aarone group 10mw solar dpr

8/9/2019 Aarone Group 10MW Solar DPR

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Aarone Developers

2012-13

Detailed project report10MW Solar Power Park at Indore

Hamaralakshya Construction Pvt. Ltd.

46LGF Jor Bagh

New Delhi 110003


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TABLE OF CONTENTS

1.

Executive summery

2. Introduction

3. Detail of project

4.

Location of project

5. Technical specification & Technology

6. Financial analysis

7. Environmental and social impact

8. Operation and maintenance

Annexure -1: Solar park GA

Annexure -2: Single line diagram


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1. Executive Summary

The Aarone Group is a leading, Delhi based, real estate development group, with over 20years of experience in developing residential and commercial projects. Established in 1988, it has adiverse portfolio of over 100 completed projects.

The Aarone Group started with developing niche/ boutique and exclusive residences inprestigious locations of New Delhi like Golf Links, Jor Bagh, Vasant Vihar, Panchsheel Park andsoon moved on to large scale commercial projects. The Group has extensive experience indevelopment of custom-built homes, with focus on timelines, quality and constructionmanagement.

The Group's flagship project is the $130 million, 1.4 million sq. ft. mixed-use developmentin the heart of South Delhi , Select CITYWALK, under a joint venture company, SIPL. SelectCITYWALK is a Town Centre in Saket, New Delhi, comprising a shopping centre, multiplex,

offices, serviced apartments, luxury retail, a 100,000 sq. ft. outdoor plaza and parking space forapproximately 2,000 cars. It is a vibrant, upscale, unique shopping & leisure environment in theheart of South Delhi. The shopping centre has bagged the award for the Most Admired ShoppingCenter in India for the years 2008, 2009 & 2010.

The Group is continuously striving to reach greater heights by implementing niche projectssuch as COUNTYWALK a 225 acre integrated township in Indore, CYBERWALK, a 1.8 millionsq ft eco IT office complex in Manesar, Gurgaon, a shopping mall project in Jammu, Resort andHealth Centre in Mussoorie, a large residential project in Delhi under MPD 2021 and many more in

pipeline.

The Group's philosophy is to excel in field of real estate development by introducinginnovative concepts, and by achieving the highest levels of quality, customer care and satisfaction.The Group is headed by its Chairman Mr. Yog Raj Arora, also a noted Chartered Accountant. Atrue visionary, he has been instrumental in development of the Select Citywalk a benchmark initself for mall developers all over the country.

Countywalk , a 250 acre integrated township in Indore, is designed as a self sufficient gatedcommunity with Residential, Commercial and Recreational areas and facilities for health andeducation. Countywalk in Indore is awash in green with stretches of deciduous and evergreen trees,golf-putting greens and gardens with cafs. Breathe clean, fresh air every day of your life incheerful environment of this eco-friendly township in Indore. It provides an excellent opportunity

for investors to make the best of your investment in plots, villas and garden-houses. Enjoy theuninterrupted spaces with wide roads, from from traffic signals, floral roundabouts with fountains.

Countywalk has fast emerged as the fastest selling and among the best townships in Indoreboth in terms of design, overall development and investment appreciation. As per colonycommitment of supply of 24hr power to colony we developed the 10MW solar power plant near tothe Indore a village name manglia for the future aspect. The state of Madhya Pradesh is not

blessed with a good potential of wind energy. We have an excellent potential of solar energy inthe state-approximately 300 sunny days in a year. This brings us to a hybrid regime of solar &grid energy to keep our Colony well lit round the year.


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We will require finance for meeting our need of solar electrical energy as all equipments forthis will be procure from the market by adopting suitable purchase procedure. We have sufficientexpertise in designing electrical systems to meet our needs. Hamaralakshya Construction Pvt. Ltd.has designed a solar power park to meet the desired power requirements of colony specifically forthe summer day when MPPKVVCL having shortage of power. The system is indigenouslydesigned and tested. Our financial need is the initial equipment cost and subsequent periodic

maintenance. However it shall be absolutely essential to have our solar system in the hybrid modewith electricity grid for taking care of the lean season (Cloudy days).

The 10MW Solar park is capable of taking power in colony and also work for the generatethe renewable energy certificate this may reduced the cost of the park. The unit cost from takingfrom the MPPKVVCL around 4 Rs to 5 Rs depends upon the load factor and power factormaintained by the colony substation. The generation cost of the power from the solar park is around7 -8 rs different form to time to time. The power rate higher in future and MPPKVVCL taking thehuge charge for upgrading and to getting power from government entity is very difficult.

Salient features of the Park

1. Locationa. State: Madhya Pradesh

b. Village: Mangaliac. Latitude: 22 4705.4Nd. Longitude: 75 5638.4E

2. Area for the Parka. Solar PV Area: 30 acre

b. Green area : 2 acre

c. Building and others area: 1 acre

3. Solar Parka. Output : 10 MW

b. No. Of modules: 16,879c. No. Of Inverter : 10d. Outgoing Line voltage: 33KV

4. Grid Connected Detail

To be connected with mangalia 132/33kv Substation with installation of one number

of bay in the substation and 2km of 33kv line.


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2. Introduction

Energy from the Sun not only sustains life on earth but is also the source of almost all formsof energy used by man. Fossil fuels such as coal and oil represent solar energy that was received onearth millions of years ago and converted into other forms. Renewable sources of energy such aswind, hydropower, biomass and ocean energy are also indirect forms of solar energy.

Solar energy, experienced by us as heat and light, can be used in a number of ways and formany applications. The two Principal routes and technologies of solar energy utilization are:

The thermal route using the heat for heating, cooling, drying, water purification and powergeneration;

The photovoltaic route which converts the light into electricity which can then be used for avariety of purposes such as lighting, pumping, communications and refrigeration etc.

Harnessing of non polluting renewable energy resources to control green house gases isreceiving impetus from the government of India. The solar mission, which is part of the NationalAction Plan on Climate Change has been set up to promote the development and use of solarenergy in for power generation and other uses with the ultimate objective of making solar energycompetitive with fossil-based energy options. The solar photovoltaic device systems for powergeneration had been deployed in the various parts in the country for electrification where the gridconnectivity is either not feasible or not cost effective as also some times in conjunction with diesel

based generating stations in isolated places and communication transmitters at remote locations.

With the downward trend in the cost of solar energy and appreciation for the need for developmentof solar power, solar power projects have recently been implemented. A significant part of the large

potential of solar energy in the country could be developed by promoting grid connected solarphotovoltaic power systems of varying sizes as per the need and affordability coupled withensuring adequate return on investment. It has been proposed to set up a 10MWp grid connectedsolar photovoltaic power park on the fixed mounting structure at mangalia village at IndoreMadhya Pradesh.

Energy from Sun has many features, which make it an attractive option such as itswidespread distribution, pollution-free nature and virtually inexhaustible supply. India receivessolar energy equivalent to over 5,000 trillion KWh / year which is far more than the total energyconsumption of the country. The daily average solar energy incident varies from 4 - 7 KWh / m2depending upon the location. There are around 250 - 300 Sunny days in most parts of the country.If 1% of the total land area is used to generate electricity from this radiation at a net efficiency ofonly 1%, it will be possible to produce about 300,000 MW of power.

The potential of the solar energy in meeting the growing energy needs of the country wasrecognized in mid 70s. Research and development efforts in both solar thermal and photovoltaicroutes were initiated. Several applications were developed and demonstrated during the 80s. Theseefforts received an impetus with the establishment of Ministry of New & Renewable EnergySources (MNRE). The Ministry's programmes helped in R&D, demonstration, commercialization

and utilization activities in respect of a wide variety of renewable energy technologies. Theprogrammes are implemented through a network of state level agencies, industrial, research andacademic organizations and non-governmental bodies.


