DOE. Technology Barriers: While the 600kW turbine had achieved localization in China, the 850kW turbine, however, achieved only about 70% localization and yet far behind commercialization, resulting in a higher marketing demanding for technology transfer from overseas. Technological risk of wind power project in China is therefore regarded high, as it’s lacking of experienced technicians for the operation and maintenance of imported turbine in most cases. This has been made evident by a number of cases including the registered Huitengxile Windfarm Project as stated in the PDD, “At one point, 60% of the 10 installed Zond turbines and all the gearboxes of the Micon Turbines needed to be replaced.” Based on this analysis, it is expected the proposed project will face more challenges to overcome the turbine operations and maintenances because the proposed project is sited in an island where sounded by mountains. HNEIC clearly understands these technological challenges, and see CDM development as a viable way to generate additional funding and/or revenues to overcome these barriers and risks. Common Practice: Guangdong province has abundant wind resources, and the wind resources at 50 meters height are about 1,157GW7, representing about 6GW usable wind resources for the near term. Based on the statistic data of year 2003, however, the wind resources utilized in Guangdong province was only about 834MW, accounted less than 1.4% of the total usable resources for the near term. At present, as the Guangdong province faces a power shortage, though the local government and developers are enthusiastic about wind power project development, the coal-fired power investment projects are still the prioritized technology option for the investors, which is resulted from the higher investment cost and those risks associated with the renewable energy projects. Substep M1(b). Explain how only the approval and registration of the project as a CDM activity would enable the project to overcome the identified barriers and thus be undertaken. Table 6 lists the financial indicators of the proposed project with and without the CDM revenue. With the CDM revenue, the IRR of total investment of the proposed project will be increased to 8.62% and the IRR of equity capital will be increased to 10.57%, both higher than the IRR benchmark of the power sector. In this case, the proposed project becomes financially viable. As shown by the results of the sensitivity analysis of the proposed project (table 7), with the CDM revenue, the financial indicators of the proposed project can meet the requirement of the IRR benchmark of the power sector even with some fluctuation of the bus-bar tariff and the changes in the CER price. This indicates that with the CDM revenue, the resistance of financial risks of the proposed project is significantly improved.

Table 6. Financial indicators of the proposed project (with/without CDM revenue) 7 http://www.csolar.com/bbs/detail.asp?id=227



Item Unit Without CDM

Revenue With CDM Revenue

Remark

Life time Year 21 21 To be operational 2006 2006 Project will be put into operation in the

later half year 2006 on a turbine by turbine basis.

Closing time Year 2026 2026

Installed capacity MW 45.05 45.05MW

Annual electricity generation GWh 100.965 100.965 3 months for year 2006

Bus-bar tariff RMB/kwh 0.528 0.528

Annual emission reductions tCO2e 67,939 3 months for 2006 Crediting period Year 10

CERs price Euro/ tCO2e 7.00 7.00

Exchange rate RMB/Euro 10.00 10.00

IRR of Total investment % 7.54% 8.67% After tax

IRR of equity capital % 8.26% 10.68% After tax

NPV of Total investment 104RMB -1154 1523 After tax

NPV of equity capital 104RMB -1827 562 After tax Note: 1) Preferential policies that apply to the project were considered in the calculation.

2) All spreadsheets for calculation are available for DOE.

Table 7. CDM revenue sensitivity analysis of the proposed project

Item Rate of Change IRR of Total Investment Electricity Sales Revenue CERs Price

-5% -58.5%

8.00% 8.00%

The calculation results show that the registration of the proposed project as a CDM project will help the project owner to effectively overcome financial barriers identified in substep M1(a), significantly improve its cash flow profiles, enhance the capacity of loan repayment, so as to leverage the project with the needed financial attractions to the capital market.

Moreover, the CDM revenue can be also used, if only partial, as a account reserve for the equipment maintenance of the proposed project。These can decrease the turbines’ failure rate and help offset the cost for replacing accessories, can allow faster (but often are more expensive) transportation means to shorten the time lag for accessory replacement. In addition, the CDM revenues will also enable the project owner to employ experienced technicians to operate and maintain the proposed project with the competitive salaries in the market.

The proposed project is expected to serve as a pilot wind power CDM project in the Guangdong province, and the successful implementation of the proposed project will demonstrate the viability, and a real business opportunity, of the wind power CDM project in the local business community, thus promote the wind power development for the Guangdong province.

It is also anticipated that without an additional reserve or funding possible from the CDM development activities, the proposed project will face some major challenges, including: the IRR on the total investment of the proposed project is just about 7.54%, which is lower than the industrial IRR benchmark of the power sector, which will directly result in an unfavorable situation to the proposed project to get a loan approval from the Chinese commercial banks. With an IRR lower than the industrial bench mark, an investment project is unlikely to make an financial closure with the interested lenders and investors, which could lead to a failure of the project implementation. As for the proposed project, the expected



annual revenues from 100.96GWh power sales are about RMB53.3million, and the estimated annual revenues from the CDM project activities are about RMB 4.75million, accounting for about 8.9% of the annual electricity revenue (with exchange rate 1Euro=10RMB). It is clearly stated in the Feasibility Study Report that the proposed project is only commercially viable when it’s with the CDM revenue. As a result, the HNEIC signed a consulting service agreement with the Green Capital Consulting Company, a China-based CDM developer, in the July of 2005 to mobilize the CDM development activities for the proposed project.

Methodology Step M2. Discussion of other existing activities similar to the proposed project.

The PDD of the EB registered Huitengxile Wind Project, and the OE validated Manjing Windfarm Project, provided a detailed description of wind power development situation in China. Therefore no repetition is necessary in this PDD with this regard. As shown in Table 5, the existing wind power projects in Guangdong Province developed all with higher bus-bar tariff and relatively lower level of technology compared to the proposed project, this demonstrate there are real and prohibitive barriers in developing the proposed project, the current status of wind power development in the Guangdong Province .

Part 2. Calculation of the baseline emission factor for the proposed project.

Methodology Step M3 (a). Define the baseline scenario and calculate the baseline emission factor.

In this step, the baseline scenario is established and the emission factor is calculated for the proposed project. It is quite clear that the proposed project is similar to the El Gallo project in that the impact of the proposed project activity is dispersed throughout the power sectors ongoing operation and expansion (as quantified in Annex 3, Table A3) in a manner that cannot be characterized as the deferral of a specific alternative investment. Furthermore, in accordance with the AM0005 methodology, the estimated ex-ante baseline scenario should account for the effects of the Project Activity on both the operating margin (affecting the operation of the power plants on the grid) and the build margin (delaying or avoiding construction of future power plants) and this should be modified by ex-Post analysis.

The Operating Margin Emission Factor EF_OMy is defined as the generation-weighted average emission per unit electricity generation (tCO2 /MWh) of all generating sources serving the Guangdong Power Grid, excluding those zero- or low-operating cost power plants such as hydro, geothermal, wind, low-cost biomass, nuclear and solar.

The Guangdong Power Grid is the first provincial power grid in China that has successfully achieved unified electricity dispatch operation system. While importing the electricity from other power grids, it also exports the electricity to Hongkong and Macao. Based on the analysis of the characteristics of the Guangdong Power Grid, it is reasonable that the Guangdong Power Grid serves as the baseline for the proposed project. Emission factor of the Guangdong Power Grid therefore is calculated based on statistics on Page 678-680 of the China Electric Power Yearbook 2004 Editon. Operating margin emission factor EF_OMy can be derived from formula (1).

[ ] [ ]∑∑ ∗==j yjii yiyyy GENCOEFFTGENTEMOMEF ,, //_ (1)

Where the data of Fi,y is obtained from Page 680 of the China Electric Power Yearbook 2004 Edition. The data of COEFi for coal is 24.74tC/TJ which was obtained from the findings of Prof. Wu Zongxin in Coal-Based Diversified Clean Energy Strategy. It is 5% lower than IPCC default therefore conservative. The data of COEFi for oil is the IPCC default. TGENy is the total electricity generation of the Guangdong



Power Grid excluding those low- and zero operating cost power plants. The operating margin emission factor of the Guangdong Power Grid in 2003 is calculated as 0.8089tCO2e/MWh according to the formula (See Annex 3).

