E2653
CHINA POWER TRANSFORMER EFFICIENCY
PROGRAM
Environmental Management Plan
The State Grid Corporation of China
June 10, 2010
1
Table of Contents
1. Introduction ..................................................................................................................... 3
2.
Project Description ...................................................................................................... 3
2.1
Project Scope ........................................................................................................ 3
2.2
Project Locations .................................................................................................. 4
2.3
Major Project Activities and Institutional Arrangements .................................... 5
3.
Major Chinese Laws and Regulations Applicable to the Project ................................ 8
4.
Major Impacts and Mitigation Plan ............................................................................. 9
5.
Implementation Arrangements for Environmental Management and
Monitoring and Reporting Procedures…...…………………………………………..15
6.
Public Consultation………………………………………………………………....15
Annex 1. Names of the participants in the public consultation ........................................ 18
2
1. Introduction
In order to reduce power distribution losses, improve energy efficiency and reduce CO2
emissions, the State Grid Corporation of China (hereinafter referred to as SGCC) intend
to implement the SGCC Transformer Efficiency Program. This Program is to replace low
efficiency in-service 10 kV distribution transformers (Type S7 or Type S8 transformers 1)
with high efficiency 10 kV distribution transformers (whose no-load losses are compliant
with or better than Type S11 transformers) to reduce the losses of transformers of the
power distribution system of SGCC. Currently there are around 120,000 inefficient
S7/S8transformers serving the distribution network of SGCC. Most of these S7/S8
transformers were installed in late 80s and 90s and still have remaining lifetime of at least
5 years.
The purpose of this Environmental Management Plan (EMP) is to be used to provide
guidance to related SGCC departments and subsidiaries which will implement the
proposed program for the environmental management and monitoring process to be
followed in implementing individual sub-projects under the Program. This EMP defines
the contents, procedures and institutional responsibilities for environmental management
of the sub-projects. The purpose of the EMP is to ensure the transformer replacement
program will be carried out in compliance with both Chinese environmental laws and
regulations SGCCs’ policies and procedures for environment, health and safety and/or
best international practice in accordance with World Bank/IFC Environment, Health and
Safety Guidelines.
2.
Project Description
2.1
Project Scope
The proposed project is to replace low efficiency in-service 10 kV distribution
transformers (Type S7 or Type S8 transformers) with high efficiency 10 kV distribution
transformers (whose no-load losses are compliant with or better than Type S11
transformers) to reduce the losses of transformers of the power distribution system of
SGCC. It will replace around 120,000 inefficient S7/S8 distribution transformers with
S11 transformers or transformers of higher efficiency than S11 from 2010 to 2012 in
power grids in 26 provincial subsidiary grid companies (GCs) owned by SGCC. The
program will be implemented from mid 2010 to end of 2012.
All the transformers to be eligible for replacement will be:

10 kV (or 6 kV) distribution transformers;
1
S7, S8, S11 and S15 are the model numbers of distribution transformers in China, the
higher number of the series, the more advanced the technology and the higher the
efficiency.
3





Type 7 or type 8
Manufactured after 1985 (including 1985) and before January 31, 1999;
Free of any current oil leaks or other insulation problems;
Located at a site which currently meets environmental, health and safety
requirements of the People’s Republic of China and related SGCC environment,
health and safety provisions as determined by SGCCs’ due diligence review and;
Free of any oils containing polychlorinated biphenyls (PCBs)
All the new transformers to be installed to replace the existing inefficient transformers
will be:
 Dry types, modern oil immersed, and/or other modern types of transformers
manufactured to meet current related Chinese and related international industrial
standards, as well as related environment, health and safety regulations in China
 S11 efficiency of better
 Free of PCBs.
