PDD - Netinform
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PDD - Netinform
PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. General description of the small scale 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 proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information 1 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Revision history of this document Version Number 01 02 Date Description and reason of revision 21 January 2003 8 July 2005 Initial adoption • • 03 22 December 2006 • The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 2 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: Title: Installation of a natural gas based direct combined heat and power package cogeneration system in Barranquilla Brewery-Bavaria in Barranquilla (Colombia). Document Version: Version 01 Completion Date: 19/03/2009 A.2. Description of the small-scale project activity: The purpose of this project activity is to integrate utility provisions for power and steam of Barranquilla Brewery into a single cogeneration system. This utility consists of a gas turbine assisted cogeneration system fuelled with natural gas that replaces two new boilers of 15 t/h that would otherwise been built. The new cogeneration system will also provide electricity to the Brewery that would otherwise have been generated, among others, by fossil fuel based utilities connected to the National Colombian grid. Bavaria, S.A, subsidiary company from SABMiller group, is a brewery installed in Colombia, where it owned seven breweries and two malt houses. Due to the growing demand of Bavarian products, the company decided in 2007 to increase its production capacity by 60% in Barranquilla Brewery during the following years. After analysing energy options to face forecast demand of heat and power, the company choose the alternative of installing the mentioned cogeneration system. In July 2008 TURBOMACH AESA awarded the contract for the implementation of the cogeneration plant in Barranquilla Brewery. The decision was taken after considering several options for the production of power and heat and having taken to account CDM profits, in accordance with CDM requirements for the prior consideration of the CDM in the decision making process. The technology employed consists of a back pressure gas turbine of 7,5 kWe output power, a steam recover heat generator (HRSG) with supplemental firing to produce a maximum of 30 t/h of steam at 10 bar and 180ºC and a new 15t/h boiler. In absence of the project activity, the mentioned amount of steam would have been produced by means of two new boilers, similar to the ones currently in operation feeds with natural gas. Graphic1: Cogeneration systems vs. Conventional ones. 3 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Project activity’s contribution to sustainable development The following points indicate how the project activity contributes towards the social, economic, environmental and technological well being of the region. Social well being – The project activity would assist in providing employment in the construction and operation phase to the people around the project site helping improving people’s quality of life. Economic well being – The project activity would result in total energy consumption reduction due to the increased energy efficiency achieved by combined heat and electricity generation systems. The expected project activity energy consumption is 39.73 GWhth per year, equivalent to 14% of total energy consumed without the Project. These savings improves energy efficiency from 62% to 85%. Thus, project activity would result in fossil fuels savings leading towards economic well-being. Environmental well being – Since project activity replaces electricity purchased from the grid by more friendly technologies, project results in GHG emissions reductions. This goal is achieved by (a) managing energy consumption through installation of energy efficient equipment, (b) displacing electricity from fossil fuels and (c) switching to a cleaner fuel source than fuel mix used to generate grid electricity d) reducing energy losses due to electricity transportation (18% of total energy produced in Colombia) Technological well being – Cogeneration in Colombia is in a very preliminary stage, especially cogeneration involving gas natural, with few experiences only. No more than 3% of the estimated potential has been covered according to UPME estimations. Project implementation could extend more similar experiences in the country even in other Bavaria brewery industries where no other cogeneration systems are installed due to investment costs. Technology adopted in the project activity is environmentally safe and will be imported from USA and Switzerland, improving energy efficiency state of the art in Colombia. Therefore, it is ensured project activity contributes positively towards sustainable development. A.3. Project participants: Name of Party involved (*) ((host) indicates a host Party) Private and/or public entity(ies) project participants (*) (as applicable) COLOMBIA (Host) BAVARIA, S.A. GAS NATURAL SDG, S.A. 4 Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) NO PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: A.4.1.1. Host Party(ies): Republic of Colombia. A.4.1.2. Region/State/Province etc.: Department of Atlántico. A.4.1.3. City/Town/Community etc: City of Barranquilla, Department capital. A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity : Exact address of the installation: Cervecería de Barranquilla Calle 10 # 38 - 280 Barranquilla (Atlántico) Colombia City of Barranquilla Map of the Republic of Colombia Map of Atlantico Department Exact location of Bavaria Brewhouse in Barranquilla City 5 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board The proposed project activity is located in Barranquilla City in Atlántico Department, Colombia. The factory is located near the river Magdalena closed to the maritime terminal in the east area of the city. Above Maps shows the exact location of the project. A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: Project Type & Category In accordance with Appendix B of the Simplified Modalities and Procedures for Small Scale CDM project activities (SMP-SSC), the proposed Project activity falls under Type II Project (Energy Efficiency Improvement Project) and Category H for activities involving centralization of energy generations sources. Justification of the type and category is substantiated in Section B.2. Project Technology The project covers the installation of a 7.5 MW gas turbine, a heat recovery steam generator (HRSG) with supplemental firing, a motor control centre, electrical switchgear and its auxiliary equipment. Due to site conditions, system will finally produces up to 6.485 MWe, as well as 30 t/h steam for the process at 10 bar and 180ºC, according to manufacturers data. The system configuration is illustrated in the simplified flow diagram below. Graphic 2: Project Flow Diagram 6 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board The primary mover of the proposed system is a natural gas turbine generator manufactured by Solar Turbines (A caterpillar company) in California (USA) and assembled in Switzerland. At full capacity turbine consumes 20,380 kWth (ISO conditions) of natural gas per unit of time with an energy output of 6,485 kWe of electricity and 25.08 kg/s of exhausted gases at 501.6 ºC. Below technical details of this device. The secondary device of the cogeneration system is the water-tube heat recovery steam generator with supplemental firing. The objective of this device is to convert the thermal energy of the exhausted gases 7 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board in steam for the process. The conversion is made by a battery of water-heat exchangers that heat up the water to obtain 30 t/h of saturated steam at 10 bar and 180ºC. The water is provided to the system at 100 ºC via a thermal degassing included in the system. The rest of the cogeneration system is composed of the following devices and subsystems: - Gas compressor system, to supply the gas turbine with fuel at the needed pressure. High voltage electrical system, to connect the turbine generator alternator with the Electrocaribe municipal grid at 13,2 kV and 60 Hz. Transformers, to increase turbine output voltage of 6.6 kV to 13.2 kV and to provide the auxiliary equipment of the system with low voltage electricity. Low voltage electrical system for the auxiliary equipment. Fuel system. Devices to supply the gas turbine and the supplemental firing with natural gas at required conditions. Tubes system for water/steam and compressed air. Control, instrumentation and data acquisition. PLC system to monitor the performance of the cogeneration system. All devices and equipments needed to install the described cogeneration system are exported from the USA, contributing to cutting edge technology and knowhow transfer. Cogeneration is a not common technology in Colombia, where only 3% of the estimated potential has been covered, according to UPME data. TURBOMACH will provide the necessary training for local workers operating the plant as it is stated in the purchase contract and in the project planning. A.4.3 Estimated amount of emission reductions over the chosen crediting period: Estimation of annual emission reductions in tonnes of CO2e (tCO2e) 2,793 5,587 5,587 5,587 5,587 5,587 5,587 2,792 39,109 7 Year 01/07/2009 2010 2011 2012 2013 2014 2015 31/06/2016 Total estimated reductions (tonnes of CO2e) Total number of crediting years Annual average of the estimated reductions over the crediting period 5.587 8 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board A.4.4. Public funding of the small-scale project activity: The Project does not involve any public funding from Annex I countries. A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: According to, appendix–C of the indicative simplified modalities and procedure for small scale CDM project activity. A project activity is considered to be a de-bundled component of a larger project activity if there is a registered small scale CDM project or request for registration by another small scale project activity: - By the same project participants; In the same project category and technology/measure; and Registered within the previous 2 years; and Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity. It can be concluded then that this Project activity is not a de-bundled component of a larger project activity since the Project proponent does not own or operate any CDM registered project of similar nature and technology within 1 km of the Project boundary. The project proponent could implement in the future similar project activities in the rest of breweries and malteries they owned in Colombia, but it can be demonstrated that each factory is more than 1 km away from the other. SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the small-scale project activity: Title: Energy efficiency measures through centralization of utility provisions of an industrial facility Type II – Energy efficiency