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India has one of the world's largest programmes in solar energy. A sizeable research andtechnology base, a growing manufacturing capability and a countrywide infrastructure for thedistribution and after-sales service of solar energy products have emerged. Solar energy is

beginning to be used for a large number of applications. Nevertheless, the achievements so far addup to only a tiny fraction of what is possible. The efforts initiated during the last few years byMNRE to restructure the programmes and giving them a market orientation are contributing

significantly in accelerating the utilization of solar energy commercially in the country.


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3. Detail of the project

The proposed project reports is undertaken by Aarone Group and involves installation andoperation of a new grid connected solar photovoltaic (PV) technology based power plant at IndoreDistrict in Madhya Pradesh state of India. The purpose of the project activity is to use solar energyfor generation of electricity and export to the regional electricity grid. The installed capacity of thesolar PV power plant would be 10 MWp and would consist of 42,768 polycrystalline solar PVmodules of 240 Wp.

The electricity generated from the project activity would be exported to the 33kV MangliaSubstation of MPPKVVCL through a transmission line and then will be delivered to the North-East-West- North East (NEWNE) Grid, which is dominated by coal-fired power plants. Theexpected annual net electricity delivered to the grid by the proposed project activity is 17,713 MWhand the emission reductions are estimated to be on average 16,879 tonnes of CO2 equivalent(tCO2e) per year, and 118,148 tCO2e over the chosen crediting period.

In the absence of the project activity, the solar energy would have remained unutilized.Further, as per the approved consolidated methodology ACM0002 (Version 12.3.0), the baselinescenario for the project activity is Electricity delivered to the grid by the project activity would

have otherwise been generated by the operation of grid-connected power plants and by the additionof new generation sources, as reflected in the combined margin (CM) calculations described in theTool to calculate the emission factor for an electricity system. Therefore, the electricity exported

by the proposed project activity would displace an equivalent amount of electricity generated by thepower plants already operational and proposed to be added in the NEWNE Grid which reliespredominantly on fossil fuels.

The Ministry of Environment and Forests (MoEF), Govt. of India has stipulated the

following indicators for sustainable development in the interim approval guidelines for CDMprojects.


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4. Location of project

Region/State

State: Madhya Pradesh

City/Town

District: Indore

Physical/Geographical location

The proposed site is located at manglia Village, devas naka Taluka, Indore District, MadhyaPradesh State, India. The coordinates of project site are:

Latitude: 22 4705.4N

Longitude: 75 5638.4E


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5. Technical Specification & Technologies

The proposed project will generate electricity and deliver it to the NEWNE grid using solarenergy, which is a clean and non-polluting source of renewable energy, resulting in reduction ofCO2 emissions and other pollutants.

Technology of the project activity:

The rated capacity of the proposed solar PV power plant will be 10MWp. The detailedtechnical specification at given below

Solar PV Module: Polly-Crystalline solar PV modules manufactured by Goldi Green Solar havebeen selected for the project activity. The details of modules to be installed are:

Parameters Value

Manufacturer Goldi Green Solar

Cell Type Polycrystalline

Model Goldi 250PM | Poly

Modules Wattage 240Wp

No. of modules 42,768

Specification: Solar PV Module

The PV modules used should be made in India. The PV modules used must qualify to thelatest edition of IEC PV module qualification test or equivalent BIS standards Crystalline SiliconSolar Cell Modules IEC 61215/IS14286. In addition, the modules must conform to IEC 61730 Part-1- requirements for construction & Part 2 requirements for testing, for safety qualification or

equivalent IS. For the PV modules to be used in a highly corrosive atmosphere throughout theirlifetime, they must qualify to IEC 61701/IS 61701. The total solar PV array capacity should not beless than allocated capacity (kWp) and should comprise of solar crystalline modules of minimum180 Wp and above wattage. Module capacity less than minimum 180 watts should not be accepted.Protective devices against surges at the PV module shall be provided. Low voltage drop bypassdiodes shall be provided. PV modules must be tested and approved by one of the IEC authorizedtest centres. The module frame shall be made of corrosion resistant materials, preferably havinganodized aluminium. The bidder shall carefully design & accommodate requisite numbers of themodules to achieve the rated power in his bid. SECI/owners shall allow only minor changes at thetime of execution. Other general requirement for the PV modules and subsystems shall be theFollowing:

1. The rated output power of any supplied module shall have tolerance of +/- 3%.


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Inverter efficiency(minimum) : >93% ( In case of 5kW or above )

Inverter efficiency (minimum ) : > 90% (In case of less than 5 kW)

THD : < 3%

PF : > 0.9

Three phase inverter shall be used with each power plant system but In case of less than.Inverter shall be capable of complete automatic operation including wake-up, synchronization &shutdown. The output of power factor of inverter is suitable for all voltage ranges or sink ofreactive power; inverter should have internal protection arrangement against any sustainable faultin feeder line and against the lightning on feeder. Built-in meter and data logger to monitor plant

performance through external computer shall be provided. The power conditioning units / invertersshould comply with applicable IEC/ equivalent BIS standard for efficiency measurements andenvironmental tests as per standard codes IEC 61683/IS 61683 and IEC 60068- 2(1,2,14,30)/Equivalent BIS Std. The charge controller/ MPPT units environmental testing should qualify IEC60068-2(1, 2, 14, 30)/Equivalent BIS std. The junction boxes/ enclosures should be IP 65(foroutdoor)/ IP 54 (indoor) and as per IEC 529 specifications. The PCU/ inverters should be testedfrom the MNRE approved test centres / NABL /BIS /IEC accredited testing- calibrationlaboratories. In case of imported power conditioning units, these should be approved byinternational test houses.

JUNCTION BOXES (JBs)

The junction boxes are to be provided in the PV array for termination of connecting cables.The J. Boxes (JBs) shall be made of GRP/FRP/Powder Coated Aluminium /cast aluminium alloywith full dust, water & vermin proof arrangement. All wires/cables must be terminated through

cable lugs. The JBs shall be such that input & output termination can be made through suitablecable glands. Copper bus bars/terminal blocks housed in the junction box with suitable terminationthreads Conforming to IP65 standard and IEC 62208 Hinged door with EPDM rubber gasket to

prevent water entry. Single compression cable glands. Provision of earthings. It should be placed at5 feet height or above for ease of accessibility. Each Junction Box shall have High quality Suitablecapacity Metal Oxide Varistors (MOVs) / surge arrestors, suitable Reverse Blocking Diodes. TheJunction Boxes shall have suitable arrangement monitoring and disconnection for each of thegroups. Suitable markings shall be provided on the bus bar for easy identification and the cableferrules must be fitted at the cable termination points for identication

Power Evacuation: The direct current from the photo voltaic modules will be converted intoalternating current by the inverters. This exportable power will be stepped up to 33kV by 10

number of 1.25MVA, 33/11KV transformers to be located in the proposed 33kV plantswitchyard and paralleled with the MPPKVVCL substation at Manglia Village.

Capacity Utilisation Factor: As per the Detailed Project Report prepared by HamaralakshyaConstruction Pvt. Ltd., the average PLF for the first year of operation is estimated to be20.22%.

The technical life of the solar PV Power plant is 25 years.


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better, along with calibration certificate) provided, with the sensor mounted in the plane of thearray. Readout integrated with data logging system. Temperature: Temperature probes forrecording the Solar panel temperature and ambient temperature to be provided complete withreadouts integrated with the data logging system

The following parameters are accessible via the operating interface display in real time

separately for solar power plant:

a. AC Voltage.b. AC Output current.c. Output Powerd. Power factor.e. DC Input Voltage.f. DC Input Current.g. Time Active.h. Time disabled.i. Time Idle.

j. Power producedk. Protective function limits (Viz-AC Over voltage, AC Under voltage, over frequency, underfrequency ground fault, PV starting voltage, PV stopping voltage.

