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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage1CLEAN DEVELOPMENT MECHANISMPROJECT DESIGN DOCUMENT FORM (CDM-PDD)Version 03 - in effect as of: 28 July 2006CONTENTSA. General description of project activityB. Application of a baseline and monitoring methodologyC. Duration of the project activity / crediting periodD. Environmental impactsE. Stakeholders’ commentsAnnexesAnnex 1: Contact information on participants in the project activityAnnex 2: Information regarding public fundingAnnex 3: Baseline informationAnnex 4: Monitoring plan

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage2SECTION A. General description of project activityA.1 Title of the project activity:>>Jiangsu Xiangshui 201MW Wind Power ProjectVersion: 2.0Date: 22/05/2009A.2. Description of the project activity:>>Jiangsu Xiangshui 201MW Wind Power Project (hereafter referred as the proposed project) is located inXiangshui County, Yancheng City, Jiangsu Province, P.R. China. 134 sets of 1.5 MW wind turbineswill be installed and operated by Yangtze New Energies Development CO., Ltd. (YNED), providing atotal capacity of 201MW.The proposed Xiangshui Wind Power Project is expected to generate 544,380MWh annually, and about435,510MWh of the net electricity will be delivered to the East China Power Grid via Jiangsu powergrid annually, which is equivalent to about 2,167 hours of operation per year with full capacity. Thewind electricity generated by the proposed project will be connected to Xiangshui 220kV transformerstation. The 134 wind turbines in total with single turbine capacity of 1,500 kW (Model type: FD77C)will be installed for the proposed project. The wind turbines are manufactured and assembled byChina’s Dongfang Steam Turbine Manufacturer using advanced Repower technology imported fromGermany. The project will last 25 years including 3 years as construction period.CO2 emission reduction will be achieved in the proposed project by replacing electricity generated byfossil fuel fired power plants connected to East China Power Grid, which is fed predominantly by fossilfuel fired power plants, especially coal fired plants. Therefore, the proposed project is estimated toreduce CO2 emissions by 389,085 tonnes annually by replacing electricity generated by the fossil fuelfired power plants in the East China Power Grid.The construction application of the proposed project was officially approved by National Developmentand Reform Commission on Dec. 19, 2007. According to the project construction plan, the civilconstruction was launched in April 2008. The first wind turbine will be brought into operation inconnection with the grid around June or July, 2009; all 134 sets of wind turbines will be put intocommission before Jan. 1 st , 2011.Being an environmentally sound energy supply technology, wind power is a prioritized developmentproject in China. The contributions of the proposed project to sustainable development goals aresummarized as follows: Being located in a power grid dominated by coal-fired power plants, development of the proposedproject will not only reduce GHG emissions but also mitigate local environmental pollution causedby waste gas emissions from coal-fired power plants.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage5Jiangsu ProvinceFigure 1. Jiangsu Province in China

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage6Xiangshui 201MW WindPower ProjectFigure 2. Location of Jiangsu Xiangshui 201 MW Wind Power ProjectA.4.2. Category(ies) of project activity:>>This category would fall within sectoral scope 1: energy industries.A.4.3. Technology to be employed by the project activity:>>The proposed project is estimated to reduce CO2 emissions by 389,085 tonnes annually by replacingelectricity generated by the fossil fuel fired power plants in the East China Power Grid.The 134 wind turbines in total with single turbine capacity of 1,500 kW (Model type: FD77C) will beinstalled for the proposed project, providing a total capacity of 201MW. All wind turbines aremanufactured and assembled by China’s Dongfang Steam Turbine Manufacturer using advancedRepower technology imported from Germany. Some wind turbine components, i.e. the Central controlsystem and the Monitoring control system are imported from Europe. Other Components, such as blade,gear box, generator, transducer, main bearing and cables, etc., will also be manufactured in China. Themain technical specifications are as follows:Table 1. Technical Specification of FD77C Wind Power Turbine for Xiangshui ProjectComponent Unit Parameter

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage7Turbine: Manufacturer/TypeDongfang Steam TurbineManufacturerFD77CRated Power kW 1500Rotor Diameter m 77Rotor Height m 61.5Rated Wind Speed m/s 12.5Number of Blades 3Rated Voltage V 690As mentioned in the equipment procurement contract, the vendor of the wind turbine equipment willprovide technical training for the Chinese operation technicians and management staff of the project.The implementation of the proposed project will contribute to strengthen domestic capability inmanufacturing, installation, operation and maintenance for advanced wind power equipment in China.A.4.4 Estimated amount of emission reductions over the chosen crediting period:>>It is estimated that 2,723,594 tCO2e emission reductions will be generated during the first creditingperiod (from Jan 1st, 2010 to Dec 31st, 2016) of the proposed project, as shown in the table2.Table 2. Estimated Amount of Emission ReductionsYearsAnnual estimation ofemission reductionsin tones of CO 2 e2010 315,920 1 2011 401,279 2012 401,279 2013 401,279 2014 401,279 2015 401,279 2016 401,279Total estimated reductions (t CO 2 e) 2,723,594Total number of crediting years 7Annual average over the crediting period of389,085estimated reductions (t CO 2 e)A.4.5. Public funding of the project activity:>>No public funding from Annex I countries is involved in the proposed project.The participants of the Nordic Environment Finance Corporation confirm that any public funding usedto participate in the Nordic Environment Finance Corporation or the funds invested in the NeCF does1 As Year 2010 is still in the Building Period, and it could not operate as in the years of Operating Period (2011 isthe 1 st year of operating period). So the estimated power generation (342,870 MWh) is different with the otheryears (435,510 MWh).

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage8not result in a diversion of official development assistance and is separated from and not countedtowards its financial obligations as a Party included in Annex I.SECTION B. Application of a baseline and monitoring methodologyB.1. Title and reference of the approved baseline and monitoring methodology applied to theproject activity:>>Approved consolidated baseline and monitoring methodology ACM0002 “Consolidated baselinemethodology for grid-connected electricity generation from renewable sources”- ACM0002 version 08.The methodology also refers to the latest approved versions of the following tools: Tool to calculate the emission factor for an electricity system(version 01.1); Tool for the demonstration and assessment of additionality (version 05.2);For more information regarding the methodology and the tools as well as their consideration by theExecutive Board, please refer to http://cdm.unfccc.int/methodologies/PAmethodologies/approved.htmlB.2 Justification of the choice of the methodology and why it is applicable to the projectactivity:>>The methodology is applicable to grid-connected renewable power generation project activities thatinvolve electricity capacity additions. The proposed project meets the applicability criteria of thebaseline and monitoring methodology (ACM0002 version08); therefore, the methodology is applicableto the proposed project. The proposed project is the installation of a grid-connected zero-emission renewable powergeneration activity from wind source; The proposed project is not an activity that involves switching from fossil fuels to renewableenergy sources at the site of the project activity; The geographic and system boundaries for the relevant electricity grid (East China Power Grid) canbe clearly identified and information on the characteristics of the grid is available;The proposed project is not a biomass fired power project.B.3. Description of the sources and gases included in the project boundary>>The spatial extent of the project boundary includes Jiangsu Xiangshui 201MW Wind Power Project andall power plants connecting physically to the East China Power Grid that the CDM project power plantis connecting to. Using the boundary definitions of the Chinese DNA 2 , East China Power Grid consistsof independent province-level electricity systems including Shanghai, Jiangsu, Zhejiang, Anhui andFujian province that exchange power significantly within the region depending on the demand and canbe dispatched without significant transmission constraints. The connected electricity system is theCentral China Power Grid. Although Yangcheng Power Plant is located in Shanxi Province which iscovered by the North China Power Grid, all the generation of the plant is delivered to the East China2 http://cdm.ccchina.gov.cn/web/index.asp.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage9Power Grid. Therefore, the generation from Yangcheng is also considered in the calculation of baselineemission factors. The power inflows and outflows from and to the Central China Power Grid and theYangcheng Power Plant would constitute imports and exports.The greenhouse gases and emission sources included in or excluded from the project boundary areshown in the following table 3:BaselineProjectActivityTable 3. Emission sources of the projectSource Gas Included Justification / ExplanationCO 2 emissions CO 2 Yes Main emission sourcesfrom electricity CH 4 No Excluded for simplification.generation in fossilfuel fired powerplants that are N 2 O No Excluded for simplification.displaced due tothe project activity.Xiangshui 201 CO 2 No Excluded for carbon neutral emissions.MW Wind power CH 4 No Excluded for simplification.project N 2 O No Excluded for simplification.GHG Emission389,085tCO2e/YFigure 3. The project boundary and baseline boundary of the ProjectB.4. Description of how the baseline scenario is identified and description of the identifiedbaseline scenario:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage10>>According to the description in the approved baseline methodology ACM0002 version 08, when theproposed project does not modify or retrofit existing electricity generation facilities, the baselinescenario is elaborated as follows:“Electricity delivered to the grid by the project activity would have otherwise been generated by theoperation of grid-connected power plants or by the addition of new generation sources, as reflected inthe combined margin (CM) calculations described in the “Tool to calculate the emission factor for anelectricity system”.To provide the same output or services comparable with the proposed CDM project activity, baselinescenarios to the proposed project include:Alternative 1: The proposed project not undertaken as a CDM project activity.Alternative 2: The fossil-fired plant with the same annual electricity output as the proposed project.Alternative 3: Other renewable energy projects with the same annual electricity output as the proposedproject.Alternative 4: The East China Power Grid as the provider for the same electricity output (the business asusual scenario).Alternative 1 – developing the proposed project not as a CDM project in accordance with currentregulations and laws of China – should be eliminated from the following consideration because theinvestment analysis in section B.5 will convey that the proposed project not undertaken as a CDMproject is not financially attractive for the potential investors without CERs income.Alternative 2 is also unrealistic and should be eliminated from the following considerations, accordingto the applicable laws and regulations in China to control small scale thermal power plants. Thermalpower plants of less than 135 MW are prohibited from construction within the grid connected area 3according to that law. Since the annual effective operating hours of the proposed project are about halfof the normal coal fired power plant’s, the alternative baseline scenario for the proposed project, inorder to provide the same outputs of the proposed project, should be a grid-connected fossil fuel firedpower plant with installed capacity less than 100 MW. Therefore, Alternative 2 cannot be a realisticalternative.Hydropower and solar 4 resources are limited in Yancheng city, Jiangsu province, so the development ofhydropower and solar power are unpractical in the area. Power generation by biomass is still in thedemonstration phase, which brings poor economic performance and can not be commercialized in theabsence of national policy support. There exist no economically exploitable biomass resources with acommensurate scale within the area of the project. Hence Alternative 3 will not become the baselinescenario and should be eliminated.Alternative 4 meets the requirement of national regulations and laws and has no economic barrier, andthe annual electricity output of the East China Power Grid has been increasing for many years (ChinaElectric Power Yearbook 2004-2006). Hence, the Alternative 4 is a credible and realistic alternative. Asa result, providing the same electricity output by East China Power Grid is selected as the baseline3 The Inform Notice of Strict Prohibition of Construction of Thermal Power Units with the Capacity of less than135 MW by the Office of the State Council, Office of the state council Famingdian (2002) No. 64 http://cwera.cma.gov.cn/upload/b_3_left_02.jpg