As per AM0005 methodology, the emission factor of build margin EF_BMy should be estimated based on the data of five power plants built most recently or 20% of total amount of output from the newly built power generation facilities. Of these two options, the one with higher installed capacity should be used. However the real situation in China is that the operating margin data is deemed to be the business confidentiality of the power plants. Therefore it is difficult to obtain the data of five power plants built most recently. As a result, the PDD of the EB registered Huitengxile Wind Project provided an alternative method to calculate emission factor of build margin EF_BMy, i.e. using the ratio of coal fired power plants in the change of installed capacity of the most recent three years times the operating margin emission factor EF_OMy to obtain the emission factor EF_BMy. The validation report of the Huitengxile Wind Project also made clear that this alternative method is conservative, as there are two implications for the alternative method: 1) the annual average operating hours of non-fossil fuel-fired power generation technology options is same as that of fossil fuel-fired power technologies; and 2) the total amount of the electricity generated by the proposed project will displace not only those fossil fuel-fired power plants with higher emission intensity, but also those power plants with low or zero emission intensity such as hydropower.

In reality, however, the situations might be re-considered for demonstrating the conservativeness and rationality of the alternative method:

1) The total amount of the annual average operating hours of those non-fossil fuel-fired power generation technology options (except nuclear power technologies) is lower than that of fired power plant;

2) Since 1980s, China government has made great efforts in improving the electricity mix by increasing the shares of renewable power output while reducing the shares of coal-fire electricity. Nevertheless, due to enormous financial, technical and institutional barriers, up until now, such improvement has not been evident. CDM is very likely to be a useful mean to facilitate such a improvement.

In the PDD of the Huitengxile Windfarm Project, the formula used to estimate build margin emission factor EF_BMy in AM0005 is transformed from.

[ ] [ ]∑∑ ∗=k ykii yiy GENCOEFFBMEF ,, /_ (2)

to [ ] [ ]∑ −−∗=

i yyiyyfireyy CAPCAPOMEFBMEF ,3,,3, /__ (3)

Of which, ∑ is the increased/decreased installed capacity of the Guangdong Power Grid in

the most recent three years. Based on data obtained from the China Electric Power Yearbook 2004 Edition and the China Electric Power Yearbook 2001 Edition, all are positive. If negative

value of appear, set zero in calculation for conservativeness.

−i yyiCAP ,3,

yyiCAP ,3, −

yyiCAP ,3, −

It should be noted that since the total installed capacity of nuclear power plants have accounted for 9.64% of that of the Guangdong Power Grid in recent 3 years and its operating hours are much longer than that



of fuel-fired power plant, the value of EF_BMy that was derived from the product of EF_OMy and the shares of those fuel-fired electricity in the total installed capacity change in the Guangdong Power Grid in the most recent three years may be higher than the value of EF_BMy that was derived from the product of EF_OMy and the shares of fuel-fired electricity in the electricity generation change resulted from the installed capacity change in the Guangdong Power Grid in the most recent three years. For the proposed project, the smaller value of EF_BMy will be used for the conservative consideration. For the calculation of electricity generation change resulted from the installed capacity change in the Guangdong Power Grid in the most recent three years, the annual average operating hours of different types of electricity generation technologies OPi,y, was calculated based on the data of the amount of electricity output and installed capacity of different types of electricity generation technologies in the Guangdong Power Grid in 2003 (see Annex 3 for details). Then the total amount of electricity output changes resulted from the total amount of the installed capacity changes in the Guangdong Power Grid in the most recent three year is the product of OPi,y, and yyfireCAP ,3, − for the different types of electricity generation technologies. EF_BMy derived from the total amount of the electricity output changes resulted from the total amount of the installed capacity changes in the Guangdong Power Grid in the most recent three years was calculated based on formula (4).

[ ] [ ]∑ ∗∗∗= −− i yiyiyiyyfireyy OPCAPOPCAPOMEFBMEF ,3,,,3, /__ (4)

EF_BMy derived from the total amount of the installed capacity and the electricity output is separately calculated in Annex 3. EF_BMy derived from the total amount of the electricity output is adopted as more conservative. Thus, the value of the EF_BMy is 0.4525tCO2/MWh.

The CDM project developer, a China-based consulting firm, of the proposed project has been aware that using this approximate alternative method to calculate BM emission factor is not as precise as the method provided by the methodology. However, considering the data availability and the cost for acquiring the data, the ex-ante calculation of the emission reductions for the project should follow the alternative method included in the EB registered PDD of the Huitengxile Project. In the meanwhile, the CDM project developer has advised the project owner that when the data becomes available, the calculation of emission factor shall be strictly in accordance with the methodology and be validated by the DOE. This is stipulated in the monitoring plan. As per the El Gallo Project, the operating and build margin emission factor are given equal weight. Based on the formula in Step M3 in Annex 3 of the AM0005 Methodology, Baseline Combined Emission Factor is calculated,

EFy = (0.8089+0.4525)/2=0.6307(tCO2e/MWh). (5)

Based on statistic data, Table 4 summarized the electricity imports/exports data of the Guangdong Power Grid in 2003. Total power generation in 2003 of the Guangdong Power Grid is 189.58TWh. The total amount of the electricity imported is 24.54TWh in 2003, accounted for 12.9% of total electricity generation of the Guangdong Power Grid. Total electricity exported in 2003 was 12.61TWh, accounted for 6.65% of total electricity generation of the Guangdong Power Grid. This ratio indicates that the amount of the electricity imported/exported has a significant impact on the grid emission factor for the Guangdong Power Grid. In order to adjust the baseline combined emission factor EFy as per the AM0005 Baseline methodology and based on the amount of the electricity imported/exported, emission factors of the average operating margin (OM) of the Guangxi Power Grid, Yunnan Power Grid and Guizhou Power Grid were calculated. The emission factor of the electricity generation from the Liyu River Sub-critical coal-fired Power Plant will be calculated using the amount of the coal consumption of the power plants (418.6gCe/KWh), which is published in the 2004 Technical Summary of Supervising Energy Conservation in Coal-fired Power Plants of Hunan Province. The data on the electricity importing mix of



the Hongkong Power Grid is not available and the emission factor of the Hongkong Power Grid is assumed zero for conservative consideration. For the amount of the electricity exported from the Guangdong Power Grid, except that the emission factor of nuclear electricity is set to zero (this is conservative), of other electricity exported are calculated using average operating margin (OM) of the Guangdong Power Grid. Baseline combined emission factor EFy is adjusted with formula (6) as followed.

youtyyoutyinyyinyy EFTGENELEFTGENELEFEF ,,,, *)/()(*)/()( −+→ (6)

The adjusted baseline combined emission factor EFy, is 0.6729tCO2e/MWh. (see Annex 3 for details)

The annual reductions of the proposed project, ERy, are estimated in a total amount of 67,939tCO2e. And the accumulated reductions over a ten-year crediting period are therefore estimated in a total amount of 679,390tCO2e. (See Annex 3)

It is proposed that this emission factor is calculated ex-post annually in accordance with the monitoring methodology and plan (Section D) using the proposed formulae and official data and information. As per the AM0005 Methodology and using equal weighting for the calculation of operating and build margin, a Designated Operational Entity (DOE) shall determine and confirm that the baseline emission factor has been calculated in accordance with the monitoring plan. The purpose of this ex-post revision is to increase the accuracy of the baseline emission factor and increase the conservatism of the baseline.

Methodology Step M3 (b). Justify conservatism of baseline methodology in the case of the project.

Conservativeness of barrier analysis:

Wind power technology is far from the least cost technology option for electricity generation in China. The bus-bar tariff of the proposed project is RMB0.528 yuan/KWh (including VAT of 8.5%), which is higher than the average coal-fired electricity bus-bar tariff RMB0.25 yuan (including VAT of 17%) of the national grids. This is unlikely to change for the foreseeable future due to the investment, technological and institutional barriers inherent in the renewable technologies.

With the releasing of the Renewable Energy Promotion Law to be into force on January 1, 2006, which indicates some strong incentives will be provided for the future developments of renewable energy. It is clear that this newly released policy by the Chinese central government will not affect the additionality of the proposed project, as according to the ‘Clarifications on the treatment of national and/or sectoral policies and regulations (paragraph 45 (e) of the CDM Modalities and Procedures) in determining a baseline scenario’, in the EB 16th meeting report(Annex 3, page 1), ‘“Type E-” national and/or sectoral policies or regulations that have been implemented since the adoption by the COP of the CDM M&P (decision 17/CP.7, 11 November 2001) may not be taken into account in developing a baseline scenario (i.e. the baseline scenario should refer to a hypothetical situation without the national and/or sectoral policies or regulations being in place)’. (See more information at http://cdm.unfccc.int/EB/Meetings/016/eb16repan3.pdf). Therefore, the implications of Renewable Energy Promotion Law are not considered for the project. The additionality of the project will remain without change for the foreseeable future.

