8791 CDM-PDD - Clean

CDM-PDD-FORM
Project design document form for

CDM project activities
(Version 06.0)
Complete this form in accordance with the Attachment “Instructions for filling out the project design
document form for CDM project activities” at the end of this form.
PROJECT DESIGN DOCUMENT (PDD)
Title of the project activity Nallakonda wind farm in Andhra Pradesh
Version number of the PDD 04.0
Completion date of the PDD 23/11/2015
Project participant(s) Tadas Wind Energy Private Limited

(previously known as Tadas Wind Energy Limited)
Host Party India
Sectoral scope and selected Sectoral scope: 01 Energy industries (renewable / non-
methodology(ies), and where renewable sources)
applicable, selected standardized Selected Methodology: ACM0002 “Consolidated baseline
baseline(s) methodology for grid-connected electricity generation
from renewable sources” Version- 13.0.0
Estimated amount of annual average
GHG emission reductions 100,630 tCO2e
Version 06.0 Page 1 of 35

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SECTION A. Description of project activity
A.1. Purpose and general description of project activity

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The project activity involves generation of electricity from wind, a renewable source of energy at
Anantpur district in Andhra Pradesh. The proposed project activity, an initiative by Tadas Wind
Energy Private Limited (TWEPL) is aimed at exporting 50.4MW of renewable electricity generated
using Wind Electric Generators (WEGs) to the southern regional grid. The project activity would
help in reducing power shortage, abatement of Green House Gas (GHG) emissions and would
contribute towards sustainable development of the country.
Scenario Existing Prior to the Implementation of the Project Activity

Electricity delivered to the grid by the project activity would have otherwise been generated by the
operation of grid-connected fossil fuel dominated power plants (which is also the baseline
scenario).
Project Scenario and the Technology employed

The project activity involves installation of 63 WEGs of 0.8 MW capacity each of Enercon make,
resulting in total installed capacity of 50.4 MW. The WEGs generate 3-phase power at 400V, which
is stepped up to 33 KV. These WEGs are based on gearless technology, which helps in elimination
of mechanical losses. It also combines the variable speed with variable pitch and hence increases
the conversion efficiency. This technology is well established and running successfully at various
sites across India.
Contribution to reduction in GHG emissions by the proposed project activity

The electricity generated as a result of implementation of the project activity will be supplied to the
southern regional grid which at present is dominated by fossil fuel based power plants, thereby
reducing an equivalent amount of GHG emissions associated with thermal generating sources.
The project would result into 100,630 tCO2e of annual average emission reduction and 1,006,300
tCO2e of total emissions reductions over 10 years fixed crediting period.
Contribution of project activity to sustainable development

The proposed project activity has following sustainable development aspects:
Social Wellbeing:
 The project activity would help in providing job opportunities to the local population during
installation and operation of the WEGs. Employment generation would help poverty alleviation
in the local community and bring about reduction in the disparity of income.
 The project activity would also lead towards development of infrastructure like construction of
roads and expansion of telecommunication network. These factors will give a boost to the
social amelioration of the community and would also help in improving the living standards of
the local community.
Environmental Wellbeing:
 The project activity produces electricity with the help of renewable energy. In the absence of
project activity, power would have been generated using fossil fuels, leading to GHG
emissions.
 The project activity not only helps in reducing GHG emissions but also help towards
conservation of fossil fuels. Therefore, the project activity is contributing towards mitigation of
impacts of climate change and hence the environmental wellbeing.
Economic Wellbeing:
 The electricity generated as a result of project activity will be fed to the regional grid, thereby
improving the availability of electricity to the local consumers.
 This will further provide opportunities for industries and economic activities to be set up in the
area resulting in greater local employment.
Technological Wellbeing:
 WEGs deployed in the project activity are from well-known international manufacturer; the
technology is proven and ensures efficient and safe operation of the project activity.

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In addition to this, the project proponent will invest 2% of the CER revenues every year in
sustainable development activities in the local communities of Andhra Pradesh. Details of the
same are provided in Appendix 7.
A.2. Location of project activity
A.2.1. Host Party

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India
A.2.2. Region/State/Province etc.

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State: Andhra Pradesh
A.2.3. City/Town/Community etc.

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District: Anantpur
Village: Gondipalli, Duddebanda, Kogira, Mustikovilla
A.2.4. Physical/Geographical location

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The project site is located near village Nallakonda of Anantpur district in the state of Andhra
Pradesh, India. The project consists of installation of 63 WEGs of 0.8MW capacity each. Details of
their geo coordinates are given below:
SITE LONGITUDE (E) LATITUDE (N) SITE LONGITUDE (E) LATITUDE (N)
48 77.571021 14.175637 82 77.556372 14.172389

49 77.571972 14.174507 83 77.556127 14.173656
50 77.571869 14.172782 84 77.556049 14.174940
51 77.572064 14.171235 85 77.554889 14.177238
52 77.571803 14.169431 86 77.554293 14.178554
53 77.571430 14.167574 87 77.558987 14.182579
54 77.571859 14.166151 88 77.553590 14.181959
55 77.570797 14.163904 89 77.553243 14.183237
56 77.571301 14.162688 131 77.528519 14.200070
57 77.571398 14.161422 132 77.529199 14.198734
58 77.571421 14.160121 133 77.529416 14.197449
59 77.571397 14.158811 134 77.529688 14.196073
60 77.572084 14.156500 135 77.530138 14.194875
61 77.574317 14.155057 136 77.530122 14.193457
62 77.570534 14.153707 137 77.531185 14.191603
63 77.571604 14.150127 138 77.529927 14.188418
65 77.564728 14.142151 139 77.529890 14.185048
67 77.563660 14.145948 140 77.532297 14.183351
68 77.564381 14.147548 141 77.534916 14.179845
68A 77.564904 14.149566 142 77.534991 14.178245
73 77.562634 14.153557 143 77.535346 14.176850
74 77.562280 14.154997 144 77.534193 14.173962
75 77.562303 14.156298 145 77.533870 14.172366
76 77.559724 14.158268 146 77.534474 14.170860
77 77.563069 14.159334 147 77.534503 14.169369
155 77.544314 14.158983 148 77.534682 14.167976
156 77.544225 14.157611 149 77.534963 14.166563

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157 77.546908 14.157420 150 77.534952 14.164784
78 77.558897 14.161367 151 77.536622 14.164233
79 77.558291 14.162602 152 77.536329 14.162854
80 77.557982 14.164828 153 77.536922 14.161239
81 77.557702 14.166285
A.3. Technologies and/or measures

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In wind energy generation, kinetic energy of wind is converted into mechanical energy and
subsequently into electrical energy. Wind blowing at high speeds has a considerable amount of
kinetic energy. When this kinetic energy passes through the blades of the wind turbines, it is
converted into mechanical energy and rotates the blades. When the blades rotate, the connected
generator also rotates, thereby producing electricity.
The proposed project activity involves installation of 63 WEGs of 0.8 MW capacity each, i.e. total
installed capacity of 50.4 MW and a PLF of 25.41%. The WEGs are of Enercon model, E-53, with

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newly designed blades, type tested and approved by the Ministry of New and Renewable Energy
(MNRE). The specifications of the WEGs installed at each of the sites are specified below:
PARAMETER DESCRIPTION
Turbine Model Enercon E – 53
Rated Power 800 kW
Rotor Diameter 53m
Hub Height 75m (Concrete)
Turbine Type Direct driven, horizontal axis wind turbine; variable rotor
speed
Power Regulation Independent pitch system for each blade
Cut – in speed 3 m/s
Rated wind speed 12.6 m/s
Cut – out wind speed 28 m/s
Extreme wind speed 57 m/s
Rated rotational speed 29 rpm
Operating range rotational speed 11 – 29.5 rpm
Orientation Upwind
Number of Blades 03
Blade Material Fiber glass, Epoxy reinforced
Gear box type Gear less
Generator type Synchronous generator
Braking Aerodynamic
Output Voltage 400V
Yaw system Active yawning with 4 electric yaw drivers and brake motor
Tower 74m (Concrete)
Turbine Lifetime 20 years
The Baseline scenario is same as the scenario existing prior to the project activity. Emission
reductions will be claimed based on the net electrical energy that is supplied to the regional grid.
The metering of the electricity generated would be done at Substation location using the
appropriate metering devices. The detailed monitoring plan is in section B.7.3. The project activity
does not involve any technology transfer.
A.4. Parties and project participants
Private and/or public Indicate if the Party involved

Party involved (host)
entity(ies) project participants wishes to be considered as
indicates host Party
(as applicable) project participant (Yes/No)
Private Entity: Tadas Wind

India (host) No
Energy Private Limited (TWEPL)
A.5. Public funding of project activity

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No public funding and no ODA from Parties included in Annex I is involved in this project activity.
SECTION B. Application of selected approved baseline and monitoring

methodology and standardized baseline
B.1. Reference of methodology and standardized baseline

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ACM0002: Consolidated baseline methodology for grid-connected electricity generation from
renewable sources - Version 13.0.0
The following tools have been used in the CDM-PDD-FORM:
 Tool for demonstration and assessment of additionality- Version 06.1.0;
 Tool to calculate the emission factor for an electricity system- Version 02.2.1