As the trustee of the Danish Carbon Fund (DCF) and Spanish Carbon Fund (SCF), the
World Bank intends to purchase Certified Emission Reductions (CERs) to be generated
by the China Transformer Efficiency Project. ERPA payments will be made annually
based on actual CERs verified by a Designated Operational Entity (DOE), an
independent auditing company, and issued by the CDM Executive Board which
supervises the CDM for UNFCCC Parties.
2.2
Project Locations
The geographical boundary of the program is the 25 provinces within China as listed
below.
Table 1: Project Locations
Regional grid
Dominant provinces
Sub-total
Northeast
Liaoning Province, Jilin Province, Heilongjiang
4
China Region Province, Inner Mongolia Autonomous Region，
North China
Beijing Municipality, Tianjin Municipality, Hebei
5
Region
Province, Shanxi Province, Shandong Province
East China
Shanghai Municipality, Jiangsu Province, Zhejiang
5
Region
Province, Anhui Province, Fujian Province
Central China Henan Province, Hubei Province, Hunan Province,
6
Region
Jiangxi Province, Sichuan Province, Chongqing
Municipality
Northwest
Shaanxi Province, Gansu Province, Qinghai
5
China Region Province, Ningxia Hui Autonomous Region,
Xinjiang Uygur Autonomous Region
25
Total
4
The project will be implemented along selected 10 kV distribution lines owned and
operated by the SGCC where eligible inefficient 10 kV distribution transformers are
installed, and places where the replaced transformers will be storage, and dismantled
These places are owned by SGCC or by licensed contractors. No land acquisitions, either
permanent or temporarily, are required.
2.3
Major Project Activities and Institutional Arrangements
Replacement of old transformers with new transformers
The replacement includes disassembling existing low efficiency transformers and
installing of new highly efficient transformers in the distribution lines within designated
areas. As the proposed project will only replace existing distribution transformers with
more efficient transformers in SGCC's 10 kV distribution systems and there are no civil
works required for the proposed project.
The typical sizes of 10 kV distribution transformers are in the range of one (1) to two (2)
cubic meters. The replacement of these transformers is very simple and straight forward.
Usually, an estimated two to four-hour power shutoff of nearby districts is required.
Because the replacement activities will take place in the existing 10 kV power
distribution systems, it does not require temporary occupation or permanent acquisition
of additional land. Therefore, no involuntary resettlement is required. In addition, no
significant noise is anticipated to occur, or dust to be produced in the replacement
process.
5
Fig. 1. Replacement of 10 kV Distribution Transformers
Storage and Disposal
The replaced the old transformers will be transported to special storages either owned by
SGCC directly or owned and operated by qualified and licensed transformer disposers.
Again, in either case, related regulations/procedures of the Government and SGCC will
be followed.
The disposal of the old transformers will be carried out by licensed special waste
recycling companies. Usually, the replaced old transformers will be sold by the SGCC’s
provincial subsidiary companies to licensed recycling companies where old transformers
will be dismantled: some materials will be recovered and recycled (e.g. metals, oils etc.)
and the remaining materials (porcelain, glass etc.) will be disposed.
Since all the transformers involved were made in China after mid 1980s, there are no
issues of disposal of polychlorinated biphenyls (PCBs). Experience also indicated that the
possibility of oil leakages of the distribution transformers to be replaced is extremely low.
In fact, transformers with oil leakage will not be qualified for the project 2 . The
2
Transformers with at least a five year remaining life under normal operation conditions
will be qualified for the CDM project. Transformers that are currently leaking oil will not
qualify for the project.
6
transformer oils are basically petroleum products. It can be recycled and re-used. No
significant secondary pollution is expected.
Fig 2. Dismantling of Old 10 kV Distribution Transformers
Implementation Institutional Arrangements
SGCC is the implementation agency. SGCC headquarters will play a leading and
coordinating role in the project implementation. It will be responsible for planning,
subproject approval and be the focus point of the company in dealing with the World
Bank and related government agencies. SGCC has prepared <<The SGCC Distribution
Transformer Program Management Measures>> in order to ensure the effective
implementation.