All major parameters available on the digital bus and logging facility for energy auditingthrough the internal microprocessor and read on the digital front panel at any time) and loggingfacility (the current values, previous values for up to a month and the average values) should bemade available for energy auditing through the internal microprocessor and should be read on thedigital front panel. PV array energy production: Digital Energy Meters to log the actual value ofAC/ DC voltage, Current & Energy generated by the PV system provided. Energy meter along with

CT/PT should be of 0.5 accuracy class. Computerized DC String/Array monitoring and AC outputmonitoring shall be provided as part of the inverter and/or string/array combiner box or separately.

String and array DC Voltage, Current and Power, Inverter AC output voltage and current(All 3 phases and lines), AC power (Active, Reactive and Apparent), Power Factor and AC energy(All 3 phases and cumulative) and frequency shall be monitored. The time interval between twosets of data shall not be more than 10 minutes. (A min. of 6 samples of data shall be recorded perhour) Data Acquisition System shall have real time clock, internal reliable battery backup (2 hours)and data storage capacity to record data round the clock for a period of min. 1 year. ComputerizedAC energy monitoring shall be in addition to the digital AC energy meter. The data shall berecorded in a common work sheet chronologically date wise. The data file shall be MS Excel

compatible. The data shall be represented in both tabular and graphical form. All instantaneous datashall be shown on the computer screen. Software shall be provided for USB download and analysisof DC and AC parametric data for individual plant.

Provision for Internet monitoring and download of data shall be also incorporated. RemoteServer and Software for centralized Internet monitoring system shall be also provided for downloadand analysis of cumulative data of all the plants and the data of the solar radiation and environmentmonitoring system. Solar Radiation and Environment Monitoring System Computerized solarradiation and environment monitoring system shall be installed on one of the buildings along withthe solar PV power plant. The system shall consist of various sensors, signal conditioning, data

acquisition, LCD display and remote monitoring. Global and diffuse beam solar radiation in theplane of array (POA) shall be monitored on continuous basis. Ambient temperature and relativehumidity near PV array, control room temperature, at the level of array plane shall be monitored oncontinuous basis. Solar PV module back surface temperature shall be also monitored on continuous


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basis. Simultaneous monitoring of DC and AC electrical voltage, current, power, energy and otherdata of the plant for correlation with solar and environment data shall be provided. Solar radiationand environment monitoring system shall have real time clock, internal reliable battery backup anddata storage capacity to record data round the clock for a period of min. 1 year.

The data shall be recorded in a common work sheet chronologically date wise. The data fileshould be MS Excel compatible. The data shall be represented in both tabular and graphical form. Allinstantaneous data shall be shown on the computer screen. Historical data shall be available for USBdownload and analysis. Provision for Internet monitoring and download of data shall be incorporated.

Remote Monitoring and data acquisition through Remote Monitoring System software at the owner/SECI location with latest software/hardware configuration and service connectivity for online / realtime data monitoring/control complete to be supplied and operation and maintenance/control to beensured by the supplier. Provision for interfacing these data on SECI server and portal in future.

TRANSFORMER

This specification covers the 415/33kv transformer which is use for the solar power inverter.They are to be provided in substations on secondary side of transformer. The switchboard shallcomprise of MS outdoor housing containing incoming and outgoing feeders to match with the capacityof the Distribution Transformer. LT switchboard shall be provided with insulated handles. The box shallhave two compartments each lockable separately. The LT connections through copper cable/conductorfrom LT bushing of DT shall terminate at porcelain fuse. The output from porcelain fuse shall beextended to the lower compartment of the box. In the lower compartment, LT buses including neutral

bus shall be mounted. All outgoing LT feeders (numbers to be decided by utility based on number ofservice connection/ outgoing feeders) shall emanate from LT buses get connected to LT feeder through

respective porcelain fuses. Suitable no. of holes with cable glands along with IS approved gaskets shallbe provided in the lower compartment of the distribution. Neoprene Rubber gasket shall be used in thedoor to avoid ingress of moisture and other elements in the distribution box. The distribution box shallhave painting as per relevant IS standards. The Switchboard shall be made of MS of thickness not lessthan 2.5 mm. door panel and 4 mm Body panel and shall be dust, moisture, vermin and weather proofwith degree of protection IP 55 as per IS: 13947 suitable for outdoor use. Box shall be mounted ondistribution transformer / pole structure. All parts, doors, movable covers and panels shall be fitted all

around with neoprene gaskets. The gaskets shall be provided along a channel on periphery of thedoors and covers. Ventilating louvers shall be provided with brass screen and filters. TheSwitchboard shall have neat appearance inside and outside with all equipment mounted flushhaving no visible welds, with all exterior surfaces even and smooth.

The door is to be provided in front with internal hinges. Cable entries shall be from bottom. Cablegland plate and gland shall be provided at the bottom plate. The wiring shall be such that terminalsare accessible by use of ordinary tools. Connections shall be provided with adequate clearance toavoid short circuits and risk of fire and ease in connection and disconnection. All internal wiringshould be with fire resistance low smoke PVC insulated cables of copper core size 2.5 sq. mmminimum complying with IS: 1554. TECH. SPECIFICATION FOR LT SWITCH BOARD FORDIST. TRF.

i. GOVERNING STANDARDS

The equipment will be manufactured in conformity with the following Indian StandardSpecification (latest editions).


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IS:2950 A.C. ConnectorsIS:8623/1993 Low Voltage Switchgear and Control gear AssembliesIS:9676/1980 Temperature weather condition.

ii. BUS BAR AND CONNECTIONS

Phase and neutral bus bar shall be provided along with links and connectors of electrolyticaluminium with 99.9 percent purity of approved make. The phase bus bars should be insulated withPVC or heat shrinkable sleeves of phase code coloured i.e. red, yellow and blue or suitably paintedwith plastic insulating compounds. The bus bars shall be suitably supported on insulators to standthe mechanical and electric forces on account of short circuit on the system. The bus bar conductorsshall be uniform throughout its length and in no case tapered. The size shall be so chosen to limitcurrent density to 1.0 Amps per sq. mm. The electrical contacts between bus bars and connectinglink shall be bolted type and lavish contact surface shall be provided. Bus bars shall be enclosed ina separate compartment with link arrangement for extension. The neutral bus bar should be of thesame size and current carrying capacity as that of phase bus bar. All bus bar joints, live bolted

connections; joints between cable terminals and switchgear terminals etc. shall be covered withelectric insulating non-corrosive sealing compound or heat shrinkable tapes to avoid accidentalcontact and flashover.

iii. EARTHING

Suitable Earthing arrangement shall be provided.

iv. TESTS

Each type of LV Switchboard shall be completely assembled, wired, adjusted and tested at thefactory as per the relevant standards and during manufacture and on completion.

v. Routine TestThe tests shall be carried out in accordance with IS 13947 and 8623 include including but notnecessarily limited to the following:

(a) Visual Check(b) Verification of Component Rating(c) Other Checks

i) Easy Accessibility and Maintenanceii) Colour Coding provided by coloured tapes.iii) Bus bar dimensionsiv) Degree of Protection check by paper.

(d) Dimension check(e) Insulation Resistance Tests(f) Mechanical Operation Tests(g) Bus bar support and clearances(h) Continuity of circuits and Function(i) Painting(j) Overload Release setting of the Circuit Breakers


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vi. Type TestAll type tests shall be performed in accordance with IS 13947 and 8623

PROTECTIONS

The system should be provided with all necessary protections like earthing, Lightning, andgrid islanding as follows

LIGHTNING PROTECTION

The SPV power plants shall be provided with lightning &overvoltage protection. The mainaim in this protection shall be to reduce the over voltage to a tolerable value before it reaches the

PV or other sub system components. The source of over voltage can be lightning, atmospheredisturbances etc The entire space occupying the SPV array shall be suitably protected againstLightning by deploying required number of Lightning Arrestors. Lightning protection should be

provided as per IEC 62305standard. The protection against induced high-voltages shall be providedby the use of metal oxide arrestors (MOVs) and suitable earthing such that induced transients findan alternate route to earth.