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B.2. Applicability of methodology and standardized baseline

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The project meets all the applicability criteria as set out in the approved methodology ACM0002
Version 13.0.0 as described below:
APPLICABILITY CONDITIONS UNDER ACM0002,

PROJECT ACTIVITY IS ELIGIBLE SINCE:
VER. 13.0.0
This methodology is applicable to grid- The project activity involves option (a)
connected renewable power generation install of a new power plant at a site
project activities that: where no renewable power plant was
(a) install a new power plant at a site where operated prior to the implementation of
no renewable power plant was operated the project activity (greenfield plant).
prior to the implementation of the project Hence, this criterion is justified.
activity (greenfield plant);
(b) involve a capacity addition;
(c) involve a retrofit of (an) existing plant(s); or
(d) involve a replacement of (an) existing
plant(s).
The project activity is the installation, capacity The project activity is installation of a new
addition, retrofit or replacement of a power wind power plant/ unit; satisfying the
plant/ unit of one of the following types: hydro applicability condition.
power plant/ unit (either with a run-of-river
reservoir or an accumulated reservoir), wind
power plant/ unit, geothermal power plant/
unit, solar power plant/ unit, wave power plant/
unit or tidal power plant/unit
In the case of capacity additions, retrofits or This condition is not applicable as the
replacements, the existing plant started project activity is installation of a new
commercial operation prior to the start of a wind power plant and does not involve
minimum historical reference period of five capacity additions, retrofits or
years, used for the calculation of baseline replacements.
emissions and defined in the baseline
emission section, and no capacity expansion
or retrofit of the plant has been undertaken
between the start of this minimum historical
reference period and the implementation of
the project activity.
In case of hydro power plants, one of the The proposed project activity involves
following conditions must apply : installation of wind power plants; hence
 The project activity is implemented in an this condition is not applicable.
existing single or multiple reservoirs, with
no change in the volume of any of
reservoirs; or
 The project activity is implemented in an
existing single or multiple reservoirs,
where the volume of any of reservoirs is
increased and the power density of each
reservoir, as per the definitions given in
the project emissions section, is greater
than 4 W/m2; or
 The project activity results in new single or
multiple reservoirs and the power density
of each reservoir, as per the definitions
given in the project emissions section, is
greater than 4 W/m2.

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In case of hydro power plants using multiple The proposed project is installation of a
reservoirs where the power density of any of new wind power plant; hence this
the reservoirs is lower than 4W/m2 all the condition is not applicable.
following conditions must apply:
 The power density calculated for the entire
project activity using equation 5 is greater
than 4W/m2;
 Multiple reservoirs and hydro power plants
located at the same river and where are
designed together to function as an
integrated project that collectively
constitute the generation capacity of the
combined power plant;
 Water flows between multiple reservoirs is
not used by any other hydropower unit
which is not a part of the project activity;
 The total installed capacity of the power
units, which are driven using water from
the reservoirs with power density lower
than 4W/m2, is lower than 15MW;
 Total installed capacity of the power units,
which are driven using water from
reservoirs with power density lower than
4W/m2, is less than 10% of the total
installed capacity of the project activity
from multiple reservoirs.
The methodology is not applicable to the
following:
 Project activities that involve switching  The proposed project activity is
from fossil fuels to renewable energy installation of new grid connected
sources at the site of the project activity, wind power project at site and does
since in this case the baseline may be the not involve fuel switching. Therefore,
continued use of fossil fuels at the site; not applicable.
 Biomass fired power plants;  The proposed project activity is
installation of new grid connected
wind power project at site and not a
biomass fired power plants.
Therefore, not applicable.
 Hydro power plant that results in the  The proposed project activity is
creation of a new single reservoir or in the installation of new grid connected
increase in existing single reservoir where wind power project at site and not a
the power density of the power plant is hydro power plant. Therefore, not
less than 4W/m2. applicable.
In the case of retrofits, replacements, or The project activity is a new grid
capacity additions, this methodology is only connected wind power plant and not a
applicable if the most plausible baseline retrofit, replacement or capacity addition.
scenario, as a result of the identification of Therefore, this criterion is not applicable
baseline scenario, is “the continuation of the to the project activity.
current situation, i.e. to use the power
generation equipment that was already in use
prior to the implementation of the project
activity and undertaking business as usual
maintenance”.
APPLICABILITY CONDITIONS UNDER “TOOL TO
CALCULATE THE EMISSION FACTOR FOR AN PROJECT ACTIVITY IS ELIGIBLE SINCE:
ELECTRICITY SYSTEM”, VER. 02.2.1
This tool may be applied to estimate the OM, The project activity involves installation of

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BM and/or CM when calculating baseline a Greenfield wind farm and the power
emissions for a project activity that substitutes generated by the project activity will
grid electricity, i.e. where a project activity substitute the grid electricity, i.e. the
supplies electricity to a grid or a project activity power generated by the project activity
that results in savings of electricity that would will be supplied to the regional grid.
have been provided by the grid (e.g. demand- Therefore, this tool is applied to estimate
side energy efficiency projects). the Operating Margin (OM), Build Margin
(BM) and/or Combined Margin (CM)
when calculating baseline emissions for a
project activity, thus satisfying the
applicability criterion.
The emission factor for the project electricity In the host country as off-grid power
system can be calculated either for grid power generation is not significant. Therefore,
plants only or, as an option, can include off- emission factor for the project electricity
grid power plants. In the latter case, the system is calculated only for the grid
conditions specified in “Annex 2 – Procedures power plants. Thus, this applicability
related to off-grid power generation” should be criterion is satisfied.
met. Namely, the total capacity of off-grid
power plants (in MW) should be at least 10%
of the total capacity of grid power plants in the
electricity system; or the total electricity
generation by off-grid power plants (in MWh)
should be at least 10% of the total electricity
generation by grid power plants in the
electricity system; and that factors which
negatively affect the reliability and stability of
the grid are primarily due to constraints in
generation and not to other aspects such as
transmission capacity.
In case of CDM projects the tool is not The proposed CDM project is located in
applicable if the project electricity system is India which is not an Annex I country.
located partially or totally in an Annex I Hence, this criterion is not applicable.
country.
B.3. Project boundary

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The project boundary for the project activity is selected as per the approved methodology
ACM0002, Version 13.0.0. As per the methodology, spatial extent of the project boundary includes
the project power plant and all power plants connected physically to the electricity system that the
CDM project power plant is connected to.
Tool to calculate emission factor for an electricity system, Version 02.2.1 defines grid/ project
electricity system by the spatial extent of the power plants that are physically connected through
transmission and distribution lines to the project activity and that can be dispatched without
significant transmission constraints. The project activity evacuates power to the Southern regional
grid. A diagrammatic presentation of the project boundary is given below:
Transformer EGfacility,y
Wind Mills Metering Point Sub- station
690V/33kV
(WEG) (Main, Check and
Stand-by Meters)
CO2
Reading
Display
Southern
All power plants Regional Grid

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The GHGs and emission sources included in or excluded from the project boundary are listed in
the table below:
Source GHGs Included? Justification/Explanation

CO2 emissions from electricity The project activity is aimed at
generation in fossil fuel fired displacing the grid power, and
Baseline
power plants that are displaced CO2 Yes thus reducing CO2 emissions
due to the project activity resulting from the power
generation.
CH4 No No CH4 generation is expected
N2O No No N2O generation is expected
For geothermal power plants, CO2 No Not applicable for wind projects
fugitive emissions of CH4 and CH4 No Not applicable for wind projects
CO2 from non-condensable Not applicable for wind projects
gases contained in geothermal N2O No
Project activity
steam
CO2 emissions from combustion CO2 No Not applicable for wind projects
of fossil fuels for electricity CH4 No Not applicable for wind projects
generation in solar thermal Not applicable for wind projects
power plants and geothermal N2O No
power plants
For the hydro power plants, CO2 No Not applicable for wind projects
emissions of CH4 from the CH4 No Not applicable for wind projects
reservoir Not applicable for wind projects
N2O No
B.4. Establishment and description of baseline scenario

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According to the approved methodology ACM0002, Version 13.0.0, if the project activity is the
installation of a new grid-connected renewable power plant/ unit, the baseline scenario is the
following:
“Electricity delivered to the grid by the project activity would have otherwise been generated by the
operation of grid-connected power plants and by the addition of new generation sources, as
reflected in the combined margin (CM) calculations described in the “Tool to calculate the emission
factor for an electricity system”.
As the project activity is a greenfield project involving installation of WEGs the above mentioned
baseline scenario is applicable for the project activity.
B.5. Demonstration of additionality

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As per ACM0002, Version 13.0.0 the proposed project activity uses “Tool for the demonstration
and assessment of additionality” version 06.1.0 to determine the additionality.
Step 1: Identification of alternatives to the project activity consistent with current laws and
regulations
While identifying the alternatives to the project activity, ACM0002, Version 13.0.0 directs to use
Step 1 of the latest version of the additionality tool.
Sub-step 1a: Define alternatives to the project activity