The 25 provincial grid companies (GCs) of SGCC will be responsible for identifying and
implementing the subprojects in their own service areas. Within each province, the
various municipal and county-level operation divisions of the provincial GC will be
responsible for replacing the transformers identified eligible under this program.
The old transformers will be dismantled and disposed by licensed contractors. The
contractors will be recruited by each provincial company through a competitive bidding
process in according to SGCC’s policy. All the contractors will be regulated by relevant
local authorities, especially in the areas of waste treatment, recycling and disposal. These
7
contractors should also have special licenses which allow them to dismantle and disposal
electric power supply equipment, such as power transformers.
SGCC has well established institutional arrangements internally to deal with
environmental, health, safety and social issues related to its operation and development.
At each level of the company (headquarter, provincial and municipal), there are
departments or divisions responsible for environmental, health and safety management
and monitoring. These business units are staffed with fully or partially specialized
environmental protection personnel who will directly provide technical supports to the
project implementation.
3.
Major Chinese Laws and Regulations Applicable to the Project
Laws, regulations and SGCC Provisions applicable to the project are listed below.
Area
Level
Project Related Regulations
Safety and General EHS
Table 2: Environment, Health, Safety and Emergency Specifications
State
Safe Production Act of the Peoples Republic of China (PRC)
SGCC Power Construction Safety, Health and Environmental Management
Regulation [2003] No.168
SGCC
SGCC Environmental Assessment for Power Construction Safety and
Health Management Practices (Pilot) [2004] No. 488
SGCC Operational Safety Supervision Provisions [2003] No. 408
Emergency
Preparedness and Response
Emergency Preparedness Act of PRC [Presidential Order, No. 69, 2007]
State
Guidelines for Enterprises to Develop Emergency Response Plan for Work
Place Accidents [2006]
Sector
SGCC Emergency Response Plan [2007] No. 98
SGCC Emergency Management Regulations 〔 2007〕 No. 110
SGCC
Construction Hazard Prevention and Emergency Response [2004] No. 264
Environmental
State
Environmental Protection Law of PRC
SGCC Environmental Management Approach
SGCC–
General
SGCC Environmental Protection Requirements
SGC Environmental Protection Evaluation Methods
SGCC–
Construction
SGCC Provisions for Energy-Saving and Environmental Protection
Technical Supervision
SGCC Interim Measures for Power Grid Project Construction Environmental
8
Area
Level
Project Related Regulations
Impact Assessment
SGCC Interim Measures for Power Grid Project Construction Completion
Environmental Protection Approval
SGCC Power Grid Construction Project Management Guideline for Soil and
Water Conservation
Dismantling and Disposal
Solid Waste Treatment and Pollution Prevention Law of the People’s
Republic of China, Dec. 29, 2004
State
SGCC
Resource Recycling and Reuse Management Regulation. The Ministry of
Commerce, the National Development and Reform Commission; the
Ministry of Public Security, the Ministry of Construction, the National
Administration of Industrial and Trade, the Environment Protection
Administration, May 1, 2007
SGCC Equipment and Material Transportation and Storage Management
Policy;
SGCC Old Equipment Disposal Management Policy.
Local
governments
Resource Recycling and Reuse Management Regulations stipulated by
various local governments.
9
4.
Major Impacts, Mitigation and Monitoring Plans
A. MITIGATION PLAN
Issue
Mitigating
Measure
Cost of
Mitigation
(If Substantial)
Responsibility
Start
End
At beginning of
replacement
At end of
replacement
At beginning of
replacement
At end of
replacement
At beginning of
replacement
At end of
replacement
Replacement of the Transformers
Dust
Audible Noise
Traffic
Disruption
The construction normally doesn’t result in
dust pollution and doesn’t require special
preventive measures. If necessary, the
construction site will be sprinkled with
water, especially during hot, dry and/or
windy conditions..
