PDD Jilin Baicheng Chaganhot Wind - China

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM – Executive Board
page 1
CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 03 - in effect as of: 28 July 2006
CONTENTS
A. General description of project activity
B. Application of a baseline and monitoring methodology
C. Duration of the project activity / crediting period
D. Environmental impacts
E. Stakeholders’ comments
Annexes
Annex 1: Contact information on participants in the project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring plan

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

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Jilin Baicheng ChaganHot Wind Power Project
Version number of the document: 3
Date: March 8th, 2007
A.2. Description of the project activity:

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The objective of Jilin Baicheng ChaganHot Wind Power Project (hereafter refers to the proposed project)
is to utilize wind resources for electricity generation through the installation and operation of 30MW
wind farm at Baicheng, Jilin Province, P. R. China. The proposed project is a grid-connected renewable
energy project, from which the electricity generated will be sold to the Jilin Provincial Power Grid, an
integral part of the North East China Power Grid. The proposed project activity will achieve obvious
greenhouse gas (GHG) emission reductions by avoiding CO2 emissions, as grid-connected fossil fuel-
fired power plants are dominated in the North East China Power Grid.
The proposed project is located in ChaganHot Tourism and Economy Development Area, Baicheng City,
Jilin Province, People’s Republic of China. It will construct a wind farm with total capacity of 30MW,
and a 66kV substation. The project is designed to produce 50.635GWh of electricity per year from wind
energy with the proposed total installation capacity, replacing fossil fuel consumption, and thus reducing
GHG emissions. Economic growth, social benefits and environmental improvement will be achieved in
the region by conducting of the project. Furthermore, the proposed project plans to utilize domestic made
state-of-the-art wind turbines to promote Chinese wind turbine manufacturing industry by increasing its
market share and the employment opportunities.
A.3. Project participants:

>>
Please list project participants and Party(ies) involved and provide contact information in Annex 1.
Information shall be in indicated using the following tabular format.
Name of Party involved (*) Private and/or public Kindly indicate if
((host) indicates a host entity(ies) the Party involved
Party) project participants (*) wishes to be
(as applicable) considered as
project participant
(Yes/No)
Peoples’ Republic of China CWIC Baicheng Wind Power
No
(host) Development Co., Ltd.
Spain Endesa Generación S. A. No
(*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public
at the stage of validation, a Party involved may or may not have provided its approval. At the time of
requesting registration, the approval by the Party(ies) involved is required.
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Host Country: People’s Republic of China, which has ratified the Kyoto Protocol to the United Nations
Framework Convention on Climate Change in August 2002
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:

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A.4.1.1. Host Party(ies):

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People’s Republic of China
A.4.1.2. Region/State/Province etc.:

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Jilin Province
A.4.1.3. City/Town/Community etc:

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ChaganHot Tourism and Economy Development Region, Baicheng City
A.4.1.4. Detail of physical location, including information allowing the

unique identification of this project activity (maximum one page):
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The proposed project is located in the ChaganHot Tourism and Economy Development Area of Baicheng
City, Jilin Province, People’s Republic of China. The project is 40 km away from the Baicheng City, and
in the north of provincial highway No.204. The project has geographical coordinates with east longitude
of 120°22’ 2.1” and north latitude of 45°53’ 50.8’’.
Figure A1. The proposed project in the map of Jilin Province, P. R. China
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ChaganHot
A.4.2. Category(ies) of project activity:

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Category: Renewable electricity in grid connected applications
Sectoral Scope: 1 Energy industries
A.4.3. Technology to be employed by the project activity:

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The proposed project involves the installation of 40 wind turbines with each capacity of 750 kW, and
totals up an installation capacity of 30MW. The 40 wind turbines of 750kW will be supplied by the
biggest Chinese wind turbine manufacturer – Goldwind Science & Technology Ltd. The S48/750 wind
turbine is advanced domestic made wind turbine in China. The machine has a nominal electrical power of
750kW, the designed life span amounts 20 years.
Wind resource in the region is good, with an average wind speed about 5.1m/s at a height of 10m and
6.6m/s at a height of 48m. The situation of the disastrous wind speed that is over 20m/s is rare according
to the data collected during the on-site wind resource assessment.
The capacity factor is estimated to be 20.29% based on extensive monitoring of the available local wind
resource. The proposed project is therefore expected to generate approximately 50.635GWh of electricity
per year that will be sold to the Jilin Provincial Power Grid, which is an integral part of the North East
China Power Grid,
A 66kV substation and a 2km transmission line will be set up at the site, which connect the proposed
project to the 220kV substation in Baicheng. By so-doing, the power produced in the wind farm can be
transmitted to the North East China Power Grid.
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A.4.4 Estimated amount of emission reductions over the chosen crediting period:
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A crediting period of 7 (seven) years (renewable twice) is selected for the project activity. An estimation
of emissions reductions expected over the crediting period is provided in the table below1.
Years Annual estimation of emission reductions

in tonnes of CO2e
2007 18,590
2008 55,771
2009 55,771
2010 55,771
2011 55,771
2012 55,771
2013 55,771
2014 37,181
Total estimated reductions
(tonnes of CO2e) 390,397
Total number of crediting years 7
Annual average over the crediting period of
55,771
estimated reductions (tonnes of CO2e)
A.4.5. Public funding of the project activity:

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There is no public funding for this project.
1
The feasibility study of the proposed project was developed in June 2005 and got approved in Oct 2005. The
proposed project reached ERPA with Endesa in Sept 2006 and started construction in the same month. The
proposed project is expected to be put into delivery in May 2007 and to be registered at EB around Sept 1st 2007.
The first seven year crediting period will start from Sept 1, 2007 to August 30, 2014.
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SECTION B. Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the
project activity:
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The approved methodology applied in the proposed project activity is ACM0002 – “Consolidated
methodology for grid-connected electricity generation from renewable sources”, Version 6. Wind source
that is utilized in the proposed project is included in the applicable conditions of ACM0002. For more
information regarding the methodology please refer to http://cdm.unfccc.int/metholdogies/approved.
Version 2 of Tool for the Demonstration and Assessment of Additionality is also applied in the proposed
project.
B.2 Justification of the choice of the methodology and why it is applicable to the project
activity:
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The approved consolidated methodology: ACM0002 is applied here to determine the of the proposed
project. The project activity is a newly installed electricity capacity from wind energy in the North East
China Power Grid. The grid can be clearly identified and information on its characteristics is available,
which is in line with the ACM0002 requirements. The proposed project meets all applicability conditions
of methodology ACM0002 which are listed as follows:
1) The proposed project will install a new electricity capacity from wind energy;
2) The proposed project does not involve switching from fossil fuels to renewable energy at the site;
3) The geographic and system boundaries of North East China Power Grid to which the proposed
project will be connected can be clearly identified and information on the characteristics of the gird is
available.
B.3. Description of the sources and gases included in the project boundary
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According to the methodology ACM0002, Version 6, a grid-connected wind power project like the
proposed project is required to consider only the CO2 emissions from fossil fuels fired power plants in
baseline scenario.
Source Gas Included? Justification / Explanation