improvement projects Category: II.H, Version 01, Sectoral scope 04, EB 38 B.2 Justification of the choice of the project category: According to paragraph 14 of the general guidance for SSC methodologies, version 12 (EB41 Annex 20), Greenfield projects may used a Type II SSC methodology provided that it can be demonstrated that the most plausible baseline scenario is the baseline provided in the approved SSC methodology applied. For the purpose of the demonstration it shall be used the “Combined tool to identify the baseline scenario and demonstrate additionality”. This project activity involves the installation of a new cogeneration system to provide electricity and steam to Barranquilla Brewery, located in Barranquilla. This new system will replace electricity consumption from the grid and two new boilers of 15 t/h steam production that would have otherwise been built which is in accordance with paragraph 1 of AMS II.H. Therefore the most plausible baseline 9 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board scenario based on the technology that would have been used, is the production of steam using natural gas in boilers and the import of electricity from the grid, thus in accordance to paragraph 6. a) of AMS II.H, as it will be demonstrated in section B.5 below. According to paragraph 2 and 3 of the approved methodology, AMS.II.H., Version 01, a project activity is required to fulfil the following applicability conditions: Measures are limited to activities that result in additional steam generation capacity of no more than 5% of pre-project situation. Considering that the pre-project situation is the two new boilers that would have otherwise been built with a generation capacity of 30 t/h, and that the new steam generation capacity from the cogeneration system is 30 t/h, it can be concluded that there is no additional stem generation capacity in comparison with baseline situation. Project activity results in total energy saving of no more than 60 GWhth (or 180 GWhth) per year. Taking into account specific manufacturer data of the cogeneration system and considering historical consumptions of the existing water tube boilers that are identical to the ones that would have been installed in the absence of this project activity, the following figures (table 1) are obtained to show the energy balance from the baseline and the project scenario: Units General Data Factory Design working hours per year h Typical working hours for a brewery plant % Cogeneration availability (Confidence level) % Total working hours per year h Cogeneration system working hours per year h Barranquilla Brewery Data Equivalent Beer Production MMHl Steam Needs (180ºC, 10 bar) tonnes Electricity needs MWh Energy Data Gas turbine consumption (GCV) MWhth Supplemental firing (GCV) MWhth Total natural gas MWhth Electrical balance Electricity Production Import MWh/year Autoconsumption MWh/year Export MWh/year Net export ratio % Electricity self consumption ratio % Efficiency Electrical % Gas Boilers Efficiency % Global % Equivalent electrical efficiency % Baseline Project 8,100 90% 95% 7290 - 8,100 90% 95% 7290 6,926 4.45 223,200 43.065 4.45 223,200 43.065 196,872 196,872 158,832 93,446 252,278 43,065 - 2,153 1,039 2,961 7% 2.3% 31.8 86.0 88.5 83.7 Table 1 To know the energy supply from the grid for production without the project it is necessary to obtain the global efficiency from the Colombian national grid. This figure can be obtained from the “Consolidated 10 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Energy Balance of Colombia” issued by UPME (Unidad de Planeación Minero Energética del Ministerio de Minas y Energía – Energetic and Mining Planning Unit of the Mine and Energy Ministry: http://www.upme.gov.co/GeneradorConsultas/Consulta_Balance.aspx?IdModulo=3): Table2: Grid Efficiency 2007 Description Value Unit Net electricity generated in Colombia 43,844.00 GWh/year Total energy consumed in 2007 by power plants connected to Grid 83,169.52 GWh/year Effective efficiency of grid electricity generation 53% Energy requirements without the project: Energy supply for production: Energy supply for steam production: Total Energy requirements: 47,850 MWh = 90,283MWhth 0.53 204,744 − 18,217 = 186,527 MWhth 276,81GWhth Energy requirements with the project: Gas turbine energy requirements: Supplemental firing energy requirements: Total Energy requirements: 156,816 MWhth 80,259 MWhth 237.08GWhth Energy saving per year: 276.81 − 237.08 = 39.73GWhth In conclusion, this project activity results in total energy savings of 39.73 GWhth below required threshold of 180 GWhth. Therefore, project activity qualifies as a small scale project activity and it will remain so during all the years of the chose crediting period. Project activity does not displace existing CHP or CCHP systems: “Barranquilla Brewery” uses cooling installations in their production process however, there is not any CCHP tri-generation system installed. Therefore, project activity will not displace any existing CCHP system. Brewery obtains electricity from Colombian national grid. Heat process requirements are supplied by three boilers in operation and another one in stand by. Therefore, the proposed project activity is not going to displace any CHP cogeneration system. According to the above description the selected baseline and monitoring methodology, AMS II.H, is applicable to this project activity. B.3. Description of the project boundary: AMS–II.H defines the project boundary as ‘the physical, geographical sites of the project extended to the industrial facility consuming energy generated by the project and process equipment that are affected by 11 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board project activity’. This encompasses entire “Barranquilla Brewery”, including the site where the Project is located. As the project displaces electricity previously purchased from the grid, the project boundary is extended to include the power plants connected to Colombia’s grid. B.4. Description of baseline and its development: Baseline definition of the proposed project activity falls under Paragraph 6 of the mentioned small-scale methodology AMS II.H: “One of the three following options for baseline emission calculations shall be used depending on the technology that would have been used to produce the heat/steam and power and where relevant cooling, in the absence of the project activity: (a) Electricity is imported from the grid (includes the cooling load of a vapour compression system where relevant) and/or steam/heat is produced using fossil fuel; (b) Electricity is produced in an onsite captive power plant (includes cooling load of a vapour compression system where relevant) and/or steam/heat is produced using fossil fuel; (c) A combination of (a) and (b);” As natural gas is the current fuel used in boilers and electricity is imported from the grid, the baseline for the proposed project activity is option (a): “Electricity is imported from the grid and steam is produced using fossil fuels”. Nowadays, the final output capacity from Barranquilla Brewery is 3.0 Million Hl/year. To cover energy needs 3 boilers in operation and another one in standby are needed. This group of boilers produced an average of 28 t/h steam with peaks of 44 t/h. That means that it is necessary to maintain several boilers in operation to face production peaks or maintain another boiler to cover maintenance times. It is necessary to take into account that the maximum output capacity of a boiler is not easy to reach. Normally steam boilers optimal performance is at ¾ of its maximum capacity, which means, also, optimal fuel consumptions and lower maintenance costs. Two new boilers similar to the existing ones would be necessary to produce the needed steam to increase production until 4.9 Million Hl/year capacity in absence of the project activity instead of one as in shown in Table 3 below: 12 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Table 3 According to paragraph 7 of the AMS II.H, two new boilers of 15 t/h would otherwise have been installed in the absence of the proposed project activity instead the cogeneration system an additional boiler within project activity. Therefore, without CDM project activity “Barranquilla Brewery” would have 5 boilers in operation and another one in standby to support other five. This is considered the baseline situation that will be replaced by the proposed project scenario. Data used to calculate baseline emissions are illustrated in table 4: DATA VALUE UNIT SOURCE Efficiency of the displaced equipment 83% - Ratio Steam/heat to the process 0.71 MWh/t 248,000 t/y Factory annual operating hours 8,100 h Gas turbo generator designed annual operating hours 7,695 h Turbo generator confidence level 95% 95% 90% 90% 48,879.00 MWh 156,816 MWhth Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 80,259 MWhth Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 18,217 MWhth Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 Annual Steam production Cervecería de Barranquilla total operating hours Amount of electricity displaced by the project Estimated consumptions of thermal energy by the gas turbine Estimated consumptions of thermal energy by the supplemental burner of the Cogeneration system Estimated consumptions of thermal energy by the fire tube 1 boiler in the project activity 13 Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 page 7.3 Bavaria historical data PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board DATA VALUE UNIT Grid power plants generation several MWh Thermal grid power plants efficiency several MBTU/MWh Grid power plants fuel type several - Natural Gas emission factor 54.30 tCO2/TJ Gas/Diesel oil emission factor 72.60 tCO2/TJ 92.80 tCO2/TJ Sub-bituminous coal emission factor Other bituminous coal emission factor Conversión factor Conversión factor 89.50 3.6 x 10 1,055 tCO2/TJ 6 J/kWh J/BTU SOURCE Associated Services Management, XM Compañía de expertos en Mercados, S.A, E.S.P Associated Services Management, XM Compañía de expertos en Mercados, S.A, E.S.P Associated Services Management, XM Compañía de expertos en Mercados, S.A, E.S.P 2006 IPCC guidelines for nacional GHG Inventories. Volume 2. Chapter 1. Table 1.4. Lower limits. 2006 IPCC guidelines for nacional GHG Inventories. Volume 2. Chapter 1. Table 1.4. Lower limits. 2006 IPCC guidelines for nacional GHG Inventories. Volume 2. Chapter 1. Table 1.4. Lower limits. 