Jamnagar Wind Project Report

Jamnagar Wind Power Projects, India
Project Design Documents
The project is a bundle of three project activities. This document consists of the
Project Design Documents (PDDs) for each of the three project activities.
1. Bundled wind energy power projects (2004 policy) in Rajasthan

2. Bundled wind energy generation projects in Gujarat, India
3. Enercon Wind Farms in Karnataka Bundled Project – 30.40 MW
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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
Appendix 1: Location Map
Appendix 2: Minutes of local stakeholder meeting

page 2
SECTION A. General description of project activity
A.1 Title of the project activity:

>>
Title: Bundled wind energy power projects (2004 policy) in Rajasthan
Version: 1.0
Date of completion of PDD: 15 November 2006
A.2. Description of the project activity:

>>
Objective of the Project
The objective is development, design, engineering, procurement, finance, construction, operation and
maintenance of bundled wind power projects totalling 24.8 MW wind power projects (“Project”) in the
Indian state of Rajasthan to provide reliable, renewable power to the Rajasthan state electricity grid which
is part of the Northern regional electricity grid. The Project will lead to reduced greenhouse gas
emissions because it displaces electricity from fossil fuel based electricity generation plants.
Nature of Project
The Project harnesses renewable resources in the region, and thereby displacing non-renewable natural
resources thereby ultimately leading to sustainable economic and environmental development. Enercon
(India) Ltd (“Enercon” or “EIL”) is the equipment supplier and the operations and maintenance contractor
for the Project. The generated electricity will be supplied to Rajasthan Rajya Vidyut Prasaran Nigam Ltd
(“RRPVN”)/ Jodhpur Electricity Distribution Company Ltd (“Jodhpur Discom”) under a long-term power
purchase agreement (PPA). The details of the sub-projects comprising the Project are as under:
• CEPCO Industries: 12 MW
• Ushdev International: 2.4 MW
• Brindavan Agro Industies: 1.6 MW
• Amrit Bottlers Ltd.: 0.8 MW
• Deedee Enterprises: 0.8 MW
• JN Investment: 0.8 MW
• Metalfab Hightech Private Limited: 0.8 MW
• SE Investment: 0.8 MW
• Brindavan Bottlers Ltd.: 0.8 MW
• Delta Enterprises: 2.4 MW
• Sankalp International: 0.8 MW
• Malani Impex Inc.: 0.8 MW
Contribution to sustainable development

The Project meets several sustainable development objectives including:
• contribution towards the policy objectives of Government of India and Government of Rajasthan of
incremental capacity from renewable sources;
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• contribution towards meeting the electricity deficit in Rajasthan;

• CO2 abatement and reduction of greenhouse gas emissions through development of renewable
technology;
• reducing the average emission intensity (SOx, NOx, PM, etc.), average effluent intensity and average
solid waste intensity of power generation in the system;
• conserving natural resources including land, forests, minerals, water and ecosystems; and
• developing the local economy and create jobs and employment, particularly in rural areas, which is a
priority concern for the Government of India;
A.3. Project participants:

>>
Name of Party involved ((host) Private and/or public Kindly indicate if the Party
indicates a host Party) entity(ies) project participants involved wishes to be
(*) (as applicable) considered as project
participant (Yes/No)
Government of India (Host) Enercon (India) Ltd No
Government of Japan Japan Carbon Finance No
The contact details of the entities are provided in Annex – 1.
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:

>>
A.4.1.1. Host Party(ies):

>>
The host party to the project activity is the Government of India.
A.4.1.2. Region/State/Province etc.:

>>
The Project is located in the State of Rajasthan that forms part of the Northern regional electricity grid of
India.
A.4.1.3. City/Town/Community etc:

>>
The Project is located at Kita and Bhu village, in Jaisalmer District of Rajasthan state in India.
A.4.1.4. Detail of physical location, including information allowing the

unique identification of this project activity (maximum one page):
>>
The project area extends between latitude 26o 41’ & 26o 46.5’ North and longitude 70 o 57.5’ & 71 o 4’
East. The Project is connected to the RRVPN 33/132/220 kV substation at Amarsagar. The sites are
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located at a distance of 25 km from Jaisalmer by road. The nearest railway station is at Jaisalmer. A
location map is attached at Appendix – 1.
A.4.2. Category(ies) of project activity:

>>
The project activity is considered under CDM category zero-emissions ‘grid-connected electricity
generation from renewable sources’ that generates electricity in excess of 15 MW (limit for small scale
project). Therefore as per the scope of the project activity enlisted in the ‘list of sectoral scopes and
related approved baseline and monitoring methodologies (version 02 Mar 05/07:23)’, the project activity
may principally be categorized in Scope Number 1, Sectoral Scope - Energy industries (renewable/ non-
renewable sources).
A.4.3. Technology to be employed by the project activity:

>>
The Project involves 31 wind energy converters (WECs) of Enercon make (800 kW E-48) with internal
electrical lines connecting the Project with local evacuation facility. The WECs generates 3-phase power
at 400V, which is stepped up to 33 KV. The Project can operate in the frequency range of 47.5–51.5 Hz
and in the voltage range of 400 V ± 12.5%. The other salient features of the state-of-art-technology are:
• Gearless Construction - Rotor & Generator Mounted on same shaft eliminating the Gearbox.
• Variable speed function – has the speed range of 18 to 33 RPM thereby ensuring optimum efficiency
at all times.
• Variable Pitch functions ensuring maximum energy capture.
• Near Unity Power Factor at all times.
• Minimum drawl (less than 1% of kWh generated) of Reactive Power from the grid.
• No voltage peaks at any time.
• Operating range of the WEC with voltage fluctuation of -20 to +20%.
• Less Wear & Tear since the system eliminates mechanical brake, which are not needed due to low
speed generator which runs at maximum speed of 33 rpm and uses Air Brakes.
• Three Independent Braking System.
• Generator achieving rated output at only 33 rpm.
• Incorporates lightning protection system, which includes blades.
• Starts Generation of power at wind speed of 3 m/s.
Enercon (India) Ltd has secured and facilitated the technology transfer for wind based renewable energy
generation from Enercon GmbH, has established a manufacturing plant at Daman in India, where along
with other components the "Synchronous Generators" using "Vacuum Impregnation" technology are
manufactured.
A.4.4 Estimated amount of emission reductions over the chosen crediting period:
>>
Crediting Period for the Project: fixed for 10 years
Years Annual estimation of

emission reductions in
tonnes of CO2e
page 5
Years Annual estimation of

tonnes of CO2e
2008 44,207
2009 44,207
2010 44,207
2011 44,207
2012 44,207
2013 44,207
2014 44,207
2015 44,207
2016 44,207
2017 44,207
Total estimated reductions (tonnes of CO2e) 442,070
Total number of crediting years 10
Annual average over the crediting period of 44,207
estimated reductions (tonnes of CO2e)
A.4.5. Public funding of the project activity:

>>
There is no ODA financing involved in the Project.
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:
>>
The approved consolidated baseline and monitoring methodology ACM0002 Version 6.0 (19 May 2006)
has been used. The titles of these baseline and monitoring methodologies are “Consolidated baseline
methodology for grid-connected electricity generation from renewable sources” and “Consolidated
monitoring methodology for grid-connected electricity generation from renewable sources.
B.2 Justification of the choice of the methodology and why it is applicable to the project
activity:
>>
The Project is wind based renewable energy source, zero emission power project connected to the
Rajasthan state grid, which forms part of the Northern regional electricity grid. The Project will displace
fossil fuel based electricity generation that would have otherwise been provided by the operation and
expansion of the fossil fuel based power plants in Northern regional electricity grid.
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The approved consolidated baseline and monitoring methodology ACM0002 Version 6 is the choice of
the baseline and monitoring methodology and it is applicable because:
• the Project is grid connected renewable power generation project activity
• the Project represents electricity capacity additions from wind sources
• the Project does not involve switching from fossil fuel to renewable energy at the site of project
activity since the Project is green-field electricity generation capacities from wind sources at sites
where there was no electricity generation source prior to the Project, and
• the geographical and system boundaries of the Northern electricity grid can be clearly identified and
information on the characteristics of the grid is available.
B.3. Description of the sources and gases included in the project boundary
>>
The project boundary encompasses the physical, geographical site of the Project sited at the Project
Location. It would include the wind turbine installations and sub-station up to the Metering Point.
According to ACM0002, for the baseline emission factor, the spatial extent of the project boundary
includes the project site and all power plants connected physically to the electricity system that the CDM
project power plant is connected to.
The Indian electricity system is divided into five regional grids, viz. Northern, Eastern, Western,
Southern, and North-Eastern. Each grid covers several states. As the regional grids are interconnected,
there is inter-state and inter-regional exchange. A small power exchange also takes place with
neighbouring countries like Bhutan and Nepal.
Power generation and supply within the regional grid is managed by Regional Load Dispatch Centre
(RLDC). The Regional Power Committees (RPCs) provide a common platform for discussion and
solution to the regional problems relating to the grid. Each state in a regional grid meets its demand with
its own generation facilities and also with allocation from power plants owned by the Central Sector such
as NTPC and NHPC etc. Specific quotas are allocated to each state from the Central Sector power plants.
Depending on the demand and generation, there are electricity exports and imports between states in the
regional grid. The regional grid thus represents the largest electricity grid where power plants can be
dispatched without significant constraints and thus, represents the “project electricity system” for the
Project. As the Project is connected to the Northern regional electricity grid, the Northern grid is the
“project electricity system”.
Grid connected captive power plants have not been included because adequate detail of data (for example,
fuel consumption) is not available. In addition, data on certain utility power plants was not available and
these were excluded from the project electricity system. Even though data on individual renewable
energy projects is not available, they have been included using appropriate assumptions.
Source Gas Included? Justification/ Explanation

Electricity generation from CO2 Included Main emission source
Baseline
power plants connected to CH4 Excluded This source is not required to be

the Northern Grid estimated for wind energy projects
under ACM0002
page 7
N2O Excluded This source is not required to be

estimated for wind energy projects
under ACM0002
Electricity generation from CO2 Excluded Wind energy generation does not have
Activity
Project
the Project CH4 Excluded any direct GHG emissions.

N2O Excluded
B.4. Description of how the baseline scenario is identified and description of the identified
baseline scenario:
>>
According to ACM0002, for project activities that do not modify or retrofit an existing electricity generation
facility, the baseline scenario is the following:
Electricity delivered to the grid by the project 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 below.
As the Project does not modify or retrofit an existing generation facility, the baseline scenario is the
emissions generated by the operation of grid-connected power plants and by the addition of new
generation sources. This is estimated using calculation of Combined Margin multiplied by electricity
delivered to the grid by the Project.
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): >>
Step 0: Preliminary screening based on the starting date of the project activity
If project participants wish to have the crediting period starting prior to the registration of their project
activity, they shall:
a) Provide evidence that the starting date of the CDM project activity falls between 1 January 2000 and
the date of the registration of a first CDM project activity, bearing in mind that only CDM project
activities submitted for registration before 31 December 2005 may claim for a crediting period
starting before the date of registration.
b) Provide evidence that the incentive from the CDM was seriously considered in the decision to
proceed with the project activity. This evidence shall be based on (preferably official, legal and/or
other corporate) documentation that was available at, or prior to, the start of the project activity.
The Project start date is prior to the date of validation of the PDD. Enercon had entered into discussions
with a CER purchaser for purchase of emission reductions and a Memorandum of Understanding was
signed on 1st July 2005, which is prior to the start date of the Project.
Step 1: Identification of alternatives to the project activity consistent with current laws and
regulations
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Sub-step 1a. Define alternatives to the project activity:

1. Identify realistic and credible alternative(s) available to the project participants or similar project
developers that provide outputs or services comparable with the proposed CDM project activity. These
alternatives are to include:
The proposed project activity not undertaken as a CDM project activity;
All other plausible and credible alternatives to the project activity that deliver outputs and on services
(e.g. electricity, heat or cement) with comparable quality, properties and application areas;
If applicable, continuation of the current situation (no project activity or other alternatives
undertaken).
Alternative(s) available to the project participants or similar project developers include:
(a) The Project is not undertaken as a CDM project activity.
(b) Setting up of comparable utility scale fossil fuel fired or hydro power projects that supply to the
Rajasthan grid under a PPA.
(c) Continuation of the current situation where no project activity or any of the above Alternatives are
undertaken would not be applicable as Rajasthan had energy (MU) shortages of 3.5% and peak
(MW) shortages of 13.7% in 2005-06 (Source: Northern Region Power Sector Profile, July 2006,
Ministry of Power).
Sub-step 1b. Enforcement of applicable laws and regulations
2. The alternative(s) shall be in compliance with all applicable legal and regulatory requirements, even
if these laws and regulations have objectives other than GHG reductions, e.g. to mitigate local air
pollution. This sub-step does not consider national and local policies that do not have legally-binding
status.
3. If an alternative does not comply with all applicable legislation and regulations, then show that, based
on an examination of current practice in the country or region in which the law or regulation applies,
those applicable legal or regulatory requirements are systematically not enforced and that non-
compliance with those requirements is widespread in the country. If this cannot be shown, then
eliminate the alternative from further consideration.
4. If the proposed project activity is the only alternative amongst the ones considered by the project
participants that is in compliance with all regulations with which there is general compliance, then the
proposed CDM project activity is not additional.
There are no legal and regulatory requirements that prevent Alternatives (a) and (b) from occurring.
Proceed to Step 2 (Investment analysis) or Step 3 (Barrier analysis). (Project participants may also
select to complete both steps 2 and 3.)
Step 2: Investment Analysis

Determine whether the proposed project activity is the economically or financially less attractive than
other alternatives without the revenue from the sale of certified emission reductions (CERs). To conduct
the investment analysis, use the following sub-steps:
Sub-step 2a. - Determine appropriate analysis method
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1. Determine whether to apply simple cost analysis, investment comparison analysis or benchmark
analysis (sub-step 2b). If the CDM project activity generates no financial or economic benefits other
than CDM related income, then apply the simple cost analysis (Option I). Otherwise, use the
investment comparison analysis (Option II) or the benchmark analysis (Option III).
Sub-step 2b. – Option I. Apply simple cost analysis
2. Document the costs associated with the CDM project activity and demonstrate that the activity
produces no economic benefits other than CDM related income.
Sub-step 2b. – Option II. Apply investment comparison analysis
3. Identify the financial indicator, such as IRR, NPV, cost benefit ratio, or unit cost of service (e.g.,
levelized cost of electricity production in $/kWh or levelized cost of delivered heat in $/GJ) most
suitable for the project type and decision-making context.
Sub-step 2b. – Option III. Apply benchmark analysis
suitable for the project type and decision context.
Option I – Simple cost analysis is not applicable as the project activity sells electricity to the grid and
obtains economic benefits in the form of electricity tariffs.
Enercon proposes to use Option II – Investment comparison analysis and the financial indicator that is
identified is the post-tax return on equity or the equity IRR.
The post tax return on equity and equity IRR is used as the appropriate financial indicator because in the
Indian power sector, a 14% post tax return on equity is an established benchmark for projects in public or
private sector based on cost-plus regulations (Source: Central Electricity Regulatory Commission, Terms
and Conditions of Tariff, Regulations 2004 dated 26 March 2004) for utility scale power plants (similar to
Alternative (b)). Incentives, foreign exchange variations and efficiency in operations are in addition to
this benchmark of 14%.
For determining the tariffs for wind power projects, the electricity regulatory commissions of the state of
Rajasthan and Gujarat have considered the return on equity at 14% while the electricity regulatory
commissions of the state of Madhya Pradesh, Maharashtra and Karnataka have considered the return on
equity at 16%. (Source: RERC Order dated 29 September 2006).
There are some essential differences between the Project (whether implemented with or without CDM
revenues) and the Alternatives identified in Sub-step 1(b) (utility scale fossil fuel and hydro projects).
These should be taken into account while setting the appropriate level of equity IRR.
• The project activity tariff structure is a single-part tariff structure as compared to utility scale fossil
fuel and hydro projects, which have two-part tariff structure. This implies that project activity
carries a higher investment risk than the utility scale fossil fuel and hydro projects (Alternative (b))
where the investment recovery is decoupled from the level of actual generation achieved by the
project due to variations in offtake.
Thus, in case of the project activity, issues such as transmission unavailability, back-down of
generation or part-load operations, which are beyond the control of the investors are likely to affect
the project activity more severely and therefore the project activity investors would require higher
rate of return to compensate them for these additional risks.
• In case of utility scale fossil fuel and hydro projects (Alternative (b)), these are by reference to cost-
plus approach whereby the projects recover their full investment cost each year if they are able to
page 10
reach specified level of plant availability. In case of the Project, it does not recover its full
investment cost in the initial years as the tariffs are back-loaded. This increases the investment risks
in the project activity compared to the alternatives.
Based on the above considerations, 16% post-tax equity IRR is considered to be the appropriate post-tax
equity return. If the Project has a post-tax equity IRR of less than 16%, then it can be considered to be
additional.
Sub-step 2c. Calculation and comparison of financial indicators (only applicable to options II and III):
5. Calculate the suitable financial indicator for the proposed CDM project activity and, in the case of
Option II above, for the other alternatives. Include all relevant costs (including, for example, the
investment cost, the operations and maintenance costs), and revenues (excluding CER revenues, but
including subsidies/fiscal incentives where applicable), and, as appropriate, non-market cost and
benefits in the case of public investors.
6. Present the investment analysis in a transparent manner and provide all the relevant assumptions in
the CDM-PDD, so that a reader can reproduce the analysis and obtain the same results. Clearly
present critical techno-economic parameters and assumptions (such as capital costs, fuel prices,
lifetimes, and discount rate or cost of capital). Justify and/or cite assumptions in a manner that can be
validated by the DOE. In calculating the financial indicator, the project’s risks can be included
through the cash flow pattern, subject to project-specific expectations and assumptions (e.g. insurance
premiums can be used in the calculation to reflect specific risk equivalents).
7. Assumptions and input data for the investment analysis shall not differ across the project activity and
its alternatives, unless differences can be well substantiated.
8. Present in the CDM-PDD submitted for validation a clear comparison of the financial indicator for
the proposed CDM activity and:
(a) The alternatives, if Option II (investment comparison analysis) is used. If one of the other
alternatives has the best indicator (e.g. highest IRR), then the CDM project activity can
not be considered as the most financially attractive;
(b) The financial benchmark, if Option III (benchmark analysis) is used. If the CDM project
activity has a less favourable indicator (e.g. lower IRR) than the benchmark, then the
CDM project activity cannot be considered as financially attractive.
The key assumptions used for calculating the benchmark (post-tax equity IRR) are set out below:
Capacity of Machines in kW 800

Number of Machines 31
Project Capacity in MW 24.80
Project Commissioning Date 1-Apr-06
Project Cost per MW (Rs. In Millions) 47.5
Operations
Plant Load Factor - 1st to 5th year 22.00%
Plant Load Factor - 6th to 9th year 21.73%
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Insurance Charges @ % of capital cost 0.18%
Operation & Maintanance Cost base year @ % of capital
1.25%
cost
% of escalation per annum on O & M Charges 5.0%
Tariff
Base year Tariff (2005-06) - Rs./Kwh 3.25
Annual Escalation (Rs./kWh per Year) 0.06
Tariff applicable from 2014-15 onwards (Rs/kWh) 3.79
Project Cost Rs Million

Land and Infrastructure, Generator & Electrical Equipments,
Mechanical Equipments, Civil Works, Instrumentation &
Control, Other Project Cost, Pre operative Expenses, etc.
Total Project Cost 1,178
Means of Finance Rs Million

Own Source 30% 353
Term Loan 70% 825
Total Source 1,178
Terms of Loan
Interest Rate 8.50%
Tenure 10 Years
Moratorium 6 Months
Income Tax Depreciation Rate (Written Down Value basis)

on Wind Energy Generators 80%
On other Assets 10%
Book Depreciation Rate (Straight Line Method basis)

On all assets 7.86%
Book Depreciation up to (% of asset value) 90%
Income Tax
Income Tax rate 30%
Minimum Alternate Tax 10%
Surcharge 10%
page 12
Cess 2%
Working capital
Receivables (no of days) 45
O & m expenses (no of days) 30
Working capital interest rate 12%
CER Revenues
CER Price in US$ -
Exchange rate Rs./US$*
45.34
* RBI reference rate as of 15 November 2006
Crediting period starts 1-Apr-07