Conservativeness of emission factor estimation：

Emission factor of operating margin EF_OMy of the Guangdong Power Grid is calculated strictly according to the requirement of AM0005. Emission factor of build margin EF_BMy is conservatively estimated with the similar algorithm as in the PDD of Huitengxile Windfarm Project. Moreover, as per



requirement of AM0005, emission factor is adjusted based on conservative data on the amount of electricity imported/exported of the power grid. Except that EF_BMy was calculated by more conservative alternative algorithm, the calculation of combined emission factor strictly followed the algorithm and procedure of AM0005. Thus the conservative consideration of emission factor and emission reductions can be ensured.

Using ex-post monitoring methodology to update the baseline emission factor on an annual basis will improve the accuracy of the baseline emission estimation, in part by accounting for continued improvements over time in overall plant efficiency and the growing number of new construction for the low emission plants in the future. It is especially important in the case of China for adoption a ex-ante estimation for the emission reductions due to considerations as follows:

(1) An emission factor updated ex-post is better reflects the actual situation of a rapidly changes in the power sector of the PRC (the total amount of the electricity output in 2003 increased by 11%, while the GDP growth rate is about 8-9%); and

(2) The total market shares of those lower emission power plant is likely to be increased, an ex-post baseline is likely to be more conservative than a baseline estimated fixed at the outset.

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: >> As per the AM0005 Methodology, the steps M1 and M2 demonstrate that the proposed project would only occur with the successful registration as a CDM project, i.e. it is not part of the baseline. Step M3 estimates the emission factor of the displaced electricity, which is shown to be higher than the emissions of the proposed project. (As a wind power project, the GHG emission during operation of the proposed project is almost zero. Moreover the auxiliary power ratio of the wind turbines is lower than that of fossil fuel-fired power plant which means additional slight amount of emission reduction. The additional slight amount of emission reduction from lower auxiliary power ratio is neglected for conservativeness). The project is therefore both additional and reduces anthropogenic emissions of GHG below the levels that would have occurred in the absence of the registered 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: The Project Boundary that is relevant to the application of the baseline methodology defines where alternatives to the proposed project are likely to be found. For the proposed project, this is defined as the Guangdong Power Grid. The Guangdong Power Grid is the largest provincial power grid in China. The highest voltage level of the Guangdong Power Grid is 500kV. It takes the Pearl River Delta 500kV inner ring network as central part from where it reaches out into the power networks in the east, west and north. The Guangdong Power Grid is connected, via a 500kV of “Five AC and One DC” transmission lines, to the Guangxi Power Grid, Guizhou Power Grid and Yunnan Power Grid and the Liyu River Sub-critical coal-fired Power Plant in Hunan province, while connected to the Hongkong Power Grid via four exclusive 400kV transmission lines and Macao via two 110kW transmission lines. It supplies electricity to the south of Hunan province via a 110kV transmission line. The total amount of electricity of imports/exports is quite large in Guangdong Power Grid (see table 4). The impact of the imports/exports of electricity was taken into account in determining the emissions factor as per the AM0005 Methodology. The local boundary includes the turbines themselves and there is a small amount of auxiliary power that is used to support the turbines operation.



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: >> The baseline study of the proposed project was completed on 5 July 2005 by the CDM Development Division of Green Capital Consulting Company, led by Mr. Zheng Zhaoning. The study of baseline and monitoring plan received a great support by Ms. Victoria Q. Wang, the CEO of Green Capital Consulting Company, Mr. Liu Xiaobu, vice chairman, Ms. Yang Rong, and the other members of the CDM working group of the Huaneng New Energy Industrial Co. Ltd. The key individuals involved in the baseline study include:

1. Mr. Zheng Zhaoning, [email protected], Green Capital Consulting Company, Suit 2001, Building 7, Jianwai SOHO, Beijing 100022, China.

2. Ms. Pan Tao, [email protected], Green Capital Consulting Company, Suit 2001, Building 7, Jianwai SOHO, Beijing 100022, China.

3. Ms. Xia Xiaoshu, [email protected], Green Capital Consulting Company, Suit 2001, Building 7, Jianwai SOHOe, Beijing 100022, China.



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: >> 01/10/2006.

C.1.2. Expected operational lifetime of the project activity: >> 21y-0m.

C.2 Choice of the crediting period and related information: C.2.1. Renewable crediting period >> Not applicable. C.2.1.1. Starting date of the first crediting period: >> Not applicable. C.2.1.2. Length of the first crediting period: >> Not applicable.

C.2.2. Fixed crediting period: C.2.2.1. Starting date: >> 01/10/2006

C.2.2.2. Length: >> 10 y-0m.

SECTION D. Application of a monitoring methodology and plan D.1. Name and reference of approved monitoring methodology applied to the project activity: >> AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation D.2. Justification of the choice of the methodology and why it is applicable to the project activity: >>



Applying the AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation to the proposed project is justified because:

The proposed project falls into the same proposed Project Category as the El Gallo Hydroelectric project;

The monitoring methodology shall be used in conjunction with the approved AM0005 baseline methodology, which has been adopted by the proposed project.

There is sufficient evidence that the renewable energy projects in China face the major barriers and lack of effective support policies when compared to those conventional energy sources.

The proposed project has also faced financial and investment barriers for which the project developer has sought a variety of means to overcome;

The proposed project is located in a grid system which is experiencing a increased market demand and the related supply side investments, resulting in a ever changing generation mix over the time.

In line with AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation, Option 1 is chosen as the monitoring method for the proposed project activity.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 25 D.2. 1. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario >> Being as a wind power project, there no emissions from the proposed project activity were identified. Therefore it’s no entries in the following Table. 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 (Please use numbers to ease cross-referencing to D.3)

Data variable

Source of data

Data unit

Measured (m), calculated (c) or estimated (e)

Recording frequency

Proportion of data to be monitored

How will the data be archived? (electronic/ paper)

Comment

D.2.1.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.) >> Being as a wind power project, there no emissions from the proposed project activities were identified. It’s therefore no formulae included here. 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 (Please use numbers to ease cross-referencing to table D.3)

Data variable Source of data Data unit Measured (m),

calculated (c),

estimated (e),

Recording

frequency

Proportion of

data to be

monitored

How will the data

be archived? (electronic/ paper)

Comment

1. EGy Electricity supplied to the grid Electric meter MWh m

Hourly measurement and monthly recording

100% Electronic and paper Double Checked against receipt of sales

2. EFy GHG emission factor of the grid tCO2e/MWh c Yearly 100% Electronic

Calculated as a weighted sum of emission factors of Operating Margin and Build Margin

3. EF_OMy GHG emission factor of the grid (operating margin) tCO2e/M

Wh c Yearly 100% Electronic Calculated as TEMy divided by TGENy



4. EF_BMy GHG emission factor of the grid (Build margin tCO2e/M

Wh c Yearly 100% Electronic

Calculated as per the AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation taking into account local data availability

5. TEMy Total emissions of the grid tCO2 e/year c Yearly 100% Electronic

Calculated as the sum of GHG emissions of all plants excluding zero or low operating cost sources, based on the IPCC emission factor, data obtained from the China Electric Power Yearbook, and the findings of Prof. Wu Zongxin.

6. TGENy Total electricity generation of the grid excluding zero or low operating cost sources

China Electric Power Yearbook MWh c Yearly 100% Electronic

Calculated as the sum of electricity generated of the grid excluding zero- or low operating cost sources and obtained from the China Electric Power Yearbook.

7. Fi,y Fossil fuel consumption of the grid

China Electric Power Yearbook

Physical unit

m Yearly 100% ElectronicObtained from the China Electric Power Yearbook.

8. COEFi CO2 emission factor of fuel i.

Coal-Based Diversified Clean EnergyDevelopment Strategy and the IPCC Guideline

tCO2/ Physical unit of fuel

m Yearly 100% Electronic

Obtained from the latest local statistics. If not available, IPCC default values are used.

9. GENi,y Power generation of the power plant j.

China Electric Power Yearbook MWh/year m Yearly 100%

Electronic

Given the large scale of the Guangdong Power Grid and the lack of available data on the power generation of the power plants, the statistical data from the China Electric Power Yearbook is used.

10 Name of power plant Plant identification for

OM m Yearly 100% Electronic

Given the large scale of the Guangdong Power Grid and the lack of available data on the power generation of the power plants, the statistical data from the China Electric Power Yearbook is used.

11 Name of power plant Plant identification for BM m Yearly 100% Electronic

As above and the build margin is obtained from the China Electric Power Yearbook for all the incremental capacity of the last 3 years.

12 Wom and Bom

Weight factor of OM /BM m Fixed 100% Electronic Default weight factor of 0.5 is chosen.

13 - Documented evidences Once at

Validation 100% Documented evidences of the prohibitive barriers to the proposed project activity.