In order to identify credible and realistic alternative(s) available to the project participant that
provide outputs or services comparable with proposed CDM activity “Tool for the demonstration
and assessment of additionality” Version 06.1.0 provides the following options:
(a) The proposed project activity undertaken without being registered as a CDM project activity;
(b) Other realistic and credible alternative scenario(s) to the proposed CDM project activity
scenario that deliver outputs services (e.g., cement) or services (e.g. electricity, heat) with

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comparable quality, properties and application areas and application areas, taking into account,
where relevant, examples of scenarios identified in the underlying methodology;
(c) If applicable, continuation of the current situation (no project activity or other alternatives
undertaken).
Of all the alternatives provided, Alternative (a) and (c) are the most credible and realistic
alternatives available to the project activity.
Sub-step 1b: Consistency with Mandatory Laws and Regulations

The above identified realistic and credible alternative scenario(s) to the project activity are in
compliance with all mandatory legislation and regulations, taking into account the enforcement in
the country and EB decisions on national and/or sectoral policies and regulations.
The project activity conforms to all the applicable laws and regulations in India:
 Power generation using wind energy is not a legal requirement or a mandatory option. There
are state and sectoral policies, framed primarily to encourage wind power projects. These
policies have also been drafted realizing the extent of risks involved in the projects and to
attract private investments.
 The Indian Electricity Act, 2003 (May 2007 Amendment) does not influence the choice of fuel
used for power generation.
 There is no legal requirement on the choice of a particular technology for power generation.
Thus, there are no legal and regulatory requirements that prevent Alternatives (e) and (g) from
occurring.
Step 2: Investment Analysis
Sub-step2a: Determine appropriate analysis method

According to the “Tool for the demonstration and assessment of additionality” (version 06.1.0)
there are three options for the execution of the investment analysis.
Option I: Simple cost analysis (the CDM project activity generates no financial or economic
benefits other than CDM related income);
Option II: Investment comparison analysis [the relevant financial indicator (IRR, NPV) is
determined and compared]; or
Option III: Benchmark analysis (the relevant financial indicator, such as IRR, is compared to a
benchmark).
The project will generate revenues from energy sale and also from credits of emissions reduction,
therefore Option I is not applicable.
The “Guidelines on the Assessment of Investment Analysis” version 05, Annex 5, EB 62, Guidance
19 stipulates that if the proposed baseline scenario leaves the project participant no other choice
than to make an investment to supply the same (or substitute) products or services, a benchmark
analysis is not appropriate and an investment comparison analysis shall be used. If the alternative
to the project activity is the supply of electricity from a grid this is not to be considered an
investment and a benchmark approach is considered appropriate.
The alternative to the project activity is supply of electricity from the grid, therefore, Option III
(benchmark analysis) has been considered for the investment analysis.
Sub-step2b: Option III. Apply benchmark analysis

The additionality tool allows the project developer to choose the financial indicator, IRR to
demonstrate the additionality of the project. The additionality tool provides an option to choose
between project IRR and the equity IRR. Equity IRR is widely accepted and used by investors as
financial indicator in financial decision making. Project proponent has chosen Equity IRR as a
financial indicator to demonstrate the additionality.
As per the Guidelines on the Assessment of Investment Analysis version 05, If the benchmark is
based on parameters that are standard in the market, the cost of equity should be determined
either by: (a) selecting the values provided in Appendix A; or by (b) calculating the cost of equity
using best financial practices, based on data sources which can be clearly validated by the DOE,
while properly justifying all underlying factors.
In accordance with the values provided in the Appendix A of “Guidelines on the assessment of
Investment Analysis” version 05, the benchmark has been calculated.

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The default values of the expected return on equity for different type of project activities in different
countries have been provided in the appendix to “Guidelines on the assessment of Investment
Analysis” version 5. The project activity falls in the Group 1 type of project activity (Renewable
Energy) and therefore relevant value from the appendix is used.
The default value for the expected returns on equity (in real terms) = 11.75%
As per paragraph 7 of the appendix to the “Guidelines on the assessment of Investment Analysis”
version 05, EB 62, Annex 5
“In situations where an investment analysis is carried out in nominal terms, project participants can
convert the real term values provided in the table below to nominal values by adding the inflation
rate. The inflation rate shall be obtained from the inflation forecast of the central bank of the host
country for the duration of the crediting period. If this information is not available, the target inflation
rate of the central bank shall be used. If this information is also not available, then the average
forecasted inflation rate for the host country published by the IMF (International Monetary Fund
World Economic Outlook) or the World Bank for the next five years after the start of the project
activity shall be used.”
In accordance with the above, the average forecasted inflation rate for India for 2011-2016
published by International Monetary Fund (IMF) has been used1. The average forecasted inflation
rate of India for 10 years as per the central bank of host country (Reserve Bank of India) is 5.5%2.
Therefore, on conservative note, PP chose data from IMF.
Average forecasted inflation rate for 2011-2016 = 4.76%
Benchmark = (1+ Expected return on equity (in real terms)) × (1+inflation rate) – 1
= (1+11.75%) × (1+4.76%) – 1
= 17.07%
In accordance with the “Guidelines on the assessment of Investment Analysis” version 05, EB 62,
Annex 5 the benchmark (Expected return on equity) of 17.07% has been considered for the project
activity.
In accordance with the “Guidelines of Investment Analysis” version 5 EB 62, Annex 5 the
benchmark (Expected return on equity) of 17.07% has been considered for the project activity.
Sub-step2c: Calculation and comparison of financial indicators

The equity IRR has been computed based on the following assumptions:
PARAMETER VALUE APPLIED SOURCE
Plant Capacity (63 nos. of WEGs of 0.8 50.4 Proposal
MW capacity each)
Plant Load Factor (PLF) (%) 25.41 Calculation based on Wind
Assessment Report
Cost of Project (Rs. in million) 2890.95 Proposal, Internal Assessment
Tariff Rate (INR per kWh) 3.50 Project Information Memorandum
Financial pattern – Equity (%) 25 Management Assumption based on
previous projects
Financial pattern – Debt (%) 75 Management Assumption based on
previous projects
Interest on Term Loan (%) 11 Management Assumption based on
previous projects
Working Capital Interest Rate (%) 14 Management Assumption based on
previous projects
Book depreciation – annual rate (%) 4.50 Companies Act
Depreciation as per Income Tax Act 15 Income Tax Act
(WDV basis) (%)
1
http://www.imf.org/external/pubs/ft/weo/2011/01/weodata/weorept.aspx?pr.x=33&pr.y=8&sy=2011&ey=2016&scsm=1&ssd=1&sort=cou
ntry&ds=.&br=1&c=534&s=PCPI%2CPCPIPCH&grp=0&a=
2
http://rbi.org.in/scripts/PublicationsView.aspx?Id=13360

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Corporate tax rate (%) 33.22 Income Tax Act
MAT rate (%) 19.93 Income Tax Act
Operation & Maintenance costs per WEG 0.60 Proposal
(Rs. in millions)
Yearly escalation in O&M costs 6% Proposal
Generation Based Incentive (GBI) 0.50 IREDA Guidelines
(INR/KWh)
GBI cap (INR million/MW) 6.20 IREDA Guidelines
The equity IRR for the project without CDM benefit works out to be 9.53%. As evident, the equity
IRR is lower than the corresponding benchmark rate of 17.07%. This clearly indicates that
investment barrier exists in project activity implementation. Therefore, it can be concluded that the
project activity is additional and requires CDM revenues to alleviate the investment barrier to the
project activity.
Sub-step 2d: Sensitivity Analysis

“Guidelines on the Assessment of Investment Analysis” require the project developer to subject
critical assumptions to reasonable variation to ascertain the robustness of the conclusion drawn,
that is, the project is unlikely to be the most financially attractive. As required, a sensitivity analysis
has been conducted to measure the impact of changes in the chosen parameters.
The project proponent has chosen four factors as critical to the operations of the project namely:
Plant Load Factor (PLF), total Project Cost, O&M costs and tariff rate. These factors were
subjected to 10% variation on either side to ascertain the impact on the profitability and hence the
IRR of the project. The results of the sensitivity analysis are as given below:
RESULTANT EQUITY IRR

FACTOR
DECREASE BY 10% BASE CASE INCREASE BY 10%
Generation 6.15 9.53 13.01
Hard Cost 13.11 9.53 6.75
O&M Cost 10.02 9.53 9.02
Tariff 6.17 9.53 12.93
It is evident from the above table that the equity IRR does not cross the benchmark rate of 17.07%
even after an increase of 10% in the selected parameters. Hence the project is unlikely to be
financially/economically attractive without CDM benefits.
Step 4: Common Practice Analysis

As per the tool for “Demonstration and assessment of additionality” Version 06.1.0, the following
Stepwise approach for Common Practice has been followed for the project activity.
Step 1: Calculate applicable output range as ±50% of the design output or capacity of the
proposed project activity
The capacity of the project activity is 50.4 MW. The project capacity has been subject to the
variation in the range of ±50%, the following table depicts the outcome of the variation applied:
-50% CAPACITY (MW) +50%