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage11scenario for the proposed project.In conclusion, the only credible and realistic baseline scenario for power generation is Alternative 4.B.5. Description of how the anthropogenic emissions of GHG by sources are reduced belowthose that would have occurred in the absence of the registered CDM project activity (assessmentand demonstration of additionality):>>The incentive of CDM has been seriously considered before the project starting as the followingtimeline of events demonstrates:1. Signed the Letter of Intend for CDM Project Development with the consultant organization inSeptember 2007.2. Got the Approval from National Development and Reform Commission (Chinese DNA) inDecember 19th, 2007( [2007] No.3530, The Approval of NDRC for the Special Permission ofProject of Jiangsu Xiangshui 201MW Wind Power Project). Moreover, this official approvalclearly encouraged the project owner to develop the proposed project as a CDM project.3. Held the stakeholders meeting for the Jiangsu Xiangshui 201MW Wind Power Project on January16th, 2008. And the local newspaper JinRiXiangShui reported the meeting on January 17th 2008.4. The proposed project started on April 18th, 2008.In sum, it can be demonstrated that CDM has been seriously considered before the proposed projectstarting.The project activity is not the baseline scenario and is considered additional, which is demonstratedbelow in a step-wise manner using the latest version (05.2) of “Tool for demonstration and assessmentof additionality”.Step 1: Identification of alternatives to the project activity consistent with current laws andregulationsRealistic and credible alternatives to the proposed project that can be (part of) the baseline scenario isdefined through the following sub-steps:Sub-step 1a. Define alternatives to the project activity.Alternative 1: The proposed project not undertaken as a CDM project activity.Alternative 2: The fossil-fired plant with the same annual electricity output as the proposed project.Alternative 3: Other renewable energy project with the same annual electricity output as the proposedproject.Alternative 4: The East China Power Grid as the provider for the same electricity output.Sub-step 1b. Consistency with mandatory laws and regulations.Alternative 2 is unrealistic and should be eliminated from the following consideration, according to theapplicable law and regulation in China to control small scale thermal power plants. Thermal powerplants with capacity less than 135 MW are prohibited for construction within the grid connected areaaccording to that law. Since the annual effective operation hours of the proposed project are about halfof the normal coal fired power plant, in order to provide the same outputs as that of the proposed project,

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage12the alternative baseline scenario for the proposed project should be a grid-connected fossil fuel firedpower plant with installed capacity less than 100 MW. Therefore, Alternative 2 cannot be a realisticalternative.The other alternatives described in sub-step 1a are all in compliance with mandatory laws andregulations as required by the methodology used.As mentioned in B.4, the scarcity of hydropower and solar resource in Yancheng city, Jiangsu province,makes the development of hydropower and solar power unpractical. In China, power generation bybiomass is still in the demonstration phase, which brings poor economic performance and can not becommercialized in the absence of national policy support. There exist no economically exploitablebiomass resources with a commensurate scale within the area of the project. Hence Alternative 3 willnot become the baseline scenario and should be eliminated.To summarize, the potential realistic and creditable alternatives that can provide the same output orservices as the proposed project are Alternatives 1 and 4. The investment analysis in Step 2 will showthat the proposed project not undertaken as a CDM project and without CERs income (Alternative 1) isnot attractive for the potential investors.Step 2: Investment analysisThis step will determine whether the proposed project is the economically or financially less attractivethan other alternatives without the revenue from the sale of CERs. The investment analysis is conductedin the following steps:Sub-step 2a. Determine appropriate analysis methodThree options, in Tool for the demonstration and assessment of additionality (version 05.2), can beapplied for the investment analysis: the simple cost analysis, the investment comparison analysis and thebenchmark analysis.The simple cost analysis is not applicable for the proposed project because the project activity willproduce economic benefit (from electricity sale) other than CDM related income.Therefore, benchmark analysis based on IRR will be used to identify whether the financial indicators ofthe proposed project is better than relevant benchmark value.Sub-step 2b – Option III. Apply benchmark analysisThe financial benchmark Internal Return Rate (post tax) on total investment of Chinese wind powerindustry is 8% 5 , which has been used widely for Feasibility Studies of the power project investments.Based on the above-mentioned benchmark, the calculation and comparative analysis of financialindicators for the proposed project are carried out in sub-step 2c.Sub-step 2c. Calculation and comparison of financial indicators:5Interim Rules on Economic Assessment of Electric Engineering Retrofit Projects ,the State Power Corporationof China , 2003.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage13Based on the Feasibility Study Report and its supplementary report of the proposed project, basicparameters for calculation of financial indicators are as follows:Table 4. Main parameters for calculation of financial indicatorsItems Unit Amount Source of DataElectricity delivered to power grid in eachyearMWh 435,510 Feasibility study report 6Electricity delivered to power grid in 2 ndyearMWh 135,180 Feasibility study reportElectricity delivered to power grid in 3 rdyearMWh 342,870 Feasibility study reportConstruction period Year 3 Feasibility study reportDesigned project life time Year 25 Feasibility study reportTotal InvestmentMillionYuan2028.8 Feasibility study reportIncome tax rate % 25 Feasibility study reportVAT rate % 8.5 Feasibility study reportUrban maintenance and construction tax % 5 Feasibility study reportSurtax for education % 3 Feasibility study reportElectricity tariff within 30,000hours(Including Vat)Yuan/kWh 0.4877the Approval of NDRCfor the SpecialPermission of Projectof Jiangsu Xiangshui201MW Wind PowerProject (NDRCEnergy[2007] No.3530), December 19th,2007Electricity tariff after 30,000 hours Yuan/kWh 0.5182 Feasibility study reportCERs price Euro/tCO 2 13.5Exchange rate Euro/RMB 11.1O&M costMillionYuanComparison of IRR for the proposed project and the financial benchmark:Current reference pricein CDM carbon marketCurrent referenceexchange data duringthe preparation of PDD961.6 Feasibility study reportThe project financial indicators (IRR) (post-tax) with and without income from selling CERs are listedin the following tables. Without income from selling CERs, IRR of the proposed project is lower thanthe benchmark IRR and the proposed project is financially unacceptable because of its low profitability.While considering CERs income, the financial acceptance will be changed. The IRR of the proposedproject is better than the benchmark and the proposed project is financially acceptable.6 Feasibility Study Report of Jiangsu Xiangshui Wind Farm Project, East China Investgation and Design Instituteunder China Hydropower Engineering Consulting Group Co.(CHECC), 2008-1

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage14Sub-step 2d: Sensitivity analysisTable 5. Financial without income from CERsProjectIRR(post-tax)Xiangshui Wind Power Project 4.65%Table 6. Financial with income from CERsProjectIRR(post-tax)Xiangshui Wind Power Project 8.23%The objective of this sub step is to show the conclusion that the financial attractiveness is robust toreasonable variations of the critical assumptions.Four factors are considered in following sensitivity analysis:1) Static total investment.2) Annual O & M costs.3) Power generation.4) Electricity PriceAssuming the above four factors vary in some extent, the IRR of the proposed project (without incomefrom selling CERs) varies to different extent as shown in Table 7.FactorsIRR valueTable 7. Sensitivity Analysis of the Proposed ProjectTotal Investment O&M cost Power generation Electricity Price-125% — 8% — —-22.25% 8% — — —-15% 6.78% 5.09% 2.42% 2.48%-10% 6.02% 4.94% 3.19% 3.23%-5% 5.32% 4.80% 3.94% 3.96%0% 4.65% 4.65% 4.65% 4.65%5% 4.03% 4.51% 5.34% 5.32%10% 3.45% 4.36% 6.00% 5.97%15% 2.90% 4.21% 6.64% 6.60%26.10% — — 8% —26.74% — — — 8%The order of important factors affecting the financial attractiveness is total investment, power generation,annual O&M cost and electricity price.For parameter of total investment and O&M cost, IRR of the proposed project activity without CERsrevenue will equal the benchmark level (8%) of wind power project if total investment and O&M costdecreases -125% and -22.25% respectively. While, for parameter of power generation, it should increase26.10% in order to let the project IRR reach 8%. And for parameter of electricity price, it should

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage15increase 26.74% in order to let the project IRR reach 8%.Considering the consistent rising price of construction materials and staff salaries these years in China,there exists little possibility of decreasing investment and operation costs for the proposed project.Power generation of the proposed project is calculated based on the data from historic wind resourceassessment. Therefore, power generation of the proposed project, a yearly average date for the wholelifetime of the proposed project, is not likely to be changed greatly.In the case that the expected power tariff increases by about 26.74%, the IRR of the proposed projectbegins to exceed the benchmark. However there is extremely unlikely for the tariff of the proposedproject to have an increase of 26.74%, as the electricity price is regulated by the government in China.In Xiangshui case, the electricity price of Xiangshui Wind Farms is fixed RMB 0.4877/kwh (taxincluded) by NDRC through “The Approval of NDRC for the Special Permission of Project of JiangsuXiangshui 201MW Wind Power Project” for the first 30,000 hours of the accumulated equivalent fullloadedpower generation. And NDRC asked to adopt an average local price after 30,000 hours, 0.5182is adopted in the FSR of Xiangshui Wind Farm Project. As the vice minister of NDRC mentioned in apublic speech that Chinese government will continue its regulation to the electricity price for therenewable energy based plants in the recent years 7 . So the electricity price of Xiangshui Project isimpossible to change much, which means this project is always financial unattractive.To conclude, under the reasonable variations in the critical assumptions, the conclusion regarding thefinancial additionality is robust and persuasive by sensitivity analysis.Step 3. Barrier analysisNot applicable to the project activity.Step 4. Common practice analysisSub-step 4a: Analyze other activities similar to the proposed project activity:In 2006, wind power accounted for only 0.04% of electricity supply on the East China Power Grid 8 , itis clear that wind power is not a common practice generally.The following table lists the wind power projects in Jiangsu province. It is noted that all these projectsare registered CDM projects or projects in the process of applying for the CDM.Project NameTable 8. Wind Power Projects in Jiangsu ProvinceTariff Registered as aCapacity Commission (RMB/kWh) CDM projectMW date including (registerd date)VATApplyingforCDMJiangsu Qidong 100.5 2007.8 0.4877 Yes7 http://finance.sina.com.cn/china/hgjj/20070905/11043948808.shtml8 China Electric Power Yearbook 2006