14 - Documented evidences Once at

Validation 100%Documented information related to the alternatives to the project, especially the diffusion data.

15 ELin,y Electricity imported from other power grid or power plant to the Guangdong Power Grid

China Electric Power Yearbook kWh m Yearly 100% Electronic

Based on the Table of Electricity Exchange of Five Provinces of South China from the China Electric Power Yearbook.

16 ELout,y Electricity exported to other power grid or power plant from the Guangdong Power Grid

China Electric Power Yearbook kWh m Yearly 100% Electronic

Based on the Table of Electricity Exchange of the Five Provinces of South China from the China Electric Power Yearbook.

17 EFin,y

GHG emission factor (average OM or conservative assumption) of the power grid or power plant that exports electricity to the Guangdong Power Grid

tCO2e/MWh c Yearly 100% Electronic

Calculated or assumed based on the data of China Electric Power Yearbook or power plants.

18 EFout,y

Average OM or specific GHG emission factor of specific technology of the Guangdong Power Grid

tCO2e/MWh c Yearly 100% Electronic

Calculated or assumed based on the data of Guangdong Power Grid or power plants.

D.2.1.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.) >> The same formula as in AM0005 Baseline Methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation are used to estimate the baseline emissions and the data for this is included in Annex 3. Baseline emissions are therefore calculated by the following formula:

yyy EFEGBE *= (7) Where:

yBE is baseline emission of the proposed project in year y.

yEG is the grid connected power generated by the proposed project in year y. And

yEF is the baseline CO2 emission factor in year y.

The full year grid-connected electricity generation is estimated to be: 100,965 MWh per annum. The baseline emission factor for 2005 is: 0.6729 tCO2e/ MWh (see Annex 3). The annual baseline emissions are estimated to be: 67,939 tCO2e (see Annex 3).

D. 2.2. Option 2: Direct monitoring of emission reductions from the project activity (values should be consistent with those in section E). This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 28 >> Option 2 is not selected as it is not appropriate to AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation.

. 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 (Please use numbers to ease cross-referencing to table D.3)

Data variable

Source of data

Data unit

Measured (m), calculated (c), estimated (e),

Recordingfrequency

Proportion of data to

be monitored

How will the data be archived?

(electronic/ paper)

Comment

D.2.2.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2 equ.): >> Option 2 is not selected as it is not appropriate to AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation. 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(Please use numbers to ease cross-referencing to table D.3)

Data variable

Source of data

Data unit

Measured (m), calculated (c) or

estimated (e)

Recordingfrequency

Proportion of data to

be monitored

How will the data be archived?

(electronic/ paper)Comment

Indirect emissions can result from project construction, transportation of materials and other upstream activities. In the case of the proposed Project, these emissions are thought to be comparable or less to the life cycle emissions which would result from the eventual construction and operation of alternative capacity. The life cycle emissions of alternative power generation plants, in particular fossil fuel-fired power plants, are typically higher than that from wind power plants when including emissions due to mining, refining and transportation of fossil fuel. The project does not claim emissions reductions from these activities. Therefore no significant net leakage from the above activities was identified. This is conservative.


PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 29 D.2.3.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.) >> Leakage is not considered in the proposed project, 0=yL . 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.) >> Since the emission from a wind power project is considered as zero, the avoided emissions, ERy, by the project activity is equal to baseline emissions BEy. Therefore the ERy during a 10-year crediting period was calculated as follows:

First, determining baseline emission factor for given year (as per AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation), unit: tCO2e/MWh. Second, monitoring grid-connected electricity generation from the proposed project (unit: MWh); Third, calculating annual emission reduction generated by the proposed project by formula (7), (unit: tCO2e)

Therefore the net reduction over the 10-year crediting period is estimated to be: 679,390 tCO2e. D.3. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored Data (Indicate table and ID number e.g. 3.-1.; 3.2.)

Uncertainty level of data (High/Medium/Low)

Explain QA/QC procedures planned for these data, or why such procedures are not necessary.

1 Low QA/QC procedures for this data are planned. The grid-connected electricity generation will be monitored by electric meter in compliance with relevant standards in China. Electricity sales invoices from the commercial metering system for power wheeled into the Shantou Power Grid (part of the Guangdong Power Grid) will also be obtained as an additional check.

2-11，15-18

Low QA/QC procedures for these data are planned. Data is acquired from China Electric Power Yearbook, IPCC Guideline and the Coal-Based Diversified Clean Energy Development Strategy. These will be checked against other sources.

.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

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. Detailed monitoring arrangements of emission reduction will be determined before the proposed project starts its operation, according to the monitoring plan. >>

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board page 30 Supported by the proposed project owner, the Huaneng New Energy Industrial Co. Ltd, the CDM developer, the Green Capital Consulting Company, as China-based consulting firm, developed a CDM manual as guideline for the project owner to manage and monitor the proposed project. In reference to the PDD of the Huitengxile project, the table of contents of the manual is as follows: 1.0 Introduction 2.0 Overall Project Management 3.0 CDM Project Management and Calculations

3.1 Data to be monitored and recorded (as per the PDD) 3.2 Emissions Reduction calculation for the Project 3.3 Monitoring Leakage

4.0 Procedures to be followed 4.1 Monitoring Procedures 4.2 Calibration Procedures 4.3 Maintenance Procedures 4.4 Procedure for Training of Personnel engaged in this MVP

5.0 Records Keeping, Error Handling and Reporting Procedures 5.1 Records Keeping and Internal Reporting Procedure 5.2 Error Handling Procedure 5.3 External Reporting Procedure 5.4 Procedure for corrective actions arising 5.5 Change of CDM Responsible Person

6.0 Confirmation of the adoption of these CDM Operating Procedures The manual is available for validation by the DOE and will be updated and revised post-validation based on the comments from the DOE. D.5 Name of person/entity determining the monitoring methodology:

>> In accordance to AM0005 Monitoring methodology, the monitoring methodology was determined and the monitoring plan was developed by CDM Development Division of Green Capital Consulting Company by the 5 July 2005, led by Mr. Zheng Zhaoning. The study of baseline and monitoring plan received a great support by Ms. Victoria Q. Wang, the CEO of Green Capital Consulting Company, Mr. Liu Xiaobu, vice chairman, Ms. Yang Rong, and the other members of the CDM working group of the Huaneng New Energy Industrial Co. Ltd. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.



The key individuals involved is this working process include:

1. Mr. Zheng Zhaoning, [email protected], Green Capital Consulting Company, Suit 2001, Building 7, Jianwai SOHO Beijing 100022, China.

2. Ms. Pan Tao, [email protected], Green Capital Consulting Company, Suit 2001, Building 7, Jianwai SOHO, Beijing 100022, China.

3. Ms. Xia Xiaoshu, [email protected], Green Capital Consulting Company, Suit 2001, Building 7, Jianwai SOHO, Beijing 100022, China.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board SECTION E. Estimation of GHG emissions by sources E.1. Estimate of GHG emissions by sources: >> There are no emissions as this proposed project is a renewable project.

E.2. Estimated leakage: >>

As D.2.3.2, leakage is not considered in the proposed project, 0=yL .

E.3. The sum of E.1 and E.2 representing the project activity emissions: The ex-ante estimate of the sum of E1 and E2 is zero. E.4. Estimated anthropogenic emissions by sources of greenhouse gases of the baseline: >> The full year grid-connected electricity generation of the proposed project (see Annex 3 for details) is estimated about: 100.965 GWh per annum. The baseline emission factor for 2005 is: 0.6729 tCO2e/ MWh (see Annex 3). The annual reductions are estimated about: 67,939 tCO2e (see Annex 3). E.5. Difference between E.4 and E.3 representing the emission reductions of the project activity: >> E5 is calculated as (E4 – E3). With the emissions from the project (E3) being zero, the emission reductions of the project activity (E5) are equivalent to the emissions of the baseline (E4). E.6. Table providing values obtained when applying formulae above: >> The accumulated emission reduction over the 10-year crediting period is estimated to be: 679,390 tCO2e. Please refer to Annex 3 for the detailed Tables which will be updated ex-post.


PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board

The ex post calculation of baseline emission rates may only be used if proper justification is provided. Notwithstanding, the baseline emission rates shall also be calculated ex ante and reported in the CDM-PDD. The result of the application of the formulae above shall be indicated using the following tabular format.