Construction activities will be performed
only during working hours (8 AM to 6
PM). If construction activities is close to
residential areas and have to be performed
before or after the specified time limits, the
local society must be notified at least one
week in advance.
Conduct work during periods of light
traffic (after rush hour) and to avoid peak
time of electricity consumption
Minor
Municipal or county-level
( Grid Companies) GCs
Minor
Municipal or county-level
GCs
Minor
Municipal or county-level
GCs
Identify alternate traffic route(s) and place
clearly marked signs
10
Issue
Soil
Contamination
caused by oil
leaks.
Non-toxic solid
wastes (metal,
packing and used
equipment, etc.)
Occupational Health
and Safety(OHS)
&
Emergency
Preparedness and
Response (EPR)
Mitigating
Measure
Cost of
Mitigation
(If Substantial)
Given the small sizes of the transformers,
soil contamination from oil leaks, if any,
will be light.
In accordance with SGCC standard
procedures, if there is light contamination,
soil will be removed by Grid Company
placed in plastic bags and transported to
sites approved by environmental
authorities.
To be removed to places specially allocated
for landfills or recycle, approved by local
authorities
Minor
SGCC has well established OHS
procedures and emergency response
system (see Table 2).This system is
consistent with IFC Guidelines (General
EHS and Electric Power Transmission and
Distribution). This system will be in effect
during removal of old transformers. No
additional OHS and EPR requirements are
needed
Minor
Responsibility
Municipal or county-level
GCs
Minor
Municipal or county-level
GCs
Municipal or county-level
GCs
Start
End
At beginning of
replacement
At end of
replacement
In the beginning
of construction
After completion
of construction
At beginning of
replacement
At end of
replacement
At beginning of
Storage
After the
replaced
transformers are
handed over to
the licensed
contractor for
disposal
At the end of the
disposal.
Storage and Disposal of the Old Transformers
Solid Waste and
liquid
Management for
old transformer
Old transformers will be transported to
special storage facilities either owned by
SGCC directly or owned and operated by
qualified and licensed transformer
disposers. The storage facilities will have a
concrete base or heavy plastic sheet as the
base and designed to contain and collect
any oil leaks. The facilities will be locked.
Eventually, the old transformers will be
collected by a licensed contractor for
disposal for scrap recycling.
Minor and part of
the operation
budget.
11
Provincial, Municipal or
county-level GCs
Issue
Mitigating
Measure
Cost of
Mitigation
(If Substantial)
Responsibility
Bidding documents will specify that the
contractor should have valid business
license for dismantling and disposal of old
transformer and that the waste materials
would be transported to sites officially
approved by the local municipal authorities
or delivered to companies that are licensed
to recycle any recovered oils or scrap
materials. All the disposal and recycling
activities will follow “Solid Waste
Treatment and Pollution Prevention Law
of the People’s Republic of China” and
related Resource Recycling and Reuse
Management Regulations stipulated by
various government agencies.
Medium, and part
of the operation
costs of the
contractors.
Qualified and licensed
contractors.
Start
End
At beginning of
dismantling.
Operation of the New Transformers
Occupational Health
and Safety(OHS)
&
Emergency
Preparedness and
Response (EPR)
SGCC has well established environment
and OHS procedures and emergency
response system. This system is consistent
with IFC Guidelines (General EHS and
Electric Power Transmission and
Distribution).The SGCC system will be in
effect during installation and operation of
the new transformers. No additional OHS
and EPR requirements are needed
Minor
12
Provincial, Municipal or
county-level GCs
At beginning of
operation
Continuous
B. MONITORING PLAN
What parameter is to
Where
How
When
be monitored?
is the parameter
to be
monitored?
is the parameter to be
monitored/ type of
monitoring
equipment?
is the parameter to
be monitoredfrequency of
measurement or
continuous?