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage16Dongyuan Wind PowerProjectJiangsu Rudong 49.5 2006.8YesLingyang Wind Power0.519 (Jan 09)ProjectJiangsu Dongtai 201 2006.6201MW Wind PowerProject0.4877 Yes(Aug 07)Jiangsu Rudong 100.5 2006.7Huangang Dongling0.519 YesWind Power Project(Apr 07)Jiangsu Qidong 91.5MW Wind Power 91.5 2008.1 0.4877 YesProject(Sep 07)Sources: http://cdm.ccchina.gov.cn, http://cdm.unfccc.int/Projects/projsearch.html,http://cdm.unfccc.int/Projects/Validation/index.html.Sub-step 4b. Discuss any similar options that are occurring:According to the Tool for the demonstration and assessment of additionality (version 05.2), CDMproject activities (registered project activities and project activities which have been published on theUNFCCC website for global stakeholder consultation as part of the validation process) are not to beincluded in this common practice analysis. Five projects listed in the table above are all the registeredCDM projects or being undertaken CDM project development. As such, they do not contradict the claimthat the proposed project activity is financially unattractive.In general, the wind power technology is currently far from the commercial prevalence in China. Theelectricity supply from wind power project is just 0.06% of actual supply on the East China Power Grid.As described above, the proposed project activity passed all criteria of “Tool for the demonstration andassessment of additionality (version 05.2)”. In conclusion, the proposed project is additional and not thebaseline scenario.B.6.Emission reductions:B.6.1. Explanation of methodological choices:>>The proposed project is the installation of a new grid-connected renewable power plant, and the baselinescenario is as follows:Electricity delivered to the grid by the project activity would have otherwise been generated by theoperation of grid-connected power plants and by the addition of new generation sources, as reflected inthe combined margin (CM) calculations described in the “Tool to calculate the emission factor for anelectricity system”.Baseline emissionsBaseline emissions include only CO 2 emissions from electricity generation in fossil fuel fired powerplants that are displaced due to the project activity, calculated as follows:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage17( EGy− EGbaseline) × EFgrid, CM yBEy,Where:BE yEG yEG baseline= (1)= Baseline emissions in year y (tCO 2 /yr).= Electricity supplied by the project activity to the grid (MWh).= Baseline electricity supplied to the grid in the case of modified or retrofit facilities(MWh). For new power plants this value is taken as zero.EF grid,CM,y = Combined margin CO 2 emission factor for grid connected power generation in year ycalculated using the latest version of the “Tool to calculate the emission factor for anelectricity system” (version 01.1).The methodological tool “Tool to calculate the emission factor for an electricity system” (version 01.1)determines the CO 2 emission factor for the displacement of electricity generated by power plants in anelectricity system by calculating the “operating margin” (OM) and “build margin” (BM) as well as the“combined margin” (CM). The operating margin refers to a cohort of power plants that reflect theexisting power plants whose electricity generation would be affected by the proposed CDM projectactivity. The build margin refers to a cohort of power units that reflect the type of power units whoseconstruction would be affected by the proposed CDM project activity.The methodological tool “Tool to calculate the emission factor for an electricity system” (version 01.1)provides procedures to determine the following parameters:Parameter SI Unit DescriptionEF grid, CM, y tCO 2 /MWh Combined margin CO2 emission factor for grid connected powergeneration in year yEF grid, BM, y tCO 2 /MWh Build margin CO2 emission factor for grid connected power generationin year yEFgrid, OM, y tCO 2 /MWh Operating margin CO2 emission factor for grid connected powergeneration in year yThe following six steps are applied to calculate the emission factor for an electricity system:STEP 1: Identify the relevant electric power system.STEP 2: Select an operating margin (OM) method.STEP 3: Calculate the operating margin emission factor according to the selected method.STEP 4: Identify the cohort of power units to be included in the build margin (BM).STEP 5: Calculate the build margin emission factor.STEP 6: Calculate the combined margin (CM) emissions factor.Step1: Identify the relevant electric power system.Using the boundary definitions of the Chinese DNA, The spatial extent of the project boundary includesall power plants connected physically to the East China Power Grid that the CDM project power plant isconnected to. East China Power Grid is defined as the project electricity system, which consists ofindependent province-level electricity systems including Shanghai, Jiangsu, Zhejiang, Anhui and Fujianprovince that can be dispatched without significant transmission constraints. The connected electricity

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage18system is Central China Power Grid, which is connected by transmission lines to the project electricitysystem. Power plants within the connected electricity system can be dispatched without significanttransmission constraints but transmission to the project electricity system has significant transmissionconstraint.Although Yangcheng Power Plant is located in Shanxi Province which is covered by the North ChinaPower Grid, all the generation of that plant is delivered to the East China Power Grid. Therefore, thegeneration from Yangcheng is also considered in the calculation of baseline emission factor (See Annex3).Electricity transfers from connected electricity systems to the project electricity system are defined aselectricity imports and electricity transfers to connected electricity systems are defined as electricityexports. The East China Power Grid has the electricity imports from the Central China Power Grid.For the purpose of determining the build margin emission factor, the spatial extent is limited to theproject electricity system (East China Power Grid), since the electricity imports from Central ChinaPower Grid and Yangcheng Power Plant account for a very small percentage and recent or likely futureadditions to transmission capacity will not enable significant increases in imported electricity.For the purpose of determining the operating margin emission factor, one of the following options couldbe used to determine the CO 2 emission factor(s) for net electricity imports (EF grid, import,y ) from aconnected electricity system within the same host country:(a) 0 tCO 2 /MWh, or(b) The weighted average operating margin (OM) emission rate of the exporting grid, determined asdescribed in step 3 below; or(c) The simple operating margin emission rate of the exporting grid, determined as described in step 3below; or(d) The simple adjusted operating margin emission rate of the exporting grid, determined as describedin step 3 below.For the proposed project activity, option (c) is used to determine the CO 2 emission factor(s) for netelectricity imports (EF grid, import,y ) from Central China Power Grid, since the conditions for this methoddescribed in step 2 below are applied to the exporting grid.Step2: Select an operating margin (OM) methodThe calculation of the operating margin emission factor (EF grid,OM,y ) is based on one of the followingmethods:(a) Simple OM, or(b) Simple adjusted OM, or(c) Dispatch data analysis OM, or(d) Average OMThe simple OM method (option a) can only be used if low-cost/must-run resources 9 constitute less than9 Low-cost/must-run resources are defined as power plants with low marginal generation costs or power plants that aredispatched independently of the daily or seasonal load of the grid. They typically include hydro, geothermal, wind, low-costbiomass, nuclear and solar generation. If coal is obviously used as must-run, it should also be included in this list, i.e. excluded

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage1950% of total grid generation in: 1) average of the five most recent years, or 2) based on long-termaverages for hydroelectricity production.For the simple OM, the simple adjusted OM and the average OM, the emission factor can be calculatedusing either of the two following data vintages:Ex ante option: A 3-year generation-weighted average, based on the most recent data available at thetime of submission of the CDM-PDD to the DOE for validation, without requirement to monitor andrecalculate the emissions factor during the crediting period, orEx post option: The year in which the project activity displaces grid electricity, requiring theemissions factor to be updated annually during monitoring. If the data required to calculate the emissionfactor for year y is usually only available later than six months after the end of year y, alternatively theemission factor of the previous year (y-1) may be used. If the data is usually only available 18 monthsafter the end of year y, the emission factor of the year proceeding the previous year (y-2) may be used.The same data vintage (y, y-1 or y-2) should be used throughout all crediting periods.For the dispatch data analysis OM, the year in which the project activity displaces grid electricity andupdates the emission factor annually during monitoring.The data vintage chosen should be documented in the CDM-PDD and not be changed during thecrediting periods.Power plants registered as CDM project activities should be included in the sample group that is used tocalculate the operating margin if the criteria for including the power source in the sample group apply.The justifications of the choice of method to calculate OM emission factor are as follows.Method (c): The dispatch data analysis OM emission factor is determined based on the power units thatare actually dispatched at the margin during each hour h where the project is displacing electricity. Thismethod requires the dispatch order of each power plant and the dispatched electricity generation of allthe power plants in the power grid during each hour. The dispatch data and power plants’ operation dataare considered as confidential materials and only for internal usage and are not available publicly. Thus,method (c) is not applicable for the proposed project.Method (b): Method (b) requires the annual load duration curve of the power grid and the load data ofevery hour data during the whole year on the basis of the time order. As mentioned above, the dispatchdata and detailed load curve data are not available publicly. Therefore, method (b) is not applicable forthe proposed project as well.In terms of Method (d) and Method (a): The average OM emission factor (option d) is calculated as theaverage emission rate of all power plants serving the grid, using the methodological guidance asdescribed under (a) above for the simple OM, but including in all equations also low-cost/must-runpower plants. The simple OM method (option a) can only be used if low-cost/must-run resourcesconstitute less than 50% of total grid generation in: 1) average of the five most recent years, or 2) basedon long-term averages for hydroelectricity production. Low operating cost and must run resourcesfrom the set of plants.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage20typically include hydro, geothermal, wind, low-cost biomass, nuclear and solar generation. If coal isobviously used as must-run, it should also be included in this list, i.e. excluded from the set of plants.Considering the low cost/ must run resources only constitute 11.86%, 10.96%, 9.77 % , 11.94 % and11.44% of total generation of East China Power Grid from the year 2002 to 2006, respectively (ChinaElectric Power Yearbooks 2003-2007). Therefore, method (a) is chosen to calculate OM emission factorfor the proposed project.Table 9. Percentage of the Low-cost/must-run Generation in the Total Generation by East China PowerGrid in the Past Five YearsYear Low-cost/must-runTotal Generation%generation (10 8 kWh)(10 8 kWh)2002 436.10 3678.13 11.862003 470.15 4291.27 10.962004 476.94 4879.86 9.772005 686.11 5744.67 11.942006 762.78 6668.2 11.44In conclusion, the Ex ante option of the data vintages is chosen to calculate the emission factor of theEast China Power Grid by using the simple OM method (option a) for the proposed project.Step 3: Calculate the operating margin emission factor according to the selected methodThe simple OM emission factor is calculated as the generation-weighted average CO2 emissions per unitnet electricity generation (tCO 2 /MWh) of all generating power plants serving the system, not includinglow-cost / must-run power plants / units. It may be calculated: Based on data on fuel consumption and net electricity generation of each power plant / unit (OptionA), or Based on data on net electricity generation, the average efficiency of each power unit and the fueltype(s) used in each power unit (Option B), or Based on data on the total net electricity generation of all power plants serving the system and thefuel types and total fuel consumption of the project electricity system (option C)Option A should be preferred and must be used if fuel consumption data is available for each powerplant / unit. In other cases, option B or option C can be used. For the purpose of calculating the simpleOM, Option C should only be used if the necessary data for option A and option B is not available andcan only be used if only nuclear and renewable power generation are considered as low-cost / must-runpower sources and if the quantity of electricity supplied to the grid by these sources is known.For the proposed project, the data on fuel consumption, net electricity generation and the averageefficiency of each power unit are unavailable, thus option A and option B cannot be used. Nevertheless,the data on the total net electricity generation of all power plants serving the system and the fuel typesand total fuel consumption of the project electricity system are available. Also, only nuclear andrenewable power generation are considered as low-cost / must-run power sources and the quantity ofelectricity supplied to the grid by these sources is known. Therefore, Option C can be used.On Option C, the simple OM emission factor is calculated based on the net electricity supplied to the