Length of Crediting period
10
Baseline Emission Factor for Northern Region (tCO2/GWh) 924.96
The equity IRR for the Project without CDM revenues is 11.1% and with CDM revenues is 12.8%.
Sub-step 2d. Sensitivity analysis (only applicable to options II and III):

9. Include a sensitivity analysis that shows whether the conclusion regarding the financial attractiveness
is robust to reasonable variations in the critical assumptions. The investment analysis provides a valid
argument in favor 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 (as per step 2c
para 8a) or is unlikely to be financially attractive (as per step 2c para 8b).
Sensitivity analysis of the Equity IRR to the Plant Load Factor (the most critical assumption) has been
carried out considering a plant load factor of 20% (plant load factor as observed in recent past for other
Enercon projects) and 23.97% (highest plant load factor achieved according to RERC, in its Order dated
29 September 2006). Plant Load Factor is the key variable encompassing variation in wind profile,
variation in off-take (including grid availability) including machine downtime. The post tax Equity IRRs
at the stated PLFs are as follows:
PLF at 20% PLF at 23.97%

Post tax Equity IRR without 8.2% 13.9%
CER revenues
Post tax Equity IRR with CER 9.7% 15.8%
revenues
As can be seen from above, the Project is not the most financially attractive (as per step 2c para 8a) we
proceed to Step 4 (Common practice analysis).
Step 4. Common practice analysis
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Sub-step 4a. Analyze other activities similar to the proposed project activity:
1. Provide an analysis of any other activities implemented previously or currently underway that are
similar to the proposed project activity. Projects are considered similar if they are in the same
country/region and/or rely on a broadly similar technology, are of a similar scale, and take place in a
comparable environment with respect to regulatory framework, investment climate, access to
technology, access to financing, etc. Other CDM project activities are not to be included in this
analysis. Provide quantitative information where relevant.
Sub-step 4b. Discuss any similar options that are occurring:
2. If similar activities are widely observed and commonly carried out, it calls into question the claim
that the proposed project activity is financially unattractive (as contended in Step 2) or faces barriers
(as contended in Step 3). Therefore, if similar activities are identified above, then it is necessary to
demonstrate why the existence of these activities does not contradict the claim that the proposed
project activity is financially unattractive or subject to barriers. This can be done by comparing the
proposed project activity to the other similar activities, and pointing out and explaining essential
distinctions between them that explain why the similar activities enjoyed certain benefits that
rendered it financially attractive (e.g., subsidies or other financial flows) or did not face the barriers to
which the proposed project activity is subject.
3. Essential distinctions may include a serious change in circumstances under which the proposed CDM
project activity will be implemented when compared to circumstances under which similar projects
where carried out. For example, new barriers may have arisen, or promotional policies may have
ended, leading to a situation in which the proposed CDM project activity would not be implemented
without the incentive provided by the CDM. The change must be fundamental and verifiable.
We analyze the extent to which wind energy projects have diffused in the electricity sector in Rajasthan.
In 2005 – 06, electricity generation from wind sources was 417 GWh which is expected to increase to 512
GWh in 2006 – 07. This works out to 1.35% of total generation available to the state of Rajasthan in
2005 – 06 and 1.66% of total expected generation available to the state of Rajasthan in 2006 – 07.
Clearly, electricity generation from wind is not a common practice in Rajasthan.
We analyze the wind energy projects in Rajasthan that have come under different policy regimes and in
different years. Briefly, the various policies have progressively decreased the electricity tariffs payable
by the offtaker (RRVPN/Discoms) and have progressively passed on burden of providing or paying for
transmission facilities. Below is the electricity tariff payable under different policies:
Electricity tariff (Rs/kWh) 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007-
00 01 02 03 04 05 06 07 08
1999 Policy 2.89 3.03 3.18 3.34 3.51 3.69 3.87 4.06 4.27
2000 Policy 3.03 3.18 3.34 3.51 3.68 3.87 4.06 4.26
2003 Policy 3.32 3.39 3.45 3.52 3.59
2004 Policy (Original) 2.91 2.96 3.01 3.06
2004 Policy (Amended) 3.25 3.31 3.37
Out of the 279 MW installed up to 31 March 2005, the wind power projects under various policies of
Government of Rajasthan are set out below:
Policy 1999 (effective 11th March 1999): 4.25 MW
Policy 2000 (effective 4th Feb 2000): 82.23 MW
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Policy 2003 (effective 30th April 2003): 174.29 MW

Policy 2004 (effective 25th October 2004): 18.85 MW
Currently, there are 134.71 MW of wind projects in Rajasthan (at various stages) that are in the CDM
pipeline (on the cdm.unfccc.int website) out of 279 MW and more projects are expected to come into the
CDM pipeline.
With the revision of Policy 2004 (effective February 2006), the capacity additions during the three years
are expected to be around 297 MW:
2005–06: 74 MW
2006-07: 36 MW
2007-08: 187 MW
Out of the 297 MW that is estimated to be installed up to 2008, this Project constitutes 24.8 MW.
Enercon is further developing a 100 MW wind power project and another 60 MW as CDM project
activities under the 2004 policy (amended). It is expected that other wind power projects during this
period will be undertaken as CDM projects.
Clearly, wind power project development in Rajasthan is insignificant when compared to the power sector
of Rajasthan. Further, wind power project development is substantially dependent on CDM mechanism
and thus is not common practice.
Sub-steps 4a and 4b are satisfied.
Step 5. Impact of CDM registration
Explain how the approval and registration of the project activity as a CDM activity, and the attendant
benefits and incentives derived from the project activity, will alleviate the economic and financial hurdles
(Step 2) or other identified barriers (Step 3) and thus enable the project activity to be undertaken.
Registering the project activity as a CDM activity provides a significant amount of revenue, improving
the project’s cash flow and improving the equity IRR by 1.7%. The revenues from sale of the Certified
Emission Reductions would enhance the viability of the project and would partially offset the risks
associated with the possible changes in policy, wind regime, project implementation risks (time and cost
overruns), etc. Further, CER revenues will be high quality cash flows coming from creditworthy parties
and denominated in foreign currency. The CDM revenues will attract new players to wind investments in
Rajasthan, as they provide compensation for the regulatory and project risks implicit in the wind power
projects.
B.6. Emission reductions:

B.6.1. Explanation of methodological choices:
>>
According to the approved baseline methodology ACM0002, the emission reductions ERy by the project
activity during a given year “y1” is
1
Throughout the document, the suffix y denotes that such parameter is a function of the year y, thus to be monitored at least
annually.
page 15
ERy = BEy – PEy – Ly……………….(1)
where EGy is the electricity supplied to the grid, EFy is the CO2 emission factor of the grid and Ly is the
amount of emissions leakage resulting from the project activity.
Baseline Emissions for the amount of electricity supplied by project activity, BEy is calculated as
BEy = EGy * EFy …………………….(2)
where EGy is the electricity supplied to the grid, EFy is the CO2 emission factor of the grid as calculated
below.
The emission factor EFy of the grid is represented as a combination of the Operating Margin (OM) and
the Build Margin (BM). Considering the emission factors for these two margins as EFOM,y and EFBM,y,
then the EFy is given by:
EFy = wOM * EFOM,y + wBM * EFBM,y…………………………..(2)
with respective weight factors wOM and wBM (where wOM + wBM = 1).
The Operating Margin emission factor
As per ACM0002, dispatch data analysis should be the first methodological choice. However, this option
is not selected because the information required to calculate OM based on dispatch data is not available in
the public domain for the Northern electricity regional grid.
The Simple Operating Margin approach has been used to calculate the Operating Margin emission factor
applicable in this case. As per ACM 0002 the Simple OM method can only be used where low cost must
run resources constitute less than 50% of grid generation based on average of the five most recent years.
The generation profile of the Northern grid in the last five years is as follows:
Generation in GWh 2004-05 2003-04 2002-03 2001-02 2000-01

Low cost/must run sources
Hydro 36,128 38,279 30,335 29,129 29,020
Wind 332 15 25 19 6
Nuclear 7,503 7,380 8,800 8,158 6,669
Other sources
Coal 106,156 103,232 100,362 96,882 92,417
Diesel - - - 24 -
Gas 19,991 18,758 17,262 17,634 16,863
Total Generation 170,109 167,663 156,785 151,845 144,975
Low cost/must run sources 43,962 45,674 39,160 37,305 35,695
Low cost/must run sources 26% 27% 25% 25% 25%
page 16
Source: Table 3.4 of CEA General Review 2004-05, 2003-04, 2002-03, 2001-02, 2000-01
From the available information it is clear that low cost/must run sources account for less than 50% of the
total generation in the Northern grid in the last five years. Hence the Simple OM method has been used to
calculate the Operating Margin Emission factor applicable.
Simple OM Method: The Simple OM emission factor EFOM,y is calculated as the generation-weighted
average emissions per electricity unit generated (tCO2/MWh) for all sources serving the Northern regional
grid, excluding zero- or low-operating cost power plants (hydro, wind and nuclear), using the following
equation:
EFOM,y = [∑i,j Fi,j,y * COEFi,j] / [∑j GENj,y]……………………..(3)
where Fi,j,y and COEFi,j are the fuel consumption and associated carbon coefficient of the fossil fuel i
consumed by power plant j in the grid in year(s) y. GENj,y is the electricity generation by power plant j
connected to the grid excluding zero- or low-operating cost sources in year(s) y.
As per ACM0002, the OM emission factor can be calculated using ex ante generation-weighted average
of the most recent 3 years for which data is available or using ex post generation data in the year in which
the project generation occurs. The OM emission factor is calculated using ex ante generation-weighted
average of the most recent 3 years and hence does not require yearly monitoring of the OM emission
factor.
For the purpose of determining the emission factor(s) for net electricity imports from a connected
electricity system within India, the following option has been used “(c) the average emission rate of the
exporting grid, if and only if net imports do not exceed 20% of total generation in the project electricity
system”. This has been done because the net imports to the Northern Grid from the connected electricity
system (Western, Eastern, North - Eastern and Southern regional electricity grids) do not exceed 20% and
it is not appropriate to use emissions of specific plants as it is not possible to identify specific plants from
which these imports take place.
The CO2 emission coefficient COEFi,j is obtained as:
COEFi,j = NCVi,j * EFCO2,i * OXIDi……………………………….(4)
where:
NCVi,j is the net calorific value (energy content) per mass or volume unit of a fuel i,
OXIDi is the oxidation factor of the fuel,
EFCO2,i is the CO2 emission factor per unit of energy of the fuel i.
Build Margin Emission Factor

page 17
The Build Margin emission factor EF_BMy (tCO2/GWh) is given as the generation-weighted average
emission factor of the selected representative set of recent power plants represented by the 5 most recent
plants or the most recent 20% of the generating units built (summation is over such plants specified by k):
EFBM,y = [∑i Fi,m,y*COEFi] / [∑k GENk,m,y]………………………..(5)
The summation over i and k is for the fuels and electricity generation of the plants in sample m mentioned
above.
The choice of method for the sample plant is the most recent 20% of the generating units built as this
represents a significantly larger set of plants for a large regional electricity grid have a large number of
power plants connected to it and is therefore appropriate. The calculation of the net generation for 5 most
recent built and for the most recent 20% of the generation units built is shown in the calculation of Build
Margin in Annex – 3.
The Build Margin is calculated on ex ante based on the most recent information available on power plants
already built for sample group m at the time of the PDD preparation.
Combined Margin Emission Factor
As already mentioned, baseline emission factor (EFy) of the grid is calculated as a combined margin
(CM), calculated as the weighted average of the operating margin (OM) and build margin (BM) factor. In
case of wind power projects default weights of 0.75 for EFOM and 0.25 for EFBM are applicable as per
ACM0002. No alternate weights are proposed.
Using the above mentioned formulas for calculation of operating margin and build margin emission
factors and their respective weights for calculation of combined margin emission factor, the baseline
carbon emission factor (CM) is 924.96 tCO2e/GWh or 0.92496 tCO2e/MWh.
Project Emissions:
The project activity uses wind power to generate electricity and hence the emissions from the project
activity are taken as nil.
PEy = 0
Leakage:
Emissions Leakage on account of the project activity is ignored in accordance with ACM0002.
Ly = 0
B.6.2. Data and parameters that are available at validation:

>>
Data / Parameter: Net Calorific Value of Coal, Furnace Oil, HSD, Light Oil, LSHS, Lignite
Data unit: Terra Joules per 103 tons
Description: The Net Calorific Value has been used for calculating the emission coefficients of fuels.
page 18
Source of data used: Data published in Table 1.3 of Central Electricity Authority (CEA) General Review of
Power Sector for 2004-05, 2003-04 and 2002-03 has been used for all fuels except for
HSD. Calorific value of HSD is taken from data published by CEA on petroleum fuels
used by GT and Diesel power plants in India in 2003-04.
Value applied:
2002-03 2003-04 2004-05
Coal 17.46 15.99 15.72
Furnace oil 44.91 43.40 43.68
Light oil 40.86 42.65 43.00
LSHS/HHS/HS 44.06 43.13 43.64
D
Lignite 11.25 11.46 11.40
HSD 42.71 42.71 42.71
Justification of the choice As per ACM0002, wherever available, country specific Net Calorific Values should be
of data or description of used for calculation. Accordingly the Net Calorific Value data published by the Central
measurement methods Electricity Authority, Ministry of Power, Govt. of India has been used.
and procedures actually HSD Calorific values are not published in the CEA General Review, hence the value as
applied : per CEA data on petroleum fuels used by GT and Diesel power plants in India in 2003-
04 was used. This publication is only available for 2003-04 hence the 2003-04
Calorific value has been used for all three years i.e. 2002-03, 2003-04 and 2004-05.
Any comment:
Data / Parameter: Net Calorific Value of Naphtha, Natural Gas

Data unit: Terra Joules per M.cum
Description: The Net Calorific Value has been used for calculating the emission coefficients of
Naphtha and Natural Gas.
Source of data used: Data published by CEA on petroleum fuels used by GT and Diesel power plants in
India in 2003-04.
Value applied:
2002-03 2003-04 2004-05
Natural Gas 34.12 34.12 34.12
Naphtha 46.89 46.89 46.89
Justification of the choice
of data or description of HSD Calorific values are not published in the CEA General Review, hence the value as
measurement methods per CEA data on petroleum fuels used by GT and Diesel power plants in India in 2003-
and procedures actually 04 was used. This publication is only available for 2003-04 hence the 2003-04
applied : Calorific value has been used for all three years i.e. 2002-03, 2003-04 and 2004-05.
Any comment:
Data / Parameter: Carbon Emission Factor

Data unit: Tonnes Carbon per Terra Joule
Description: Carbon Emission Factor has been used for calculating the emission coefficients of
different fuel types
Source of data used: In case of Coal and Lignite, Carbon Emission Factor as per India’s first National
Communication to the UNFCCC has been used.
For all other fuels, default values as per table 1-4 of Revised 1996 IPCC Guidelines for
National Greenhouse Gas Inventories: Workbook has been used.
page 19
Value applied:
Coal 26.13
Furnace oil 21.10
Light oil 20.00
LSHS/HHS/HSD 20.20
Lignite 28.95
Natural Gas 15.30
Naphtha 20.00
HSD 20.20
Justification of the choice As per ACM0002, wherever available, country specific values of Carbon Emission
of data or description of Factors should be used for calculation. Accordingly the Emission Factors data as per
measurement methods India’s first National Communication to UNFCCC has been used in case of Coal and
and procedures actually Lignite.
applied : Country specific Emission Factors for other fuel types are not available. Hence default
values as per the IPCC Guidelines have been used.
Any comment:
Data / Parameter: Oxidation Factor

Data unit: Fraction of Carbon oxidised
Description: Oxidation Factor has been used for calculating the emission coefficients of different
fuel types
Source of data used: Default values obtained from Table 1-6 of Revised 1996 IPCC Guidelines for National
Greenhouse Gas Inventories: Workbook
Value applied:
Coal 0.98
Furnace oil 0.99
Light oil 0.99
LSHS/HHS 0.99
Lignite 0.98
Natural Gas 1.00
Naphtha 0.99
HSD 0.99

of data or description of Only IPCC default values are available.
measurement methods
and procedures actually
applied :
Any comment:
Data / Parameter: Fuel Density

Data unit: Kgs per Ltr or Kgs per Cu.m
Description: Fuel density of various fuels has been used for calculating the emissions of the
respective fuel types
Source of data used:
Value applied: Density
Fuel (kg/Lt)
Coal 1.00
page 20
Furnace oil 0.93

Light oil 0.83
LSHS 0.83
Lignite 1.00
Natural Gas 1.00
HSD 0.83
Naphtha 0.76
of data or description of Only IPCC default values are available
measurement methods
applied :
Any comment:
Data / Parameter: Fuel consumption by Northern grid generating sources in 2004-05, 2003-04 and
2002-03
Data unit: ‘000’MT, KL, M Cu M
Description: Fuel consumption by generating sources have been used to calculate the total emissions
from electricity generation in the Northern grid during 2004-05, 2003-04 and 2002-03
Source of data used: Table 6.1 CEA General Review of Power Sector 2004-05, 2003-04 and 2002-03
Value applied: Fuel Units 2002-03 2003-04 2004-05
Steam stations
Coal '000' MT 68,594 70,085 72,943
Furnace oil KL 57,666 43,377 26,071
Light oil KL 60,211 254,855 94,208
LSHS/HHS KL 32,761 2,377 3,126
Lignite '000' MT - - -
Gas Stations
Natural Gas M Cu M 3,953 3,808 4,058
HSD KL 401,257 240,593 275,047
Naphtha KL - 188,981 243,961
Justification of the choice The data source, i.e. Central Electricity Authority is a Government of India
of data or description of organisation, which is mandated to publish such information under section 73 (i) and
measurement methods 73(j) of the Indian Electricity Act 2003.
applied :
Any comment:
Data / Parameter: Imports from other regional grids into the Northern grid in 2002-03, 2003-04 and
2004-05
Data unit: GWh
Description: Electricity imports from other regional grids are used as an input into the calculation of
operating margin.
Source of data used: Table 5.8 of CEA General Review of Power Sector for 2002-03, 2003-04 and 2004-05
page 21
Value applied:
Net generation in GWh 2004-05 2003-04 2002-03
Western Region 374 175 43
Eastern Region 3,043 125 827
Southern Region 120
North-eastern Region 172
applied :
Any comment:
Data / Parameter: Average emission rate of regional grids in 2002-03, 2003-04 and 2004-05
Data unit: tCO2e/GWh
Description: Average emission rate of regional grids is used for calculating the emissions related to
import of electricity from other regional grids into the Northern grid, which is used as
an input for calculation of operating margin.
Source of data used: Fuel Consumption: Table 6.1, CEA General Review for 2004-05, 2003-04 and 2002-03
Gross Electricity Generation: Table 3.4, CEA General Review for 2004-05, 2003-04
and 2002-03
Net Electricity Generation: Table 5.5, CEA General Review for 2004-05, 2003-04 and
2002-03
Value applied: Refer Annex – 3
applied :
Any comment:
Data / Parameter: Net electricity generation by fossil fuel fired power plants in the Northern grid in
2002-03, 2003-04 and 2004-05
Data unit: GWh
Description: Net electricity generation by fossil fuel fired power plants in the Northern grid has been
used to calculate the average emission intensity of electricity generated in the Northern
grid. This data is used as an input in the Operating margin emission factor calculation.
Source of data used: Table 3.4 of CEA General Review of Power Sector for 2002-03, 2003-04 and 2004-05
Value applied:
Net generation in GWh Steam Gas
2004-05 96,404 19,516
2003-04 94,041 18,328
2002-03 91,523 16,852
page 22
applied :
Any comment:
Data / Parameter: Sample group of power plants added to the Northern grid in recent times,
Data unit: MW, GWh
Description: The sample group of new additions to the Northern grid comprising 20% of the grid’s
net generation during 2004-05 have been used for calculating the build margin emission
factor
Source of data used: Table 2.8 of CEA General Review of Power Sector for 2004-05, 2003-04,2002-
03,2001-02,2000-01,1999-00,1998-99,1997-98,1996-97 and 1995-96
Value applied:
Refer Annex – 3
of data or description of The data source, i.e. Central Electricity Authority is a Government of India
measurement methods organisation, which is mandated to publish such information under section 73 (i) and
and procedures actually 73(j) of the Indian Electricity Act 2003.
applied :
Any comment:
Data / Parameter: Gross electricity generation during 2004-05 by power plants considered for Build
margin calculations.
Data unit: GWh
Description: Gross generation by the sample group of power plants has been used to arrive at the net
electricity supply by these power plants to the Northern grid.
Source of data used: − Hydro Generation data obtained from CEA Performance Review of Hydro Power
Stations 2004-05
− Steam Generation data obtained from Section 2, CEA Thermal Performance
Review 2004-05
− Gas Generation data obtained from Section 10, CEA Thermal Performance Review
2004-05
− Nuclear Generation data obtained from Nuclear Power Corporation of India’s
website http://www.npcil.nic.in/raps.asp
− Wind generation data is obtained from Table 3.4, CEA General Review 2004-05
and procedures actually Many power generating stations in India house multiple generating units (both in case
applied : of Hydro and Thermal) and in many cases unit wise generation data is not published.
Therefore some times it is not possible to determine the actual amount of electricity
generated by a new unit that was added in recent times. In such cases pro-rata
generation, depending on capacity, has been used.
Plant wise generation for Nuclear power units is not available in the CEA publication.
Generation data reported for the Rajasthan Atomic Power station for 2004-05 on the
website of Nuclear Power Corporation of India Limited,
http://www.npcil.nic.in/raps.asp, has been used.
page 23
Similarly unit wise generation data of wind installations is also not available in the
public domain. In case of the northern region build margin sample plants, the earliest
plant i.e. GHTP Bhatinda-2 was commissioned on 18 October 1998, whereas the
earliest wind installation of northern region was commissioned in 1999-00 in Rajasthan.
Rajasthan is the only state in the northern region that has wind power installations.
Therefore electricity generation for all wind power projects in Rajasthan for 2004-05
has been considered for build margin calculations.
Any comment:
Data / Parameter: Auxiliary consumption during 2004-05 by power plants considered for Build
margin calculations.
Data unit: GWh
Description: Auxiliary consumption by the sample group of power plants has been used to arrive at
the net electricity supply by these power plants to the Northern grid.
Source of data used: − Auxiliary consumption for Hydro units is considered at 0.5% as per CERC norms
applicable to Surface hydro electric power generating stations with static excitation
system.
− Auxiliary consumption for Steam units taken from Section 11, CEA Thermal
Performance Review 2004-05
− For Gas plants, the state average auxiliary consumption of Gas Power plants as per
Table 5.5 CEA General Review 2004-05 has been used in the absence of plant
specific auxiliary consumption data.
− Auxiliary Consumption for Nuclear Power Plants taken as the: State average for
the respective generation type from Table 5.5 CEA General Review 2004-05
and procedures actually Actual auxiliary consumption of Hydro power units is not available in the CEA
applied : publications. Hence the auxiliary consumption norms set by Central Electricity
Regulatory Commission for determination of tariff for Hydro units has been used.
Nuclear power in India is generated by the Government owned Nuclear Power
Corporation of India Limited. Therefore the entire nuclear power generation pertains to
NPCL alone. Hence the state average auxiliary consumption for Nuclear power actually
refers to the auxiliary consumption rate achieved by the NPCL plant.
In case of Gas plants, plant wise data is not available. Hence the state averages (for the
respective fuel type) of auxiliary consumption have been applied.
Auxiliary consumption of wind considered as “Nil” as wind power generation does not
involve any auxiliary consumption. This is conservative.
Any comment:
Data / Parameter: Average Emission Factor for Gas plants