Baseline Fossil fuels CO2 Yes Major emission sources
fired power CH4 No Excluded for simplification. This is
plants conservative.
N2O No Excluded for simplification. This is
conservative.
Project On-site fuel CO2 No Excluded for simplification.
Activity combustion CH4 No Excluded for simplification.
to the project N2O No Excluded for simplification.
activity
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According to the methodology (ACM0002), a project electricity system is defined by the spatial extent of
the power plants that can be dispatched without significant transmission constraints. The proposed project
is within the boundary of the North East China Power Grid, which geographical range includes
Heilongjiang Province, Jilin Province and Liaoning Province2.
B.4. Description of how the baseline scenario is identified and description of the identified
baseline scenario:
>>
In absence of the proposed project, reasonable and credible alternatives that are in accordance with
current laws and regulations include:
1) The proposed project not taken as CDM project;
2) Construction of a fossil fuel power plant with equivalent amount of installed capacity or annual
electricity output;
3) Construction of a power plant using other source of renewable energy with equivalent amount of
installed capacity or equivalent amount of annual electricity output; and
4) Supply of equivalent annual power output by the Grid where the proposed project is connected.
Specific analysis on the four alternative scenarios in absence of the proposed project is as follows:
1) The development of a new wind energy project of the same capacity (30MW) under a fully
commercialized condition without CDM is very difficult in China. Without additional financial
support directly, significant barriers are expected for a new wind farm development that are presented
in details in Step 3 Barrier Analysis. Therefore, the Scenario 1) cannot be considered as an alternative.
2) Same installation capacity of a fossil fuel power plant as the proposed project (30MW) will not
happen, because coal-fired plants with a capacity of 135MW or less are prohibited from building in
large grid such as provincial girds3 according to current regulations in China. It’s known that
operational hour of a fossil fuel power plant is at least 2 times more than that of a wind power project
with the same capacity. Therefore, the alternative fossil fuel power plant with the equivalent power
output as the proposed project refers to a fossil fuel power plant of 15MW or less, which is not
possibly built either under China’s existing regulatory framework. Consequently, this is not a feasible
alternative scenario to replace the proposed project.
3) Besides wind energy, solar PV, geothermal, biomass and hydro are the possible grid-connected
renewable energy technologies that could be applied in the North East China Power Grid. Due to the
technology development status and the high cost for power generation, solar PV, geothermal and
biomass of the similar installed capacity as the proposed project are alternatives far from being
attractive investment in the grid in China. Only hydropower projects have the investment return rate
that can compete over that of wind power projects in China. For the proposed project, the site is a
piece of flat grassland with no exploitable resources for hydropower development. Despite the fact
that Jilin province has the most abundant hydropower resources in Northeast China, it’s left no more
exploitable resources for the development of any new hydropower plant with medium-large scale.
Moreover, although there is some potential for the development of small-scale hydropower projects,
2
The electricity import and output between Northeast China Power Grid and other girds (North China Power Grid)
is very insignificant and not necessary to be considered when calculating EF of grid.
3
Notice on Strictly Prohibiting the Installation of Fuel-fired Generation with the Capacity of 135MW or below
issued by the General Office of the State Council, decree no. 2002-6
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obvious hurdles still exist. As a matter of fact, existing hydropower plants in Jilin province at present
are mainly used for the purpose of peak load regulation and the grid security of the North East China
Power Grid. In conclusion, with limited usable hydropower resources in Northeast China, and with
higher amount of investment cost (not less than that of wind power) and less annual operating hours,
the economic return of a hydropower plant with similar capacity is less attractive than that of the
proposed project. Only 25.6MW new capacity from hydropower in Jilin Province has been installed
from 2001 to 20044. It is obvious that the development of hydropower plant similar with the proposed
project in the province will meet significant investment barrier and not feasible under fully
commercial condition at present. Hence the Scenario 3) is not feasible as an alternative scenario.
4) The installed capacity of North East China Power Grid keeps increasing for many years. In 2003, the
total installed capacity increased by 8.9% with new power plants installed as well as capacity
additions from existing power plants. Hence, the alternative 4) is a feasible alternative. As a result,
North East China Power Grid is selected as the baseline for the proposed project.
In conclusion, the only practical and feasible baseline scenario is the alternative 4).
B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered CDM project activity (assessment
and demonstration of additionality): >>
The additionality of the proposed project is demonstrated and assessed by the approved Tool for the
Demonstration and Assessment of Additionality. Following steps include:
Step 0. Preliminary screening based on the starting date of the project activity
The crediting period of the proposed project will not start before the registration of the project activity.
Step 1. Identification of alternatives to the project activity consistent with current laws and
regulations
Define realistic and credible alternatives to the project activity(s) that can be (part of) the baseline
scenario through the following sub-steps:
Sub-step 1a. Define alternatives to the project activity:

In absence of the proposed project, reasonable and credible alternatives that are in accordance with
current laws and regulations include:
1) The proposed project not taken as CDM project;
2) Construction of a fossil fuel power plant with equivalent amount of installed capacity or annual
electricity output;
3) Construction of a power plant using other source of renewable energy with equivalent amount of
installed capacity or equivalent amount of annual electricity output; and
4) Supply of equivalent annual power output by the Grid where the proposed project is connected.
In conclusion, as discussed in B4, the only practical and feasible baseline scenario is the alternative 4).
Sub-step 1b. Enforcement of applicable laws and regulations:
4
Source: China Power Year Book 2002 and 2005
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The B4 contains the confrontation of the alternatives with China’s applicable laws and regulations.
Alternative 1), 2) and 3) are excluded.
A further argument is that the project activity is consistent with the national policies for environmental
protection, energy conservation and sustainable development. However, there possesses no binding legal
and regulatory requirements for this type of projects yet. The adoption of China’s Renewable Energy Law
by the National People’s Congress on 28th February 2005 should be qualified as a Type E- law, and hence,
not be considered as the baseline scenario.
It could be concluded that the alternative 4) is in line with the existing Chinese laws and regulations.
Step 2. Investment analysis

The purpose of this step is to determine whether the proposed project activity is economically or
financially less attractive than other alternatives without an additional funding that may be derived from
the CDM project activities. The investment analysis was conducted in the following steps:
Sub-step 2a. Determine appropriate analysis method

The three analysis methods suggested by Tools for the demonstration and assessment of additionality are
simple cost analysis (option I), investment comparison analysis (option II) and benchmark analysis
(option III). Since the proposed project will earn revenues from not only the CDM but also the electricity
output, the simple cost analysis method is not appropriate. Investment comparative analysis method is
only applicable to the case that alternative baseline scenario is similar to the proposed projects, so that
comparative analysis can be conducted. The alternative baseline scenario of the proposed project is the
North East China Power Grid rather than a new investment project. Therefore option II is not an
appropriate method either. The proposed project will use benchmark analysis method based on total
investment IRR and NPV.
Sub-step 2b –Apply benchmark analysis (Option III)

With reference to Interim Rules on Economic Assessment of Electric Engineering Retrofit Projects, the
financial benchmark IRR of Chinese power industry is 8% the total investment, which has been used
widely for Feasibility Studies of the power project investments, including wind power projects in China.
Sub-step 2c. Calculation and comparison of financial indicators

Based on the above-mentioned benchmark, the calculation and comparative analysis of financial
indicators for the proposed project are carried out in sub-step 2c.
(1) Basic parameters for calculation of financial indicators

Based on the Feasibility Study Report of the proposed project, basic parameters for calculation of
financial indicators are listed in Annex 5.
(2) Comparison of IRR for the proposed project and the financial benchmark
In accordance with the benchmark analysis (Option III), the proposed project will not be considered as
financially attractive if its financial indicators (such as IRR) are lower than the benchmark rate.
Table 1 shows the fluctuating situation of IRR of the proposed project, with and without CDM revenues.
Without the CDM revenue, the IRR of total investment is lower than the benchmark rate 8%. Thus the
proposed project does not look financially attractive to the investors. However, with the CDM revenue,
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IRR of total investment is significantly improved and exceeds the benchmark rate. Therefore, the
proposed project with the CDM revenue can be considered as financially viable to the investors.
Table 1. Financial indicators of the Jilin Baicheng ChaganHot wind power project
IRR (Total investment, benchmark=8%)
Without CDM revenue 6.64%
With CDM revenue 8.56%
Sub-step 2d. Sensitivity analysis (only applicable to options II and III):

The purpose of the sensitivity analysis is to examine whether the conclusion regarding the financial
viability of the proposed project is sound and tenable with those reasonable variations in the assumptions.
The investment analysis provides a valid argument in favour of additionality only if it consistently
supports (for a realistic range of assumptions) the conclusion that the project activity is unlikely to be the
most financially attractive or is unlikely to be financially attractive.
Four financial parameters including: total investment, tariff and annual O&M cost were identified as the
main variable factors for sensitive analysis of financial attractiveness. Their impacts on IRR of total
investment were analyzed in this step.
For detailed results of sensitive analysis of the three indicators, please see Table 2.
Table 2. Sensitivity of total investment IRR to different financial parameters

Range
-10% -7.50% -5% -2.50% 0 2.50% 5% 7.50% 10%
Parameters
Total investment
8.090% 7.700% 7.330% 6.980% 6.640% 6.310% 5.990% 5.690% 5.390%
O&M cost 6.760% 6.730% 6.700% 6.670% 6.640% 6.600% 6.570% 6.540% 6.510%
Tariff 5.350% 5.680% 6.000% 6.320% 6.640% 6.950% 7.260% 7.570% 7.870%
Figure 2. Sensitivity of total investment IRR to different financial parameters

