JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 1 JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM Version 01 - in effect as of: 15 June 2006 CONTENTS A. General description of the project B. Baseline C. Duration of the project / crediting period D. Monitoring plan E. Estimation of greenhouse gas emission reductions F. Environmental impacts G. Stakeholders’ comments Annexes Annex 1: Contact information on project participants Annex 2: Baseline information Annex 3: Monitoring plan This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 2 SECTION A. General description of the project A.1. Title of the project: >> Title: Reconstruction of the units at the Structure Unit “Kurakhovskaya TPP” of the “Skhidenergo” ltd. Sectoral scope 1: Energy industries (non-renewable sources). Version: 1.1 (draft) Date: 28th October 2009 A.2. Description of the project: >> Kurakhovskaya TPP exploited by energy generating company Skhidenergo ltd. Installed power capacity of the Kurakhovskaya TPP is 1460 MW. All energy equipment was installed in the 1970's. The list of installed equipment: 7 boilers Ttp-109 (one boiler per unit), produced by the Taganrog boiler factory. Steam capacity 640 t/hour, steam pressure 130 kg/sm2, temperature of the overheated steam is 545 CC. 6 turbines K-210-130, produced by the "Leningrad metal works", capacity 200 MW. Installed power capacity is 200 MW. 1 turbine K-200-130-3, produced by the "Leningrad metal works", capacity 210 MW. Installed power capacity is 210 MW. 6 power generators ТГВ-200М, produced by the “Kharkov SPC Electrotyazhmash” with the capacity of 210 MW. 1 power generator ТГВ-200, produced by the “Kharkov SPC Electrotyazhmash” with the capacity of 200 MW. Electricity consumption for own needs -9.8% (2007). Main, (reserve) fuel - coal, (heavy fuel oil/natural gas). The overall efficiency of the TPP was 30.83% in 2007. Project foresees modernization of the main and the auxiliary equipment of the all energy-generating units of the TPP according to the following schedule. Table 1. Project Schedule. Unit №3 Unit №4 Unit №5 Unit №6 Unit №7 Unit №8 Unit №9 2015-2016 2013-2014 2007-2008 2011-2012 2009-2010 2010-2011 2012-2013 It includes replacement of outdated turbine equipment, control, automatic systems, and electrotechnical system, modernization of the boiler equipment, electric separation system, cooling system. After the reconstruction (of all 7 units) the technical characteristics of the TPP are expected to be: Installed power capacity - 1520 MW; Electricity consumption for the own needs - 8.7%. Main (reserve) fuel - coal (natural gas/heavy fuel oil). This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 3 The main objective of the Project is to make the existing power equipment of the TPP more efficient and reliable. The increased efficiency will provide a higher output and lower fuel consumption. The increased capacity of the TPP is due to the better efficiency of the existing equipment. It will reduce the fuel consumption per unit of the energy produced by the station. Thus the GHG emission per the energy unit produced will be lowered. Thermal energy delivery in project scenario will remain the same as in the baseline scenario. Other goals of the project are to: • lower greenhouse gases emission; • improve stability and reliability of generation and transmission of electricity; • implement safety measures; • improve health and safety on site. A.3. >> Project participants: Name of Party involved (*) Private and/or public ((host) indicates a host Party) entity(ies) project participants (*) (as applicable) Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) Ukraine (Host Party) No Skhidenergo Ltd. No Ukraine ELTA JSC No This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee A.4. page 4 Technical description of the project: A.4.1. Location of the project: A.4.1.1. Host Party(ies): >> Ukraine Figure 1. Ukraine This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 5 A.4.1.2. Region/State/Province etc.: >> Donetsk region, Eastern Part of Ukraine Figure 2. Donetsk region1 1 http://travel.kyiv.org/map/e_don.htm This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 6 A.4.1.3. City/Town/Community etc.: >> Kurkhovo town, Donetsk region, Ukraine Figure 3. Kurakhovo town2 A.4.1.4. Detail of physical location, including information allowing the unique identification of the project (maximum one page): >> The project is located in Donetsk region, Kurakhovo town, Plekhanova street 43. Kurakhovo town is located at the following coordinates: 47°58'N and 37°17'E 2 http://encarta.msn.com/encnet/features/MapCenter/Map.aspx?searchTextMap=Kurakhovo This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 7 A.4.2. Technology(ies) to be employed, or measures, operations or actions to be implemented by the project: >> 6 of the units at the Kurakhovslkaya Thermal Power Plant has a design capacity of 210MW Another one has a design capacity of 200 MW. Each unit consists of a boiler, steam turbine, electric generator, feedwater heaters, condensate and boiler feed pumps, condenser, circulating water pumps, steam generator, main and auxiliary electrical transformer and auxiliaries. The steam generator is designed to operate on coal. The electricity generated is conveyed to the grid via 330 kV and 110 kV transmission lines. All major equipment was manufactured in the former Soviet Union. Within this project the following packages of measures will be undertaken on the each unit: • the rehabilitation of the turbine equipment to restore its initial efficiency and modernize its command & control system; • the improvement of the designed parameters of the turbine equipment; • the rehabilitation (reconstruction) of the regulation system; • the rehabilitation (reconstruction) of the boiler; • the boiler binding reconstruction to use natural gas as reserve fuel instead of the heavy fuel oil; • the reconstruction (change) of the control system of the of the Unit; • the reconstruction of the generator and the cooling system; • the rehabilitation (reconstruction) of the electric filters with the change of the electric and control systems; • the rehabilitation of the feed-pump; • the rehabilitation (reconstruction) of the electric equipment of the Unit (including unit transformer). More detailed description of the rehabilitation: A. Turbine equipment 1. Steam turbine - Low pressure cylinder modernization with the rotor change; - Change of the end seals; - Change of the diaphragms, end and diaphragm seals; - Casings change; - Overhaul and change of bearings; - Feed and exhaust pipe retrofit; - Retrofit of the LPC support; - Generator and Middle pressure cylinder half-couplings reconstruction; - Rotor hydrolifting system installation. 2. Steampipelines - overhaul and repairs. 3. Pumping equipment - change of the inner casing of the feed pump; - overhaul and repair of all pumping equipment. 4. Fittings - overhaul and in case of need – repair and change of the fittings. 5. Insulation - overhaul and rehabilitation of the high and middle pressure equipment insulation; - repair of the feed-water pipeline insulation. 6. Control system - equipping of the turbine with the electronic control, monitor and regulation system. 7. Electric filters - change of the electrodes; - change of the gas distribution gates; - change of the filter control system; - overhaul and repair of the filter system. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 8 B. Boiler equipment - major repair of the boiler unit and supporting equipment; - replacement of the metal housing; - repair of the steam pipelines; - replacement of the coiled pipes; - total replacement of the water-wall tubes and water economizer; - repair of the separation equipment; - overhaul and repair of the all pipelines and steam pipelines; - cleaning and repair of the tubular air heater; - overhaul and replacement of the winding and thermal insulation; - repair and replacement of fittings. C. Electric generator and electric equipment - replacement of the stator winding; - modernization of the cooling system of the generator with the replacement of the gas condensers; - major repair of the transformer; - modernization of the cooling system of the transformer. For the reconstruction and rehabilitation at Kurakhovskaya TPP the technology that is common in former Soviet Union will be used. No special training for the personnel is needed. A.4.3. Brief explanation of how the anthropogenic emissions of greenhouse gases by sources are to be reduced by the proposed JI project, including why the emission reductions would not occur in the absence of the proposed project, taking into account national and/or sectoral policies and circumstances: >> Energy generation is one of the most important sectors of the Ukrainian economy. It has been showing a significant growth since 1999. The Nuclear power plants and Thermal power plants are generating the main part of the energy produced in Ukraine3. Nuclear power plants are able to work only with the fixed (basic) load whereas TPPs are mainly work with the flexible (manoeuvre) load. That is why, one of the main targets of the energy system development is to increase the reliability of the existing equipment with the increase of its installed capacity. The proposed Project provides emission reductions by lowering of the amount of fuel used per energy unit produced (MW, Gcal, etc.). This Project would never have occurred without JI registration and a good will of the Project owner. There are several legal acts in Ukraine to regulate the energy sector. The main ones are described below with the description of the existing situation. SECTOR BACKGROUND Ukrainian Law on Power Industry from 16 October 1997, N 575/97-BP4 is the basic law in Ukraine that determines legal, economic, and organizational activities relevant to electricity and regulates the relationships linked with generation, distribution and consumption of power, energy security of Ukraine, competition and other aspects of power industry. The law stimulates and ensures sustainability issues related to the power industry: such as rational fuel consumption, technological development, and environmental safety. In 1996, Ukraine adopted the National Energy Program until 20105, designed to rehabilitate working thermal power plants to allow them to continue operating for the next 25 years. As a way to reach this 3 http://ukrrudprom.com/data/htmls/cvjfddh09012008.php 4 http://zakon.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=575%2F97-%E2%F0 5 http://www.uazakon.com/document/spart91/inx91184.htm This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 9 objective, the program's mandate specified technological improvements, use of renewable energy sources and modernization of the power plants, including making them more environmentally friendly. The program also specified that combined cycle-gas turbine equipment- as well as most of the auxiliary equipment - needed to be improved to reach acceptable safety levels. Good-quality coal was to be used to reduce environmental damage. However, many of these reconstruction and modification projects have been seriously delayed because of the shortage of state budget financing, weak legislation, and the lack of private investment. To make the country less dependent on energy imports, the President has issued a Decree on measures to increase energy security of Ukraine (21 October 2005), and called for the elaboration of an Energy Strategy covering the period until 2030. The Cabinet of Ministers Resolution No. 145-p approved the new Energy Strategy up to 2030 in March 20066. Its main objectives are: • Increasing the level of the country's energy security; • Reducing energy intensity in industrial production; • Integrating Ukrainian Power Grid with the European Power Grid System and increasing electricity exports; • Strengthening Ukraine's position as a transit country for oil and natural gas flows; • Creating conditions to reliably meet the energy demand; • Reducing environmental impact from the fuel and energy sector and ensuring human safety; The Strategy focuses on traditional energy sectors, i.e. gas, oil, nuclear and coal. It briefly mentions renewable energies, and does not cover new energy technologies. The Strategy mentioned covers many of the Ukrainian TPPs with the plans of the rehabilitation and energy efficiency increase. Nevertheless, only few of the TPPs mentioned in the Strategy have been implementing the measures described in it. One of the main reasons that the Project “Reconstruction of the units at SU “Kurakhovskaya TPP” of the “Skhidenergo” ltd.” is implemented is that the Project has been developed as a JI project. All the energy generated by the TPP is sold to the State network and the government is setting the price of the energy. It means that the price does not show the real situation for the energy sector. It does not cover any repair and particularly, rehabilitation. Only additional cash flow can help the project to be implemented. Furthermore, in the conditions of the world financial crisis and the change in the cost of money, the JI development and possibility of the additional cash flow from the selling of the ERUs were the main reasons to not to cancel the Project implementation. If project is not implemented, the baseline scenario would look like 'business-as usual" scenario. That means, that the Kurakhovskaya TPP would continue to operate as before or would increase the production of the energy by the extension of the operating time. In this case a slight decrease in energy efficiency each year would occur. This situation is the most plausible. A.4.3.1. Estimated amount of emission reductions over the crediting period: >> During the Project crediting period, monitoring data will be used to determine the actual realized emission reductions in complience with the annual energy production value. We assume that during the periods in which the rehabilitation takes place the average annual energy production will be 6 500 000 MWh. Table 2. Annual emission reductions Years Annual estimation of emission reductions (in tonnes of CO2 e) 2009 6 75 162.76 http://zakon.rada.gov.ua/signal/kr06145a.doc This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 10 2010 278 789.29 2011 374 339.29 2012 468 589.29 2013 561 539.61 2014 561 539.29 2015 652 539.29 2016 652 539.29 2017 742 889.29 2018 2019 742 889.29 742 889.29 2020 742 889.29 Total emission reductions (tonnes of CO2 e) Total number of crediting years Annual average over the crediting period of estimated reductions (tonnes of CO2 e) 6 596 594.95 12 549 716.25 The total amount of emissions reduction to be achieved by the project is 6 596 594.95 tCO2eq. The annual average amount of GHG emissions is 549 716.25 tCO2/yr. A.5. Project approval by the Parties involved: >> The Lettter of Endorsement has been received from the National Environmental Investments Agency of Ukraine (attached to the PDD). The Letter of Approval is expected to be received from the National Environmental Investments Agency of Ukraine, the host Country. The Letter of Approval is expected to be received from the Designated Focal Point of. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 11 SECTION B. Baseline B.1. Description and justification of the baseline chosen: >> The Project activity does not correspond properly to any of the Approved Methodologies. The methodology, which is very much similar to the Project activity, is AM 0061, but there is a difference in calculations. The main difference in the methodologies is that in the AM 0061 the Project boundary includes the National electricity grid whereas in the methodology used for the Project activity the grid is outside of the Project boundary. It can be explained by the fact that in AM 0061 reference project the TPP described covers about 95% of the electricity production of the country. It means that the emission factor of the TPP is similar to the Grid emission factor and any measures leading to the TPP emission factor lowering at the same time lead to the Grid emission factor lowering. In Ukraine, where the proposed Project takes place, it is impossible to apply, because the Grid emission factor is being calculated taking into account that about the half of the electricity production is being covered by the NPPs and HPPs. In that case the Grid emission factor is lower then the emission factor of the electricity produced by the coal-based TPP. But the TPPs cannot be excluded from the energy sector of Ukraine, because they provide electricity in the manoeuvre load. For the Project a new Methodology will be provided. Project will use a baseline and monitoring plan in accordance with Appendix B of the JI Guidelines and further JISC guidance7. In the proposed project CO2 emissions to atmosphere will be reduced through the efficiency increase of power generation at the Kurakhovskaya TPP after the reconstruction of the boiler, the turbine equipment, the control and regulation system, the electro-generation and the cooling system. The energy production depends on the demand of the market. The station can increase the energy production at any time. It means that all the additional energy produced during the Project period will substitute the energy, that would have been produced by the TPP, but with the less efficiency and higher GHG emission. Identification of the most plausible baseline scenario for the rehabilitation and/or energy efficiency improvement of the power plant through the application of the following steps: Step 1. Identification of alternatives to the project activity consistent with current laws and regulations Sub-step 1a. Define alternatives to the project activity The alternatives to the project activity’s energy efficiency measures are: 1. The proposed project activity not undertaken as a JI project; 2. Investments in new generation capacity; 3. Continuation of the existing situation; 4. The proposed project is being registered as a JI project. Sub-step 1b. Enforcement of applicable laws and regulations All the alternatives to the project outlined in Step 1a above are in compliance with applicable laws and regulations. The governmental policy has already been described in the A.4.3. Sector Background. Step 2. Investment analysis and Barrier Analysis Sub-step 2a. Identify barriers that would prevent the implementation of type of the proposed project activity. 1.The most important barrier that would prevent the implementation of the project is a financial barrier. 7 http://ji.unfccc.int/ This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 12 (1) The State may allow accumulating funds for reconstruction and modernization purposes by increasing investment part of the tariff. However, it will not be enough to finance the whole project. For the proposed Project, the investment part of the tariff will cover 80% of the investment costs (with the taxation – only 60% remains) (2) As Ukrainian Law on Electric Energy is quite generic, the investment barrier still exists. The company will finance project by its own equity and by using a bank loan. It is planned that the debt will be gradually retuned during a certain period of time via increase of investment part of the tariff. However, the amount of tariff increase will depend on the decision of the National Electricity Regulatory Commission of Ukraine. 20% of the investment shall be paid from company's cash-flow. The loan interest rate on 80% of investment will also be paid by the “Skhidenergo” company and in the situation of the economical crisis, when commercial banks can change the loan conditions it is almost impossible to calculate this rate. The reconstruction planned to be provided in several steps. As an example, the calculation of the cashflow of the reconstruction of one unit (#5) is provided below. The investments into the Project are calculated at about 159 000 00.00 UAH. 80% of the Investment costs will be repaid due to the investment part of the electricity tariff according to the Resolution of the National Commission for the Electricity Regulation of Ukraine # 1188 dated 30.08.2007 8. This allows the Project Owner to Receive the additional Cash Flow at about 2 234 200.00 UAH monthly during 57 months. For the Project implementation the bank loan was obtained with the rate of 14% (that is at least 10% lower then the actual rate) for 57 months. The calculations show that even with the compensation by the tariff, but without a JI registration of the Project, the NPV of the Project at the end of 2012 will be –11 758 000.00 UAH, i.e. total loses will be more then 1 000 000.00 EUR and the assumptions for the following years do not allow to expect the payback. Table 3. Economic indicators of the Project NPV IRR -11 758 000 UAH -3% The JI registration of the Project will allow getting an additional cash flow and the NPV at the end of 2012 will be 25 689 000.00 UAH (About 2.5 million Euro). The calculations show that the Project is additional and only in case of the JI registration the Project will be profitable. 2. The second important barrier is the technical condition of the equipment. All of the TPPs operating in Ukraine were built in Soviet Union and their operation time is several times more than it was designed (see table). That is why the operation of the existing equipment is unpridictable. Any breakage can occur at any time of the operation. Nevertheless, the financial situation described in the first barrier does not allow provision of any rehabilitation in most cases where no JI registration occurs. Table 4. Running hours of the Units at Kurakhovskaya TPP Unit number Date of startup Running hours (on 01.01.2007) 8 3 11.1972 4 11.1973 5 12.1973 6 12.1973 7 09.1974 8 12.1974 9 10.1975 227 151 206 103 197 259 192 158 203 058 200 198 194 162 http://zakon.nau.ua/doc/?code=v1789227-07 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 13 3. Another significant barrier is the technical one. The TPP is a very complicated system, which consists of the groups of equipment and only if these groups work coherently the result will be positive. It means that all of the groups of measures implemented on the TPP should be coordinated with the other parts of the system. Besides, some new equipment will be implemented on the Units and there is no experience or historical data that could show the possibility of the effective work of such a systems. Sub-step 2b. Eliminate alternative scenarios which are prevented by the identified barriers: 1. The financial barrier is eliminating the first alternative. Only a JI registration can push the rehabilitation forward and allow the Project to be implemented. It also can stimulate the project owner to provide this kind of projects on the other TPPs. 2. The financial barrier also eliminates the second alternative. Even the JI registration does not allow accumulating the amount of money to build a new generation capacity. 3. The continuation of the existing situation is the most plausible alternative in a short-time perspective, but it does not allow planning the future, it only allows the company to survive. That is why in a long-term perspective this alternative cannot be taken into account. 