Data unit: tCO2/GWh
Description: The Average emission factor for Gas plants is used as in input for calculation of build
margin emission factor
Source of data used: CERC for tariff Regulations dated 24 March 2004
Value applied:
page 24
Gas Combined
Cycle
(Advanced
class machines)
Gross Heat Rate (Kcal/KWh) 1,850
Auxiliary Consumption 3.0%
Net Heat Rate 1,907
Net Calorific value of fuel (Kcal/SCM) 8,150

Net Calorific value of fuel (TJ/'000' Tons) 34.12
Specific Fuel Consumption (SCM/KWh) 0.23
Carbon emission factor 15.30

Oxidation factor 0.995
tCO2/'000' tons 1,905
Emission Coefficient (tCO2e/GWh) 445.73
Justification of the choice In the absence of any plant specific gas consumption information, the operating norms
of data or description of set by CERC, for tariff determination of Gas power plants, has been considered for
measurement methods arriving at the applicable emission rates for gas plants included in the build margin
and procedures actually calculations.
applied :
Any comment:
Data / Parameter: Average Emission Factor for Coal plants

Data unit: tCO2/GWh
Description: The Average emission factor for Coal plants is used as in input for calculation of build
margin emission factor.
Source of data used: CEA Thermal Performance Review 2004-05
Value applied:
Emission
Coefficient
Auxilia (tCO2/ Specific
Coal Gross ry Net 1000 emissions
Coal/lignite fired consum Installed generat consum Genera tonnes of (tCO2e/M
stations ption Capacity ion ption tion fuel) Wh)
Million
Tonnes MW GWh % GWh
Northern Region
Rihand 4,768 1,000 7,988 7.93% 7,355 1,476 957
Suratgarh 5,920 1,250 9,362 9.22% 8,499 1,476 1,028
Kota 5,213 1,045 7,749 9.62% 7,004 1,476 1,099
Unchahar 4,604 840 6,781 8.57% 6,200 1,476 1,096
Bhatinda 1,995 420 3,309 9.23% 3,004 1,476 980
Panipat 4,447 860 5,326 10.34% 4,775 1,476 1,375
Justification of the
choice of data or The data source, i.e. Central Electricity Authority is a Government of India organisation,
page 25
description of which is mandated to publish such information under section 73 (i) and 73(j) of the Indian
measurement methods Electricity Act 2003.
applied :
Any comment:
B.6.3 Ex-ante calculation of emission reductions:

>>
Ex-ante calculation of emission reductions is equal to ex-ante calculation of baseline emissions as project
emissions and leakage are nil.
Baseline emission factor (combined margin)

= 924.96 tCO2e/GWh
Annual electricity supplied to the grid by the Project
= 24.8 MW (Capacity) x 22% (PLF) x 8760 (hours) / 1000 GWh
= 47.794 GWh
Annual baseline emissions

= 924.96 tCO2e/GWh x 47.794 GWh
= 44,207 tCO2e
B.6.4 Summary of the ex-ante estimation of emission reductions:

>>
Year Estimation of Estimation of Estimation Estimation of
project activity baseline of leakage overall emission
emissions (tonnes emissions (tonnes of reductions (tonnes
of CO2e) (tonnes of CO2e) CO2e) of CO2e)
2008 0 44,207 0 44,207
2009 0 44,207 0 44,207
2010 0 44,207 0 44,207
2011 0 44,207 0 44,207
2012 0 44,207 0 44,207
2013 0 44,207 0 44,207
2014 0 44,207 0 44,207
2015 0 44,207 0 44,207
2016 0 44,207 0 44,207
2017 0 44,207 0 44,207
Total (tonnes 0 442,070 0 442,070
of CO2e)
B.7 Application of the monitoring methodology and description of the monitoring plan:
page 26
B.7.1 Data and parameters monitored:
Data / Parameter: EGy

Data unit: MWh (Mega-watt hour)
Description: Net electricity supplied to the grid by the Project
Source of data to be Electricity supplied to the grid as per the tariff invoices raised on
used: RRVPNL/Jodhpur Discom.
Value of data applied Annual electricity supplied to the grid by the Project
for the purpose of = 24.8 MW (Capacity) x 22% (PLF) x 8760 (hours) GWh
calculating expected = 47,794 MWh
section B.5
Description of Net electricity supplied to grid will be measured by main meters (export and
measurement methods import). The procedures for metering and meter reading will be as per the
and procedures to be provisions of the power purchase agreement and the Metering Code of Rajasthan.
applied: Refer Annex – 4 for an illustration of the provisions for measurement methods.
QA/QC procedures to QA/QC procedures will be as implemented by RRVPN/Jodhpur Discom pursuant
be applied: to the provisions of the power purchase agreement and the Metering Code of
Rajasthan and there will be no additional QA/QC procedures. Refer Annex – 4
for an illustration of the provisions for QA/QC procedures.
Any comment:
B.7.2 Description of the monitoring plan:

>>
Approved monitoring methodology ACM0002 / Version 06 Sectoral Scope: 1, “Consolidated monitoring
methodology for zero-emissions grid-connected electricity generation from renewable sources”, by CDM
- Meth Panel is proposed to be used to monitor the emission reductions.
This approved monitoring methodology requires monitoring of the following:

• Electricity generation from the project activity; and
• Operating margin emission factor and build margin emission factor of the grid, where ex post
determination of grid emission factor has been chosen
Since the baseline methodology is based on ex ante determination of the baseline, the monitoring of
operating margin emission factor and build margin emission factor is not required.
The sole parameter for monitoring is the electricity supplied to the grid. The Project is operated and
managed by Enercon (India) Ltd. The operational and management structure implemented by Enercon is
as follows:
page 27
STRUCTUR RESPONSIBILITY
Managing Director
Enercon India Ltd
CDM Team Review, Corrective action

co-ordinator
Corporate Review, internal

CDM Team
Regional Service Check, authorize & forward

Heads monitoring data
O&M Team Monitor, record, report and

archive data
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: 15/11/2006
Name of responsible person/entity:

PricewaterhouseCoopers (not a Project Participant)
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:

>>
24/11/2005 being the date of placement of purchase order for the first project in the bundle.
C.1.2. Expected operational lifetime of the project activity:

>>
20 years
page 28
C.2 Choice of the crediting period and related information:
C.2.1. Renewable crediting period
C.2.1.1. Starting date of the first crediting period:

>>
C.2.1.2. Length of the first crediting period:

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

>>
1/04/2007, being the expected date of registration of Project.
C.2.2.2. Length:
>>
10 years
SECTION D. Environmental impacts

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

impacts:
>>
Enercon appointed Aditya Environmental Services Private Limited to conduct rapid environmental
impact assessment study to assess the impact of the project on the local environment.
Environmental Impact Assessment (EIA) of this project is not an essential regulatory requirement, as it is
not covered under the categories as described in EIA Notification of 1994 or the Amended Notification of
2006. However, Enercon conducted the EIA to study impacts on the environment resulting from the
project activity.
The EIA study included identification, prediction and evaluation of potential impacts of the CDM
activities on air, water, noise, land, biological and socioeconomic environment within the study area. The
ambient air concentrations of Suspended Particulate Matter, Respirable Particulate Matter, Oxides of
Nitrogen, Sulphur dioxide and Carbon Monoxide were monitored and were found under limits as
specified by CPCB. The noise levels were observed through out the study period and were found to be in
the permissible range. Water quality monitoring studies were carried out for determination of physico-
chemical characteristics of bore wells. The ph level of water was found to be under the specified limits.
The study area represents part of Jaisalmer district, which is part of the Thar desert. The terrain is rough
comprising sandy or stony wasteland & is very sparsely populated. The windfarm is located in the mist of
the Indian ‘Thar’ Desert and does not come in the path of the migratory birds. There is no wild life or
forestland near the project sites.
page 29
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:
>>
EIA demonstrated that there is no major impact on the environment due to the installation and operation
of the windmills. The desert ecology is not likely to get impacted by this type of project activity. The
local population confirmed that there is no noise or dust nuisance due to windmills. The EIA also ruled
out any adverse impacts due to the project activity.
SECTION E. Stakeholders’ comments

>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
The comments from local stakeholders were invited through a local stakeholder meeting conducted at
Gorbandh Palace, Jaisalmer on 18 September 2006. A local newspaper advertisement was placed in
Rajasthan Patrica on 5th September 2006 inviting the local stakeholders for the meeting.
The local stakeholder consultation meeting had representatives from the nearby villages, representatives
of Enercon and representative of Aditya Environmental Services (consultant to Enercon). The minutes of
the meeting are set out in Appendix 2.
E.2. Summary of the comments received:

>>
The comments from local villagers included:
• The nature of benefits that local stakeholders will get
• Impact on the grazing of local cattle
• Impact on any migratory patterns of birds or fauna
• Impact on water availability; distance of the tube wells from the Project site
• Addressing safety issues by Enercon, incidence of accidents
• Noise disturbance
• Provision of a school for education of children
• Provision of opportunities for women
E.3. Report on how due account was taken of any comments received:
>>
Enercon provided the following responses in relation to the comments received from the local
stakeholders:
• The benefits to the local stakeholders will be through employment opportunities provided by the
project in terms of small shops and construction workers. It will also lead to better connectivity to
nearby towns.
• The project does not affect the grazing by the cattle. Enercon does not use any kind for boundary wall
to protect their machines and hence the accessibility of cattle to areas for grazing and drinking water
is not affected.
• The Project does not fall under migratory patterns of the birds.
page 30
• Project has improved the availability of water, which can also be accessed from project site. The tube
wells are located at a distance of 3 Km from project site which the people daily access.
• Enercon has appropriate protocols are in place to take care of all the safety issues. No incidence of
accident has occurred.
• No noise disturbances have been observed so far and local inhabitation is far away from the project
site.
• A school was reconstructed by Enercon India Limited in police lane in Jaisalmer, Rajasthan in 2004 –
05. Enercon will bear in mind the requirement of school in the village and opportunities for women
in the village when it undertakes further developmental work.
The local stakeholders were satisfied with the explanations provided during the meeting.
page 31
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: Enercon (India) Limited

Street/P.O.Box: Kolsite House, Plot No. 31, Shah Industrial Estate, Veera Desai Road, Andheri
(West)
Building:
City: Mumbai
State/Region: Maharashtra
Postfix/ZIP: 400 053
Country: India
Telephone: +91-22-5522 7794
FAX: +91-22-5692 1175
E-Mail: a.raghavan@enerconindia.net
URL:
Represented by:
Title: Associate Vice President
Salutation: Mr.
Last Name: Raghavan
Middle Name:
First Name: A
Department: Corporate
Mobile: +91-98200 45724
Direct FAX: +91-22-5692 1175
Direct tel: +91-22-5522 7794
Personal E-Mail: a.raghavan@enerconindia.net
Organization: Japan Carbon Finance, Ltd.

Street/P.O.Box: 6th Floor, 1-3 Kundankita, 4-chrome
Building: Chiyoda-ku
City: Tokyo
State/Region:
Postfix/ZIP: 102-0073
Country: Japan
Telephone: +81 3 5212 8870
FAX: +81 3 5212 8886
E-Mail: jcf@jcarbon.co.jp
URL: http://www.japancarbon.co.jp/
Represented by:
Title: Director General
Salutation: Mr.
Last Name: Ari
Middle Name:
First Name: Masato
Department: Carbon Finance Department
page 32
Mobile:
Direct FAX: +81 3 5212 8886
Direct tel: +81 3 5212 8878
Personal E-Mail: m-ari@jcarbon.co.jp
page 33
Annex 2
INFORMATION REGARDING PUBLIC FUNDING

page 34
Annex 3
BASELINE INFORMATION
Emission Coefficients
2004-2005
Fraction of Emission
Net Calorific Carbon
Carbon Coefficient
Value (TJ/ 103 Emission
Type of FUEL Oxidised (tCO2/ 103
tonnes or Factor (t C/
Oxidation tonnes or
TJ/Mcum) TJ )
Factor tCO2/Mcum)
Steam stations
Coal 15.72 26.13 0.98 1,476
Furnace oil 43.68 21.10 0.99 3,346
Light oil 43.00 20.00 0.99 3,122
LSHS/HHS/HSD 43.64 20.20 0.99 3,200
GAS 34.12 15.30 1.00 1,905
Lignite 11.40 28.95 0.98 1,186
Gas Stations
Natural Gas 34.12 15.30 1.00 1,905
HSD 42.71 20.20 0.99 3,131
Naphtha 46.89 20.00 0.99 3,404
Diesel Stations
LSHS 43.64 20.20 0.99 3,200
Diesel 43.00 20.20 0.99 3,153
2003-2004
Carbon Coefficient
Oxidation tonnes or
TJ/Mcum) TJ )
Factor tCO2/Mcum)
Steam stations
Coal 15.99 26.13 0.98 1,502
Furnace oil 43.40 21.10 0.99 3,324
Light oil 42.65 20.00 0.99 3,096
LSHS/HHS/HSD 43.13 20.20 0.99 3,163
GAS 34.12 15.30 1.00 1,905
Lignite 11.46 28.95 0.98 1,192
Gas Stations
Natural Gas 34.12 15.30 1.00 1,905
HSD 42.71 20.20 0.99 3,131
Naphtha 46.89 20.00 0.99 3,404
Diesel Stations
LSHS 43.13 20.20 0.99 3,163
Diesel 42.65 20.20 0.99 3,127
page 35
2002-2003
Carbon Coefficient
Oxidation tonnes or
TJ/Mcum) TJ )
Factor tCO2/Mcum)
Steam stations
Coal 17.46 26.13 0.98 1,640
Furnace oil 44.91 21.10 0.99 3,440
Light oil 40.86 20.00 0.99 2,967
LSHS/HHS/HSD 44.06 20.20 0.99 3,231
GAS 34.12 15.30 1.00 1,905
Lignite 11.25 28.95 0.98 1,170
Gas Stations
Natural Gas 34.12 15.30 1.00 1,905
HSD 42.71 20.20 0.99 3,131
Naphtha 46.89 20.00 0.99 3,404
Diesel Stations
LSHS 44.06 20.20 0.99 3,231
Diesel 40.86 20.20 0.99 2,996
page 36
Operating Margin for Northern Region
Fuel Units 2004-05 2003-04 2002-03

Fuel Emissions Fuel Emissions Fuel Emissions
consumption (tCO2) consumption (tCO2) consumption (tCO2)
Steam stations
Coal '000' MT 72,943 107,674,458 70,085 105,246,478 68,594 112,472,267
Furnace oil KL 26,071 81,119 43,377 134,086 57,666 184,464
Light oil KL 94,208 243,211 254,855 652,561 60,211 147,724
LSHS/HHS/HSD KL 3,126 8,272 2,377 6,217 32,761 87,535
GAS MT - - - - - -
Lignite '000' MT - - - - - -
Gas Stations
Natural Gas M Cu M 4,058 7,729,258 3,808 7,253,084 3,953 7,529,265
HSD KL 275,047 712,283 240,593 623,059 401,257 1,039,127
Naphtha KL 243,961 631,206 188,981 488,955 - -
Diesel Stations
LSHS KL - - - - - -
Diesel KL - - - - - -
Electricity Emissions Electricity Emissions Electricity Emissions
Units
Grid imports import (tCO2) import (tCO2) import (tCO2)
From region
Western Region GWh 374 345,000 175 164,242 43 51,472
Eastern Region GWh 3,043 3,375,957 125 144,143 827 1,050,177
Southern Region GWh 120 97,941
North-eastern
Region GWh 172 55,058
Total emissions 3,709 120,953,763 114,712,824 122,562,031
Net electricity
Units 2004-05 2003-04 2002-03
generation
Steam stations GWh 96,404 94,041 91,523
Gas stations GWh 19,516 18,328 16,852
Diesel stations GWh
Grid imports GWh 3,709 301 870
Total GWh 119,630 112,669 109,245
Units 2004-05 2003-04 2002-03

Operating Margin tCO2/GWh 1,011.07 1,018.14 1,121.90
page 37
Average Emission Rate of Western Grid
Fuel Units 2004-05 2003-04 2002-03

Emissions Emissions Emissions
Cons Cons Cons
(tCO2) (tCO2) (tCO2)
Steam stations
Coal '000' MT 94,123 138,939,213 89,075 133,763,716 91,350 149,784,844
Furnace oil KL 1,066,231 3,317,529 1,187,213 3,669,883 135,786 434,357
Light oil KL 10,028 25,889 10,685 27,359 46,383 113,798
LSHS/HHS/HSD KL 574,238 1,519,604 423,797 1,108,473 2,006,346 5,360,834
GAS MT 39,012 74,306 33,884 64,539 204,166 388,874
Lignite '000' MT 2,609 3,095,348 2,560 3,051,709 19,311 22,591,188

Gas Stations
Natural Gas M Cu M 4,667 8,889,218 3,721 7,087,375 3,505 6,675,961
HSD KL 1,625 4,208 2,767 7,166 697,009 1,805,029
Naphtha KL 776,908 2,010,111 1,082,436 2,800,610 426,280 1,102,924