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As shown in Table 2 and Figure 2, the IRR of total investment of the proposed project varies to different
extents, when the above three financial indicators fluctuated within the range from -10% to +10%. In
comparison, the impact of the tariff on IRR is most significant. When the tariff increases by 7.5%, the
IRR of total investment exceeds the benchmark. However, it is not possible for the initial tariff estimated
in FS to be raised, which can be proved by the approved tariff of similar projects nearby.: Taobei Fuyu
49.5 MW Wind Power Project is close to the proposed project, and was put into delivery in 2006 with an
approved tariff of 0.56yuan/KWh(after tax). The location and resource conditions of Taobei Fuyu Project
are similar to the proposed project. Besides , the tariff of the proposed project in the Feasibility Study was
0.59yuan/KWh(after tax), but now the intent tariff is 0.56 yuan/KWh(after tax), which represents clearly
that it is unlikely for the occurrence of upward trend of the tariff. Therefore, the tariff of the proposed
project is estimated not to be higher than 0.56yuan/KWh. That is, it is impossible for the tariff to rise by
5%.Next is the total investment. It’s displayed in the graphics that the IRR of total investment exceeds the
benchmark when the total investment decreases by 8%. As the cost of the proposed project is increased
due to the changes of geological conditions and price rising of raw materials during construction, the total
investment is not likely to be reduced. Among the four indicators, the impact of annual O&M cost on IRR
is least sensitive.
After above sensitive analysis, when financial indicators change within reasonable range, the proposed
project is not financially feasible without CDM support.
Step 3. Barrier analysis

If this step is used, determine whether the proposed project activity faces barriers that:
(a) Prevent the implementation of this type of proposed project activity; and
(b) Do not prevent the implementation of at least one of the alternatives.
Use the following sub-steps:
Sub-step 3a. Identify barriers that would prevent the implementation of type of the proposed project
activity:
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Establish that there are barriers that would prevent the implementation of the type of proposed project
activity from being carried out if the project activity was not registered as a CDM activity. Such barriers
may include, among others:
Investment barriers
The wind energy development in China is still hurdled by the high investment cost, which makes wind
energy a financially unattractive technology for power generation. The per kW investment cost of wind
energy is much higher than that of the fossil fuel power plants.
The wind resource is the most important parameter for determination of wind farm investment. Before the
development of the wind farm, an assessment of the local wind resource was conducted for over one year.
The result shows the wind resource in the proposed site is adequate but not very good.
When developing the Feasibility Study of the proposed project, the project developer started realizing
more clearly that the impact of the marginal wind resource on the project will result a marginal
investment return. The IRR of total investment is lower than the benchmark of 8%, which makes the
project unattractive in investment.
The proposed project enjoys neither preferential pricing policies nor preferential financing. The proposed
project has to be financed under a fully commercialised condition. However, it is difficult to attract
investment facing low investment return and technology risk resulted from marginal wind resource.
Tariff barriers
Regarding to the tariff issue for power production projects, a very well-known indicator, the average
inter-grid sales tariff, was 0.231 yuan/kWh in 20025, which is remarkably lower than the very necessary
tariff for wind power projects. This kind of situation inevitably raises risks when much higher tariff is
acquired by the wind power project, but neither the local grid nor the governmental bodies are willing to
absorb the additional cost. .
The first wind farm in Jilin province is the Jilin Tongyu 30.06MW wind farm that was put into delivery in
2000. Due to the favorable tariff policy at that time, Jilin Tongyu Project managed to obtain a tariff of
0.900 yuan/kWh (after tax). However, the tariff in Feasibility Study for the proposed Jilin Baicheng
ChaganHot Wind Power Project is 0.59 yuan/kWh (after tax), and the intent tariff is only 0.56yuan/kWh
(after tax). Contrastively, the wind resource of Jilin Baicheng ChaganHot Wind Power Project is much
lower than that of Jilin Tongyu Project. Therefore, the lower tariff obstructed the development of the
proposed project.
Technology barriers
In the technological aspect of a wind farm, the wind turbine takes the core technical know-how. From the
first wind farm developed, as a new technology, the key international players of wind turbine have
dominated the wind turbine market in China. Ten years ago, the Chinese wind turbine manufacturing
industry started to grow. However, the technology level of Chinese wind turbine still has a distance from
the advanced international technology. Moreover, there are still risks in the performance and liability of
domestic made wind turbines, which will impact directly on the electricity output of the wind farm, and
5
Data derived from China Electric Power Yearbook 2003 page 122.
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thus the investment return of the proposed project. The proposed project will employ the domestic made
wind turbines- S48/750, which will leave the common technology risk to the project developer. That is
the technology barrier of the proposed project.
The proposed project is the first wind farm to be developed by the project developer. Lacking of previous
experience in the investment, development and operation for wind farms, the project developer will
inevitably face significant risks, especially the problem of short of experienced staffs on construction,
operation and maintenance. Therefore, trainings on required technology for the staffs will be needed
during implementation of the proposed project.
Evidently, the proposed project development will be baffled by technology barrier.
Sub-step 3 b. Show that the identified barriers would not prevent the implementation of at least one of
the alternatives (except the proposed project activity):
The four alternative scenarios of the proposed project were analyzed in the Sub-step 1a Only alternative 4
could be the alternative scenario. In this scenario, the power output from the grid is mainly from the coal
fuel power source. The coal-fired plant in China is a well- commercialized technology and the coal
resource in China is very rich as well. Therefore the investment barrier, technology barrier and tariff
barrier mentioned above of the proposed project will not be applicable to coal-fired plants.
Step 4. Common practice analysis
Sub-step 4a. Analyze other activities similar to the proposed project activity:
Before 2003, wind power projects in China were undertaken under non-commercial conditions with the
supporting policies, such as the cost-plus power pricing, monopolistic power company “pilot-projects”,
domestic loan subsidies, bilateral soft loan financing and multilateral finance. This resulted in a series of
wind farms capacity less than 30MW, however, on which the sector still could not be commercialized.
Table 4 shows the wind farms developed and under development in Jilin province, where the proposed
project happens.
Table 4 Wind Farm Development in Jilin Province6

Project name Delivery year Total Wind turbine Project CDM activities
capacity employed developer
Jilin Yongyu 2000 30MW MADE & Jilin Wind No (high tariff
Nordex Energy and early
Stockholding developed)
Co. Ltd.
Jilin Taonan 2005 49.3MW Gamesa G58 Jilin Noble Registered
Wind Power
Stockholding
Company Ltd
Jilin Changling 2005 10.1MW Gamesa G58 Jilin Wind Under CDM
6
Source: Statistic of wind farm development of China in 2005 by Professor Shi Pengfei and
http://cdm.ccchina.gov.cn
page 14
Energy developed,
Stockholding selected DOE is
Co. Ltd. DNV
Jilin Taobei 2005 49.3MW Gamesa G58 Huaneng New Registered
Huaneng Energy
Industrial Co.
Ltd
Jilin Taobei 2005 49.5MW Goldwind Baicheng Fuyu Registered
Fuyu S48/750 Wind Power
Co, Ltd.
Tongyu wind farm was developed and was operational in 2000 with the support of high tariff. From 2000
to 2004, not a single wind power project was newly built in the province. In 2005, four new wind farms
started construction by different developers. The approved tariff of the four projects is the same, causing
similar problem on tariff. Despite of the tariff barrier, the four projects are still under development due to
the main reason that CDM plays a crucial role for the project developer to determine the project
investment and execution. Without CDM, new wind farms in Jilin province including the proposed
project are not likely to happen.
Sub-step 4b. Discuss any similar options that are occurring:

As it is demonstrated in Sub-step 4a, earlier wind energy developments in China were quite small in scale.
Since 2004, some new wind farms with similar scale as the proposed project are under development.
These new wind farms in developing have the same barriers as analyzed in Step 3 Barrier Analysis
section. However, CDM revenue was widely considered by the developer of these new wind farms as a
feasible solution to overcome the barriers. Without CDM, new wind farms in Jilin province including the
proposed project are not likely to happen.
As stated above, it is concluded that the proposed project is not common practice, as it was undertaken
without the preferential tariff or preferential financing.
Step 5. Impact of CDM registration