2006 IPCC guidelines for nacional GHG Inventories. Volume 2. Chapter 1. Table 1.4. Lower limits. http://www.ieslaasuncion.org/fisicaquimica/sistema4.html http://www.ieslaasuncion.org/fisicaquimica/sistema4.html Table 4 B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered small-scale CDM project activity: THE INITIATION OF THE PROJECT ACTIVITY In early 2007 BAVARIA S.A began preparing the expansion plan of some of their installations in Colombia to satisfy expanding market demand more specifically, in “Malteria de Cartagena” and “Barranquilla Brewery”. One of the points that need to be solved was how to cover future energy demand increase. Boilers to produce steam and import electricity from the grid were business as usual and cheaper option but heat and power ratio in the brewery process allows the installation of CHP systems with less total energy consumption and reducing factory energy costs. In early 2007 this last option was not affordable for the company due to energy costs in Colombia, investment needs and the easiness and safety of using electricity from the grid, but during 2008 there were some externalities that could make cogeneration project feasible: - - In 2007 Bavaria Colombia participates in a fuel switching CDM Project called “Umbrella” knowing the CER revenues for developing GHG mitigation projects. SAB Miller Group has been also participating in similar projects fomenting this kind of activities in the Company. Law 629 of 2000 establishes the need of tax exemptions for mitigation projects enhancement. Law 788 of 2002 establishes that equipment and machinery imports for CDM projects are exempt from tax (Added value tax). After contacts with several project developers and analyzing CDM benefits, Bavaria decided to engage a contest to contract a consultancy in order to obtain CDM project approval and ensure CDM benefits. BAVARIA decided then to invest in the Bavaria Brewery cogeneration system delaying Malteria de Cartagena cogeneration due to project costs. Finally, cogeneration was awarded in July 2008 to the group TURBOMACH and SOLAR TURBINES. 14 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Therefore, considering this date the starting point of the project activity is demonstrated the prior consideration of the CDM to take the investment decision since without tax exemptions, CDM revenues it would have not been possible to develop the project. DEMONSTRATION OF ADDITIONALITY OF THE PROPOSED PROJECT ACTIVITY This section will demonstrates implementation of Project without CDM encounters financial barriers – which can be alleviated by CDM registration. The demonstration of the financial barrier follows the guidance provided in Step 3 of the Combined Tool to identify the baseline scenario and demonstrate additionality. According to the general guidance for SSC-CDM methodologies (version 12), Paragraph 14, Type II new facilities shall demonstrate that the most plausible baseline scenario is the one provided in the respective type II methodology, for this purpose it may be applied steps 1 to 3 of the Combined Tool to identify the baseline scenario and demonstrate additionality (version 02.2). As stated in the above section of the PDD, the baseline scenario would have been the installation of 3 new water tube boilers and to rid the oldest and out of order one. Step 1 identification of alternative scenarios: The available scenarios for BAVARIA that could be considered realistic and that provide outputs with the same properties of the proposed project activity, are as follows: 1. The proposed project activity undertaken without being registered as a CDM project activity. 2. The installation of 3 new water tube boilers to provide the steam demand for the process as described in section B.4. 3. The installation of a new water tube boiler to increase partially the brewery production and wait for market demand evolution to take further decisions. 4. Continuation of the current situation. All these scenarios are in accordance to Colombian industrial and environmental law as stated above and in D section of the PDD. Step 2: Barrier analysis: Sub-step 2a: identify barriers that would prevent the implementation of alternative scenarios: Alternative 1: There are investment barriers, technological barrier and lack of prevailing practices barriers that prevent the implementation of a cogeneration system to occur. The necessary investment to implement such a system is close to 11 million UD$ in comparison to 0.65 million US$ that cost each water boiler. Cogeneration investments needs make these systems unattractive in comparison of current systems based on electricity consumption from the grid. 15 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board According to elemental business rules and to common sense, if there is a more viable economical alternative with less investment it should be preferred if more intensive investment one has no important benefits. Therefore, investment necessary for alternative 2 is so little in comparison to the proposed project activity that in current scenario, the Company would have preferred it to face production expansion avoiding risks. Besides, technology proposed in this project activity is not very common in Colombia. Nowadays only 3% of the installed capacity in the Colombian grid is provided by cogeneration systems due to cited investment needs and distrust on the technology as any of the 9 plants that Bavaria has in Colombia had installed a cogeneration system demonstrating the shortfall of this technology in Colombia. The technology and the equipment described in section A of the PDD shall be imported from the USA and training labours to operate and maintain the plan or risks technological failure are considered during investment decisions. Alternative 3 and 4: Although these scenarios could be considered realistic and are affordable for the Company, an analysis of the global market situation shows that BAVARIA could not wait for market evolution in the region and is obliged to take steps before the demand increment to be prepared and to maintain its market share. Currently BAVARIA controlled almost 90% of the beer market in Colombia, Peru and other surrounding countries, but the market share of other non-alcoholic and soft drinks for BAVARIA is below 50%. If BAVARIA had decided not to increased production until 5.2 hectolitres per year it would not have been able to attend the increased demand in the area, which would have been supply by competitors like AmBev in Brazil, Ecuador and Peru. That would have meant a disaster for the Company profits and the risk to be out of the market in the surrounding areas. Due to this market barrier, alternatives 3 and 4 can not be considered viable. Sub-step 2b: eliminate alternative scenarios which are prevented by the identified barriers Alternative scenarios 1, 3 and 4 are eliminated by the barriers identified above. The only alternative scenario remaining is number 2: The installation of 3 new water tube boilers to provide the steam demand for the process as described in section B.4, therefore, and in accordance to the combined tool, this one is the baseline scenario: if there is only one alternative scenario that is not prevented by any barrier, and if this alternative is not the proposed project activity undertaken without being registered as a CDM project activity, then this alternative is identified as the baseline scenario. Once the baseline is identified and following requirements of the mentioned combined tool, it shall be demonstrated how the registration of the CDM project activity will alleviate the barriers that prevent the proposed project activity from occurring in the absence of the CDM. If the CDM alleviates the identified barriers that prevent the proposed project activity from occurring then it is additional. Based in attachment A to appendix B of the indicative simplified baseline and monitoring methodologies for selected SSC CDM project activities and following the non-binding best practice examples to 16 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board demonstrate additionality, it will be demonstrated how the CDM registration will alleviate the investment barrier that prevent the proposed project activity from occurring. The Project does not generate considerable financial and economic benefits. Revenues are related to savings for electricity purchases, since turbine is designed to produce electricity within the plant. In this case and taking into account step 2 of the tool for the demonstration and assessment of additionality, benchmark analysis has been selected as more appropriate to demonstrate the Project’s additionality. Benchmark The project developer selects the Project’s internal rate return or Project IRR as the financial indicator. The chosen benchmark is the Weighted Average Capital Cost for Colombia. None other prime risks are used based on project characteristics (cogeneration) being the assumption conservative. The financial indicator for Colombia is published by Bloomberg Finance L.D. The indicator consists of the capital cost in Colombia and the country risk premium. On the 19/02/2009, the cost of money without risk is set at 2.78%. The risk premium is also defined by Bloomberg at 9.04%. Consequently, the set expected return of the capital by the market is 11.82%. This benchmark could be considered as conservative considering typical internal rates and risk premium for non strategic investments in industries. In industries non strategic investments an added value prime has to be considered, reflecting all implementation risks the project is exposed: - Risk due to the delay of implementation of the technology solution due to starting problems Risks in planned power efficiencies of gas technology Risk arising from the capital availability and credit risks Risks of production reductions The 10 years period is selected based on the typical lending period provided by commercial bank for local borrowing, benchmark used in analysis (10 years period) and according to contract conditions signed with Turbomach (After 10 years period another turbine shall be bought). All input to investment analysis are based on the rates available within Project Documentation. Project Revenue and Costs Project requires about USD 11.4 million of capital to be implemented and will be financed using combination of debt and equity. Revenue will be generated from savings in energy costs. The expected electricity selling price is established in 199COP/kWh according to “Barranquilla Brewery” electricity bills. The largest operating expense of the Project is the procurement of natural gas purchase payable to the Natural Gas Company. The price of natural gas is set based on historical gas natural price in Barranquilla. Gas is 4.12$/MMBTU. Assumptions used for investment analysis is summarized in the following Table 7, and the investment cost of the cogeneration system including installation is provided in table 8. 