Year

Estimation of emission reductions

generated by the Project activity

(tCO2e)

Estimation of baseline emission

reductions (tCO2 e)

Estimation of leakage (tCO2e)

Estimation of emission

reductions (tCO2 e)

2006 0 16,985 0 16,985 2007 0 67,939 0 67,939 2008 0 67,939 0 67,939 2009 0 67,939 0 67,939 2010 0 67,939 0 67,939 2011 0 67,939 0 67,939 2012 0 67,939 0 67,939 2013 0 67,939 0 67,939 2014 0 67,939 0 67,939 2015 0 67,939 0 67,939 2016 0 50,954 0 50,954 Total (t CO2e) 0 679,390 0 679,390


PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board SECTION F. Environmental impacts F.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: >> The Environmental Impact Assessment of the proposed project was completed by Environment Protection Institute of Shantou City, and approved by the Environment Protection Bureau of Shantou City. Main contents of The Environmental Impacts Assessments are summarized as followed: Construction Phase Air Quality The air pollutants during the construction of the proposed project will be primarily dusts from open sources such as construction sites, unfinished roads and exhaust gases emitted from the operation of construction equipments and vehicles. The impacts of exhaust gases such as NOx、CO、THC will be significantly lower in comparison with those of dusts. Therefore, air pollution mitigation measures will be aimed at reducing the generation of dusts. Frequent watering of exposed area or worksite of excavation to maintain surface wet, provision of vehicle washing to remove any dusting materials at the worksite, using closed and semi-closed vehicles to transport construction materials, regular maintenance of construction equipments and transportation vehicles as well as adoption of other good site practices are all such effective practices. Wastewater The wastewater discharged during the construction of the proposed project will be primarily water containing silt and sand as well as oil-containing sewage. The amount of domestic wastewater is little therefore causing minimum impact on the environment. To mitigate water pollution, pollution sources will be controlled for the reduction of pollutants. Moreover, various treatment methods will be used to mitigate the impacts of pollutants that are already generated for instance the use of a wastewater sedimentation tank placed near the excavation area. By taking these mitigating measures into account, the impact of wastewater is minimal.

Noise The noise pollution mainly originates from the construction equipments and vehicles. Since there are no large residential areas located near the wind farm, the noise impact is very limited. However, the noise level will still be strictly monitored to ensure compliance with relevant guidelines set out in the Noise Limits for Construction Site (GB 12523－90). Further mitigation measures will also be taken to reduce the noise pollution on personnel at the construction site.


PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board Solid Waste The main solid waste generated from the site will be construction waste as well as the household waste from the personnel at the site. The overall impact of solid waste on the environment is considered to be insignificant.

Ecological Impact Attributed to abundant rainfall and ample sunshine, the vegetation coverage rate of the area where the proposed project will be sited reaches 90%. Removal of some vegetation as a result of construction activities will increase the likelihood of surface runoff, which indirectly has a negative impact on agricultural ecosystems. However, as there is no rare and extinct species existing in the region, such impact is quite limited. The avoidance of the ecological impacts can be achieved through some measures for instance, use of natural mountainous environment for the construction of the turbine platform. With regard to the ecological impacts unlikely to be avoided, measures will also be taken to mitigate such impacts. Tree seeds will be planted all over the affected area as an effort to maintain the vegetation coverage rate. Operation Phase Impacts of Electromagnetic Radiation Electromagnetic radiation of high intensity could have a significant impact on human health. As the proposed project is located well away from residential areas and the radiation emitted from operating turbines is low in intensity, such radiation will do little harm to local residents. Moreover, based on the survey of residents residing close to the existing windfarm, there is no reported case of electromagnetic wave interfering with television and radio broadcasting as well as other electrical appliances. There is no impact on radar stations on Yunshen Mountain either because all these stations are located over 600m from the wind turbine. It can be concluded that impacts of electromagnetic radiation on human health and communications are both considered to be insignificant. Noise Since there are no residents living near the proposed project, noise impacts on the well-beings of local residents will be minimal. Moreover, as the proposed project will use computer operational system and the operating room has quite a distance to the wind turbines, noise impact on operators will be minimal as well. Impacts on birds Birds are rarely seen around the site because the site has been selected with due consideration for avoiding migratory bird routes. The probability of birds colliding with the turbine is very low. Therefore the impacts on birds are considered negligible. In conclusion, environmental impacts arising from this project are considered insignificant. .


PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board 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: >> Impacts are not considered significant.


PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board SECTION G. Stakeholders’ comments >> G.1. Brief description how comments by local stakeholders have been invited and compiled: >> In July 2005, the Huaneng New Energy Industrial Co. Ltd carried out a local resident survey in the Nan’ao county where the proposed project sited. As the result, the country government of Nan’ao issued a Letter of Support for the project - see G.2 for details. G.2. Summary of the comments received: >> The local resident survey was conducted through distributing and collecting responses to a questionnaire. The 1 page questionnaire contains the following sections:

1) Project introduction 2) Respondent’s basic information and education level 3) Questions on:

How do they feel about their surrounding environment? How much familiarity do they have with wind power projects? What is their attitude towards the existing wind farms in the area? What are the positive impacts the project will have on their livelihood? What are the negative impacts the proposed project will have on their livelihood? Among the perceived negative impacts, what are considered the most important,

somewhat important and the least important? What are the measures that can be taken to mitigate the negative impacts? Will the overall impact of the proposed project on their livelihood be positive,

negative or negligible? What other comments and suggestions do they have regarding the project?

4) Signature and date The survey had a 96.7% response rate (29 questionnaires returned out of 30). The following is a summary of the key findings:

Education level of the respondents: primary level (48.3%), middle level (24.1%), higher education (27.6%, returned university students for summer vacation)

Most respondents (89.7%) are satisfied with their life condition and surrounding environment

Most respondents (96.7%) have some understanding of wind power projects while another respondent has thorough understanding of wind power projects

Most respondents (89.7%) support the existing wind farms in the area Among the positive impacts the project will have on the respondents’ livelihoods,

“decrease of tariff” accounts for the highest percentage (51.7%), followed by This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.


“increase of job opportunities”(48.3%), “improvement of air quality”(37.9%), “increase of income”(20.7%), “improvement of standard of living” (24.1%). Three respondents particularly expressed their hopes for the decrease of tariff as a result of the proposed project.

34.5% of the respondents deemed that the proposed project may have negative impacts on their livelihoods while the rest expressed no opinion. Among the negative impacts mentioned, the main concerns were the impacts on the natural environment (100%), interferences with TV and other communication systems (60%) and noise (50%). Two respondents raised their concerns on the increasing amount of waste and wastewater discharge at the construction phase of the wind farm. Land-use impacts are widely considered as not important or negligible.

Three respondents believed that good engineering designs and management practices can effectively mitigate negative impacts of the project.

72.4% of the respondents deemed that the project will have little overall impact on their livelihoods and 24.1% of them deemed that the project will have overall positive impacts on their livelihoods.

100% of the respondents supported the construction of the project Conclusion The survey shows that the proposed project receives wide support from local people. This is closely linked to the fact that the majority of local residents have had some familiarity with wind power projects and they hold highly positive attitude towards the existing wind farms in the region. The respondents generally deem that the project will bring multiple benefits to their livelihoods, particularly hoping that tariff can be lower as a result of the project. Among the negative impacts, the destruction of the natural environment seems to be the prominent issue. However, as the environmental impact assessment demonstrates, negative impacts on the natural environment (such as air, vegetation) primarily occur at the construction phase of the project. Thus, these impacts will significantly lessen when the construction finishes. The other main issues are noise and interference with communication signals e.g. TV and radio. Since there is no residential area located near the wind farm and the impacts (if any) can be effectively mitigated by some measures, noise and interferences with communication systems are, as a matter of fact, perceived issues rather than real problems.



The translation of support letter from the local government with regard to the proposed project To whom it might concern: We are aware that a 45.05MW wind power project will be developed by the Huaneng New Energy Industrial Co. Ltd. in our county. Through thorough investigation and discussion, we deem that:

1) Wind power, as a type of clean energy, emits nearly no pollutants compared to those fuel-fired power plants, therefore does no harm to the local ecological environment;

2) As Guangdong Power Grid is facing power shortage, the construction and operation of the project should be able to relieve this situation in the Guangdong Province;

3) The construction and operation of the project can accelerate the development of transportation, construction material, and construction-related industries in the county driving its economy forward;

4) Since wind turbines are often perceived as attractive, the project can promote the development of the tourism of the county; and

5) The project demonstrates that the construction and operation of wind power projects can be facilitated through an international environment cooperation mechanism, known as the clean development mechanism, therefore further promotes the wind power development in the county.

