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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM Executive Board page 1

CLEAN DEVELOPMENT MECHANISM


PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 02 - in effect as of: 1 July 2004)

CONTENTS

A. General description of project activity

B. Application of a baseline methodology

C. Duration of the project activity / Crediting period

D. Application of a monitoring methodology and plan

E. Estimation of GHG emissions by sources

F. Environmental impacts

G. Stakeholders comments

Annexes

Annex 1: Contact information on participants in project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

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SECTION A. General description of project activity

A.1 Title of the project activity:


>>
El Guanillo wind farm in Dominican Republic
Version number of the document: 1
Date of the document: 10/01/2006

A.2. Description of the project activity:


>>
The project activity comprises the construction and operation of the first wind farm connected to the
National Grid System of the Dominican Republic (Sistema Elctrico Nacional Interconectado, hereinafter
SENI).

The fundamental objective of the project activity is to reduce CO2 net emissions associated with the
electricity dispatch to SENI, by avoiding electricity generation otherwise produced at fossil fuel-fired
power plants and replacing it with renewable electricity.

Project activity is being developed by Parques Elicos del Caribe, S.A., (hereinafter PECASA), a
company in which the Spanish company Gamesa holds a 57% interest. This company is currently in the
process of identifying potential investors to obtain the necessary financing for the project. Based on
Gamesas previous experience in similar projects in Europe, the optimal financing structure of project
activity is 35% own capital and 65% external financing.

PECASA currently holds all licenses required to commence work on the wind farm:
- PECASA holds a definitive electricity generation contract concession, in accordance with regulations
established in General Electricity Law 125-01 of the Dominican Republic (from article 67 onwards).
This process commenced on 21 May 2001 with the request for electrical work exploration rights, in
accordance with regulations applied prior to the current General Electricity law.
- An environmental license to construct the wind farm with a maximum power output of 109MW was
awarded by the environmental subsecretary of the State Department of Environment and Natural
Resources on 23 January 2004.
- Certification, from 5 March 2004, of the Superintendencia de Electricidad regarding fulfilment of
requirements of the short circuit study to interconnect the wind farm with SENI.
- Authorisation from the Civil Aeronautics Department and the Military Cartography Institute
regarding technical matters and the location of each of the 129 wind turbines planned on 20 July
2004.
- Certificate of approval from the state secretary of tourism on 6 August 2004.

As described in the previous paragraph, the only issue pending is identification of potential investors and
financial entities to finance the project in accordance with the indicated optimal financing structure.

Project activity comprises three groups of wind turbines, distributed as shown in Table 1.

Name Power Number of wind Estimated annual Estimated annual

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(MW) turbines operation hours generation (MWh)


Buen Hombre 23.80 28 2,676 63,689
La Maboa 12.75 15 2,829 36,070
El Guanillo 28.05 33 2,700 75,735
Total 64.60 76 175,494

The project activity includes substantial contributions to sustainable development in the Dominican
Republic in addition to its fundamental objective to reduce greenhouse gas emissions. These contributions
comprise the following:

- The electricity generation sector in the Dominican Republic is characterised by supply shortages and
by considerable reliance on electricity imports (82% of electricity delivered to SENI in 2004 was
generated in fossil fuel-fired power plants, the fuel for which must be imported). Fuel price
vulnerability and supply shortages have resulted in a deficient electricity supply, which is
characterised by frequent power cuts and high rates. This wind power project will moderately reduce
imports of primary energy from abroad and actively contribute to diversification in the electrical
generation sector, reduce reliance on imported energy, increase supply, stabilise electricity rates and
increase confidence in the system.

Figure 1: Composition of generation by type of plant (January December 2004).


Source: Coordination body of the SENI. Annual operational notes and statistics 2004. (www.oc.org.do )

- Transfer of technology and knowledge: the wind farm will bring the latest wind turbine technology to
the country. Commencement of this project will also require considerable investment in training wind
farm personnel (creation of highly skilled labour force) and the grid system operator (Coordination
body of the SENI), who is currently not experiences in wind power generation unit integration in
electrical system coordination.
- As described in the previous paragraph, project activity will create direct and indirect (contractors)
employment as well as permanent positions for wind farm operation and maintenance and temporary
positions during the wind farm construction period.
- Project activity would be compatible with the traditional activities currently carried out on the land,
as only small plots of land are leased for the wind turbine installations. This creates a two-fold social-
environmental advantage as landowners, who remain as proprietors of the land, generate additional
income from this secondary activity, which can, in turn, be reinvested in traditional activities.