Diesel Stations
LSHS KL - - - - -
Diesel KL - - - - -
Total 157,875,426 151,580,830 188,257,809
Net Grid Generations GWh 171,027 161,528 158,333
Average Emission tCO2e/G

Rate Wh 923.10 938.42 1,189.00
page 38
Average Emission Rate of Eastern Grid
Fuel Units 2004-05 2003-04 2002-03

Cons Cons Cons
Steam stations
Coal '000' MT 58,372 86,165,546 53,212 79,908,334 45,146 74,025,031
Furnace oil KL 54,976 171,055 78,230 241,823 52,510 167,971
Light oil KL 121,186 312,858 170,917 437,636 98,608 241,928
LSHS/HHS/HSD KL - - - - - -
GAS MT - - - - - -
Lignite '000' MT - - - - - -
Gas Stations
Natural Gas M Cu M - - - - - -
HSD KL - - 2,596 6,723 3,423 8,864
Naphtha KL - - - - - -
Diesel Stations
LSHS KL 219 580 - - - -
Diesel KL 29,880 77,911 38,881 100,551 14,847 36,790
Total 86,727,950 80,695,067 74,480,585
Average Emission Rate tCO2e/GWh 1,109.57 1,148.64 1,269.86

page 39
Average Emission Rate of North – Eastern Grid
Fuel Units 2004-05 2003-04 2002-03

Cons Cons Cons
Steam stations
Coal '000' MT
Furnace oil KL
Light oil KL
LSHS/HHS/HSD KL
GAS MT
Lignite '000' MT
Gas Stations
Natural Gas M Cu M 1,309 2,493,248 1,246 2,373,252 930 1,771,368

HSD KL
Naphtha KL
Diesel Stations
LSHS KL
Diesel KL 353 920 3,431 8,873 4,948 12,261
Total 2,494,168 2,382,125 1,783,629
Average Emission Rate tCO2e/GWh 319.20 362.63 336.05

page 40
Average Emission Rate of Southern Grid
Fuel Units 2004-05 2003-04 2002-03

Cons Cons Cons
Steam stations
Coal 000MT 53,144 78,448,259 52,985 79,567,449 65,997 108,214,016
Furnace oil KL 45,848 142,654 56,498 174,645 115,914 370,790
Light oil KL 24,330 62,811 33,031 84,577 8,407 20,626
LSHS/HHS/HSD KL 2,612 6,912 5,310 13,889 6,093 16,280

GAS KL -
Lignite 000MT 22,121 26,244,612 20,755 24,741,489 17,738 20,750,996

Gas Stations
Natural Gas M Cu M 2,203 4,196,046 2,010 3,828,440 3,130 5,961,700
HSD KL 81,254 210,422 226,981 587,808 275,122 712,478
Naphtha KL 289,451 748,903 719,694 1,862,080 485,496 1,256,134

Diesel Stations
LSHS KL 465,220 1,231,110 647,451 1,693,457 - -
Diesel KL 63,039 164,371 14,903 38,541 865,938 2,145,766
Total 111,456,100 112,592,373 139,448,786
Average Emission Rate tCO2e/GWh 813.40 867.00 1,108.23

page 41
Build Margin Emission Factor for Northern Grid
Date of Gross Aux Net supply Emission factor Total

Name of the plant State
addition Gen Cons to grid (tCO2/GWh) tCO2
GWh % GWh (for 2004-05)
Hydro
Nathpa Jhakri HEP - 1 Himachal 31-Mar-04 852 0.50% 847
Nathpa Jhakri HEP - 2 Himachal 9-Mar-04 852 0.50% 847
Chamera HEP II - 3 Himachal 26-Feb-04 449 0.50% 447
Nathpa Jhakri HEP - 3 Himachal 13-Feb-04 852 0.50% 847
Nathpa Jhakri HEP - 4 Himachal 22-Jan-04 852 0.50% 847
Chamera HEP II - 2 Himachal 5-Dec-03 449 0.50% 447
Nathpa Jhakri HEP - 5 Himachal 23-Nov-03 852 0.50% 847
Chamera HEP II - 1 Himachal 4-Nov-03 449 0.50% 447
Nathpa Jhakri HEP - 6 Himachal 20-Sep-03 852 0.50% 847
Baspa -II - 3 Himachal 27-May-03 398 0.50% 396
Baspa -II - 2 Himachal 8-Feb-03 398 0.50% 396
Baspa -II - 1 Himachal 24-Jan-03 398 0.50% 396
Upper Sindh II - 2 JK 29-Mar-02 49 0.50% 49
Sewa III - 3 JK 19-Mar-02 3 0.50% 3
Sewa III - 1 JK 18-Mar-02 3 0.50% 3
Sewa III - 2 JK 18-Mar-02 3 0.50% 3
Upper Sindh II - 1 JK 11-Sep-01 49 0.50% 49
Malana - 2 Himachal 9-Jul-01 134 0.50% 133
Malana - 1 Himachal 5-Jul-01 134 0.50% 133
Ghanvi - 1 Himachal 7-Dec-00 37 0.50% 37
Ranjait Sagar - 3 Punjab 11-Oct-00 286 0.50% 285
Ranjait Sagar - 4 Punjab 16-Sep-00 286 0.50% 285
Ranjait Sagar - 2 Punjab 20-Aug-00 286 0.50% 285
Ranjait Sagar - 1 Punjab 12-Aug-00 286 0.50% 285
Chenani III - 1 JK 31-Jul-00 6 0.50% 6
Ghanvi - 2 Himachal 30-Jul-00 37 0.50% 37
Upper Sind II - 3 JK 5-Jan-00 49 0.50% 49
Steam
Kota TPS IV - 6 Rajasthan 30-Jul-03 1,470 9.62% 1,329 1,099 1,459,784
Suratgarh III - 5 Rajasthan 30-Jun-03 1,955 9.22% 1,775 1,028 1,824,857
Suratgarh TPS - 4 Rajasthan 25-Mar-02 1,951 9.22% 1,771 1,028 1,821,124
Suratgarh TPS - 3 Rajasthan 29-Oct-01 1,876 9.22% 1,703 1,028 1,751,116
Panipat TPS St IV - 6 Haryana 31-Mar-01 1,482 10.34% 1,329 1,375 1,826,599
Suratgarh - 2 Rajsthan 28-Mar-00 1,704 9.22% 1,547 1,028 1,590,566
Unchahar TPP - 4 UP 22-Oct-99 1,748 8.57% 1,598 1,096 1,751,911
Unchahar TPP - 3 UP 27-Jan-99 1,690 8.57% 1,545 1,096 1,693,781
page 42
Date of Gross Aux Net supply Emission factor Total

Name of the plant State
addition Gen Cons to grid (tCO2/GWh) tCO2
GWh % GWh (for 2004-05)
GHTP Bhatinda - 2 Punjab 16-Oct-98 1,536 11.24% 1,363 980 1,336,723

Wind
All wind power projects
in the region Rajasthan 31-Mar-05 332 0.00% 332
Gas
Pragati CCGT - 3 Delhi 31-Jan-03 936 2.34% 914 446 407,293
Pragati CCGT - 2 Delhi 9-Nov-02 808 2.34% 789 446 351,509
Ramgarh CCGT Stg II -
2 Rajasthan 24-Aug-02 120 7.21% 111 446 49,447
Ramgarh CCGT Stg II -
1 Rajasthan 7-Aug-02 119 7.21% 110 446 49,054
Pragati CCGT - 1 Delhi 15-Mar-02 808 2.34% 789 446 351,509
Faridabad CCGT Haryana 31-Jul-00 1,059 2.28% 1,035 446 461,205
Faridabad CCGT - 2 Haryana 18-Oct-99 1,052 2.28% 1,028 446 458,002
Faridabad CCGT - 1 Haryana 28-Jun-99 1,052 2.28% 1,028 446 458,002
Nuclear
Rajasthan Atomic PP - 4 Rajasthan 23-Dec-00 1,649 10.50% 1,476
Rajasthan APS - 3 Rajasthan 10-Mar-00 1,470 10.50% 1,316
Total 34,125 32,150 17,642,481
Test of Build Margin Sampling

Net Generation from five most recent plants 3,836 GWh
Net
Total Net Electricity Generation for NR grid (2004-05) 158,836 GWh
Total Net Electricity Generation from power plants added to the
system 32,150 GWh
of the total grid generation 20.24%
Therefore the power plants as per table above have been considered in
Build Margin calculations
tCO2/GW
Build Margin 548.76 h
page 43
Combined Margin for Northern Grid
Northern Grid
(tCO2e/GWh)
Simple Operating Margin - 2002-03 1,122
Average Operating Margin of last three years 1,050
Northern Grid
(tCO2e/GWh)
Build Margin 549
Northern Grid
Combined Margin for Wind Power Plants (tCO2e/GWh)
Weights
Operating Margin 0.75 1,050
Build Margin 0.25 549
Combined Margin 924.96
page 44
Annex 4
MONITORING INFORMATION
• The electricity supplied to the grid will be metered at the 33/132/220 kV level at the RRVPN
substation at Amarsagar. Representatives of RRVPN/Jodhpur Discom and Enercon will jointly take
the main reading and sign the meter reading on the first day of every month. Simultaneously, the
joint meter reading at the 33/132/220 kV level of the backup metering system at Temderai substation
will also be taken by representatives of RRVPN/Jodhpur Discom and Enercon.
• The meters will jointly inspected/tested once in a year as per the terms of the PPA. Joint inspection
and testing will also be carried out as and when difference in monthly meter readings exceeds the sum
of maximum error as per accuracy class of main and back up meters.
• In case the meters are found to operate outside the permissible limits, the meters will be either
replaced immediately or calibrated. Error correction will be applied to the meter reading. Whenever
a main meter goes defective, the consumption recorded by the backup meter will be referred. The
details of the malfunctioning along with date and time and snaps shot parameters along with load
survey will be retrieved from the main meter. The exact nature of the malfunctioning will be
determined after analyzing the data so retrieved and the consumption recorded by the main meter will
be assessed accordingly.
• If main as well as back up metering system becomes defective, the assessment of energy consumption
for the outage period will be done from the backup meters by the concerned parties as mutually
agreed or at the level of Metering Committee set up under the Metering Code.
• The main and the backup metering systems will be sealed in presence of representatives of Enercon
and RRVPN/Jodhpur Discom.
page 45
Appendix 1 – Location Map

page 46
Appendix 2 – Minutes of stakeholder consultation meeting
Public Consultation Meeting for Wind Energy Projects at Clean Development Mechanism
Project of Enercon (India) Limited. situated at Kita. Bhu, Sodabhandhan ,Temderai(Phase I,
PhaseII and PhaseIII), Asloi, Jodha, Korwa and Badabagh in Jaisalmer,Rajasthan
Jaisalmer, District Rajasthan, India
MINUTES OF THE MEETING
Venue: Gorbandh Palace, Jaisalmer Date: 18 Sep 2006
The people participated are the following:
Representatives:
Representatives from the Village:
Shri. Rahim Singh
Shri. Punam Singh
Shri Kishan Singh
The list of all other people from the villages is annexed.
Enercon (India) Limited:
Mr. Anupam Mathur
Mr. Rajendra Vyas
Mr. Rakesh Chhangani
Mr. Dilip Sharma
Mr. Neeraj Gupta
Aditya Environmental Services Pvt. Ltd.
Mr. Gurmeet Singh
Mr. Anupam Mathur invited Mr. Punam Singh, Ex- Sarpanch to chair the meeting.
The agenda of the meeting is fixed as follows:

Welcome
Description of the project details
Queries and responses from the proponent and the stakeholders
Vote of thanks
WELCOME ADDRESS
Mr. Dilip Sharma, Security and Liasoning person from Enercon India Limited welcomed all
the people who came to take part in the meeting. There were more than 20 people from all the
villages that fall in the vicinity of the project sites.
Description of the Project Details.

The present stakeholder consultation is for 60 MW of Enercon Wind Farm Hindustan Limited
and for 82.74 MW of the customer projects out of which 47.01 MW has been finalized and the
rest 35.73 MW is in the process to be considered. Some the projects will also come up in
addition to the finalised projects for CDM.
The Knowledge of the wind farm was communicated to the local people in the local language.
The wind farm projects falls in the category of the renewable energy. The meaning of the
renewable energy was explained. The sites where the projects are located have no commercial
activity and is a waste land.
The best use of land is made through the project which otherwise was barren. Improved supply
of electricity to the grid, and employment opportunities to local people. He explained function
advantages of the windmill to the people. Self reliance on using renewable energy sources is
page 47
observed in Jaisalmer.
The comparison between the wind farm projects and other alternatives is drawn in order to
convey the advantages that wind power possess over other alternatives. The sites are located
near Badabagh, Sodabandhan, Korwa, Asloi, Bhu, Temderai (Phase I, Phase II and Phase III)
and Kita.
In addition several other support services augmented by Enercon to local people in terms of
transportation, mid –day meals to school children, renovation of Temedarai temple etc. as its
social community initiatives.
SPEECH BY MR. PUNAM SINGH

The chairperson of the meeting briefed the advantages of the wind farm. The project has
provided the employment opportunities to the local people as the result of which the income of
the people have increased. He also praised Enercon India Limited for investing in district of
Jaisalmer.
Mr. Rahim Singh (BHU Sarpanch)
The villagers in this part of the state are very backward but the times are changing with
coming up of the wind farm projects of the Enercon India Limited. The project has provided
the employment opportunities to the people. Security, drivers and labour people are selected
among the local villagers.
Mr. Gurmeet Singh, Aditya Environmental Services briefed the environmental benefits of
wind power generation as compared to that of thermal power generation based on coal.
Similarly, a briefing on GHG and its role in global warming / increasing temperatures on the
earth was given. The benefits in terms of pollution free environment and safeguard to human
health were also communicated to the stakeholders while comparing coal-based generation to
wind based generation. The Government of Rajasthan is also encouraging the development of
renewable energy. Summary on Kyoto Protocol and CDM were made available.
The concerns, suggestions, opinions of the stakeholders have been specially invited. The
participants expressed the queries as given below. The representatives from ENERCON
clarified them as given below.
Queries Responses
1. What are the benefits of the wind power The project has provided the people with the
projects the stakeholders have observed? employment opportunities. The project has given
jobs and economic opportunities in terms of small
shops and construction workers. The
transportation facilities has improved and has
increased their accessibility to the near by town.
2. Has the project affected the grazing of No, the project does not affect the grazing by the
local cattle? cattle. Enercon India Limited does not use any
kind for boundary wall to protect their machines
and hence the accessibility of cattle to areas for
grazing and drinking water is not affected.
3. Has the project affected any migratory The project does not fall under migratory patterns
patterns of birds or fauna? of the birds. The major birds migrating in the
region, but away from project site are “ Gatta”,
Tilor, and Solan, which usually take their path
page 48
away from the project site.

4. Has the project affected the water The project has improved the availability of water,
availability? How far are the tube wells which can also be accessed from project site. The
located from the site? tube wells are located at a distance of 3 Km from
project site which the people daily access.
5. During construction and erection has any As to date no incidence of accident has occurred.
incident of accident or damage occurred?
6. Do Enercon take care of safety issues? The Enercon India Limited takes care about the
safety issues. Appropriate protocols are in place to
take care of all the safety issues.
7. Have you observed any noise No noise disturbances have been so far. Local
disturbances from the project during inhabitation is far away from the project site.
construction and operation of the project
has occurred by the local people?
Women Representative
The women representative asked if school could be provided for the education of the children. The school
can provide the much need education to the children. Also, women should be provided with the good
opportunities.
Vote of thanks
Mr. Dilip Sharma thanked all the people for sparing their time for this meeting and requested them to
continue their support towards the projects of Enercon India Limited. The representatives of the villages
and also the local population represented their happiness towards Enercon India Limited.
PROJECT DESIGN DOCUMENT FORM (PDD)
page 1
CONTENTS
Annexes

page 2

>>
Title: Bundled wind energy generation projects in Gujarat, India
Version: 4.0
Date: 22/05/2007

>>
Objective of the Projects
The objective of the Projects is development, design, engineering, procurement, finance, construction,
operation and maintenance of wind power projects in the Indian state of Gujarat to provide reliable,
renewable power to the Gujarat state electricity grid and the Western regional electricity grid. The energy
supplied to the grid is drawn at the destination for the captive consumption. The wheeling of the
electricity from the generating source to the destination for self consumption (captive consumption) is
guided by the wheeling and banking arrangement. The Projects will lead to reduced greenhouse gas
emissions because they displace electricity from fossil fuel based electricity generation plants.
Nature of Projects
The Projects harness renewable resources in the region, and thereby displacing non-renewable natural
resources thereby ultimately leading to sustainable economic and environmental development.
The 59.4 MW bundled Project comprises 3 numbers of 600 kW E-40 and 72 numbers of 800 kW E-48
Enercon-make wind energy converters. Enercon (India) Ltd (EIL) is the equipment supplier and the
operations and maintenance contractor for the Projects. All the projects in this bundle of Gujarat are
captive wind power projects. All the projects are connected to the Gujarat state electricity grid. The
details of the Projects are provided below:
Table 1 : Details of the Projects
Name of Name of M/C Model Year of

Sr.No. Name of Customer Total MW
Site State E-40 E-48 Commissioning
1 Desai Textiles Navadra Gujarat 1 0.60 Jun-04
2 Rivaa Textiles Ltd Navadra Gujarat 2 1.20 Aug-04
3 Dinesh Mills Bamnasa Gujarat 5 4.00 Mar-05
4 Gujarat Guardian Ltd. Bamnasa Gujarat 13 10.40 Mar-05
5 Gujarat Guardian Ltd. Bamnasa Gujarat 1 0.80 Jul-05
6 Shreeji Prints Pvt. Ltd. Bamnasa Gujarat 2 1.60 Aug-05
7 Rachana Art Prints Pvt. Ltd. Bamnasa Gujarat 1 0.80 Aug-05
8 Kanishka Prints P. Ltd. Bamnasa Gujarat 1 0.80 Aug-05
9 Rajshanti Metals Pvt Ltd Kuranga Gujarat 1 0.80 Nov-05
10 Prabhat Elastomers P. Ltd. Kuranga Gujarat 2 1.60 Nov-05
11 Ahmedabad Strips P. Ltd. Kuranga Gujarat 1 0.80 Dec-05
page 3
12 Austin Engineering Co Ltd Kuranga Gujarat 1 0.80 Dec-05

13 Indo Fashions Pvt. Ltd. Kuranga Gujarat 1 0.80 Dec-05
14 Inova Cast Pvt Ltd Kuranga Gujarat 1 0.80 Dec-05
15 Nawaz Silk Mill Kuranga Gujarat 1 0.80 Dec-05
16 Rajhans Metals Pvt Ltd Kuranga Gujarat 1 0.80 Dec-05
17 Surbhi Industries Ltd. Kuranga Gujarat 1 0.80 Dec-05
18 Eagle Fibres P. Ltd. Kuranga Gujarat 1 0.80 Feb-06
19 Ravikan Ceramics Pvt. Ltd. Navadra Gujarat 1 0.80 Mar-06
20 Manish Packaging P. Ltd. Kuranga Gujarat 1 0.80 Mar-06
21 Unique Tags Private Limited Navadra Gujarat 1 0.80 Mar-06
22 Jagdish Technocast Pvt. Ltd. Navadra Gujarat 1 0.80 Mar-06
23 Excel Crop Care Limited Navadra Gujarat 1 0.80 Mar-06
24 Bhavani Industries Navadra Gujarat 1 0.80 Mar-06
25 Shree Sai Calnates India (P) Ltd. Navadra Gujarat 1 0.8 Mar-06
26 Shilp Gravures Ltd. Navadra Gujarat 1 0.80 Mar-06
27 Empilon Fabrics P. Ltd. Navadra Gujarat 1 0.80 Mar-06
28 Leamak Healthcare P. Ltd. Navadra Gujarat 1 0.80 Mar-06
29 Jayant Agro-Organics Limited Navadra Gujarat 2 1.60 Mar-06
30 Gujarat Guardian Ltd. Kurunga Gujarat 7 5.60 Aug-06
31 Madhusudan Special Solutions Satapar Gujarat 1 0.80 Sep-06
32 Echjay Industries P. Ltd. Satapar Gujarat 6 4.80 Sep-06
33 Gujarat Guardian Ltd. Satapar Gujarat 8 6.40 Sep-06
34 Mascot Forge Pvt. Ltd. Satapar Gujarat 1 0.80 Sep-06
35 Sayaji Iron & Engineering Co. Satapar Gujarat 1 0.80 Sep-06
36 Zydex Industries Satapar Gujarat 1 0.80 Sep-06
37 Transmetal Limited Navadara Gujarat 1 0.80 Mar-06
Total 3 72 59.40

The Projects meet several sustainable development objectives including:
• contribution towards the policy objectives of Government of India and Government of Gujarat of
• contribution towards meeting the electricity deficit in Gujarat;
• expansion and diversification in the fuel mix of the Gujarat sector that is susceptible to variation in
hydrology;
technology;
• contribution to improved service delivery to a limited extent;
page 4
• improvement in the micro-economic efficiency of the sector through various innovations

incorporated in the project activity;
• conserving natural resources including land, forests, minerals, water and ecosystems;
• building capacity and empowerment of vulnerable sections of the rural communities in the vicinity of
the project; and
• increasing income security of vulnerable sections of the society through redistribution benefits on
account of the economic activities associated with the project.