25.2MW 50.4MW 75.6MW
For the analysis, the projects falling in the range of 25.2 MW to 75.6 MW capacities have been
taken.
Step 2: In the applicable geographical area, identify all plants that deliver the same output or
capacity, within the applicable output range calculated in Step 1, as the proposed project activity
and have started commercial operation before the start date of the project. Note their number Nall.
Registered CDM project activities and project activities undergoing validation shall not be included
in this step.
India has been considered applicable geographical area as a default, for the common practice
analysis of project activity. All power plants generating electricity within the capacity range of

CDM-PDD-FORM
25.2MW to 75.6MW and having commercial operations date before project activity start date
(19/08/2011) have been considered. The power generation plants identified in this step are hydro3,
thermal44 and wind power projects55. The total number of power plants is 405.
CDM project activities which have got registered or are under validation have been excluded in this
step. The list of the plants identified is provided to the DOE. After excluding the registered and
under validation projects the total number of projects, Nall = 394.
Step 3: Within plants identified in Step 2, identify those that apply technologies different that the
technology applied in the proposed project activity. Note their number Ndiff
As per additionality tool, different technologies that deliver the same output and differ by at least
one of the following are:
(i) Energy Source/ Fuel
(ii) Feed stock
(iii) Size of Installation (power capacity)
- Micro
- Small
- Large
(iv) Investment climate in the date of the investment decision, inter alia:
- Access to technology;
- Subsidies or other financial flows;
- Promotional policies;
- Legal regulations.
(v) Other features, inter alia:
- Unit cost of output
The project activities have been separated from the different technologies on the basis of the
following criteria:
Energy Source/fuel: The project activity involves electricity generation from wind. The other project
activities identified in Step 2 are hydro and thermal power plants. All these are using water and
conventional fuels as energy sources for the generation of electricity respectively. Therefore, all the
projects falling under above category, except wind power plants, are considered as plants with
different technologies and included under Ndiff.
Number of thermal projects = 161
Number of hydro projects = 223
Total = 384
Investment climate in the date of the investment decision: The investment decision for the project
activity was taken on 27/07/2011. The investment decision of the project activity was taken
considering Generation Based Incentive (GBI) scheme6 initiated by Ministry of New & Renewable
Energy, Government of India. The scheme is to broaden the investor base and create level playing
field for various classes of investors. GBI is applicable for grid interactive wind power projects in
India. The GBI scheme came in effect from 17/12/2009. The advent of this scheme had played
critical role for project proponent to take decision to go ahead with the implementation of the
project.
On the basis of above promotional scheme (GBI), wind power projects with commissioning date
prior to 17/12/2009 have also been considered under different technology projects (Ndiff).
Therefore, the technologies different than the project activity, Ndiff is calculated as:
Project Category Number of Projects

Thermal 161
Hydro 223
With Large Scale (Without GBI) 10
Total (Ndiff) 394
3 CO2 baseline database for Indian power sector, CEA, version 7

4 CO2 baseline database for Indian power sector, CEA, version 7
5 Directory: Indian Wind Power 2011
6 www.mnre.gov.in/gbi-scheme.html

CDM-PDD-FORM
Step 4: Calculate factor F = 1 - Ndiff/Nall representing the share of plants using technology similar to
the technology used in the proposed project activity in all plants that deliver the same output or
capacity as the proposed project activity
From step 2 and step 3 following figure is arrived at:
Nall = 394
Ndiff = 394
Nall – Ndiff =0
F = 1- (Ndiff/Nall) =0
As per the tool, the proposed project activity is a “common practice” within a sector in the
applicable geographical area if both the following conditions are fulfilled:
(a) The factor F is greater than 0.2, and
(b) Nall – Ndiff is greater than 3.
The value of factor F as calculated in Step 4 is 0 which is less than 0.2 and the value of Nall – Ndiff
is 0, which is also less than 3. Hence the project activity is not a common practice.
The analysis clearly demonstrates that project activity is not a common practice within the sector in
the applicable geographical area. Therefore, it can be concluded that the project activity is
additional and requires CDM revenues to alleviate the investment barrier to the project activity.
Serious Consideration of CDM and Continued Action to Secure CDM status

As per EB62 Annex13 (paragraph 2), for project activities with a starting date on or after
02/08/2008, the project participant must inform a Host Party DNA and the UNFCCC secretariat in
writing of the commencement of the project activity and of their intention to seek CDM status. Such
notification must be made within six months of the project activity start date and shall contain the
precise geographical location and a brief description of the proposed project activity, using the
standardized form F-CDM-Prior Consideration. Such notification is not necessary if a PDD has
been published for global stakeholder consultation or a new methodology proposed to the
Executive Board for the specific project before the project activity start date.
Serious Consideration of CDM: The start date for the project activity is 19/08/2011. The project
proponent has (as per EB 62, Annex 13, paragraph 2) informed the Indian DNA and the UNFCCC
secretariat in writing of the commencement of the project activity and of their intention to seek
CDM status. The form for prior consideration was submitted to the host DNA and UNFCCC on
24/01/2012, which is within six months of the project activity start date. The project developer has
taken parallel action for the implementation of the project and the registration of project as CDM
activity.
S. NO. EVENTS DATE

1. Board Resolution Date 27/07/2011
2. Purchase Order for supply of WEGs (start date of the project activity) 19/08/2011
3. Submission of form for Prior Consideration of CDM to UNFCCC 24/01/2012
4. Submission of form for Prior Consideration of CDM to National CDM 24/01/2012
Authority
5. Local Stakeholder Consultation Meeting 08/06/2012
B.6. Emission reductions
B.6.1. Explanation of methodological choices

>>
Estimation of Project Emissions
The project activity involves harnessing of wind energy for electricity generation, which does not
involve combustion or generation from fossil fuels. Hence according to ACM0002 Version 13.0.0,
there will be no project emissions in the project activity (PEy = 0).
Estimation of Baseline Emissions

Baseline emissions include only CO2 emissions from electricity generation in fossil fuel fired power
plants that are displaced due to the project activity. The methodology assumes that all project
electricity generation above baseline levels would have been generated by existing grid-connected

CDM-PDD-FORM
power plants and the addition of new grid-connected power plants. The baseline emissions are
calculated as follows:
BEy = EGPJ,y × EFgrid,CM,y
Where:
BEy Baseline emissions in year y (tCO2/yr)
EGPJ,y Quantity of net electricity generation that is produced and fed into a grid as a result
of the implementation of the CDM project activity in year y (MWh/yr)
EFgrid,CM,y Combined margin CO2 emission factor for grid connected power generation in year
y calculated using the latest version of the “Tool to calculate the emission factor for
an electricity system” ver. 02.2.1 (tCO2/MWh)
Calculation of EGPJ,y
Since the project activity is installation of a new grid-connected renewable power plant/ unit at a
site where no renewable power plant was operated prior to the implementation of the project
activity, therefore:
EGPJ,y = EGfacility,y
Where:
EGPJ,y Quantity of net electricity generation that is produced and fed into the grid as a result
of the implementation of the CDM project activity in year y (MWh/yr)
EGfacility,y Quantity of net electricity generation supplied by the project plant/ unit to the grid in
year y (MWh/yr)
Calculation of EFgrid,CM,y
As per the approved methodology, ACM0002 Version 13.0.0, “Tool to calculate emission factor for
an electricity system” (version 02.2.1) is used to determine the CO 2 emission factor for the
displacement of electricity generated by power plants in an electricity system by calculating the
combined margin CO2 emission factor of the electricity system. Following steps are applied to
determine the combined margin CO2 emission factor:
Step 1. Identify the relevant electricity systems;
Step 2. Choose whether to include off-grid power plants in the project electricity system (optional);
Step 3. Select a method to determine the operating margin (OM);
Step 4. Calculate the operating margin emission factor according to the selected method;
Step 5. Calculate the build margin (BM) emission factor;
Step 6. Calculate the combined margin (CM) emission factor.
If the DNA of the host country has published a delineation of the project electricity system and
connected electricity systems, these delineations should be used. Central Electricity Authority
(CEA) (which is an official source of Ministry of Power, Government of India) has worked out
baseline emission factors for two grids in India and made them publicly available in the form of
“CO2 Baseline Database for Indian Power Sector” dated January 2012, version 77.
The emission factor of the grid for the ex-ante approach is calculated in the following manner:
Step 1: Identify the relevant electricity systems

The CEA of the host country has published a delineation of the project electricity system and
connected electricity systems. For identification of relevant electric power system of the project
activity the data published by the CEA of the host country is used and the project activity falls
under the Southern regional grid.
NEWNE GRID SOUTHERN GRID

NORTHERN WESTERN EASTERN NORTH – EASTERN SOUTHERN
Chandigarh Chhattisgarh Bihar Arunachal Pradesh Andhra Pradesh
Delhi Gujarat Jharkhand Assam Karnataka
Haryana Daman & Diu Orissa Manipur Kerala
Himachal Pradesh Dadar & Nagar Haveli West Bengal Mizoram Tamil Nadu
Jammu & Kashmir Madhya Pradesh Sikkim Meghalaya Pondicherry
Punjab Maharashtra Andaman Nicobar Nagaland Lakshadweep
7 Central Electricity Authority, 2012, Baseline Carbon Dioxide Emissions from Power Sector, Version 7.0 [online] Available at:
<http://cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm>