To summarize, we have no doubt that the project will be conducive to the improvement of energy mix, the improvement of overall environmental quality of the Guangdong Province, and benefit the development of wind power industry in the Nan’ao County. We fully support the development and implementation of the project. The County Government of Nan’ao Bureau of Finance, Nan’ao County Bureau of Tourism, Nan’ao County Bureau of Environmental Protection, Nan’ao County Bureau of Power Supply, Nan’ao County

(Stamps)

G.3. Report on how due account was taken of any comments received: >> The residents and local government are all very supportive of the proposed project therefore there has been no need to modify the project due to the comments received.



Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: the Huaneng New Energy Industrial Co. Ltd Street/P.O.Box: No Jia 23, Fuxing Road, Haidian District, Beijing, Building: 10th ,11th floor of Huaneng Mansion City: Bejing State/Region: - Postfix/ZIP: 100036 Country: People’s Republic of China Telephone: - FAX: - E-Mail: - URL: www.hneep.com.cn Represented by: Zhao Shiming Title: President Salutation: Mr. Last Name: Zhao Middle Name: - First Name: Shiming Department: - Mobile: 1391 031 6929 Direct FAX: (8610) 6822 3990 Direct tel: (8610) 6827 3888 Personal E-Mail: [email protected]

The following are the contact details for the other Parties involved: Organization: Green Capital Consulting Company Street/P.O.Box: Jianwai SOHO Building: Suit 2001, Building 7 City: Beijing State/Region: - Postfix/ZIP: 100022 Country: People’s Republic of China Telephone: (8610) 5869 3461 FAX: (8610) 5869 3463 E-Mail: [email protected] URL: www.co2-china.com Represented by: Victoria Wang Title: CEO Salutation: Ms Last Name: Wang Middle Name: Qi First Name: Victoria Department: - Mobile: 1360 126 4769 Direct FAX: - Direct tel: - Personal E-Mail: [email protected]

Annex 2 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.


INFORMATION REGARDING PUBLIC FUNDING There is no public funding for the proposed project.



Annex 3 BASELINE INFORMATION

The following tables summarized the numerical results from the formulae listed in the AM0005 Baseline methodology (barrier analysis, baseline scenario development and baseline emission rate, using combined margin) for small grid-connected zero-emissions renewable electricity generation. The information provided by the tables includes data, data sources and the calculation process. Table A1 is the basic data of the Guangdong Power Grid in 2000 and in 2003, including installed capacities, annual electricity generation, and annual average operation period of different types of electricity generation technology options. Annual average operating hours of a specific type of electricity generation technology option =annual electricity output of a specific type of electricity generation technology option /installed capacity of a specific type of electricity generation technology option.

Table A1. Basic data of the Guangdong Power Grid in 2000 and 2003

Power generation technology option Year Installed capacity

(MW） Power generation

(TWh）

Annual average operating hours(h)

2003 5707.2 14.930 2616 Conventional 2000 7015.5 15.573 2220 2003 2400.0 2.206 919 Pumped

storage 2000 NA

2003 8107.2 17.136 2114

Hydropower

Total

2000 7015.5 15.573 2220 2003 17057.8 104.459 6124 Coal-fired

2000 NA

2003 10162.7 38.828 3821 Oil-fired

2000 NA 2003 0.0 Gas-fired

2000 NA 2003 11.0 0.064 5818 Waste

incineration 2000 0 2003 27231.4 143.351 5264

Fuel fired power

Total

2000 23013.2 104.935 4560 2003 3780.0 28.930 7653 Nuclear power

2000 1800.0 14.701 8167 2003 83.4 0.159 1906 Wind power

2000 66.9 0.136 2037 2003 39202.0 189.576 4836 Total

2000 31895.6 135.347 4243 2003 24.544 Imports from other regions

2000 NA 2003 12.611 Exports to other regions

2000 NA

Source: Page 678-680, China Electric Power Yearbook 2004;

Page 666-667, 670, China Electric Power Yearbook 2001 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02 CDM – Executive Board The way of the statistic data provided by the China Electric Power Yearbook 2004 Edition published by China Electric Power Press are very much different from the previous editions, which has provided with more detailed statistic data for the five provincial power grids (belong to the South China Power Grid). The data provided in a different way of the Guangdong Power Grid between 2003 and 2000 are illustrated in Table A1, which serves as a positive movement for the calculation of emission factor of the Guangdong Power Grid in a transparent and conservative manner.

It also should be noted that the China Electric Power Yearbook 2004 Edition provided the data information only on the amount of the coal consumption and oil consumption (except gas consumption) for the electricity generation of the five provincial power grids within the South China Power Grid, and however the information on the gas consumption was not provide. Despite there gas-fired power generation projects are currently under developments and some of them will be operational for the next 10 year, it is conservative for excluding the gas consumption in the calculation of emission factor of the Guangdong Power Grid. On the one hand, in the absence of such available statistical data, and based on the consideration that the emission factor of gas-fired power generation is less than that of coal-fired and oil-fired power generation, it is expected that gas-fired power generation accounts for a very little shares in the total amount of the electricity generation of the Guangdong Power Grid. On the other hand, if the amount of gas consumption can be monitored in the crediting period of the proposed project, emissions of gas-fired power generation will be taken into account in the ex post calculation of the power grid emission factor in order to ensure the accuracy of emission factor.

Table A2 shows the data and calculation process of simple operating margin emission factor of the South China Power Grid. It should be noted that: (1) the amount of the electricity generation used in the calculation of simple OM emission factor is 143.351 TWh (from the fossil fuel-fired power generation in 2003 in table A1), which does not include electricity generation from those zero-and low-operating power plants; (2) the amount of the electricity generation used in the calculation of average OM emission factor is 189.576 TWh (from the total electricity generation in 2003 in Table A1); (3) for the emission factors of electricity exported from the Guangdong Power Grid to other grids, if the type and the amount of electricity generation of specific power generation technology option is available, then the specific emission factor for electricity generation of specific power generation technology will be adopted. Otherwise the average OM emission factor of the Guangdong Power Grid will be adopted.



Table A2 Calculation of Simple OM Emission Factor of the Guangdong Power Grid

Item Data NCV （TJ/kt）

Emission factor（tC/TJ）

Emission （tCO2e）

Coal consumption（raw coal）（t）

47848439* 20.52** 24.74*** 89066883

Oil consumption（crude oil）（t）

8648673* 40.19** 21.10** 26891893

Simple OM 0.8089 kgCO2e/kWh = (CO2 emission from coal fired+CO2 emission from oil fired)/total fuel-fired electricity in 2003

Average OM 0.6117 kgCO2e/kWh = (CO2 emission from coal fired+CO2 emission from oil fired)/ total power generation in 2003

Data sources:

* China Electric Power Yearbook 2004 edition

** IPCC default

*** Wu Zongxin, Cheng wenying. Coal-Based Diversified Clean Energy Strategy

The conservative consideration of the BM emission factor of the Guangdong Power Grid has been demonstrated as above. The data, data resource and calculation process of the BM emission factor and average emission factor of the Guangdong Power Grid are shown in Table A3. Table A3 Calculation of BM Emission Factor and Combined Emission Factor of the Guangdong Power Grid

Change of installed Capacity

(MW)

Annual operation period

(h)

Electricity generation

(TWh)

Share of fuel-fired electricity generation

(%)

Share of Fuel-fired installed capacity

(%)

BM emission facto (ｔCO2e/ＭWh)

Combined emission factor (ｔCO2e/

ＭWh) Fuel- fired power 4218.2 5264 22.205 55.94 57.73 0.4525 0.6307Hydro-power 1091.7 2114 2.308

Nuclear power 1980 7653 15.154

Wind power 16.5 1906 0.031

Total 7306.4 39.70

Note： 1. Change of installed capacity= installed capacities of different types of power generation technology options in 2003

- installed capacities of different types of power generation technology options in 2000.（Table A1） 2. Annual operation period = average operating hours in 2003（Table A1） 3. Electricity generation =change of installed capacity*annual operation period. 4. Share of fuel-fired electricity generation=electricity generation of fuel fired power /total power generation 5. Share of fuel-fired installed capacity =change of installed capacity of fuel-fired power technology /total change of

installed capacity 6. BM emission factor=min (percentage of fuel-fired power generation *simple OM, percentage of fuel-fired power

capacity *simple OM). For conservatism. 7. Combined emission factor= 0.5*BM+0.5*simpleOM). Default wOM and wBM are both 0.5.

Due to a large amount of electricity imported/exported within the Guangdong Power Grid, the calculation of combined emission factor in table A3 needs to be adjusted based on the amount




of importing/exporting electricity actually transacted by the grid. The average OM emission factor should be the emission factor of power exported to other grids from Guangdong Power Grid.