>>

>>
The Projects are located in Western electricity grid region in the state of Gujarat. The Projects are
located in the Jamnagar district.

>>
Please see location details in A.3.1.3 below.

>>
Table – 2: Details of Physical Location
Sr.No. Name of Customer Name of Site Name of State Unique Identification
1 Desai Textiles Navadra Gujarat W3

2 Rivaa Textiles Ltd Navadra Gujarat EN/600/04-05/009-010
3 Dinesh Mills Bamnasa Gujarat EN/800/04-05/0042-0046
4 Gujarat Guardian Ltd. Bamnasa Gujarat EIL/800/04-05/0029-0041
5 Gujarat Guardian Ltd. Bamnasa Gujarat EIL/800/05-06/0063
6 Shreeji Prints Pvt. Ltd. Bamnasa Gujarat EIL/800/05-06/0064-0065
7 Rachana Art Prints Pvt. Ltd. Bamnasa Gujarat EIL/800/05-06/0066
8 Kanishka Prints P. Ltd. Bamnasa Gujarat EIL/800/05-06/0067
9 Rajshanti Metals Pvt Ltd Kuranga Gujarat EIL/800/05-06/0078
10 Prabhat Elastomers P. Ltd. Kuranga Gujarat EIL/800/05-06/0072-0073
page 5
11 Ahmedabad Strips P. Ltd. Kuranga Gujarat EIL/800/05-06/0080

12 Austin Engineering Co Ltd Kuranga Gujarat EIL/800/05-06/0090
13 Indo Fashions Pvt. Ltd. Kuranga Gujarat EIL/800/05-06/0086
14 Inova Cast Pvt Ltd Kuranga Gujarat EIL/800/05-06/0091
15 Nawaz Silk Mill Kuranga Gujarat EIL/800/05-06/0084
16 Rajhans Metals Pvt Ltd Kuranga Gujarat EIL/800/05-06/0088
17 Surbhi Industries Ltd. Kuranga Gujarat EIL/800/05-06/0085
18 Eagle Fibres P. Ltd. Kuranga Gujarat EIL/800/05-06/0107
19 Ravikan Ceramics Pvt. Ltd. Navadra Gujarat EIL/800/05-06/0122
20 Manish Packaging P. Ltd. Kuranga Gujarat EIL/800/05-06/0122
21 Unique Tags Private Limited Navadra Gujarat EIL/800/05-06/0102
22 Jagdish Technocast Pvt. Ltd. Navadra Gujarat EIL/800/05-06/0104
23 Excel Crop Care Limited Navadra Gujarat EIL/800/05-06/0106
24 Bhavani Industries Navadra Gujarat EIL/800/05-06/0103
25 Shree Sai Calnates India (P) Ltd. Navadra Gujarat EIL/800/05-06/0108
26 Shilp Gravures Ltd. Navadra Gujarat EIL/800/05-06/0119
27 Empilon Fabrics P. Ltd. Navadra Gujarat EIL/800/05-06/0121
28 Leamak Healthcare P. Ltd. Navadra Gujarat EIL/800/05-06/0120
29 Jayant Agro-Organics Limited Navadra Gujarat EIL/800/05-06/0110-0111
30 Gujarat Guardian Ltd. Kurunga Gujarat EIL/800/06-07/0070-0076
31 Madhusudan Special Solutions Satapar Gujarat EIL/800/06-07/0160
32 Echjay Industries P. Ltd. Satapar Gujarat EIL/800/06-07/0162-0167
33 Gujarat Guardian Ltd. Satapar Gujarat EIL/800/06-07/0181-0188
34 Mascot Forge Pvt. Ltd. Satapar Gujarat EIL/800/06-07/0168
35 Sayaji Iron & Engineering Co. Satapar Gujarat EIL/800/06-07/0169
36 Zydex Industries Satapar Gujarat EIL/800/06-07/0189
37 Transmetal Limited Navadara Gujarat EIL/800/05-06/0105

>>
renewable sources).

>>
The Projects involve Enercon made 600 kW E-40 and 800 kW E-48 rated wind energy converters
(WECs) with internal electrical lines connecting the Projects with local evacuation facility. The WECs
generates 3-phase power at 400V, which is stepped up to 33 KV. The wind farms operate as base load
page 6
units and can operate in the frequency range of 47.5–51.5 Hz and in the voltage range of 400 V ± 12.5%.
The other salient features of the state-of-art-technology are:
• Variable Speed function ensuring optimum efficiency at all times. Having speed range of 18 to 33
RPM.
manufactured. Moreover, Enercon India Limited has acquired capabilities to export synchronous
generators and blades of the wind turbines, is recognized as an export house by the Government of India
and has successfully exported wind turbines to Australia.
>>
Crediting Period for the Projects: 01/06/2004 to 31/12/2006
Years Annual estimation of emission reductions in tonnes of

CO2e
2004 992
2005 24,152
2006 68,155
Total estimated reductions (tonnes of CO2e) 93,299

>>
project activity:
>>
page 7
activity:
>>
The Projects are wind based renewable energy source, zero emission power project connected to the
Gujarat state grid, which forms part of the Western regional electricity grid. The Projects will displace
expansion of the fossil fuel based power plants in Western regional electricity grid. The power generated
is fed to the grid and is wheeled to the industry for captive consumption. The projects are guided by the
wheeling arrangement for wheeling the electricity from the generating source to the destination for
captive consumption.
• the Projects are grid connected renewable power generation project activities where in the energy
generated is wheeled to the destination for captive consumption.
• the Projects represent electricity capacity additions from wind sources
• the Projects do not involve switching from fossil fuel to renewable energy at the site of project
activity since the Projects are green-field electricity generation capacities from wind sources at sites
where there was no electricity generation source prior to the Projects
• the geographical and system boundaries of the Western electricity grid can be clearly identified and
>>
The project boundary encompasses the physical, geographical site of the Projects sited at the Project
Location. It would include the wind turbine installations and pooling sub-stations up to the Metering
Points.
page 8
Projects. As the Projects are connected to the Western regional electricity grid, the Western grid is the
Source Gas Included? Justifcation/ Explanation

the Western Grid estimated for wind energy projects
under ACM0002
Baseline

under ACM0002
Activity
Project
the Projects CH4 Excluded any direct GHG emissions.

N2O Excluded
baseline scenario:
>>
As the Projects do not modify or retrofit an existing generation facility, the baseline scenario is the
delivered to the grid by the Projects.
those that would have occurred in the absence of the project activity:
>>
Common Practice Test
Provision of underlying service or product with the project technology does not exceed 51% in the
defined market area.
Investment in wind energy projects in the State of Gujarat and the Western regional electricity grid are
not mandatory. There are no national or local laws or regulations that require this investment to be
undertaken, i.e., setting up of wind power projects. The setting up of wind energy projects is a voluntary
activity.
page 9
We analyze the extent to which wind energy projects have diffused in the electricity sector in Gujarat. In
2004 – 05, wind electricity generation was 350 GWh1 and the total electricity availability from all the
sourcesd at bus-bar in the state of Gujarat was 53410 GWh2. This works out to 0.65%, showing that
wind energy power generation is insignificant as compared to other power project generation sources in
Gujarat.
Installed capacity of wind energy generation sources stood at 219.9 MW3 as of 31 March 2005.
Clearly, wind power project development in Gujarat is insignificant when compared to the power sector
of Gujarat. Further, wind power project development is substantially dependent on CDM mechanism and
thus is not common practice.
Enforcement of applicable laws and regulations
Local or National Legislation does not require the production of the underlying service or
product with the chosen technology.
Additionally, the Project should not have been undertaken to meet a formal or voluntary target
imposed by government regulation or under agreement with a government agency (e.g. the
auto manufacturers and the EU, where companies agree to meet reduction targets voluntarily
through their industry association).
Carbon credits should not be the by-product from the creation of an ancillary environmental asset
and/or financial instrument (e.g. renewable energy credits).
The emission reductions from the Project must not have been used against any voluntary
corporate emission reduction targets.
Project is not a downstream energy efficiency project in a jurisdiction with a mandatory GHG
emissions cap on upstream electricity generators.
There is no legal and regulatory requirement that mandates the production of energy by the chosen
technology. Investment in wind energy projects in the State of Gujarat and the western regional
electricity grid are not mandatory. There are no national or local laws or regulations that require this
investment to be undertaken, i.e., setting up of wind power projects. The setting up of wind energy
projects is a voluntary activity.
Carbon credits produced are not the by-products from the creation of an ancillary environmental asset.
The emission reductions from the project are not used for against any voluntary corporate emission
reduction targets. India is a Non-Annex-1 and has not yet capped the emission reduction target for any
industry. Hence project is not the down stream energy efficiency project and is not mandated by
jurisdiction
1
Source: Table No. 3.4, CEA General Review 2006
2
3
page 10
The project is not the least cost option for providing the underlying product or service.
Companies shall provide calculations that illustrate that the project is not the Least Cost Option.
The cost of generation from the various options available to the investors is complied in the table given
below. The cost of each of the categories is compared against the cost of generation form the wind power
projects which is considerably higher. Gujarat electricity regulatory commission has given the tariff
based on cost of generation at Rs. 3.37, which is considerably higher than the cost of generation listed in
the table below (Data for the cost of generation has been compiled from the tariff order of Gujarat State
Electricity Corporation Limited (GSECL) dated 31st March 2007). Hence we can state from the above
analysis that wind energy is not the least cost option for the off takers of electricity.
Annual Total
Net Fixed Cost Variable
Fixed Cost Per
Sl.No. Station Generation Per Unit Charges
Charges Unit
(MU) (Rs. Lakhs) (Rs./Kwh) Rs./kWh. Rs./Unit
Thermal
1 Ukai TPS 4,744 17,248 0.36 1.47 1.83
2 Gandhinagar 1-4 3,340 18,621 0.56 1.65 2.21
3 Gandhinagar –5 1,481 7,780 0.53 1.46 1.99
4 Wanakbori 1-6 8,135 29,557 0.36 1.65 2.01
5 Wanakbori – 7 1,481 7,843 0.53 1.63 2.16
6 Sikka 1,408 9,016 0.64 1.99 2.63
7 Lignite Based
8 KLTPS - 1-3 1,157 16,384 1.42 1.07 2.49
9 KLTPS – 4 144 4,250 2.95 1.01 3.96
10 Oil and Gas Based
11 Dhuvaran Oil 1,303 7,852 0.60 3.76 4.36
12 Dhuvaran Gas-1 693 4,433 0.64 2.25 2.89
13 Dhuvaran Gas-2 756 6,255 0.83 2.23 3.06
14 Utran Gas 877 4,476 0.51 1.98 2.49
Hydro
1. Ukai Hydro 525 2659 0.51 0 0.51
2. Kadana Hydro 144 8112 5.63 0 5.63

>>
ERy = BEy – PEy – Ly……………….(1)
1
annually.
page 11
BEy is the baseline emissions

PEy is project activity emissions and;
Ly is the amount of emissions leakage resulting from the project activity.
BEy = EGy * EFy …………………….(2)
below.
As per ACM0002, dispatch data analysis should be the first methodological choice. However, this
option is not selected because the information required to calculate OM based on dispatch data is not
available in the public domain for the Western electricity regional grid.
The Simple Operating Margin approach is appropriate to calculate the Operating Margin emission factor
The generation profile of the Western grid in the last five years is as follows:

Hydro 10,610 9,282 8,172 7,928 7,174
Wind & Renewables 884 1,522 879 610 314
Nuclear 5,100 5,700 6,200 6,073 5,903
Other sources
Coal 141,964 136,063 137,392 133,628 128,561
Diesel - - - - -
Gas 25,526 21,508 18,713 16,072 21,280
page 12
total generation in the Western grid in the last five years. Hence the Simple OM method is appropriate to
plants or the most recent 20% of the generating units built (summation is over such plants specified by
k):
The summation over i and k is for the fuels and electricity generation of the plants in sample m
mentioned above.
represents a significantly larger set of plants for a large regional electricity grid having a large number of
power plants connected to it and is therefore appropriate.
The Central Electricity Authority, Ministry of Power, Government of India has published a database of
Carbon Dioxide Emission from the power sector in India based on detailed authenticated information
obtained from all operating power stations in the country. This database i.e. The CO2 Baseline Database
provides information about the Operating Margin and Build Margin Emission Factors of all the regional
electricity grids in India. The Operating Margin in the CEA database is calculated ex ante using the
Simple OM approach and the Build Margin is calculated ex ante based on 20% most recent capacity
additions in the grid based on net generation as described in ACM0002. We have, therefore, used the
Operating Margin and Build Margin data published in the CEA database, for calculating the Baseline
Emission Factor.
Using the values for operating margin and build margin emission factors provided in the CEA database
and their respective weights for calculation of combined margin emission factor, the baseline carbon
emission factor (CM) is 940.22 tCO2e/GWh or 0.94022 tCO2e/MWh.
Project Emissions:
PEy = 0
Leakage:
page 13
Ly = 0
Data / Parameter: EFOM,y

Data unit: tCO2e/MWh
Description: Operating Margin Emission Factor of Westernal Electricity Grid
Source of data used: “CO2 Baseline Database for Indian Power Sector” published by the Central Electricity
Authority, Ministry of Power, Government of India.
The “CO2 Baseline Database for Indian Power Sector” is available at www.cea.nic.in
Value applied:
2002 – 03 0.9814
2003 – 04 0.9903
2004 – 05 1.0119
of data or description of Operating Margin Emission Factor has been calculated by the Central Electricity
measurement methods Authority using the simple OM approach in accordance with ACM0002.
applied :
Data / Parameter: EFBM,y

Description: Build Margin Emission Factor of Western Electricity Grid
Value applied: 0.7772

of data or description of Build Margin Emission Factor has been calculated by the Central Electricity Authority
measurement methods in accordance with ACM0002.
applied :

>>
See B.6.4 below.

>>
page 14
Year Estimation of Estimation of Estimation of Estimation of

project activity baseline leakage overall emission
emissions emissions (tonnes of CO2e) reductions
(tonnes of CO2e) (tonnes of CO2e) (tonnes of CO2e)
2004 0 992 0 992
2005 0 24,152 0 24,152
2006 0 68,155 0 68,155
Total 0 0
(tonnes of CO2e) 93,299 93,299

Description: Net electricity supplied to the grid by the Projects
Source of data to be Certification of metering records and share certificate for electricity produced by
used: wind farm provided by GEDA (Gujarat Energy Development Agency)
Value of data applied 2006: 72,488,586 kWh
for the purpose of 2005: 25,687,600 kWh
calculating expected 2004: 1,055,294 kWh
section B.5
Description of Net electricity supplied to grid is measured by main meters (export and import)
measurement methods at the Metering Point. This is further described in Annex – 2.
and procedures to be
applied:
QA/QC procedures to QA/QC procedures are elaborated in Annex – 2 (Monitoring Plan).
be applied:
Any comment: The meter testing and checking procedures that are solely within the purview of
GETCO (Gujarat Energy Transmission Corporation Limited), i.e., frequency of
testing of main/check meters, quality and standards of portable meter testing
equipment, testing and calibration of portable meter testing equipment using a
meter testing bench, testing and calibration of meter testing bench, etc. are
outside the purview of the monitoring plan for the Projects.

>>

page 15
Hence, under the monitoring protocol for the Project it is required to monitor the units of electricity
supplied to the grid by the wind farms. The monitoring procedures and QA/QC procedures are provided
in Annex – 2 (Monitoring Plan)
The Projects are operated and managed by Enercon (India) Ltd.

>>
The start date of the Projects is the date of purchase order for the first sub-project to be commissioned.
This project is Sr. No. 01 (Desai Textiles) in Table – I and the date of purchase order is 29/01/2004.

>>
20 years
C.2 Crediting period and related information:
C.2.1. Starting date of the crediting period:

>>
01/06/2004 for all projects.
C.2.2. End of crediting period:

>>
31/12/2006

>>

impacts:
>>
Enercon appointed Care Sustainability to conduct rapid environmental impact assessment study to assess
the impact of the project on the local environment.
not covered under the categories as described in EIA Notification of 1994 or the Amended Notification
page 16
of 2006. However, Enercon conducted the EIA to study impacts on the environment resulting from the
project activity.
activities on air, water, noise, land, biological and socio-economic environment within the study area.
The ambient air concentrations of Suspended Particulate Matter, Respirable Particulate Matter, Oxides of
the permissible range as specified by the state pollution control board and National Ambient Air Quality
Standards. Water quality monitoring studies were carried out for determination of physico-chemical
characteristics of bore wells. The ph level of water was found to be under the specified limits.
The site does not involve any sensitive archaeological monuments as per the Archaeological Survey of
India. No Historical and Cultural Monuments have been affected due to project location. The project area
consists of some grass shrubs and does not have much to offer aesthetically. However, construction of
wind power mills with pleasing architectural design that blends with the landscape will have a positive
impact on the aesthetics of the present surrounding of the site.
>>
of the windmills. The ecology is not likely to get impacted by this type of project activity. The local
population confirmed that there is no noise or dust nuisance due to windmills. The EIA also ruled out
any adverse impacts due to the project activity.

>>
>>
The comments from local stakeholders were invited through a local stakeholder meeting conducted at
Satapar site office, Jamnagar on 16 December 2006. A local newspaper advertisement was placed in
Aajkal on 2nd December 2006 inviting the local stakeholders for the meeting.
of Enercon. The minutes of the meeting are set out in Appendix 1.

