Aquarius Hydroelectric Project
(A small-scale CDM project)
Project Design Document
Host country requirements:

Brazil is a non-Annex 1 country

Brazil has ratified the Kyoto Protocol last August 28, 2002

Establishment of Designated National Authority
A.1. Title of the project activity:
Aquarius hydroelectric project
A.2 Description of the project activity:

The objective of the project activity is to generate clean
electricity using hydroelectric resources and sell it to the
regional power grid.

The project is expected to have an installed capacity of 4.2 MW,
and will utilize the water of the Correntes river. It will be a runof-river project with no dam or flooding.

The Aquarius project started in the 1980s with some structures
already in place, like, water intake channel, partial excavation of
the conduction channel, bases for blocks of anchorage of the
penstock and ramp.
A.2 Description of the project activity (cont.):

The project was reactivated in 1999 and was linked to the 180
MW Ponte de Pedra hydropower plant.

The total height difference (head) between the headpond and
the turbine/generator is approximately 60 meters. The dam
takes advantage of the existing natural fall and the inlet water is
at 254.3 m above sea level.

The project will require 350 m conduction channel and a 160 m
long penstock, and two turbines will be installed.
A.2 Description of the project activity (cont.):
The project will deliver about 25,750 MWh/year to the Brazilian
power system.
Since the power plant is located at the end of the CEMAT
(Centralis Eletricas Matogrossenses) distribution system,
another important function of the Aquarius project is to improve
the quality of power supply in the region.
A.3 Project Participants:
Host Party:
Brazil
Project Developers: Companhia Agricola Sonora
Estancia – CASE
PDD Consultants: MGM International, Inc. and
NEGAWATT – Projtos, Engenhariae
Comercio Ltda.
Annex 1 country participant: Electric Power Dev. Co. Ltd
A.4.1 Technical Description of the project activity:
A.4.1 Location of the project activity:
A.4.1.1. Host country: Brazil
A.4.1.2. Region: Latin America
A.4.1.3. City/Town: Itiquira Municipality (right margin of the
Correntes river) in the Mato Grosso State and Sonora
Municipality (left margin of the Correntes river), Mato
Grosso do Sul State
A.4.1.4 The project will be located in the central-western region of
Brazil (latitude: 17°37‘S and longtitude 54°55’W), on the
Correntes river.
Map of Brazil
A.4.2. Type and category(ies) and technology of
project activity:
Type
: 1 – Renewable Energy Projects
Category: D – Renewable Electricity Generation for a
Grid
A.4.3 Brief Statement on how anthropogenic
emissions of greenhouse gas (GHGs) by sources
are to be reduced by the proposed CDM project
activity:
It is expected that the project activity will serve to displace fossilfired plants with clean technology provided by hydroelectricity.
The baseline analysis (Section B) estimates that the Project would
displace:
7 -year (2005-2012)
21-year
30-year life span
104,594 tonnes of CO2
313,782 tonnes of CO2
448,260 tonnes of CO2
A.4.4 Public funding of the project activity:
No public funding, including official development assistance is
involved in financing the project.
A.4.5 Confirmation that the small-scale project
activity is not a debundled component of a larger
project activity:
Aquarius is not part of a larger debundled CDM activity.
B.1 Title and reference for the project category
applicable to the project activity:
Type 1 – Renewable Energy Projects
Category 1.D – Renewable Electricity Generation for a
Grid
B.2 Project category applicable to the project
activity:
The baseline is the kWh produced by the renewable generating
unit multiplied by an emission coefficient (measured in kgCO2/kWh)
calculated in a transparent and conservative manner as:
The average of the “approximate operating margin” and the
“build margin”, where:
The “approximate operating margin” is the weighted average
emissions (in kgCO2/kWh) of all generating sources serving the
system, excluding hydro, geothermal, wind, low-cost biomass,
nuclear and solar generation;
(i)The “build margin” is the weighted average emissions (in
kgCO2/kWh) of recent capacity additions to the system, defined as
the lower of most recent 20% of plants built or the 5 most recent
plants
B.3. Description of how the anthropogenic GHG
emissions by sources are reduced below those that
would have occurred in the absence of the
registered CDM project activity
•
Until mid 1990’s the electricity market was focused on large
hydroelectric power plants operated by the state;
•
1990s consumption increased by 49% while installed capacity