17 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Financial Parameters Value Units Exchange price COP/$ WACC Load Factor (90% project workness and 95 confidence level) CER Price Financial Analysis Parameters Valor Average exchange rate 4 years WACC Bloomberg Bavaria Unidades Cogeneration working hours Equivalent Beer Production Electricity Consumption Steam Consumption 6926 4.45 40911750 212040 Energy Prices Source 2,386 COP/$ 11.82% 86% 15.00 $/CER Fuente h MMHl kWh Tonnes steam Valor Normal Operating Conditions Normal Operating Conditions Normal Operating Conditions Normal Operating Conditions Unidades Colombian CPI Source 5.28% Inflation data Colombia CPI US Index 3% U.S. Department of Labour ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt Annual gas natural price increase 3% CPI US Index for energy data Annual electricity price increase 3% CPI US Index for energy data Gas Natural price discount due to cogeneration uses 8.90% Electricity Price (COP) 199.00 COP/kWh Electricity Selling Price Electricity Price Gas Natural Price Technical Aspects UPME data 0.020 US$/kWh 0.083 US$/kWh 4.12 Average electricity price in Barranquilla since Project decision US$/MMBTU Valor Average gas price in Barranquilla since Project decision Unidades Fuente Boilers Efficiency 86% NCV Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 Thermal energy efficiency 56% NCV Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 Heat content steam 0.71 MWh/tonnes steam Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 Gas Turbine Efficiency 31.80% Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 Gross Electric Power Output 6.49 MW Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 Energy SelfConsumption 0.15 MW Basic Engineering document Ref: BVB0807IB.2 – Sept.2008 Table 7 BARRANQUILLA COGENERATION SYSTEM Turbine system Generator Erection Heat Recovery Boiler Preliminary and Tests TOTAL PLANT Process Buildings Transformers room Region costs Total Plant, Buildings and Indirects Project Contingencies (7%) Project Finance Charges Allowance (Import Duties and Taxes) VAT DUTIE Other Taxes Total Cogeneration System Table 8 USD$ $7,710,000.00 Included Included Included $283,613.00 $7,993,613.00 $146,731.00 $231,881.27 $81,500.00 $8,221,844.00 $575,529.08 $338,466.00 $2,326,093.27 $1,394,821.00 $577,286.00 $122,105.00 $11,461,932.35 Based on the assumptions provided in Table 7 and 8, the IRR for this project is calculated to be 10.3% when typical IRR in Colombia for this kind of activities is at least 11.82% according to Bloomberg data. Therefore, without CDM the project would be not interesting enough for Bavaria. Considering CER revenues and VAT exemptions in investment due to CDM, project IRR increases until 14% (36% IRR increase) and reducing investment needs in almost 10%. Taking into account these revenues it would be viable for BAVARIA to face the high investment and implement a cogeneration 18 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board system instead of consuming electricity from the grid and installing a set of new boilers which would have led to higher emissions. Sensitivity Analysis As per guideline provided in the sub-step 2d from Tool for the demonstration and assessment of additionality, sensitivity analysis is performed to demonstrate that the conclusion regarding the financial attractiveness is robust to reasonable variations in the critical assumptions. The Project proponent identified several critical assumptions that have positive impact to IRR: (1) Electricity price, (2) Gas base price, and (3) Investment (4) Year Production. The impacts of 10% variation of these assumptions to the IRR are shown in the following table, whereas the behaviour of individual parameters to the project profitability is shown in the subsequent charts. IRR Variable Electricity price Natural gas price Total investment Production CDM 10% -10% Without CDM 13.4% 6.9% With CDM 17.3% 10.5% Without CDM 6.9% 13.4% With CDM 10.6% 17.2% Without CDM 8.1% 12.9% With CDM 12.0% 16.3% Without CDM 12.9% 7.5% With CDM 16.9% 10.9% Table 5 – Results of sensitivity analysis on a number of critical assumptions Chart below shows that the IRR with CDM registration is higher than benchmark value and above considering positive variations in the selected parameters and, on the other hand, below the benchmark value without CDM registration. Considering negative variations in the selected parameters the IRR is in the most cases below the selected threshold. With CDM revenues the impact of a negative trend in the parameters evolution is almost absorbed, and without the CDM revenues the IRR is extremely negative in most cases. In this negative environment it is shall be considered that there are parameters that are not foreseen that could vary: - - Investment: is considered after a tender of several companies. The contract was awarded after deep study of the proposal and with prices guarantees that prevent it to increase so much. A 10% investment decreasing which would be needed to be on the benchmark is highly improbable. Electricity prices: IRR financial analysis considers an annual electricity price increase of 3% in order to preview any increase in electricity costs. Besides, in case of a higher electricity price 19 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board - - increase a higher gas price would be foreseeable1 increasing energy costs in Barranquilla and reducing saving electricity revenues. Gas price: A 10% gas price decrease it is also unexpected in a 10 years period considering global energy context. In this scenario, a lower electricity price would be also foreseeable reducing total costs savings. Production: IRR financial analysis considers a 90% plant availability during 10 years and a cogeneration availability of 95%. This scenario is conservative attending to normal breweries operation and current procedures of industries. Plant Operating range is decided year by year according to expected forecast demand and plant characteristics and costs. Figure 1 below summarizes the behaviour of varying parameters for changes up to 10%. The dot line of the chart represents the profitability benchmark of 11.82%. As can be seen in the chart, the Project is most sensitive towards variation of electricity prices, gas prices total investment and production. IRR 10% 20% IRR -10% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Without With CDM Without With CDM Without With CDM Without With CDM CDM CDM CDM CDM Electricity price Natural gas price Total investment Production Figure 1: sensitivity analysis Conclusion: In industries non strategic investments is necessary that in all conditions IRR should be higher than established benchmark due to flexibility necessary to operate. In this sense, CDM allows project activity ensures higher IRR’s than benchmark in almost all predictable scenarios for Barranquilla Brewery. Project scenario considers cassation between Brewery electricity demand and power production as perfect. This is, all electricity produced by the cogeneration will be used in the plant being electricity 1 In Colombia thermal power plants, especially those working by gas, use to fix electricity price due to their higher cost respect of large hydro. 20 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board savings as optimal. At the reality this assumption is improbable and part of the electricity produced will be sold to the grid at very low prices reducing total project savings. Without CDM project activity would be highly improbable due to IRR in almost all forecast scenarios and investment needed. It is also need to remark IRR benchmark use to be higher in industries non strategic projects. B.6. Emission reductions: B.6.1. Explanation of methodological choices: Baseline emissions The Baseline emissions for the project activity can be estimated as follows: Emissions due to the grid electricity consumptions in the baseline: BE P , y = E P , y × EFGrid ,CM , y Where: Baseline emissions for the grid electricity displaced by the project activity in year “y” (tCO2eq/year) E P, y Amount of grid electricity displaced by the project activity in year “y” (MWh) EFGrid ,CM , y Emission factor of the grid (tCO2eq/MWh) BE P, y EFG , y will be calculated in accordance with methodology AMS I.D paragraph 9 (a) as the combined margin, consisting of the combination of operating margin and build margin according to the procedures prescribed in the tool to calculate the emission factor for an electricity system. The electric system in Colombia is characterised by the generation of conventional hydroelectric energy and the generation of thermal power plants, which represent more than 96% of the installed power and energy generated during 2008. Minor plants based on renewable energies play a minor role and represent 5% of the energy generated and represent less than 4% of the capacity installed. The National Dispatch Centre, which coordinates the electricity market trade and the operations of the National Interconnected Electricity System of Colombia, and the Mining-Energy Approach Unit of the Ministry of Mines and Energy, provides the data required for the calculation of these two emission factors. The method selected to calculate the operating margin emission factor is the Simple Adjusted OM, called “option b” of the “Tool to calculate the emission factor of an electricity system", version 01.1. The Simple Adjusted OM provides a formula of the sources for calculating the emission factor taking into account the hourly generation system and the % provided by the low-cost/must-run plants. Ex-post option is selected for the OM calculation; therefore the operating margin shall be updated annually during monitoring. 21 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board In accordance with the "Tool to calculate the emission factor of an electricity system", the baseline factor (EFgrid,CM,y) is calculated as the weighted mean of the operating margin emission factor (EFgrid,OM,y) and the build margin emission factor (EFgrid,BM,y), the weighting factors selected are identical for both factors (wOM=wBM=0,5). For the second and third crediting period, the values of these factors are 0.25 for WOM and 0.75 for WBM. a) Calculation of the operating margin emission factor (EFgrid,OM,y): Simple Ajusted OM The option of the “Tool used to calculate the emission factor of an electricity system” is applicable to electrical systems, where % of the mean generation during a period of five years for low-cost/must-run plants exceeds the 50% value, as is the case of the Colombian System. The main difference with the simple method lies in that this method takes into account this type of plants, differentiating them in the calculation of the emission factor from the rest of plants. The plants registered as CDM project activities have been taken into account for the calculation of the operating margin emission factor, as established by the tool. Then, the procedure followed for the calculation of the operating margin includes the following stages: 1. The selected option for calculating the emission factor of each plant is based on efficiency (option B2) of the different plant of the Colombian Interconnected System, with the following expression: [Equation 1] Where EFEL,m,y ηm,y Heat ratem EF CO2,m,i,y (tCO2/GJ) is the emission factor of plant m in tCO2/MWh. is the average net energy conversion efficiency of power unit m in year y (%) is the inverse of the efficiency of the power unit m (GJ/MWh)2 is the average CO2 emission factor o fuel type I used in power unit m in year y 2. Value λy must be calculated before the calculation of the operating margin emission factor, using the following expression: The steps required to calculate λy are: Step i: The total hourly generation data of the year are presented, from high to low, in comparison to the total 8760 hours of the year. 2 The values of all the plants operating were obtained through the Dirección Servicios Asociados, XM Compañía de Expertos en Mercados S.A. E.S.P in units of MBTU / MWh and through an exchange of units have been transformed to GJ / MWh to include in this term. 22 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Step ii: Calculate the total annual generation of low-cost/must-run plants. Step iii: Draw a horizontal line that crosses the line represented, so that the area under the curve represents the total generation of low-cost/must-run plants. Step iv: Determine value λy, taking into account that λy is calculated as X/8760, where X represents the hours on the right of the point of intersection. 