>>
The comments from local villagers included:
• The nature of benefits that local stakeholders will get
• Impact on the grazing of local cattle
• Impact on any migratory patterns of birds or fauna
• Addressing safety issues by Enercon, incidence of accidents
• Noise disturbance
page 17
>>
stakeholders:
• The benefits to the local stakeholders will be through employment opportunities provided by the
project in terms of construction workers. It will also lead to better connectivity to nearby towns.
• The project does not affect the grazing by the cattle. Enercon does not use any kind for boundary
wall to protect their machines and hence the accessibility of cattle to areas for grazing and drinking
water is not affected.
• The Project does not fall under migratory patterns of the birds.
• Enercon has appropriate protocols are in place to take care of all the safety issues. No incidence of
accident has occurred.
The local stakeholders were satisfied with the explanations provided during the meeting.
Annex 1

Street/P.O.Box: A-9, Veera Industrial Estate, Veera Desai Road, Andheri West-400053
Building: Enercon Tower
City: Mumbai
Country: India
Telephone: +91-22-66924848
page 18
FAX: +91-22-67040473
URL:
Represented by:
Salutation: Mr.
Last Name: A V Raghavan
Middle Name:
First Name:
Mobile: +91-98200 45724
Direct FAX: +91-22-5692 1175
Direct tel: +91-22-6692 4848 extn. 7169
page 19
Annex 2
No ODA funding is sorted for this project.

page 20
Annex 3
The Operating Margin data for the most recent three years and the Build Margin data for the Western
Electricity Grid as published in the CEA database are as follows:
Simple Operating Margin
tCO2e/GWh
Simple Operating Margin - 2002-03 981.41
Average Operating Margin of last three years 994.55
Build Margin
tCO2e/GWh
Build Margin 777.22
Combined Margin calculations
Weights tCO2e/GWh
Operating Margin 0.75 994.55
Build Margin 0.25 777.22
Detailed information on calculation of Operating Margin Emission Factor and Build Margin Emission
Factor is available at www.cea.nic.in.
page 21
Annex 4
• The electricity supplied to the grid will be metered at the 132 kV level at the Bhogat substation
and at the 66 kV at Navadra substation. Representatives of GEDA (Gujarat Energy Development
Agency), GETCO (Gujarat Energy Transmission Corporation Limited) and Enercon will jointly
take the main meter reading and sign the meter reading every month. Enercon has also installed
the meters for each customer, which is sealed in presence of representatives of Enercon, GETCO
(Gujarat Energy Transmission Corporation Limited) and GEDA (Gujarat Energy Development
Agency).
• This value of the monthly joint meter reading of the EIL sub-station is then apportioned to the
EB reading taken for each customer to get the net supply of electricity to the grid for that
particular customer. The share certificate is signed by the GEDA (Gujarat Energy Development
Agency) officials, which is used to produce invoice on behalf of the customer
• The meters will be jointly inspected/ tested once in a year as per the terms of the Wheeling
arrangement. Joint inspection and testing will also be carried out as and when difference in
monthly meter readings exceeds the sum of maximum error as per accuracy class of main and
back up meters.
• In case the meters are found to operate outside the permissible limits, the meters will be either
replaced immediately or calibrated.
page 22

A.
page 23
Public Consultation Meeting of Wind Energy Projects for Clean Development Mechanism (CDM)
Project of Enercon (India) Limited situated at Satapar, Bamanasa, Navadra, Kuranga and Okhamati.,
Distt. Jamnagar, Gujarat.
Kalyanpur, District Jamnagar, Gujarat (INDIA)
MINUTES OF THE MEETING
Agenda : Local Public Consultation Meeting of stakeholder of Wind Energy Projects for Clean
Development Mechanism.
Venue : Service Office, SATAPAR
Date : December 16, 2006
Time : 1500 hrs to 1800 hrs
Representative from the local stakeholders who were chief guest and shared the dash.
Sr. Name Village Port-folio

No.
01. Mr. Markhi R Der Navadra Sarpanch
02. Mr. Jodha bhai Satapar Dy. Sarpanch
03. Mr. Mughabhai Lamba Sarpanch
04. Mr. Chetaniya Ranabhai Satapar Sarpanch
The list of all other members representing other villages within the nearby vicinity is attached with this
as Annexure ‘A’. (Total list of 22 persons).
Following people were representing Enercon (India) Ltd for the purpose of this meeting;
Mr. Mahender Singh, Project Ofice

Mr. K .D. Baria, Service Office.
Mr. Vivek Sen, Corporate Office Mumbai
Mr. K.D. Baria invited the above representative of the different villages to chair the meeting.
The agenda of the meeting was fixed as follows :-

1. Welcome :-By Mr. Mahender Singh
2. Description of the project details :-By Mr. K .D. Baria
3. Quarries from stakeholders :- Stakeholders & villagers (open)
4. Vote of Thanks :- By Mr. Mahender Singh & Mr.
page 24
K.D. Baria
Welcome Address
Mr. Mahender Singh from Enercon (I) Limited welcomed all the people who came to take part in the
meeting including the chief guest. There were more than 22 people from all the villages that fall in the
region of the project sites.
Description of the project Details :
Mr. K.D. Baria highlighted the project description right from the beginning of the initial project in that
area. The knowledge and awareness of the Wind farms was communicated to the local people in the local
language. The wind farm projects falls in the category of the renewable energy. The meaning of the
renewable energy was explained. The sites where the projects are located have no commercial activities
and is a waste land procured through Government was explained to the villagers.
The advantage of the Wind Mills to the people in that region and to India as such was explained to the
people. The optimum use of the barren land was explained to them. In addition to this several other
support services augmented by the ENERCON to local people in terms of making available access road
to the villages, transportation system, providing employment to the local people of skill and unskill
category was explained to them.
The Wind Farm produces the clean and green energy and do not account for any kind of pollution as
might be the case with other alternatives. The comparison between the wind farm projects and other
alternatives was drawn in order to communicate the advantages that wind power possess over other
alternatives of renewal energy available in India.
Mr. Mahender Singh
Mr. Mahender Singh briefed the advantages of the wind farm in the region and in India as a whole and
emphasized on the employment opportunity being provided to the local people in the region and as a
result of which the economic conditions of the local people has been improving in the region.
Mr. K.D. Baria
Mr. Kantilal D Baria emphasized that the economic conditions of the people and villagers in this area are
not good. With the coming up of the wind farm projects of Enercon (India) Limited, there has been a
tremendous improvement in the economic conditions of the villagers as the employment opportunities to
the people in the form of Security guards, drivers, labourers, extending contract for construction work,
road work and other avenues have been opened by the Enercon. The educated people have also been
given permanent employment which are on the mustered roll of the company depending upon their
competency and talent.
Mr. Vivek Sen
Mr. Vivek Sen explained the villagers about the basic concept of CDM and its importance in the current
context of climatic change and concern of the nations around the world to tackle this change. He told
how Enercon India Ltd is earning carbon credits and distributing the benefits to the project owners. He
also emphasized that Enercon is doing a great work for the development of power infrastructure in the
region along with the goal of contributing to the sustainable development.
page 25
The opinions, suggestions and concerns of the stakeholders were specially invited. The participants
including the chief guest expressed the quarries as given below. The representative of the ENERCON
clarified them as given below :-
Sl. Quarries Responses

No.
01. Will the project affect the grazing of No, the project do not affect the grazing of the cattle.
local cattle ? Enercon (India) Limited does not use any kind for
boundary wall to protect their machines and hence the
accessibility of cattle to areas for grazing and drinking
water is not affected in any manner.
02. Do Enercon takes care of safety issues? The Enercon (India) limited takes care about the safety
issues. Appropriated protocols are in place to take care
of all the safety issues.
03. What are the benefits of the wind The project will provide the people with the
power projects that stakeholders shall employment opportunities.
observe? The project will give further jobs to the deserving
villagers so as to improve upon the economic
conditions of the villagers and explore the
opportunities in terms of assigning construction, road
work to the deserving villagers.
04. Will the project affect any migratory The project does not fall under migratory patterns of
patterns of birds or fauna ? the birds.
05. During construction and erection has Till date no incident of accident has occurred. Even
any incident of accident or damage blasting is done under strict control and supervision
occurred? with enough warning. Mainly ground blasting is
practiced.
06. Does the project help in improving the The duration of power supply to the villages has
electricity supply to the villagers or increased and also there is improvement in quality of
neighbourhood areas ? the power supply. The power fluctuations in the
voltage have remarkably decreased.
07. Have you observed any noise No noise disturbances have been observed so far.
disturbances from the project during
construction and operation of the
project?
Vote of Thanks
Mr. Mahender Singh and Mr. K.D. Baria thanked all the people for sparing their time for this meeting
and requested them to continue their support and cooperation towards the projects of ENERCON
(INDIA) Limited in the vested interest of the local public and nation as a whole. All the appointed
representative of the villages and also the local population present in the meeting expressed their
happiness towards the Enercon (India) Limited for their noble gesture of organizing this meeting with the
villagers and stakeholders.
page 1
CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 03 - in effect as of: 28 July 2006
CONTENTS
Annexes

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Title: Enercon Wind Farms in Karnataka Bundled Project – 30.40 MW
Version: 2.0
Date of completion of PDD: 06/07/2007

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Objective of the Project
The objective is development, design, engineering, procurement, finance, construction, operation and
maintenance of Enercon Wind Farm (Chitradurga) Ltd 8.8 MW and other wind power projects of 21.60
MW capacity (“Project”) in the Indian state of Karnataka to provide reliable, renewable power to the
Karnataka state electricity grid which is part of the Southern regional electricity grid. The Project will
lead to reduced greenhouse gas emissions because it displaces electricity from fossil fuel based electricity
generation plants.
Nature of Project
The Project harnesses renewable resources in the region, and thereby displacing non-renewable natural
resources thereby ultimately leading to sustainable economic and environmental development. Enercon
(India) Ltd (“Enercon”) will be the equipment supplier and the operations and maintenance contractor for
the Project. The generated electricity will be supplied to Karnataka Power Transmission Company Ltd
(“KPTCL”)/ Bangalore Electricity Supply Company Ltd (“BESCOM”) / Hubli Electricity Supply
Company Ltd (“HESCOM”) under long-term power purchase agreements (PPA). Enercon Wind Farm
(Chitradurga) Ltd is owned by Enercon (India) Ltd and Enercon GmbH and the rest of the projects are
owned by Enercon’s customers. The details of the Projects are as under:
1. Enercon Wind Farms (Chitradurga) Ltd: 8.80 MW
2. Steelfab Offshore 0.80 MW
3. Dewanchand Ramsaran: 0.80 MW
4. Elpro International: 0.80 MW
5. Gautam Ladkat: 0.80 MW
6. Sameer Ladkat: 0.80 MW
7. Panama Business Centre: 1.60 MW
8. Balasahab Ladkat: 1.60 MW
9. Panama Infrastructure: 1.60 MW
10. MK Agrotech Private Ltd: 1.60 MW
11. Srinivas Sirigeri: 0.80 MW
12. R.K.Marbles: 0.80 MW
13. Dempo Industries: 0.80 MW
14. Desai Brothers: 0.80 MW
15. Abhilash Garments & Estates (P) Ltd: 0.80 MW
16. Prasad Global Solutions: 1.60 MW
17. Siddaganga Oil Extractions Ltd.: 1.60 MW
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18. Gangadhar Narsingdas Agarwal: 4.00 MW

The Project meets several sustainable development objectives including:
• contribution towards the policy objectives of Government of India and Government of Karnataka of
• contribution towards meeting the electricity deficit in Karnataka;
technology;
• conserving natural resources including land, forests, minerals, water and ecosystems; and
A.3. Project participants:

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Name of Party involved ((host) Private and/or public Kindly indicate if the Party
indicates a host Party) entity(ies) project participants involved wishes to be
(*) (as applicable) considered as project
participant (Yes/No)
Government of India (Host) Enercon (India) Ltd No
Government of Japan Japan Carbon Finance No
The contact details of the entities are provided in Annex – 1. All the projects have authorized Enercon
(India) Ltd to take them through the CDM process.

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A.4.1.1. Host Party(ies):

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The host party to the project activity is the Government of India.

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The Project is located in the State of Karnataka that forms part of the Southern regional electricity grid of
India.
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Sub-project No. 1 is located in Bhrampura village, Hiriyur talkuk of Chitradurga district. Sub-Projects 2
to 14 are located in village Ittegehalli, Myakenahalli, Katheholle, Goolihosahalli, Lakkihalli,
Lingadevarahalli, Mulashiranahalli, all located in Jogimatti wind Zone of Chitradurga district. Sub-
Projects 15 to 18 are located in Kapatagudda Wind Zone of Gadag district.

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For sub-project 1, the project area extends between latitude 14o 02’ & 14o 04’ North and longitude 76o
27’ & 76o 28’ East. This sub-project is connected to the Aiamangla 66/11 kV KPTCL sub-station.
For sub-projects 2 to 10, the project area extends between latitude 13o 57’ & 14o 01’ North and longitude
76o 24’ & 76o 29’ East. These sub-projects are connected to the Hiriyur 220/66/11 kV KPTCL sub-
station.
For sub-projects 11 to 14, the project area extends between latitude 13o 58’ & 14o 02’ North and
longitude 76o 17’ & 76o 20’ East. These sub-projects are connected to the Ramgiri 66/11 kV KPTCL
sub-station.
For sub-projects 15 to 18, the project area extends between latitude 14o 11’ & 14o 14’ North and
longitude 76o 43’ & 76o 45’ East. These sub-projects are connected to the Dambal 110/33/11 kV KPTCL
sub-station.
The sites are located at a distance of 200 km from Bangalore by road. The nearest railway station is at
Bangalore. A location map is attached at Appendix – 1.

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renewable sources).

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The Project involves 38 wind energy converters (WECs) of Enercon make 800 kW E-48 with internal
electrical lines connecting the Project with local evacuation facility. The WECs generates 3-phase power
at 400V, which is stepped up to 33 KV. The Project can operate in the frequency range of 47.5–51.5 Hz
and in the voltage range of 400 V ± 12.5%. The other salient features of the state-of-art-technology are:
• Variable speed function – has the speed range of 18 to 33 RPM thereby ensuring optimum efficiency
at all times.
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manufactured.
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Crediting Period for the Project: fixed for 10 years
Years Annual estimation of emission reductions in
tones of CO2e
25 October 2007 to 31March2008 22,565

01 April 2008 to 31 March 2009 65,774
01 April 2009 to 31 March 2010 65,774
01 April 2010 to 31 March 2011 65,774
01 April 2011 to 31 March 2012 65,774
01 April 2012 to 31 March 2013 65,774
01 April 2013 to 31 March 2014 65,774
01 April 2014 to 31 March 2015 65,774
01 April 2015 to 31 March 2016 65,774
01 April 2016 to 31 March 2017 65,774
01 April 2017 to 24 October 2017 43,209
Total estimated reductions (tonnes of 657,740
CO2e)
Total number of crediting years 10
Annual average over the crediting 65,774

period of estimated reductions (tonnes
of CO2e)
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project activity:
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activity:
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The Project is wind based renewable energy source, zero emission power project connected to the
Karnataka state grid, which forms part of the Southern regional electricity grid. The Project will displace
expansion of the fossil fuel based power plants in Southern regional electricity grid.
• the Project is grid connected renewable power generation project activity
• the Project represents electricity capacity additions from wind sources
• the Project does not involve switching from fossil fuel to renewable energy at the site of project
activity since the Project is green-field electricity generation capacities from wind sources at sites
where there was no electricity generation source prior to the Project, and
• the geographical and system boundaries of the Southern electricity grid can be clearly identified and
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Project. As the Project is connected to the Southern regional electricity grid, the Southern grid is the
Accordingly, the project boundary encompasses the physical extent of the Southern regional Electricity
grid which include the project site and all the power plants connected physically to the electricity system
Source Gas Included? Justification/ Explanation

the Southern Grid estimated for wind energy projects
under ACM0002
Baseline

under ACM0002
Activity
Project
the Project CH4 Excluded any direct GHG emissions.

N2O Excluded
baseline scenario:
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As the Project does not modify or retrofit an existing generation facility, the baseline scenario is the
delivered to the grid by the Project.
those that would have occurred in the absence of the registered CDM project activity (assessment
and demonstration of additionality): >>
Step 0: Preliminary screening based on the starting date of the project activity
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If project participants wish to have the crediting period starting prior to the registration of their project
activity, they shall:
a) Provide evidence that the starting date of the CDM project activity falls between 1 January 2000 and
the date of the registration of a first CDM project activity, bearing in mind that only CDM project
activities submitted for registration before 31 December 2005 may claim for a crediting period
starting before the date of registration.
b) Provide evidence that the incentive from the CDM was seriously considered in the decision to
proceed with the project activity. This evidence shall be based on (preferably official, legal and/or
other corporate) documentation that was available at, or prior to, the start of the project activity.
The additionality of the project is being proved using additionality tool Version 2.
The Project start date is prior to the date of validation of the PDD.
Wind power projects prior to the implementation Project were required to share CDM revenues with
KPTCL in accordance with the PPAs approved by Karnataka Electricity Regulatory Commission
(KERC). While KPTCL requested KERC to retain the sharing of CDM revenues, KERC removed the
sharing of CDM revenues with KPTCL while approving the PPAs for the Project recognizing the nascent
stage of the CDM market and potential adverse impact on new investments. The various regulatory
orders that a) allowed CDM benefits to be shared between KPTCL and the developers for earlier projects,
and b) did not allow KPTCL to share CDM benefits with developers will be provided to the validator.
Enercon’s management had considered CDM benefits in wind power development and already had
experience with CDM process (CERUPT tender of 2001, Letter of Intent for other wind power projects in
Karnataka in December 2003, etc.). It had also informed its customers of the CDM benefits. Evidence
for this is available which will be provided to the validator.
Enercon had entered into discussions with a CER purchaser for purchase of emission reductions and a
Memorandum of Understanding was signed on 1st July 2005, which is prior to the start date of the Project.
Step 1: Identification of alternatives to the project activity consistent with current laws and
regulations
Sub-step 1a. Define alternatives to the project activity:
1. Identify realistic and credible alternative(s) available to the project participants or similar project
developers that provide outputs or services comparable with the proposed CDM project activity. These
alternatives are to include:
The proposed project activity not undertaken as a CDM project activity;
All other plausible and credible alternatives to the project activity that deliver outputs and on services
(e.g. electricity, heat or cement) with comparable quality, properties and application areas;
If applicable, continuation of the current situation (no project activity or other alternatives
undertaken).
Alternative(s) available to the project participants or similar project developers include:
(a) The Project is not undertaken as a CDM project activity.
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(b) Setting up of comparable utility scale fossil fuel fired or hydro power projects that supply to the
Karnataka grid under a PPA.
(c) Continuation of the current situation where no project activity or any of the above Alternatives are
undertaken would not be applicable as Karnataka had energy (MU) shortages of 0.7% and peak
(MW) shortages of 9.8% in 2005-06 (Source: Southern Region Power Sector Profile, August 2006,
Ministry of Power).
Sub-step 1b. Enforcement of applicable laws and regulations
2. The alternative(s) shall be in compliance with all applicable legal and regulatory requirements, even
if these laws and regulations have objectives other than GHG reductions, e.g. to mitigate local air
pollution. This sub-step does not consider national and local policies that do not have legally-binding
status.
3. If an alternative does not comply with all applicable legislation and regulations, then show that, based
on an examination of current practice in the country or region in which the law or regulation applies,
those applicable legal or regulatory requirements are systematically not enforced and that non-
compliance with those requirements is widespread in the country. If this cannot be shown, then
eliminate the alternative from further consideration.
4. If the proposed project activity is the only alternative amongst the ones considered by the project
participants that is in compliance with all regulations with which there is general compliance, then the
proposed CDM project activity is not additional.
There are no legal and regulatory requirements that prevent Alternatives (a) and (b) from occurring.
Proceed to Step 2 (Investment analysis) or Step 3 (Barrier analysis). (Project participants may also
select to complete both steps 2 and 3.)
Step 2: Investment Analysis