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage21grid by all power plants serving the system, not including low-cost / must-run power plants / units, andbased on the fuel type(s) and total fuel consumption of the project electricity system, as follows:∑FC× NCV ×i,yi,y EFCO2,i,yi=(2)EFgrid,OMsimple,yEGyWhere:EF grid,OMsimple,y = Simple operating margin CO2 emission factor in year y (tCO2/MWh)FC i,y = Amount of fossil fuel type i consumed in the project electricity system in year y (massor volume unit)NCV i,y = Net calorific value (energy content) of fossil fuel type i in year y (GJ / mass or volumeunit)EF CO2,i,y = CO2 emission factor of fossil fuel type i in year y (tCO2/GJ)EG ,y = Net electricity generated and delivered to the grid by all power sources serving thesystem, not including low-cost / must-run power plants / units, in year y (MWh)i= All fossil fuel types combusted in power sources in the project electricity system inyear yy= Three most recent years for which data is available at the time of submission of theCDM-PDD to the DOE for validation (ex ante option)For this approach (simple OM) to calculate the operating margin, the simple OM emission factor iscalculated based on the net electricity supplied to the grid by all power plants serving the system, notincluding low-cost / must-run power plants / units, and including electricity imports to thegrid 10 .Electricity imports should be treated as one power plant source.Regarding parameter selection, local values of NCV i,y and EF CO2,i,y should be used where available. If nosuch values are available, IPCC world-wide default values are preferable. The Net Calorific Value(NCV i,y ) of each type of fossil fuel used in the calculation comes from China Energy Statistic Yearbook2006. Emission factors (EF CO2,i,y ) of each type of fossil fuel come from IPCC 2006 default values.As chosen in step 2, the simple OM emission factor is calculated by using Ex-ante option of datavintages, i.e. a 3-year generation-weighted average, based on the most recent data available at the timeof submission of the CDM-PDD to the DOE for validation, without requirement to monitor andrecalculate the emissions factor during the crediting period.The data of installed capacity, electricity generation and fuel consumptions are all from China EnergyStatistical Yearbooks 2004-2006 and China Electric Power Yearbooks 2004-2006.The import electricity to East China Power Grid is from two sources: Central China Power Grid andYangcheng power plants in Shanxi Province. The average emission factor of Central China Power Gridand Yangcheng power plants are calculated by Chinese DNA and the detailed information is shown inAnnex 3.Given the above, the simple operating margin CO2 emission factor (EF grid,OMsimple,y ) of East China PowerGrid is 0.9540 tCO 2 /MWh. The detailed calculations and data are listed in the annex 3 (The baselineemission factor OM is same as that provided by Chinese DNA, the website is10 An import from a connected electricity system should be considered as one power source.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage22http://cdm.ccchina.gov.cn/web/NewsInfo.asp?NewsId=3239 ).Step 4: Identify the cohort of power units to be included in the build marginThe sample group of power units m used to calculate the build margin consists of either:(a) The set of five power units that have been built most recently, or(b) The set of power capacity additions in the electricity system that comprise 20% of the systemgeneration (in MWh) and that have been built most recently 11 .The set of power units that comprises the larger annual generation should be used.A power unit is considered to have been built at the date when it started to supply electricity to the grid.Power plant registered as CDM project activities should be excluded from the sample group m.However, if group of power units, not registered as CDM project activity, identified for estimating thebuild margin emission factor includes power unit(s) that is (are) built more than 10 years ago then:(i) Exclude power unit(s) that is (are) built more than 10 years ago from the group; and(ii) Include grid connected power projects registered as CDM project activities, which are dispatched bydispatching authority to the electricity system.Capacity additions from retrofits of power plants should not be included in the calculation of the buildmargin emission factor.In terms of vintage of data, one of the following two options can be chosen:Option 1: For the first crediting period, calculate the build margin emission factor ex-ante based on themost recent information available on units already built for sample group m at the time of CDM-PDDsubmission to the DOE for validation. For the second crediting period, the build margin emission factorshould be updated based on the most recent information available on units already built at the time ofsubmission of the request for renewal of the crediting period to the DOE. For the third crediting period,the build margin emission factor calculated for the second crediting period should be used. This optiondoes not require monitoring the emission factor during the crediting period.Option 2: For the first crediting period, the build margin emission factor shall be updated annually, expost,including those units built up to the year of registration of the project activity or, if information upto the year of registration is not yet available, including those units built up to the latest year for whichinformation is available. For the second crediting period, the build margin emissions factor shall becalculated ex-ante, as described in option 1 above. For the third crediting period, the build marginemission factor calculated for the second crediting period should be used.For the proposed project, option 1 is chosen to calculate Build Margin emission factor.11 If 20% falls on part capacity of a unit, that unit is fully included in the calculation

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage23Step 5: Calculate the build margin emission factorThe build margin emissions factor is the generation-weighted average emission factor (tCO 2 /MWh) ofall power units m during the most recent year y for which power generation data is available, calculatedas follows:EFgrid , BM , y∑ ×m=EGm,y EF∑EGm,ymEL,m,y(3)Where:EFgrid,BM, y =Build margin CO 2 emission factor in year y (tCO 2 /MWh)EGm, y = Net quantity of electricity generated and delivered to the grid by power unit m in year y(MWh)EFEL, m, y = CO 2 emission factor of power unit m in year y (tCO 2 /MWh)m = Power units included in the build marginy = Most recent historical year for which power generation data is availableNo matter which options for calculating BM factor mentioned in step 4 was adopted for the proposedproject, the same issue on data availability must be addressed. Currently, it is very difficulty to get thecapacity margin data of power plants in China, since these data as well as net quantity of electricitygenerated and delivered to the grid and fuel consumption data in power unit m are regarded ascommercial secrets or only for internal usage. Then the following deviation was adopted to calculate theBuild Margin emission factor and also accepted by EB 12 .1) Adoption of the efficiency of the best technology commercially available in the provincial/regionalor national grid of China, as a conservative way, on fuel consumption estimation of each fuel type.The average emission factor of the grid for each fuel type can be used.2) Adoption of the capacity addition during recent years for estimating the build margin emissionfactor for grid electricity. Namely, the capacity additions over recent years, whichever results in acapacity addition that is close to 20% of total installed capacity.3) Adoption of weights estimated using installed capacity in place of annual electricity generation,which could be used to calculate BM baseline emission factor.In this project, the aggregated newly capacity addition data and other relevant data are summarized from5 provincial grids under the East China Power Grid, namely, China Electric Power Year Book (2003-2006) and China Energy Statistical Yearbook (2003-2006).That is, first, calculate the share of different power generation technologies in recent capacity additions.Second, calculate the weight for capacity additions of each power generation technology. And finallycalculate the emission factor using the efficiency level of the best technology commercially available inChina.12http://cdm.unfccc.int/UserManagement/FileStorage/AM_CLAR_QEJWJEF3CFBP1OZAK6V5YXPQKK7WYJ

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage24The detailed steps and formulas are as follows:Step 5a: calculating the emission weights of total CO 2 emissions which corresponds to solid, liquid andgas fuels for electricity generationWith the energy balance sheet in China Energy Statistical Yearbook for the most recent years,calculating the respective percentages of CO 2 emissions from coal fired power generation, oil firedpower generation, and gas fired power generation against total CO 2 emissions from fossil fuel firedpower generation:∑∑Fi, j,y× COEFi, ji COAL,jλCoal(4)F × COEF= ∈ i,j∑Fi,j,yi,j,yi= ∈ OIL,j∑ i,j,yi,j× COEFi,ji,jλOil(5)F × COEF∑Fi,j,yi= ∈ GAS,j∑ i,j,yi,ji,j× COEFi,jλGas(6)F × COEFWhere:F i,j,y = the amount of fuel i (in a mass or volume unit) consumed by relevant power sources inprovince j in year y,COEF i, j,y =the CO 2 emission coefficient of fuel i (tCO 2 / mass or volume unit of the fuel), taking intoaccount the carbon content of the fuels used by relevant power sources j and the percent oxidation of thefuel in year y,COAL OIL and GAS = the aggregation of various kinds of coal, oil, and gas as fossil fuels.For more detail information please refer to Annex 3.Step 5b: Calculating the corresponding emission factor for fossil fuel fired power generation (SeeAnnex 3 for detailed calculation)i,jEFThermal=Coal× EFCoal, Adv+ λOil× EFOil,Adv+ λGas× EFGas,Advλ (7)EF COAL ,Adv , EF Oil, Adv and EF Ga,s,Adv are the emission factors for the best commercially availabletechnology of coal fired power generation, oil fired power generation, and gas fired power generation,respectively (See Annex 3 for detailed calculation).Step 5c: calculating the EF grid,BM,y of local BMUsing the share of different type of capacity in total capacity addition as weight, the weighted averageof emission factors of different types of capacity is calculated as the Build Margin emission factorEFgrid, BM,y of East China Power Grid (See Annex 3 for detailed calculation)

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage25CAPEF = × EFThermalgrid , BM , yThermal(8)CAPTotalWhere:CAP Total = the total capacity additionCAP Thermal =the thermal power capacity additionEFThermal =the thermal power emission factorFollowing the steps above, the build margin emission factor EFgrid,BM,y of the East China Power Grid iscalculated to be 0.8236tCO 2 /MWh. The detailed calculations and data are listed in the annex 3 (Thebuild margin emission factor BM is the same as that provided by Chinese DNA, the website ishttp://cdm.ccchina.gov.cn/web/NewsInfo.asp?NewsId=3239 .)As Chinese DNA updated the calculation of BM in Dec.30, 2008, the value of BM here is different fromthe BM in the initial PDD being made public for comments, in which the BM issued by Chinese DNAon Jul 18,2008 was used.Step 6: Calculate the combined margin emissions factorThe combined margin emissions factor is calculated as follows:EF grid,CM,y EF grid,OM,y ×W OM + EF grid,BM,y ×W BM (9)Where:EF grid , BM, y =Build margin CO 2 emission factor in year y (tCO 2 /MWh)E Fgrid, OM, y =Operating margin CO 2 emission factor in year y (tCO 2 /MWh)W OM =Weighting of operating margin emissions factor (%)W BM =Weighting of build margin emissions factor (%)Wind project activities: W OM = 0.75 and W BM = 0.25 (owing to their intermittent and non dispatchablenature) for the first crediting period and for subsequent crediting periods.The default weights are adopted for the proposed project, the baseline emission factor is:EF grid,CM,y EF grid,OM,y ×W OM + EF grid,BM,y ×W BM 0.9214 tCO 2 /MWhProject emissionsFor wind power project activities, PE y =0.LeakageFor wind power project activities, LE y =0.Emission reductionsEmission reductions are calculated as follows:ER y =BE y -PE y -LE y (10)