SURGE PROTECTION

Internal surge protection shall consist of three MOV type surge-arrestors connected from+ve andve terminals to earth (via Y arrangement)

EARTHING PROTECTION

Each array structure of the PV yard should be grounded/ earthed properly as per IS:3043-1987. In addition the lighting arrester/masts should also be earthed inside the array field. EarthResistance shall be tested in presence of the representative of Department/SECI as and whenrequired after earthing by calibrated earth tester. PCU, ACDB and DCDB should also be earthed

properly. Earth resistance shall not be more than 5 ohms. It shall be ensured that all the earthingpoints are bonded together to make them at the same potential.

GRID ISLANDING:

In the event of a power failure on the electric grid, it is required that any independentpower-producing inverters attached to the grid turn off in a short period of time. This prevents theDC-to-AC inverters from continuing to feed power into small sections of the grid, known asislands. Powered islands present a risk to workers who may expect the area to be unpowered, and

they may also damage grid-tied equipment. The Rooftop PV system shall be equipped withislanding protection. In addition to disconnection from the grid (due to islanding protection)disconnection due to under and over voltage conditions shall also be provided.

A manual disconnect 4pole isolation switch beside automatic disconnection to grid would

have to be provided at utility end to isolate the grid connection by the utility personnel to carry outany maintenance. This switch shall be locked by the utility personnel

CABLES


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The project activity is the installation of a new grid-connected renewable power plant at a sitewhere no renewable power plant was operated prior to the implementation of the project activity(Greenfield plant). Hence, the applicability criterion is satisfied.

The methodology is applicable under the following conditions:

The project activity is the installation, or modification/retrofit of a, capacity addition,retrofit or replacement of a power plant/unit of one of the following types: hydro power

plant/unit (either with a run-of-river reservoir or an accumulation reservoir), wind powerplant/unit, geothermal power plant/unit, solar power plant/unit, wave power plant/unit ortidal power plant/unit;

The project activity is the installation of a solar power plant in Indore district of MadhyaPradesh.

In the case of capacity additions, retrofits or replacements (except for capacity additionprojects for which the electricity generation of the existing power plant(s) or unit(s) is not

affected: the existing plant started commercial operation prior to the start of a minimumhistorical reference period of five years, used for the calculation of baseline emissions anddefined in the baseline emission section, and no capacity addition or retrofit of the plant has

been undertaken between the start of this minimum historical reference period and theimplementation of the project activity;

The project activity is not a capacity addition, retrofit or replacement of an existing power plant.

In case of hydro power plants, at least one of the following conditions must apply:

o The project activity is implemented in an existing single or multiple reservoirs, with nochange in the volume of any of the reservoirs; or

o The project activity is implemented in an existing single or multiple reservoirs, where thevolume of any of reservoirs is increased and the power density of each reservoir, as perdefinitions given in the Project Emissions section, is greater than 4 W/m2after theimplementation of the project activity; or

o The project activity results in new single or multiple reservoirs and the power density ofeach reservoir, as per definitions given in the Project Emissions section, is greater than 4W/m2after the implementation of the project activity.

The Project is not a hydro power plant. Hence, this applicability criterion is not required to besatisfied.

In case of hydro power plants using multiple reservoirs where the power density of any ofthe reservoirs is lower than 4 W/m2 after the implementation of the project activity all thefollowing conditions must apply:

o The power density calculated for the entire project activity using equation 5 is greater than 4W/m2;

oo All reservoirs and hydro power plants are located at the same river and where are designed

together to function as an integrated project that collectively constitutes the generationcapacity of the combined power plant;

oo The water flow between the multiple reservoirs is not used by any other hydropower unit

which is not a part of the project activity;o


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o The total installed capacity of the power units, which are driven using water from thereservoirs with a power density lower than 4 W/m2, is lower than 15MW;

oo The total installed capacity of the power units, which are driven using water from reservoirs

with a power density lower than 4 W/m2, is less than 10% of the total installed capacity ofthe project activity from multiple reservoirs.


The methodology is not applicable to the following:

Project activities that involve switching from fossil fuels to renewable energy sources at thesite of the project activity, since in this case the baseline may be the continued use of fossilfuels at the site;

The project activity does not involve switching from fossil fuels to renewable energy sources.

Biomass fired power plants;

The project activity is not a biomass fired power plant. Hence, this applicability criterion is notrequired to be satisfied.

Hydro power plant that result in new single reservoir or in the increase in existing singlereservoir where the power density of the reservoir is less than 4 W/m2.


Therefore, the approved monitoring methodology ACM0002 "Consolidated monitoringmethodology for grid-connected electricity generation from renewable sources" is applicable to the

project activity.

The spatial extent of the project boundary includes the project power plant and all power

plants connected physically to the electricity system that the CDM project power plant is connectedto.

The proposed project would be feeding the electricity in the NEWNE regional grid whichconstitutes several states and Union territories including Madhya Pradesh. The proposed projectwould have marginal impact on all the generation facilities in the NEWNE grid. Thus all the powergeneration facilities connected to this grid form the project boundary for the purpose of baseline

estimation. For conservative and accurate estimation, the imports of electricity from other regionalgrids have been included in the baseline calculation.

Establishment and description of baseline scenario

As the project activity is the installation of a new grid-connected solar PV power plant,according to ACM0002 Version 12.3.0, the baseline scenario is the following:

Electricity delivered to the grid by the project activity would have otherwise been generatedby the operation of grid-connected power plants and by the addition of new generation sources, asreflected in the combined margin (CM) calculations described in the Tool to calculate the

emission factor for an electricity system described step wise under section B.6.

The Combined Margin has been calculated using the Toolto calculate the emission factorfor an electricity system Version 02.2.1. The Operating Margin (OM) and Build Margin (BM)


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emission factors have been considered from the information (CO2 Baseline Database for the IndianPower Sector -Version 7.0) published by the Central Electricity Authority (CEA), Ministry ofPower, Govt. of India which has been computed according to the procedures prescribed in theTool to calculate the emission factor for an electricity system, version 02.2.1. Considering theindividual weightings assigned to the OM and the BM emission factors, the combined marginemission factor for the NEWNE Grid has been estimated at 0.9529 tCO2e/MWh.

Demonstration of additionality

According to the Clean Development Mechanism Project Standard Version 01.0 (EB 65,Annex 5) paragraph 27, for project activities with a starting date on or after 2 August 2008, the

project participant must inform the Host Party designated national authority (DNA) and theUNFCCC secretariat in writing of the commencement of the project activity and of their intentionto seek CDM status for it. Accordingly, HREPL informed UNFCCC and National CDM Authority(NCDMA) i.e. DNA of India, of its intention to seek CDM status on 27 April 2011. Thisnotification was made even before the project activity start on 20 June 2011 as described in sectionC.1.1. Thus, it is clear that the project activity meets the criteria stipulated in Paragraph 107 of the

Clean Development Mechanism Validation and Verification Manual Version 02.0 (Annex 4, EB65). Hence, it can be concluded that the project proponents have seriously considered CDM for the

proposed project activity and that its benefits are decisive for the implementation of the project.

The proposed project activity is a solar PV power project involving supply of electricity toNEWNE grid. Hence, according to baseline methodology ACM0002 Version 12.3.0, since theproject activity is the installation of a new grid-connected renewable power plant/unit, the baselinescenario is the following:

Electricity delivered to the grid by the project activity would have otherwise been generatedby the operation of grid-connected power plants and by the addition of new generation sources, as

reflected in the combined margin (CM) calculations described in the Tool to calculate theemission factor for an electricity system.