The project developer is one of the earliest developers who involved in CDM development, and had
successful experience in financing project with the support from CDM. Therefore, CDM was introduced
into the project as a potential measure to improve the return of the project.
A research on the possibility of CDM impact to the project was carried out in the Feasibility Study Report.
The conclusion is that the ChaganHot wind farm is a renewable source to electricity project that will
generate emission reductions. With the successful registration as CDM project, the risk of the high
investment cost could be mitigated and the operation and maintenance cost would be more guaranteed as
well. The CDM revenue will have a significantly positive impact on the proposed project.
Before making the decision to invest in the proposed project, the project developer had contacted with
CER buyers and signed CER sales agreement with the buyer. The project developer finally decided to
develop the proposed project, because it is confirmed that there will be additional revenue from CDM so
as to increase investment return and reduce risks of the proposed project.
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The project developer’s inexperience in wind power project development will cause risks on the
construction, operation and maintenance of the proposed project and hence investment return. The
proposed project will employ domestic made wind turbine that still exist technology barrier comparing
with international state-of-the-art technology. With the successful registration of the proposed project,
the CDM finance could provide additional revenue to support the maintenance of the wind turbines and
the operation of the project, and consequently generate more electricity and GHG emission reductions in
return.
Without the support from CDM, the proposed project will not be developed and generate GHG emission
reductions. Taking into account the additional barriers that the project has to face, including the tariff and
wind resource, the CDM can be regarded as a mechanism to ensure the success of the proposed project.
The proposed project is additional.
In summary, the CDM would have the following positive impacts on the project:
1. The CER revenue potential has been taken into consideration by project investors from an early
stage and was notably proposed in the Feasibility Study as a possible measure to improve the
financing of the proposed project. As the IRR of total investment is lower than the benchmark,
the project developer has signed CER Sales Agreement with the buyer before it decided to
develop the proposed project.
2. The CER revenue would provide extra finance to overcome the marginal tariff and additional cost
to be occurred during the implementation of the project and ensure the financing and investment
return of the project.
3. The CER revenue would provide extra support to reduce the technology risks resulting from the
inexperience of project developer in wind power industry.
4. The CER revenue will enable the project developer to carry out additional training activities for
staff and construction workers associated with the employment of the new technology. Moreover
the additional revenue will help ensure that the skills and knowledge gained by the project can be
transferred throughout China.
5. The CER revenue will ensure the ultimate success of the project that is currently still marginal
both in terms of the wind resource and the investment return.
B.6. Emission reductions:
B.6.1. Explanation of methodological choices:

>>
The GHG emission calculation of the proposed project was based on the instruction of ACM0002. All the
data employed in the calculation is based on the available data from North East China Power Grid. The
baseline emission factor (EFy) is calculated as a combined margin (CM), consisting of the combination of
operating margin (OM) and build margin (BM) factors according to the following three steps:
STEP 1. Calculate the Operating Margin emission factor(s) (EFOM,y)

Calculation of the Operating Margin should be based on one of the four following methods according
to the instruction of ACM0002:
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(a) Simple OM, or

(b) Simple adjusted OM, or
(c) Dispatch Data Analysis OM, or
(d) Average OM.
Although Dispatch Data Analysis should be considered the first methodology choice as required in the
ACM0002, unavailability of detailed information in China, such as the dispatch data make method (c) not
feasible for the calculation in China.
In China, specific data from the grid or each power plant is treated as business confidential and thus not
publicly available. Therefore, the Simple adjusted OM (b) cannot be possibly used for the proposed
project either.
Without any nuclear source, the North East China Power Grid only possesses 5.83% of its total electricity
generation that come from renewable energy sources in 2004, 4.72% in 2003, 5.43% in 2002, 7.02% in
2001 and 5.89% in 20007. Hence, the low operating cost/must run sources is much less than 50% of the
total grid generation, which accords with the defined condition of method (a), but not method (d).
Consequently, Simple OM method is selected to calculate the Operating Margin emission factor of the
proposed project.
The Simple OM emission factor (EFOM,simple,y) is calculated as the generation-weighted average emissions
per electricity unit (t CO2e/MWh) of all generating sources serving in the system, excluding low-
operating cost and must-run power plants:
∑ F i , j , y ⋅ COEF i, j, y
EF = i, j
OM , simple ,y
∑ j
GEN j, y
Where:
• Fi,j,y the amount of fuel i consumed by relevant power sources j in year(s) y. The index j runs over all
power sources including imports, but excludes low operating costs and must-run power plants.
• COEFi,j,y the CO2 emission coefficient of fuel i, taking into account the carbon content of fuels used
by relevant power sources j and the percentage oxidation of the fuel in year(s) y;
• GENj,y the electricity delivered to the grid by source j in year y.
The CO2 emission coefficient is equal to the net calorific value of fuel i, multiplied by the oxidation factor
of the fuel and the CO2 emission factor per unit of energy of the fuel i.
COEFi = NCVi ⋅ EFCO 2,i ⋅ OXIDi
NCV i is the net calorific value (TJ per mass or volume unit) of fuel i;
OXIDi is the oxidation factor of the fuel. IPCC default values are used.
7
China Electric Power Yearbook
page 17
EFCO2,i, is the CO2 emission factor per unit of energy of the fuel i (tCO2e/TJ). EFCO2,i of fossil fuels is from
IPCC defaults.
STEP 2. Calculate the Build Margin emission factor (EFBM,y)

The Build Margin Emission Factor is calculated as the generation weighted average emission factor
(measured in tCO2e/MWh) of a sample of m power plants:
∑ F i , m , y × COEF i,m , y
EF = i,m
∑
BM ,y
GEN m ,y
m
Where
• Fi,m,y the amount of fuel i consumed by relevant power sources m in year(s) y. The index m runs over
all power sources including imports.
• COEFi,m,y the CO2 emission coefficient of fuel i, taking into account the carbon content of fuels used
by relevant power sources m and the percentage oxidation of the fuel in year(s) y;
• GENm,y the electricity delivered to the grid by source m in year y.
ACM0002 provides two options for calculating EFBM,y :
Both options have the same requirement on sample group m: either the five power plants built most
recently, or the power plants capacity additions in the electricity system that comprising 20% of the
system generation (in MWh) and that have been built most recently.
However, it is very difficult to obtain the data of the five power plants built most recently because these
data are considered as confidential information by the company itself and the Grid in China. Therefore, a
deviation approved by the EB is applied here in the calculation that is to calculate the new capacity
additions and the proportion of each technology of power generation. Then the weighing of capacity
additions of different technologies will be worked out. Finally the emission factor will be calculated by
employing the efficiency factor representing the best technology commercially available.
Deviated Calculation of Build Margin (BM):

Sub-step 1. Calculation of weights of CO2 emissions of solid, liquid and gas fuel in total emissions for
power generation
∑F
i∈COAL , j
i, j, y × COEFi , j
λCoal =
∑F
i, j
i, j , y × COEFi , j
∑F
i∈OIL , j
λOil =
∑F
i, j
page 18
∑F
i∈GAS , j
λGas =
∑F
i, j
Where:
Fi，j，y: the consumption of fuel i for province j in year y (tce);
COEFi，j，y: the emission factor (tCO2/tce) of fuel i, taking into account the carbon content of fuel i and
the percentage of oxidation of the fuel in year y;
COAL,OIL and GAS respectively refers to the group of solid, liquid, and gas fuels.
Sub-step 2: Calculation of Emission Factor of Relevant Thermal Power

EFThermal = λCoal × EFCoal , Adv + λOil × EFOil , Adv + λGas × EFGas , Adv
Where: EFCoal,Adv, EFOil,Adv and EFGas ， Adv respectively refers to the emission factor representing best
technology commercially available for fuel of coal, oil or gas fired power plants.
Sub-step 3: Calculation of BM of the Grid

CAPThermal
EFBM , y = × EFThermal ，
CAPTotal
Where:
CAPTotal is the total of new capacity additions;
CAPThermal is the new capacity addition of thermal power.
STEP 3. Calculate the baseline emission factor EFy

The Baseline Emission Factor is calculated as a Combined Margin, using a weighted average of the
Operating Margin and Build Margin.
The default value of weighted factor are:

wOM = 0.75 wBM = 0.25
Baseline Emissions are calculated by multiplying the ex-ante Baseline Emission factor by annual power
generation.
BLE 2, y = EG y ⋅ EFy
With:
BEy the baseline emission of North East China Power Grid in year y,
EGy the amount of power generated by the project and supplied to the grid,
EFy the ex-ante emission factor in year y.
page 19
Emissions from project activity

The Jilin Baicheng ChaganHot Wind Power Project is a zero-emission electricity generating activity;
therefore no emissions from the project activity were identified.
Leakage
The project does not consider leakage according to the requirements of methodology applied.
Emission Reductions
The annual emission reductions ERy for the project activity are calculated as the baseline emissions minus
the project emissions. Being the project of a zero-emission activity the final GHG emission reductions
are calculated as follows:
ERy (tCO2e/yr) = EBy - EPy = (EGy * EFy) - 0

Where:
EGy (MWh/yr) = Electricity supplied to the grid by the project each year;
EFy (tCO2e/MWh) = GHG emission factor of the North East China Power Grid (ex-ante).
B.6.2. Data and parameters that are available at validation:
Data / Parameter: EFOM