4. The only one alternative not prevented by any barrier is the Project activity with the JI registration The Project additionality is demonstrated through use of the Tool for the demonstration and assessment of additionality (version 2), as proposed in the Executive Board’s 22nd meeting9. The first two steps of the Additionality tool have already been applied in Section B.1 on the selection of the baseline scenario. Therefore in this section only step 3 (Common practice analysis) and 4 (Impact of JI registration) of the Additionality tool needs to be applied. Step 3. Common practice analysis Sub-step 3a. Analyze other activities similar to the proposed project activity: Currently in Ukraine, there are the following energy efficiency improvement initiatives underway at the country’s various power producing facilities. During past 15 years only 2 projects for the TPP rahabilitation were implemented in Ukraine (rehabilitation of unit #8 of Zmievskaya TPP co-financed by the WB in 199810 and rehabilitation of unit #4 of Starobeshevskaya TPP financed by the EBRD during 2000 to 200411). The main measures of the governmental policy have already been described in the Sector Background in Section A.4.3. Main activities described in the Strategy are similar to the Project Activity with minor differences. All these activities are not implemented because of the lack of financial resources. The situation in the energy sector of Ukraine leads to the situation, when most of the TPPs are going to be privatised, but no special targets or activities are going on because of the political and financial uncertainty. The Reconstruction of the Units of the Kurakhovskaya TPP is one of few projects implementing only because the TPP is a private enterprise and the possibility of the development as JI Project. Step 4. Impact of JI registration 9 http://ji.unfccc.int/ 10 http://pdf.usaid.gov/pdf_docs/PNADD867.pdf 11 http://www.ebrd.com/new/pressrel/1996/107dec17.htm This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 14 The most significant impact of JI registration is that the additional hard currency revenue stream from the ERUs enables the company to accept the debt burden and hence allows the project to go ahead. In calculating the effect of JI revenue in the project activity, we assume the following: • The net carbon revenue per ton of CO2 emissions reductions is assumed to be 8.50 €/ton taking into account transaction costs • A total average annual estimated CO2 emissions reductions of 489 497.6 Mton CO2 is expected • The revenue from emissions reductions is assumed to be realized (cashed in) 1 year after the year of the reconstruction. B.2. Description of how the anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in the absence of the JI project: >> The Baseline Scenario is the amount of the energy that would have otherwise been generated by the Kurakhovskaya TPP at the absence of the Project. The greenhouse gases emission is reduced by the more efficient use of the fuel. The provision of the TPP rehabilitation will reduce the amount of the fuel combusted for production of the energy unit (MW, Gcal). That means that each MW of energy produced will contain less fuel, that means that the greenhouse gases emission per MW (or Gcal) will be less than it would have occurred in the absence of the JI project. For the four year period, a total of 20 949 583 tonnes of CO2eq is expected to be produced in the project activity. For a four year period, a total of 22 186 667 tonnes of CO2 eq is expected to be produced in the baseline scenario. The total emission reductions of the four year period are 1 196 880.63 tonnes of CO2eq. For the twelve year period, a total of 68 797 383 tonnes of CO2 eq is expected to be produced in the project activity. For a twelve year period, a total of 75 434 667 tonnes of CO2eq is expected to be produced in the baseline scenario. The total emission reductions of the project are 6 596 594.95 tonnes of CO2eq. Table 5. Annual emissions and emission reductions Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total (tonnes of CO2) Estimation of project activity emissions (tonnes CO2 e) 2 143 483 6 377 150 6 281 600 6 187 350 6 094 400 6 094 400 6 003 400 6 003 400 5 913 050 5 913 050 5 913 050 5 913 050 68 837 383 Estimation of baseline emissions (tonnes CO2 e) 2 218 667 6 656 000 6 656 000 6 656 000 6 656 000 6 656 000 6 656 000 6 656 000 6 656 000 6 656 000 6 656 000 6 656 000 75 434 667 Estimation of leakage (tonnes CO2 e) Total emission reduction (tonnes CO2 e) 20.24 60.71 60.71 60.71 60.71 60.71 60.71 60.71 60.71 60.71 60.71 60.71 688.08 75 162.76 278 789.29 374 339.29 468 589.29 561 539.61 561 539.29 652 539.29 652 539.29 742 889.29 742 889.29 742 889.29 742 889.29 6 596 594.95 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 15 Assumptions: - The emission reductions are based on assumed electricity production. During the project the monitoring will result in the actual realised emission reductions. B.3. Description of how the definition of the project boundary is applied to the project: >> The project activity encompasses efficiency improvements in the Kurakhovskaya Power Plant. The spatial extent of the project boundary includes the project site and all the Units of the Kurakhovskaya TPP. Coal, natural gas and heavy fuel oil Fuel transportation Kurakhovskaya TPP (7 Units) Power generating equipment: - fuel economy due to rehabilitation; - emission reductions due to decrease of the fuel consumption rate. Electricity to the grid Figure 3. Project boundary Sources and gases included in the project boundary are indicated in the table below. Table 6. Sources of emission in the Baseline Scenario and in the Project Baseline Project Activity Source Gas Included Justification / Explanation Baseline Power plant emission CO2 Yes CO2 is formed with the combustion of fuels. CH4 No N2O No Minor source, can be neglected (conservative approach). Only taken into account as leakage Minor source, can be neglected. CO2 Yes CO2 is formed with the combustion of fuels. CH4 No Only taken into account as leakage. N2O No Minor source, can be neglected Project Power Plant emission This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 16 B.4. Further baseline information, including the date of baseline setting and the name(s) of the person(s)/entity(ies) setting the baseline: >> Date of the baseline setting: 15/07/2009 Name of the person(s)/entities setting the baseline: JSC IEA “Elta” Detailed contact information in Annex 1. SECTION C. Duration of the project / crediting period C.1. Starting date of the project: >> 01/07/2008. C.2. Expected operational lifetime of the project: >> Not less then 15 years. C.3. Length of the crediting period: >> 12 years. 