CDM-PDD-FORM
Rajasthan Goa Tripura
Uttar Pradesh
Uttarakhand
The baseline emission factor (including Imports) of Southern regional grid published by CEA is
considered for the calculation of emission reductions due to displacement of electricity in
accordance with the “Tool to calculate the emission factor for an electricity system”, version 02.2.1.
Step 2: Choose whether to include off-grid power plants in the project electricity system
According to the tool, the following two options are available to calculate the operating margin and
build margin emission factor:
Option I : Only grid power plants are included in the calculation.
Option II : Both grid power plants and off-grid power plants are included in the calculation.
Option II allows the inclusion of off-grid power generation in the grid emission factor, i.e. it aims to
reflect that in some countries, off-grid power generation is significant and can be partially displaced
by CDM project activities.
In the host country, the electricity grid being considered, i.e. the Southern grid is both reliable and
stable. Hence the off-grid power generation is not significant. Therefore, the project proponent has
considered Option I for calculation of operating margin and build margin emission factor.
Step 3: Select a method to determine the operating margin (OM)

According to the “Tool to calculate the emission factor for an electricity system” Version 02.2.1, the
calculation of operating margin (EFgrid,OM,y) is based on one of the following methods:
(a) Simple OM; or
(b) Simple adjusted OM; or
(c) Dispatched data analysis OM; or
(d) Average OM.
Any of the four methods can be used, however the simple OM method (option a) can only be used
if low cost/must run resources8 constitute less than 50% of total grid generation.
GRID 2006-07 2007-08 2008-09 2009-10 2010-11

NEWNE 18.5% 19% 17.4% 15.9% 17.6%
SOUTH 28.3% 27.1% 22.8% 20.6% 21.0%
INDIA 20.9% 21% 18.7% 17.1% 18.4%
The data as mentioned in table clearly shows that percentage of total grid generation by low
cost/must run sources 9 for the Southern grid is less than 50% of the total generation. Hence,
Simple Operating Margin method can be used to calculate operating margin emission factor for
the proposed project activity.
The project proponent choose an ex-ante option for calculation of the OM with a 3-year generation
weighted average, based on most recent data available at the time of submission of the CDM-PDD
to the DOE for validation, without requirement to monitor and recalculate the emission factor during
the crediting period.
Step 4: Calculate the Operating Margin emission factor (EFgrid,OM,y) according to the selected
method
Simple OM Method
The OM emission factor is calculated as the generation-weighted average CO2 emissions per unit
net electricity generation (tCO2/MWh) of all generating power plants serving the system, not
including low cost/ must-run power plants/units. The data vintage option selected is the ex-ante
approach, where a 3 year average OM is calculated. The most recent three year CEA data
published on the emission factor of Southern region is considered.
The simple OM may be calculated using one of the following two options:
8
Defined as Hydro, geothermal, wind, low cost biomass, nuclear and solar generation plants in the Methodological Tool: “Tool to
calculate the emission factor for an electricity system”, version 2.2.1
9
Source: Generation Data from CEA database, January 2012, Version 7.0

CDM-PDD-FORM
Option A Based on the net electricity generation and a CO2 emission factor of each power
unit; or
Option B Based on the total net electricity generation of all power plants serving the system
and the fuel types and total fuel consumption of the project electricity system.
For calculation of simple OM, option A is chosen because necessary data for the option is
available, and option B can only be used if the required data for option A is not available.
Option A - Calculation based on average efficiency and electricity generation of each plant
Under this option, the simple OM emission factor calculated based on the net electricity generation
of each power unit and an emission factor for each power unit, as follows:
ƩmEGm,y × EFEL,m,y
EFgrid,OMsimple,y =
ƩmEGm,y
Where:
EGgrid,OMsimple,y Simple operating margin CO2 emission factor in year y (tCO2/MWh)
EGm,y Net quantity of electricity generated and delivered to the grid by power unit m
in the year y (MWh)
FEEL,m,y CO2 emission factor of power unit m in year y (tCO2/MWh)
m All power units serving the grid in year y except low-cost/ must-run power
units
y The relevant year as per the data vintage chosen in step 3
Determination of EFEL,m,y
For calculation of emission factor of each power unit, the following options have been considered:
Option A1. If for a power unit m data on fuel consumption and electricity generation is available
Option A2. If for a power unit m only data on electricity generation and the fuel types used is
available
Option A3. If for a power unit m only data on electricity generation is available
Since data on fuel consumption and electricity generation is available, the emission factor in the
CEA database has been determined taking Option A1, as follows:
ƩiFCi,m,y × NCVi,y × EFCO2,i,y

EFEL,m,y =
EGm,y
Where:
EFEL,m,y CO2 emission factor of power unit m in year y (tCO2/MWh)
FCi,m,y Amount of fossil fuel type i consumed by power unit m year y (Mass or volume unit)
NCVi,y Net calorific value (energy content) of fossil fuel type i in year y (GJ/mass or volume
unit)
EFCO2,i,y CO2 emission factor of fossil fuel type i in the year y (tCO2/GJ)
EGm,y Net quantity of electricity generated and delivered to the grid by power unit m in the
year y(MWh)
m All power units serving the grid in year y except low-cost/ must-run power units
i All fossil fuel types combusted in power plant/ unit m in year y
y The relevant year as per the data vintage chosen in step 3
Step 5: Calculate the Build Margin (BM) Emission Factor

In order to calculate the build margin (BM) emission factor any one of the following options should
be considered:
Option 1: For the first crediting period, calculate the build margin emission factor ex ante based on
the most recent information available on units already built for sample group m at the time of CDM-
PDD submission to the DOE for validation. For the second crediting period, the build margin
emission factor should be updated based on the most recent information available on units already
built at the time of submission of the request for renewal of the crediting period to the DOE. For the
third crediting period, the build margin emission factor calculated for the second crediting period

CDM-PDD-FORM
should be used. This option does not require monitoring the emission factor during the crediting
period.
Option 2: For the first crediting period, the build margin emission factor shall be updated annually,
ex post, including those units built up to the year of registration of the project activity or, if
information up to the year of registration is not yet available, including those units built up to the
latest year for which information is available. For the second crediting period, the build margin
emissions factor shall be calculated ex ante, as described in Option 1 above. For the third crediting
period, the build margin emission factor calculated for the second crediting period should be used.
The value for Build Margin is taken from Central Electricity Authority (CEA) CO2 baseline database
Version 7 10 . The Build Margin emission factor has been determined using option 1. Also, the
sample group of power units m used to calculate the build margin has been determined by CEA
CO2 baseline database for Indian power sector, version 7 as per the following procedure:
The sample group of power units m used to calculate the build margin should be determined as per
the following procedure, consistent with the data vintage selected above:
(a) Identify the set of five power units, excluding power units registered as CDM project activities,
that started to supply electricity to the grid most recently (SET 5-units) and determine their annual
electricity generation (AEGSET-5-units, in MWh);
(b) Determine the annual electricity generation of the project electricity system, excluding power
units registered as CDM project activities (AEGtotal, in MWh). Identify the set of power units,
excluding power units registered as CDM project activities, that started to supply electricity to
the grid most recently and that comprise 20% of AEG total (if 20% falls on part of the generation
of a unit, the generation of that unit is fully included in the calculation) (SET _20%) and determine
their annual electricity generation (AEGSET-_20%, in MWh);
(c) From SET5-units and SET_20% select the set of power units that comprises the larger annual
electricity generation (SETsample).
Since none of the power units in SETsample started to supply electricity to the grid more than 10
years ago, SET>20% has been used to calculate the build margin.
The build margin emissions factor is the generation-weighted average emission factor (tCO2/MWh)
of all power units m during the most recent year y for which power generation data is available,
ƩmEGm,y × EFEL,m,y
EFgrid,BM,y =
ƩmEGm,y
Where:
EFgrid,BM,y Build margin CO2 emission factor in year y (tCO2/MWh)
EGm,y Net quantity of electricity generated and delivered to the grid by power unit m in year
y (MWh)
EFEL,m,y CO2 emission factor of power unit m in year y (tCO2/MWh)
m Power units included in the build margin
y Most recent historical year for which power generation data is available
Step 6: Calculate the combined margin (CM) emission factor

The calculation of the combined margin (CM) emission factor (EFgrid,CM,y) is based on one of the
following methods:
(a) Weighted average CM; or
(b) Simplified CM
The weighted average CM method (option A) should be used as preferred option.
The simplified CM method (option b) can only be used if:
 The project activity is located in a Least Developed Country (LDC) or in a country with less than
10 registered projects at the starting date of validation; and
 The data requirements for the application of step 5 above cannot be met.
Since the project activity is not located in a LDC and meets the data requirements for application of
step 5, therefore, the weighted average CM method (option A) is used.
The combined margin emission factor is calculated as follows:
10
Central Electricity Authority, 2012, Baseline Carbon Dioxide Emissions from Power Sector, Version 7.0 [online] Available at:
<http://cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm>