Data unit: tCO2/ MWh
Description: Operating Margin Emission Factor
Source of data used: Baseline Emission Factors for Power Grids in China, sourced from
http://cdm.ccchina.gov.cn/
Value applied: 1.1983
Justification of the Calculated according to the updated Baseline Emission Factors for Power Grids
choice of data or in China based on ACM0002 and EB guidance
description of
measurement methods
and procedures actually
applied :
Any comment:
Data / Parameter: EFBM

Data unit: tCO2/ MWh
Description: Build Margin Emission Factor
Value applied: 0.8108
Justification of the Calculated according to the updated Baseline Emission Factors for Power Grids
choice of data or in China based on ACM0002 and EB guidance
description of
measurement methods
page 20
applied :
Any comment:
Data / Parameter: NCVi

Data unit: MJ / tonne or km3
Description: Net Calorific Value of fossil fuel type I consumed by the power plants in the
grid
Value applied: N/A
Justification of the According to the updated Baseline Emission Factors for Power Grids in China.
choice of data or
description of
measurement methods
applied :
Any comment:
Data / Parameter: EFCO2,i

Data unit: tc/TJ
Description: CO2 emission factor of fossil fuel type I consumed by the power plants in the
grid
Value applied: N/A
choice of data or
description of
measurement methods
applied :
Any comment:
Data / Parameter: Carbon Oxidation Factor

Data unit: %
Description: Carbon Oxidation Factor of fossil fuel type i consumed by the power plants in
the grid
Value applied: N/A
choice of data or
description of
measurement methods
applied :
Any comment:
page 21
B.6.3 Ex-ante calculation of emission reductions:

>>
As described in B.6, the emission reductions of the proposed project are calculated as follows:
Baseline emissions
Annual generation (net of auxiliary power i.e. the on-site electricity usage for the operation of the
windfarm) is estimated as 50,635 MWh.
The ex-ante baseline emission factor: 1.101425 tCO2/ MWh
Annual baseline emissions: 55,771 tCO2 (details in Annex 3)
Project emissions
According to the baseline methodology ACM0002, the GHG emission of the proposed project within the
project boundary is zero, i.e.
PEy=0
Leakage
According to the baseline methodology ACM0002, the leakage of the proposed project is not considered,
LPy = 0
Project Emission Reductions
Net emission reductions of the proposed project = Total baseline emissions – Total project emissions
The total annual baseline emissions are 55,771 tCO2

The total annual project emissions are 0 tCO2.
The annual emission reductions are estimated to be: 55,771 tCO2. The proposed project activity is
expected to achieve 390,397 tCO2e of net emission reductions during the first 7-year crediting period.
B.6.4 Summary of the ex-ante estimation of emission reductions:

>>
Year Estimation of Estimation of Estimation of Estimation of
project activity baseline emissions leakage overall emission
emissions (tonnes of CO2e) (tonnes of CO2e) reductions
(tonnes of CO2e) (tonnes of CO2e)
2007 0 18,590 0 18,590
2008 0 55,771 0 55,771
2009 0 55,771 0 55,771
2010 0 55,771 0 55,771
2011 0 55,771 0 55,771
2012 0 55,771 0 55,771
page 22
2013 0 55,771 0 55,771

2014 0 37,181 0 37,181
Total
(tonnes of 0 390,397 0 390,397
CO2e)
B.7 Application of the monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:

(Copy this table for each data and parameter)
Data / Parameter: EGy

Data unit: MWh
Description: Net electricity supplied to the Grid by the proposed project during year y
Source of data to be Electricity meter reading at the connection point between the proposed project
used: and the Grid
Value of data applied 50,635
for the purpose of
calculating expected
emission reductions in
section B.5
Description of The readings of the electricity meter will be hourly measured and monthly
measurement methods recorded. Data will be archived for 2 years following the end of the crediting
and procedures to be period by means of electronic and paper backup.
applied:
QA/QC procedures to The electricity generation from the plant will be monitored and recorded at the
be applied: on-site control centre using a computer system. The project operator is
responsible for recording this set of data. Receipts from electricity sales will also
be obtained for double check.
Any comment:
B.7.2 Description of the monitoring plan:

>>
The monitoring plan should ensure that updated requirements and standards for the monitoring
procedures are incorporated. Before the proposed project starts operation, detailed monitoring
arrangements will be determined, according to the monitoring plan, and with the support of the proposed
project owner, the CDM developer will complete a CDM manual which serves as a guideline for the
project owner to manage and monitor the proposed project during the project implementation. As
identified in the monitoring plan, the following key tasks will need to be undertaken:
1. Continuous measurement (electronic data from wind farm)

− Electricity supplied to the Grid by the project
2. Monthly reporting (electronic and hard copies)

page 23
− Monthly summary of continuous measurement data for electricity supplied to the Grid by the
project
− All documentation regarding electricity sales to the Grid will be collated in hard copy for
inspection
3. Annual reporting.
− Electricity supplied to the Grid by the project (EGy)
4. Calibration of electricity meter
− The accuracy of the electricity meter is 0.5s that meets the national requirement. The metering
equipment will be properly calibrated and checked annually for accuracy. The national
calibration standard （dl/t448-2000） will be applied in the proposed project. Calibration is
carried out by the Grid with the records being provided to the proposed project owner
The responsibilities for carrying out these tasks are illustrated in the table below, and the specific
details in monitoring plan are described in Annex 4.
General Manager
CDM Project Manager
Plant Operational Financial Chief Technical Chief

Manager in Charge of
Monitoring
B.8 Date of completion of the application of the baseline study and monitoring methodology and
the name of the responsible person(s)/entity(ies)
>>
Date of completion of Baseline Study: 01/11/2006
Name of person/entity determining the baseline:
Ms. Lin, Wei

Easy Carbon Consultancy Co. Ltd.
11-2805, Jianwai SOHO, 39 Dongsanhuan Zhonglu, Chaoyang District, Beijing 100022, P. R.China
Phone/fax: +86 1058697045-604/59000064
Email: tonilin@easy-carbon.com
Mr. Guan, Yisong

page 24
Easy Carbon Consultancy Co. Ltd.

11-2805, Jianwai SOHO, 39 Dongsanhuan Zhonglu, Chaoyang District, Beijing 100022, P. R.China
Phone/fax: +86 1058697045-603/59000064
Email: gyisong@ easy-carbon.com
Above persons are not Project Participants.
Mr. Wang Yiqun

China Water Investment Group Corporation
No. 12, Lane 2, Baiguang Road, Xuanwu District, Beijing 100053, P. R. China
Phone/fax: ＋86 1063581188-2862／63548904
Email：wyq@cwic.com.cn
Mr. Jia Xuelang

Phone/fax: ＋86 1063581188-2865／63548904
Email：jxl@cwic.com.cn
Ms. Wang Hongyuan

Phone/fax: ＋86 1063581188-2866／63548904
Email：why@cwic.com.cn
Mr. Zhang, Jun

Phone/fax: ＋86 1063581188-2620／63548904
Email：zhj@cwic.com.cn
page 25
SECTION C. Duration of the project activity / crediting period
C.1 Duration of the project activity:
C.1.1. Starting date of the project activity:

>>
01/09/2006(starting date of construction)
C.1.2. Expected operational lifetime of the project activity:

>>
21 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:

>>
01/08/2007
C.2.1.2. Length of the first crediting period:

>>
7 years
C.2.2. Fixed crediting period:
C.2.2.1. Starting date:

>>
Not applicable
C.2.2.2. Length:
>>
Not applicable
page 26
SECTION D. Environmental impacts

>>
D.1. Documentation on the analysis of the environmental impacts, including transboundary

impacts:
>>
The environmental impact assessment for this project was carried out by Jilin Xinghuan Environmental
Technical Service Co., Ltd. in 2005. A summary of the report is illustrated as below:
Impact on air
The air pollution from dust and waste gas existed mainly in the period of construction. Protective
measures to be adopted include stopping work on windy days and reducing the speed of vehicles. As the
period of construction is short, the impacts on air will be insignificant after conducting these mitigation
measures. During operation, there will be no bad gas emissions generated by the Project.
Impact from noise

The operation of the wind turbines will generate continuous noise. It is said in EIA that 600m away from
the turbine is a safe distance for residents. The nearest resident area however, is 2.3km away from the
project location. Therefore, the noise of the turbines will not affect the local residents.
Electromagnetic impact
The operation of the wind farm will generate electromagnetic energy, however, it will be very little.
According to the survey to the local residents near the Project, no impact to local residents and electronic
equipments was detected. Furthermore, the site of the Project is far from the resident area. Therefore,
there is no significant electromagnetic impact to be generated.
Impacts from solid waste