The combined emission factor of the Guangdong Power Grid has been adjusted in accordance to the formula in AM0005 methodology (see formula A-1). In the adjustment of the combined emission factor, emission factors of the average operating margin (OM) of the Guangxi Power Grid, Yunnan Power Grid and Guizhou Power Grid were calculated. The emission factor of electricity generation from the Liyu River Sub-critical coal-fired Power Plant will be calculated using the coal consumption of electricity generation of the plant (418.6gCe/KWh), which is published in the 2004 Technical Summary of Supervising Energy Conservation in Coal-fired Power Plants of Hunan Province. Electricity importing mix from the Hongkong Power Grid is not available and the emission factor of the Hongkong Power Grid is assumed zero for conservative considerations. For the amount of electricity exported from the Guangdong Power Grid, except that the emission factor of the nuclear electricity is set to zero (this is conservative), the amount of the other electricity exported is calculated by using the average operating margin (OM) of the Guangdong Power Grid. The electricity generation of pumped storage hydropower plants is mainly originated from fuel-fired electricity; therefore the average emission factor of the Guangdong Power Grid is adopted as emission factor of pumped storage power plant. The combined emission factor of the Guangdong Power Grid after adjustment is 0.6729tCO2e/MWh.

outyyoutyinyyinyyy EFTGENELEFTGENELEFEF *)/()(*)/()( −+→

（A-1）

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

e Board page 46

ed without modifying/adding headings or logo, format or font.

Table A4 Adjustment of combine emission factor of the Guangdong Power Grid(EFy)

CDM – Executiv

This template shall not be altered. It shall be complet

Power Grid/Power Plant Electricity

Imported/Exported(GWh)

Percentage of total

electricity generation in Guangdong

Power Grid(%)

Emission factor (TCO2e/MWh) Emission(tCO2e)

Average OM emission factor of

imported/exported power(kgCO2e/kWh)

Emission factor after adjustment(kgCO2e/kWh)

Hunan Liyu River Sub-critical coal-fired Power Plant 1768.26 1.1127 1962769

Three Gorge Hydropower Plant 10.60 0 0 Hongkong Power Grid 3006.62 0 0 Tianshengqiao First Step Hydropower Plant in Guangxi Province

3195.83 0 0

Tianshengqiao Second Step Hydropower Plant in Guangxi Province

5088.38 0 0

Yunnan Power Grid 5895.36 0.5595 3298215 Guizhou Power Grid 5333.95 0.7867 4196237 Guangxi Power Grid (not including Tianshengqiao First Step Hydropower Plant in Guangxi Province and Tianshengqiao First Step Hydropower Plant in Guangxi Province)

245.38 0.4216 103441

Electricity imported

from

Total 24544.38

12.95

95606612

0.3895

Hunan Power Grid 9705 0.6117 59363 Three Gorge Hydropower Plant 60 0.6117 367 Macao Power Grid 17942 0.6117 109747 Nuclear power to Hongkong Power Grid 1006867 0.0000 0

Pumped storage power to Hongkong Power Grid 218252 0.6117 1334991

Guangxi Power Grid 8282 0.6117 50659

Electricity

exported to

Total 1261108 1555127 0.1233 0.6729

Source: China Electric Power Yearbook 2004 edition, p688



Table A5 Calculation of Average OM Emission Factor of Yunnan Power Grid




Coal Consumption（raw coal）（t）

13776671* 20.52** 24.74*** 25644413

Oil Consumption（crude oil）（t）

9746* 40.19** 21.10** 30304

Total electricity generation of Yunnan Power Grid in 2003

45.892TWh China Electric Power Yearbook 2004 edition

Average OM emission factor

0.5595 kgCO2e/kWh =(CO2 emission from coal combustion+CO2 emission from oil combustion)/total power generation in 2003

Source: * China Electric Power Yearbook 2004 edition, p682,

** IPCC default *** Wu Zongxin, Cheng wenying. Coal-Based Diversified Clean Energy Strategy

Table A6 Calculation of Emission Factor of Guizhou Power Grid

Item Data NCV

（TJ/kt） Emission factor

（tC/TJ） Emission （tCO2e）

Coal Consumption （raw coal）（t）

21647227* 20.52** 24.74*** 40294962

Oil Consumption （crude oil）（t）

23781* 40.19** 21.10** 73944

Total electricity generation of Guizhou Power Grid in 2003

51.314TWh China Electric Power Yearbook 2004 edition


0.7867 kgCO2e/kWh =(CO2 emission from coal combustion + CO2 emission from

oil combustion)/total power generation in 2003

Source: * China Electric Power Yearbook 2004 ,p 683, ** IPCC default *** Wu Zongxi, Cheng wenying. Coal-Based Diversified Clean Energy Strategy

Table A7 Calculation of Emission Factor of Guangxi Power Grid




Coal Consumption （raw coal）（t）

8217622* 20.52** 24.74*** 15296591

Oil Consumption （crude oil）（t）

10976* 40.19** 21.10** 34128

Total electricity generation of Guizhou Power Grid in 2003

36.367TWh China Electric Power Yearbook 2004


0.4216 ｔCO2e/ＭWh =(CO2 emission from coal combustion + CO2 emission from oil combustion)/total power generation in 2003

Source: * : China Electric Power Yearbook 2004 edition, p681 **: IPCC default ***: Wu Zongxin, Cheng wenying. Coal-Based Diversified Clean Energy Development Strategy



Annex 4

MONITORING PLAN

Monitoring plan is a division and schedule of a series of monitoring tasks. Monitoring tasks must be implemented according to the monitoring plan in order to ensure that the real, measurable and long-term greenhouse gas (GHG) emission reduction for the proposed project is monitored and reported.

1. What is required by the monitoring plan?

Managers of the proposed project must maintain credible, transparent, and adequate data estimation, measurement, collection, and tracking systems to maintain the information required for an audit of an emission reduction project. These records and monitoring systems are needed to allow the selected DOE to verify project performance as part of the verification and certification process. This process also reinforces that CO2 reductions are real and credible to the buyers of the Certified Emissions Reductions (CERs).

Emission reductions will be achieved through avoided power generation of fossil-fuel fired electricity due to the power generated by the proposed project. The amount of the electricity generated from the proposed project and the baseline emission factor are therefore defined as the key activities to monitor.

The monitoring plan provides the requirements and instructions for:

Establishing and maintaining the appropriate monitoring systems for electricity generated by the project;

Quality control of the measurements;

Procedures for the periodic calculation of GHG emission reductions;

Assigning monitoring responsibilities to personnel;

Data storage and filing system;

Preparing for the requirements of an independent, third party auditor/verifier.

2. Who uses the monitoring plan?

The Huaneng New Energy Industrial Co. Ltd., the proposed project owner, will use this document as guideline in monitoring of the project emission reduction performance and will adhere to the guidelines set out in this monitoring plan. This plan should be modified according to actual conditions and requirements of DOE in order to ensure that the monitoring is credible, transparent, and conservative.

3. Key definitions

The monitoring plan will use the following definitions of monitoring and verification.

Monitoring: the systematic surveillance of the project’s performance by measuring and recording performance-related indicators relevant in the context of GHG emission reductions.



Verification: the periodic ex-post auditing of monitoring results, the assessment of achieved emission reductions and of the project’s continued conformance with all relevant project criteria by a selected Designated Operational Entity.

4. Calibration of Meters & Metering

An agreement should be signed between the proposed project owner and Shantou Grid that defines the metering arrangements and the required quality control procedures to ensure accuracy.

The metering equipment will be properly calibrated and checked annually for accuracy.

The metering equipment shall have sufficient accuracy so that error resulting from such equipment shall not exceed +0.5% of full-scale rating.

Both Meters shall be jointly inspected and sealed on behalf of the parties concerned and shall not be interfered with by either party except in the presence of the other party or its accredited representatives.

All the meters installed shall be tested by Shantou Power Grid within 10 days after:

(a) the detection of a difference larger than the allowable error in the reading of both meters,

(b) the repair of all or part of the meter caused by the failure of one or more parts to operate in accordance with the specifications,

(c) If any errors are detected the party owning the meter shall repair, recalibrate or replace the meter giving the other party sufficient notice to allow a representative to attend during any corrective activity.

Should any previous months reading of the Main Meter be inaccurate by more than the allowable error, or otherwise functioned improperly, the grid-connected electricity generated by the proposed project shall be determined by:

(a) first, by reading Backup Meter, unless a test by either party reveals it is inaccurate;

(b) if the backup system is not with acceptable limits of accuracy or is otherwise performing improperly the proposed project owner and the Shantou Power Grid shall jointly prepare an estimate of the correct reading; and

(c) if the proposed project owner and the Shantou Power Grid fail to agree the estimate of the correct reading, then the matter will be referred for arbitration according to agreed procedures.