2009 – 2020 (or other, according to the actual UNFCCC decision). This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 17 SECTION D. Monitoring plan D.1. Description of monitoring plan chosen: >> Monitoring plan according to the Baseline chosen supposes the measurement of the fuel (coal, natural gas, heavy fuel oil) consumption, electricity production and heat supply during a year with the monthly calculation of the emission reductions. D.1.1. Option 1 – Monitoring of the emissions in the project scenario and the baseline scenario: D.1.1.1. Data to be collected in order to monitor emissions from the project, and how these data will be archived: ID number (Please use numbers to ease crossreferencing to D.2.) P1 PEy Data variable Source of data Data unit Measured (m), calculated (c), estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment Project emission in year y monitoring t of CO2 eq c monthly 100% electronic, paper P2 COEFyp Emission coefficient of the energy produced in year y in project scenario The amount of fuel i consumed for energy production in year y in project scenario The net caloric value of the fuel monitoring t CO2/GJ c monthly 100% electronic, paper Calculated by formulae in chapter D.1.1.2., see below Calculated by formulae in chapter D.1.1.2., see below Scales, gas meter, fuel meter t or m3 m monthly 100% electronic, paper The meters measure the amount of fuel used in a real time Lab analysis, data from the GJ per t or GJ per m3 c monthly 100% electronic, paper The net caloric value is checked P3 Fiyp P4 NCViyp This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 18 i in year y in project scenario fuel supplier P5 OXIDiyp Oxidation factor of the fuel i in year y in project scenario IPCC Guidelines for RGGI12 P6 EFiyp Emission factor of the fuel i in year y in the project scenario IPCC Guidelines for RGGI P7 AELPyp The annual electricity production in project scenario Coefficient to calculate MW into GJ monitoring P8 r e Before start 100% electronic, paper t CO2/TJ e Before start 100% electronic, paper MW m monthly 100% electronic, paper - e Before start 100% paper in a lab. Estimated : coal – 18.69 GJ/t; heavy fuel oil – 40 GJ/t; natural gas – 33.84 GJ/1000m3 estimated : coal – 0.98; heavy fuel oil – 0.99; natural gas – 0.995. estimated : coal – 98 tCO2/TJ; heavy fuel oil – 77 tCO2/TJ natural gas – 56 tCO2/TJ Cumulative value; planned to be 6 500 000 MW/year Estimated: 3.6 GJ per MW D.1.1.2. Description of formulae used to estimate project emissions (for each gas, source etc.; emissions in units of CO2 equivalent): 12 http://www.ipcc-nggip.iges.or.jp/public/gl/invs6a.htm This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 19 >> The Project emission is being calculated as follows: PEy = COEFyp * AELPyp The emission coefficient of tons of CO2 per GJ of energy produced in a project scenario is calculated by formula: COEFyp = Σ (Fiyp * NCViyp * OXIDiyp * EFiyp) / AELP yp *r Where COEFyp – emission coefficient of each GJ of the energy produced in the project scenario in tons of CO2 per GJ; Fiyp – the amount of the fuel i consumed in year y in the project scenario in tons or cubic meters; NCViyp – net caloric value of the fuel i consumed in year y in the project scenario; OXIDiyp – oxidation factor of the fuel i in year y; EFiyp – emission factor of the fuel i consumed in year y in the project scenario; AELPyp – the amount of the electricity produced annually in year y in the project scenario. r – the coefficient to calculate MW into GJ; D.1.1.3. Relevant data necessary for determining the baseline of anthropogenic emissions of greenhouse gases by sources within the project boundary, and how such data will be collected and archived: ID number (Please use numbers to ease crossreferencing to D.2.) B1 BE Data variable Source of data Data unit Measured (m), calculated (c), estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment Baseline emission monitoring t of CO2 eq c Before start 100% electronic, paper Calculated by formulae in chapter D.1.1.4., see below This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 20 B2 COEFb B3 ACEb B4 AELPb B5 Fiyb B6 NCVib B7 OXIDiyb Emission coefficient of the energy produced in a baseline scenario Annual CO2 emission in a baseline scenario (average for 2006 - 2007) Annual electricity produced in a baseline scenario (average for 2006 - 2007) The amount of fuel i consumed for energy production in year y in a baseline scenario The net caloric value of the fuel i (average for 2006 - 2007) monitoring t CO2/GJ c Before start 100% electronic, paper Calculated by formulae in chapter D.1.1.4., see below Historical data t of CO2 eq c Before start 100% electronic, paper Calculated by formulae in chapter D.1.1.4., see below Historical data GJ c Before start 100% electronic, paper Historical data Scales, gas meter, fuel meter t or m3 m Before start 100% electronic, paper Historical data Lab analysis, data from the fuel supplier GJ per t or MJ per m3 c Before start 100% electronic, paper Oxidation factor of the fuel i in year y IPCC Guidelines for RGGI e Before start 100% electronic, paper estimated : coal – 18.69GJ/t; heavy fuel oil – 40GJ/t; natural gas – 33.84GJ/1000m3 estimated : coal – 0.98; heavy fuel oil – 0.99; natural gas – 0.995. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 21 B8 EFiyb Emission factor of the fuel i in the baseline scenario IPCC Guidelines for RGGI e Before start 100% electronic, paper estimated : coal – 98 tCO2/TJ; heavy fuel oil – 77 tCO2/TJ natural gas – 56 tCO2/TJ D.1.1.4. Description of formulae used to estimate baseline emissions (for each gas, source etc.; emissions in units of CO2 equivalent): >> The Baseline emission is being calculated for the situation, when the emission coefficient of the energy generated remains the same as if there were no reconstruction or rehabilitation of the equipment of the TPP. As it was mentioned before, the amount of the generated energy does not depend on the station equipment, but mainly on the demand on the energy market. The TPP works with the full load very rarely. That is why the Baseline emission is being calculated as follows: BEy = COEFb * AELPyp,* r Where: COEFb – emission coefficient of each GJ of the energy produced in the baseline in tons of CO2 per GJ; AELPyp - the amount of the electricity produced annually in year y in the project scenario. The emission coefficient of tons of CO2 per GJ of energy produced in a baseline scenario (average for 2006 - 2007) is calculated by formula: COEFb = ACEb / AELPb * r, Where: COEFb – emission coefficient of each GJ of the energy produced in the baseline scenario in tons of CO2 per GJ; ACEb – annual CO2 emission in a baseline scenario (average for 2006 - 2007); AELPb – the amount of the electricity produced annually in year y in the baseline scenario (average for 2006 - 2007). The average CO2 emission in a baseline scenario (2006 - 2007) is being calculated using the formula; ACEb = Σ (Fiyb * NCViyb * OXIDiyb * EFiyb) / 2 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 22 Fiyb – the amount of the fuel i consumed in year y in the baseline scenario in tons or cubic meters; NCViyb – net caloric value of the fuel i consumed in year y in the baseline scenario; OXIDiyb – oxidation factor of the fuel i in year y; EFiyb – emission factor of the fuel i consumed in year y in the baseline scenario; D. 1.2. Option 2 – Direct monitoring of emission reductions from the project (values should be consistent with those in section E.): This section left blank. No direct monitoring expected. D.1.2.1. Data to be collected in order to monitor emission reductions from the project, and how these data will be archived: ID number (Please use numbers to ease crossreferencing to D.2.) Data variable Source of data Data unit Measured (m), calculated (c), estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment See sec. D.1.2. D.1.2.2. Description of formulae used to calculate emission reductions from the project (for each gas, source etc.; emissions/emission reductions in units of CO2 equivalent): >> See sec. D.1.2. D.1.3. Treatment of leakage in the monitoring plan: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 23 D.1.3.