Most of the waste earth produced in the construction shall be refilled back to the foundation of the
turbines. The household waste will be collected and transported to Baicheng municipal landfill plant.
Impacts on plant
The area permanently taken by the project will be 68,847m2, most of which are grassland. There is little
biomass and no rare plant in the location. As the lands will be replanted after completion of the project
construction, the impacts on grassland are insignificant.
Biological impact
Given the environment of the project location, there are very few animals at the site, and no protected
animal has been detected. Therefore, there is no significant impact by the Project to the local biology.
The Environment Impact Assessment was approved by Jilin Provincial Environmental Protection Bureau
in October 2005.
page 27
D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
The environmental impacts of the Jilin Baicheng ChaganHot Wind Power Project are not considered
significant.
page 28
SECTION E. Stakeholders’ comments

>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
Comments on the construction of the wind farm is required by local government and the construction
company through means of informal discussions, hearing of witnesses and visits to guarantee the
successful implementation of the Project with the interests of stakeholders being taken into account.
The project developer and local environmental protection department have distributed questionnaires to
the villagers in the surrounding villages (Sumawan village and Dayangbu village) of the project site in
Chayouzhongqi on June, 2006, collecting for constructive suggestions for the wind farm construction. 50
replies were received. The project developer organized a stakeholder comments consultation meeting on
June 23, 2006. Officials from Administrative Department of ChaganHot Tourism and Economy
Development Area, representatives from Jilin Xinghuan Environmental Technology Service Ltd. and
villagers from sumawan village and dayanbu village participated the meeting. In the meeting, the project
developer introduced the propose project, project plan, impact by the proposed project and CDM
development plan of the proposed project. Participated stakeholders raised their questions about the
proposed project.
E.2. Summary of the comments received:

>>
The summary of survey is listed as the following:
Items
High Polytechnic
Education level of the Middle school College Master Other
school school
interviewee
35 15 0 0 0 0
Government Teache
Occupation of the Farmer Worker Student Other
official r
interviewee
45 0 0 5 0 0
Sound environment Satisfied Unsatisfied Not sure
(noise) 50 0 0
Disturbance of the Yes No Not sure
TV signal receiving 0 50 0
Negative impact on Yes No Not sure
their life from the 0
50 0
wind farm
Whether the project Yes No Not sure
will improve the 0
43 7
living condition
Disturbance of Impact Waste water
Concerns the TV signal from noise
receiving
page 29
9 38 3
Whether support the Yes No Don’t care
project 50 0 0
Other concerns No information
It can be learned from the survey summary that the villagers investigated fully support the construction of
the project. In the stakeholder comments consultation meeting, the participated governmental officals and
local villagers showed quite positive comments on the proposed project. The local stakeholders believe
that the proposed project could contribute to the local economic development, environment protection and
create more job opportunities.
E.3. Report on how due account was taken of any comments received:
>>
No negative comments have been received on the project. Moreover, the local community possesses
strong positive comments on the effects that the proposed project will make on the local economy and
infrastructure. There has therefore been no reason to modify the plans due to comments received.
page 30
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: CWIC Baicheng Wind Power Development Co., Ltd

Street/P.O.Box: ChaganHot Tourism and Economy Development Region
Building:
City: Baicheng City
State/Region: Jilin Province
Postfix/ZIP: 137017
Country: P.R.China
Telephone: ＋86－436-6180043
FAX: +86-10-63581188-2885
E-Mail: wdpower@163.com
URL:
Represented by: Yang, Wenhong
Title: General Manager
Salutation:
Last Name: Yang
Middle Name:
First Name: Wenhong
Department:
Mobile: 13901309046
Direct FAX: +86-10-63581188-2885
Direct tel: +86-10-63581188-2600
Personal E-Mail: ywh@cwic.com.cn
Organization: Endesa Generación S.A.

Street/P.O.Box: C/Ribera del Loira, 60
Building:
City: Madrid
State/Region:
Postfix/ZIP: 28042
Country: Spain
Telephone: (0034) 91 213 10 00
FAX:
E-Mail:
URL: www.endesa.es
Represented by: Jesus Abadia Lbanez
Title: Director of Environment and Sustainable Development of Endesa
Salutation: Mr.
Last Name: Abadia
Middle Name:
First Name: Jesus
page 31
Department:
Mobile: (0034) 656600488
Direct FAX: (0034) 9121 31052
Direct tel: (0034) 9121 31052
Personal E-Mail: jabadia@endesa.es
page 32
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
There is no public funding for the Jilin Baicheng ChaganHot Wind Power Project.
CDM – Executive Board page 33
Annex 3
BASELINE INFORMATION
All the tables related to the calculation of baseline emission reduction are presented below:
Calculation of Operating Margin (OM):
Table A1. Simple OM Emission Factor of North East China Power Grid in 2002
Oxida Average
Emissio tion low Caloric
Fuel types Unit Liaoning Jilin Heilongjiang Subtotal n Factor rate value CO2 emission（tCO2e）
（% （MJ/t,km3 H=G*D*E*F*44/12/10000（unit
（tc/TJ））） of mass）
A B C D=A+B+C E F G H=G*D*E*F*44/12/10000 (unit of
volume)
Raw coal 10000 ton 3258.52 1928.97 2422.27 7609.76 25.8 98 20908 147502935.5
Cleaned coal 10000 ton 1.45 9.31 10.76 25.8 98 26344 262791.4318
Other washed
coal 10000ton 347.55 13.65 140.4 501.6 25.8 98 8363 3888990.092
Coke 10000ton 0 29.5 98 28435 0
Coke oven 108m3
gas 1.89 1.89 13 99.5 16726 149931.1113
Other coal 108m3
gas 6.62 6.62 13 99.5 5227 164115.0287
Crude oil 10000 ton 8.63 8.63 20 99 41816 261993.1301
Diesel 10000 ton 0.6 1 0.11 1.71 20.2 99 42652 53480.25944
Fuel oil 10000 ton 25.47 1.75 8.31 35.53 21.1 99 41816 1137959.419
LPG 10000 ton 0.04 0.04 17.2 99.5 50179 1259.519662

Refinery gas 10000 ton 6.99 0.38 7.37 18.2 99.5 46055 225377.301
Natural gas 108m3 0.02 2.56 2.58 15.3 99.5 38931 560662.1103
Other oil product 10000 ton 0 20 99 38369 0
Other coking 10000 ton
product 0 25.8 98 28435 0
Other fuel 10000 tce 12.14 12.14 0 0 0 0
Subtotal 154209494.9
China Energy Statistical Yearbook 2000-2002
Table A2. Thermal Power Generation of North East China Power Grid in 2002
Ratio of Self
Power
Power Power Consumption of
Province Generation Generation Plant Power Supply
8
（10 kWh) （MWh) （%）（MWh)
Liaoning 704.5 70450000 7.42 65222610
Jilin 260.34 26034000 7.81 24000745
Heilongjiang 450.61 45061000 8.88 41059583
Total 130282938
China Power Yearbook 2003
Table A3. Emission Factor of North East China Power Grid in 2002
Parameter Unit Value Source
Total Power Supply of
North East China Power
A Grid MWh 130282938 A=Total Power Generation of North East China Power Grid
Total Emissions of
B Grid tCO2e 154209495
Emission Factor of
C Grid tCO2e/MWh 1.1836507 C=B/A
Oxida Average
（% （MJ/t,km3 H=G*D*E*F*44/12/10000（unit
volume)
Raw coal 10000 ton 3556.51 2006.66 2763.62 8326.79 25.8 98 20908 161401406.7
Cleaned coal 10000 ton 70.83 3 73.83 25.8 98 26344 1803149.759
Other washed
coal 10000ton 617.04 15.9 53.41 686.35 25.8 98 8363 5321388.257
Coke 10000ton 0 29.5 98 28435 0
Coke oven 108m3
gas 1.66 1.66 13 99.5 16726 131685.5264
Other coal 108m3
gas 5.31 5.31 13 99.5 5227 131639.094
Crude oil 10000 ton 3.39 3.39 20 99 41816 102915.0302
Diesel 10000 ton 0.32 0.34 0.66 20.2 99 42652 20641.50364
Fuel oil 10000 ton 14.87 0.7 4.32 19.89 21.1 99 41816 637039.4834
LPG 10000 ton 1.55 1.55 17.2 99.5 50179 48806.38691
Refinery gas 10000 ton 4.03 0.46 4.49 18.2 99.5 46055 137305.8455
Natural gas 108m3 0.04 4.47 4.51 15.3 99.5 38931 980072.1385
product 0 25.8 98 28435 0
Other fuel 10000 tce 29.38 29.38 0 0 0 0
China Energy Statistical Yearbook 2004
Ratio of Self
Power
8
（10 kWh) （MWh) （%）（MWh)
Liaoning 797.51 79751000 7.17 74032853
Jilin 297.39 29739000 7.32 27562105
Heilongjiang 484.93 48493000 8.48 44380794
Total 145975752
A Total Power Supply of MWh 145975752 A=Total Power Generation of North East China Power Grid

