Nahar Spinning Mills Limited

3.5 MW Rice Husk Based Cogeneration

Project at Nahar Spinning Mills Ltd.









Project Design Document
CONTENTS

A. General description of project activity

B. Baseline methodology

C. Duration of the project activity / Crediting period

D. Monitoring methodology and plan

E. Calculation of GHG emission reductions by sources

F. Environmental impacts

G. Stakeholders comments

Annexes

Annex 1: Information on participants in the project activity

Annex 2: Information regarding public funding

Annex-3: Baseline Data

Appendix

Appendix A: Abbreviations
Appendix B: Reference List
Enclosures

Enclosure: Calculations

A. General description of project activity
A.1 Title of the project activity:
3.5 MW Rice Husk based Cogeneration Project at Nahar Spinning Mills Ltd.
A.2 Description of the project activity:
Purpose
The purpose of the project activity is to utilize rice husk available in the region for effective
generation of electricity for in-house consumption. The project activity is the part of cogeneration
activity involving generation of electricity and steam for captive consumption. The project activity
will indirectly help in reducing the power deficit in the state of Punjab and conserve natural
resources like coal.
Salient features of the project
Nahar Spinning Mills Ltd. (NSML), manufacturer of cotton yarn, synthetic yarn and hosiery
knitwear is the promoter of the project activity. The major equipments of the project activity will
comprise a new 3.5 MW condensing cum extraction turbine and will replace the three existing low-
pressure boilers with a new boiler of 30 tonnes per hour (TPH) steam generation capacity at 67
atmosphere
1
(atm.) pressure.
Present Scenario
The total power requirement of the spinning mill is being met by Punjab State Electricity Board
(PSEB) grid and total process steam requirement of around 21.5 TPH at 8 atm. is being met by
existing three nos. of low pressure Atmospheric Fluidized Bed Combustion (AFBC) boilers, which
are fed with rice husk. Diesel generator sets are being used as a standby provision for power.
Project Scenario
The project activity, which is a carbon neutral fuel based cogeneration plant, generates electricity
in addition to steam to meet NSMLs captive electricity requirement thereby displacing an
equivalent amount of electricity the plant would have drawn from the PSEB grid. Diesel generator
sets will continue to be used as standby.
Turbine details Steam Pressure Steam Temperature Gross power
generation
1 No. X 3.5 MW 64 atm. 480
o
C 3500 kW


1
1 atmosphere = 1.033 kg/cm
2



Boiler details Pressure Temperature Steam (TPH)
1 No. high efficiency boiler 67 atm. 485
o
C 30 TPH
Availability of rice husk
Punjab - the grain basket of India, is the major agricultural State of the country. Paddy (rice
cultivation) is an important cash crop for the state. Punjab produced 8.88 million tonnes of paddy
during the year 2002-03
2
, At present the number of rice mills in the state is stated to be more than
3000
3
. Rice husk from these mills is available in plenty but it is utilised in-efficiently in furnaces
and low efficiency boilers by most of the textile and paper industries in Punjab for meeting their
steam requirements.
The current requirement of 80-90 tonnes/day of rice husk at NSML is going to increase by around
100 % with the new cogeneration scheme. The entire rice husk requirement for the project activity
will be met from the rice mills located within a radius of 50 kms from the site.
Projects contribution to sustainable development
This project activity has excellent contribution towards sustainable development and addresses the
key issues:
Environmental well-being
Substituting the electricity requirement from grid by cogeneration scheme thereby
eliminating the generation of equivalent quantum of electricity using conventional fuel
feeding the state grid.
Conserving coal and other non-renewable natural resource
Mitigating the emission of GHG (CO
2
) as rice husk is a carbon neutral fuel
Socio-economic well being
Saving the power at grid and allowing it to be diverted to other needy sections of the
economy
Contributing to a small increase in the local employment by employing skilled and un-
skilled personnel for operation and maintenance of the equipment.
Adopting an advanced and sustainable technology for long term benefits.
Helping to abridge the gap of electricity demand and supply at local level
A.3. Project participants
Project Promoter and official contact for project activity - Nahar Spinning Mills Limited,
Ludhiana, Punjab, India
(Detailed information of project participants is given in Annex 1)

2
Source: Department of Agriculture, Govt. of Punjab
3
http://www.tribuneindia.com/2004/20040408/biz.htm

A.4 Technical description of the project activity:
A.4.1 Location of the project activity:
A.4.1.1 Host country Party: India
A.4.1.2 Region/State/Province etc.: Punjab
A.4.1.3 City/Town/Community etc: Ludhiana
A.4.1.4 Detailed description of the physical location, including information allowing the unique
identification of this project activity:
The project is being implemented adjacent to the NSML manufacturing facility in Dhandari Kalan,
Ludhiana, Punjab. The site measuring about 4046 m
2
has already been acquired. The location also
has the abundant availability of skilled and semi-skilled labour and is situated at focal point in the
industrial area, just 6 km away from the Ludhiana station.
The geographical location with rail/road connectivity of Ludhiana is detailed in the maps below.

















































A.4.2 Type and category and technology of project activity
Main Category:
Type I - Renewable energy power project
Sub Category: C Thermal Energy for the User
As defined under Appendix B of the simplified modalities and procedures for small-scale CDM
project activities, this category includes biomass based co-generating systems that produce
heat and electricity for use on-site. For co-generation systems to qualify under this category, the
sum of all forms of energy output shall not exceed 45 MW
thermal
[rating for the primary boiler shall
not exceed 45 MW
thermal
]. This project activity clearly qualifies in the above category since the net
thermal energy output from the project activity is approximately 25 MW
thermal
(< 45 MW
thermal
).
The power requirement for operating the process plant at NSML is about 3.5 MW. Presently the
power requirement is met by supplies from Punjab State Electricity Board (PSEB). NSML is setting
up the rice husk based cogeneration plant to meet its steam and power requirement from captive
sources. The electricity produced by the project activity will replace the grid supply.
Technology employed for the project activity
The proposed plant will have one condensing cum extraction turbine along with a 30 TPH high-
pressure boiler with steam parameters of 67 atm. and 485
o
C. The proposed boiler is of modern
design with membrane furnace walls, atmospheric fluidised bed suitable for outdoor installation
with electrostatic precipitators for dust collection. Uninterrupted flow of rice husk to the boiler will
be enabled by a twin bunker system located in front of the boiler. In case of exigencies of biomass
fuel scarcity, NSML proposes to use coal as fuel. The plant has three-days storage capacity for rice
husk.
Fuel Handling System: Rice husk will be loaded in the twin type bunkers, installed near the boiler
with the help of conveyor belts. One drag chain conveyor for each bunker will be provided for
mixing of fuel in the twin bunker. Feeding of rice husk from bunker to drag chain will be through
rotary feeder. Rice husk will be fed to the boiler by pneumatic conveyor. The total capacity of fuel
handling system is 12 TPH.
Monitoring of rice husk quantity fed as fuel is done at these bunkers/ silos using level assessment.
For generating maximum of 100 % steaming capacity of the boiler at rated parameters, about 7.7
TPH of Rice husk (100 % Rice husk firing) is required.
The plant will also have coal handling facilities with necessary crushers and conveyors to meet the
requirement in case of exigencies of biomass fuel scarcity.
The plant will have Distributed Control System (DCS)/Supervisory Control And Data Acquisition
(SCADA) for operation and will generate a gross output of 3500 kW at the generator terminals. The

power generation in the cogeneration plant will be at 11 kV level. The internal consumption
requirements will be met by stepping down the voltage level to 415 V.
No transfer of technology is involved to host country because technology is available within India
from reputed manufacturers.
Ultimate analysis of rice husk used as fuel
4