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project: ID number (Please use numbers to ease crossreferencing to D.2.) L1 LCH4, y L2 LCH4, y coal L3 LCH4, ynatural gas L4 LCH4, yheavy fuel oil L5 Fcoal,y,project L6 Fcoal,y,baseline Data variable Source of data Data unit Measured (m), calculated (c), estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) Comment Leakage emissions through fugitive CH4 emissions in year y monitoring t of CO2 eq c monthly 100% electronic, paper Calculated by formulae in chapter D.1.3.2., see below Leakage from the coal usage in year y monitoring t of CO2 eq c monthly 100% electronic, paper Leakage from the natural gas consumption in year y monitoring t of CO2 eq c monthly 100% electronic, paper Calculated by formulae in chapter D.1.3.2., see below Calculated by formulae in chapter D.1.3.2., see below Leakage from the heavy fuel oil consumption in year y monitoring t of CO2 eq c monthly 100% electronic, paper The amount of coal consumed in year y in a project situation the amount of coal consumed in year y in a baseline Scales t m monthly 100% electronic, paper Calculated by formulae in chapter D.1.3.2., see below The meters measure the amount of fuel used in a real time Historical data t m Before start 100% electronic, paper Historical data This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 24 situation L7 DCH4 L8 GWPCH4 L9 EF upstream CH4coal L10 Fnatural gas,y,project L11 EF upstream CH4natural gas L12 NCVnatural gas Density of the methane IPCC Guidelines for RGGI t / 1 000 000 m3 e Before start 100% electronic, paper Global warming potential of methane The emission factor for upstream fugitive methane emissions from production The amount of the natural gas consumed in year y in a project situation The emission factor for upstream fugitive methane emissions from production of the natural gas. IPCC Guidelines for RGGI t of CO2 eq / t CH4 e Before start 100% electronic, paper e Before start 100% electronic, paper Estimated 22.2 m3 CH4 / tonne m Monthly 100% electronic, paper The meters measure the amount of fuel used in a real time e Before start 100% electronic, paper Estimated: 1283.4 t / PJ Net caloric value of the natural gas Lab analysis, data from the fuel supplier e Before start 100% electronic, paper The net caloric value is checked in a lab. IPCC Guidelines for RGGI Gas meter m3 IPCC Guidelines for RGGI MJ per m3 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. Estimated: 0.67 t CH4 / 1000 000 m3 Estimated 21 JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 25 L13 Fnatural gas,y,baseline L14 Fheavy fuel oil,y,project L15 EF upstream CH4 heavy fuel oil L16 NCVheavy fuel oil L17 Fheavy fuel oil,y,baseline The amount of the natural gas consumed in year y in a baseline situation The amount of heavy fuel oil consumed in year y in a project situation The emission factor for upstream fugitive methane emissions from production of the heavy fuel oil. Historical data m3 m Before start 100% electronic, paper Historical data Fuel meter t m Monthly 100% electronic, paper The meters measure the amount of fuel used in a real time e Before start 100% electronic, paper Estimated: 567.6 t / PJ Net caloric value of heavy fuel oil Lab analysis, data from the fuel supplier Historical data GJ per t e Before start 100% electronic, paper t m Before start 100% electronic, paper The net caloric value is checked in a lab. Historical data The amount of heavy fuel oil consumed in year y in a baseline situation IPCC Guidelines for RGGI This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 26 D.1.3.2. Description of formulae used to estimate leakage (for each gas, source etc.; emissions in units of CO2 equivalent): >> Leakage emissions through fugitive CH4 emissions comprise mainly fugitive CH4 emissions from fuel production Leakage needs to be determined for each fuel consumed in the plant in the baseline as well as in the project situation. Leakage is calculated as follows: LCH4, y = LCH4, y coal + LCH4, ynatural gas + LCH4, yheavy fuel oil Leakage from the coal usage: LCH4, y coal = [(Fcoal,y,project * EF upstream CH4) – (Fcoal,y,baseline * EF upstream CH4)] * DCH4 * GWPCH4, Where: LCH4, y coal - leakage from the coal usage Fcoal,y,project - the amount of coal consumed in year y in project situation; EF upstream CH4 - emission factor for upstream fugitive methane emissions from production of coal. Estimated as 22.2 m3 / tonne according to IPCC Guidelines for RGGI; Fcoal,y,baseline - the amount of coal consumed in year y in baseline situation; DCH4 – density of the methane; GWPCH4 - global warming potential of methane according to IPCC Guidelines for RGGI; The following data are used to calculate leakage emissions: Fcoal,y,project -3 987 455.2 tons of the coal; EF upstream CH4 coal - 22.2 m3 / tonne; Fcoal,y,baseline - 3 749 695.5 tons of coal; DCH4 – 0.67 t / 1 000 000 m3; GWPCH4 – 21. Leakage from the natural gas consumption: LCH4, ynatural gas = [(Fnatural gas,y,project * NCVnatural gas * EF upstream CH4) – (Fnatural gas,y,baseline * NCVnatural gas * EF upstream CH4)] * GWPCH4, This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 27 Where: LCH4, ynatural gas - leakage from the natural gas consumption; Fnatural gas,y,project - the amount of natural gas consumed in year y in project situation; EF upstream CH4 natural gas - emission factor for upstream fugitive methane emissions from production of the natural gas. Estimated as 1.2834 t / TJ according to IPCC Guidelines for RGGI (0.5676(oil and gas production) + 0.7158(natural gas processing, transmission and distribution)); NCVnatural gas – net caloric value of the natural gas; Fnatural gas,y,baseline - the amount of the natural gas consumed in year y in baseline situation; GWPCH4 - global warming potential of methane according to IPCC Guidelines for RGGI; The following data are used to calculate leakage emissions: Fnatural gas,y,project - 4 667 581 m3; EF upstream CH4 natural gas - 1283.4 t / PJ; NCVnatural gas – 33.97 MJ / m3; Fnatural gas,y,baseline - 2 322 645 m3; GWPCH4 – 21. Leakage from the heavy fuel oil consumption: LCH4, yheavy fuel oil = [(Fheavy fuel oil,y,project * NCVheavy fuel oil * EF upstream CH4) – (Fheavy fuel oil,y,baseline * NCVheavy fuel oil * EF upstream CH4)] * GWPCH4, Where: LCH4, yheavy fuel oil - leakage from the heavy fuel oil consumption; Fheavy fuel oil,y,project - the amount of heavy fuel oil consumed in year y in project situation; EF upstream CH4 heavy fuel oil - emission factor for upstream fugitive methane emissions from production of the heavy fuel oil. Estimated as 0.5676 t / TJ according to IPCC Guidelines for RGGI; NCVheavy fuel oil – net caloric value of the heavy fuel oil; Fheavy fuel oil,y,baseline - the amount of the heavy fuel oil consumed in year y in baseline situation; GWPCH4 - global warming potential of methane according to IPCC Guidelines for RGGI; The following data are used to calculate leakage emissions: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 28 Fheavy fuel oil,y,project - 0 m3; EF upstream CH4 heavy fuel oil - 0.5676 t / PJ; NCVheavy fuel oil – 39.81 GJ/ t; Fheavy fuel oil,y,baseline - 33081.5 t; GWPCH4 – 21. LCH4, y = 74.34 + 2.14 – 15.77 = 60.71 tons of CO2 per year. D.1.4. Description of formulae used to estimate emission reductions for the project (for each gas, source etc.; emissions/emission reductions in units of CO2 equivalent): >> The emission reductions achieved during the project period are calculated as a difference between annual baseline emission and annual project emission. It is shown by the formula: ERy = BEy – PEy – LCH4, y, Where: ERy – emission reductions achieved by the project activity in year y; BEy – baseline CO2 emission in year y; PEy – project CO2 emission in year y; LCH4, y - leakage emissions through fugitive CH4 emissions. D.1.5. Where applicable, in accordance with procedures as required by the host Party, information on the collection and archiving of information on the environmental impacts