Grid
Total Emissions of
Emission Factor of
Oxida Average
（% （MJ/t,km3 H=G*D*E*F*44/12/10000（unit
volume)
Raw coal 10000 ton 4144.2 2310.9 3084.8 9539.9 25.8 98 20908 184915589.3
Cleaned coal 10000 ton 84.75 1.09 4.88 90.72 25.8 98 26344 2215654.154
Other washed
coal 10000ton 577.67 14.26 61 652.93 25.8 98 8363 5062277.314
Coke 10000ton 0 29.5 98 28435 0
Coke oven 108m3
gas 4.83 2.91 7.74 13 99.5 16726 614003.5988
8 3
Other coal 10 m
gas 57.33 4.19 61.52 13 99.5 5227 1525129.391
Crude oil 10000 ton 0 20 99 41816 0
Diesel 10000 ton 2.04 1.16 0.24 3.44 20.2 99 42652 107586.019
Fuel oil 10000 ton 12.81 1.78 2.86 17.45 21.1 99 41816 558890.849
LPG 10000 ton 2.19 2.19 17.2 99.5 50179 68958.7015
Refinery gas 10000 ton 9.79 1.14 10.93 18.2 99.5 46055 334243.4057
Natural gas 108m3 0.03 2.53 2.56 15.3 99.5 38931 556315.8924
product 0 25.8 98 28435 0
Other fuel 10000 tce 26.97 5.07 32.04 0 0 0 0
China Energy Statistical Yearbook 2005
Ratio of Self
Power
8
（10 kWh) （MWh) （%）（MWh)
Liaoning 845.43 84543000 7.21 78447450
Jilin 332.42 33242000 7.68 30689014
Heilongjiang 534.82 53482000 7.84 49289011
Total 158425475
Total Power Supply of
A Grid MWh 158425475 A=Total Power Generation of North East China Power Grid
Total Emissions of
Emission Factor of
Table A10. Operating Margin Emission Factor of North East China Power Grid
Year 2002 Year 2003 Year 2004 Total
Emissions
A 154209495 170716050 195958649 520884193
(tCO2/year)
Power Supply
B 130282938 145975752 158425475 434684165
(MWh)
CO2 Emission
C Factor C = A/B 1.1983
(tCO2/MWh)
The only grid that North East China Power Grid connected with is North China Power Grid. North East China Power Grid has no electricity imports from
North China Power Grid.
Calculation of Build Margin (BM):
Step 1. Calculation of weights of CO2 emissions of solid, liquid and gas fuel in total emissions for power generation
∑F
i∈COAL , j
λCoal = (2)
∑F
i, j
∑F
i∈OIL , j
λOil = (3)
∑F
i, j
∑F
i∈GAS , j
λGas = (4)
∑F
i, j
Where:
Fi，j，y: the consumption of fuel i for province j in year y (tce);
COEFi，j，y: the emission factor (tCO2/tce) of fuel i, taking into account the carbon content of fuel i and the percentage of oxidation of the fuel in year y;
COAL,OIL and GAS respectively refers to the group of solid, liquid, and gas fuels.
Based on China Energy Statistical Yearbook 2005, the calculation of the weights of solid, liquid, and gas fuels in North East China Power Grid are:
λCoal =98.79%， λOil =0.34%， λGas =0.87%
Step 2: Calculation of Emission Factor of Relevant Thermal Power
EFThermal = λCoal × EFCoal , Adv + λOil × EFOil , Adv + λGas × EFGas , Adv (5)
Where: EFCoal,Adv, EFOil,Adv and EFGas，Adv respectively refers to the emission factor representing best technology commercially available for fuel of coal,
oil or gas fired power plants. For specific workings, see the following:
Table A11. Emission factor representing best technology commercially available for fuel of coal, oil or gas fired power plants
Emission Coefficient of
Efficiency of Power Oxidation
Variable Fuel Emissions (tCO2/MWh)
Supply Rate
(tc/TJ)
A B C D=3.6/A/1000*B*C*44/12
Coal-fired
EFCoal,Adv 36.53% 25.8 0.98 0.9136
Power Plant
Gas-fired
EFGas,Adv 45.87% 15.3 0.995 0.4381
Power Plant
Oil-fired
EFOil,Adv 45.87% 21.1 0.99 0.6011
Power Plant
EFThermal = λCoal × EFCoal , Adv + λOil × EFOil , Adv + λGas × EFGas , Adv =0.9084 (tCO2/MWh)
Step 3: Calculation of BM of the Grid
CAPThermal
EFBM , y = × EFThermal ， (6)
CAPTotal
Where: CAPTotal is the total of new capacity additions, and CAPThermal is the new capacity addition of thermal power.
Table A12.Installed Capacity of North East China Power Grid in 2004

Installed Unit Liaoning Jilin Heilongjiang
Total
Capacity
Thermal
MW 14960.3 5964.7 11259.1 32184.1
Power
Hydro Power MW 1404.1 3601.2 844.6 3250.7
Nuclear
MW 0 0 0 0
Power
Wind Power
MW 142 36 39.3 137.7
and Others
Total MW 16506.4 9595.9 12143 96983.2

Source: China Power Yearbook 2005

Installed Unit Liaoning Jilin Heilongjiang
Total
Capacity
Thermal
MW 12560.3 4428.6 9116 26104.9
Power
Hydro Power MW 1223.1 3474.7 784.5 5482.3
Nuclear
MW 0 0 0 0
Power
Wind Power
MW 17 0 0 17
and Others
Total MW 13800.4 7903.3 9900.5 31604.2


Installed Unit Liaoning Jilin Heilongjiang Total
Capacity
Thermal
MW 11191 4253.1 8794.1 24238.2
Power
Hydro Power MW 1220.9 3246.1 637.9 5104.93
Nuclear
MW 0 0 0 0
Power
Wind Power
MW 0 0 0 0
and Others
Total MW 12411.9 7499.2 9432 29343.1

Table A15.Calculation of BM of North East China Power Grid

Installation in Installation in Installation in New Additions from Ratio in New
year 1997 year 1998 year 2004 1997 to 2004 Additions
A B C D=C-A
Thermal Power（MW） 24238.2 26104.9 32184.1 7945.9 89.26%
Hydro Power（MW） 5104.9 5482.3 5849.9 745 8.37%
Nuclear Power（MW） 0 0 0 0 0.00%
Wind Power（MW） 0 17 217.3 217.3 2.44%
Total（MW） 29343.1 31604.2 38245.3 8902.2 100.00%

Percentage compared
76.72% 82.64% 100%
with installation of 2004
Build Margin Emission Factor of North East China Power Grid : EFBM,y=0.9084×89.26%=0.8108 tCO2/MWh。
Table A16. Baseline Emission Factor of North East China Power Grid
Parameter Unit Amount
A Operating Margin Emission Factor tCO2/MWh 1.1983
B Build Margin Emission Factor tCO2/MWh 0.8108
Combined Emission Factor
C tCO2/MWh 1.1014
(C=0.75*A+0.25*B)
Table A17. Electricity Generation Baseline Emissions

Source or
Parameter Unit Amount
Equation
A Project installed capacity MW 30 Feasibility Study
B Annual electricity supplied MWh 50,635 Feasibility Study
C Baseline Emissions Factor tCO2/MWh 1.1014 Table
Electricity generation baseline 55,771
D tCO2/year D= B * C
emissions
page 45
Annex 4
MONITORING PLAN
1.Introduction of Monitoring Plan