According to paragraph 115 of the Clean Development Mechanism Validation andVerification Manual Version 02.0 (Annex 4, EB 65), Where the baseline scenario is prescribed inthe approved methodology, no further analysis is required. Since, the methodology has already

prescribed the baseline scenario as discussed above, therefore there is no requirement ofidentification of alternatives to the project activity and Step 1 can be skipped.

Investment analysis

Determine whether the proposed project activity is not:

The most economically or financially attractive; or Economically or financially feasible, without the revenue from the sale of certified emission

reductions (CERs).

The Methodological Tool Demonstration and assessment of additionality (Version 06.0.0)

states that project participants may choose to apply Step 2 (Investment analysis) Or Step 3 (Barrieranalysis) to demonstrate the additionality of the project. In the present scenario, both Step 2 andStep 3 are used to demonstrate the additionality of the project.

Determine appropriate analysis method

Benchmark analysis has been chosen as the appropriate analysis method since the baselinefor the project activity is supply of electricity from the grid. This is also in accordance withParagraph 19 of the Guidance on the Assessment of Investment Analysis Version 5 that says If the


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alternative to the project activity is the supply of electricity from a grid this is not to be consideredan investment and a benchmark approach is considered appropriate.

Option III. Apply benchmark analysis

The Equity IRR was found to be the most appropriate financial indicator for assessment ofthe feasibility of the project activity. The internal rate of return (IRR) is a very common capital

budgeting metric used by firms to decide whether they should make investments in a particularproject activity. It is defined as the annualized effective compounded return rate which can beearned on the invested capital or the discount rate that makes the net present value of theinvestment's income stream total to zero. Hence it is an indicator of the efficiency or quality of aninvestment.

The project proponent had carried out an estimation of the costs involved in the projectactivity and the revenues that it would be expected to generate over its operational lifetime. Basedon these estimates, the Equity IRR for the project activity was found to be very low, indicating it to

be not economically or financially attractive for the project proponent. However, the projectproponent decided to implement the project only after taking CDM revenue into consideration thatimproves the Equity IRR.

Benchmark

Since benchmark approach is being applied, the section on Selection and Validation ofAppropriate Benchmarks of Guidelines on the Assessment of Investment Analysis Version 5 has

been referred which states that Required/expected returns on equity are appropriate benchmarks

for an equity IRR.. Therefore, expected return on equity is being used as a benchmark.

Further, the guideline states that In the cases of projects which could be developed by an

entity other than the project participant the benchmark should be based on parameters that arestandard in the market. Since the project could be developed by an entity other than the project

participant, the benchmark is calculated based on parameters that are standard in the market.

Additionally, the guideline also states that If the benchmark is based on parameters that arestandard in the market, the cost of equity should be determined either by: (a) selecting the values

provided in Appendix A; or by (b) calculating the cost of equity using best financial practices,based on data sources which can be clearly validated by the DOE, while properly justifying allunderlying factors.

Accordingly, the cost of equity is being determined as the value provided in Appendix A.However, as per paragraph 7 of the appendix to the guidelines, the default values provided in theappendix are real term values that can be converted to nominal values by adding the inflation rate.

The default value for expected return on equity for energy industry in India in real termrates as per appendix to the Guidelines on the assessment of investment analysis is 11.75%.

The long-term inflation forecast from Reserve Bank of India which is the central bank of thehost country is 5.5%6.

Therefore, the expected return on equity in nominal terms is 11.75% + 5.5% =

17.25%.


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IRR Analysis

The IRR analysis carried out in accordance with the Guidance on the Assessment of InvestmentAnalyse Version 05. The assumptions used for the carrying out the IRR analysis are as shownbelow:

Parameter Value SourcePlant capacity (MW) 10 Power Purchase Agreement

Energy GenerationCapacity utilization factor (1s year) 20.22%

Detailed Project ReportEnergy generation (1s year) (MWh) 17,712

Annual degradation factor 0.50%Project Financing

Loan (%) 70%Equity (%) 30%Amount of Loan (x INR million) 490.7Loan term (years) 10

Interest Rate 13%Salvage Value

Salvage Value 10%Operation & Maintenance Charges

O & M Charges (x INR million) 8.5Escalation in O & M (%) 5%Free O&M (years) 1Insurance (% of project cost) 0.35%

Working CapitalReceivables (for months) 1O&M expenses (for months) 1

Interest rate 14%Tariff

Tariff for 25 years (INR/kWh) 7.5Tax Rates

Corporate Tax Rate(incl. Surcharge and Educational cess)

32.45%Income Tax Act

Minimum Alternate Tax(incl. Surcharge and Educational cess)

20.01%

Service Tax Rate 10.30%Finance Act

Depreciation

As per Income Tax Act (WDV)Land 0%

Income Tax Act

Civil Works 10%

Plant & Machinery 70%

As per Companies Act (SLM)Land 0.00%

Companies Act Schedule XIVCivil Works 3.34%Plant & Machinery 5.28%
http://www.incometaxindiapr.gov.in/incometahttp://www.incometaxindiapr.gov.in/incometahttp://www.mukeshraj.com/service-tax.html)http://www.mukeshraj.com/service-tax.html)http://www.mukeshraj.com/service-tax.html)http://www.incometaxindiapr.gov.in/incometa


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Project Cost (x INR million)Component Cost SourceEngineering ProcurementandCommissioning (EPC)

628.37CRISIL Report on InternationalCompetitiveBidding process conducted

Plant & Machinery 580.00 EPC cost break-up from CERC ExplanatoryMemorandum for Benchmark Capital Cost

Norms for Solar PV Power ProjectsCivil Works 50.00Land cost 6.75 CERC Explanatory Memorandum for

Benchmark Capital Cost Norms for SolarPVPower Projects and Solar Thermal

Preliminary and PreOperativeExpenses including IDC andcontingency

65.00

Total Project Cost 701.76

Calculation and comparison of financial indicators (only applicable to Options II andIII):

The Equity Internal Rate of Return for the project activity works out to 8.27%. Hence it can

be clearly observed that the returns from the project do not exceed the benchmark of 17.25%. Thusthe project activity on its own is clearly not a financially viable option and hence the revenue fromCDM is essential to make the project activity a financially viable venture.

Sensitivity analysis (only applicable to Options II and III):

As per Step 2d of the Methodological Tool Demonstration and assessment of

additionality Version 06.0.0, a sensitivity analysis is to be carried out to show whether the

conclusion regarding the financial/economic attractiveness is robust to reasonable variations in thecritical assumptions. The results of the sensitivity analysis are detailed below:

Base case 8.27 CommentsVariable

Parameter

Decrease I ncrease10% 10%

Energy

Generatio

n

4.54% 10.64% The energy generation has been determinedbasedon the analysis conducted by third partyengineering consultants, HamaralakshyaConstruction Pvt. Ltd. Any significant increasein energy generation is not envisaged,however, even in the extreme case of anincrease of 10% in energygeneration, it can beobserved that the IRR does not cross the

Project Cost 10.42% 5.21% The project cost primarily comprises of thecost of civil works and plant and machinery.These costs are unlikely to decrease ascontracts for the same have already beenexecuted with the EPC contractor. Takingthese factors into consideration, a decrease in

Tariff 4.54% 10.64% The Tariff has been based on the mutualagreement.

O&M Cost 6.89% 7.30% The variation in the cost of Operations andMaintenance does not affect the Equity IRR

by asignificant margin due to its low value.


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Hence it can be clearly observed that even when the project parameters turn in favourof the projectproponent, even then the returns from the project do not exceed the benchmark.Thus the project activityon its own is clearly not a financially viable option. The revenue fromCDM would make the projectactivity a financially viable venture.