3. The next step involves the calculation of the quantity of carbon dioxide emissions produced by energy unit generated by the system. The said emission factor (EFDD,h) is obtained with the following expression: Where is the annual operating margin emission factor, and - EFgrid OM adj y, - EGj y, EGk y is the net electricity generated and supplied to the grid by plant j or k during the year and in MWh, where k are plants low-cost/must-run and j the others one. - EFEL m y is the emission factor of plant j or k, during year y and in t CO2/MWh. It is calculated in stage 1. After downloading the data corresponding to the year 2008 from NEON and applying the previous steps, we have obtained the following value for the operating margin emission factor: EFgrid,OM,2007 = 0.422 tCO2/MWh Annex 3 includes more information about the calculations that have been carried out. b) Build margin emission factor (EFgrid,BM,y) “Option 1” has been chosen in the build margin emission factor as the tool selected, Therefore, it must not be updated annually during the first crediting period, while the factor will be updated with an ex-ante approach for the second crediting period. This updated factor should be used for the third crediting period. The set of plants used for the calculation of the build margin factor is made up of the alternative that represents the greatest quantity of energy between the five plants that have been built recently, which generated 20% of the system’s energy. Both cases have not included the plants registered as CDM project activities, as established in the tool. Once the option of the number of plants to use is selected, the build margin emission factor will be calculated with the following equation: 23 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Where EFEL,m,y is the emission factor of plant m in kgCO2/MWh fuel i, of the set of plants selected for the calculation of the build margin emission factor and it is obtained from equation 1. EGm,y is the quantity of energy generated by plant m in year y, This calculation uses the annual plant generation information, provided by the CND through the NEON system. The same units described for OM emission factor calculations have been applied for the equation. For the year 2008, following the previous steps, we have obtained the following build margin emission factor: Egrid,BM,2007 = 0.211 tCO2/MWh Annex 3 includes more information about the calculations that have been carried out. c) Combined margin emission factor (EFgrid,CM,y) The baseline emission factor (EFy) is obtained with the combination of the operating and build margin emission factors: Where: - EFgrid,CM,y Is the baseline emission factor during year y - wOM Is the weight of the operating margin emission factor, A value of 0,5 has been taken. For the second and third crediting period this factor has a value of 0.25. - EFgrid,OM,y Is obtained in stage a) - wBM Is the weight of the build margin emission factor, A value of 0,5 has been taken. For the second and third crediting period this factor has a value of 0.75. Is obtained in stage b) - EFgrid,BM,y The following global emission factor is obtained with the combination of the aforesaid factors for 2008: EFgrid,CM,2008 = 0.316445 tCO2/MWh Emissions due to the use of water-tube boilers to produce captive steam in the baseline: According to AMS II.H, in case of a project activity displacing a captive steam generation plant, the baseline emissions are calculated based on the equivalent amount of fuel that would have been used in the absence of the project activity, up to the point in time when the equipment needs to be replaced. According to the tool to calculate project or leakage CO2 emissions from fossil fuel combustion: BE FC , y = FCGN , y × COEFGN Where BE FC , y Are the CO2 emissions from natural gas combustion in the baseline boilers (tCO2eq/year) 24 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Is the quantity of natural gas that would have been combusted during year y (m3/yr) Is the CO2 emission coefficient of natural gas (tCO2/m3) FCGN , y COEFGN Since necessary data are not available option B of the tool is used: COEFGN = NCVGN × EFCO2 ,GN Where Is the weighted average net calorific value of natural gas (GJ/m3) Is the weighted average CO2 emission factor of natural gas (tCO2/GJ) NCVGN EFCO2 ,GN According to Paragraph 10(b) of AMS II.H: FC y = FCGN , y × NCVGN = S P, y η cs Where FC y S P, y η cs Equivalent amount of natural gas that would have been consumed in boilers in year y (GJ) Thermal energy delivery of the project activity (GJ) Efficiency of boilers Taking into account the above equations, emissions due to the use of water-tube boilers to produce captive steam in the baseline are as follows: BE FC , y = S P, y η cs × EFCO2 ,GN Baseline emissions: BE y = BE P, y + BE FC , y Project emissions According to the AMS II.H the project emissions for the project activity will be the emissions corresponding to the use of fossil fuels and electricity. Since the proposed project activity is based in a cogeneration system, there is no net consumption of electricity from the grid and the fossil fuel used is natural gas. The project emissions due to the consumption of natural gas in the gas-turbine and in the auxiliary boiler will be calculated in accordance to the tool to calculate project or leakage CO2 emissions from fossil fuel combustion, and are given by: PE FC , y = FCCG , y × EFCO2 ,GN Where PE FC , y Are the CO2 emissions from natural gas combustion in the project activity in year y (tCO2eq/yr) FCCG , y Is the amount of natural gas that is consumed by the project activity in year y (GJ) 25 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board FC CG , y = FC y × NCVGN Where FC y Is the quantity of natural gas combusted in the project activity during the year y. (m3/yr) Emission reductions The emission reductions due to the project activity will be given by: ER y = BE y − PE FC , y B.6.2. Data and parameters that are available at validation: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Emission factors KgCO2/TJ Emission factor of the plants, in accordance with the fuel used for the generation of energy Table 1.4 on page 1.23 of the document “2006 IPPC Guidelines for National Greenhouse Gas Inventories”, Volume 2, taking the lowest value for a confidence level of 95%. See annex 3 Document “Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reference Manual” does not provide specific emission factors per thermal energy unit for Colombia, so that the general values stated in Volume 2 of the “2006 IPPC Guidelines for National Greenhouse Gas Inventories” have been used. These data will be revised when relevant bibliography is available η cs Weighted average efficiency of the displaced boilers. Historic data of the boilers efficiency registered by BAVARIA 86% According to paragraph 10.c).(ii).1 of the methodology AMS II.H, the highest measured efficiency of the units currently in operation in BAVARIA has been chosen. 26 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: SHR GJ/t Ratio of the energy delivered to the process per tonne of steam Calculation by BAVARIA Engineers 2.556 GJ/t Based in the energy content of the steam calculated according to thermodynamic equations. Data/Parameter: Data unit: Description: Source of data: Plants considered for the calculation of the build margin emission Factor (m) Text Identification of the plants for the calculation of the build margin emission Factor Regulator of the electricity market: UPME Value applied: The data has been provided by UPME for the ex-ante calculations (see Annex 3) This ratio is used to calculate the Thermal energy delivery of the project activity ( S P , y = SHR x tonnes of steam) Justification of the UPME (Energy and mining planning unit of the Mining and Energy Ministery) choice of data or collected annually the set of plants most recently built for Build Margin description of calculations purposes. measurement methods and procedures actually applied : Any comment: B.6.3 Ex-ante calculation of emission reductions: BASELINE EMISSIONS Baseline emissions from grid electricity displacement ( BE P, y ) As elaborated earlier for, the baseline emissions are calculated based on the net electricity output supplied by the Project to the grid multiplied with grid emission factor. For the purpose of calculating exante emission reduction data contained in table 6 of section B.4 are used. BE P , y = E P , y × EFGrid ,CM , y = 48.879 MWh x 0.316 tCO2/MWh = 15,468 tCO2/yr 27 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Baseline emissions from natural gas combustion in captive boilers displaced ( BE FC , y ) According to sections above, the baseline emissions for the consumptions of natural gas in the boilers that are displaced by the project activity is based in the estimated amount of steam produced by each boiler and their efficiency. BOILER Steam BL t/y Thermal Energy TJ Fuel TJ Water tube2 Water tube4 Water tube5 Water tube6 Fire tube1 49,600 49,600 49,600 49,600 49,600 126.78 126.78 126.78 126.78 126.78 147.42 147.42 147.42 147.42 147.42 Fuel type Natural gas Natural gas Natural gas Natural gas Natural gas BE FC , y = 248,000 Baseline emissions tCO2 8,004.68 8,004.68 8,004.68 8,004.68 8,004.68 40,023 BE y = BE P, y + BE FC , y = 15,468 + 40,023 = 55,491 tCO2/yr PROJECT EMISSIONS The Project emissions are the sum of emissions from combustion of natural gas for the main gas turbine and the auxiliary burners to increased steam production, plus the consumptions of the conventional boilers (fire-tube 1) needed to supply peak demands. Taking into account values provided in table 6, the project emissions calculation is as follows: Fuel consumptions Fuel Type MWhth TJ Baseline emissions tCO2 Gas turbine Supplementary firing Fire-tube 1 Natural gas Natural gas Natural gas 156,816 80,259 18,217 564.5376 288.9324 65.5812 30,654 15,689 3,561 255,292 PE FC , y = 49,904 EX-ANTE EMISSIONS REDUCTIONS ER y = BE y − PE FC , y = 55,491 – 49,904 = 5,587 tCO2/yr B.6.4 Summary of the ex-ante estimation of emission reductions: Based on the data we already know, we estimate that the following reduction in emissions will be attained during the first crediting period of the project activity. 