This Monitoring plan will set out a number of monitoring tasks in order to ensure that all aspects of
projected greenhouse gas (GHG) emission reductions for the proposed project are controlled and reported.
This requires an on going monitoring of the project to ensure performance according to its design and that
claimed Certified Emission Reductions (CERs) are actually achieved.
The monitoring plan of the proposed project is a guidance document that provides the set of procedures
for preparing key project indicators, tracking and monitoring the impacts of the proposed project. The
monitoring plan will be used throughout the defined crediting period for the project to determine and
provide documentation of GHG emission impacts from the proposed project. This monitoring plan fulfils
the requirement set out by the Kyoto Protocol that emission reductions projects under the CDM have real,
measurable and long-term benefits and that the reductions in emissions are additional to any that would
occur in the absence of the certified project activity
The monitoring plan provides the requirements and instructions for:

3 Establishing and maintaining the appropriate monitoring systems for electricity generated by the
project;
3 Quality control of the measurements;
3 Procedures for the periodic calculation of GHG emission reductions;
3 Assigning monitoring responsibilities to personnel;
3 Data storage and filing system;
3 Preparing for the requirements of an independent, third party auditor or verifier.
2.User of the Monitoring Plan

The CWIC Baicheng Wind Power Development Co. Ltd., the proposed project owner, will use this
document as guideline in monitoring of the project emission reduction performance and will adhere to the
guidelines set out in this monitoring plan. This plan should be modified according to actual conditions
and requirements of DOE in order to ensure that the monitoring is credible, transparent, and conservative.
Operational manager of wind farm will collect the information and data required by the Monitoring Plan.
The collected information will be documented and sent to the CDM manager and responsible staffs of the
CWIC Baicheng Wind Power Development Co. Ltd. monthly. The CDM manager will in charge of the
implementation of the Monitoring Plan and report to the General Manager of the company. The General
Manager of the company will make the confirmations on monitoring, calculation data and reports.
3. Key definitions
The monitoring plan will use the following definitions of monitoring and verification.
Monitoring: the systematic surveillance of the project’s performance by measuring and recording
performance-related indicators relevant in the context of GHG emission reductions.
page 46
Verification: the periodic ex-post auditing of monitoring results, the assessment of achieved emission
reductions and of the project’s continued conformance with all relevant project criteria by a selected
Designated Operational Entity (DOE).
4. Calibration of Meters & Metering

An agreement should be signed between the proposed project owner and the Grid that defines the
metering arrangements and the required quality control procedures to ensure accuracy. The accuracy of
the electricity meter is 0.5s that meets the national requirement. Both electricity supplied to the grid and
electricity purchased from the grid by the proposed project will be metered at the output of 66kV
substation connected to the grid. The metering equipment will be properly calibrated and checked
annually for accuracy. The project owner will prepare backup procedures to deal with any errors occurred
to the meters. In case of any errors happens, the grid-connected electricity generated by the proposed
project shall be determined by the project owner and the Grid jointly according to the error handling
procedures.
Calibration is carried out by the Grid with the records being provided to the proposed project owner
annually, and these records will be maintained by the proposed project owner and the third party
designated.
5. Monitoring
Grid-connected electricity generated by the proposed project will be monitored through metering
equipment at the substation (interconnection facility connecting the facility to the grid). When the project
is not in operation, electricity from the grid will be supplied to endure the minimum requirement of
running a plant. The electricity supplied from the grid will be monitored by the same meter that metering
the electricity supplied to the grid. The net electricity supplied to the grid will be counted for emission
reduction calculation. The data can also be monitored and recorded at the on-site control center using a
computer system. The meter reading will be readily accessible for DOE. Calibration tests records will be
maintained for verification.
6. Quality Assurance and Quality Control

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

This provides information on record keeping of the data collected during monitoring. Record keeping is
the most important exercise in relation to the monitoring process. Without accurate and efficient record
keeping, project emission reductions cannot be verified. Below follows an outline of how project related
records would be managed.
Overall responsibility for monitoring of GHG emissions reduction will rest with the CDM responsible
person of the proposed project. The CDM manual sets out the procedures for tracking information from
the primary source to the end-data calculations in paper document format. It is the responsibility of the
proposed project owner to provide additional necessary data and information for validation and
verification requirements of respective DOE. Physical documentation such as paper-based maps,
diagrams and environmental assessment will be collated in a central place, together with this monitoring
plan. All paper-based information will be stored by the proposed project owner and kept at least one copy.
page 47
The responsible person for the information management system for emissions reduction monitoring must
be trained and qualified. The Table below outlines the key documents relevant to monitoring and
verification of the emission reductions from the project.
Table List of the key documents relevant to monitoring and verification

No. Document Title Main Content Source
1 Project Design Document Calculation procedure of Proposed project
(PDD) emission reduction and owner or UNFCCC
monitoring items website
2 Monitoring Quality Control Equipments and national and Proposed project
and Quality Assurance Report industry standards owner
3 The report on qualifications For example, the title of a Proposed project
of the persons responsible for technical post, working owner
the monitoring and experience etc.
calculation
4 The report on monitoring and Record based on monthly Proposed project
checking of electricity meter reading and electricity owner
supplied to the grid sale receipts
5 Record on maintenance and Reasons for maintenance and Proposed project
calibration of metering calibration and the precision owner
equipment after maintenance and
calibration
6 The report on baseline Data sources and calculation Proposed project
emission factor calculation procedure based on the owner
information in the PDD
7 Record on CO2 emission Monthly calculation based on Proposed project
reduction the formula in the PDD owner
8 Letter of confirmation on No. Make confirm of monitoring Proposed project
2 to No.7 and calculation data and owner
procedure from No. 2 to No.7
9 Project Management Record Comprehensively and truly Proposed project
(including data collection and reflect the management and owner
management system) the operation of the proposed
project
8. Verification and Monitoring Results

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

3 Sign a verification service agreement with specific DOE and agree to a time framework set by the
EB for carrying out verification activities while taking into account the buyer’s schedule. The
proposed project owner will make the arrangements for the verification and will prepare for the audit
and verification process to the best of its abilities.
page 48
3 The proposed project owner will facilitate the verification through providing the DOE with all
required necessary information, before, during and, in the event of queries, after the verification.
3 The proposed project owner will fully cooperate with the DOE and instruct its staff and management
to be available for interviews and respond honestly to all questions from the DOE.
3 DOE must be an Accredited Entity with a proven track record in environmental auditing and
verification, experience with CDM projects and work in developing countries. The DOE should be
accredited by the CDM Executive Board.
3 If the proposed project owner deems that requirements of DOE goes beyond the scope of verification,
they should contact the CDM consultant to determine whether the requirements of DOE are
reasonable. If considered unreasonable, a rejection letter in a written format should be provided to
the DOE with justifiable reasons. If the project owner and the DOE cannot reach an agreement, the
matter will be submitted to EB or UNFCCC for arbitration.
The proposed project owner should designate CDM responsible person for the overall responsibility for
the monitoring and verification process and act as the focal point for DOE.
page 49

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

CDM – Executive Board

CLEAN DEVELOPMENT MECHANISM

A. General description of project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

CDM – Executive Board

SECTION A. General description of project activity

A.1 Title of the project activity:

A.2. Description of the project activity:

A.3. Project participants:

CDM – Executive Board

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

A.4.1.1. Host Party(ies):

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

A.4.1.3. City/Town/Community etc:

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

CDM – Executive Board

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

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

CDM – Executive Board

Years Annual estimation of emission reductions

A.4.5. Public funding of the project activity:

CDM – Executive Board

SECTION B. Application of a baseline and monitoring methodology

Source Gas Included? Justification / Explanation

CDM – Executive Board

CDM – Executive Board

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

Sub-step 1b. Enforcement of applicable laws and regulations:

CDM – Executive Board

Step 2. Investment analysis

Sub-step 2a. Determine appropriate analysis method

Sub-step 2b –Apply benchmark analysis (Option III)

Sub-step 2c. Calculation and comparison of financial indicators

(1) Basic parameters for calculation of financial indicators

CDM – Executive Board

Sub-step 2d. Sensitivity analysis (only applicable to options II and III):

Table 2. Sensitivity of total investment IRR to different financial parameters

-10% -7.50% -5% -2.50% 0 2.50% 5% 7.50% 10%

Figure 2. Sensitivity of total investment IRR to different financial parameters

CDM – Executive Board

Step 3. Barrier analysis

Use the following sub-steps:

CDM – Executive Board

CDM – Executive Board

Evidently, the proposed project development will be baffled by technology barrier.

Step 4. Common practice analysis

Table 4 Wind Farm Development in Jilin Province6

CDM – Executive Board

Sub-step 4b. Discuss any similar options that are occurring:

Step 5. Impact of CDM registration

CDM – Executive Board

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

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

CDM – Executive Board