Determine whether the proposed project activity is the economically or financially less attractive than
other alternatives without the revenue from the sale of certified emission reductions (CERs). To conduct
the investment analysis, use the following sub-steps:
Sub-step 2a. - Determine appropriate analysis method
1. Determine whether to apply simple cost analysis, investment comparison analysis or benchmark
analysis (sub-step 2b). If the CDM project activity generates no financial or economic benefits other
than CDM related income, then apply the simple cost analysis (Option I). Otherwise, use the
investment comparison analysis (Option II) or the benchmark analysis (Option III).
Sub-step 2b. – Option I. Apply simple cost analysis
2. Document the costs associated with the CDM project activity and demonstrate that the activity
produces no economic benefits other than CDM related income.
Sub-step 2b. – Option II. Apply investment comparison analysis
suitable for the project type and decision-making context.
Sub-step 2b. – Option III. Apply benchmark analysis
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suitable for the project type and decision context.
Option I – Simple cost analysis is not applicable as the project activity sells electricity to the grid and
obtains economic benefits in the form of electricity tariffs.
Enercon proposes to use Option III – Benchmark analysis and the financial indicator that is identified is
the post-tax return on equity or the equity IRR.
The post tax return on equity and equity IRR is used as the appropriate financial indicator because in the
Indian power sector, a 14% post tax return on equity is an established benchmark for projects in public or
private sector based on cost-plus regulations (Source: Central Electricity Regulatory Commission, Terms
and Conditions of Tariff, Regulations 2004 dated 26 March 2004) for utility scale power plants (similar to
Alternative (b)). Incentives, foreign exchange variations and efficiency in operations are in addition to
this benchmark of 14%.
For determining the tariffs for wind power projects, the electricity regulatory commissions of the state of
Rajasthan and Gujarat have considered the return on equity at 14% while the electricity regulatory
commissions of the state of Madhya Pradesh, Maharashtra and Karnataka have considered the return on
equity at 16%. (Source: RERC Order dated 29 September 2006).
There are some essential differences between the Project (whether implemented with or without CDM
revenues) and the Alternatives identified in Sub-step 1(b) (utility scale fossil fuel and hydro projects).
These should be taken into account while setting the appropriate level of equity IRR.
• The project activity tariff structure is a single-part tariff structure as compared to utility scale fossil
fuel and hydro projects, which have two-part tariff structure. This implies that project activity
carries a higher investment risk than the utility scale fossil fuel and hydro projects (Alternative (b))
where the investment recovery is decoupled from the level of actual generation achieved by the
project due to variations in offtake.
Thus, in case of the project activity, issues such as transmission unavailability, back-down of
generation or part-load operations, which are beyond the control of the investors are likely to affect
the project activity more severely and therefore the project activity investors would require higher
rate of return to compensate them for these additional risks.
• In case of utility scale fossil fuel and hydro projects (Alternative (b)), these are by reference to cost-
plus approach whereby the projects recover their full investment cost each year if they are able to
reach specified level of plant availability. In case of the Project, it does not recover its full
investment cost in the initial years as the tariffs are back-loaded. This increases the investment risks
in the project activity compared to the alternatives.
Based on the above considerations, 16% post-tax equity IRR is considered to be the appropriate post-tax
equity return. If the Project has a post-tax equity IRR of less than 16%, then it can be considered to be
additional.
Sub-step 2c. Calculation and comparison of financial indicators (only applicable to options II and III):
5. Calculate the suitable financial indicator for the proposed CDM project activity and, in the case of
Option II above, for the other alternatives. Include all relevant costs (including, for example, the
investment cost, the operations and maintenance costs), and revenues (excluding CER revenues, but
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including subsidies/fiscal incentives where applicable), and, as appropriate, non-market cost and
benefits in the case of public investors.
6. Present the investment analysis in a transparent manner and provide all the relevant assumptions in
the CDM-PDD, so that a reader can reproduce the analysis and obtain the same results. Clearly
present critical techno-economic parameters and assumptions (such as capital costs, fuel prices,
lifetimes, and discount rate or cost of capital). Justify and/or cite assumptions in a manner that can be
validated by the DOE. In calculating the financial indicator, the project’s risks can be included
through the cash flow pattern, subject to project-specific expectations and assumptions (e.g. insurance
premiums can be used in the calculation to reflect specific risk equivalents).
7. Assumptions and input data for the investment analysis shall not differ across the project activity and
its alternatives, unless differences can be well substantiated.
8. Present in the CDM-PDD submitted for validation a clear comparison of the financial indicator for
the proposed CDM activity and:
(a) The alternatives, if Option II (investment comparison analysis) is used. If one of the other
alternatives has the best indicator (e.g. highest IRR), then the CDM project activity can
not be considered as the most financially attractive;
(b) The financial benchmark, if Option III (benchmark analysis) is used. If the CDM project
activity has a less favourable indicator (e.g. lower IRR) than the benchmark, then the
CDM project activity cannot be considered as financially attractive.
Detailed assumptions used and the results of financial analysis for Panama Infrastructure, the project with
the highest equity IRR, is presented below.
Owner: Panama Infrastructure

Project: 1.6 MW
Location : Karnataka
Assumptions for Financial Model
Capacity of Machines in kW 800

Number of Machines 2
Project Capacity in MW 1.60
Project Commissioning Date 6-Mar-06
Project Cost (Rs. Million) 76
Project Cost per MW (Rs. In Millions) 47.5
Operations
Plant Load Factor 26.5%
Insurance Charges @ % of capital cost 0.18%
Operation & Maintenance Cost base year @ % of capital cost 1.25%
% of escalation per annum on O & M Charges 5.0%
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Tariff
Base year Tariff for 10 years - Rs./Kwh 3.40
Annual Escalation (Rs./kWh per Year) 0.00
Cost plus 16%

Tariff applicable after 10 years (Rs/kWh)
return on equity
Project Cost Rs Million

Land and Infrastructure, Generator & Electrical Equipments, Mechanical
Equipments, Civil Works, Instrumentation & Control, Other Project Cost, Pre
operative Expenses, etc.
Total Project Cost 76
Means of Finance Rs Million
Own Source 25% 19.00
Term Loan 75% 57.00
Total Source 76.00
Terms of Loan
Interest Rate 9.00%
Tenure 12.0 Years
Moratorium 6 Months
Income Tax Depreciation Rate (Written Down Value basis)

on Wind Energy Generators 80%
On other Assets 10%
Book Depreciation Rate (Straight Line Method basis)

On all assets 7.86%
Book Depreciation up to (% of asset value) 90%
Income Tax
Income Tax rate 30%
Minimum Alternate Tax 10%
Surcharge 10%
Cess 2%
Working capital
Receivables (no of days) 45
O & m expenses (no of days) 30
Working capital interest rate 12%
CER Revenues
CER Price in US$ 6.50
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Exchange rate Rs./US$* 45.34

* RBI reference rate as of 15 November 2006
Crediting period starts 15-Sep-07

Length of Crediting period 10
Baseline Emission Factor for Southern Region (tCO2/GWh) 932.04
The equity IRR for this sub project without CDM revenues is 11.56%, which improves to 15.07% after
considering CDM revenues.
The financial analysis also demonstrates that the equity IRRs of other projects are in the range of 9% to
11.56% i.e. less than the benchmark rate of 16%. Equity IRRs of all sub projects that comprise the project
activity are provided in Appendix 3.
Sub-step 2d. Sensitivity analysis (only applicable to options II and III):

9. Include a sensitivity analysis that shows whether the conclusion regarding the financial attractiveness
is robust to reasonable variations in the critical assumptions. The investment analysis provides a valid
argument in favor 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 (as per step 2c
para 8a) or is unlikely to be financially attractive (as per step 2c para 8b).
Sensitivity analysis of the Equity IRR to the Plant Load Factor (the most critical assumption) has been
carried out considering a plant load factor of 23% and 28% (the range indicated in KERC Order dated 18
January 2005). Plant Load Factor is the key variable encompassing variation in wind profile, variation in
off-take (including grid availability) including machine downtime. The post tax Equity IRRs at the stated
PLFs are as follows:
PLF at 23% PLF at 28%

Post tax Equity IRR without 5.59% 14.41%
CER revenues
Post tax Equity IRR with CER 8.42% 18.16%
revenues
As can be seen from above, the Project is not the most financially attractive (as per step 2c para 8a) we
proceed to Step 4 (Common practice analysis).
Step 4. Common practice analysis
Sub-step 4a. Analyze other activities similar to the proposed project activity:
1. Provide an analysis of any other activities implemented previously or currently underway that are
similar to the proposed project activity. Projects are considered similar if they are in the same
country/region and/or rely on a broadly similar technology, are of a similar scale, and take place in a
comparable environment with respect to regulatory framework, investment climate, access to
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technology, access to financing, etc. Other CDM project activities are not to be included in this
analysis. Provide quantitative information where relevant.
Sub-step 4b. Discuss any similar options that are occurring:
2. If similar activities are widely observed and commonly carried out, it calls into question the claim
that the proposed project activity is financially unattractive (as contended in Step 2) or faces barriers
(as contended in Step 3). Therefore, if similar activities are identified above, then it is necessary to
demonstrate why the existence of these activities does not contradict the claim that the proposed
project activity is financially unattractive or subject to barriers. This can be done by comparing the
proposed project activity to the other similar activities, and pointing out and explaining essential
distinctions between them that explain why the similar activities enjoyed certain benefits that
rendered it financially attractive (e.g., subsidies or other financial flows) or did not face the barriers to
which the proposed project activity is subject.
3. Essential distinctions may include a serious change in circumstances under which the proposed CDM
project activity will be implemented when compared to circumstances under which similar projects
where carried out. For example, new barriers may have arisen, or promotional policies may have
ended, leading to a situation in which the proposed CDM project activity would not be implemented
without the incentive provided by the CDM. The change must be fundamental and verifiable.
We analyze the extent to which wind energy projects have diffused in the electricity sector in Karnataka.
In 2004 – 05, wind electricity generation was 485.57 GWh and the total electricity availability at bus-bar
in the state of Karnataka was 33,523.92 GWh (Source: CEA General Review 2006). This works out to
1.45%, showing that wind energy power generation is insignificant as compared to other power project
generation sources in Karnataka.
Installed capacity of wind energy generation sources stood at 276 MW as of 31 March 2005 (Source:
CEA General Review 2006). There are approximately 201 MW wind energy projects that are currently in
the CDM pipeline (UNFCCC website) and more are expected to follow.
Clearly, wind power project development in Karnataka is insignificant when compared to the power
sector of Karnataka. Further, wind power project development is substantially dependent on CDM
mechanism and thus is not common practice.
Sub-steps 4a and 4b are satisfied.
Step 5. Impact of CDM registration
Explain how the approval and registration of the project activity as a CDM activity, and the attendant
benefits and incentives derived from the project activity, will alleviate the economic and financial hurdles
(Step 2) or other identified barriers (Step 3) and thus enable the project activity to be undertaken.
Registering the project activity as a CDM activity provides a significant amount of revenue, improving
the project’s cash flow and improving the equity IRR by 3.74%. The revenues from sale of the Certified
Emission Reductions would enhance the viability of the project and would partially offset the risks
associated with the possible changes in policy, wind regime, project implementation risks (time and cost
overruns), etc. Further, CER revenues will be high quality cash flows coming from creditworthy parties
and denominated in foreign currency. The CDM revenues will attract new players to wind investments in
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Karnataka, as they provide compensation for the regulatory and project risks implicit in the wind power
projects.

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ERy = BEy – PEy – Ly……………….(1)
Where: BEy is the baseline emissions

PEy is project activity emissions and;
Ly is the amount of emissions leakage resulting from the project activity.
BEy = EGy * EFy …………………….(2)
below.
As per ACM0002, dispatch data analysis should be the first methodological choice. However, this option
is not selected because the information required to calculate OM based on dispatch data is not available in
the public domain for the Southern electricity regional grid.
The Simple Operating Margin approach is appropriate to calculate the Operating Margin emission factor
The generation profile of the Southern grid in the last five years is as follows:
1
annually.
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Hydro 24,951 16,943 18,288 26,260 29,902
Wind & Renewables 3,256 1,865 1,607 1,456 1,262
Nuclear 4,408 4,700 4,390 5,244 4,331
Other sources
Coal 99,010 98,435 92,053 84,032 83,292
Diesel 2,434 3,295 4,379 4,155 2,868
Gas 12,428 14,214 13,950 10,331 7,132
total generation in the Southern grid in the last five years. Hence the Simple OM method is appropriate to
plants or the most recent 20% of the generating units built (summation is over such plants specified by
k):2
as the default method. The summation over i and k is for the fuels and electricity generation of the plants
in sample m mentioned above.
represents a significantly larger set of plants, for a large regional electricity grid have a large number of
power plants connected to it, and is therefore appropriate.
The Central Electricity Authority, Ministry of Power, Government of India has published a database of
Carbon Dioxide Emission from the power sector in India based on detailed authenticated information
obtained from all operating power stations in the country. This database i.e. The CO2 Baseline Database
provides information about the Operating Margin and Build Margin Emission Factors of all the regional
electricity grids in India. The Operating Margin in the CEA database is calculated ex ante using the
Simple OM approach and the Build Margin is calculated ex ante based on 20% most recent capacity
additions in the grid based on net generation as described in ACM0002. We have, therefore, used the
2
The project participant is to demonstrate which is appropriate for the proposed project to the Operational Entity, otherwise,
more conservative one is selected.
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Operating Margin and Build Margin data published in the CEA database, for calculating the Baseline
Emission Factor.
Using the values for operating margin and build margin emission factors provided in the CEA database
and their respective weights for calculation of combined margin emission factor, the baseline carbon
emission factor (CM) is 932.04 tCO2e/GWh or 0.93204 tCO2e/MWh.
Project Emissions:
PEy = 0
Leakage:
Ly = 0

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Data / Parameter: EFOM,y

Description: Operating Margin Emission Factor of Southern Regional Electricity Grid
Value applied:
2002 – 03 0.9970
2003 – 04 1.0094
2004 – 05 1.0038
of data or description of Operating Margin Emission Factor has been calculated by the Central Electricity
measurement methods Authority using the simple OM approach in accordance with ACM0002.
applied :
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Data / Parameter: EFBM,y

Description: Build Margin Emission Factor of Southern Regional Electricity Grid
Value applied: 0.7180

of data or description of Build Margin Emission Factor has been calculated by the Central Electricity Authority
measurement methods in accordance with ACM0002.
applied :

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Ex-ante calculation of emission reductions is equal to ex-ante calculation of baseline emissions as project
emissions and leakage are nil.
Baseline emission factor (combined margin)

= 932.04 tCO2e/GWh
Annual electricity supplied to the grid by the Project

= 30.40 MW (Capacity) x 26.5% (PLF) x 8760 (hours) / 1000 GWh
= 70.57056 GWh
Annual baseline emissions

= 932.04 tCO2e/GWh x 70.57056 GWh
= 65,774 tCO2e

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Year Estimation of Estimation of baseline Estimation of Estimation of
project activity emissions (tonnes of leakage overall emission
emissions (tonnes CO2e) (tonnes of reductions
of CO2e) CO2e) (tonnes of CO2e)
25 October 2007 to 0 22,565 0 22,565

31March2008
01 April 2008 to 31 March 0 65,774 0 65,774
2009
01 April 2009 to 31 March 0 65,774 0 65,774
2010
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01 April 2010 to 31 March 0 65,774 0 65,774

2011
01 April 2011 to 31 March 0 65,774 0 65,774
2012
01 April 2012 to 31 March 0 65,774 0 65,774
2013
01 April 2013 to 31 March 0 65,774 0 65,774
2014
01 April 2014 to 31 March 0 65,774 0 65,774
2015
01 April 2015 to 31 March 0 65,774 0 65,774
2016
01 April 2016 to 31 March 0 65,774 0 65,774
2017
01 April 2017 to 24 October 0 43,209 0 43,209
2017
Total (tonnes of CO2e) 0 657,740 0 657,740

Description: Net electricity supplied to the grid by the Project
Source of data to be Electricity supplied to the grid as per the tariff invoices raised on
used: KPTCL/BESCOM/HESCOM.
Value of data applied Annual electricity supplied to the grid by the Project
for the purpose of = 30.40 MW (Capacity) x 26.5% (PLF) x 8760 (hours) MWh
calculating expected = 70570.56MWh
section B.5
Description of Net electricity supplied to grid will be measured by main meters (export and
measurement methods import). The procedures for metering and meter reading will be as per the
and procedures to be provisions of the power purchase agreement. Refer Annex – 4 for an illustration
applied: of the provisions for measurement methods.
QA/QC procedures to QA/QC procedures will be as implemented by KPTCL/BESCOM pursuant to the
be applied: provisions of the power purchase agreement. Refer Annex – 4 for an illustration
of the provisions for QA/QC procedures.
Any comment: The data is archived for a period up to 2 years after the finishing of crediting
period.

>>
page 20


The sole parameter for monitoring is the electricity supplied to the grid. The Project is operated and
managed by Enercon (India) Ltd. The operational and management structure implemented by Enercon is
as follows:
STRUCTUR RESPONSIBILITY
Managing Director
Enercon India Ltd
CDM Team Review, Corrective action

co-ordinator
Corporate Review, internal

CDM Team
Regional Service Check, authorize & forward

Heads monitoring data
O&M Team Monitor, record, report and

archive data
Training and maintenance:
Training on the machine is an essential pre-requisite, to ensure necessary safety of man and machine.
Further, in order to maximize the output from the Wind Energy Converters (WECs), it is extremely
essential, that the engineers and technicians understand the machines and keep them in good health. In
order to ensure, that Enercon’s service staff is deft at handling technical snags on top of the turbine, the
necessity of ensuring that they are capable of climbing the tower with absolute ease and comfort has been
established. The Enercon Training Academy provides need-based training to meet the training
requirements of Enercon projects. The training is contemporary, which results in imparting focused
knowledge leading to value addition to the attitude and skills of all trainees. This ultimately leads to
creativity in problem solving.
page 21
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: 12/02/2007
Name of responsible person/entity:

PricewaterhouseCoopers (not a Project Participant)

>>
17/08/2005

>>
20 years
C.2 Choice of the crediting period and related information:
C.2.1. Renewable crediting period
C.2.1.1. Starting date of the first crediting period:

>>
C.2.1.2. Length of the first crediting period:

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

>>
25/10/2007
C.2.2.2. Length:
>>
10 years
page 22

>>

impacts:
>>
Enercon appointed Aditya Environmental Services Private Limited to conduct Rapid Environmental
Impact Assessment Study, in the districts of Chitradurga and Gadag where the project activity of Enercon
is located, to assess the impact of the project on the local environment
not covered under the categories as described in EIA Notification of 1994 or the Amended Notification of
2006. However, Enercon conducted the EIA to study impacts on the environment resulting from the
project activity.
activities on air, water, noise, land, biological and socio-economic environment within the study area. The
ambient air concentrations of Suspended Particulate Matter, Respirable Particulate Matter, Oxides of
the permissible range. Water quality monitoring studies were carried out for determination of physico-
chemical characteristics of bore wells. The ph level of water was found to be under the specified limits.
The study area represents part of Chitradurga and Gadag districts. The terrain comprises hilly areas
which are sparingly populated, the hills are generally covered with shrubs and grass and trees are not
found on the hilltops. Moreover the project area doesn’t fall under any protected land for wildlife and it
has no adverse ecological impacts on the surroundings, flora and fauna found in the vicinity of the project
area. The wind-farms do not effect the path of migratory birds.
>>
of the windmills. The local ecology is not likely to get impacted by this type of project activity. The local
population confirmed that there is no noise or dust nuisance due to windmills. The EIA also ruled out any
adverse impacts due to the project activity.

>>
>>
The comments from local stakeholders were invited through local stakeholder meeting conducted on 2
September at Arashinagundi Village, Hiriyur in Chitradurga District and 15 June 2006 in Dhoni,
Mundaragi in Gadag district. An advertisement was placed in a local newspaper in Vijaya Karnataka on
page 23
19 August 2006 inviting the local stakeholders for the meeting for the Chitradurga district projects and in
Vijaya Karnataka on 4 June 2006 for the Gadag district projects.
of Enercon and representative of Aditya Environmental Services (consultant to Enercon) in Chitradurga
district and representative of Care Sustainability (consultant to Enercon) in Gadag district. The minutes
of the two meetings are set out in Appendix 2.

>>
Chitradurga district:
The local stakeholders commented that the development of wind projects has helped the local villagers
and provided employment. Further, there is no impact of windmills on the rainfall in the region. The
local stakeholders queried Enercon if any afforestation work is being conducted, impact on ground water,
generation capacity of the machine, if public can purchase the machines and whether revenue land is used
wherever electricity overhead lines pass through.
The local villagers responded to the questions queries made by Enercon by stating that there is no noise
pollution as the projects are located in hilltops and away from villages. Further, there is no water draining
and soil erosion due to wind mills and there has been no problem with No cattle grazing in the hills.
There has been better food production due to better quality of electricity and less load shedding. There
has been no deforestation noticed except while road formation and installation of machines and no
damage or accidents during construction or erection.
Gadag district:
The local stakeholders commented that there is no adverse impact of wind project activities including no
adverse impact on livelihood. The local villages do not use the hill tops or slopes for cattle grazing.
There is no impact on ground water or supply of water to agriculture fields. There is no disturbance or
high noise level due to operation of the wind mills. There have been no accidents and no disturbance or
heavy traffic on account of wind mills. No dust emissions were observed at project site or in the
neighbourhood. The wind projects have not affected migratory path of birds. There have been local
employment opportunities. Improvement in quality of electricity supply has been observed.
The local stakeholders suggested that in addition to planting medicinal plants at the project site, Enercon
should also plant them at the down plains. Enercon should extend help to villagers by providing
“lift/transportation” and additional watchmen should be deployed to warn of forest fire.
>>
stakeholders in Chitradurga district:
• Enercon is carrying out afforestation work in all the hills where the wind turbines are installed.
page 24
• There is no impact on ground water due to wind mills.