CDM-PDD-FORM
EFgrid,CM,y = EFgrid,OM,y × wOM + EFgrid,OM,y × wOM
Where:
EFgrid,OM,y Operating margin CO2 emission factor in year y (tCO2/MWh)
EFgrid,BM,y Build margin CO2 emission factor in year y (tCO2/MWh)
wOM Weighting of operating margin emission factor (%)
wBM Weighting of build margin emission factor (%)
As per the “Tool to calculate emission factor for an electricity system”; Version 02.2.1, for wind
power projects, the default weights are as follows: wOM = 0.75 and wBM = 0.25.
Leakage Emissions
As per ACM0002 Version 13.0.0, no leakage emissions are considered (LEy = 0).
Estimation of emission reductions

According to the approved methodology ACM0002 (Version 13.0.0) Emission Reductions are
ERy = BEy – PEy
Where:
BEy Baseline Emissions in year y (tCO2e/yr)
PEy Project Emissions in year y (tCO2e/yr)
B.6.2. Data and parameters fixed ex ante
Data / Parameter EFgrid,OM,y

Unit tCO2/MWh
Description Operating Margin CO2 Emission Factor for the project electricity
system (Southern Electricity Grid) in the year y
Source of data “CO2 Baseline Database for Indian Power Sector” version 7
(January 2012) published by the Central Electricity Authority,
Ministry of Power, Government of India11.
Value(s) applied Southern Grid - 0.9514
Choice of data or Operating Margin Emission Factor has been calculated using the
Measurement methods simple OM approach in accordance with ACM0002 and “Tool to
and procedures calculate the emission factor for an electricity system” Version
02.2.1. The generation weighted average of simple operating
margins of the year 2008-09, 2009-10, 2010-11 have been used to
calculate ex-ante OM.
Purpose of data To calculate baseline emissions
Additional comment -
Data / Parameter EFgrid,BM,y

Unit tCO2/MWh
Description Build Margin CO2 Emission Factor for the project electricity system
(Southern Electricity Grid) in the year y
(January 2012) published by the Central Electricity Authority,
Ministry of Power, Government of India
11
CO2 Baseline Database for Indian Power Sector, January 2012, Version 7.0

CDM-PDD-FORM
Choice of data or Build Margin Emission Factor has been calculated by the Central
Measurement methods Electricity Authority in accordance with ACM0002 and “Tool to
and procedures calculate the emission factor for an electricity system” Version
02.2.1. The ex-ante value for the year 2010-11 has been used.
Data / Parameter EFgrid,CM,y

Unit tCO2/MWh
Description Combined Margin CO2 Emission Factor for grid connected power
generation in year y
(January
2012) published by the Central Electricity Authority, Ministry of
Power, Government of India.
Choice of data or Combined Margin Emission Factor (EFgrid,CM,y) is calculated ex ante
Measurement methods as the weighted average of CO2 Operating Margin Emission Factor
and procedures (EFgrid,OM,y) and Build Margin Emission Factor (EFgrid,BM,y).
In case of wind power projects default weights of 0.75 for
EFgrid,OM,y and 0.25 for EFgrid,BM,y are applicable as per ACM0002,
version 13.0.0.
B.6.3. Ex ante calculation of emission reductions

>>
The baseline emissions are calculated using the combined margin approach. The baseline
emission factor is calculated in the following steps:
Step 1: Calculation of Operating Margin Emission Factor EFgrid,OM,y (ex-ante)
The operating margin emission factor has been calculated using a 3 year data vintage:
Simple Operating Margin (tCO2/MWh) (incl. Imports) 2008-09 2009-10 2010-11

Southern Grid 0.9729 0.9415 0.9419
Thus the final EFgrid,OM,y for the Southern grid based on three years weighted average calculation is
estimated to be 0.9514 tCO2/MWh.
Step 2: Calculation of the Build Margin Emission Factor EFgrid,BM,y (ex-ante)

The Build margin emission factor has been calculated ex-ante based on the most recent
information available on plants already built for sample group m at the time of PDD submission.
The sample group m consists of the power plant capacity additions in the electricity system that
comprise 20% of the system generation (in MWh) and that have been built most recently as this
sample group comprises larger annual generation than the generation of the sample group m
consisting of the five power plants that have been built most recently.
Build Margin (tCO2/MWh) (incl. Imports) 2008-09 2009-10 2010-11

Southern Grid 0.8179 0.7634 0.7339
EFgrid,BM,y estimated for Southern grid is 0.73388 tCO2/MWh (with sample group m constituting
most recent capacity additions to the grid comprising 20% of the system generation).
Step 3: Calculation of Combined Margin Emission Factor

CDM-PDD-FORM
The baseline emission factor is the combined margin emission factor (EFgrid,CM,y), calculated as the
weighted average of the Operating Margin emission factor (EFgrid,OM,y) and the Build Margin
emission factor (EFgrid,BM,y):
EFgrid,CM,y = EFgrid,OM,y × wOM + EFgrid,OM,y × wOM
Where the weights wOM and wBM, are 0.75 and 0.25 respectively, and EFgrid,OM,y and EFgrid,BM,y are
calculated as described in Steps 1 and 2 above and are expressed in tCO2/MWh. Baseline
Emission factor calculated according to the above formula for Southern grid is 0.8970 tCO2/ MWh.
Step 4: Calculation of Baseline Emissions (BEy)

According to “Consolidated baseline methodology for grid- connected electricity generation from
renewable sources’ ACM0002, Version 13.0.0, the baseline emissions is calculated as electricity
supplied to the grid multiplied by an emission factor (measured in tCO2/MWh) calculated in a
transparent and conservative manner.
BEy = EGfacility,y × EFgrid,CM,y

Where:
BEy Baseline emissions in year y (tCO2/yr)
EGfacility,y Quantity of net electricity generation supplied by the project plant/unit to the grid in
year y (MWh/yr)
EFgrid,CM,y Combined margin CO2 emission factor for grid connected power generation in year
y calculated using the latest version of the “Tool to calculate the emission factor for
an electricity system” (tCO2/MWh)
Therefore,
Baseline emissions = 112186.00 MWh/yr × 0.8970 tCO2/MWh
= 100630.84 tCO2/yr
= 100,630 tCO2/yr (round down value)
Step 5: Calculation of Emission Reductions (ERy)

The emission reductions by the project activity during a given year y is the difference between
Baseline emissions (BEy) and project emissions (PEy).
ERy = BEy – PEy

Since, project emissions by sources of GHGs due to the project activity within the project boundary
are zero, net anthropogenic emission reductions due to the proposed project are equal to the
baseline emissions on a yearly basis. The project activity will evacuate approximately 112186.00
MWh of renewable power annually to the power deficit Southern. The annual emissions reductions
are equal to 100,630 tCO2e.
B.6.4. Summary of ex ante estimates of emission reductions

>>
Baseline Project Emission
Leakage
Year emissions emissions reductions
(t CO2e)
(t CO2e) (t CO2e) (t CO2e)
Year 1 100,630 0 0 100,630
Year 2 100,630 0 0 100,630
Year 3 100,630 0 0 100,630
Year 4 100,630 0 0 100,630
Year 5 100,630 0 0 100,630
Year 6 100,630 0 0 100,630
Year 7 100,630 0 0 100,630
Year 8 100,630 0 0 100,630
Year 9 100,630 0 0 100,630
Year 10 100,630 0 0 100,630
Total 1,006,300 0 0 1,006,300

CDM-PDD-FORM
Total number of
10
crediting years
Annual average
over the 100,630 0 0 100,630
crediting period
B.7. Monitoring plan
B.7.1. Data and parameters to be monitored
Data / Parameter EGfacility,y

Unit MWh/yr
Description Quantity of net electricity generation supplied by the project plant/
unit to the grid in year y
Source of data Joint Meter Reading (JMR) or statement
Value(s) applied Annual electricity supplied to the Southern grid by the project is
112186.00
Measurement methods Electricity meters: Metering system for the project activity consists
and procedures of three sets of electronic bidirectional tri-vector meters viz. Main
meter, Check Meter and Stand-by Meter.
- Accuracy class 0.2s for Main meter, Check meter and Stand-by
meter
Recording frequency: Continuous measurement, at least monthly
recording
Calibration frequency: Annual
Responsible person: Plant operator
Monitoring frequency Monthly
QA/QC procedures Cross check the measurement results with bill or invoice.
Additional comment The data (electricity supplied to the grid) will be archived on
electronic media as well as on paper. The archive will be kept for
the period up to two years after the completion of the crediting
period or the last issuance of CERs for the project activity,
whichever occurs later.
B.7.2. Sampling plan

>>
As the parameter to be monitored does not require sampling approach for its determination, this
section is not applicable for the proposed project activity.
B.7.3. Other elements of monitoring plan

>>
As per the applicable methodology ACM0002, monitoring is required for electricity generated from
the project and the grid emission factor.
Since the methodology is based on ex-ante determination of the baseline emissions, the
monitoring of the grid emission factor is not required. Thus, the sole parameter for monitoring for
the project activity is the electricity supplied to the grid.
The project proponent has entered into comprehensive Operation & Maintenance contract with
Enercon (India) Limited, the supplier of Wind Electric Generators.
The activities of the O&M team comprising of Enercon (India) Ltd. will be supervised by the Project
Manager of TWEPL, assisted by the necessary technical and other staff. The following will be
maintained during operation of the project activity.