28 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Year Estimation of project activity emissions (tCO2e) Estimation of baseline emissions (tCO2e) Estimation of leakage (tCO2e) 24,952 49,904 49,904 49,904 49,904 49,904 49,904 24,952 27,745 55,491 55,491 55,491 55,491 55,491 55,491 27,746 0 0 0 0 0 0 0 0 Estimation of overall emission reductions (tCO2e) 2,793 5,587 5,587 5,587 5,587 5,587 5,587 2,792 349,328 388,437 0 39,109 01/07/2009 2010 2011 2012 2013 2014 2015 31/06/2016 Total (tonnes of CO2e) B.7 Application of a monitoring methodology and description of the monitoring plan: B.7.1 Data and parameters monitored: Data / Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any) Any comment: Data / Parameter: Data unit: Description: Source of data: Steam production t/year (tonnes of steam) Steam production by the Cogeneration system (Gas turbine and supplementary fire) and the auxiliary conventional boilers (Fire-tube 1) to supply the production process in Barranquilla Brewery Project. Project site. Direct measurement every minute. 248,000 t/year Steam produced by the cogeneration system will be connected to the existing steam pipe of the factory, near the cogeneration plant. There is installed an orifice-plate flow meter connected to the instrumentation and control system for data gathering (SAD). SAD is an integrated supervision and analysis system for collecting all the parameters monitored in the cogeneration system. SAD will check information on-line prior to its processing. All data out of range will be detected immediately; therefore any deviation in steam flow meter can be detected, monitored and corrected asap. This parameter is used to calculate: S P , y = SHR x tonnes of steam. Natural gas consumption m3/year Consumes of natural gas of the cogeneration system and the conventional boilers. Project site. Direct measurement continuously. 29 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any) Any comment: 255,292 MWhth There will be two different sources for obtaining data of natural gas consumption: - SAD connected to the new metering house and the existing flow meter station. - GASES DEL CARIBE, S.A (natural gas provider) invoices. Personnel responsible for monitoring will double check consumption data to detect any incoherencies and take the necessary measures to correct them. Data / Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any): Any comment: NCVGN GJ/m3 Net calorific value of natural gas GASES DEL CARIBE, S.A. Updated yearly by the provider. 0.035985 GJ/m3 Data / Parameter: Data unit: Description: Source of data: E P, y Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Brief description of measurement methods and procedures to be applied : - - MWh Quantity of electricity displaced by the project activity It will be measured on-line by SAD. Imports and exports to the grid will be measured by Electricaribe. 48,879 MWh The cogeneration power plant will be connected to the Colombian grid by means of a general grid switch at 13.2 kV. An automatic switch (DYF) will be installed to connect the factory to the cogeneration power plant and monitor factory electricity consumptions. It will be installed a meter to monitor export and import energy to and from the grid (MED-R) controlled and maintained by Electricaribe. Another electrical meter will be installed to monitor gas turbine 30 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board QA/QC procedures to be applied (if any): Any comment: Data / Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any): Any comment: Data/Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Brief description of measurement methods and procedures to be applied : electricity production (MED-G1) and connected to SAD. SAD calculates on line energy produced by the gas turbine, internal consumes in the cogeneration system, electricity supply to the factory and imports/exports to the grid. This last will be crosscheck with Electricaribe invoices to detect possible errors. SAD has an internal check system to detect data that are out of thresholds according to other parameters of the cogeneration system. Any discrepancy or error detected is immediately report to monitoring responsible personnel. Meter equipment will be calibrated periodically in accordance with the standards established by the national authorities. - EGj y, EGk y kWh Annual electricity generated by each plant of the national interconnected System of Colombia. NEON system The data obtained from the NEON system and corresponding to year 2008 have been applied. The quantity of energy generated by the power plants during the year is registered in the NEON system as “Real generation”. This system will be accessed once a year to download data, which will be stored in an electronic spreadsheet. The data of the total generation of the system and the data corresponding to each plant will be downloaded. The sum of all individual data will be checked, in order to ensure that it is similar to the total system generation data. In case there are differences between the two types of data, the reasons and sources will be analysed and errors will be corrected. Electricity generated by each power plant of the grid hourly. kWh Hourly electricity generated by the National Interconnected System of Colombia NEON system The data obtained from the NEON system and corresponding to each hour of the year 2008 have been applied The quantity of energy generated by the System is registered in the NEON System as "Real Generation". This system will be accessed once a year to download data, which will be stored in an electronic spreadsheet 31 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board QA/QC procedures to be applied (if any): Any comment: Data / Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any): Any comment: Data/Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Annual electricity generated by low-cost/must-run power plants and the rest of the power plants kWh Annual electricity generated by low-cost/must-run power plants and the rest of the power plants Data calculated from data of annual generation of each power plant It has been calculated the annual amount of generation from all low-cost/mustrun plants and the other plants obtaining a value of: Low-cost/must-run (kWh) 46,129,715,710 Thermal (kWh) 8,165,774,653 This piece of data is calculated automatically by the spreadsheet designed to monitor the project. It should take into account each year adding new power plants and their typology. Heat Rate MBTU/MWh (GJ/MWh) Heat Rate of the different plants connected to the National Interconnected System of Colombia Associated Services Management, XM Compañía de Expertos en Mercados S.A. E.S.P. See annex 3 32 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any): Any comment: Data/Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any): Any comment: Data/Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: This piece of data is provided directly by the Colombian electricity authorities in different formats The data will be updated in accordance with the latest information facilitated by the Colombian electricity authorities Emission factor of each plant (EFEl,m,y,) tCO2/MWh Emission factor of each plant, in accordance with the type and characteristics of the fuel used to obtain energy See annex 3 It will be calculated once a year with the application of Equation 1 of section B.6.1. The data will be updated in accordance with the latest information facilitated by the Colombian electricity authorities Operating margin emission factor (EFgrid,OM,y) tCO2/MWh Operating margin emission factor 0.422 33 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any): Any comment: Calculated once a year, as specified in section B.6.1. Data/Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any): Any comment: Build margin emission factor (EFgrid,BM,y) tCO2/MWh Build margin emission factor 0.211 Data/Parameter: Data unit: Description: Source of data: Value of data with the purpose of calculating expected emissions reductions in section B.6.3: Baseline emission factor (EFgrid,CM,y) tCO2/MWh Baseline emission factor 0.316445 - Calculated once a year, as specified in section B.6.1. - 34 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Brief description of measurement methods and procedures to be applied : QA/QC procedures to be applied (if any): Any comment: B.7.2 Calculated once a year, as specified in section B.6.1. - Description of the monitoring plan: This section describes the tasks that will be developed with the purpose of carrying out the regular monitoring of the project activity. In this sense, a monitoring plan has been designed with the purpose of guaranteeing that the project activity is correctly organised from the start, in terms of data gathering and maintenance, as required to obtain realistic GHG emission data. All data and parameters will be recorded in accordance with the quality systems of the companies participating in the project, with their corresponding quality control and assurance procedures. A Monitoring Plan has been designed with the purpose of guaranteeing that the project activity is correctly organised from the start, in terms of data gathering and maintenance, as required to obtain realistic greenhouses gases emission data. The Monitoring Plan of Barranquilla Brewery Project describes the procedures for data collection, and auditing required for the project, in order to determine and verify emissions reductions achieved by the project. This project will require only very straightforward collection of data, described below, most of which is already collected routinely by the staff of the Brewery plant, where the proposed CDM project is to be implemented. Data Collection and Reporting Structure Operational data relevant for emission accounting will be logged by operator on daily basis using a pre-prepared log-sheet form, as part of the data logging system. The log book will be signed and checked by an Operational Manager who will compile the report on weekly basis to determine: - Daily electrical output delivered to the factory Daily steam consumptions in the factory Daily gas consumptions in the cogeneration system and in the conventional boilers. The site operational manager consolidates the above data on monthly basis, and cross-checked them against receipts from GASES DEL CARIBE, S.A, sales invoices from Electricaribe, and gas properties provided by GASES DEL CARIBE, S.A. The consolidated information is summarized into a monthly report, checked and signed by the site general manager. On six-monthly basis, these reports will be compiled and an estimate of emission reduction is made and reported to the Barranquilla BreweryBAVARIA Board of Director in an Emission Reduction Delivery Report (ERDR). The ERDR also reports findings of periodic procedure & calibration audit performed within the reporting period. Annually the ERDR is compiled and reviewed and an Emission Reduction Monitoring Report (ERMR) is issued for verification by the DOE. Archiving of Data Field data will be stored on computer software, but daily log-sheet will serve as backup purpose and archived at Project site. Monthly report/ERDR/ERMR will be made available at both the 35 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Project site and BAVARIA