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage26Where:ER y = Emission reductions in year y (t CO 2 e/yr).BE y = Baseline emissions in year y (t CO 2 e/yr).PE y = Project emissions in year y (t CO 2 /yr).LE y = Leakage emissions in year y (t CO 2 /yr).B.6.2. Data and parameters that are available at validation:FC i,yData / Parameter:Data unit:Mass or volume unitDescription:Amount of fossil fuel type i consumed in East China Power Grid in year y(mass or volume unit)Source of data used: China Energy Statistical Yearbook 2004-2006Value applied: See Annex 3Justification of the choice The selection of data satisfies the guidance in the “Tool to calculate theof data or description of emission factor for an electricity system” (version 01.1). The data ismeasurement methods adopted for the calculation of OM emission factor.and procedures actually Simple OM: For each crediting period using the most recent three historicalapplied :years for which data is available at the time of submission of the CDM-PDDto the DOE for validation (ex-ante option).Any comment:The data is originated from the national authoritative statisticalyearbook with lower uncertainty.FC i,j,yData / Parameter:Data unit:Mass or volume unitDescription:The amount of fuel i (in a mass or volume unit) consumed by East ChinaPower Grid in province j in year ySource of data used: China Energy Statistical Yearbook 2004-2006Value applied: See Annex 3Justification of the choice The selection of data satisfies the guidance in the “Tool to calculate theof data or description of emission factor for an electricity system” (version 01.1). The data ismeasurement methods adopted for the calculation of BM emission factor.and procedures actually BM: For the first crediting period, following the EB guidance. For the secondapplied :and third crediting period, only once ex-ante at the start of the secondcrediting period.Any comment:The data is originated from the national authoritative statisticalyearbook with lower uncertainty.EG grid,yData / Parameter:Data unit:MWhDescription:Net electricity generated and delivered to East China Power Grid by powerplant / unit m in year ySource of data used: China Electric Power Yearbook 2004-2006Value applied: See Annex 3Justification of the choice The selection of data satisfies the guidance in the “Tool to calculate theof data or description of emission factor for an electricity system” (version 01.1). The data ismeasurement methods adopted for the calculation of OM emission factor.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage29B.6.3 Ex-ante calculation of emission reductions:>>According to the baseline methodology ACM0002, the GHG emission of the proposed project withinthe project boundary is zero, i.e. PE y =0.According to the baseline methodology ACM0002, the leakage of the proposed project is not considered,i.e. LE y =0.Therefore, the proposed project activity emissions are zero, i.e. PE y + LE y =0.According to the descriptions and formulas in section B.6.1, the combined baseline emission factor ofthe East China Power Grid is:EFgrid, CM, y = 0.9214 tCO2/MWh.According to the Feasibility Study Report of the proposed project, the estimated annual electricitygeneration delivered to the power grid will be:EG y = 435.51 GWh 13 .The annual emissions of the baseline scenario will be:BE y = EG y ×EG grid,CM,y = 435.51GWh × 0.9214 tCO 2 /MWh = 401,279 tCO 2The annual emission reductions of the proposed project will be:ER y = BE y - PE y - LE y 401,279 0 0 = 401,279 tCO 2>>B.6.4YearSummary of the ex-ante estimation of emission reductions:Estimation ofproject activityemissions(tonnes of CO 2 e)Estimation ofbaselineemissions(tonnes of CO 2 e)Estimation ofleakage(tonnes of CO 2 e)Estimation ofemissionreductions(tonnes of CO 2 e)2010 0 315,920 0 315,9202011 0 401,279 0 401,279 2012 0 401,279 0 401,279 2013 0 401,279 0 401,279 2014 0 401,279 0 401,279 2015 0 401,279 0 401,279 2016 0 401,279 0 401,279Total (tCO 2 e) 0 2,723,594 0 2,723,594B.7 Application of the monitoring methodology and description of the monitoring plan:13 The year of 2010 is still in the Building Period, and the power generation is different as in the years ofOperating Period (2011 is the 1 st year of operating period). And the estimated power generation is in 2010 is342,870 MWh, and the estimated emission reductions in 2010 is 315,920t CO 2 e.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage30B.7.1Data and parameters monitored:Data / Parameter:Data unit:Description:Source of data to be used:Value of data applied for thepurpose of calculatingexpected emissionreductions in section B.5Description of measurementmethods and procedures tobe applied:QA/QC procedures to beapplied:Any comment:EGyMWhNet electricity supplied by the project activity to East China Power Gridduring the year yOn-site measurements435,510MWh (since the proposed project will be still under constructionin 2009 and 2010, therefore, the expected electricity supply to grid is135,180MWh in 2009 and 342,870MWh in 2010)The electricity supplied to the grid and the electricity from the grid will bemeasured. The readings of electricity meter will be continuouslymeasured and monthly recorded. Data will be archived for 2 yearsfollowing the end of the crediting period by means of electronic and paperbackup.The electricity output from each turbine will be monitored and recorded atthe on-site control centre using a computer system. The project operator isresponsible for recording this set of data. Electricity sales invoices willalso be obtained for double check.The Meters used for reading will be calibrated as per industry standards ofhost country. Double check will be conducted by receipt of sales.B.7.2 Description of the monitoring plan:>>This monitoring plan will assure the completeness, consistency, clearness and accuracy of monitoringand calculation of emission reductions of project activity during the crediting period. Yangtze NewEnergies Development CO., Ltd will be responsible for the operation, maintenance and management ofthe project. And there will be a special group of the project owner responsible for this action incooperation with the Power Grid Company.1. Monitoring organizationProject owner will organize a special CDM workgroup to take charge of the monitoring work of thewhole project. The general manager of the project entity will appoint a CDM project manager.Monitoring staff, on-site engineers and internal audit staff are responsible for the collection of the dataand information required in the monitoring plan. The collected data and information will be documentedand sent to the CDM manager monthly. The CDM manager will be in charge of the implementation ofthe monitoring plan and report to the general manager of the project owner. The general manager willmake the confirmations on monitoring, calculation data and reports. The management framework isillustrated as follows:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage31General ManagerCDM Project ManagerMonitoring Staff On-site Engineers Internal Audit Staff2. Monitor devices and calibrationFigure 4. The Management FrameworkTwo bidirectional electricity meters are installed for the measurement of net electricity delivered to grid.One will be in the end of output in the electric substation of the wind farm (key meter) to measure thestation, and the second one will be installed in the input end of Power Grid. The metering equipmentswill be properly configured and checked according to the requirement from Technical AdministrativeCode of electric energy metering (DL/T448-2000).The metering equipment will be checked by theproject owner and Grid Company before operation. Two meters are installed for the measurement of netelectricity delivered to grid. The main meter will be owned, operated and maintained by East ChinaPower Grid, and the backup meter will be owned, operated and maintained by the owner company.When the main meter is out of order, the readings from the backup meter will be used for reference.The verification of electric energy meter should be periodically carried out according to relevantnational electric industry standards or regulations. After verification, meters should be sealed. Bothmeters shall be jointly inspected and sealed by East China Power grid and project owner, and shall notbe interfered with by either party except in the presence of the other party or its accreditedrepresentatives. Calibration is carried out by the grid company with the records being provided to theproject owner.3. Data monitored and collectionThe emission factors of the baseline are based on ex-ante calculation, therefore the main data to bemonitored will be the amount of electricity supplied to the East China Power Grid by the proposedproject.CDM project manager is responsible for supervising and checking data and whole data record processas well as keeping receipt of sales for cross check. The backup meter will be maintained by the projectowner and read by the site engineer with the same frequency of data reading of main electricity meter.If the main meter is inaccurate by detecting errors larger than the allowable one, or functions improperly,the grid-connected electricity generated by the proposed project shall be determined by the reading ofthe backup meter. The electricity sale receipt should be saved by the project owner for the cross check.4. Data management system

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage32This provides information on record keeping of the data collected during monitoring. Record keeping isthe most important exercise in relation to the monitoring process.In order to facilitate auditor’s reference, monitoring results will be indexed. All paper-based informationwill be stored by Yangtze New Energies Development Co., Ltd. and kept at least in one copy. And alldata collected should be archived electronically and be kept for at least 2 years after the end of the lastcrediting period.The following table below outlines the key documents relevant to monitoring and verification of theemission reductions from the project.Table 10. List of the key documents relevant to monitoring and verificationI.D.No. Document Title Main Content1 Project Design Document Baseline, Calculation of Emission Reduction, Monitoring2 Project Monitoring ReportEmission reduction based on monthly meter reading andelectricity sale receipts5. Quality assurance and quality controlThe quality assurance and quality control procedures for recording, maintaining and archiving data shallbe improved as part of this CDM project activity according to EB rules and real practice in terms of theneed for verification of the emission reductions on an annual basis according to this PDD.6. Monitoring reportMonitoring report, including monitoring data, process and results of reduction calculation, will beprepared by project owner and designed consultative organization together. Relevant maintenancerecords of monitoring equipments will be provided to DOE for the future verification.B.8 Date of completion of the application of the baseline study and monitoring methodologyand the name of the responsible person(s)/entity(ies)>>The baseline methodology and monitoring methodology have been completed on December 20 th ,2008.Name of person/entity determining the baseline study and monitoring methodology:Mr. Yu JunjieForeign Economic Cooperation Office/Ministry of Environmental Protection of P. R. ChinaAddress: 115 Xizhimen Nanxiaojie, Beijing,100084, P. R. ChinaTelephone: +86 10 82268610Cell: +86 10 13910771770E-mail: yu.junjie@mepfeco.org.cnMr. Xiao XuezhiForeign Economic Cooperation Office/Ministry of Environmental Protection of P. R. ChinaAddress:115 Xizhimen Nanxiaojie,Beijing,100084, P. R. ChinaTelephone: +86 10 82268600

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage33Cell: +86 10 13910311879E-mail: xiao.xuezhi@mepfeco.org.cnMs. Tao WendiForeign Economic Cooperation Office/Ministry of Environmental Protection of P. R. ChinaAddress:115 Xizhimen Nanxiaojie,Beijing,100084, P. R. ChinaTelephone: +86 10 82268607Cell: +86 10 13911376162E-mail: tao.wendi@mepfeco.org.cn(Not the project participants listed in Annex 1)SECTION C. Duration of the project activity / crediting periodC.1 Duration of the project activity:C.1.1. Starting date of the project activity:>>18/04/2008The starting date of the project activity is given as the start date of construction.C.1.2. Expected operational lifetime of the project activity:>>25 years (Including 3 years of construction)C.2 Choice of the crediting period and related information:C.2.1. Renewable crediting period>>01/01/2010C.2.1.1.Starting date of the first crediting period:C.2.1.2. Length of the first crediting period:>>7 yearsC.2.2. Fixed crediting period:>>N/A>>N/A>>N/A.C.2.2.1.C.2.2.2.Starting date:Length:SECTION D. Environmental impacts>>D.1. Documentation on the analysis of the environmental impacts, including transboundaryimpacts:>>

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage34In accordance with relevant Chinese environmental laws and regulations, the environmental impactassessment (EIA) report of the proposed project has been reviewed by relevant experts and acquired theapproval (Suhuanbianguan (2005)233) by Environmental Protections Bureau of Jiangsu Province onNov. 23 rd , 2005.The outcome of EIA indicates that there are no significant environmental impacts caused bydevelopment and implementation of the project activity. The key points of EIA report are summarizedas follows:• Air quality: The air impact during the construction period mainly comes from flying dust producedby excavating land and exploiting transportation vehicles, and some exhaust discharges from usingand moving construction machinery. Regarding this problem, the project owner will use enclosedor semi-enclosed transportation vehicles with strictly managed schedule and route. Moreover, bystrengthening the construction control, advocating civilized construction and regularly spraying andcleaning the branch roads, material dump sites and other construction work surfaces, the influencescould be reduced under the construction standards set by governments and environmentalprotection departments to the minimum level.• Water quality: The total amount of waste water and sewage from daily life and industry will bevery small. Before wastewater and sewage from industry are discharged, they will be collected andprocessed specially. Therefore, the waste water and sewage from proposed project shows no impacton the surrounding water environment.• Solid waste: Construction waste and municipal solid waste during the construction and operationphase will be transported to the designated landfill site to treat.• Noise: The noise pollution mainly comes from the manual drills, cement mixers duringconstruction period, and aerodynamic interaction between the wind and turbine blades duringoperation period. As the proposed project is far away from residential area, the noise of vehiclesand machines on site during the construction phase is 85-90db (A), which will have little impact onsurrounding environment. Moreover, the impacts during the construction period will only existtemporarily, and disappear after the completing of the construction period. Operational noise fromthe rotating blades is expected to be 95-104 dB (A). Based on the formula of declining of soundemitted from a non-directional source, the noise estimated to be below 45 dB at 500m away fromthe sound source, which meets Class I of China Environmental Noise Standard in Urban Area (GB3096-93). Since there is no close residential area to the site, the noise of the proposed project willnot have impact on nearby residents.• Impact on birds: The north part of Jiangsu province is probably in the migration path of migratorybirds. The height of migration is generally 100-150m, and the designed height of generatorincluding blade is less than 100 m, therefore, the proposed project will not have impacts on themigratory birds.In conclusion, from environmental protection perspective, the project activity has no significantenvironmental impacts.D.2. If environmental impacts are considered significant by the project participants or the hostParty, please provide conclusions and all references to support documentation of an