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A.3. Project participants:


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Name of Party Private and/or public entity(ies) Kindly indicate if the Party involved
involved) (host Project participants (as applicable) wishes to be considered as project
indicates a host participant (Yes/No)
Party)
Dominican Parques Elicos del Caribe, S.A. No
Republic (host (PECASA)
country)
Spain Gamesa Energa, S.A. No

The private entities indicated above are authorised by the corresponding party to participate in CDM
project activity, in accordance with article 33 of the CDM modes and procedures manual. Written
authorisation from the respective national authorities designated for the CDM, in accordance with annex 6
of the report from the sixteenth meeting of the CDM executive council is included- (clarification of
written authorisation).
In accordance with the most recent information published by UNFCCC regarding signature dates and
ratification of the Kyoto Protocol, which was ratified and signed by the Dominican Republic (host
country) on 12 February 2002 and by Spain (country in Annex I) on 31 May 2002.

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:


>>
A.4.1.1. Host Party(ies):
>>
Dominican Republic.

A.4.1.2. Region/State/Province etc.:


>>
Montecristi

A.4.1.3. City/Town/Community etc:


>>
Villa Vsquez.

A.4.1.4. Detail of physical location, including information allowing the


unique identification of this project activity (maximum one page):
>>
Project activity is located on three sites in the Villa Vsquez municipality of the Montecristi region, in the
north east of the Dominican Republic. The specific location of the project is El Copey within the areas
determined with the following UTM coordinates:

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Coordinates X Coordinates Y
40,000 99,000
47,000 99,000
54,000 95,000
58,000 95,000
64,000 90,000
64,000 89,000
57,000 87,000
48,000 88,000
46,000 95,000

Figure 2: Location of project activity.


Source: Prepared from regional and municipal map from the electoral council of the Dominican Republic
www.jce.do/Infoelecciones2004/Municipios.pdf

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A.4.2. Category(ies) of project activity:


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Sectoral Scope 1. Energy industries (Renewable/non-renewable sources).
Project Activity: Grid-connected electricity generation from renewable sources.

A.4.3. Technology to be employed by the project activity:


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The activity of the project would result in a transfer of technology to the electricity sector of the
Dominican Republic. This transfer will take place during all stages of the project, as follows:

- Construction, installation and commissioning of the wind turbines. According to the wind
measurement carried out, it has been determined that turbines G52 and G58, manufactured by
Gamesa with a capacity of 850 kW per wind turbine, three-bladed rotor and asynchronous four pole
generator, will be the best technological option to take full advantage of the existing resources. The
turbine will have 690V and the transformer will have 690V/20kV. Gamesa is the second
manufacturer of wind turbines in the world and has global experience in the installation of more than
2,000 MW of wind-generated energy, therefore ensuring an optimum completion of the wind farm,
reliability and maximum performance of the existing wind resources. The average availability of
these wind turbines is proven to be over 95%. The wind farm is estimated to generate approximately
175,494 MWh/year, and will operate for 2,717 net equivalent hours per year.
- Electricity infrastructure installation, including a 14 km connection line with SENI at 138 kV. The
process will require Coordination body of the SENI participation to which Gamesa will act as
consultant on wind energy dispatch operation in the system, as this will be the first wind farm
connected to SENI.
- Finally, it would be necessary to train a group of specialised technicians in the operation of the wind
farm and the maintenance of the wind turbines and the electricity infrastructure.

A.4.4. Brief explanation of how the anthropogenic emissions of anthropogenic greenhouse


gas (GHGs) by sources are to be reduced by the proposed CDM project activity, including why the
emission reductions would not occur in the absence of the proposed project activity, taking into
account national and/or sector policies and circumstances:
>>
As indicated in section A.2., 82% of the electricity dispatched to the SENI in 2004 was generated by
thermoelectric power plants.

According to the latest SENI Expansion Plan for 2004-2020, entrusted by the Comisin Nacional de la
Energa of the Dominican Republic to OLADE (Organizacin Latinoamericana de Energa)1, the increase
in electricity demand in the Dominican Republic between 2004 and 2020 will be in the order of 150% in
an average growth scenario.

This study indicates that the portfolio of future generation projects proposed by generation companies for
the period considered has a total capacity of 4,577 MW, of which 89% relate to thermoelectric projects
and 11% to hydroelectric projects. Therefore, the document considers that any expansion of SENI would
be based on the development of new thermoelectric power plants, and hydroelectric power plants are not

1
www.cne.gov.do/pdffiles/propuestaexpansion.pdf

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considered as options for covering the increase in electricity demand, due to factors including the time
required for construction.

The following charts present the possible SENI expansion schemes for each of the three technological
scenarios included in the Expansion Plan: priority for natural gas technologies, priority for coal, and for
the base case (as a combination of natural gas and coal). All these are based on the scenario of average
growth in demand.