administrative office in both electronic copy and hard-copy to ensure data survival. All data will be kept up to 3years after the end of crediting periods. Training & Implementation Prior to commencement of crediting period, BAVARIA will empower relevant officers for CDM implementation in a meeting. At the end of the meeting, a procedure should be developed, documented, and agreed by all relevant parties to be disseminated and become basis for compliance check prior to ERDR issuance. Annually, this procedure is reviewed for effectiveness and improvement will be made where required. This procedural document will be made available during verification. The Methodology describes the procedure and equations for calculating project and baseline emissions from monitored data. For the specific project, the methodology is applied through a spreadsheet model. The model contains a series of worksheets with different functions: • Data entry sheet (fuel consumption, efficiencies) • Calculation sheets (natural gas) • Result sheet (emission reductions) The Monitoring Plan contains the following worksheets: Sheet 1 2 3 4 5 6 7 Title Instructions Monthly and annual electricity generation Monthly and annual natural gas consumptions Monthly and annual Steam delivered to the Brewery Grid data Combined margin calculation Calculation of ERs Operating Margin calculation Barranquilla Brewery Project uses the Simple Adjusted OM of the “Tool to calculate the emission factor for an electricity system” for the calculation of the operating margin emission factor. In this calculation will use four parameters to guarantee the dynamic and automatic monitoring of the reduction of GHG emissions attained after the implementation of the project: - - - The emission factors of each plant, taking into account the emission factors obtained from the document “2006 IPPC Guidelines for National Greenhouse Gas Inventories”, taking into account the lowest value with the 95% interval confidence. The hourly data of total system generation. Hourly total system generation from top to the bottom and are represented in terms of the 8760 hours a year. In addition it is estimated the area under the curve for different times of year to calculate the value of λ. The operating emission factor is calculated taking into account the value of λ, the generation of each power plant and their emission factors. B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) 36 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board The application of the baseline and monitoring methodology was completed on 15th, April 2009, by Factor CO2, which is not a project participant. The responsible person was: Javier Vallejo Drehs – [email protected] Factor CO2 Integral Services, S.L. C/ General Moscardó, 3 – 28020 Madrid Tlf: +34 902105560 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: 1st June 2008. Sign of the contract between Bavaria, S.A and TURBOMACH-AESA. C.1.2. Expected operational lifetime of the project activity: 30 years, as per manufacturer information. 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: 1st July 2009 7 years C.2.2. Fixed crediting period: Not applicable C.2.2.1. Starting date: Not applicable 37 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board C.2.2.2. Length: Not applicable SECTION D. Environmental impacts D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: According to decree number 1220 of 21st April 2005 “Environmental license regulation”, article N. 9 paragraph 3 a), it is mandatory to apply for and to obtain an environmental license to build and operate power plants of more than 10 MW. To apply for this license it is mandatory, as well, to develop the required Environmental Impact study. Taking into account that the proposed project activity consists of a Natural gas turbine of 6.485 MW of electrical capacity, it is concluded that an analysis of the environmental impacts is not required by the host party. In any case, Bavaria S.A, decided to develop an Environmental management plan and to apply for approval to the DAMAB (Environmental Department of Barranquilla). On 28th February 2008 DAMAB issued resolution N. 318 confirming that this Environmental management plan was in accordance to Environmental Law in Colombia. This resolution established six requirements that shall be applicable during the built of the proposed cogeneration system: 1. 2. 3. 4. 5. To apply strictly the Environmental management plan. To guarantee the management and disposal of wastes. To dispose adequately solid wastes produced during the works. To treat specifically dangerous wastes in accordance to decree 4741 of 2005. Any relevant modification of the envisaged activities shall be communicated to the DAMAB and consequently change the management plan. 6. Every six months it is mandatory to provide the DAMAB with an environmental performance report. These requirements are included in the monitoring plan of this project activity. 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: To demonstrate that the proposed project activity does not imply significant environmental impacts, Bavaria, S.A decided to develop an Environmental impact and security study (Ref BVB0808EIA 2). This study is focused in atmospheric emissions and acoustic contamination. This study shows that NOx, CO emissions values and noise levels are below legislation thresholds. 38 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Parameter Emissions and immissions NOx (Turbine emissions) 50 mg/Nm3 NO2 (immissions) CO (immissions) 52.07 µg/Nm3 3.73 mg/Nm3 Acoustic Noise level 65.3 dBA Thresholds according to Law 107.9 mg/Nm3 (Regulation N.909 5/06/2008) 100 µg/Nm3 (Regulation N.601) 10 mg/Nm3 (Regulation N.601) 75 dBA (regulation N. 0627 7/04/2006) SECTION E. Stakeholders’ comments E.1. Brief description how comments by local stakeholders have been invited and compiled: The stakeholders are defined as the public, including individuals, groups or communities, affected, or likely to be affected, by the proposed CDM project activity. The stakeholders identified for this project activity are as follows: - Academic staff from Barranquilla universities and academies. Environmental and certification companies. Professional associations. Environmental authorities and members of the government. Communal action board. Local authorities. NGOs The project participant hosts a stakeholder consultation meeting at the Barranquilla Brewery auditorium th on 5 , February 2009. Invitations were distributed by mail, fax and direct telephone calls, to various institutions included in the table below. The stakeholder meeting was attended by 34 people excluding representative of Gas Natural SDG and Bavaria, S.A. The meeting was hold by experts form Gas Natural and Bavaria, who presented the Project activity and explained the Kyoto Protocol and CDM issues. Toward the end of the presentation, a section of question and answer was held to accommodate all inquiries and comments. A questionnaire was circulated among those present to survey their opinion about the project. 39 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board CONTACT ORGANIZATION ALBERTO MARIO AREVALO Chemical Engineering association ANA REBOLLEDO Communal action board of LA CHINITA neighbourhood CARIDAD CASTELLANOS Communal action board of LAS NIEVES neighbourhood DEIVYS VANEGAS ALVARADO Funlider EDUARDO RUIZ NGO FURDECOL ELVIRA RODRIGUEZ GIL SENA Academy FRANK TORO NGO LINEA VERDE HERNANDO CARRETERO PAEZ IVAN DARIO SUAZA DAMAB Environmental Authority in Barranquilla Communal action board of LA LUZ neighbourhood IVETH BRAY JAIME ECHEVERRY ONG FEDEMAR Communal action board of LAS NIEVES neighbourhood JANETH SILVA Communal action board of LAS NIEVES neighbourhood JORGE MOLINA Pollutant control Ltda. JORGE PINZON Communal action board of LAS NIEVES neighbourhood JOSE RAFAEL PALACIO ANGULO Municipality JULIO MONTECERIN Communal action board of SIMON BOLIVAR neighbourhood LIBARDO VANEGAS Funlider LUCELY SANTANDER LUIS MIGUEL ORTEGA PROAMBIENTE LTDA Communal action board of LA CHINITA neighbourhood MANUEL ESTEBAN VEGA Communal action board of LAS NIEVES neighbourhood MANUEL PEDRAZA HEREDIA NGO APRENDA NATALIE CASTAÑEDA J Environmental solutions engineering company NICOLAS SALINAS DE LA CRUZ NORBERTO GUAITE DAMAB Environmental Authority in Barranquilla Communal action board of LA CHINITA neighbourhood OSIRIS FARAK Communal action board of LA CHINITA neighbourhood OSWALDO DEL CASTILLO Chemical Engineering association PAOLA FONTALVO Municipality PASCUAL QUIÑONEZ NGO FURDECOL RAFAEL LADRONDEGUEVARA Botanic Garden of Barranquilla RAFAEL PEÑA SGS COLOMBIA SA RICARDO ZAPATA SILVANA BERNAL SENA Academy ANDI professional association 40 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board CONTACT ORGANIZATION TIBALDO SANJUELO Pollutant control Ltda. WILLIAN ENRIQUE PERTUZ MARMOL Local Management Board List of stakeholder attending the meeting Assistants to the Stakeholder meeting 10 7 7 6 5 5 3 3 3 2 2 2 2 1 A cademy P rivate Co mpany P ro fessional association Environemntal authority Assistants E.2. Co mmunal actio n bo ard Local autho rities NGOs Entities Summary of the comments received: The comments received during the meeting and the ones included in the answers to the 26 questionnaires that were filled out, are summarized in the table below: Results of the survey. Summary of comments received. Stakeholders presents at the meeting: 36 Stakeholders surveys: 26 Question 1: Taking into account the information at your disposal, give a brief opinion about the project. Responses summary In general terms, the project was considered beneficial to the environment and very important for the social-economic development of the region. Question 2 Do you thing that the project contribute to the social, economical and environmental development of the region. All the responses were coincident: the project contributes to the environmental and social development of the region, mainly by enhancing employment opportunities. Question 3 Do you thing that the project contribute to the social, economical and environmental development of Colombia. This project enhance social, economical and environmental development of Colombia, moreover, the success of this project is an example for other cities. Question 4 41 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board How do you thing that the implementation of the project could affect yourself. This project implementation does not affect directly people. The development of the project will affect positively citizens’ health, through the reduction of pollutants and GHG emissions. Question 5 Any additional commentary to the project. E.3. All the people presents in the meeting declared; and all the surveys shows; that they were very pleased with the explanations about the project. They ask Bavarian representatives for information about other environmental projects like this one. Report on how due account was taken of any comments received: Clarifying explanations were provided to the meeting attendants with regard to the matters expressed in the comments and inquiries received. There were no negative comments or worries about the project that may require a decision taking action plan from Bavaria, S.A for the project planning or operation stages. 