CDM-PDD-FORM
i. Monitoring the functioning of the metering arrangements and getting them calibrated as per the
State Electricity Board norms or on annual basis, so that the accuracy and reliability levels are
maintained.
ii. Periodic on-site inspections to ensure the quality of the data collected by the team and initiate
steps in case of any abnormal conditions.
iii. Ensure monthly recording of the generation particulars.
iv. Obtaining and archiving the generation certificates from the State Electricity Board for
aggregation at the required intervals.
v. Verification and reconciliation, if needed, of the generation certificates with the generation data
recorded and maintained regularly.
vi. Aggregating the data on net exported energy from the project thus reconciled and submission
to TWEPL. This will then be forwarded to the CDM advisor for calculation and reporting of ERs.
The O&M organizational structure is provided as below:
Project Manager
Site-in-Charge
Supervisor
Technician
Metering system and monitoring plan

 The metering system consists of three sets of electronic bidirectional tri-vector meters, i.e.,
Main Meter, Check Meter and Stand-by meters. For this proposed project activity, there are
seven such sets of meters.
 Joint Meter Reading shall be taken by the representatives of Enercon and APCPDCL at the
high voltage side of the step up transformer (33kV) at metering points.
 In case the main metering system is not in service, then the check metering system shall be
used until the main system is back to service.
 Meter reading would be jointly signed by both the representatives.
 The metering systems shall be sealed in presence of representatives of Power producers,
Enercon, and APCPDCL.
 When any of these metering systems is found to be outside acceptable limits of accuracy or
otherwise not functioning properly, it shall be repaired, recalibrated or replaced.
 PP will raise a monthly energy bill/statement based on the JMR at the end of each calendar
month and the payment by State Electricity Board is done on this basis. The billing and
payment records will be maintained by the PP.
 Calibration and Testing of Meters will be done annually.

CDM-PDD-FORM
WEGi…WEGn
3-set Meters
(Main, Check & Stand-by)
APTRANSCO Sub-station
(Shahpuram)
Calculation of data
EGfacility,y = Ʃ(i=1 to n) Net energy for each WEG
Formula for apportionment of net energy for each WEG
EGnet,SS
Net Energy for each WEG = × EGnet,i
ƩEGnet,p
Where:
EGnet,ss = Net electricity at substation
EGnet,i = Net Electricity generated by a WEG
EGnet,n = Net electricity generated by the project
i = Individual WEG
n = Total number of WEGs
Cross checking and Internal Audit procedure

The internal audit will be undertaken by TWEPL which will verify the energy data records, billed
units as per bills raised to the state electricity board, and cross verify with the reports furnished by
the project site managers. The internal audit report will be furnished to the TWEPL management.
QA and QC Procedures
The electricity meter with accuracy class 0.2s at substation end (i.e. one main and one check
meter) will be installed. Calibration certificates of meters will be kept in records in seriatim.
Data Storage and Archiving

All the data items monitored under the monitoring plan will be kept for 2 years after the end of
crediting period or till the last issuance of CERs for this project activity, whichever occurs later. The
data will be archived both electronically and manually, and kept in safe storage by TWEPL.
B.8. Date of completion of application of methodology and standardized baseline and

contact information of responsible persons/ entities
>>
Date of completion of application of methodology:
06/11/2015
Contact Information of responsible entity:

IL&FS Environmental Infrastructure and Services Limited

CDM-PDD-FORM
4th floor, Dr. Gopal Das Bhawan, 28 Barakhamba Road
Connaught Place, New Delhi – 110 001 (India)
SECTION C. Duration and crediting period
C.1. Duration of project activity
C.1.1. Start date of project activity

>>
19/08/2011
(Date on which first purchase order was issued to the equipment supplier Enercon (India) Ltd. for
WEGs to be installed at the site)
C.1.2. Expected operational lifetime of project activity

>>
20 years, 0 months
C.2. Crediting period of project activity
C.2.1. Type of crediting period

>>
Fixed
C.2.2. Start date of crediting period

>>
15/12/2012 or the date of registration of project, whichever is later
C.2.3. Length of crediting period

>>
10 Years, 0 Months
SECTION D. Environmental impacts
D.1. Analysis of environmental impacts

>>
As per the Ministry of Environment & Forest (MoEF), Government of India, Environmental Impact
Assessment (EIA) studies of the wind power generation plant is not an essential requirement as it
is not covered under the eleven categories 12 as described in EIA Notification of 1994, or the
Amended Notifications of 2006 and 2009. Also, the project activity does not cause any negative
impact on the environment, no EIA study was conducted.
D.2. Environmental impact assessment

>>
There are no significant environmental impacts due to implementation of the project activity.
SECTION E. Local stakeholder consultation
E.1. Solicitation of comments from local stakeholders

>>
The comments from local stakeholders were invited through a local stakeholder meeting conducted
at Gandhi Circle, Near TDPO Office, Penukonda Village in Anantpur district, Andhra Pradesh on
08/06/2012. A public notice was published in the local daily named ‘Metro Evenings’ and in an
English newspaper named ‘Voice of Words’ dated 25/05/2012 inviting all interested employees,
12 Ministry of Environment & Forests, 2006, S.O.1533(E) Environmental Impact Assessment Notification-2006, Schedule: List of
projects or activities requiring prior environmental clearance, page 10 [online] Available at: <http://envfor.nic.in/legis/eia/so1533.pdf>

CDM-PDD-FORM
community members, wind turbine suppliers, environment regulators, NGOs and local citizens for
the stakeholder consultation meeting.
The meeting was attended by the following stakeholders:
 Representatives from TWEPL
 Representatives from Enercon (India) Ltd.
 Representatives from IL&FS Environmental and Infrastructure Services Limited
 Local villagers
The stakeholders were introduced to the project activity by a representative from the Enercon
team. The representatives from Enercon and TWEPL gave detailed information to the stakeholders
about the wind power project. A description of how electricity is generated from wind power was
explained. The role of the project activity in mitigating the GHG emissions and benefits to the
people in terms of improvement in pollution levels were also highlighted.
E.2. Summary of comments received

>>
The stakeholders shared their views on the project activity. Most of the villagers showed positive
response. They were hopeful that the proposed project activity will help in the development of the
local community, generate more employment and solve the electricity problem without harming
their natural surroundings.
Following queries were raised by the local community:
 Will there be any effect on the cattle grazing near the project area from the commencement of
the project?
 Will the machines installed create sound and disturb the surrounding?
 Will the local people employment relating to the project?
 Will the machines installed create any problem or disturbance to the clouds and rainfall in
surroundings?
The meeting was very cordial and ended on a positive note. The stakeholders were very
appreciative of the benefits coming to the community from the CDM project activity. Thus, no
adverse comments were received regarding the project activity and all the queries raised were
satisfactorily addressed. Overall, the development of infrastructure in the locality was appreciated.
E.3. Report on consideration of comments received

>>
The following responses were provided in relation to the comments received (as mentioned in
section E.2) from the local stakeholders:
 There will be no effect on the cattle grazing near the project as there is no relation between the
project and cattle grazing.
 Many companies have installed wind projects in several villages and no such problem has
been faced. The sound from the machines is negligible and carries no significant effect or is of
major concern.
 There will be opportunities for the people living in vicinity of the project area.
 In our country there are around 7000MW wind power commissioned and at all the places
neither there is any shortage of rainfall nor is any disturbance to the clouds observed due to
WEGs.
At the end of the consultation, the stakeholders were convinced that the project activity would not
adversely impact their environment or livelihood. Moreover, the project would provide employment
opportunities to the local people as construction workers, watchmen, security guards and drivers
on site.
The project proponents were commended for their action towards environment protection. Apart
from the above comments and questions, no major issues were raised that could be related to the
environmental or CDM aspect of the project. All comments and questions were duly taken into
account by the project developer and addressed satisfactorily.
SECTION F. Approval and authorization
>>
Host Country Approval, Ref: 4/15/2012-CCC, dated: 22/11/2012 have been received from the
National CDM Authority of India, i.e. Indian DNA.

CDM-PDD-FORM
-----

CDM-PDD-FORM
Appendix 1. Contact information of project participants and

responsible persons/ entities
Project participant Project participant

and/or responsible Responsible person/ entity for application of the selected methodology
person/ entity (ies) and, where applicable, the selected standardized baselines to the
project activity
Organization name Tadas Wind Energy Private Limited
(previously known as Tadas Wind Energy Limited)
Street/P.O. Box Plot C- 22, G Block, Bandra Kurla complex
Building 8th Floor, IL&FS Financial Centre
City Mumbai
State/Region Maharashtra
Postcode 400051
Country India
Telephone +91 22 26593728
Fax +91 22 26593728
E-mail [email protected]
Website http://www.ilfsindia.com/
Contact person Mr. Rohil Kudtarkar
Title Authorized Signatory
Salutation Mr.
Last name Kudtarkar
Middle name -
First name Rohil
Department Finance
Mobile -
Direct fax +91 22 26593728
Direct tel. +91 22 26593728
Personal e-mail [email protected]
Project participant Project participant

and/or responsible Responsible person/ entity for application of the selected methodology
person/ entity (ies) and, where applicable, the selected standardized baselines to the
project activity
Organization name IL&FS Environmental Infrastructure and Services Limited
Street/P.O. Box 28, Barakhamba Road, Connaught Place
Building 4th Floor, Dr. Gopaldas Bhavan
City New Delhi
State/Region Delhi
Postcode 110001
Country India
Telephone +91 11 49691000
Fax +91 11 49691099
E-mail [email protected]
Website http://www.ilfsenv.com/
Contact person Mr. Subrata Chakrabarty

CDM-PDD-FORM
Title -
Salutation Mr.
Last name Chakrabarty
Middle name -
First name Subrata
Department CDM
Mobile -
Direct fax -
Direct tel. -
Personal e-mail [email protected]

CDM-PDD-FORM
Appendix 2. Affirmation regarding public funding
No public funding and no ODA from a country listed in Annex. 1 is involved in this project activity.