Parameter Content (%w/w)
Carbon 36.70 %
Hydrogen 3.00 %
Oxygen 31.20 %
Nitrogen 1.00 %
Sulphur 0.00 %
Moisture 10.00 %
Ash 18.00 %
Gross Calorific Value 3150 Kcal/Kg
The plant is designed with all other auxiliary plant systems like:
Rice husk and coal handling system
Ash handling system
Air pollution control devices
Water system consists of following sub-systems:
Raw water system
Circulating water system
Condensate system
Water treatment system
Service and potable water system
Compressed air system
Fire protection system

4
As per the analysis report available with NSML


Air conditioning and ventilation system
Complete electrical system for power plant including, instrumentation and control systems
etc.
A.4.3 Brief statement on how anthropogenic emissions of greenhouse gases (GHGs) by
sources are to be reduced by the proposed CDM project activity:
The proposed cogeneration plant will reduce anthropogenic GHG emissions by displacing fossil
fuel based electricity generation with environmentally sustainable resource, rice husk (carbon
neutral), which is a renewable biomass. The project activity leads to GHG on-site emissions in the
form CO
2
from combustion of rice husk which will be consumed by paddy plantations and other
plant species, representing a cyclic process of carbon sequestration. Since, the rice husk contains
only negligible quantities of other elements like Nitrogen, Sulphur etc. release of other GHGs are
considered as negligible.
In the last 10 years of operation of the existing boilers for process steam generation, NSML has
never faced any shortage of rice husk. Although the project activity will entail approximately
double the amount of rice husk consumption compared to the pre-project scenario, there is almost
no possibility of rice husk supply shortage going by the excess availability of the same in the
region. No transmission and distribution losses are considered since the project will supply power
at a short distance.
A conventional electrical energy equivalent of 261.12 Million kWh for a period of 10 years in
Punjab would be replaced by the electricity from the proposed 3.5 MW non-conventional
renewable resource (rice husk) based cogeneration plant with CO
2
emission reduction of 222,670
tonnes in a period of 10 years.
In the absence of the project activity, the same energy load would have been taken up by state grid
comprised primarily of thermal power plants and emission of CO
2
would have occurred due to
combustion of conventional fuels like coal / gas.
Percentage generation from grid feeding sources
5
(Year: 2002-03)
Coal-55.03 %
Gas-6.98 %
Hydro-33.70 %
Nuclear-1.61 %
Unknown-2.69 %
The power sector profile as per Ministry of Power, for Northern Region
6
gives the energy shortage
(%) and peak deficit (%) for the state of Punjab as shown below.

5
Source: Punjab State Electricity Regulatory Commission (PSERC)-tariff order for PSEB-FY2003-04

6
http://powermin.nic.in/indian_electricity_scenario/pdf/NR0105.pdf


As per Ministry of Power, Punjab recorded 6.7 % peak deficit and 5.9 % energy shortage during
2003-04. As per the 16
th
Electric Power Survey of India, conducted by Central Electrical Authority
(CEA), the growth in energy requirement for Punjab is expected to be 7.05 % between 2002 and
2007 and 6.95 % between 2007 and 2012. This leads to the conclusion that replacement of grid
electricity results in equivalent GHG (CO
2
) emission reductions related to corresponding reduction
in fossil fuel usage in the power plants feeding the grid. If such replacement is brought about by a
carbon neutral fuel like rice husk as in the project case, then project emission is zero and the entire
emission reductions due to fossil fuel reduction in grid mix gets credited to the project activity.
From the above we can conclude that the project activity results in a net reduction of GHG
emissions in the form of CO
2
emissions.
A.4.4 Public funding of the project activity
No public funding as part of project financing from parties included in Annex I is involved in the
project activity.
A.4.5 Confirmation that the small-scale project activity is not a debundled component of a
larger project activity:
According to Appendix C of Simplified Modalities & Procedures for small scale CDM project
activities, Debundling is defined as the fragmentation of a large project activity into smaller parts.
A small-scale project activity that is part of a large project activity is not eligible to use the
simplified modalities and procedures for small-scale CDM project activities.
Energy Shortage (%) & Peak Deficit (%)
0
1
2
3
4
5
6
7
1
9
9
7
-
9
8
1
9
9
8
-
9
9
1
9
9
9
-
0
0
2
0
0
0
-
0
1
2
0
0
1
-
0
2
2
0
0
2
-
0
3
2
0
0
3
-
0
4
2
0
0
4
-
0
5
0
1
2
3
4
5
6
7
8
9
10
Energy Shortage
Peak Deficit

A proposed small-scale project activity shall be deemed to be a debundled component of a large
project activity if there is a registered small-scale CDM project activity or an application to register
another small-scale CDM project activity:
With the same project participants;
In the same project category and technology/measure;
Registered within the previous 2 years; and
Whose project boundary is within 1 km of the project boundary of the proposed small-
scale activity at the closest point.
The proposed cogeneration project is not a debundled component of a large project activity as:
The project proponent do not propose another biomass power plant
The project proponent have not registered any other small scale project activity within the
previous two years; and
Project boundary is not within 1 km radius of any other proposed small-scale activity


B. Baseline methodology
B.1 Title and reference of the project category applicable to the project activity:
Main Category:
Type I - Renewable energy power project
Sub Category:
C Thermal Energy for the User
The reference has been taken from the recent list of the small-scale CDM project activity categories
contained in Appendix B of the simplified M&P for small-scale CDM project activities
B.2 Project category applicable to the project activity:
Document Appendix B of the simplified M&P for small-scale CDM project activities, provides
indicative simplified baseline and monitoring methodologies for selected small-scale CDM project
activity categories. As per this document the proposed project falls under Type I.C Thermal
Energy for the User. Baseline methodology for projects under Type I. C has been detailed in
paragraphs 18-20 of the above mentioned document. Paragraph 20 which applies to the project
activity states that for renewable energy technologies that displace electricity the simplified baseline
is the electricity consumption times the relevant emission factor calculated as described under
Category I.D, paragraph 29. Paragraph 29 states that the baseline is the kWh produced by the
renewable generating unit multiplied by an emission coefficient (measured in kgCO
2
/kWh)
calculated in a transparent and conservative manner as:
a) The average of the approximate operating margin and the build margin, where:
i. The approximate operating margin is the weighted average emissions (in kg
CO
2
equ/kWh) of all generating sources serving the system, excluding hydro,
geothermal, wind, low-cost biomass, nuclear and solar generation;
ii. The build margin is the weighted average emissions (in kg CO
2
equ/kWh) of
recent capacity additions to the system, which capacity additions are defined as the
greater (in MWh) of most recent 20% of existing plants or the 5 most recent plants.;
OR
b) The weighted average emissions (in kgCO
2
equ/kWh) of current generation mix.
Considering the available guidelines and the present project scenario, Punjab state grid has
been chosen for baseline analysis by selecting The average of the approximate operating
margin and the build margin (combined margin) for baseline calculations. Further details
of the baseline are given in Annex 3. The Operating Margin estimates the effect of the