Baseline Scenario Equipment (MW)


2004-2010 2011-2015 2016-2020
Hydroelectric 0 0 0
Diesel Engine Bunker C 50 -61 0
Coal 798 375 775
Diesel -293 -71 -165
Natural Gas 300 600 600
Total 755 843 1210

Natural Gas Scenario Equipment (MW)


2004-2010 2011-2015 2016-2020
Hydroelectric 0 0 0
Diesel Engine Bunker C -50 61 0
Coal 148 0 0
Diesel -293 -71 -165
Natural Gas 1200 1000 1300
Total 1005 868 1135

Carbon Scenario Equipment (MW)


2004-2010 2011-2015 2016-2020
Hydroelectric 0 0 0
Diesel Engine Bunker C -50 -61 0
Coal 1073 1000 1100
Diesel -293 -71 -165
Natural Gas 300 0 0
Total 1030 868 935

The possible entry into operation of new hydroelectric power plants has only been considered in
performance of sensitivity analyses in relation to the calculation of the average cost of kWh in each of the
scenarios.

Therefore, at present the SENI is a system which is not dominated by low cost/must run resources, and
this situation is not likely to change during the crediting period of the proposed project activity, according
to the Expansion Plan for 2004-2020.

The applicable regulation of Law 125-01, Electricity General defines the SENI operation code, which is
determined by three types of programming: long term, medium term and short term (weekly and daily).
For each daily program of operation, the electricity dispatch merit order is as follows:

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- Run of river hydroelectric power plants have dispatch priority throughout the day; these are baseload
plants.
- Reservoir hydroelectric power plants dispatch during the hours with highest demand, as well as the
hours necessary for reasons of safety of the service or for regulation of the frequency or voltage.
- Thermoelectric power plants cover the demand not satisfied by hydroelectric power plants, following
a merit order based on the dispatch marginal cost.

In this SENI operation scheme, the project activity would dispatch renewable-source electricity with
priority over the thermoelectric power plants, given the absence of a fuel cost, which would lead to a
movement away from electricity generation through these power plants based on the use of fossil fuels,
specifically from those plants lowest in the order as they have the highest fuel costs.

The project activity would therefore reduce anthropogenic GHG emissions by approximately 115,879
tonnes of equivalent CO2 per year (see section E).

However, the countrys economic situation is an obstacle to private investment in the energy sector in
general. The absence of legislation to regulate and promote the development of renewable energy
projects specifically obstructs these types of projects. As a result, the proposed project activity cannot be
carried out, as it is not possible to obtain loans with acceptable interest rates and no institutional investors
can be found which are willing to participate. If the project activity does not proceed, the energy which
could be dispatched to the SENI would be provided by the generation sources which are lowest in the
merit order which, based on the SENI Expansion Plan, would largely consist of thermal plants using
fossil fuels.

GHG emission reductions have been calculated applying the approved consolidated methodology
ACM0002. The emission factor has been determined using the operating margin emission factor (utilising
method (c): dispatch data analysis operating margin) and the build margin emission factor of the SENI.

The emission of 1,158,787 tonnes of carbon dioxide is forecast to be avoided by means of the project
activity over the ten-year crediting period.

A.4.4.1. Estimated amount of emission reductions over the chosen crediting


period:
>>

Years Annual estimation of emission reductions in


tonnes of CO2 e
2007 (July-December) 47,546
2008 115,879
2009 115,879
2010 115,879
2011 115,879
2012 115,879
2013 115,879
2014 115,879
2015 115,879
2016 115,879
2017 (January-June) 68,333

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Total estimated reductions


1,158,787
(tonnes of CO2 e)
Total number of crediting years 10
Annual average over the crediting period of
115,879
estimated reductions (tonnes of CO2 e)

A.4.5. Public funding of the project activity:


>>

Public funding from Parties included in Annex I is not involved.

SECTION B. Application of a baseline methodology

B.1. Title and reference of the approved baseline methodology applied to the project activity:
>>
ACM0002. Consolidated baseline methodology for grid-connected electricity generation from
renewable sources.

B.1.1. Justification of the choice of the methodology and why it is applicable to the project
activity:
>>
The proposed project activity complies with all the requirements established for application of the
ACM002 consolidated methodology:
- Project activity for renewal source of electricity generation: wind farm.
- Connection to an electricity system: the electricity generated would be dispatched by the project
activity to the national electricity system (SENI).
- The scope of the project is clearly identified in terms of geographical location and its connection to
the electricity system (see figure 3).
- The information on system specifications (dispatch model, hourly generation of plants, dispatch merit
order and fuel consumption) is published on the webpage of the Coordination body of the SENI2.
This webpage does not present information on certain system plants and therefore certain
conservative simplifications have been made to enable the necessary calculations to be made:
- Type of fuel used by the following thermal generating units: Smith CC, Smith V, CESPM I, II
and III TG and Estrella del Norte. As a prudent simplification, these units have been considered
to use natural gas as fuel, as it has the lowest possible emission factor.
- Specific consumption of fuels (kg/kWh) for the following thermal generating units: Smith CC,
Smith V, Smith TG, Smith CA, CESPM I, II and III TG, Falcon III and Mitsubishi. As a prudent
simplification, these units have been considered to have the same specific consumption as the
SENI plant with the lowest specific consumption for each of the fuel types.
- In the cases of Estrella del Mar and San Pedro Vapor, as respective specific consumption was
known, Gas Oil No. 2 was taken as the fuel, as it best suited the public value of specific

2
http://www.oc.org.do

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consumption (which is expressed in kg/kWh, therefore, the fuel could not be natural gas,
consumption of which is expressed in MBTU/kWh).