Barrier analysis

Determine whether the proposed project activity faces barriersthat:

(a) Prevent the implementation of this type of proposed project activity; and(b) Do not prevent the implementation of at least one of the alternatives.

Identify barriers that would prevent the implementation of the proposed CDM projectactivity:

Establish that there are realistic and credible barriers that would prevent theimplementation of theproposed project activity from being carried out if the project activitywas not registered as a CDMactivity.

Show that the identified barriers would not prevent the implementation of at least one ofthe alternatives (except the proposed project activity):

Step 2 has been used to demonstrate additionality of theproject.

Common practice analysis

Identify and discuss the existing common practice through the followingSub-steps:

Analyze other activities similar to the proposed project activity:

Since the project activity is a measure that involves use of renewable energy, as perparagraph 47 of the methodological tool Demonstration and assessment of additionality version

06.0.0, the following steps have been followed for common practice analysis:

Step 1: Calculate applicable output range as +/-50% of the design output or capacity of theproposed project activity.

Since the proposed project activity has a proposed installed capacity of 10 MW, theapplicable output range for common practice analysis will be 10 MW to 15 MW ( 50% of 7.5

MW).

Step 2: In the applicable geographical area, identify all plants that deliver the same output orcapacity, within the applicable output range calculated in Step 1, as the proposed project activityand have started commercial operation before the start date of the project. Note their number Nall.Registered CDM project activities and projects activities undergoing validation shall not beincluded in this step;

Nall = All the power plants in the applicable output range in the applicable geographicalarea. Thus for the proposed project activity this will include all the power plants in the range from10 MW to 30 MW commissioned in India before the start date of the proposed project activity.

Step 3: Within plants identified in Step 2, identify those that apply technologies differentthat the technology applied in the proposed project activity. Note their number Ndiff.


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Ndiff = All the power plants with technologies different from that of the proposed projectactivity in the applicable output range in the applicable geographical area. Hence for the proposed

project activity, this will include all the power plants in the range from 10 MW to 30 MWcommissioned in India before the start date of the proposed project activity i.e. 20 June 2011 anduse technologies different from solar photovoltaic technology for power generation as will be used

by the proposed project activity.

Step 4: Calculate factor F = 1-Ndiff/Nall representing the share of plants using technologysimilar to the technology used in the proposed project activity in all plants that deliver the sameoutput or capacity as the proposed project activity.

N diffTherefore, F

= 1-N all

N all N diff=

N all

(Nall Ndiff) represents all the plants using solar photovoltaic technology in the range of

10 MW to 30 MW installed in India before 20 June 2011.As per the the MNRE report on MW size grid connected solar power plants in India, as on

31st July, 2011 there was no solar power plant installed in India in the range of 10 MW to 30 MWcapacity till 20 June 2011.

Therefore, (NallNdiff)

= 0and F = (Nall

Ndiff)/Nall = 0

Since the factor F is less than 0.2 and Nall-Ndiff is less than 3, the proposed projectactivity is not acommon practice within the power sector in the country.

Discuss any similar options that are occurring:

The Methodological Tool Demonstration and assessment of additionalityVersion 06.0.0states in Sub-step 4b that Ifsimilar activities are widely observed and commonly carried out, itcalls into question theclaim that the proposed project activity is financially unattractive (ascontended in Step 2) or facesbarriers (as contended in Step 3).

On the basis of the conclusions of the analysis in Sub-step 4a, it is seen that there are nosimilarproject activities in the host country currently under operation.

Hence as per Methodological Tool Demonstration and assessment of additionalityVersion

06.0.0further analysis of step 4 (b) is not required.


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PE = Project emissions in yeary (tCO2e/yr)PEFF,y = Project emissions from fossil fuel consumption in yeary (tCO2/yr)PEGP,y = Project emissions from the operation of geothermal power plants due to the

release ofPEHP,y = Project emissions from reservoirs of hydro power plants in yeary (tCO2e/yr)

Project activity emissions

According to the chosen baseline methodology ACM0002 Version 12.3.0, projectemissions areaccounted for as follows:

PEy PEFF,y PEGP,y PEHP,yWhere:

Since, the project activity is a solar PV power project, there are no project emissions fromfossil fuelconsumption, release of non-condensable gases or water reservoirs.

Hence, PE y

Baseline Emissions

Baseline emissions include only CO2 emissions from electricity generation in fossil fuelfired powerplants that are displaced due to the project activity. The methodology assumes that all

project electricity generation above baseline levels would have been generated by existing grid-connected power plants and the addition of new grid-connected power plants. The baselineemissions are to be calculated as follows:

BEy = EGPJ,y .

EFgrid,CM, y

Where:BE = Baseline emissions in year y (tCO2/yr)EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a

result ofEFgrid,CM,y

= Combined margin CO2 emission factor for grid connected power generation inyear ycalculated using the latest version of the Tool to calculate the emission factor

Calculation ofEGPJ,y

(a) Greenfield renewable energy power

plantsSince the project activity is the installation of a new grid-connected renewable power plant/unit ata site where no renewable power plant was operated prior to the implementation of the

project activity,therefore:

EGPJ,y = EGfacility,y

Where:

EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as aresult ofthe implementation of the CDM project activity in year y (MWh/yr)

EGfacilit

y,y

= Quantity of net electricity generation supplied by the project plant/unit to the

grid in


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Calculation of EFgrid

In accordance with the Tool to calculate the emission factor for an electricity system Version02.2.1, combined margin CO2 emission factor for grid connected power generation is calculatedstepwise asbelow:

The data used for the calculation of the baseline emission factor was obtained from the baseline

calculations published by the CEA, CO2 Baseline Database for the Indian Power Sector Version7.010,which uses ACM0002. A complete explanation of the assumptions employed by the CEA can beobtainedfrom the CO2 Baseline Database for the Indian Power Sector - Version 7.0.

Step 1: Identify the relevant electricity systems

For the purpose of determining the electricity emission factors, a project electricity system andconnected electricity systems are to be defined. The Indian power system is divided into tworegionalgrids, namely NEWNE and Southern grid. Each grid covers several states. Power generationand supplywithin the regional grid is managed by Regional Load Dispatch Centre (RLDC). TheRegional PowerCommittees (RPCs) provide a common platform for discussion and solution to theregional problemsrelating to the grid.

Each state in a regional grid meets their demand with their own generation facilities and alsowithallocation from power plants owned by the central sector such as NTPC and NHPC etc. Specificquotasare allocated to each state from the central sector power plants. Depending on the demand andgeneration, there are electricity exports and imports between states in the regional grid. There arealso electricity transfers between regional grids, and small exchanges in the form of cross-borderimports and exports(e.g. from Bhutan). Recently, the Indian regional grids have started to work in synchronous mode, i.e.atsame frequency.

States connected to different regional grids

Regiona

lgrid

NEWNE GridSouthern grid

Northern Eastern WesternNorth

Easter

States

Haryana,HimachalPradesh,Jammu&Kashmir,Punjab,Rajasthan, UttarPradesh andUttarakhand

Bihar,Orissa,WestBengal,JharkhandandSikkim

Gujarat,MadhyaPradesh,Maharashtra,Goa andChattisgarh

ArunachalPradesh,Assam,Manipur,Meghalaya,Mizoram,

Nagalandand

AndhraPradesh,Karnataka,Kerala andTamil

Nadu

UnionTerritorie

Delhi andChandigarh

Andaman-Nicobar

Daman &Diu,Dadar&Nagar

- Pondicherry,

The NEWNE grid constitutes several states and union territories including Madhya Pradesh. Thesestates under the regional grid have their own power generating stations as well as centrally shared

power-generatingstations. While the power generated by own generating stations is fully owned andconsumed through the respective states grid systems, the power generated by central generatingstations is shared by more thanone state depending on their allocated share. Presently the share fromcentral generating stations is a smallportion of their own generation.