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage35environmental impact assessment undertaken in accordance with the procedures as required bythe host Party:>>Not applicable, since the construction and operation of the proposed project have no significantenvironmental impacts.SECTION E. Stakeholders’ comments>>E.1. Brief description how comments by local stakeholders have been invited and compiled:>>In order to collect people’s opinions and advice on the proposed project, and improve the environmentaland social benefits of the project activities, public survey was carried out as a consultation meeting inXiangshui County on Jan. 16 th , 2008. The comments from local stakeholders were collected throughquestionnaire-based survey.AttendeesTotally 22 stakeholder representatives, including representatives of local residents and relevantdepartments, attended the meeting. 22 questionnaires were sent and all collected in the meeting.Content of Questionnaire1. Have you known the detailed situation of this project?2. Do you support the implementation of this project?3. Do you support this project to be developed as a CDM project?4. What kind of impacts will the project have on your daily life?5. What kind of benefit will the project introduce?6. What extent of adverse impacts on local environment will the project have?E.2. Summary of the comments received:>>22 questionnaires were spread and all of them returned in the meeting. The questionnaire-based surveyresults indicate that all the attendees fully realized the potential environmental and economic benefitsfor local residents of the proposed project. Therefore, they all firmly support the development andimplementation of the proposed project.The comments collected from the meeting are summarized as follows:Statistical results from questionnaires:• 91% of them know the detailed situation of the proposed project, while 9% of them do not;• 100% of them support the implementation of this project;• 100% of them support the proposed project to be developed as a CDM project;• 91% of them think the impact of the proposed project on daily life would be positive, while 9% ofthem think it would be neutral;• 77% of them think the proposed project would increase local economic level, and 23% of themthink it would be helpful to local infrastructure;• 86% of them think the proposed project will bring little negative impact on surroundingenvironment, and 14% of them think it may have a little negative impact.Other general comments:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage36• Fully support the development and implementation of the proposed project since the proposedproject will generate electricity by utilizing renewable energies and mitigate the air pollution;• The revenues of CERs trading can keep the proposed project well operated, and meanwhileenhance local economic development and improve local residents’ living standard to a certainextent;• All the attendees hoped that the proposed project could start its construction as soon as possible inorder to contribute to the mitigation of global climate change through GHG emissions reduction.• The operation of the proposed project would increase local employment.E.3. Report on how due account was taken of any comments received:>>Since there were no negative comments received, there is no need to make adjustments on design,construction and operation of the proposed project. The project owner and contractor will still undertakemeasures to mitigate impact on environment during construction.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage37Annex 1CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITYOrganization:Street/P.O.Box:Yangtze New Energies Development CO., Ltd.17,248 Lane, Xincun Road, Putuo DistrictBuilding:City:State/Region:ShanghaiShanghaiPostfix/ZIP: 200065Country:ChinaTelephone: +86-21-56078454FAX: +86-21-66101982E-Mail:li_qiyong@ctgpc.com.cnURL:Represented by:Title:Li QiyongManagerSalutation:Last Name:LiMiddle Name:First Name:Department:QiyongMarket DevelopmentMobile:Direct FAX: +81-21-56078454Direct tel: +86-21-56078454Personal E-Mail:li_qiyong@ctgpc.com.cn

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage38Organization:Street/P.O.Box:Nordic Environment Finance CorporationP.O. Box 249, F1-00171 Helsinki, FinlandBuilding: Fabianinkatu 34City:HelsinkiState/Region:Postfix/ZIP:Country:FinlandTelephone: +358 10 618 001FAX: +358 9 630 976E-Mail:URL:ash.sharma@nefco.fiwww.nefco.org/cffRepresented by:Title:Senior Investment Manager, Carbon Finance and FundsSalutation:Last Name:SharmaMiddle Name:First Name:Department:AshCarbon Finance and FundsMobile: +358 40 081 1327Direct FAX: +358 9 630 976Direct tel: +358 10 618 003Personal E-Mail:ash.sharma@nefco.fi

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage39Organization:Street/P.O.Box:Nordic Environment Finance CorporationP.O. Box 249, F1-00171 Helsinki, FinlandBuilding: Fabianinkatu 34City:HelsinkiState/Region:Postfix/ZIP:Country:FinlandTelephone: +358 10 618 001FAX: +358 9 630 976E-Mail:URL:Tina.Nyberg@nefco.fiwww.nefco.org/cffRepresented by:Title:Assistant, Carbon Finance and FundsSalutation:Last Name:Middle Name:First Name:Department:NybergHelenaTinaCarbon Finance and FundsMobile: +358 41 530 4950Direct FAX: +358 9 630 976Direct tel: +358 10 618 0651

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage40Personal E-Mail:Tina.Nyberg@nefco.fiAnnex 2INFORMATION REGARDING PUBLIC FUNDINGNo public funding from Annex I countries is involved in the proposed project.The Nordic Environment Finance Corporation confirms that any public funding used to participate inthe Nordic Environment Finance Corporation nor funds invested in the NeCF does not result in adiversion of official development assistance and is separate from and is not counted towards its financialobligations as a Party included in Annex I.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage41Annex 3BASELINE INFORMATIONThe Annex 3 provides the basic data and calculation results for determining baseline scenario. TheOperation Margin emission factor and the Build Margin emission factor are cited from theannouncement of Determining China Regional Power Grid Baseline Emission Factors, published byChina National Development and Reform Commission.http://cdm.ccchina.gov.cn/web/NewsInfo.asp?NewsId=3239http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2008/20081230102527637.pdfhttp://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File1888.pdfhttp://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2008/20081231101111351.pdfThe following tables provide the summary of applied results by using ACM0002 methodology: “Gridconnected renewable energy power generation” (including data, data sources and key procedures of thecalculation.)Table lists:Table A3-1 NCVs, OXIDs, and Potential Emission Factors of FuelTable A3-2 Annual thermal power electricity generation in East China Power Grid in 2004Table A3-3 Annual thermal power electricity generation in East China Power Grid in 2005Table A3-4 Annual thermal power electricity generation in East China Power Grid in 2006Table A3-5 Simple OM emission factor of the East China Power Grid in 2004Table A3-6 Simple OM emission factor of the East China Power Grid in 2005Table A3-7 Simple OM emission factor of the East China Power Grid in 2006Table A3-8 Annual electricity generation in Central China Power Grid in 2004Table A3-9 Annual electricity generation in Central China Power Grid in 2005Table A3-10 Annual electricity generation in Central China Power Grid in 2006Table A3-11 Average emission factor of Central China Power Grid in 2004Table A3-12 Average emission factor of Central China Power Grid in 2005Table A3-13 Average emission factor of Central China Power Grid in 2006Table A3-14 OM CO 2 emission factors of the East China Power GridTable A3-15 Emission factor of the unit applying best commercially available technologyTable A3-16 Respective percentages of CO 2 emissions from coal fired power generation, oil fired powergeneration, and gas fired power generation against total CO 2 emissions from fossil fuelfired power generation in 2006Table A3-17 Installed capacity in the East China Power Grid in 2006Table A3-18 Installed capacity in the East China Power Grid in 2005Table A3-19 Installed capacity in the East China Power Grid in 2004Table A3-20 Capacity addition in the East China Power GridTable A3-21 Combined emission factor of the East China Power GridThe project baseline calculation adopts the East China Power Grid emission factor calculation of NDRCwithout other additional information. The detailed calculation table is as follows:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage42Table A3-1 NCVs, OXIDs, and Potential Emission Factors of FuelNCV EF OXIDRaw Coal 20908 kJ/kg 25.80 1Clean Coal 26344 kJ/kg 25.80 1Other Washed Coal 14 8363 kJ/kg 25.80 1Briquette 20908 kJ/kg 26.6 1Coke 28435 kJ/kg 29.20 1Crude oil 41816 kJ/kg 20.00 1Gasoline 43070 kJ/kg 18.90 1Kerosene 43070 kJ/kg 19.60 1Diesel 42652 kJ/kg 20.20 1Fuel oil 41816 kJ/kg 21.10 1Other petroleum product 15 38369 kJ/kg 20.00 1Other cokes 28435 kJ/kg 25.8 1Natural gas 38931 kJ/m 3 15.30 1Coke oven gas 16 16726 kJ/m 3 12.10 1Other gas 17 5227 kJ/m 3 12.10 1LPG 50179 kJ/kg 17.20 1Refinery gas 46055 kJ/kg 15.70 1Data sources:NCVs are from China Energy Statistical Yearbook 2007, P287.EFco2 are from 2006 IPCC Guidelines for National Greenhouse Gas Inventories: Volume 2 Energy,Chapter 1, P1.21-1.24, Table 1.3, and Table 1.4.14 Other washed coal includes middlings and slimes. The NCV value of middlings is adopted here, which isconservative because the NCV value of slimes is higher than that of middlings.15 The NCV value of other petroleum products are not provided in China Energy Statistical Yearbooks. ThisAnnex calculates it as 38369 kJ/kg, i.e., 1.3108 tce/t, on the basis of Energy Balance Sheets (physical quantity)and conversion factor against SCE16 The NCV value here adopts the lower limit of the NCV value range, i.e., 16726-17981 kJ/m3, for coke oven gasprovided in China Energy Statistical Yearbook 2007, P 287.17 The NCV value here adopts the lowest NCV value among those for gas by furnace, gas by heavy oil catalyticcracking , gas by heavy oil catalytic thermal cracking, gas by pressure gasification, and water coal gas, which areprovided in China Energy Statistical Yearbook 2007, P287.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage43Table A3-2 Annual thermal power electricity generation in East China Power Grid in 2004ElectricityElectricityElectricity deliveredProvinceSelf usage rategenerationgenerationto the grid (10 8 kWh) (MWh) (%) (MWh)Shanghai 711.27 71127000 5.22 67,414,171Jiangsu 1635.45 163545000 5.93 153,846,782Zhejiang 952.55 95255000 5.68 89,844,516Anhui 598.75 59875000 6.03 56,264,538Fujian 504.9 50490000 6.07 47,425,257Total 414,795,263Data sourceChina Electric Power Yearbook 2005.Table A3-3 Annual thermal power electricity generation in East China Power Grid in 2005ElectricityElectricityElectricity deliveredProvinceSelf usage rategenerationgenerationto the grid (10 8 kWh) (MWh) (%) (MWh)Shanghai 746.06 74606000 5.05 70,838,397Jiangsu 2114.29 211429000 5.96 198,827,832Zhejiang 1081.1 108110000 5.59 102,066,651Anhui 629.18 62918000 5.9 59,205,838Fujian 486 48600000 4.57 46,378,980Total 477,317,698Data sourceChina Electric Power Yearbook 2006.Table A3-4 Annual thermal power electricity generation in East China Power Grid in 2006ElectricityElectricityElectricity deliveredProvinceSelf usage rategenerationgenerationto the grid (10 8 kWh) (MWh) (%) (MWh)Shanghai 720.33 72033000 5.06 68,388,130Jiangsu 2512.58 251258000 5.69 236,961,420Zhejiang 1403.49 140349000 5.62 132,461,386Anhui 718.67 71867000 6.05 67,519,047Fujian 555.8 55580000 4.51 53,073,342Total 558,403,325Data sourceChina Electric Power Yearbook 2007.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page44Table A3-5 Simple OM emission factor of the East China Power Grid in 2004Fuel types unit Shanghai Jiangsu Zhejiang Anhui Fujian Sub-Total EF CO2 OXID NCV CO 2 emissionstCO 2 etc/TJ % MJ/t,km 3 J=G*H*I*F*44/12/10000mass A B C D E F=A+B+C+D+EG H I J=G*H*I*F*44/12/1000 (volume)Coal 10 4 t 2779.6 7601.9 4008.9 2906.2 2183.7 19480.3 25.8 100 20908 385,300,230Washed coal 10 4 t 0 25.8 100 26344 0Other washed 10 4 t 5.46 4.63 10.09 25.8 100 8363 79,826coalCoke 10 4 t 0 29.2 100 28435 02.59 2.59 12.1 100 16726 192,19872.46 72.46 12.1 100 5227 1,680,380Coke oven gas 10 8m 3Other gas 10 8m 3Crude oil 10 4 t 0 20 100 41816 0Gasoline 10 4 t 0 18.9 100 43070 0Diesel 10 4 t 2.69 27.17 6.23 36.09 20.2 100 42652 1,140,116Fuel oil 10 4 t 58.52 55.07 202.89 23.26 339.74 21.1 100 41816 10,991,148LPG 10 4 t 0 17.2 100 50179 0Refinery gas 10 4 t 0.77 0.55 1.32 15.7 100 46055 34,996Natural gas 10 8OtherpetroleumproductsOther cokedproducts3 0.14 0.14 15.3 100 38931 30,57610 4 t 21.22 1.37 24.89 47.48 20 100 38369 1,335,95710 4 t 0 25.8 100 28435 0other energy 10 4 t 6.43 15.48 21.91 0 100 0 0