42 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: BAVARIA, S.A. Calle 94 No 7 A -47 Bogota DC Cundinamarca Colombia +57 6389000 +57 6389254 www.bavaria.com.co Engineer Walteros Torres Héctor Wilson Dirección de Desarrollo Sostenible (Sustainable Development Division) +57 314 3826736 +57 6389254 +57 6389235 [email protected] 43 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Organization: Street/P.O.Box: Building: City: State/Region: Postfix/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last Name: Middle Name: First Name: Department: Mobile: Direct FAX: Direct tel: Personal E-Mail: GAS NATURAL, SDG SA Plaça del gas, 1 Barcelona Cataluña 08003 Spain +34 934025179 www.gasnatural.com Department manager Beltran Montserrat Soluciones Energéticas y Proyectos MDL (CDM projects and Energetic solutions) +34 934025179 [email protected] 44 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Annex 2 INFORMATION REGARDING PUBLIC FUNDING 45 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Annex 3 BASELINE INFORMATION POWER PLANT FUEL GEN (kWh) MBTU/MWh TJ/MWh tCO2/MWh tCO2 COGEN. INGENIO PROVIDENCIA BIOMASS 1,699,582 COGENERADOR BIOAISE BIOMASS 3,534,226 COGENERADOR INCAUCA BIOMASS 25,857,912 COGENERADOR TUMACO BIOMASS 323,569 COGENERADOR PROENCA BIOMASS 5,121,510 PAIPA 2 SUB-BITUM 281,246,742 12.22 0.0128921 1.19638688 336479.9122 PAIPA 3 SUB-BITUM 277,498,395 12.27 0.01294485 1.20128208 333353.8491 PAIPA 4 SUB-BITUM OTHER BITUM OTHER BITUM OTHER BITUM OTHER BITUM OTHER BITUM 763,085,265 9.25 0.00975875 0.905612 691059.173 690,928,040 9.47 0.00999085 0.894181075 617814.7776 50,575,207 12.76 0.0134618 1.2048311 60934.58228 114,830,711 9.6 0.010128 0.906456 104088.987 215,873,861 9.01 0.00950555 0.850746725 183653.9803 89,957,578 8.68 0.0091574 0.8195873 73728.08847 TASAJER 1 GENERADOR ZIPA BOGOTA 2 GEN. ZIPA BOGOTA 3 GEN. ZIPA ISA 4 GENERADOR ZIPA ISA 5 GENERADOR 53,896,404 PARQUE EOLICO JEPIRACHI WIND COGENERACION COLTEJER COGENERADOR CENTRAL CASTILLA COGENERADOR INGENIO RIOPAILA COGENERADOR INGENIO RISARALDA FUEL OIL 1,442 6.3 0.0066465 0.4825359 0.695816768 FUEL OIL 3,204,040 6.3 0.0066465 0.4825359 1546.064113 FUEL OIL 4,363,232 6.3 0.0066465 0.4825359 2105.41608 FUEL OIL 7,552,296 6.3 0.0066465 0.4825359 3644.253947 CENTRAL CARTAGENA 1 GAS 6,196,271 11.81 0.01245955 0.676553565 4192.108971 CENTRAL CARTAGENA 2 GAS 19,598,940 11.81 0.01245955 0.676553565 13259.7324 CENTRAL CARTAGENA 3 GAS 4,835,364 11.52 0.0121536 0.65994048 3191.052235 CIMARRON GAS 71,270,085 14.32 0.0151076 0.82034268 58465.8929 MERILECTRICA 1 GAS 25,353,180 9.64 0.0101702 0.55224186 14001.08728 MORRO 1 GAS 172,309,392 10 0.01055 0.572865 98710.01972 MORRO 2 GAS 91,598,651 10 0.01055 0.572865 52473.66095 PALENQUE 3 GAS 395,750 14.32 0.0151076 0.82034268 324.6509437 PROELECTRICA 1 GEN. GAS 21,704,567 8.1684 0.008617662 0.467939047 10156.41439 PROELECTRICA 2 GEN. GAS 34,321,532 8.1684 0.008617662 0.467939047 16060.38496 T SIERRA1 GENERADOR GAS 234,543,400 6.37 0.00672035 0.364915005 85588.40598 TEBSA TOTAL GAS 3,433,354,928 7.8 0.008229 0.4468347 1534142.119 TERMO FLORES 2 GAS 53,223,823 10 0.01055 0.572865 30490.0654 TERMO FLORES 3 GAS 60,869,460 9.6 0.010128 0.5499504 33475.18387 TERMOBQLLA 3 GENERA. GAS 25,667,302 9.7 0.0102335 0.55567905 14262.78211 TERMOBQLLA 4 GENERA. GAS 26,305,574 9.97 0.01051835 0.571146405 15024.33379 46 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board POWER PLANT TERMOCANDELARIA 1 GENERACION TERMOCANDELARIA 2 GENERACION FUEL GAS GEN (kWh) MBTU/MWh 6,127,000 9.55 TJ/MWh 0.01007525 tCO2/MWh tCO2 0.547086075 3351.996382 GAS 3,526,000 9.68 0.0102124 0.55453332 1955.284486 TERMOCENTRO -1 GAS 31,269,998 7.09 0.00747995 0.406161285 12700.66257 TERMODORADA1 GAS 17,304,898 9.71 0.01024405 0.556251915 9625.882651 TERMOEMCALI 1 GAS 7,949,222 6.47 0.00682585 0.370643655 2946.328596 TERMOFLORES GENERA. GAS 680,721,612 6.3 0.0066465 0.36090495 245675.7994 TERMOGUAJIRA 1 GAS 169,533,940 9.8 0.010339 0.5614077 95177.65933 TERMOGUAJIRA 2 GAS 160,650,360 9.7 0.0102335 0.55567905 89270.03943 TERMOPIEDRAS 1 GENERA GAS 5,043 10 0.01055 0.572865 2.889238899 TERMOVALLE 1 GAS 56,623,222 6.58 0.0069419 0.37694517 21343.85014 TERMOYOPAL UNIDAD 1 GAS 58,694,203 10 0.01055 0.572865 33623.85437 TERMOYOPAL UNIDAD 2 GAS 156,167,330 12.71 0.01340905 0.728111415 113707.216 1,888,056,552 ALBAN (ALTO Y BAJO ANCHICAYA) HYDRO AMERICA GENERADOR HYDRO 224,636 ASNAZU GENERADOR HYDRO 4,083,899 AYURA GENERADOR HYDRO 113,578,741 BAYONA GENERADOR HYDRO 859,732 BELLO GENERADOR HYDRO 2,013,319 BELMONTE 1 GENERA HYDRO 13,449,360 BETANIA GENERADOR HYDRO 2,348,918,283 CALDERAS GENERADOR HYDRO 98,147,192 CALIMA GENERADOR HYDRO 266,862,878 CAMPESTRE GENERADOR HYDRO 5,769,149 CAMPESTRE GENERADOR EPM HYDRO 1,667,603 CARACOLI GENERADOR HYDRO 18,484,709 CASCADA GENERADOR HYDRO 22,676,529 CENTRAL HIDROELECTRICA MIEL I HYDRO 1,598,614,320 CHIVOR GENERADOR HYDRO 3,747,342,533 COCONUCO HYDRO 15,001,111 DOLORES GENERADOR HYDRO 46,623,395 EL LIMON GENERADOR HYDRO 226,239 EL PALO GENERADOR HYDRO 8,156,634 ESMERALDA GENERADOR HYDRO 219,887,108 FLORIDA 2 GENERADOR HYDRO 94,880,400 GUACAICA GENERADOR HYDRO 4,605,242 GUATAPE GENERADOR HYDRO 4,025,210,383 GUATRON GENERADOR HYDRO 2,383,942,497 GUAVIO GENERADOR HYDRO 5,391,656,771 INSULA GENERADOR HYDRO 63,508,015 INTERMEDIA GENERADOR HYDRO 6,230,583 JAGUAS GENERADOR HYDRO 975,846,056 JULIO BRAVO HYDRO 5,194,507 LA CASCADA HYDRO 15,427,977 47 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board POWER PLANT FUEL GEN (kWh) MBTU/MWh HYDRO 161,880 LATASAJERA GENERADOR HYDRO 1,847,015,715 LIBARE 1 GENERA HYDRO 22,707,750 MANANTIALES GENERADOR MINICENTRAL CEMENTOS DEL NARE HYDRO 15,077,880 HYDRO 38,569,555 MONDOMO GENERADOR HYDRO 1,561,471 MUNICIPAL GENERADOR HYDRO 8,601,745 NIMA 1 GENERADOR HYDRO 49,867,287 NIQUIA GENERADOR HYDRO 105,042,983 NUTIBARA GENERADOR HYDRO 2,157,753 OVEJAS GENERADOR HYDRO 4,997,381 PAJARITO GENERADOR HYDRO 29,836,067 PALMAS 1 GENERADOR HYDRO 82,270,970 PARAISO GUACA GENERA HYDRO 4,074,928,974 PATICO - LA CABRERA HYDRO 7,288,298 PIEDRAS BLANCAS GENERADOR HYDRO 13,080,840 PIEDRAS GENERADOR HYDRO 136,836 LA REBUSCA GENERADOR PLANTA MENOR CALICHAL HYDRO 561,349 PLANTA MENOR CHARQUITO HYDRO 94,633,870 PLANTA MENOR EL BOSQUE HYDRO 12,636,538 PLANTA MENOR EL LIMONAR HYDRO 102,845,343 PLANTA MENOR IQUIRA 1 HYDRO 18,802,649 PLANTA MENOR IQUIRA 2 PLANTA MENOR CASCADAABEJORRAL HYDRO 12,222,000 HYDRO 5,101,600 PLANTA MENOR LA HERRADURA HYDRO 110,523,427 PLANTA MENOR LA JUNCA HYDRO 133,598,123 PLANTA MENOR LA PITA HYDRO 10,619,880 PLANTA MENOR LA TINTA HYDRO 95,169,543 PLANTA MENOR LA VUELTA HYDRO 66,450,474 PLANTA MENOR MIROLINDO HYDRO 18,017,938 PLANTA MENOR PASTALES 1 HYDRO 5,197,269 PLANTA MENOR PROVIDENCIA HYDRO 9,768,734 PLANTA MENOR PTAR HYDRO 0 PLANTA MENOR RIO RECIO HYDRO 2,570,226 PLANTA MENOR SAN JOSE PLANTA MENOR S.JOSE D L MONTAÑA HYDRO 2,221,172 HYDRO 2,747,200 PLANTA MENOR SANTA ANA HYDRO 30,932,404 PLANTA MENOR SERVITA HYDRO 2,771,486 PLANTA MENOR SUEVA 2 HYDRO 32,087,575 PLANTA MENOR TEQUENDAMA HYDRO 127,601,054 PLANTA MENOR URRAO HYDRO 5,920,617 PLAYAS GENERADOR HYDRO 1,547,911,445 48 TJ/MWh tCO2/MWh tCO2 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board POWER PLANT FUEL GEN (kWh) MBTU/MWh PORCE 2 GENERADOR HYDRO 2,190,898,006 PRADO GENERADOR HYDRO 272,648,285 PRADO 4 GENERADOR HYDRO 44,048,562 POMASQUI-ECUADOR HYDRO 37,533,267 PUENTE GUILLERMO GENERADOR HYDRO 7,202,286 RIO BOBO HYDRO 23,278,870 RIO CALI 1 GENERADOR HYDRO 16,044,114 RIO INGENIO HYDRO 0 RIO PIEDRAS GENERADOR HYDRO 173,145,718 RIO SAPUYES HYDRO 10,435,618 RIOABAJO GENERADOR HYDRO 5,169,254 RIOFRIO I GENERADOR HYDRO 9,789,751 RIOFRIO II GENERADOR HYDRO 64,220,027 RIOGRANDE 1 HYDRO 93,618,165 RIOGRANDE1 GENERADOR HYDRO 3,209,011 RIOMAYO GENERADOR HYDRO 111,341,600 RIONEGRO GENERADOR HYDRO 46,036,314 RUMOR GENERADOR HYDRO 16,535,227 SAJANDI GENERADOR HYDRO 13,026,897 SALVAJINA GENERADOR HYDRO 1,570,791,445 SANCANCIO GENERADOR HYDRO 14,786,141 SANCARLOS GENERADOR HYDRO 7,377,002,275 SANFRANCISCO GENERA. HYDRO 326,008,298 SILVIA GENERADOR HYDRO 2,846,353 SONSON GENERADOR HYDRO 58,773,016 TAMESIS GENERADOR HYDRO 7,787,280 TULCAN-ECUADOR HYDRO 25 UNION GENERADOR HYDRO 1,994,528 URRA HYDRO 1,352,499,990 VENTANA GENERADOR 1 HYDRO 16,232,659 VENTANA GENERADOR 2 HYDRO 9,850,841 ZARAGOZA GENERADOR HYDRO 8,165,118 PLANTA MENOR AGUA FRESCA N/A 41,753,886 PLANTA MENOR AMALFI N/A 4,810,104 PLANTA MENOR REMEDIOS N/A 2,974,722 54,295,490,363 TJ/MWh tCO2/MWh tCO2 TOTAL ANUAL GENERATION 54,295,490.36 MWh Calculation of lambda (λ λ) Step i: The total hourly generation data of the year are presented, from high to low, in comparison to the total 8760 hours of the year. Here is the graphs obtained for 2008 in which the operating margin emission factor has been calculated. 49 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Step ii: Calculate the total annual generation of low-cost/must-run plants in accordance with the data for the total generations for the year 2008, the total quantity generated by low-cost/must-run plants is shown below. 46,129,715,710 KWh 46,129,716 MWh TOTAL ANUAL GENERATION LOW COST/MUST RUN Step iii: Draw a horizontal line that crosses the line represented, so that the area under the curve represents the total generation of low-cost/must-run plants. Lambda Calculation for Simple Adjusted OM 10000 9500 9000 8500 8000 7500 7000 6500 6000 MW 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 8501 8001 7501 7001 6501 6001 5501 5001 4501 4001 3501 3001 2501 2001 1501 1001 501 1 0 h Step iv: Determine value λy, taking into account that λy is calculated as X/8760, where X represents the hours on the right of the point of intersection. λ= 8760 − 5978 = 0.31758 8760 50 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board PLANTS BUILD THAT REPRESENTS 20% OF THE TOTAL GENERATION IN 2008 POWER PLANT TERMOYOPAL 1 TERMOYOPAL 2 INGENIO RISARALDA MIEL 1 TERMOSIERRA PORCE 2 TERMOCENTRO TERMOCANDELARIA 1 TERMOCANDELARIA 2 URRA RIOPIEDRAS TERMOPIEDRAS COGENERADOR INCAUCA PAIPA 4 TERMOEMCALI TERMOVALLE 1 TEBSA FLORES 3 MERILÉCTRICA TERMODORADA FLORES 2 LATASAJERA GENERADOR Build Margin FUEL YEAR GAS GAS FUEL OIL HYDRO GAS HYDRO GAS GAS GAS HYDRO HYDRO GAS BIOMASS SUB-BITUM GAS GAS GAS GAS GAS GAS GAS HYDRO 2,004 2,004 2,003 2,002 2,001 2,001 2,000 2,000 2,000 2,000 2,000 2,000 2,000 1,999 1,999 1,998 1,998 1,998 1,998 1,997 1,996 1,994 GEN (KWh) tCO2 58,694,203 156,167,330 7,552,296 1,598,614,320 234,543,400 2,190,898,006 31,269,998 6,127,000 3,526,000 1,352,499,990 173,145,718 5,043 25,857,912 763,085,265 7,949,222 56,623,222 3,433,354,928 60,869,460 25,353,180 17,304,898 53,223,823 1,847,015,715 33,624 113,707 3,644 0 85,588 0 12,701 3,352 1,955 0 0 3 0 691,059 2,946 21,344 1,534,142 33,475 14,001 9,626 30,490 0 TOTAL GEN 12,103,680,929 2,558,034 20% System GEN 10,859,098,073 EFgrid,BM,y 0.211 tCO2/MWh 51 PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board Annex 4 MONITORING INFORMATION 52