proposed project activity on the operation of existing and or/future power plants and the
build margin estimates the effect of the proposed project activity on the building of
alternate power plants. Elements of operating and built margins are captured in the
combined margin which is chosen as representative baseline for the credit period.
B.3 Description of how the anthropogenic GHG emissions by sources are reduced below those
that would have occurred in the absence of the proposed CDM project activity
A two-step approach is followed to establish the additionality for the project activity:
Step 1- Additionality Test: The project is not a part of baseline scenario and hence different
from what otherwise would have happened
Step 2-Describing the appropriate baseline scenario and calculating the resulting GHG
reductions.
Step 1: Projects Additionality Test
In accordance with paragraph 28 of the simplified modalities and procedures for small-scale CDM
project activities, a simplified baseline and monitoring methodology listed in Appendix B may be
used for a small-scale CDM project activity if project participants are able to demonstrate to a
designated operational entity that the project activity would otherwise not be implemented due to
the existence of one or more barrier(s) listed in attachment A of Appendix. B.
It is established here that the project activity has associated barriers to its implementation which
would be overcome with the availability of carbon financing against a sale consideration of carbon
credits that would be generated once the project is implemented.
Investment barrier
The major investment barrier to the project is the perceived risk to the project in case of reduced
supply of rice husk in future since Punjab government is discouraging the cultivation of paddy in
this state due to requirement of large quantities of water for cultivation of paddy
7
. Investors are
worried that shortage in supply of rice husk in future, may lead to steep rise in prices of rice husk
which might render the project financially unstable.
This is evident from the fact that the cost of rice husk during the financial closure was around INR
1,400/ton, which has increased to more than INR 1600/ton in a period of one year
8
(an increase of
14 %). This escalation in the rice prices is expected to continue in future because of reasons
mentioned above.
Annual expenditure on rice husk (@ INR 1400/ton) = INR 73,920,000

7
http://www.punjabgov.net/roadmap1.asp

8
Documentary evidence regarding the price escalation would be shared with the validator during validation

Annual expenditure on rice husk due to increased cost (@ INR 1600/ton) = INR 84,480,000
Annual increase in expenditure due to increased cost of rice husk:
INR 84,480,000 INR 73,920,000= INR 10,560,000
Annual earnings from sale of CER (@ Euro 5/CER) = INR 6,123,425
9

This enormous increase in cost of rice husk would be significantly compensated by the proposed
carbon financing and will help to improve the sustainability of the project which will otherwise be
rendered financially unstable.
Due to high initial investment in starting the cogeneration plant and due to its associated risk
mentioned above, majority of the textile mills in Punjab rather generate steam from low-pressure
boilers to meet the process requirements and depend on the state grid for their power requirements.
This is evident from the fact that out of total co-generation potential of 150 MW in the industry
(apart from sugar industry) in the state, none has been tapped
10
. The project proponent had an
alternative to continue to purchase power from PSEB and could have invested the money (used to
install cogeneration plant) for enhancing the installed capacity of the spinning mill which would
have delivered assured higher returns in view of favourable market for textile industry in Punjab. In
spite of these factors, NSML is one such entrepreneur to initiate this GHG abatement project under
Clean Development Mechanism. It is ascertained here that, if NSML is successful in securing the
proposed carbon financing, it will help in offsetting this barrier and encourage other entrepreneurs
to come up with similar project activities.
Barriers due to prevailing practice
Analysis of power data of Punjab state shows that installed capacity is dominated by thermal (63.18
%) and hydro (32.71 %) power. Also capacity additions worth 1168 MW are planned during the X
five year plan
11
which contains 2 x 500 MW coal based thermal power plants and 168 MW hydro
power plant.
As per Punjab government the power generation potential from biomass in the state is of the order
of 1000 MW out of which only 20.5 MW (about 2 %) has been tapped. NSML will be among the
first few organisations in the textile sector in Punjab to set up a rice husk based cogeneration plant.
This illustrates the low penetration of such projects and little willingness to change the current
operating practice in the region. Implementation of the project activity is a voluntary step
undertaken by NSML with no direct or indirect mandate by law or promotional policies.

9
1 Euro = INR 55.0
10
http://punjabgovt.nic.in/Industry/ind557.htm

11
http://powermin.nic.in/power-profile-NR_files/v3_document.htm


Other Barriers
Energy is not a core business of NSML. They are mainly manufacturers of cotton yarn, synthetic
yarns and hosiery knitwear. The rice husk based cogeneration project activity is a steep
diversification from the core business fields to power sector economics, where the project
proponent has to meet challenges of techno-commercial problems associated with the project
activity.
It is estimated that, of the total number of textile mills in Punjab, only a few are successful in
commissioning of the plant due to some of the above-mentioned barriers. Moreover, Punjabs
textile industry does not have any incentive to invest in high efficiency biomass cogeneration for
electricity generation in the future. In such circumstances they will continue to use rice husk for in-
efficient burning in low pressure boilers with no electricity generation.
The information on the state of rice husk-based cogeneration suggests that the barriers discussed are
sufficient to hinder growth of the sector. While the country has a clean energy strategy, the reality
is that coal will continue to dominate in the near term and the textile industry will burn rice husk in
inefficient boilers unless financial incentives, such as carbon financing, exist.
Step 2: Baseline scenario and corresponding GHG reduction
The business as usual (BAU) for the textile industry in Punjab is not the project activity but to
continue with the industrys status quo, which is to burn rice husk in inefficient, low pressure
boilers for process steam and depend on state grid for their power requirements.
This project activity is a renewable energy project with net zero CO
2
emission due to the carbon
sequestration. Paddy re-grows at the same rate as it is being harvested, and acts as a sink for
atmospheric carbon dioxide and the net flux of CO
2
to the atmosphere is zero. An analysis of the
state grid generation mix gives the baseline emission factor of 0.85 kgCO
2
/kWh for the grid, and
the 222,670 tonnes of CO
2
emission reductions that the proposed activity will reduce over a
period of 10 years.
In view of the above mentioned prohibitive barriers and GHG emission reductions, it is understood
that the project activity is additional.
B.4 Description of the project boundary for the project activity:
As mentioned under Type I.C. of Annex-B of the simplified modalities and procedures for small-
scale CDM project activities, project boundary encompasses the physical and geographical site of
the renewable generation source. For the proposed project activity the project boundary is from the
point of fuel storage to the point of electricity supply to the spinning mill where the project
proponent has a full control. The steam generation from the cogeneration activity has been excluded
from the project boundary, as it is not included under the CDM project activity.