Figure 3: Schematic Map of SENI.


Source: Coordination body of the SENI (http://www.oc.org.do)

B.2. Description of how the methodology is applied in the context of the project activity:
>>

The project activity does not involve the modification or extension of any existing plants. Therefore, in
the baseline scenario the forecast electricity generated from the project activity would derive from
operation of the plants currently connected to the system (operating margin) as well as operation of the
new plants to be connected to the system in the future (build margin).

A description is provided below of how the methodology selected for the project activity, that is, the
particular considerations that have been made for the application of the steps established by the
consolidated methodology ACM0002 for estimation of the baseline.

STEP 1: Calculate the Operating Margin emission factor (EFOM,y)

Of the four calculation options set out by the ACM0002 methodology, option (c), dispatch data analysis
(EFOM,DispatchData,y) has been selected, as the necessary data (dispatch merit order and hourly dispatch data)
is available for all the plants in electronic format and this is the priority calculation option:

1.1. Hourly generation-weighted average emissions per electricity unit of the set of power plants (n) in
the top 10% of the grid system dispatch order, calculated as:

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Fi,,n,h COEFi,n
i,n
EFDD,h=
GEN,n,h
n

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Step Assumptions Data sources

Determined ex-ante using hourly


dispatch data and dispatch merit order
for the most recent statistics (October
2004 October 2005).

All these data will be monitored ex-post


when the project is operating.
(http://www.oc.org.do).
Selection of set of plants (n)
There are four data gaps in the official Hourly dispatch data and
statistics: dispatch merit order
- 18/08/05, hour 9
- 19/08/05, hours 11 & 12
- 20/08/05, hour 12
These data gaps have been solved by
considering there are no generation; as a
result there is no influence in the
calculation.
Determined by multiplying the hourly
(http://www.oc.org.do)
Fuel consumption of each plant electricity generation by the fuel
Fuel consumption per
during each hour (Fi,,n,h) consumption per electricity unit
electricity unit
(kg/kWh)
Country-specific values,
Net calorific value
published by the CNE3.
CO2 emission coefficient of
Emission factor per unit of energy of the
fuels (COEFi,n) IPCC4 default values
fuels
Oxidation factor of the fuels IPCC4 default values
Determined ex-ante using dispatch data
for the most recent statistics (October
Hourly (n) plants generation (http://www.oc.org.do)
2004 October 2005). This data will be
(GEN,n,h) Hourly dispatch data
monitored ex-post when the project is
operating.

1.2. Emissions (tCO2) associated with the operating margin, calculated as:

EOM,y = EGh EFDD,h


h

Step Assumptions Data sources

3
Proposed margin on generation from the Dominican electricity sector. Prepared by the Organizacin
Latinoamericana de Energa (OLADE) for the Comisin Nacional de la Energa (CNE). January 2004.
4
IPCC directives for national inventories of greenhouse gases, revised 1996 version: Work Book.

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Step Assumptions Data sources


Estimated ex-ante using a simulation
model (hourly generation patterns
Generation of the project (in calculated from actual wind
Gamesa
MWh) in each hour h (EGh) measurements). This data will be
directly measured when the project is
operating.
Hourly generation-weighted
average emissions per
electricity unit of the set of
Determined as explained in paragraph
power plants (n) in the top 10% -
1.1.
of the grid system dispatch
order (EFDD,h)

1.3. Dispatch data OM emission factor, calculated as:

EOM,y
EFOM,DispatchData,y =
EGy

Step Assumptions Data sources


Emissions (tCO2) associated
Determined as explained in paragraph
with the operating margin -
1.2.
(EOM,y)
Estimated ex-ante using a simulation
model (hourly generation patterns
Generation of the project (in calculated from actual wind
Gamesa
MW) in year y measurements). These data will be
directly measured when the project is
operating.

1.4. No electricity system is connected to the project activity system (there are no international
connections with Haiti or connections with other systems within the same host country). Therefore,
calculation of the emission factor does not include any exports/imports.

STEP 2: Calculate the Build Margin emission factor (EFBM,y)

Option 1 has been selected for EFBM,y calculation (calculated ex-ante based on the most recent
information available on plants already built for sample group (m) at the time of PDD submission).