Since the CDM project would be supplying electricity to the NEWNE grid, it is preferable to takethis grid as the project boundary rather than the state boundary. It also minimizes the effect of

interstate powertransactions, which are dynamic and vary widely. Considering free flow of electricityamong the member states and the union territory, the entire NEWNE grid is considered as a singleentity for estimation ofbaseline.


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Step 2: Choose whether to include off-grid power plants in the project electricity system

(optional)

Project participants may choose between the following two options to calculate the operating marginandbuild margin emission factor:

Option I: Only grid power plants are included in the calculation.Option II: Both grid power plants and off-grid power plants are included in the calculation.

The project participant has chosen Option I for the calculation of the operating and build marginemissionfactor i.e. off-grid power plants are not being included in the calculation.

Step 3: Select a method to determine the operating margin (OM)

The calculation of the operating margin emission factor (EFgrid,OM,y) is based on one of thefollowingmethods:

(a)Simple OM, or(b)

Simple adjusted OM, or(c)Dispatch data analysis OM, or(d)

Average OM.

For the proposed project activity, simple OM method (option a) has been chosen to calculatetheoperating margin emission factor (EFgrid, OM, y). However, the simple OM method can only beused if low-cost/must-run resources constitute less than 50% of total grid generation in: 1) averageof the five most recent years, or 2) based on long-term averages for hydroelectricity production.The low-cost/must-run resources are defined as power plants with low marginal generation costsor power plants that aredispatched independently of the daily or seasonal load of the grid. Theytypically include hydro,geothermal, wind, low-cost biomass, nuclear and solar generation.

Table: Share of Low Cost / Must-Run (% of Net Generation)

2006-07 2007-08 2008-09 2009-10 2010-11NEWNE 18.5% 19.0% 17.4% 15.9% 17.6%

South 28.3% 27.1% 22.8% 20.6% 21.0%India 20.9% 21.0% 18.7% 17.1% 18.4%Ref: CO2 Baseline Database for the Indian Power SectorCEA, Version 07

Percentage of total grid generation by low cost/must run plants (on the basis of average of fivemostrecent years) = 17.7 %

The calculation above shows that the generation from low-cost/must-run resources constitutes less

than50% of total grid generation, hence usage of the Simple OM method in the project case is

justified.

The Simple OM emission factor can be calculated using either of the two following data vintagesforyears(s) y:

- Ex ante option: If the ex-ante option is chosen, the emission factor is determined once atthevalidation stage, thus no monitoring and recalculation of the emissions factor during thecreditingperiod is required. For grid power plants, use a 3-year generation-weighted average,

based on themost recent data available at the time of submission of the CDM-PDD to theDOE for validation.For off-grid power plants, use a single calendar year within the 5 mostrecent calendar years priorto the time of submission of the CDM-PDD for validation.

or- Ex post option: If the ex post option is chosen, the emission factor is determined for the year

inwhich the project activity displaces grid electricity, requiring the emissions factor to beupdatedannually during monitoring. If the data required calculating the emission factor for

year y is usually only available later than six months after the end of year y, alternativelythe emissionfactor of the previous year (y-1) may be used. If the data is usually only available18 months afterthe end of year y, the emission factor of the year proceeding the previous year(y-2) may be used. The same data vintage (y, y-1 or y-2) should be used throughout all


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EFgrid,OMsimple,,y = Simple operating margin CO2 emission factor of in year y (tCO2/MWh)

FCi,m,y = Amount of fossil fuel type i consumed by power unit m in year y(Mass or volume unit)

NCVi,y = Net calorific value (energy content) of fossil fuel type i in year y(GJ / mass or volume unit)

EFCO2,i,y = CO2 emission factor of fossil fuel type i in year y (tCO2/GJ)

EGm,y = Net electricity generated and delivered to the grid by power unit m in year y(MWh)

m = All power units serving the grid in year y except low-cost / must-run power units

I = All fossil fuel types combusted in power plant / unit m in year y

y = Either the three most recent years for which data is available at the time ofsubmission of the CDM-PDD to the DOE for validation (ex-ante option) or theapplicable year during monitoring (ex post option), following the guidance on datavintage in step 2

crediting periods.

The project proponent chooses the Ex ante option for estimating the simple OM emission factorwhereinas described above a 3-year generation-weighted average, based on the most recent dataavailable at the time of submission of the CDM-PDD to the DOE for validation, withoutrequirement to monitor and recalculate the emissions factor during the crediting period will beundertaken.

Step 4: Calculate the operating margin emission factor according to the selected

method

The simple OM method has been selected as justified above. The simple OM emission factor iscalculatedbased on the net electricity generation of each power unit and a CO2 emission factorfor each power unit,as follows:

In India, the Central Electricity Authority (CEA) has estimated the baseline emission factor for thepower sector. This data has also been endorsed by the DNA and is the most authenticinformation available inthe public domain. The details of same can be found on CEA website.

Step 5: Calculate the build margin (BM) emission

factor

In terms of vintage of data, project proponents can choose between one of the following two

options:Option 1: For the first crediting period, calculate the build margin emission factor ex-

ante based on themost recent information available on units already built for sample group m at the time ofCDM-PDD

submission to the DOE for validation. For the second crediting period, the build margin emissionfactorshould be updated based on the most recent information available on units already builtat the time ofsubmission of the request for renewal of the crediting period to the DOE. For thethird crediting period,the build margin emission factor calculated for the second crediting periodshould be used. This optiondoes not require monitoring the emission factor during the crediting

period.

Option 2: For the first crediting period, the build margin emission factor shall be updatedannually, ex-post, including those units built up to the year of registration of the project activityor, if information up to the year of registration is not yet available, including those units builtup to the latest year for which Information is available. For the second crediting period, the

build margin emissions factor shall be calculated ex-ante, as described in option 1 above.For the third crediting period, the build margin emission factor calculated for the secondcrediting period should be used.


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The project proponent wishes to choose option 1.

Capacity additions from retrofits of power plants should not be included in the calculation ofthe buildmargin emission factor.

The sample group of power units m used to calculate the build margin should be determined asper thefollowing procedure, consistent with the data vintage selected above:

(e)

Identify the set of five power units, excluding power units registered as CDM projectactivities, that started to supply electricity to the grid most recently (SET5-units) anddetermine their annualelectricity generation (AEGSET-5-units, in MWh);

(f) Determine the annual electricity generation of the project electricity system, excludingpower unitsregistered as CDM project activities (AEGtotal, in MWh). Identify the set ofpower units, excludingpower units registered as CDM project activities, that started tosupply electricity to the grid most recently and that comprise 20% of AEGtotal (if 20%falls on part of the generation of a unit, thegeneration of that unit is fully included inthe calculation) (SET20%) and determine their annualelectricity generation (AEGSET-20%, in MWh);

(g)

From SET5-units and SET20% select the set of power units that comprises the largerannual electricitygeneration (SETsample);

Identify the date when the power units in SETsample started to supply electricity to the grid. Ifnone of thepower units in SETsample started to supply electricity to the grid more than 10 yearsago, then use SETsample to calculate the build margin.

In India, the installed capacity and corresponding annual generation from power plants is quitehigh. TheCentral Electricity Authority (CEA) has estimated the annual electricity generationfrom SET20% to be larger than the generation from SET5-units. The details of same can befound on CEA website. Further, none of the power units in SET20% started to supplyelectricity to the grid more than 10 years ago.

Therefore, SETsample is selected as SET20% for the estimation of

build margin.