Thus, project boundary covers fuel storage, boiler, steam turbine generator and all other accessory
equipments. However, for the purpose of calculation of baseline emissions, Punjab state electricity
grid is also included in the boundary.
Flow chart and project boundary is illustrated in the following diagram:

Biomass
Source
Power
Generation
Unit
Emission
Sequestered
Biomass
Source
Biomass
Storage
Biomass fired
Boiler
Electricity to
Spinning Mill
Auxiliary
Consumption
Emission
Generated
Project
Boundary
Steam for
Process
Requirement at

B.5 Details of the baseline and its development:
B.5.1 Specify the baseline for the proposed project activity using a methodology specified in the
applicable project category for small-scale CDM project activities contained in Appendix B of the
simplified M&P for small-scale CDM project activities:
The state grid has been considered as the baseline since the project activity will avoid the use of
fossil fuel by existing thermal power plants for supply of power to NSML. The baseline
methodology specified in the para 29 (a) of the Appendix B of the Simplified M&P for small scale
CDM project activities The average of the approximate operating margin and the build margin of
Punjab is used for the calculation of baseline.
The calculation of the Emission Factor and corresponding CO
2
emission reductions have been done
in an excel sheet which is enclosed as Enclosure A and the same has been explained in Section E.
Baseline data has been provide in Annex 3
B.5.2 Date of completing the final draft of this baseline section
August 2004
B.5.3 Name of person/entity determining the baseline:
Nahar Spinning Mills Limited
373, Industrial Area-A
Ludhiana-141003
Punjab
India
The person/entity is also a project participant as listed in Annex 1 of this document.



C. Duration of the project activity and crediting period
C.1 Duration of the project activity:
C.1.1 Starting date of the project activity:
September 2004
C.1.2 Expected operational lifetime of the project activity:
25 years
C.2 Choice of the crediting period and related information:
C.2.1 Renewable crediting period
C.2.1.1 Starting date of the first crediting period:
C.2.1.2 Length of the first crediting
C.2.2 Fixed crediting period
C.2.2.1 Starting date: July 2005
C.2.2.2 Length (max 10 years): 10 years


D. Monitoring methodology and plan
D.1 Name and reference of approved methodology applied to the project activity:
Monitoring methodology / guideline mentioned in the Appendix B of the simplified modalities and
procedures for small scale CDM project activities in the project category Type I.C. is considered
as basis for monitoring methodology for the project activity. The document states that the
monitoring shall consist of metering the electricity generated by the renewable technology through
co-generation plant.
D.2 Justification of the choice of the methodology and why it is applicable to the project
activity:
As established in Section A.4.2 the project activity falls under Category I.C. Generation of
electricity for captive consumption using rice husk as fuel in NSMLs cogeneration plant will lead
to mitigation of GHG emissions from the fossil fuel based plants, which supply power to PSEB
grid. In order to monitor the mitigation of GHG due to at the project activity at NSML, the total
electricity produced and auxiliary consumption need to be measured. The net electricity supplied to
manufacturing facility of NSML by the project activity multiplied by emission factor for the grid
will form the baseline for the project activity.
Description of monitoring plan
The project activity will have separate meters to record the gross power produced, auxiliary power
consumed and net electricity supplied. The monitoring and verification system would mainly
comprise of these meters as far as power supplied to spinning mill is concerned. The rice husk input
is also to be monitored. Quantity of coal will also be monitored when used.
These monitoring and controls will be the part of the DCS/SCADA of the entire plant. All
monitoring and control functions will be done as per the internally accepted standards of NSML.
All instruments will be calibrated and marked at regular intervals so that the accuracy of
measurement can be ensured all the time. The quantity of emission reduction claimed by the project
will only be a fraction of the total generated emissions, which depends on the actual generation mix
of the grid

GHG SOURCES
Direct On-Site Emissions
Direct on-site emissions after implementation of the project arise from the combustion of biomass
in the boiler. These emissions mainly include CO
2
. However, the CO
2
released is very less as
compared to the amount of CO
2
taken up by the biomass during growing, therefore no net
emissions occur.
Direct Off-Site Emissions
Direct off-site emissions in the proposed project arise from the biomass transport. The same type of
CO
2
emission (leakage) occurs during transportation of coal from coal mines to respective power
plants and distance between the coal mine
12
and power plant is much higher as compared to the
average transportation distance considered between project site and biomass collection centers and
hence higher CO
2
emissions.
Indirect On-Site Emissions
The indirect on site GHG source is the consumption of energy and the emission of GHGs involved
in the construction of rice husk based power plant.
Considering the life of the cogeneration plant and the emissions to be avoided in the life span,
emissions from the above-mentioned source is too small and hence neglected.
No other indirect on-site emissions are anticipated from the project activity.
Project Parameters affecting Emission Reduction
Monitoring Approach
The general monitoring principles are based on:
Frequency
Reliability
Registration and reporting
As the emission reduction from the project are determined by the number of units supplied to the
spinning mill (and then multiplying with appropriate emission factor) it becomes important for the
project activity to monitor the net power supplied to the spinning mill on real time basis.
Net emission reductions also depend on the leakage estimated due to firing of coal in case of
exigencies. Hence the second important thing is to monitor the quantity of coal used and quantify
the power contribution from the same.

12
Coal mines situated in Bihar, Madhya Pradesh and West Bengal


Frequency of monitoring
The project developer will install all metering and check metering facilities within the plant
premises. The measurement will be recorded and monitored on a continuous basis by the project
developer.
Reliability
The amount of emission reduction is proportional to the net energy generation from the project.
Since the reliability of the monitoring system is governed by the accuracy of the measurement
system and the quality of the equipment to produce the result all power measuring instruments must
be calibrated once a year for ensuring reliability of the system. All instruments carry tag plates,
which indicate the date of calibration and the date of next calibration. Therefore the system ensures
the final generation is highly reliable.
The shift incharge will be responsible for data recording and the plant manager will ensure that data
is recorded continuously and is archived properly. Also the shift incharge will under go an
induction programme including plant operations, data monitoring, report generation etc.
Registration and reporting
Registration of data is on-line. Daily, weekly and monthly reports are prepared stating the
generation.
The other major factors, which need to be ensured and monitored are the use of rice husk and coal
Fuel related parameters:
Quantity of Rice husk used in the boiler as fuel
The rice husk received from the rice mills will be stored in the plants storage area specially
designed for such storage. The amount of rice husk entering the plant will be measured and records
of the same will be maintained. The weighing system needs to be calibrated regularly to ensure the
accuracy of the measurement. The data will be recorded for further verification. The amount of rice
husk purchased, will also be based on invoices / receipts from fuel contractors. The amount of rice
husk fed to the boiler will also be measured/monitored through level assessment at the bunkers.
Quantity of the coal used in the boiler as fuel
Coal demands a similar monitoring system in place for the amount of coal fired.
Quality of Rice husk used in the boiler
The main type of fuel proposed for the power generation is only rice husk. The properties of the
rice husk from ultimate analysis-calorific value, ash compositions etc. are already established and
will be consistent in the region.
Quality of coal fired in the boiler