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page45 Total 400,785,429Generation Emission factorEmissionMWhtCO 2 /MWhtCO 2Thermal generation delivered to East China Power Grid 414,795,263 400,785,429Imported from CCPG 26,933,850 0.82732 22,282,912.782Imported from Yangcheng 11,649,610 1.113259 12,969,033.1789Total 453,378,723 436,037,374.96OM0.96175 tCO 2/ MWhData sources: China Energy Statistical Yearbook 2005.China Electric Power Yearbook 2005.http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File1888.pdfNote: The emission factor of Yangcheng = Coal consumption rate*29271*25.8*44/12/ 1000000000

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page46Table A3-6 Simple OM emission factor of the East China Power Grid in 2005Fuel types unit Shanghai Jiangsu Zhejiang Anhui Fujian Sub-Total EF CO2 OXID NCV CO2 emissionstCO 2 etc/TJ% MJ/t,km 3 J=G*H*I*F*44/12/10000mass A B C D E F=A+B+C+D+EG H I J=G*H*I*F*44/12/1000 (volume)Coal 10 4 t 2847.31 9888.06 4801.52 3082.9 2107.69 22727.48 25.8 100 20908 449,526,100Washed coal 10 4 t 0 25.8 100 26344 0Other washed 10 4 t 0 25.8 100 8363 0coalCoke 10 4 t 0.03 0.03 29.2 100 28435 913Coke oven gas 10 8 m 3 1.68 1.38 1.71 4.77 12.1 100 16726 353,971Other gas 10 8 m 3 83.72 24.97 0.06 30 138.75 12.1 100 5227 3,217,676Crude oil 10 4 t 27.01 27.01 20 100 41816 828,263Gasoline 10 4 t 0 18.9 100 43070 0Diesel 10 4 t 1.25 16 4.52 1.67 23.44 20.2 100 42652 740,491Fuel oil 10 4 t 59.39 13.22 153.22 7.45 233.28 21.1 100 41816 7,546,992LPG 10 4 t 0 17.2 100 50179 0Refinery gas 10 4 t 0.57 0.83 1.4 15.7 100 46055 37,117Natural gas 10 8 m 3 1.09 1.85 0.62 3.56 15.3 100 38931 777,514Other10 4 t 21 8.38 34.8 64.18 20 100 38369 1,805,850petroleumproductsOther coked 10 4 t 0 25.8 100 28435 0productsother energy 10 4 t 12.36 15.29 27.65 0 100 0 0

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page47 Total 464,834,887Generation Emission factorEmissionMWhtCO 2 /MWhtCO 2Thermal generation delivered to East China Power Grid 477,317,698 464,834,887Imported from CCPG 27,039,000 0.77216 20,878,434.24Imported from Yangcheng 11,282,000 1.14634 12,933,007.88Total 515,638,698 498,646,329.12OM0.96705 tCO 2/ MWhData sources: China Energy Statistical Yearbook 2006.China Electric Power Yearbook 2006.http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File1888.pdfNote: The emission factor of Yangcheng = Coal consumption rate*29271*25.8*44/12/1000000000

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page48Table A3-7 Simple OM emission factor of the East China Power Grid in 2006Sub-Fuel types unit Shanghai Jiangsu Zhejiang Anhui Fujian Total EF CO2 OXID NCVMJ/t,tc/TJ % km 3 A B C D ECoal 10 4 t 2744.45 10945.42 6065 3455.2F=A+B+C+D+E G H ICO2 emissionstCO 2 eJ=G*H*I*F*44/12/10000massJ=G*H*I*F*44/12/1000 (volume)2369.63 25579.7 25.8 100 20908 505,940,068Washed coal 10 4 t 0 25.8 100 26344 0Other washedcoal 10 4 t 150.54 23.06 173.6 25.8 100 8363 1,373,419Coke 10 4 t 39.07 39.07 29.2 100 28435 1,189,463Coke oven gas 10 8 m 3 1.71 3.13 0.23 0.71 5.78 12.1 100 16726 428,920Other gas 10 8 m 3 84.64 106.54 3.28 25.12 219.58 12.1 100 5227 5,092,160Crude oil 10 4 t 20.3 20.3 20 100 41816 622,501Gasoline 10 4 t 0 18.9 100 43070 0Diesel 10 4 t 2.13 3.7 4.11 1.21 1.11 12.26 20.2 100 42652 387,305Fuel oil 10 4 t 44.51 3.77 71.98 0.02 4.5 124.78 21.1 100 41816 4,036,838LPG 10 4 t 0 17.2 100 50179 0Refinery gas 10 4 t 0.29 0.4 2.95 3.64 15.7 100 46055 96,505Natural gas 10 8 m 3 3.2 13.5 9.18 25.88 15.3 100 38931 5,652,267Otherpetroleumproducts 10 4 t 18.82 3.57 22.39 20 100 38369 629,993Other cokedproducts 10 4 t 0 25.8 100 28435 0other energy 10 4 t 6.66 2.8 27.45 3.21 40.12 0 100 0 0 Total 525,449,440Generation Emission factorEmissionMWhtCO 2 /MWhtCO 2

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page49Thermal generation delivered to East China Power Grid 558,403,325 525,449,440Imported from CCPG 24,029,150 0.77134 18534644.561Imported from Yangcheng 11,150,820 1.074813 11985046.2966Total 593,583,295OM0.93663 tCO 2/ MWhData sources: China Energy Statistical Yearbook 2007.China Electric Power Yearbook 2007.http://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/File1888.pdfNote: The emission factor of Yangcheng = Coal consumption rate*29271*25.8*44/12/ 1000000000

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page50ProvinceThermalelectricitygenerationTable A3-8 Annual electricity generation in Central China Power Grid in 2004ThermalThermalHydropower HydropowerSelf usage ElectricitySelf usageelectricityelectricity electricityrate delivered to therategenerationgeneration generationgridHydroElectricitydelivered tothe grid 10 8 kWh) MWh) % MWh) 10 8 kWh) MWh) % MWh) MWh) MWh)Jiangxi 301.27 30127000 7.04 28,006,059 38.9 3890000 1.2 3843320Henan 1093.52 109352000 8.19 100,396,071 68.84 6884000 0.43 6854398.8Hubei 430.34 43034000 6.58 40,202,363 695.12 69512000 0.12 69428585.6Hunan 371.86 37186000 7.47 34,408,206 242.36 24236000 0.51 24112396.4Chongqing 165.2 16520000 11.06 14,692,888 56.7 5670000 2.09 5551497 725000Sichuan 346.27 34627000 9.41 31,368,599 589.02 58902000 0.39 58672282.2TotalMWh 249,074,186 168,462,480 725,000 418,261,666Data sourceChina Electric Power Yearbook 2005.ProvinceTotal ElectricityGeneratedTable A3-9 Annual electricity generation in Central China Power Grid in 2005Total Electricity Hydropower ThermalTotal Electricity Self usagedelivered to the electricity electricityGeneratedrategridgeneration generation 10 8 kWh) MWh) % MWh) 10 8 kWh) MWh) 10 8 kWh) MWh)Jiangxi 350 35000000 6.48 32,732,000 50 300Henan 1382.9 138300000 7.32 128,176,440 67 1315.9 10000Hubei 1291 129100000 2.51 125,859,590 814 477Hunan 640 64000000 5 60,800,000 241 399Chongqing 236.2 23620000 8.05 21,718,590 60.36 175.84Sichuan 1017 101700000 4.27 97,357,410 644.98 372.02TotalMWh 466,644,030 466,644,030Data sourceChina Electric Power Yearbook 2006.OtherOtherTotalTotal

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page51Table A3-10 Annual electricity generation in Central China Power Grid in 2006Total ElectricityTotal ElectricityProvince Total Electricity GeneratedSelf usage rateGenerateddelivered to the grid 10 8 kWh) MWh) % MWh)Jiangxi 436 43600000 6.17 40,909,880Henan 1583 158300000 7.06 147,124,020Hubei 1308 130800000 2.75 127,203,000Hunan 748 74800000 4.95 71,097,400Chongqing 289 28900000 8.45 26,457,950Sichuan 1227 122700000 4.51 117,166,230TotalMWh 529,958,480Data sourceChina Electric Power Yearbook 2007.Table A3-11 Average emission factor of Central China Power Grid in 2004Fuel types unit Jiangxi Henan Hubei Hunan Chongqing Sichuan Sub-Total EF CO2 OXID NCVA B C D E FG=A+B+C+D+E+Ftc/TJ%MJ/t,km 3 H I JCO2 emissionstCO 2 eJ=G*H*I*F*44/12/10000massK=G*H*I*J*44/12/1000 (volume)Coal 10 4 t 1863.8 6948.5 2510.5 2197.9 875.5 2747.9 17144.1 25.8 100 20908 339,092,605Washed coal 10 4 t 2.34 2.34 25.8 100 26344 58,316Otherwashed coal 10 4 t 48.93 104.22 89.72 242.87 25.8 100 8363 1,921,441Coke 10 4 t 109.61 109.61 29.2 100 28435 3,337,011Coke ovengas 10 8 m 3 1.68 0.34 2.02 12.1 100 16726 149,900Other gas 10 8 m 3 2.61 2.61 12.1 100 5227 60,527Crude oil 10 4 t 0.86 0.22 1.08 20 100 41816 33,118