The Group of plants (m) is formed by the latest plants to enter the system, which taken as a whole have
dispatched at least 20% of the systems generation in the last 12 months for which information is
available.

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The latest plants to be incorporated in the SENI have been identified based on the information contained
in the annual accounts of the Coordination body of the SENI, where the new generation supply of each is
indicated. This information has been verified using official statistics of hourly generation per plant,
whereby the date of appearance of new units in dispatch records is corroborated. Appendix 3 includes a
table with the group of plants (m).

STEP 3: Calculate the baseline emission factor (EFy)

Combined emission factor is the weighted average of the EFOM,y and the EFBM,y. Default weight of 50% is
applied to the emission factors

EFy = 0.5 EFOM,y + 0.5 EFBM,y

As a fixed crediting period is selected, weighing will not be modified, according to the recommendations
included in Annex 8 to the 18th meeting report of the CDM Meth Panel (preliminary guidance for
OM/BM weighting in ACM0002 and other approved methodologies that use the combined margin
approach).

B.3. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered CDM project activity:
>>
Step 0. Preliminary screening based on the starting date of the project activity

Project participants do not wish to have the crediting period start prior to the registration of their project
activity.

Step 1. Identification of alternatives to the project activity consistent with current laws and
regulations

Sub-step 1a. Define alternatives to the project activity:

PECASA operates in the wind energy sector and is currently searching for credit entities and investors to
participate in the development of a wind farm.

The most realistic and credible alternative for the baseline of the promoter or a similar promoter would be
continuation of the current situation (i.e., not carrying out the project activity or any other alternative),
given that it is not likely that a wind energy promoter would consider fossil fuel generation.

Sub-step 1b. Enforcement of applicable laws and regulations:

The regulatory framework of the electricity generation sector is summarised below, as are the
implications for the project activity and the alternative scenario proposed:

Laws and Implications for project Implications for the alternative scenario (not
regulations activity carrying out the project activity)

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Laws and Implications for project Implications for the alternative scenario (not
regulations activity carrying out the project activity)
General Electricity The project activity complies The concession contract requires PECASA to
Law 125-01 and the with all applicable legal and execute the wind farm construction works.
Implementation regulatory requirements, However, non-compliance with this contract only
Regulation establish given that PECASA holds implies the loss of the concession (for example, as
that electricity the required concession reflected in the National Energy Commission
companies which permit. PECASA initiated letter of 18 October 2004). Accordingly, the
intend to operate an the administrative process in alternative scenario (non-execution of the project
electricity generation May 2001 by applying for activity) would be in compliance with applicable
business must electricity works operating laws and regulations.
request a definitive rights.
concession for the In the alternative scenario, electricity not
operation of generated by project activity would be dispatched
electricity works. to the SENI by existing plants (operating margin)
and by future plants (build margin). As operations
in existing plants and construction of new plants
are valid alternatives under applicable laws and
regulations, the alternative scenario is in
compliance with the regulatory framework for
electricity supply by existing or future SENI
plants.
Draft Law on According to unofficial The draft law would pose no obstacles to the
Incentives for the drafts obtained (revised alternative scenario.
Development of version of the National
Renewable Energy Energy Commission, dated
Sources 26 September 2003), wind
farms with overall installed
power of under 50MW
would be entitled to the
incentives established by the
Law. As the proposed project
activity would entail a total
power of 64MW, the project
would not be entitled to the
incentives set out in the draft
law.

Consequently, and in accordance with the tool for the demonstration and assessment of additionality, the
alterative scenario proposed is clearly in compliance with applicable laws and regulations.

Step 2. Investment analysis (not applicable)

Step 3. Barrier analysis

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Sub-step 3a. Identify barriers that would prevent the implementation of type of the proposed
project activity:

Based on experience acquired in Europe, the optimal financing structure for this type of project would be
35% through own capital and 65% through external financing (loans and investments).

To date, it has not been possible to finalise agreements for external financing of the project activity, as
investors and credit entities are concerned about the following risks:

Economic situation in the Dominican Republic:


Standard & Poors has classified the Dominican Republic as CCC for international loans, which is
defined as follows: an obligation rated 'CCC' is currently vulnerable to non-payment, and is dependent
upon favourable business, financial, and economic conditions for the obligor to meet its financial
commitment on the obligation. In the event of adverse business, financial, or economic conditions, the
obligor is not likely to have the capacity to meet its financial commitment on the obligation. This rating
was cited in the letter PECASA sent to the National Energy Commission on 14 January 2005 to justify
the difficulties in obtaining financing for the project, which caused PECASA to fail to comply with the
construction terms established in the concession contract.