The electricity recorded by the Main Meters alone will suffice for the purpose of billing and emission reduction verification as long as the error in the Main Meter is within the permissible limits.

Calibration is carried out by the Shantou Power Grid with the records being provided to the proposed project owner, and these records will be maintained by the proposed project owner and the third party designated.

5. Monitoring

Data that will be monitored include:

5.1 Monitoring of Grid-connected Electricity Generated by the Proposed Project



Grid-connected electricity generated by the proposed project will be monitored through metering equipment at the substation (interconnection facility connecting the facility to the grid). The data can also be monitored and recorded at the on-site control centre using a computer system. The Main Metering System equipment will be owned, operated and maintained by the Shantou Power Grid, and the Backup Metering System equipment will be owned, operated and maintained by the proposed owner. Both meters will have the capability to be read remotely through a communication line. Detailed monitoring procedure of grid-connected electricity generated by the proposed project will be established in accordance with the Grid Connection Agreement.

The meter reading will be readily accessible for DOE. Calibration tests records will be maintain for verification.

5.2 Monitoring of the data needed to calculate the baseline emission factor

Data being required to calculate the baseline emissions factor for the Guangdong Power Grid is obtained from the China Electric Power Yearbook, Coal-Based Diversified Clean Energy Strategy, Revised IPCC Guideline 1996 and the 2004 Technical Summary of Supervising Energy Conservation in Coal-fired Power Plants of Hunan Province. The proposed project owner should collect and documented the latest China Electric Power Yearbook annually. If data for determining the baseline emission factor are no longer provided by the China Electric Power Yearbook, the proposed project owner should notify the CDM developer of the proposed project, Green Capital Consulting Company, or other qualified entity to redesign the access to obtain the data to calculate the conservative baseline emission factor of the project boundary

5.3 The data required to estimate the impact of the imports/exports of the local power grid on the baseline emissions factor.

As per 5.2 above.

5.4 Quality Assurance and Quality Control

The quality assurance and quality control procedures for recording, maintaining and archiving data shall be improved as part of this CDM project activity. This is an on-going process which will be ensured through the CDM mechanism in terms of the need for verification of the emissions on an annual basis according to this Project Design Document and the CDM manual.

6. Data Management System

This provides information on record keeping of the data collected during monitoring. Record keeping is the most important exercise in relation to the monitoring process. Without accurate and efficient record keeping, project emission reductions cannot be verified. Below follows an outline of how project related records will be managed.

Overall responsibility for monitoring of greenhouse gas emissions reduction will rest with the CDM responsible person of the proposed project. The CDM manual sets out the procedures for tracking information from the primary source to the end-data calculations, in paper document format. If data and information are from internet, the website must be provided. Moreover, the credibility and reliability of



those data and information from internet must be confirmed by the CDM developer, Green Capital Consulting Co., Ltd, or other qualified entities. It is the responsibility of the proposed project owner to provide additional necessary data and information for validation and verification requirements of respective DOE.

Physical documentation such as paper-based maps, diagrams and environmental impact assessment will be collated in a central place, together with this monitoring plan. In order to facilitate auditor’s reference, monitoring results will be indexed. All paper-based information will be stored by the proposed project owner and kept at least one copy.

The responsible person for the information management system for emissions reduction monitoring must be qualified as a statistician.

Table A8 below outlines the main documents relevant to monitoring and verification of the proposed project.

7. Verification Procedure

The verification procedure of the monitoring results of the project is a mandatory process required for all CDM projects. The main objective of the verification is to independently verify that the proposed project has achieved the emission reductions as reported and projected in the PDD. It is expected that the verification could be done annually.

Main verification activities include:

The proposed project owner should sign a verification service agreement with specific DOE and comply with the time framework set by CDM EB while consider of the buyer’s schedule to carry out verification activities. The proposed project owner should prepare for and conduct verification activities with high efficiency and high quality.

The proposed project owner should provide completed necessary information for verification to the DOE before and during verification activities.

The proposed project owner should cooperate with the DOE and, instruct its staff and manager to be available for interviews and respond honestly to all questions relevant to verification from the DOE.

If the proposed project owner deems that requirements of DOE beyond the scope of verification activities authorized by CDM EB, he should contact the initial CDM developer of the proposed project, Green Capital Consulting Co., Ltd, or other qualified entities to determine whether the requirements of DOE are reasonable. If the requirements are considered unreasonable, a rejection letter in a written format should be provided to the DOE with justifiable reasons. If the project owner and the DOE cannot reach an agreement on these requirements, the matter should be submitted to CDM EB or UNFCCC for arbitration.

The proposed project owner should designate a person in charge of the overall responsibility for the monitoring and verification procedure and act as the focal point for DOE.

Table A8. Main Documents on Monitoring and Verification I.D. No. Document Title Main Content Source



F-1 PDD, including the electronic spreadsheets and supporting documentation (assumptions, estimations, measurement, etc)

Calculation procedure of emission reduction and monitoring items

PDD in English and Chinese must be documented by the proposed project owner，or directly download from UNFCCC website

F-2 Monitoring Quality Control and Quality Assurance Report

Equipments and national and industry standards

Proposed project owner

F-3 The report on qualifications of the persons responsible for the monitoring and calculation

i.e. the title of a technical post, working experience etc.


F-4 The report on monitoring and checking of electricity supplied to the grid

Record based on monthly meter reading and electricity sale receipts


F-5 Record on maintenance and calibration of metering equipment

Reasons for maintenance and calibration and the precision after maintenance and calibration


F-6 The report on baseline emission factor calculation

Data sources and calculation procedure


F-7 Record on CO2 emission reduction Monthly calculation (F4×F6)


F-8 Letter of confirmation on F-2 to F-7 Make confirm of monitoring and calculation data and procedure from F-2 to F-7


F-9 Project Management Record (including data collection and management system)

Comprehensively and truly reflect the management and the operation of the proposed project




Annex 5.

List of key abbreviations

CDM Clean Development Mechanism

CDM EB CDM Executive Board

CER Certified Emission Reduction

CO2e Carbon Dioxide Equivalent

DOE Designated Operation Entity

gCe gram of standard coal equivalent

gCe/KWh gram of standard coal equivalent per kilowatt-hour

gCO2/gCe gram of carbon dioxide per gram of standard coal

GHG Greenhouse Gas

GWh Gigawatt-hour

IRR Internal Rate of Return

KWh kilowatt-hour

Mt million tonnes

MW Megawatt

NCV Net Calorific Value

NDRC National Development and Reform Commission

OM Operating Margin

O&M Operation and maintenance

PPA Power Purchase Agreement

RE Renewable Energy

TBD To Be Determined

TWh Terawatt-hour

t ton

VAT Value-added Tax



Reference IPCC (2000). Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories. http://www.ipcc-nggip.iges.or.jp/public/gp/english/ IPCC (1996). Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories. http://www.ipcc-nggip.iges.or.jp/public/gl/invs1.htm Wu Zongxin, Cheng Wenying (2001). Coalbased diversified Clean Energy Strategy. Tsinghua University Press. The World Bank (2004). Clean Development Mechanism in China: taking proactive and sustainable approach. Zheng Zhaoning, Liu Deshun (2004). Forecasting the investment cost of Wind power in China. Electric Power/Zhongguo Dianli. Vol.37, No.7, p77-80. Pan Tao, Liu Deshun (2004). CDM/JI Wind Power Project Status and China Opportunity. The 3rd World Wind Energy Conference & Renewable Energy Exhibition & the 2nd Wind Power Asia, Oct.31-Nov.4, 2004. Zhang Zhengmin (2002), incentive Policies Study of wind power in China, China Environment Press. Wang Zhanggui, Cui Rongqiang, Zhou Huang (2004). New Energy Power Generation Technology Options (2nd edition). China Electric Power Press Project Design Document (PDD) of Huitengxile Windfarm Project. Available from http://cdm.unfccc.int/Projects/registered.html Project Design Document (PDD) of Zhangbei Manjing Windfarm Project, Available from http://www.dnv.com/certification/climatechange/Projects/ProjectList.asp?Country=China Project Design Document (PDD) of Wigton Wind Farm Project. Available from http://cdm.unfccc.int/Projects/registered.html Project Design Document (PDD) of the Gangwon Wind Park Project (GaWiP). Available from http://cdm.unfccc.int/ TÜV SUD Validation Report, of the Huitengxile Windfarm Project. Available from cdm.unfccc.int

http://www.ipcc-nggip.iges.or.jp/public/gp/english/

http://www.dnv.com/certification/climatechange/Projects/ProjectList.asp?Country=China

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