increased only by 35% requiring the use of stored energy in the
form of water in the reservoirs.
•
In 1995 onwards, international interest rate increased and
investment capacity of the state decreased;
•
The solution was privatization and liberalization of the market;
B.3. Description of how the anthropogenic… (cont.)
•
In year 2000, the power demand was 305.6 TWh with a
generation capacity of 67.7 GW; with a gross generation of
322.5 TWH;
•
The only alternatives were improved energy efficiency or a more
intensive use of existing plants;
•
Improved energy efficiency generated limited result;
•
Intensive use of existing plants was exploited;
•
The reservoirs were not able to meet the demand resulting to
power shortage in 2001;
•
In 2001 onwards, rationing was imposed to reduce consumption
by 20%
B.3. Description of how the anthropogenic… (cont.)
•
In 2000 the government launched the Thermal Electric Priority
Plan (PPT) to increase the share of thermal electricity;
The government promoted the building of thermal power plants
based on imported natural gas;
•
This was a significant shift from basically hydroelectric system to
thermal power plants;
•
The Wind Energy Incentive and Alternative Energy Sources
Incentive Program foresee increase generation capacity by
3300 MW with other renewable energy other than hydro, offering
long-term contracts with special conditions, lower transmission
costs, lower interest rates from banks.
•
There are still uncertainties on the benefits of these programs.
B.4 Description of the project boundary for the
project activity:
Dashed line indicates project boundary
Construction
of Equipment
Auxiliary
energy
Materials
transportation
Construction
of the plant
Power Plant
(prod. Of
energy)
Correntes river
(water supply)
Injection of
elec. to the grid
Grid (trans
and dist.)
End
users
B.5 Details of the baseline and its development:
B.5.1 The methodology used is option (a) of Appendix B of the
Simplified Methodology developed based on the following
steps:
1.
Determination of expected annual electricity production, found
by multiplying the installed capacity (4.2 MW) by the plant
capacity factor (70%) by 8,760 (number of hours in one year)
= 25,755 MWh per year.
Capacity factor: average of natural gas and hydro plants in 2001
Equation 1:
Annual Plant Capacity = Plant Capacity x Plant Capacity x Annual Hours
Output (MWh/yr)
(MW)
Factor
8,760 hours
B.5 Details of the baseline and its development
(cont.):
2. Determine power plants serving the national and regional
system (excluding hydro, geothermal, wind, nuclear, low-cost
biomass, and solar generation). The Sistema de Informacoes
Empresariais do Setor de Energia Electrica, Boletim Semestral
Sintese 2001, MME-ANEEL-ELETROBRAS provides data on
the electricty generation of its power plants. For the study,
power plants located in the Center-West region of
Brazil,comprising the states of Goias, Mato Grosso and Mato
Grosso do Sul were considered.
B.5 details of the baseline and its development
(cont.):
3.
Emission factors (kg CO2 per kWh electricity) for thermal
power plants are obtained from natural gas and diesel
consumption, and corresponding power generation of power
plants in the West Central (WC) region during 2001, as
reported in SIESEE. Additional data were taken from Revised
1996 (IPCC Guidelines for National Greenhouse Gas
Inventories, Volume 3: GHG Inventory Reference Manual
B.5 details of the baseline and its development
(cont.):
4.
Plant conversion efficiencies (conversion of thermal energy
into electricity), obtained from the official data, were checked
with estimates of the World Bank Greenhouse Gas
Assessment Handbook, 1998.
5.
Annual emissions of carbon dioxide are calculated by
multiplying electricity generation by the corresponding
emission factors (by fuel and technology)
B.5.2. Date of completing the final draft of this baseline:
28/02/2003
B.5 details of the baseline and its development
(cont.):
B.5.3 Name of person/entity determining the baseline:
Dr. Gautam S. Duff and Ing. Ivana Cepon, MGM
International, Inc. Ayabucho 1435, 9B C1111AAM Buenos
Aires Argentina
C.1 Duration of the project activity:
C.1.1 Starting date of the project activity:
Construction is expected to begin in mid 2003. Duration of the
construction is 17 months. Generation is expected for early
2005.
C.1.2 Expected operational lifetime of the project activity
30 years
C.2 Choice of the crediting period and related
information:
C.2.1. Renewable crediting period (at most seven (7) years per
period)
C.2.1.1 Starting date of the first crediting period is
(dd/mm/yyyy) : 01/07/02005
C.2.1.2 Length of the first crediting period
7 years