In 2003 Gamesa requested a grant for a feasibility study from the Spanish Ministry of Economy and
Finance to analyse the proposed project activity. The Ministry did not grant financing for the feasibility
study due to the unfavourable investment conditions in the country, as evidenced in confidential
documentation held by Gamesa.

Situation of the electricity sector in the Dominican Republic:


Due to the difficulty in collecting from lower-income sectors, there is a high risk that energy distributed
would not be paid for in the Dominican Republic. According to the Corporacin Dominicana de
Electricidad, although available energy amounted to 9,464.4 GWh in 2000, only 5,324.9 GWh were
invoiced, for a relative loss of 43.74 %5. This situation directly affects generation income earned by
plants connected to the SENI and has a negative impact on the perception held by investors and credit
entities.

Situation of the renewable energy sector:


The Dominican Republic does not currently offer any financial incentives for developing renewable
energy projects, nor is there a legal framework for regulating, encouraging or guaranteeing the
development and operation of renewable energy projects of the scope of the proposed project activity.

For some time now, the Dominican Republic Congress has been studying a Draft Law for Promotion of
and Incentives for Renewable Energy, which was prepared by the Industry and Commerce Department.
The congressional debate on special legislation to encourage development of clean energy began six years
ago and has yet to be resolved. It is not certain whether the draft law will eventually be approved, given
the difficulties in reconciling the interests of thermoelectric plant operators with the actual application of
the incentive measures proposed.

The draft law proposes the following incentives for developing renewable energy sources:

5
First National Communication on the United Nations Framework Convention on Climate Change, page 74.

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- Merit subsidy: subsidised financing during 10 years for a part of the capital required for installations
not exceeding 50MW (this incentive would not be applicable to El Guanillo)
- 100% exemption from import tariffs on the equipment and tools needed for renewable energy
generation
- Five-year exemption from income tax on revenues obtained in generation of renewable energy
- Tax incentive for self-production (this incentive would not be applicable to El Guanillo, as all the
electricity produced would be dispatched through the SENI)
- Dispatch priority: renewable energy sources would be granted the same treatment as hydroelectric
plants (higher dispatch priority than thermoelectric plants)

On several occasions PECASA has expressed its concern to the Comisin Nacional de la Energa about
the final approval of the bill, as it is a key factor in determining the feasibility of the project (and,
consequently, its external financing options). Nonetheless, the current version of the bill will exclude the
El Guanillo wind farm from the proposed incentives and benefits as it exceeds the 50MW limit.

The dispatch priority would not give rise to additional incentives for potential investors, as the current
merit order is determined based on fuel costs (financing costs are excluded), and this dispatch priority is
therefore an advantage which already exists. Instead, the main obstacle which should be faced by the
proposed project activity is the financing of the initial investment, and the current version of the bill does
not include any incentives in this respect for non-self-supply installations or those exceeding a 50MW
capacity.

In any event, the limited influence of this bill on the electric market is reflected in the Expansion Plan
which is currently managed by the Comisin Nacional de la Energa.

Apart from the Incentives for Renewable Energy Sources Bill, the State Department of Industry and
Commerce created a Non-conventional Energy Office6. The objective of this Office is to develop non-
conventional renewable energy in the Dominican Republic, through investments made with National
Interest Funds, created under the Hydrocarbon Law (Ley 112-02) for the development of alternative non-
fossil fuel energy sources. This Office manages the financing and subsidising of small-scale solar energy
projects, such as the electrification of schools, clinics, police detachments or military posts.
Consequently, the proposed project activity is beyond the field of action of this Office.

Technological constraints:
The topographical characteristics of the land on which the wind farm will be built (on top of a mountain
range) increases costs related not only to the installation of the wind turbines and the access roads but also
to the construction of the 14-km long 138 kV transmission line which should be built by PECASA to
dispatch the electricity produced by the wind farm to the SENI.

The insurance companies have required that the design of the wind farm take into account the installation
of wind turbines capable of withstanding winds of up to 220 km/h and earthquakes measuring 8.5 on the
Richter scale, therefore increasing equipment and construction costs.

Lack of experience in wind farms:


No wind farms currently operate and dispatch electricity to the SENI. The only similar projects in the
Dominican Republic relate to small-scale self-supply projects in the tourist region south of the country.

6
http://www.seic.gov.do/enernoconv.htm

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The construction of the first wind farm project requires the transfer of technology and experience from
the promoters to enable the adequate operation and maintenance of the installation and their integration
into the dispatch procedures applied by the Coordinating Body of the SENI.

The fact that this is the first project of its kind in the country, combined with risks related to the irregular
nature of the energy supplied, increases the risks perceived by possible external financing sources.

Sub-step 3b. Show that the identified barriers would not prevent the implementation of at least one
of the alternatives (except the proposed project activity):

The alternative scenario proposed is to continue with the current situation (this or any other alternative
project is not executed). The aforementioned barriers are not a hindrance to the development of this
alternative scenario.