The build margin emissions factor is the generation-weighted average emission factor(tCO2/MWh) of allpower units m during the most recent year y for which power generationdata is available, calculated asfollows:

EF rid,B

= Build margin CO2 emission factor in year y (tCO2 / MWh)

EGm,y =Net quantity of electricity generated and delivered to the grid by power unit m inyear y

EFEL, m, = CO2 emission factor of power unit m in year y (tCO2 / MWh)M = Power units included in the build margin

Y = Most recent historical year for which electricity generation data is available

Calculations for the Build Margin emission factor EFgrid, BM, y is based on the most recentinformation available on the plants already built for sample group m at the time of PDDsubmission. The samplegroup m consists of the power plant capacity additions in the electricitysystem that comprise 20 % of the system generation and that have been built most recently(SET20%).


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Step 6: Calculate the combined margin emissions factor

The calculation of the combined margin (CM) emission factor (EFgrid,CM,y) is basedon one of thefollowing methods:

(a)Weighted average CM; or

(b)

Simplified CM.The weighted average CM method (option A) should be used as the

preferred option.The combined margin emissions factor is calculated as

follows:

EF rid,B

= Build margin CO2 emission factor in year y (tCO2/MWh)EFgrid,O

= Operating margin CO2 emission factor in year ywOM = Weighting of operating margin emissions factor (%)wBM = Weighting of build margin emissions factor (%)

The following default values should be used for wOMand wBM:

- Wind and solar power generation project activities: wOM = 0.75 and wBM = 0.25(owing to their intermittent and non-dispatchable nature) for the first crediting periodand for subsequent creditingperiods.

- All other projects: wOM = 0.5 and wBM = 0.5 for the first crediting period, and wOM =0.25 and wBM =0.75 for the second and third crediting period, unless otherwise specified in theapprovedmethodology which refers to this tool.

As mentioned before, the CEA has calculated the baseline emission factors for variousregional grids inIndia according to the formulas specified above. As this is the most authenticinformation available in the public domain. The baseline emission factor used in thecalculation of baseline emissions for theproposed project activity is being referred from thesame for transparency and conservativeness13.

Leakage

According to ACM0002 Version 12.3.0, no leakage emissions are considered. The mainemissionspotentially giving rise to leakage in the context of electric sector projects areemissions arising due toactivities such as power plant construction and upstream emissionsfrom fossil fuel use (e.g. extraction,processing, transport). These emissions sources areneglected.

Emission

Reductions

Emission reductions are calculated as

follows:ERy = BEy - PEy

Where:

ER = Emission reductions in year y (tBE = Baseline emissions in year y (t CO2/yr)

PEy = Project emissions in year y (t CO2e/yr)


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7. Environmental and social impact

Non-technical executive summary: concisely discusses significant findings andcommended actions in lay language.

Policy, legal, and administrative framework: discusses the policy, legal, and administrative

framework within which the Assessment is carried out, including host country regulations,including obligations implementing relevant international social and environmental treaties,agreements, and conventions, the international standards applied to the project, as well as anyadditional priorities and objectives for social or environmental performance identified by the

buyer/project sponsor. Explains the environmental requirements of any co-financiers.

Project description: concisely describes the proposed project and its geographic, ecological,social, health and temporal context, including any additional project components that may berequired (e.g. dedicated pipelines, access roads, power plants, water supply, housing, and rawmaterial and product storage facilities). Encompasses facilities and activities by third parties thatare essential for the successful operation of the project. Normally includes maps showing the

project site and the project's area of influence.

Baseline data: assesses the dimensions of the study area and describes relevant physical,biological, socioeconomic, health and labor conditions, including any changes anticipated beforethe project commences. Also takes into account current and proposed developmentactivities within the project area but not directly connected to the project. Data should be relevantto decisions about project location, design, operation, or mitigation measures. The section indicatesthe accuracy, reliability, and sources of the data.

Environmental and Social impacts: predicts and assesses the project's likely positive and

negative impacts, in quantitative terms to the extent possible. Identifies mitigation measures andany residual negative impacts that cannot be mitigated. Explores opportunities forenhancement. Identifies and estimates the extent and quality of available data, key data gaps, anduncertainties associated with predictions, and specifies topics that do not require further attention.Evaluates impacts and risks from associated facilities and other third party activities. Examinesglobal, transboundary, and cumulative impacts as appropriate.

Analysis of Alternatives: compares reasonable alternatives to the proposed projectsite, technology, design, and operation in terms of their potential environmental and social impacts;the feasibility of mitigating these impacts; their capital and recurrent costs; their suitability underlocal conditions; and their institutional, training, and monitoring requirements. States the basis for

selecting the particular project design proposed and justifies recommended emission levels,including where relevant for greenhouse gases, and approaches to pollution preventionand abatement.

Management Program: consists of the set of mitigation and management measures to betaken during implementation of the project to avoid, reduce, mitigate, or remedy for adverse socialand environmental impacts, in the order of priority, and their timelines. May include multiple

policies, procedures, practices, and management plans and actions. Describes the desired outcomesas measurable events to the extent possible, such as performance indicators, targets oracceptance criteria that can be tracked over defined time periods, and indicates the resources,including budget, and responsibilities required for implementation. Where the

buyer/project sponsor identifies measures and actions necessary for the project to comply withapplicable laws and regulations and to meet the international standards applied to the project, themanagement program will include an Action Plan, which is subject to disclosure to the affectedcommunities and on-going reporting and updating.


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Analysis of environmental impacts

As per the notification from MoEF dated September 14, 200616 and its amendmentnotification S.O. - 3067(E) dated 1/12/2009, the list of project activities which require priorenvironmental clearance is stipulated. This does not include the proposed project activity as itinvolves solar power generation. Hence the proposed project activity does not require anyEnvironmental impact analysis.

Environmental impact assessment

As discussed above, the project activity would not have any significant environmental

impacts. It doesnot result in emissions of GHGs and other gases i.e. SO2 and NOx commonin conventional powergeneration sources.

Social well being

The project activity shall contribute towards generating employment opportunities forthe localinhabitants during the installation and operation of the project activity.

The project will lead to development of the road and telecommunication network andimprovement in the local infrastructure that would boost the development and social upliftmen ofthe region.

Economic well-being The project activity would improve the grid frequency and availability of electricity to

the local consumers which would further provide opportunities for industries andeconomic activities to be setup in the area resulting in greater local employment andoverall development of the region.

Environmental well being

The project activity would reduce emission of CO2 and other pollutants compared withfuel-firedpower plant.

As solar PV power plants do not produce any end products in the form of solid waste(ash etc.), they address the problem of solid waste disposal encountered by most othersources of power.

Technological well being

The project activity has high explicability potential and can therefore promotetechnological selfreliance in India.

The project activity would generate electricity through a technology that isenvironmentally safeand sound.


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8. Operation and maintenance

Plant monitoring

Daily analysis and evaluation of operational plant data through remote monitoringPlausibility test of current yield and weather dataEnergy meter value managementService hotline Mo.-Fr. 8:00h - 17:00h

Preventive maintenance

Preventive inspection and maintenance of system components according to manufacturersspecifications

Documentation of events and measuresProvision of small parts and operating material

Conduction of regulatory tests according to technical standards

Fault detection and analysis

Function check after fault message is receivedImmediate start of fault removal measuresLong-term trend analysis

Management of repairs and claims

Analysis of interruptions and incidents

Supply chain management for spare parts i.e. modules, inverters, cabling and mechanicalcomponents

Documentation and data management (KPIs)

Documentation of plant energy output and system availabilityElectronic plant logbookDetailed information about main events and measuresCustomer Reports on a quarterly and/or yearly basis

Warranty and service management

Monitoring and tracking of warranty rightsSupport with insurance casesCoordination and managing of external (i.e. 3rd party) service providers

Facility management

Maintenance of vegetationImplementation of official requirements for technical operationModule cleaning (optional)

aarone group 10mw solar dpr

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