of the project: >> For the purposes of the safe and reliable operation and monitoring of the installed equipment the quality control and quality assurance measures are implemented on the TPP in accordance with the current legislation and requirements. According to these requirements of the quality control system regular servicing and test mode of the instrumentation is provided. All the measurement equipment is being regularly calibrated. The information of the calibration is This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 29 being stored and to be checked by the independent entity annually. The check for the data accuracy and calculation of the emission reductions shall be made and collected monthly. D.2. Quality control (QC) and quality assurance (QA) procedures undertaken for data monitored: Data (Indicate table and ID number) P4 Fiyp The amount of fuel used for energy production Uncertainty level of data (high/medium/low) Explain QA/QC procedures planned for these data, or why such procedures are not necessary. Low The data from the belt-conveyer weigher (for coal) are controlled after installation and regularly controlled and calibrated in accordance with the service instruction of the producer. All defects should be rectified with the consequent calibration. The gas meter is controlled and calibrated by the gas supplying company in accordance with it’s procedures and current legislation. The defected meter should be replaced. P8 AELPyp The annual electricity production Low The data from the electric counters are controlled after installation and regularly controlled and calibrated in accordance with the service instruction of the producer and the legislation requirements. The defected counter should be replaced. Regardless of Monitoring Plan all the data from the meters and weighs should be controlled daily. In addition to the parameters mentioned, other data should be read to control the operation of the equipment. Any defective equipment should be replaced or repaired as soon as possible. According to the current Ukrainian laws and requirements the measurement of the pollution of dust, soot, NOx, CO, etc. should be monitored and documented. D.3. Please describe the operational and management structure that the project operator will apply in implementing the monitoring plan: >> The project is implemented on the TPP in accordance with technical standards of Ukraine. All the equipment has monitoring and security equipment according to the national energy sector requirements. All the data, needed for the monitoring is collected in the production department of the TPP and accumulated in a specific standard table called “3-tech Form” and also the data from the meters will be collected. The main parameters of the Station are measured by the meters and shown in graphs in a real time. The data of the fuel consumption is measured and collected for the whole TPP and the energy produced is measured per each This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 30 unit separately. This allows to measure the average emission for all the TPP and to see the influence of the Project activity while some of the units are out of operation. All the starts and stops of each Unit are monitored and also shown in the technical documentation alongside with the working time hours for each Unit of the TPP. That means, that even when some unit will be out of operation, all the measures will continue to be collected and the overall project emission will still be calculated. All the calibrations and checks of the equipment are also reflected in the Form. All the measures will be made by the Production Department of the TPP and will be send to the project manager of the “ELTA” company, who will collect the data, calculate emission, emission reductions and create a monitoring report. All the data shall be stored during all lifetime of the project. The project manager from the «ELTA» company checks the reliability of the data and calculates emission reductions at least monthly. The project manager of the “ELTA” prepares the annual report to be confirmed by the Independent Entity. The Project operator - «Skhidenergo», provides all the maintenance work and services. The Project manager of the “ELTA” company provides monitoring and data collection. D.4. Name of person(s)/entity(ies) establishing the monitoring plan: >> Date of the completion of the Monitoring plan: 15.08.2009 Mr. Maksym Rogovoy ELTA JSC 14/3, Stadionny proezd str. Kharkov, Ukraine 61091 Telephone: + 38 050 5950311 Fax: + 38 057 392 0045 M_rogovoy@elta.kharkov.ua This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 31 SECTION E. Estimation of greenhouse gas emission reductions E.1. Estimated project emissions: >> The following calculations are based on the baseline determined in the B.2. Section. The energy produced after the rehabilitation has a lower emission factor compared to the one before the rehabilitation. Higher efficiency of the Unit #5 reflects in lower fuel consumption per GJ of the energy produced by the TPP. We calculate emission per MW of the electricity produced. Table E-1. Estimated project emissions Year Emission Year Emission E.2. >> Estimated project emissions [t CO2 eq / year], first crediting period 2009 2010 2011 2012 2 143 483 6 377 150 6 281 600 6 187 350 Estimated project emissions [t CO2 eq / year], second crediting period 2013 2014 2015 2016 2017 2018 2019 6 094 6 094 6 003 6 003 5 913 5 913 5 913 400 400 400 400 050 050 050 2020 5 913 050 Estimated leakage: Year Emission Year Emission Estimated leakage [t CO2 eq / year], first crediting period 2009 2010 2011 20.24 60.71 60.71 Estimated leakage [t CO2 eq / year], second crediting period 2013 2014 2015 2016 2017 2018 2019 60.71 60.71 60.71 60.71 60.71 60.71 60.71 2012 60.71 2020 60.71 E.3. The sum of E.1. and E.2.: >> Table E-3. Estimated project emissions and leakages Estimated project emissions and leakage [t CO2 eq / year], first crediting period Year 2009 2010 2011 2012 Emission 2 143 503.24 6 377 210.71 6 281 660.71 6 187 410.71 Estimated project emissions and leakage [t CO2 eq / year], second crediting period Year 2013 2014 2015 2016 2017 2018 2019 2020 Emission 6 094 6 094 6 003 6 003 5 913 5 913 5 913 5 913 460.71 460.71 460.71 460.71 110.71 110.71 110.71 110.71 E.4. >> Estimated baseline emissions: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 32 Table E-4. Estimated baseline emissions Year Emission Year Emission Estimated baseline emissions [t CO2 eq / year], first crediting period 2009 2010 2011 2012 2 218 667 6 656 000 6 656 000 6 656 000 Estimated baseline emissions [t CO2 eq / year], second crediting period 2013 2014 2015 2016 2017 2018 2019 6 656 6 656 6 656 6 656 6 656 6 656 6 656 000 000 000 000 000 000 000 2020 6 656 000 E.5. Difference between E.4. and E.3. representing the emission reductions of the project: >> Table E-5. Emission reductions of the project Estimated project emission reductions [t CO2 eq / year], first crediting period Year 2009 2010 2011 2012 Emission reductions 75 162.76 278 789.29 374 339.29 468 589.29 Estimated project emission reductions [t CO2 eq / year], second crediting period Year 2013 2014 2015 2016 2017 2018 2019 2020 Emission reductions 561 561 652 652 742 742 742 742 539.61 539.29 539.29 539.29 889.29 889.29 889.29 889.29 E.6. Table providing values obtained when applying formulae above: >> Table E-6. Project emissions and emission reductions of the project period (2009 - 2017), first crediting period (2009 - 2012) and second crediting period (2013 - 2017). Year Estimated project Estimated leakage Estimated baseline Estimated emissions (tons of (tons of CO2 emissions (tons of emission CO2 