Monitoring
Cost
Responsibility
Start
End
At beginning of
replacement
At end of
replacement
At beginning of
replacement
At end of
replacement
At beginning of
replacement
At end of
replacement
At end of
dismantling
What is the cost
of equipment or
contractor
charges to
perform
monitoring
Replacement of Old Transformers
Dust
Audible Noise
Traffic flow
conditions
Non-toxic solid
wastes (metal,
packing and used
equipment, etc.)
Soil contamination
Occupational Health
and Safety(OHS)
& Emergency
At project site,
along
equipment/mate
rials delivery
routes
Construction
site
At site of detour
At construction
site
At equipment
storage location
and/or
construction
site
At construction
site
Visual
Daily
Small
Municipal or countylevel GCs
Observation that
specified construction
times are obeyed
Visual
During replacement
When detour is
established
Small
Visual
Prior to removal of
scrap transformer
Small
Municipal or countylevel GCs
At beginning of
dismantling
Visual
Weekly
Small
Municipal or countylevel GCs
At beginning of
dismantling
Visual
Daily
Small
Municipal or countylevel GCs
At beginning of
replacement
13
Small
Municipal or countylevel GCs
Municipal or countylevel GCs
At end of
dismantling
At end of
replacement
Preparedness and
Response (EPR)
Storage and Disposal of the Old Transformers
Condition of
SGCC used
transformer storage
site
SGCC used
transformer
storage site
Checking contractors
qualifications, including
license validation.
In SGCC’s
Office, but may
require site
visits to the
facilities of the
potential
contractors.
Checking the
dismantling and
disposal processes of
the contractors on the
spot
In the
contractors’
facilities
Visual Used transformers
placed on concrete
base. Site locked. Oil
leaks properly
contained and
collected
Weekly
Small
Provincial,
Municipal or countylevel GCs
At beginning of
storage
At end of storage
Visual
During the bidding
evaluation.
Small
Provincial,
Municipal or countylevel GCs
At the
beginning of
the bid
evaluation
At the end of the
bid evaluation
Visual
At least once
small
Provincial,
Municipal or countylevel GCs
At the
beginning of
the dismantling
and disposal
At the end of the
dismantling and
disposal
During
maintenance
During
maintenance
Operation of Replacement Transformer
Occupational Health
and Safety(OHS)
&
Emergency
Preparedness and
Response (EPR)
At transformer
site
Visual
During maintenance
Small
Provincial,
Municipal or countylevel GCs
14
5.
Implementation Arrangements for Environmental Management And Monitoring and
Reporting Procedures
Table 3: Institutional Arrangements for Implementation
15
Action
Institutional Responsibility
Monitoring Data Collection
(From Monitoring Plan)
Replacement of Old Transformers
Municipal Operation division of provincial GC
/installation contractor
Storage and Disposal of Old Transformers
Municipal Operation division of provincial GC /qualified
contractor
Operation of Replaced Transformers
Municipal Operation division of provincial GC
Data Analysis
Replacement of Old Transformers
Municipal Operation division of provincial GC
/installation contractor
Storage and Disposal of Old Transformers
Municipal Operation division of provincial GC /qualified
contractor
Operation of Replaced Transformers
Environmental Report Preparation
Replacement of Old Transformers
Municipal Operation division of provincial GC
Storage and Disposal of Old Transformers
Municipal Operation division of provincial GC /qualified
contractor
Operation of Replaced Transformers
Municipal Operation division of provincial GC
Municipal Operation division of provincial GC
/installation contractor
Environmental Report Receipt/Frequency (Who receives report/how often)
Replacement of Old Transformers
Environment reports are to be prepared annually and sent to the project team in the HQ of SGCC
Storage and Disposal of Old Transformers
Environment reports are to be prepared semi-annually and sent to the project team in the HQ of SGCC
Operation of Replaced Transformers
Environment reports are to be prepared annually and sent to the project team in the HQ of SGCC
Management Action
Replacement of Old Transformers
Storage and Disposal of Old Transformers
Municipal Operation division of provincial GC
/installation contractor
Municipal Operation division of provincial GC /qualified
contractor
Operation of Replaced Transformers
Municipal Operation division of provincial GC
16
6.