• Generation capacity of wind mills is 800 kW.
• It is possible to purchase wind mills. In Maharashtra, farmers association has purchased one wind
machine.
• Revenue land is not being used wherever electrical overhead lines pass. Access to the land is
required only for line inspection in case of a fault.
stakeholders in Gadag district:
• Regarding planting medicinal plants, Enercon is currently doing it at the project site and would also
be planting on the slopes.
• Regarding assistance with transport, Enercon would do their best to provide help to the villagers in
the emergency cases.
• Regarding forest fire warning/safety, Enercon would be constructing a three feet trench on the slopes
and around the project site. It has also instructed watchmen and security guards to be vigilant and
provide warning in the cases of occurrences of forest fires.
page 25
Annex 1

Street/P.O.Box: A-9, Veera Industrial Estate, Veera Desai Road, Andheri (West)
Building: Enercon Towers
City: Mumbai
Country: India
Telephone: +91-22-5522 7794
FAX: +91-22-5692 1175
URL:
Represented by:
Salutation: Mr.
Last Name: Raghavan
Middle Name:
First Name: A
Mobile: +91-9820045724
Direct FAX: +91-22-5692 1175
Direct tel: +91-22-6692 4848 extn. 7169
Organization: Japan Carbon Finance, Ltd.

Street/P.O.Box: 6th Floor, 1-3 Kundankita, 4-chrome
Building: Chiyoda-ku
City: Tokyo
State/Region:
Postfix/ZIP: 102-0073
Country: Japan
Telephone: +81 3 5212 8870
FAX: +81 3 5212 8886
E-Mail: jcf@jcarbon.co.jp
URL: http://www.japancarbon.co.jp/
Represented by:
Title: Director General
Salutation: Mr.
Last Name: Ari
Middle Name:
First Name: Masato
Department: Carbon Finance Department
page 26
Mobile:
Direct FAX: +81 3 5212 8886
Direct tel: +81 3 5212 8878
Personal E-Mail: m-ari@jcarbon.co.jp
page 27
Annex 2
There is no ODA being used to fund the project activity.

page 28
Annex 3
The Operating Margin data for the most recent three years and the Build Margin data for the Southern
Region Electricity Grid as published in the CEA database are as follows:
Simple Operating Margin
tCO2e/GWh
Simple Operating Margin - 2003-04 1,009.37
Simple Operating Margin - 2004-05 1,003.76
Average Operating Margin of last three years 1,003.38
Build Margin
tCO2e/GWh
Build Margin 717.99
Combined Margin calculations
Weights tCO2e/GWh
Operating Margin 0.75 1003.38
Build Margin 0.25 717.99
Detailed information on calculation of Operating Margin Emission Factor and Build Margin Emission
Factor is available at www.cea.nic.in.
page 29
Annex 4
• Metering: Electricity supplied to the grid is metered by the Parties (KPTCL, Enercon and the
Project) at the high voltage side of the step up transformer installed at the Project Site.
• Metering Equipment: Metering equipment is electronic trivector meters of accuracy class 0.2%
required for the Project (both main and check meters). The main meter is installed and owned by the
Project, whereas check meters are owned by KPTCL. The metering equipment is maintained in
accordance with electricity standards prevalent in Karnataka. The meters installed are capable of
recording and storing half hourly readings of all the electrical parameters for a minimum period of 35
days with digital output.
• Meter Readings: The monthly meter readings (both main and check meters) is taken jointly by the
parties on the first day of the following month at 12 Noon. At the conclusion of each meter reading an
appointed representative of KPTCL and Enercon sign a document indicating the number of Kilowatt-
hours indicated by the main meter.
• Inspection of Energy Meters: All the main and check energy meters (export and import) and all
associated instruments, transformers installed at the Project are of 0.2% accuracy class. Each meter is
jointly inspected and sealed on behalf of the Parties and is not to be interfered with by either Party
except in the presence of the other Party or its accredited representatives.
• Meter Test Checking: All the main and check meters are tested (and calibrated if found necessary)
for accuracy on annual basis with reference to a portable standard meter. The portable standard meter
is owned by KPTCL. The main and check meters shall be deemed to be working satisfactorily if the
errors are within specifications for meters of 0.2 accuracy class. The consumption registered by the
main meters alone will hold good for the purpose of metering electricity supplied to the grid as long
as the error in the main meters is within the permissible limits.
If during the meter test checking,

• the main meter is found to be within the permissible limit of error and the corresponding check
meter is beyond the permissible limits, then the meter reading will be as per the main meter as
usual. The check meter shall, however, be calibrated immediately.
• the main meter is found to be beyond permissible limits of error, but the corresponding check
meter is found to be within permissible of error, then the meter reading for the month up to the
date and time of such test shall be as per the check meter. There will be a revision in the meter
reading for the period from the previous calibration test up to the current test based on the
readings of the check meter. The main meter shall be calibrated immediately and meter reading
for the period thereafter till the next monthly meter reading shall be as per the calibrated main
meter.
• both the main meters and the corresponding check meters are found to be beyond the permissible
limits of error, both the main meters shall be immediately calibrated and the correction applied to
the reading registered by the main meter to arrive the correct reading of energy supplied for
metering electricity supplied to the grid for the period from the last month’s meter reading up to
page 30
the current test. Meter reading for the period thereafter till the next monthly reading shall be as
per the calibrated main meter.
• If during any of the monthly meter readings, the variation between the main meter and the check
meter is more than the permissible limit for meters of 0.2% accuracy class, all the meters shall be
re-tested and calibrated immediately.
page 31
For sub-Projects 1 to 14
page 32
For sub-Projects 15 to 18
page 33
Public Consultation Meeting for Wind Farm Projects as Clean Development Mechanism Projects at
sites – CK 1&2, Gim Sites and VVS, Chitradurga District, Karnataka State.
Venue: Enercon (India) Limited, CK 1 & 2 Site, Arashinagundi Village, Hiriyur, Chitradurga Dist.
Date: 02nd September 2006, 10 am – 12 pm
Members from the Villages:

1. Sri. Thimmanna
2. Sri. Kanumappa
3. Sri. Rajappa
And 19 participants from the village.
Members from Enercon (India) Ltd., Chitradurga

1. Mr. C.B.Poonacha
2. Mr. Sajith
3. Mr. Fathahulla
4. Mr. Naveen Kumar
5. Mr. Ravidhara
Members from Enercon(India) Ltd., Mumbai

1. Mr. Vivek Sen
2. Mr. Neeraj Gupta
Members from Aditya Environmental Services Pvt. Ltd.

1. Mr. Gurmeet Singh
Agenda of the Meeting:

1. Welcome Address and Introduction
2. Project Profile, CDM, Environmental and social issues
3. Description about Wind Energy Conversion.
4. Suggestions and Opinions
5. Queries and Responses from the Stakeholders and Co. Authorities respectively.
6. Vote of Thanks.
1. Welcome Address: In the Welcome Address, Mr. C.B.Poonacha has briefed about the purpose of
this Public Meeting, how Wind Mills and Wind Energy are occupied major role in generating
power thereby rural population is benefited. Further he was pointing out how the benefits of
employment opportunities, economical growth taken place in the areas. And also he has quoted
examples of various social and religious activities taken up in the villages, for ex. construction of
temples, roads through villages etc.
Then Mr. C.B.Poonacha invited Mr. Thimmanna, Village Panchayat leader to preside over the
meeting and conducts the further proceedings. And also he has invited village leaders viz. Mr.
Kanumappa and Mr. Rajappa on the dias.
page 34
2. Project Profile:
Mr. Md. Fathahulla: Mr. Md. Fathahulla has described about the Wind Mills and how the Wind
Power is generated, why it is called Green Energy and our project is emission free and it is
pollution free energy when compared with Thermal power. He reiterated that in Thermal Power,
carbon would be emitted into the air, which causes air pollution. He said that the public would
not have any bad impact by the Wind Mills. When asked by the villagers about the clouds
running away due to running of Wind Mills and thereby causing deficiency in rainfall, Mr.
Fathahulla has cleared the doubts of the stakeholders by convincing them about the height of the
clouds and the height of the Wind Mill Erector. He said we are conducting aforestation and
drainage work to eradicate the soil erosion from the hills. He also informed that the co-operation
by the villagers required for successful completion and service of Wind Mills.
Mr. Ravidhara: Mr. Ravidhara has described to the villagers how the power is converted from
Wind to Electricity and how the generators are running and generate electricity power. And also
he has specified where the generated power will be transmitted and at what rate. He has told
about the safety measures taken in our Wind Erectors and automatic stoppage of m/c with more
rpm in order to avoid any untoward incidence.
3. President’s Address:
a) Sri. Thimmanna who has presided over the meeting has informed the villagers about how
Wind Mills are helped our Villagers and Farmers, benefits to the unemployed one. And
we have benefited more from wind mills rather loss of any kind. He also strongly quoted
that “The economic and social life has changed due to wind mills in and around
Chitradurga Villages. He extended fullest cooperation for development of such activities
and also stated that lack of rainfall in the region is not due to Wind Mills. Since last two
years we had plenty of rainfall. He also pledged that the cooperation from our villagers is
there in future also and sought the same from Enercon.
b) Sri. Kanumappa has accepted that the temple work is been completed by Enercon only
and praised about the social and religious activities by Enercon. Eco friendly project like
wind power should come up in all villages which will not harm any environmental
balancing, he specified.
c) Sri. Rajappa, who has told that there was no rainfall shortage due to Wind Mills.
Questionnaire:
a) By the Stakeholders:
i) Are you conducting afforestation work in the hills where the plants are removed?
Ans: Yes, We are doing afforestation work in all the hills where M/cs are installed.
ii) Are there any chances of drying up Ground Water?
Ans: No, Wind Mills do not use any ground water for its process.
iii) What is the generation capacity of the Machine?
Ans: 800 KW per hour.
iv) Is there any scope of purchasing machine by the public?
Ans: Yes, In Maharashtra farmers association has purchased one machine.
v) There is a rumour that revenue land is used wherever the electrical line passes
through? Is it true?
Ans: No, Only line inspection will be done.
page 35
b) By the Company:
i) Is there any Noise Pollution by running the Wind Mills?
Ans: So far no idea. But as it is in hilltops and away from villages such nuisance may not
happen.
ii) Is there any water draining, soil erosion due to Wind Mills?
Ans: No, such incidence not occurred.
iii) Is there any problem for animals grazing in the hills?
Ans: No, Cattle are grazing in hill areas as usual.
iv) How Wind Mills helped in improvement of Crops?
Ans: By increase in voltage capacity and less load shedding results in increase in food grain
production.
v) Have you observed any deforestation problem?
Ans: No, Except while forming the roads and installing the machines, there found no
deforestation is taken place.
vi) During construction or erection any damages or accidents occurred?
Ans: Absolutely not. The Project work is taken up very smoothly and run with more safety
standards.
For further queries the representatives from ENERCON put forward to the participants that they could
raise any queries within a week and the same can be submitted at ENERCON Office, Bangalore as the
address mentioned in the Paper Notification on 19th Aug. 2006.
Vote of Thanks: Mr. Naveen Kumar thanked the village leaders and villagers who have set aside their
work and shown interest and eagerness to know about the Wind Mills. He also sought cooperation from
all the corners for successful operation of windmills thereby achieving the National Target of self-
sufficiency in Power Sector.
page 36
MINUTES OF THE PUBLIC CONSULTATION STAKEHOLDERS

MEETING HELD AT GADAG, KARNATAKA ON 15/06/06
Venue: The meeting is held at Panchayat office, Dhoni, Mundaragi, GADAG, which is about Nine Km.
From the project site.
The meeting has begun at 3:30pm. There are more than forty people attending the meeting. The
participants are the people from the villages surrounding the project site- Dambal, Dhoni-Thanda,
Kadampura, Katkol, HireVaddatti. Other participants are the panchayat officials- President and Vice
President, Representatives from ENERCON, and CARE SUSTAINABLILTY
The language of meeting is Kannada. In between Hindi was also used.
The meeting began with the appointment of chairman for the meeting Mr. K.S. Narayanpur. The agenda
for the meeting has been as follows:
• Welcome to the participants (by representatives from ENERCON)

• Brief to the participants about the project and CLEAN DEVELOPMENT MECHANISM (CDM)
• Questions and answers: concerns/issues/comments/ about the project and related matters by the
participants
• Response from ENERCON
• Announcement by the representatives of ENERCON
• Vote of thanks
The list of the participants with their names and signature are in attached sheet.
The meeting proceeded as per agenda
Table below gives the concerns/issues/comments from the participants and response from ENERCON
Sr. Questions/concerns/issues/com Details of concerns/issues/comments Response from
No ments relating to the CDM expressed by the participants ENERCON
activity
1 How does the project impact All participants expressed that the -
the general quality of the people establishment of the wind units do not
adversely affect them (villagers around
the project). In brief the projects neither
adversely nor bring significant benefits to
them.
All of them expressed they are happy
with the project activity
2 Any impact on the livelihood of Villagers expressed that their livelihood -
the villagers have not been impacted adversely by the
establishment of the wind units.
The hill tops or slopes have not been used
by them for grazing the cattle.
3 Does the project increase the The following facts have been given by
employment opportunities the villagers. For locals with
During the construction stage, most of the ITL(technical
page 37
laborers have been locals. training)

During operation stage, at present out of qualifications,
the six local technical staff, two of them ENERCON does
at present are locals. provide employment
All security staff are locals. The drivers in technical category.
are locals. Most of the unskilled
workers are locals.
4 Does the project improves the Improvements in the voltage fluctuations Conditions of
electricity supply to villagers/ and supply are observed. KPCL has electricity and
neighborhood areas established a Sub Station at Dambal voltage fluctuations
There are more than six hundred water have improved this
pumps (for agricultural activities ) in the year compared to last
neighborhood. Operations of them have year, and is expected
become for time and without fluctuations to improve further.
at present Only KPCL and
ENERCON have the
functioning wind
units at the present.
5 Would the project result in Water Table has decreased in recent -
drinking water shortage/ times in the neighborhood agricultural
increase in shortage of water for areas. Villagers themselves have
agriculture expressed that this is not due to the
establishment of wind units, but due to
the increase in the agricultural activities
and number of bore wells in the areas.
6 Would the erection of the wind Villagers expressed that no stoppage of -
unit result in stoppage of water the water due to the construction of the
to agricultural field units and the approach roads to the wind
units.
7 Would the project increase the Villagers expressed that there is no -
noise level in the neighborhood disturbance nor high noise levels are
areas and affect the villagers present due to the operation of the wind
units
8 Any occurrence of accidents. Villagers expressed that no accidents so -
Would the project increase far have occurred. Also no disturbance or
undesirable vehicular traffic heavy traffic due to the establishment of
during construction or during wind units
operation phase
9 Would the project increase dust During the construction nor the operation -
particles stage, no dust emissions are observed in
the project sites nor the neighborhood
10 Tree/ plantations Villagers suggested that planting of the ENERCON is
medicinal plants could be carried out at planting medicinal
the down plains. plants at the project
site. They would also
be planting on the
slopes.
11 Social welfare activities Villagers expressed that help should be ENERCON would
page 38
extended to villagers by providing do their best ot

“lifts”/transportation, when they request provide help to the
during cases like “deliveries” cases etc. villagers in the
emergency cases.
12 Forest fire Villagers expressed fear about the ENERCON told
occurrence of forest fire on the hills. (last about the efforts
year there was heavy forest fire on the being made by them.
hill tops). “Kalpatamallaiah” temple They would be
which is worshipped by the villagers is constructing a three
located on the hill. feet trench on the
There should be additional watchmen to slopes and around
be deployed by ENERCON for warning the project site. Also
the villagers in the event of forest fire. watchmen and
security guards have
been instructed to be
vigilant and provide
warning in the cases
of occurrences of
forest fires
13 Does any disturbance to Avi Villagers expressed that due to the -
fauna occur due to the wind increased usage of pesticide in the
units? agricultural areas in the neighbourhood
there is a decrease in the birds due to the
lack of insects/worms etc.
There is no bird’s migratory path in the
areas
The representative of ENERCON announced that if the villagers or the participants stiil wish to bring to
notice of ENERCON any further issues/concerns/comments about the wind farms owned by ENERCON,
they may approach and convey to their respective representative Mr. Mahesh Arali located at the project
site. The response could be made during the next one month starting from the sate of 15/06/06
The meeting closed with giving thanks to all the participants and the chairman of the meeting.
CDM – Executive Board page 39
Appendix 3
Equity IRR of all sub projects
No. of Date of Interest rate loan tenure Equity IRR Equity IRR
Name of Customers Type of Mc MW Projet Cost Debt % Equity %
Mc Comissioning % (Yrs) (Without CDM) (With CDM)
Enercon Wind Farms (Chitradurga) Ltd 0.80 11 8.80 May-06 440.0 70.0% 30.0% 8.5% 10.00 10.86% 13.35%
Panama Business Centre 0.80 2 1.60 Mar-06 76.0 75.0% 25.0% 9.0% 12.00 11.56% 15.07%
Balasahab Ladkat 0.80 2 1.60 Mar-06 76.0 75.0% 25.0% 9.0% 12.00 11.56% 15.07%
Elpro International 0.80 1 0.80 Mar-06 38.0 70.0% 30.0% 10.8% 7.00 9.19% 11.33%
Gautam Ladkat 0.80 1 0.80 Mar-06 38.0 75.0% 25.0% 9.0% 12.00 11.56% 15.07%
Panama Infrastructure 0.80 2 1.60 Mar-06 76.0 75.0% 25.0% 9.0% 12.00 11.56% 15.07%
Sameer Ladkat 0.80 1 0.80 Mar-06 38.0 75.0% 25.0% 9.0% 12.00 11.56% 15.07%
Steelfab Offshore 0.80 1 0.80 Mar-06 38.5 65.0% 35.0% 12.5% 9.00 7.51% 9.69%
MK Agrotech Private Ltd 0.80 2 1.60 Jun-06 76.0 70.0% 30.0% 10.5% 7.00 10.45% 12.56%
Srinivas Sirigeri 0.80 1 0.80 Mar-06 36.3 0.0% 100.0% 0.0% - 9.80% 11.08%
R.K.Marbles 0.80 1 0.80 Mar-06 37.8 0.0% 100.0% 0.0% - 9.13% 10.37%
Dempo Industries 0.80 1 0.80 Mar-06 37.3 0.0% 100.0% 0.0% - 9.34% 10.59%
Desai Brothers 0.80 1 0.80 Mar-06 38.0 0.0% 100.0% 0.0% - 9.05% 10.28%
Dewanchand Ramsaran 0.80 1 0.80 Mar-06 37.0 70.0% 30.0% 8.5% 5.00 10.94% 12.94%
Abhilash Garments & Estates (P) Ltd 0.80 1 0.80 Dec-06 38.0 0.0% 100.0% 0.0% - 9.31% 10.62%
Prasad Global Solutions 0.80 2 1.60 Dec-06 76.6 0.0% 100.0% 0.0% - 9.18% 10.48%
Gangadhar Narsingdas Agarwal 0.80 5 4.00 Dec-06 195.0 70.0% 30.0% 10.5% 8.00 8.99% 11.37%
Siddaganga Oil Extractions Ltd. 0.80 2 1.60 Dec-06 78.0 58.0% 42.0% 10.8% 5.00 9.00% 10.78%
Total 30.40

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Jamnagar Wind Power Projects, India

Project Design Documents

1. Bundled wind energy power projects (2004 policy) in Rajasthan

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

Appendix 1: Location Map

Appendix 2: Minutes of local stakeholder meeting

CDM – Executive Board

SECTION A. General description of project activity

A.1 Title of the project activity:

A.2. Description of the project activity:

Contribution to sustainable development

CDM – Executive Board

• contribution towards meeting the electricity deficit in Rajasthan;

A.3. Project participants:

The contact details of the entities are provided in Annex – 1.

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:

Years Annual estimation of

CDM – Executive Board

Years Annual estimation of

A.4.5. Public funding of the project activity:

SECTION B. Application of a baseline and monitoring methodology

CDM – Executive Board

Source Gas Included? Justification/ Explanation

power plants connected to CH4 Excluded This source is not required to be

CDM – Executive Board

N2O Excluded This source is not required to be

the Project CH4 Excluded any direct GHG emissions.

CDM – Executive Board

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

Step 2: Investment Analysis

CDM – Executive Board

CDM – Executive Board

Capacity of Machines in kW 800

CDM – Executive Board

Plant Load Factor - 10th to 13th year 21.45%

Project Cost Rs Million

Means of Finance Rs Million

Income Tax Depreciation Rate (Written Down Value basis)

Book Depreciation Rate (Straight Line Method basis)

CDM – Executive Board

Crediting period starts 1-Apr-07

Baseline Emission Factor for Northern Region (tCO2/GWh) 924.96

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