equivalent) equivalent) CO2 equivalent) reductions (tons of CO2 equivalent) First crediting period 2009 2010 2011 2012 Total of first period (tons of CO2 equivalent) Second crediting period 2013 2014 2015 2016 2017 2 143 483 6 377 150 6 281 600 6 187 350 20 949 583 20.24 60.71 60.71 60.71 202.37 2 218 667 6 656 000 6 656 000 6 656 000 22 186 667 75 162.76 278 789.29 374 339.29 468 589.29 1 196 880.63 6 094 400 6 094 400 6 003 400 6 003 400 5 913 050 60.71 60.71 60.71 60.71 60.71 6 656 000 6 656 000 6 656 000 6 656 000 6 656 000 561 539.61 561 539.29 652 539.29 652 539.29 742 889.29 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 33 2018 2019 2020 Total of second period (tons of CO2 equivalent) Total of first and second periods (tons of CO2 equivalent) 5 913 050 5 913 050 5 913 050 47 847 800 60.71 60.71 60.71 485.68 6 656 000 6 656 000 6 656 000 53 248 000 742 889.29 742 889.29 742 889.29 5 399 714.32 68 797 383 688.05 75 434 667 6 596 594.95 SECTION F. Environmental impacts F.1. Documentation on the analysis of the environmental impacts of the project, including transboundary impacts, in accordance with procedures as determined by the host Party: >> The rehabilitation of each Unit of the TPP consists the description of the Environmental impacts. For today only the Unit #5 has been developed. The environmental impacts of the Project are described in the Explanatory Note “Draft Environmental Impact Assessment of the Project of the Unit#5 of the Kurakhovskaya TPP”, which is the part of the Technical and Economical Substantiation of the Project. The «Donbas-Azovye XXI Vek» Company prepared the Note in year 2009. F.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to supporting documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: >> The environmental impacts of the project are not significant and there are no procedures required by Ukraine for this Project. SECTION G. Stakeholders’ comments G.1. Information on stakeholders’ comments on the project, as appropriate: >> The Project was presented to the Government of Ukraine and to the Local Authorities as a Project Idea and, later, as the Technical Documentation. The Government and Local Authorities has approved the Project. The Letter of Endorsement has been received from the National Environmental Investments Agency of Ukraine. The The information concerning the Project was published in the local Kurakhovo town newspaper "Марьинская нива" №3 dated 17.02.08 and in the magazine «НАШ ВЫБОР» №2 (14) ' 2008 (http://www.nash-vybor.com.ua/claus.php?id=322). All the comments received were positive. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 34 Annex 1 CONTACT INFORMATION ON PROJECT PARTICIPANTS PROJECT OWNER Organisation: Street/P.O.Box: Building: City: State/Region: Postal code: Country: Phone: Fax: E-mail: URL: Represented by: Title: Salutation: Last name: Middle name: First name: Department: Phone (direct): Fax (direct): Mobile: Personal e-mail: Skhidenergo ltd. Shevchenko blvd. 11 Donetsk 83055 Ukraine +38 (062) 381 05 53 +38 (062) 381 05 53 www.dtek.com.ua Magera Yuriy Director for Economic and Finance Mister Magera Mikhayloich Yuriy +38 062 381 0751 +38 062 381 0558 +38 050 472 3153 Ymagera@vostok.dtek.com.ua This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 35 PROJECT DEVELOPER Organisation: Street/P.O.Box: Building: City: State/Region: Postal code: Country: Phone: Fax: E-mail: URL: Represented by: Title: Salutation: Last name: Middle name: First name: Department: Phone (direct): Fax (direct): Mobile: Personal e-mail: ELTA JSC Stadionny proezd 14/3 Kharkov 61091 Ukraine +38 (057) 713 4102 +38 (057) 392 0045 elta@elta.kharkov.ua www.elta.kherkov.ua Rogovoy Maksym Deputy Director Mister Rogovoy Ivanovich Maksym +38 062 713 41 02 +38 050 595 0311 m_rogovoy@elta.kharkov.ua This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 36 Annex 2 BASELINE INFORMATION The Project emission reductions are achieved due to lowering of the fuel consumption per MW of the energy produced. The rehabilitation of the equipment allows increasing the efficiency of the fuel usage by the TPP. The efficiency of the TPP, which is planned to be rehabilitated, is increasing. This allows lowering the emission coefficient of the energy produced from 1,024 t CO2/MW (0.284 t CO2 per GJ) (COEFb) to 0,9097 t CO2/MW (0.253 t CO2 per GJ) (COEFp). In calculations the data from the IPCC Guidelines for NGGI used: The emission factors of the fuel used (EFiy) are 26.8 t C/TJ (98 t CO2/TJ) for coal; 15.3 t C/TJ (56 t CO2/TJ) for natural gas: 21.1 t C/TJ (77 t CO2/TJ) for heavy fuel oil. The oxidation coefficient (OXIDi) of the fuel used is 0.98 for coal, 0.995 for natural gas and 0.99 for heavy fuel oil. For calculations of the baseline emissions the historical data of the years 2006 and 2007 was used. These years the Unit #5 was in operation and this data allows seeing the average parameters of the TPP in the baseline scenario: The net caloric value (NCViy) of the fuel used by the TPP is being monitored instantly. For the purpose of the calculation the historical data for the last two years was used: coal – 18.35 GJ/ton; natural gas – 33.97 MJ/m3; heavy fuel oil – 39.81 GJ/ton. Annual electricity production by the TPP: AELP2006 = 6 396 192 MW; AELP2007 = 7 000 735 MW. Annual coal consumption: Fcoal 2006 = 3 613 375 t with NCVcoal 2006 = 4 458 Kcal/kg Fcoal 2007 = 3 886 016 t with NCVcoal 2007 = 4 479 Kcal/kg Annual oil consumption: Foil 2006 = 32 956 t with NCVoil 2006 = 9 583 Kcal/kg Foil 2007 = 33 207 t with NCVoil 2007 = 9 517 Kcal/kg Annual gas consumption: Fgas 2006 = 37 854 m3 with NCVgas 2006 = 8 060 Kcal/m3 Fgas 2007 = 4 607 435 m3 with NCVgas 2007 = 8 120 Kcal/kg. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. JOINT IMPLEMENTATION PROJECT DESIGN DOCUMENT FORM - Version 01 Joint Implementation Supervisory Committee page 37 Annex 3 MONITORING PLAN As emission reductions from the project are determined by the amount of each fuel used, and the produced electricity by the power plant a monitoring system to monitor the fuel usage and the electricity production implemented on the TPP will be used. All the data will be documented and stored in electronic and paper view during the lifetime of the project. Meter reading and calculation of the emission reductions is carried out on a monthly basis. The meters will be examined, tested, debugged and calibrated every, lead sealed after checking and accepting and must not unseal without the permission. As the instruments are calibrated and marked at regular intervals, the accuracy of measurement can be assured at all times. The fuel usage system involves measuring of the coal, natural gas, and heavy fuel oil consumption. All measurements will use calibrated measurement equipment. Coal supply metering is provided by two belt-conveyer weighers ВК-230-1400 with the accuracy class 0.5 ÷ 1 and relative precision of ± 0.5 ÷ 1%. The natural gas supply metering to the project is provided using the meter “Лидер-ВГ-1” with the accuracy class 0.2 and relative precision of ± 0.2%. The meter will be subject to regular (in accordance with stipulation of the meter supplier) maintenance and testing to ensure accuracy. The readings will be double checked by the gas supply company. The electricity measuring system involves several meters, which are located at the power plant side on the transformer substation. The types of meters are АIR – 4AL – CB-T (20 units) and АIR – 4ОL – CУT (39 units) with accuracy of 0.2 %. The heat supply to the Kurakhovo town network is measured by the ergometer Type 125 «А» with the accuracy class 2.5 and relative precision of ± 1%. ----- This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.