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page52Gasoline 10 4 t 0.06 0.01 0.07 18.9 100 43070 2,089Diesel 10 4 t 0.02 3.86 1.7 1.72 1.14 8.44 20.2 100 42652 266,627Fuel oil 10 4 t 1.09 0.19 9.55 1.38 0.48 1.68 14.37 21.1 100 41816 464,893LPG 10 4 t 0 17.2 100 50179 0Refinery gas 10 4 t 3.52 2.27 5.79 15.7 100 46055 153,506Natural gas 10 8 m 3 2.27 2.27 15.3 100 38931 495,775Otherpetroleumproducts 10 4 t 0 20 100 38369 0Other cokedproducts 10 4 t 0 25.8 100 28435 0other energy 10 4 t 16.92 15.2 20.95 53.07 0 100 0 0 Total 346,035,810Average emissionfactor 0.82732Data sources: China Energy Statistical Yearbook 2005.Table A3-12 Average emission factor of Central China Power Grid in 2005Fuel types unit Jiangxi Henan Hubei Hunan Chongqing Sichuan Sub-Total EF CO2 OXID NCVA B C D E FG=A+B+C+D+E+Ftc/TJ%MJ/t,km 3 H I JCO2 emissionstCO 2 eJ=G*H*I*F*44/12/10000massK=G*H*I*J*44/12/1000 (volume)Coal 10 4 t 1869.29 7638.87 2732.15 1712.27 875.4 2999.77 17827.75 25.8 100 20908 352,614,497Washedcoal 10 4 t 0.02 0.02 25.8 100 26344 498Otherwashed coal 10 4 t 138.12 89.99 228.11 25.8 100 8363 1,804,669Coke 10 4 t 25.95 105 130.95 29.2 100 28435 3,986,695Coke oven 10 8 m 3 1.15 0.36 1.51 12.1 100 16726 112,054

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page53gasOther gas 10 8 m 3 10.2 3.12 13.32 12.1 100 5227 308,897Crude oil 10 4 t 0.82 0.36 1.18 20 100 41816 36,185Gasoline 10 4 t 0.02 0.02 0.04 18.9 100 43070 1,194Diesel 10 4 t 1.3 3.03 2.39 1.39 1.38 9.49 20.2 100 42652 299,798Fuel oil 10 4 t 0.64 0.29 3.15 1.68 0.89 2.22 8.87 21.1 100 41816 286,959LPG 10 4 t 0 17.2 100 50179 0Refinerygas 10 4 t 0.71 3.41 1.76 0.78 6.66 15.7 100 46055 176,572Natural gas 10 8 m 3 3 3 15.3 100 38931 655,209Otherpetroleumproducts 10 4 t 0 20 100 38369 0Other cokedproducts 10 4 t 1.5 1.5 25.8 100 28435 40,349otherenergy 10 4 t 2.88 1.74 32.8 37.42 0 100 0 0 Total 360,323,575Average emission factor 0.77216Data sources: China Energy Statistical Yearbook 2006.Table A3-13 Average emission factor of Central China Power Grid in 2006Fuel types unit Jiangxi Henan Hubei Hunan Chongqing Sichuan Sub-Total EF CO2OXIDtc/TJ % A B C D E FG=A+B+C+D+E+FNCVMJ/t,km 3 H I JCO2 emissionstCO 2 eJ=G*H*I*F*44/12/10000massK=G*H*I*J*44/12/1000 (volume)Coal 10 4 t 1926.02 8098.01 3179.79 2454.48 1184.3 3285.22 20127.82 25.8 100 20908 398,107,508Washed coal 10 4 t 5.79 5.79 25.8 100 26344 144,295

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page54Otherwashed coal 10 4 t 4.51 104.12 8.59 79.21 196.43 25.8 100 8363 1,554,036Briquette 10 4 t 0.01 0.01 26.6 100 20908 204Coke 10 4 t 17.23 0.32 17.55 29.2 100 28435 534,299Coke ovengas 10 8 m 3 0.52 1.07 4.24 0.38 0.01 6.22 12.1 100 16726 461,572Other gas 10 8 m 3 12.69 3.95 1.7 4.36 0.01 22.71 12.1 100 5227 526,655Crude oil 10 4 t 0.49 0.49 20 100 41816 15,026Gasoline 10 4 t 0.01 0.01 18.9 100 43070 298Diesel 10 4 t 0.91 2.23 1.41 1.78 0.96 7.29 20.2 100 42652 230,298Fuel oil 10 4 t 0.51 1.26 1.31 0.8 0.57 3.49 7.94 21.1 100 41816 256,872LPG 10 4 t 0 17.2 100 50179 0Refinery gas 10 4 t 0.86 8.1 1 0.97 10.93 15.7 100 46055 289,780Natural gas 10 8 m 3 0.28 0.16 18.63 19.07 15.3 100 38931 4,164,943Otherpetroleumproducts 10 4 t 0 20 100 38369 0Other cokedproducts 10 4 t 0.01 0.01 25.8 100 28435 269other energy 10 4 t 17.45 37.36 31.55 18.29 29.35 134 0 100 0 0 Total 406,286,055Average emission factor 0.77134Data sources: China Energy Statistical Yearbook 2007.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page55Table A3-14 The OM CO 2 emission factor of the East China Power Grid2004 2005 2006X Y ZPower generation 453378723 515638698 593583295delivered to the GridA B COM(2004,2005,2006) 0.96175 0.96705 0.93663OM 0.9540NoteAverage OM = AX+BY+CZ/(X+Y+Z), whereA, B and C are 2004 OM, 2005 OM, and 2006 OM, respectively.X, Y and Z are the power generation delivered to East China Power Grid in 2004, 2005, and 2006, respectively.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board2. BM emission factor calculation of ECPGPage56Table A3-15 Emission factor of the unit applying best commercially available technologyVariablePowersupply EFco2EFAdvefficiency (tc/TJ)OXID(tCO 2 /MWh)%A B C D=3.6/A/1000*B*C*44/12Coal fired plants EFCoal,Adv 37.28% 25.8 1 0.9135Gas fired plantsEF Gas,Adv 48.81% 15.3 1 0.4138Oil fired plantsEF Oil,Adv 48.81% 21.1 1 0.5706Data sourceshttp://cdm.ccchina.gov.cn/WebSite/CDM/UpFile/2008/20081231101111351.pdf

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page57Step 1: Calculating the respective percentages of CO 2 emissions from coal fired power generation, oil fired power generation, and gas fired power generationagainst total CO 2 emissions from fossil fuel fired power generationTable A3-16 Respective percentages of CO 2 emissions from coal fired power generation,oil fired power generation, and gas fired power generation against total CO 2 emissions from fossil fuel fired power generation in 2006Shangha Zhejian Jiangsu Anhui Fujian Total NCV EmissionigFactorCO2 emissionsFuel Unit A B C D E F=A+…+E G H K=F*G*H*44/12/100Raw coal 10 4 t 2744.45 6065 10945.4 3455.2 2369.63 25579.7 20908 25.8 505,940,068Washed coal 10 4 t 0 0 0 0 0 0 26344 25.8 0Other washed 10 4 t 0 0 150.54 23.06 0 173.6 8363 25.8 1,373,419coalBriquette 10 4 t 0 0 0 0 20908 26.6 0Coke 10 4 t 0 39.07 0 0 0 39.07 28435 29.2 1,189,463Total 10 4 t 508,502,949Crude oil 10 4 t 0 20.3 0 0 0 20.3 41816 20 622,501Gasoline 10 4 t 0 0 0 0 0 0 43070 18.9 0Kerosene 10 4 t 0 0 0 0 0 0 43070 19.6 0Diesel 10 4 t 2.13 4.11 3.7 1.21 1.11 12.26 42652 20.2 387,305Fuel oil 10 4 t 44.51 71.98 3.77 0.02 4.5 124.78 41816 21.1 4,036,838Other 10 4 t 18.82 0 3.57 0 0 22.39 38369 20 629,993petroleumproductsOther coked 10 4 t 0 0 0 0 28435 25.8 0productsTotal 5,676,637Natural gas 10 7 32 91.8 135 0 0 258.8 38931 15.3 5,652,267m 3Coke oven gas 10 7 17.1 2.3 31.3 7.1 0 57.8 16726 12.1 428,920m 3Other gas 10 7 846.4 32.8 1065.4 251.2 0 2195.8 5227 12.1 5,092,160m 3LPG 10 4 t 0 0 0 0 0 0 50179 17.2 0

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page58Refinery gas 10 4 t 0.29 0 0.4 2.95 0 3.64 46055 15.7 96,505Total 11,269,853Sum total 525,449,440Data sources: China Energy Statistical Yearbook 2007With the above table and formula (4), (5), and (6) in B.6, the following results are achieved:λCoal= 96.78%, λOil=1.08%, λGas=2.14%.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive BoardPage59Step 2: calculating the corresponding emission factor for fossil fuel fired power generationEF = Thermal λCoal× EF + Coal , Adv λOill × EF + Oil , Adv λGas× EF =0.8991 tCO /MWhGas , Adv 2Step 3: Calculating the EF BM, y of local gridTable A3-17 Installed capacity in the East China Power Grid in 2006Installed Unit Shanghai Jiangsu Zhejiang Anhui Fujian TotalThermal Power iMW 14526 51776 35391 14134 13001 128828Hydro power MW 0 136 8369 1001 8957 18463Nuclear power MW 0 0 3066 0 0 3066Wind power MW 253 162 43 0 89 547Total dMW 14779 52074 46869 15135 22047 150904Date source: China Electric Power Yearbook 2007Table A3-18 Installed capacity in the East China Power Grid in 2005Installed capacity Unit Shanghai Jiangsu Zhejiang Anhui Fujian TotalThermal Power MW 13113.5 42506.4 27688.1 11423.2 9345.4 104076.6Hydro power MW 0 142.6 6952.1 749.8 8224.9 16069.4Nuclear power MW 0 0 3066 0 0 3066Wind power MW 253.3 58.8 37.2 0 52 401.3Total MW 13366.8 42707.8 37743.4 12173 17622.3 123613.3Date source: China Electric Power Yearbook 2006Table A3-19 Installed capacity in the East China Power Grid in 2004Installed Unit Shanghai Jiangsu Zhejiang Anhui Fujian TotalThermal Power iMW 12014.9 28289.5 21439.8 9364.5 8315.4 79424.1Hydro power MW 0 126.5 6418.4 692.8 7180.1 14417.8Nuclear power MW 0 0 3056 0 0 3056Wind power MW 3.4 17.5 39.7 0 12 72.6Total dMW 12018.3 28433.5 30953.9 10057.3 15507.5 96970.5Date source: China Electric Power Yearbook 2005

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1CDM – Executive Board Page60Installed capacity in2004MWTable A3-20 Capacity addition in the East China Power GridInstalled capacity in2005MWInstalled capacity in2006MW2004-2006Addition capacityMW2004-2006Addition share%A B C D=C-AThermal Power 79424.1 104076.6 128828 49403.9 91.60%Hydro power 14417.8 16069.4 18463 4045.2 7.50%Nuclear power 3056 3066 3066 10 0.02%Wind power 72.6 401.3 547 474.4 0.88%Total 96970.5 123613.3 150904 53933.5 100.00%Share of 2006installed64.26% 81.92% 100%EF BM,y =0.8991×91.60%=0.8236 tCO 2 /MWh

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.CDM – Executive Board page 613. Combined EF calculation of East China Power GridKey parameter:Table A-21 Combined emission factor of the East China Power GridOM(tCO 2 /MWh) 0.9540BM(tCO 2 /MWh) 0.8236CM(tCO 2 /MWh)=OM×0.75+BM×0.25 0.9214

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.CDM – Executive Board page 62Annex 4MONITORING INFORMATIONThere is no further monitoring information to provide.