The properties of the coal from ultimate analysis - calorific value and composition etc. will depend
on the quality of coal received.
Operational Parameters of the power generating Unit
Total Electricity Generated
The total electricity generated by the power project will be measured in the plant premises to the
best accuracy and will be monitored and recorded, on a continuous basis through DCS/SCADA.
Auxiliary Consumption
The electricity consumed by plant auxiliaries will be recorded in the plant premises to the best
accuracy. This will be monitored and recorded on a continuous basis through DCS. The total
quantum of electricity consumed by the auxiliaries would affect the total electricity supplied to the
spinning mill and therefore the amount of GHG reductions.
Electricity exported to the spinning mill
Net electricity exported to spinning mill would depend on total electricity generated and auxiliary
consumption.
All the above parameters / factors will demonstrate the performance of the project at any point of
time.
Verification
The performance of the rice husk based power project leads to CO
2
emission reductions. In other
words, the longer the power plant runs and supplies power to spinning mill, more would be the
emission reductions. Fully functional management information systems will be built in
DCS/SCADA so that accessing and verification of actual data are possible at any point of time. The
major activities to be verified are as under
Verification of various measurement and monitoring methods
Verification of instrument calibration methods
Verification of data generated by DCS/SCADA
Verification of measurement accuracy



D.3 Data to be monitored:
a) Parameters affecting the emission reduction potential of the project activity
ID
No.
Data type Data variable 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)
For how
long is
archived
data to be
kept?
Comment
1 Energy Total
electricity
generated
kWh M continuous Total Electronic Crediting
Period
(CP)+2 years
Measured in plant
premises and
monitored and
recorded continuously
through DCS/SCADA.
2 Energy Auxiliary
consumption
kWh M continuous Total Electronic CP+2 years -do-
3 Energy Power
supplied to
spinning mill
kWh M continuous Total Electronic CP+2 years -do-




b) Fuel related parameters affecting the project activity
ID
No
.
Data type Data variable 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)
For how
long is
archived
data to
be kept?
Comment
1 Fuel
Quantity
Type of fuel
used
- rice husk
- coal

MT M Daily >95%

Electronic CP+2
years
To be monitored at
purchase and usage.
2 Fuel Quality Net calorific
value of fuels
used
- rice husk
- coal
TJ/ton M Yearly -

Electronic CP+2
years

3 Fuel Quality CO
2
emission
coefficient of
coal
Ton
CO
2
/TJ
- Yearly - Electronic CP+2
years
IPCC value to be
considered



c) Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHG within the project
boundary and identification if and how such data will be collected and archived.
ID
number
Data
type
Data
variable
Data unit Will data be
collected on this
item? (If no,
explain).
How is data
archived?
(electronic/paper)
For how long is
data archived
to be kept?
Comment

Not applicable
d) Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored. (data items in tables
contained in section D.3 (a to c) above, as applicable)
Data

Uncertainty level of
data
(High/Medium/Low)
Are QA/QC
procedures
planned for
these data?
Outline explanation why QA/QC procedures are or are
not being planned.
D.3.(a)1 Low Yes This data will be used for calculation of emission reductions by project activity.
D.3.(a)2 Low Yes This data will be used for calculation of emission reductions by project activity.
D.3.(b)1 Low Yes This data will be used as supporting information to calculate emission reductions by project
activity.
D.3.(b)2 Low Yes This data will be used as supporting information to calculate emission reductions by project
activity
D.3.(b)3 Low No Standard IPCC values are used





D.4 Name of person/entity determining the monitoring methodology:
Nahar Spinning Mills Limited
The person/entity is also a project participant as listed in Annex 1 of this document.













E. Calculation of GHG emission reductions by sources
E.1 Formulae used:
E.1.1 Selected formulae as provided in Appendix B:
Since category I.C. does not indicate a specific formula to calculate the GHG emission reduction by
sources, the formula is described below in E.1.2
E.1.2 Description of formulae when not provided in Appendix B:
E.1.2.1Describe the formulae used to estimate anthropogenic emissions by sources of GHGs due to
the project activity within the project boundary: (for each gas, source, formulae/algorithm,
emissions in units of CO
2
equivalent)
The project activity leads to GHG on-site emissions in the form of CO
2
emissions from combustion
of rice husk
The CO
2
emissions from rice husk combustion process will be consumed by the paddy plantations,
representing a cyclic process of carbon sequestration. Since the husk contains negligible quantities
of other elements like Nitrogen, Sulphur etc. release of other GHG emissions are considered
negligible. GHG emissions during on-site construction work will be negligible and are not
accounted for. Similarly emissions associated with transportation of construction materials are
ignored.
In case of exigencies of biomass fuel scarcity, NSML proposes to use coal as fuel.
However as mentioned earlier, in the last 10 years of the operation of the existing boilers, NSML
has never faced any shortage of rice husk. Hence the uncertainties in the project emissions are
negligible. In case coal is used the CO
2
emissions during the usage of coal will be calculated in the
following manner:
Tonnes of CO
2
= Quantity of coal used in tonnes x Net calorific value of coal x CO
2
emission
coefficient of coal in kg CO
2
/TJ (IPCC value)
Diesel generator (DG) sets will be used as standby. However the emissions from the usage of DG
sets are not considered in the project activity emissions since the electricity generated by DG sets
would be monitored separately




E.1.2.2 Describe the formulae used to estimate leakage due to the project activity, where required,
for the applicable project category in Appendix B of the simplified modalities and
procedures for small-scale CDM project activities.
As prescribed in Appendix B of the Simplified Modalities and Procedure for small-scale CDM
project activities, for Category I.C leakage estimation is only required if renewable energy
technology is equipment transferred from another activity. This does not apply to the project case.
However, the only source of leakage activity identified, which contributes GHG emissions outside
the project boundary is transportation of rice husk from the supplying rice mills within a 50 km
radius to NSML.
The same type of GHG emissions occur during transportation of coal from coal mines in Bihar,
West Bengal and Madhya Pradesh to respective thermal power plants in Punjab. Since the distance
between the coalmines and power plant (avg. 1500 kms.) is much higher as compared to the
transportation distance of rice husk, the GHG emissions are higher in the earlier case. Considering
the transportation leakages for the 2 fuels, there is a net positive addition on the baseline emission
which will result in net increase in CO
2
reduction from the project. To be on conservative side, this
CO
2
emission due to coal transportation and husk transportation has not been considered while
calculating the baseline emissions and project emissions respectively.
E.1.2.3 The sum of E.1.2.1 and E.1.2.2 represents the project activity emissions:
The emissions from the project due to use of coal (if any) would give the project activity emissions.
E.1.2.4 Describe the formulae used to estimate the anthropogenic emissions by sources of GHGs
in the baseline using the baseline methodology for the applicable project category in Appendix B of
the simplified modalities and procedures for small-scale CDM project activities:
PSEB grid supplying power to NSML has been considered as the baseline. Punjabs present power
generation mix has been used to arrive at the net carbon intensity/baseline factor of the chosen grid.
As per the provisions of the methodology the emission coefficient for the electricity displaced
would be calculated in accordance with provisions of paragraph 29 (a) of Appendix B of Simplified
Modalities and Procedures for Small Scale CDM Project Activities.
The emission coefficient has been calculated in a transparent and conservative manner as:
The average of the approximate operating margin and the build margin The step-by-step
calculation of base line emission is as follows:



Step 1 : Thermal efficiency
of coal based power
plants
= 35.51 %
Step 2 : Thermal efficiency
of gas based power
plants
= 50 %
Step 3 : CO
2
emission factor
for coal
= 96.10 kg CO
2
/ GJ
Step 4 : CO
2
emission factor
for gas
= 56.10 kg CO
2
/ GJ
Step 5 : Actual emission
factor for coal
= CO
2
emission factor for coal/
Thermal efficiency of coal based
power plants (kg CO
2
/kWh)
Step 6 : Actual emission
factor for gas
= CO
2
emission factor for gas/
Thermal efficiency of gas based
power plants (kg CO
2
/kWh)
Step 7 : Net emission factor
for coal
= Actual emission factor for coal x
% of generation by coal out of
total generation excluding
renewable, hydel and nuclear
power generation. (kg CO
2
/kWh)
Step 8 : Net emission factor
for gas
= Actual emission factor for gas x
% of generation by gas out of total
generation excluding renewable,
hydel and nuclear power
generation. (kg CO
2
/kWh)
Step 9 : Net operating margin
factor for grid
= Net emission factor for coal + Net
emission factor for gas (kg
CO
2
/kWh)
Step 10 Net built margin
factor for grid
= Weighted average emissions of
recent 5 plants built (kg CO
2
/kWh)

Step 11 Combined margin
factor
= (Net operating margin factor for
grid + Net built margin factor for
grid)/2 (kg CO2/kWh)
Step 12 : Units consumed at
NSML
= Total Energy generation Total
auxiliary consumption.




Step 13 : Baseline emission = Combined margin factor x Units
consumed at NSML
Since there is a gap between demand and supply in Punjab, the power supplied to NSML in the
non-project scenario can be diverted to other utilities, in the project scenario. Hence the generation
of power at NSML from the project activity will partially fulfill the power requirement for the state
of Punjab.
If the same amount of electricity is generated by the coal and gas based power project mix, it adds
to the emissions that are ultimately getting reduced by the project activity. Hence, the baseline
calculated using above methods / scenarios would represent the realistic anthropogenic emissions
by sources that would occur in absence of the project activity.
The uncertainties in the baseline, arising out of capacity additions and deletions are already taken
into consideration during calculation of combined margin factor.
Detailed calculation has been shown in Enclosure A.
E.1.2.5 Difference between E.1.2.4 and E.1.2.3 represents the emission reductions due to the
project activity during a given period:
Following formula is used to determine Emission reduction
CO
2
emission reduction
due to project activity
=
Baseline emission

Project Activity
emission

E.2 Table providing values obtained when applying formulae above:
Using UNFCCC baseline methodology for small-scale CDM project, emission reductions by
project activity for 10 year crediting period have been calculated and tabulated as under.



Table 1 Emission Reductions
Sr.
No.
Operating
Years
Net Baseline
Emission Factor
(Kg of CO
2
/
kWh)
Baseline
Emissions
(Tonnes of
CO
2
)
Project
activity
Emissions
(Tonnes of
CO
2
)
Emission
Reductions,
(Tonnes of CO
2
)
1. 2005-2006 0.85 22,267 0 22,267
2. 2006-2007 0.85 22,267 0 22,267
3. 2007-2008 0.85 22,267 0 22,267
4. 2008-2009 0.85 22,267 0 22,267
5. 2009-2010 0.85 22,267 0 22,267
6. 2010-2011 0.85 22,267 0 22,267
7. 2011-2012 0.85 22,267 0 22,267
8. 2012-2013 0.85 22,267 0 22,267
9. 2013-2014 0.85 22,267 0 22,267
10. 2014-2015 0.85 22,267 0 22,267
Total 222,670 0 222,670
Therefore a conventional energy equivalent of 261.12 Million kWh for a period of 10 years in
Punjab would be saved by generating power from the 3.5 MW Biomass based power plant which in
turn will reduce 222,670 tonnes of CO
2
emissions considering baseline calculations.




F. Environmental impacts
F.1 If required by the host Party, documentation on the analysis of the environmental impacts
of the project activity:
The project does not fall under the purview of the Environmental Impact Assessment (EIA)
notification of the Ministry of Environment and Forest, Government of India.
However the design philosophy of this cogeneration project activity is driven by the concept of
providing the low cost energy with acceptable impact on the environment hence the environment
and safety aspects of the project activity are discussed as follows:
Particulate matter and gases
The elements polluting the air that are discharged from the proposed Cogeneration power plant are,
Dust particulate from fly ash in flue gas
Nitrogen oxide in flue gas
Sulphur di-oxide in flue gas
Electrostatic precipitator (ESP) is proposed for the plant steam generator to contain the dust
emission from plant to a level of less than 115 mg/Nm
3
. The proposed Electrostatic Precipitator
will be designed such that the dust concentration at the ESP outlet will be 115 Mg/Nm3, even
during the plant firing Coal in future. Adequate height of the stack for the 30 TPH, 67 kg/m
2
(a),
485
o
C Rice husk fired boiler, which disburses the pollutants has been has been provided as per
guidelines given by the pollution regulations, for dust and sulphur-di-oxide emissions into the
atmosphere.
The temperatures encountered in the AFBC boiler while burning the specified fuels, are low enough
not to produce nitrogen-oxides. Hence, no separate measures are taken to contain the nitrogen oxide
pollutants.



Dry fly ash
The ash will be collected manually by using Trolleys. The dry fly ash from the economiser, air
heater and ESP hoppers will be collected by dense phase ash handling system and stored in ash
bunker, will be used for land filling in the nearby lowland areas. Provision will be made in the
system for water spray to eliminate dust nuisance in the plant.
Wastewater
Effluent from water treatment plant: Hydrochloric acid and sodium hydroxide will be used as
regenerants in the proposed water treatment plant. The acid and alkali effluent generated during
the regeneration process of the ion-exchangers would be drained into a lined underground
neutralizing pit. Generally these effluents are self neutralizing. The effluent will then be pumped
into the effluent treatment ponds which form part of the main textile unit as well as cogeneration
power plants effluent disposal system. The neutralizing pit will be sized with sufficient capacity.
The rejects from plant will have high TDS which could be diluted and used for cleaning purposes in
the project activity. This water also could be used for plantation.
Chlorine in cooling water: In the condenser cooling water, residual chlorine of about 0.2 ppm is
maintained at the condenser outlet. This chlorine dosing is done mainly to prevent biological
growth in the cooling tower system. This value would not result in any chemical pollution of water
and also meets the national standards for the liquid effluent.
Steam generator blow down: pH of the blow down water would be in the range of 9.8 to 10.2 and
the temperature will be about 85
o
C. The quantity of blow down from the boiler is about 361 kg/hr,
but however, part of this will be flashed in the blow down tank and the flashed steam will be taken
to the deaerator for supplementing the steam supplied for deaerating the boiler feed water. Hence,
the actual blow down water to be released to the drains will be about 230 kg/hr and the temperature
will be about 60
o
C. As this quantity is very small, it is proposed to put the blow down into the
trench and leave it in the plant sewerage system.
Sewage from various buildings in the plant: Sewage from various buildings in the power plant area
will be conveyed through separate drains to the septic tank. The effluent from the septic tank will
be disposed in soil by providing disposing trenches. There will be no ground pollution because of
leaching due to this. Sludge will be removed occasionally and disposed off as landfill at suitable
places.