C.2.2 Fixed crediting period (at most ten (10) years:
Not selected.
D.1. Name and reference of approved methodology
applied to the project activity:
According to option (a) of Type 1, Category D of CDM small-scale
project activity categories contained in Appendix B of the simplified
M & P for CDM small-scale project activities, monitoring shall
consist of metering the electricity generated by the renewable
technology (hydroelectricity).
D.2 Justification of the choice of the methodology
and why it is applicable to the project activity:
Monitoring has been chosen as it is suggested in the last proposal
on “Indicative simplified baseline and monitoring methodologies for
selected small-scale CDM project activity categories”.
Data collection is compatible with the baseline methodology
described in Section B.5
D.3 Data to be monitored:
•
•
•
•
•
•
•
•
•
•
ID Number
Data type
Data variable
Data Unit
Measured; Calculated; Estimated
Recoding Frequency
Proportion of data to be monitored
How will the data be archived? (electronic or paper)
For how long is archived date to be kept?
Comments: Source of data
D.4 Name of person/entity determining the
monitoring methodology:
Dr. Gautam S. Duff and Ing. Ivana Cepon, MGM International,
Inc. Ayabucho 1435, 9B C1111AAM Buenos Aires Argentina
E.1 Formulae used:
E.1.1 Selected formulae as provided in appendix B:
Not applicable
E.1.2 Description of formulae when not provided in appendix B:
E.1.2.1 Describe the formulae used to estimate
anthropogenic emissions by sources of greenhouse
gases due to the project activity within the project
boundary:
Zero since hydroelectric power is clean
technology.
E.1 Formulae used (cont.):
E.1.2.2 Describe the formulae used to estimate leakage due
to the project activity,where required for the applicable
project category in appendix B to the simplified
modalities and procedures for small-scale CDM
project activities.
Not applicable.
E.1.2.3 The sum of E.1.2.1 and E.1.2.2 represents the project
activity emissions:
No emissions at all.
E. 1 Formulae used cont.:
E.2.4 Describe the formulae used to estimate anthropogenic emissions
by sources of greenhouse gases in the baseline using the baseline
methodology for the applicable project category in appendix B to the
simplified modalities and procedures for small-scale CDM project
activities.
Baseline emissions, E baseline are given by:
E baseline (tonneCO2/yr) = [E] baseline (kgCO2/kWh) x CG(kWh/yr)
-----------------------------------------------1000kg / tonne
Where CG stands for Aquarius electricity generation (Equation 1).
E. 1 Formulae used cont.:
E.1.2.5 Difference between E.1.2.4 and E.1.2.3 represents the emission
reductions due to the project activity during the given period.
Total baseline emission = 14,942 tonnesCO2/year
–
Hydro power emission
= 0
Emission Reductions
= 14,942 tonnesCO2/year
E.2 Table providing values obtained when applying
formulae above:
Build margin estimation:
[E] build margin = 0.310 kg CO2/kWh
Operating margin estimation:
[E] operating margin = 0.851d kg CO2/kWh
Baseline estimation:
[E] baseline = ([E] build margin + [E] operating margin)/2 = 0.580 kg CO2/kWh
E.2 Table providing values obtained when applying
formulae above (cont.):
E baseline = 0.580 kgCO2/kWh x 25,755 MWh/yr
--------------------------------------------------------------------------
1000 kg/tonne
E
baseline =
14,942 tonnes CO2/year
Total emissions reductions:
1 year
7 years
21 years
30 years
14,942
104,594
313,782
448,260
tonnes CO2
tonnes CO2
tonnes CO2
tonnes CO2
F.1 If required by the host party, documentation on
analysis of the environmental impacts of the project
activity:
The proposed project is a run-of-river hydropower plant, which
involves no dam construction and no flooding, and thus no
deforestation. Therefore, the environmental impact is very small
compared to other types of power generation alternatives.
G.1 Stakeholders comments
The municipality of Sonora, where the project would be located, is
a major stakeholder in the project. They were asked to give an
opinion on the project. A letter of support was attached to the PDD.
Another stakeholder is the Brazilian Institute of Environment and
Renewable Natural Resources (IBAMA). IBAMA issued an
environmental license.
PDD was also posted on the website for comments of other
stakeholders and the public in general. Deadline for comments is
May 23, 2003.
Related links:
 http://www.dnv.com/certification/ClimateChange/
 http://unfccc.int/cdm
 http://prototypecarbonfund.org
Marina T. Mallare
Climate Change Information Center
Manila Observatory
Ateneo de Manila University
Tel No. 426-59-21
Fax No. 426-08-47
E-mail: marina@observatory.ph