CDM-PDD-FORM
Appendix 3. Applicability of methodology and standardized
baseline
Refer to section B.2

CDM-PDD-FORM
Appendix 4. Further background information on ex ante
calculation of emission reductions
For baseline calculation

The latest data available has been used for the estimation of baseline emissions. The Central
Electricity Authority (CEA) under the Ministry of Power, Government of India, has estimated the
Build Margin and the Simple Operating Margin for the Southern Grid. The details of which is
available on the following website and is detailed below:
http://www.cea.nic.in/reports/planning/cdm_co2/cdm_co2.htm
Version 7.0 of the database has been used.
Generation Data
Gross Generation Total (GWh)

2006-07 2007-08 2008-09 2009-10 2010-11
NEWNE 499,380 531,539 548,956 586,311 622,447
South 161,897 167,379 167,587 180,638 185,257
India 661,277 698,918 716,543 766,950 807,704
Net Generation Total (GWh)
2006-07 2007-08 2008-09 2009-10 2010-11
NEWNE 465,361 496,119 510,693 544,915 579,181
South 152,206 157,247 157,336 169,765 173,925
India 617,567 653,366 668,029 714,680 753,106
Share of Must-Run (Hydro/Nuclear) (% of Net Generation)
2006-07 2007-08 2008-09 2009-10 2010-11
NEWNE 18.5% 19.0% 17.4% 15.9% 17.6%
South 28.3% 27.1% 22.8% 20.6% 21.0%
India 20.9% 21.0% 18.7% 17.1% 18.4%
Net Generation in Operating Margin (GWh)
2006-07 2007-08 2008-09 2009-10 2010-11
NEWNE 379,471 401,642 421,803 458,043 476,987
South 109,116 114,634 121,471 134,717 137,387
India 488,587 516,275 543,274 592,760 614,374
20% of Net Generation (GWh)
2006-07 2007-08 2008-09 2009-10 2010-11
NEWNE 93,072 99,224 102,139 108,983 115,836
South 30,441 31,449 31,467 33,953 34,785
India 123,513 130,673 133,606 142,936 150,621
Net Generation in Build Margin (GWh)
2006-07 2007-08 2008-09 2009-10 2010-11
NEWNE 93,524 100,707 102,589 109,064 117,779
South 30,442 31,613 31,606 36,100 35,268
India 123,965 132,320 134,195 145,164 153,047
Emission Data
Absolute Emissions Total (tCO2)

2006-07 2007-08 2008-09 2009-10 2010-11
NEWNE 385,692,794 406,861,785 430,502,442 453,067,520 468,438,871
South 109,020,456 113,586,133 117,880,640 126,786,215 129,093,636
India 494,713,250 520,447,919 548,383,082 579,853,735 597,532,507
Absolute Emissions OM (tCO2)
2006-07 2007-08 2008-09 2009-10 2010-11

CDM-PDD-FORM
NEWNE 385,692,794 406,861,785 430,502,442 453,067,520 468,438,871
South 109,020,456 113,586,133 117,880,640 126,786,215 129,093,636
India 494,713,250 520,447,919 548,383,082 579,853,735 597,532,507
Absolute Emissions BM (tCO2)
2006-07 2007-08 2008-09 2009-10 2010-11
NEWNE 59,042,467 60,193,616 69,297,387 88,593,337 101,146,601
South 21,348,182 22,550,310 25,851,338 27,558,555 25,882,886
India 80,390,649 82,743,926 95,148,726 116,151,892 127,029,488
Electricity transfer
Year 2010-2011
From/ To Combined Southern Bhutan Nepal
Combined 7,689.2 -5,610.0 0.0
Southern -7,689.2 0.0 0.0
Bhutan 5,610.0 0.0 0.0
Nepal 0.0 0.0 0.0
Net imports -2,079.2 7,689.2 -5,610.0 0.0
Total Imports 5,610.0 7,689.2 0.0 0.0
Emission Factor Calculation
Simple Operating Margin (tCO2/MWh) (incl. Imports) 2008-09 2009-10 2010-11

Southern Grid 0.9729 0.9415 0.9419
Build Margin (tCO2/MWh) (incl. Imports) 2008-09 2009-10 2010-11

Southern Grid 0.8179 0.7634 0.7339

CDM-PDD-FORM
Appendix 5. Further background information on monitoring
plan
Refer to section B.7.3

CDM-PDD-FORM
Appendix 6. Summary of post registration changes
Name of PP: The name of PP has been revised from Tadas Wind Energy Limited to Tadas Wind
Energy Private Limited throughout the CDM-PDD-FORM, v04.0. The change in the name of PP
has already been approved by CDM EB and is evident in the UNFCCC CDM website 13.
Project Boundary: The diagram in section B.3 of revised CDM-PDD-FORM, v04.0 has been
revised in order to reflect the actual metering position and indicate the emission sources and
GHGs included in the project boundary along with data and parameters to be monitored; in-line
with Instructions for filling out the project design document form for CDM project activities, v06.0.
Electricity metering systems: The metering system has been corrected in section B.7.1 and
B.7.3 of revised CDM-PDD-FORM, v04.0 in-line with the actual practice observed at site.
Accordingly, the diagram in section B.7.3 has also been revised in order to reflect the actual
metering system.
Date of completion of application of methodology and standardized baseline and contact
information of responsible persons/ entities: As required by the latest CDM-PDD-FORM, v06.0
and in-line with Instructions for filling out the project design document form for CDM project
activities, v06.0; PP provided the required information in section B.8 of revised CDM-PDD-FORM,
v04.0.
-----
13 https://cdm.unfccc.int/Projects/DB/LRQA%20Ltd1355495522.4/view

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CDM-PDD-FORM

Project design document form for

PROJECT DESIGN DOCUMENT (PDD)

Title of the project activity Nallakonda wind farm in Andhra Pradesh

Version number of the PDD 04.0

Completion date of the PDD 23/11/2015

Project participant(s) Tadas Wind Energy Private Limited

Version 06.0 Page 1 of 35

SECTION A. Description of project activity

A.1. Purpose and general description of project activity

Scenario Existing Prior to the Implementation of the Project Activity

Project Scenario and the Technology employed

Contribution to reduction in GHG emissions by the proposed project activity

Contribution of project activity to sustainable development

Version 06.0 Page 2 of 35

A.2. Location of project activity

A.2.1. Host Party

A.2.2. Region/State/Province etc.

A.2.3. City/Town/Community etc.

A.2.4. Physical/Geographical location

48 77.571021 14.175637 82 77.556372 14.172389

Version 06.0 Page 3 of 35

A.3. Technologies and/or measures

Version 06.0 Page 4 of 35

A.4. Parties and project participants

Private and/or public Indicate if the Party involved

Private Entity: Tadas Wind

A.5. Public funding of project activity

SECTION B. Application of selected approved baseline and monitoring

B.1. Reference of methodology and standardized baseline

Version 06.0 Page 5 of 35

B.2. Applicability of methodology and standardized baseline

APPLICABILITY CONDITIONS UNDER ACM0002,

Version 06.0 Page 6 of 35

Version 06.0 Page 7 of 35

B.3. Project boundary

Version 06.0 Page 8 of 35

Source GHGs Included? Justification/Explanation

B.4. Establishment and description of baseline scenario

B.5. Demonstration of additionality

Sub-step 1a: Define alternatives to the project activity

Version 06.0 Page 9 of 35

Sub-step 1b: Consistency with Mandatory Laws and Regulations

Step 2: Investment Analysis

Sub-step2a: Determine appropriate analysis method

Sub-step2b: Option III. Apply benchmark analysis

Version 06.0 Page 10 of 35

Average forecasted inflation rate for 2011-2016 = 4.76%

Sub-step2c: Calculation and comparison of financial indicators

Version 06.0 Page 11 of 35

Sub-step 2d: Sensitivity Analysis

RESULTANT EQUITY IRR

Step 4: Common Practice Analysis

-50% CAPACITY (MW) +50%

Version 06.0 Page 12 of 35

Project Category Number of Projects

3 CO2 baseline database for Indian power sector, CEA, version 7

Version 06.0 Page 13 of 35

Serious Consideration of CDM and Continued Action to Secure CDM status