Thermal pollution: A close circuit cooling water system with cooling towers has been proposed.
This eliminates the letting out of high temperature water into the canals and prevents thermal
pollution. Blow down from the cooling tower will be trenched out and ultimately conveyed to the
drainage. Hence, there is no separate pollution on account of blow down from cooling water
system.
Noise pollution: The rotating equipment in the Power plant will be designed to operate with a total
noise level of not exceeding 90 db (A) as per the requirement of Occupational Safety and Health
Administration (OSHA) Standards. The rotating equipments are provided with silencers wherever
required to meet the noise pollution.
Monitoring
The characteristics of the effluents from the proposed plant will be monitored and maintained so as
to meet the requirements of State Pollution Control Board and the minimum national standards for
effluent from thermal power plants. Air quality monitoring will also be undertaken to ensure that
the dust pollution level is within limits.
Air Quality Monitoring Programme:
The purpose of air quality monitoring is the acquisition of data for comparison against the
prescribed minimum standards and thereby assure that the air quality is maintained within the
prescribed levels.
The following will be monitored from the stack emissions:
Suspended Particulate Matter.
It is proposed to monitor the particulate emission at the stack, once in six months to keep a
continuous check on the performance of the ESP. Adequate sampling openings will be provided in
the stack.




G. Stakeholders comments
G.1 Brief description of the process by which comments by local stakeholders have been
invited and compiled:
The 3.5 MW biomass (rice husk) based cogeneration plant is implemented by NSML. The project
activity will use biomass that is abundantly available.
The various stakeholders identified for the project activity are as under
1. Punjab State Pollution Control Board
2. Industrial associates
3. Councillor, Municipal Corporation of Ludhiana
4. Consultants
5. Equipment suppliers
Stakeholders list includes the government and non-government parties, which are involved in the
project activity at various stages. At the appropriate stage of the project development, stakeholders /
relevant bodies were involved to get the clearance
G.2 Summary of the comments received:
Stakeholders Involvement
The local community mainly comprises of other industrial associates around the project area. In
addition to this, it also includes local manpower since, the project activity will provide direct and
indirect employment opportunities to local populace thus encouraging the project activity.
The project activity will not cause any displacement or adverse social impacts on the local
population but will help in improving the quality of life for them.
Punjab State Pollution Control Board (PSPCB) has prescribed standards of environmental
compliance and monitor the adherence to the standards. NSML is in the process of getting NOC
from the PSPCB
Projects consultants are to be involved in the project activity to take care of the various pre contract
and post contract issues / activities like preparation of basic and detailed engineering documents,
preparation of tender documents, selection of vendors / suppliers, supervision of project operation,
implementation, successful commissioning and trial run.
The project proponent has received comments from its industrial associates and the area councilor,
who have communicated their appreciation for such an effort on NSMLs part. They have no



objection to the installation of the proposed cogeneration plant. The copies of the comments
received from the stakeholders would be shared with the validator during validation.
G.3 Report on how due account was taken of any comments received:
The relevant comments and important clauses mentioned in the project documents / clearances like
Feasibility Report, local clearances etc. were considered while preparing the CDM Project Design
Document.
As per UNFCCC requirement the PDD will be published at the validators web site for public
comments.




Annex 1
CONTACT INFORMATION FOR PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: Nahar Spinning Mills Limited
Street/P.O.Box: 373, Industrial Area-A
Building: --
City: Ludhiana
State/Region: Punjab
Postcode/ZIP: 141003
Country: India
Telephone: 91-161-2600701 to 05
FAX: 91-161-2662942
E-Mail: [email protected]
URL: --
Represented by:
Title: Director
Salutation: Mr.
Last Name: Dhiman
Middle Name: S
First Name: Gursharan
Department: --
Mobile: 09814022307
Direct FAX: --
Direct tel: --
Personal E-Mail: [email protected]





Annex 2
INFORMATION REGARDING PUBLIC FUNDING
No public funding as part of project financing from parties included in Annex I is involved in the
project activity.


























Annex 3
Base line data
Carbon emission factor of grid
Punjabs present generation mix, sector wise installed capacities, thermal efficiency, and emission
co-efficient are used to arrive at the net carbon intensity/baseline factor of the chosen grid. As per
the provisions of the methodology the emission coefficient for the electricity displaced would be
calculated in accordance with provisions of paragraph 29 of Appendix B of Draft Simplified
Modalities and Procedures for Small Scale CDM Project Activities for grid systems.
The provisions of paragraphs 29 of Appendix B requires the emission coefficient (measured in kg
CO
2
equ/kWh) to be calculated in a transparent and conservative manner as:
(a) The average of the approximate operating margin and the build margin (or combined
margin)
OR
(b) The weighted average emissions (in kg CO
2
equ/kWh) of the current generation mix.
Complete analysis of the electricity generation has been carried out for the calculation of the
emission coefficient as per point 29 (a) given above.
Combined Margin
The baseline methodology suggests that the project activity will have an effect on both the
operating margin (i.e. the present power generation sources of the grid, weighted according to the
actual participation in the state grid mix) and the build margin (i.e. weighted average emissions of
recent capacity additions) of the selected grid and the baseline emission factor would therefore
incorporate an average of both these elements.



Operating Margin
The approximate operating margin is defined as the weighted average emissions (in kg
CO2equ/kWh) of all generating sources serving the system, excluding hydro, geothermal, wind,
low-cost biomass, nuclear and solar generation;
The project activity will have some effect on the Operating Margin (OM) of the Punjab State Grid.
The carbon emission factor as per the Operating Margin takes into consideration the power
generation mix of 2002-2003 excluding hydro, geothermal, wind, low-cost biomass, nuclear and
solar generation of the selected grid, thermal efficiency and the default value of emission factors of
the fuel used for power generation.
The consumer of a state of Punjab gets a mix of power from the different sources. The figures of
installed power capacity, share of the state in the central pool, and actual plant availability decides
the content of power. The real mix of power in a particular year is however based on actual units
generated from various sources of power. PSEB is operating major thermal and hydel power
stations in Punjab. The state also gets share from the central sector generation plants and interstate
power projects. The data collected and used are presented in Tables 2.1 to 2.4.
The most important parameter in estimating the emissions is the thermal efficiency of the power
plant. As per the CEA report, it is assumed that all the coal & lignite based plants coming up in
tenth & eleventh & plan will use pulverized coal sub-critical / super critical pressure technology
with the thermal efficiency of around 34%. The percentage of carbon that is not burnt is very low
and, hence, complete combustion was assumed. The thermal efficiency of existing old power plants
is less than 30% and for new modern power plants it is expected to be around 34%. Central
Electricity Authority has presented the analysis of Station Heat Rates (SHR) for 43 thermal power
plants using coal, in India, in the report Performance Review of Thermal Power Stations 2003-04
Section 13
13
. As per this report Lehra Mohabbat, a plant located in Punjab has the highest
efficiency of 35.51 % among all the coal based power plants in Northern India. Hence the
efficiency of Lehra Mohabbat thermal power plant has been considered for the calculations.
Average efficiency of gas based thermal plants as against the standard norms works out to be
around 40-45% On conservative basis average efficiency for base line calculations is considered as