At any rate, obstacles related to the lack of an adequate legal framework for renewable energy or
technological or precedence risks, are not a hindrance to the development of other alternative projects
(which are actually not an option for PECASA), such as a thermal plant.

This type of projects is referred to in the Expansion Plan defined in the last Long-term operation program
prepared by the systems operator, which shows that this type of project is not subject to the same barriers
encountered by the proposed project activity.

Year Project Unit Type Capacity Fuel


2005 Puerto Plata de Electricidad Diesel engine 90 Fuel Oil 6
2006 Seaboard Canabacoa Diesel engine 50 Fuel Oil 6
2007 Central Arroyo Barril Diesel engine 40 Fuel Oil 6

Source: Long Term Operation Program developed by market operator (Coordination body of the SENI).
http://www.oc.org.do

It should be noted that the Dominican Republic is a signatory to the PetroCaribe Energy Cooperation
Agreement, a body comprising 14 Carribbean countries, created upon the initiative of Venezuela, the
main objective of which is the integration of the energy resources of Latin American and Caribbean
countries. The second PetroCaribe summit held in Jamaica on 6 September 2005 discussed the possible
marketing of Venezuelan oil in the Caribbean at more reasonable prices, low interest rates and long-term
credit terms, which could pull oil prices down, therefore decreasing the operating cost of thermal plants
and making the installation of a wind farm even less favourable.

Step 4. Common practice analysis

Sub-step 4a. Analyse other activities similar to the proposed Project activity:

As mentioned above, the El Guanillo project is the first wind farm to dispatch electricity to the SENI. The
only similar projects in the Dominican Republic are the following:

- The installation of the Los Guzmancitos wind farm in Puerto Plata.

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- A private wind farm (for self-supply) in the south of the country.

Sub-step 4b. Discuss any similar options that are occurring

- The Los Guzmancitos wind farm project relates to a 24.75 MW installation comprised of 33 wind
turbines. This project has been in a preliminary stage for several years now and is facing numerous
difficulties in the procurement of the required permits.
- The privately-owned wind farm in the south of the country is a self-supply unit, considering its size,
and is therefore not comparable to the proposed project activity.

Step 5. Impact of CDM registration

The project promoter has estimated that the sale of Certified Emission Reductions could increase the
projects Internal financial rate of return by 1.7%; from 11.3% to 13%. This estimate has been carried out
including the financial profits of the CDM within the projects financial evaluation model, and
recognising income on the sale of Certified Emission Reductions under cash flow:

- Estimated annual electricity generating capacity: 175,494 MWh


- Annual emission reductions, applying the combined margin emission factor: 115,879 tCO2.
- Price assigned to the Certified Emission Reduction: 10 USD.
- Annual income included in cash flow: 1,115,879 USD.

PECASA expects this increase in income to help offset risks perceived by the investors and banks
contacted in relation to the current situation of the country and the energy sector.

Additionally, the registration of the project as a CDM could attract third parties which have emission
reduction commitments within the framework of the European Union Emission Trading Scheme, for
which a CDM project have additional socio-economic benefits, as its evaluation model should include the
avoided cost of acquisition of emission allowances in the European allowances market (which is currently
valued at approximately Euros 20).

B.4. Description of how the definition of the project boundary related to the baseline
methodology selected is applied to the project activity:
>>
According to the ACM0002 methodolgy, the project boundery should be defined based on the sources of
emissions considered, and its spatial extent.
- The project activity will solely recognise CO2 emissions from the thermoelectric plants, the
operations of which will be displaced or the construction delayed by the project activity.
- The spatial extent of the project boundary is the electricity system of the project (as defined in the
ACM0002 methodology), i.e., the SENI. There are no connections with other electricity systems (no
exports or imports of electricity are made).

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B.5. Details of baseline information, including the date of completion of the baseline study
and the name of person (s)/entity (ies) determining the baseline:
>>
Date of completion: 25/11/2005
Entity determining the baseline: Gamesa Energa, project participant.
Contact information is provided in Annex 1.
Detailed baseline information is provided in Annex 3.

SECTION C. Duration of the project activity / Crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity:


>>
First half of the year 2007

C.1.2. Expected operational lifetime of the project activity:


>>
20 yy. 0 mm

C.2 Choice of the crediting period and related information:

C.2.1. Renewable crediting period

C.2.1.1. Starting date of the first crediting period:


>>
Not applicable.

C.2.1.2. Length of the first crediting period:


>>
Not applicable

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:


>>
01/07/2007

C.2.2.2. Length:
>>
10 years

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SECTION D. Application of a monitoring methodology and plan

D.1. Name and reference of approved monitoring methodology applied to the project activity:
>>
Approved Monitoring Methodology ACM0002, consolidated monitoring methodology for zero-emissions
grid-connected electricity generation from renewable sources.