Public Consultation
Public consultation was conducted on July 8, 2009 in Beijing and on July 9 and 10, 2009 in
Shenyang City of the Liaoning Province where subprojects have been identified. Before the
public consultation, an announcement was posted in the State Grid News, on June 25, 2009. The
State Grid News is an accredited newspaper publicly issued both paper and internet editions in
China and the covers all the project areas.
Representatives of the SGCC (implementing agency), government (the Ministry of
Environment), affected communities, manufacturers and academics participated in the public
consultation.
During the public consultation, the representatives of SGCC introduced the project design and
the draft environmental management plan and SGCC’s relevant environment, health and safety
regulations and policies to the participants. All of participants believed that the negative
environmental and social impacts of the proposed project, by nature, are very limited and
manageable. No significant issues were raised.
17
Annex 1. Names of the participants in the public consultation
Institutions
State Grid Corporation of
China
State Grid Corporation of
China
International Equipment and
Technology Co. of SGCC
International Equipment and
Technology Co. of SGCC
International Equipment and
Technology Co. of SGCC
International Equipment and
Technology Co. of SGCC
International Equipment and
Technology Co. of SGCC
International Equipment and
Technology Co. of SGCC
International Equipment and
Technology Co. of SGCC
Name and Title
ZHOU, Xinfeng
Vice-Division Chief of the
Department of Production and
Technology
LIN, Xujun
Engineer of the Department of
Production and Technology
SUN, Meng
Deputy Director, Dept.of
Development and Planning
DUAN, Xiaohua
Deputy Director, Dept. of
Technical Support
XU, Shengting
International Dept.
GUO, Xuejian
Dept. of Technical Support
MENG, Zhongwei
Dept.of Development and
Planning
XIE, Shaofen
Dept.of Development and
Planning
GUO, Xin
Invitation by
Date of
Invitation
Telephone
2009.07.03
Telephone
2009.07.03
Telephone
2009.07.03
Telephone
2009.07.03
Telephone
Telephone
2009.07.03
2009.07.03
Telephone
2009.07.03
Telephone
2009.07.03
Telephone
2009.07.03
ZHU, Min
Engineer for Distribution
System
JIANG Shan
PAN, Tao
Telephone
Telephone
Telephone
2009.07.03
2009.07.03
MI, Chuan
Deputy Division Chief
Letter of
Invitation
2009.07.06
The Ministry of
Environment
XIAO, Xuezhi
International Cooperation
Center
Letter of
Invitation
2009.07.06
Community Representative
WU, Xuequn
Municipal Power Grid
Company of Beijing
Consultant
Consultant
Energy Research Institution
of the National
Development and Reform
Commission
Community Representative
LI, Hongqing
18
2009.07.06
Public
2009.07.06
Announcement
Public
Announcement 2009.07.06
Institutions
Community Representative
Community Representative
Name and Title
Invitation by
Date of
Invitation
WANG, Hongsong
Public
Announcement 2009.07.06
SONG, Jinkao
Public
Announcement 2009.07.06
Xinjiang Transformer Plant
ZHANG, Yinzhong
Letter of
Invitation
2009.07.03
Huapeng Transformer
Company of Jiansu Province
Tian Wei Shun Da
Transformer Company of
Baoding
Da Chi Electrical
Equipment Company of
Shandong Province
DI, Jingxiang
Deputy General manager
Letter of
Invitation
2009.07.03
SHANG, Huikai
Technical Specialist
Letter of
Invitation
2009.07.03
JIA, Xianghe
Beijing Chief Representative
Letter of
Invitation
2009.07.03
CHENG, Huachao
Distribution Transformer
Specialist
Letter of
Invitation
2009.07.03
China Electric Power
Research Institute
19