13
http://cea.nic.in/opm/0304/sec-13_sush777.pdf



50%. Standard emission factors given in IPCC for coal and gas (thermal generation) are applied
over the expected generation mix and net emission factor is determined.
The formulae are presented in Section-E and the calculations are presented in an excel sheet as
Enclosure A. Carbon Emission Factor of grid as per OM is 0.91 kg CO
2
/kWh electricity generation.
Build Margin
The build margin emission factor is the weighted average emissions (in kg CO
2
equ/kWh) of
recent capacity additions to the system, which capacity additions are defined as the greater (in
MWh) of most recent 20% of existing plants or the 5 most recent plants.
The project activity will have some effect on the Build Margin (BM) of the Punjab State Grid. The
baseline factor as per the Build Margin takes into consideration the delay effect on the future
projects and assumes that the past trend will continue in the future. For our build margin
calculation we would take into consideration 5 most recent plants built in Punjab given in Table-
2.5. The thermal efficiencies of coal and gas based plants for calculating build margin have been
assumed same as that for calculating operating margin. Carbon Emission Factor of grid as per BM
is 0.80 kg CO
2
/kWh electricity generation.
Net Carbon Emission Factor Grid for 2002-2003 as per CM = (OM + BM)/2 = 0.85 kg of CO
2
/
kWh generation respectively. (Refer to Excel Sheet Enclosure A and B).





Table 2 Grid data for calculation of baseline emission factor of grid for 2002-03
14

Table 2.1: Power Generation Mix of Punjab from the State Generating Stations (net generation)
Sr. No. Energy Source 2002-2003 (MkWh)
I. Punjab State
1. Thermal (coal)
GNDTP, Bhatinda 2266
GGSTP, Ropar 7565
GHTP, Lehra Mohabat 2646
A. Thermal (Coal) Total 12477
2. Thermal (Gas)
B. Thermal (Gas) Total 0
C. Thermal (Coal & Gas)Total: 13650
3. Hydro
Shanan 469
UBDC 394
Anandpur Sahib 750
Mukerian 795
RSDHEP 1151
Micro Hydel 9
D. Hydro Total 3446
F. State Sector Total 17217



14
Source: Punjab State Electricity Regulatory Commission (PSERC)-tariff order for PSEB-FY2003-04





Table 2.2: Power Generation Mix of Punjab from the Central Generating Stations
Sr No Energy Source 2002-2003 (MkWh)
II. Punjabs share in Central Schemes
1. Thermal (Coal)
Dadri thermal 75
Singrauli 1622
Rihand 908
Unchahar-I 352
Unchahar-II 445
A. Thermal (Coal) Total 3402
2. Thermal (Gas)
Anta 357
Auraiya 685
Dadri gas 973
B. Thermal (Gas) Total 2015
C. Total Thermal (Coal & Gas) 5417
3. Hydel
Salal 832
Bairasuil 307
Tanakpur 59
Chamera-I 232
Uri 333
D. Total Hydro 1763
4. Nuclear
NAPP 363
RAPP 101
E. Total Nuclear 464
F. Central Sector Total 7644





Table 2.3: Power Generation Mix of Punjab from the Power Stations in Partnership Projects
Sr No Energy Source 2002-2003 (MkWh)
III. Punjabs share in Partnership Projects
1. Hydel
BBMB Projects 4515

Table 2.4: Power Generation Mix of Punjab from Other Sources
Sr No Energy Source 2002-2003 (MkWh)
II. Other Sources
1. Co-generation 78
2. Banking 467
3. PTC 126
4. Net UI 98
5. Western region 6
A. Total 775
15


Table 2.5: Five most recent plants built in Punjab
Sr.
No.
Year of
Commissioning
Energy Source Generation
(MkWh)
CO
2
Emission
Factor
(kg/kWh)
Thermal
I. 1997 GHTP, Lehra Mohabat
(Unit 1)
1323 0.973
1998 GHTP, Lehra Mohabat
(Unit 2)
1323 0.973
1992 GGSTP, Ropar (Unit 5) 1261 0.973
1993 GGSTP, Ropar (Unit 6) 1261 0.973
Hydel
II. 2002 Ranjit Sagar Dam 1151 0


15
Due to lack of information and to be on conservative side, this quantity has been taken as renewable energy
for calculation of emission factor for the grid




Appendix A: Abbreviations
AFBC Atmospheric fluidized bed combustion
Atm Atmosphere
BBMB Bhakara Beas Management Board
CDM Clean Development Mechanism
CEA Central electricity authority
CO
2
Carbon dioxide
DCS Distributed Control System
DB Decibel
DPR Detailed project report
ESP Electrostatic precipitator
GGSTP Guru Gobing Singh Super Thermal Plant
GHG Greenhouse gas
GHTP Guru Hargobind Thermal Power Plant
GJ Giga joule
GNDTP Guru Nank Dev thermal plant
IPCC Inter Governmental Panel on Climate Change
Kg Kilogram
Km Kilometer
KV Kilo volt
KW Kilo watt
KWh Kilo watt hour
Mg Milligrams
MU Million units
MW Mega watt
NSML Nahar Spinning Mills Ltd.
Nm
3
Normal meter cube
OSHA Occupational safety and health administration
PDD Project Design Document
PEDA Punjab Energy Development Agency
ppm Parts per million
PSEB Punjab State Electricity Board
PSPCB Punjab State Pollution Control Board
PTCL Power Trading Corporation Limited
RSDHEP Ranjit Sagar dam hydro electric project
T Tonne



TDS Total dissolved solids
TPH Tonne per hour
UNFCCC United Nations Framework Convention on Climate Change
UI Unscheduled Interchange
V Volt








Appendix B: List of References
Sl. No. Particulars of the references
1. Kyoto Protocol to the United Nations Framework Convention on Climate Change
2. Website of United Nations Framework Convention on Climate Change (UNFCCC),
http://unfccc.int
3. UNFCCC document: Clean Development Mechanism, Simplified Project Design
Document For Small Scale Project Activities (SSC-PDD), Version 01 (21 January,
2003)
4.
UNFCCC document: Simplified modalities and procedures for smallscale clean
development mechanism project activities
5.
UNFCCC document: Indicative simplified baseline and monitoring methodologies for
selected small-scale CDM project activity categories, Version 03
6. UNFCCC document: Determining the occurrence of debundling
7. Statistics of Punjab State Electricity Board
8. Power sector profile for Northern region as on 30.04.04-Ministry of Power
9. Website of Ministry of Power (MoP), Govt. of India www.powermin.nic.in
10. Feasibility Report of NSML, Co-generation Project
11.
Paper on Rice Processing Industry in Punjab: Problems and their Remedies published
in Ind. Jn. of Agri. Econ., Vol.58, No.3, July-Sept 2003

12. http://www.owmnahar.com/index.html
13. http://punjabgovt.nic.in/Industry/ind557.htm (PEDA)
14. http://www.tribuneindia.com/2004/20040408/biz.htm
15. http://www.psebindia.org/pseb.htm