D.2. Justification of the choice of the methodology and why it is applicable to the project
activity:
>>

The applied baseline methodology must be used in conjunction with approved monitoring methodology
ACM0002. The methodology is applicable to the project activity, as applicability criteria are the same for
both the baseline and the monitoring methodologies.

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D.2. 1. Option 1: Monitoring of the emissions in the project scenario and the baseline scenario

D.2.1.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:

ID number Data Source of Data Measured (m), Recording Proportion How will the Comment
(Please use variable data unit calculated (c) frequency of data to data be
numbers to or estimated (e) be archived?
ease cross- monitored (electronic/
referencing paper)
to D.3)

Not applicable.

D.2.1.2. Description of formulae used to estimate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2
equ.)
>>
Not applicable.

D.2.1.3. Relevant data necessary for determining the baseline of anthropogenic emissions by sources of GHGs within the project
boundary and how such data will be collected and archived :

ID number Data type Data variable Data unit Measured For which Recording Proportion How will the data For how long is Comment
(Please use (m), baseline frequency of data to be archived? archived data
numbers to calculated method(s) be (electronic/ kept?
ease cross- (c), must this monitored paper)
referencing estimated element be
to table (e), included
D.3)

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1. EGh Electricity Electricity MWh Directly Dispatch data Hourly 100% Electronic During the Double check
quantity supplied to measured OM measuremen crediting by receipt of
the grid by BM t and period and two sales
the project monthly years after
recording
2. EFy Emission CO2 tCO2/MWh c Dispatch data yearly 100% Electronic During the 50% weighted
factor emission OM crediting sum of the OM
factor of the BM period and two and BM
grid years after emission
factors
3. EFOM,y Emission CO2 tCO2/MWh c Dispatch data yearly 100% Electronic During the Calculated as
factor Operating OM crediting indicated in the
Margin period and two relevant OM
emission years after baseline
factor of the method above
grid
4. EFBM,y Emission CO2 Build tCO2/MWh c BM yearly 100% Electronic During the Calculated as
factor Margin crediting indicated in the
emission period and two relevant BM
factor of the years after baseline
grid method above
5. Fi,n,h Fuel Amount of Mass or m Dispatch data yearly 100% Electronic During the Obtained from
quantity each fossil volume OM crediting dispatch
fuel hourly BM period and two centres latest
consumed by years after statistics
each power
plant
6. COEFi,n Emission CO2 tCO2/mass m Dispatch data Yearly 100% Electronic During the Country
factor emission or volume OM crediting specific values
coefficient coefficient of unit BM period and two for NCV
each fuel years after IPCC default
type i values for
carbon content
and oxidation
coefficient

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7. Electricity Electricity MWh/h (n m Dispatch data Yearly 100% Electronic During the Obtained from
GENn,h/m,y quantity generation of plants) OM crediting dispatch
each power MWh/a (m BM period and two centres latest
plant n or m plants) years after statistics
8. Plant Identificatio Text e Dispatch data Yearly 100% of Electronic During the Identification of
name n of power OM top 10 of crediting n plants to
plants for the merit period and two calculate
OM order in years after Operatin
each hour Margin
emission
factors
9. Plant Identificatio Text e BM Yearly 100% of Electronic During the Identification of
name n of power the most crediting m plants to
plants for recent period and two calculate Build
BM capacity years after Margin
additions emission factor
producing
20% of the
grid
10. Merit The merit Text m Dispatch data Weekly 100% Excel During the Required to
Order order in OM spreadsheets crediting stack the plants
which power period and two in the dispatch
plants are years after data analysis
dispatched
by
documented
evidence

D.2.1.4. Description of formulae used to estimate baseline emissions (for each gas, source, formulae/algorithm, emission units of CO2
equ.)
>>
Detailed in section B.

D. 2.2. Option 2: Direct monitoring of emission reductions from the project activity (values should be consistent with those in section E).

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Not applicable

D.2.2.1. Data to be collected in order to monitor emissions from the project activity, and how this data will be archived:

ID number Data Source of Data Measured (m), Recording Proportion How will the data Comment
(Please use variable data unit calculated (c), frequency of data to be archived?
numbers to estimated (e), be (electronic/
ease cross- monitored paper)
referencing
to table
D.3)

D.2.2.2. Description of formulae used to calculate project emissions (for each gas, source, formulae/algorithm, emissions units of CO2
equ.):
>>

D.2.3. Treatment of leakage in the monitoring plan

D.2.3.1. If applicable, please describe the data and information that will be collected in order to monitor leakage effects of the project
activity
ID number Data Source of Measured (m), Recording Proportion How will the data Comment
Data
(Please use variable data calculated (c) frequency of data to be archived?
unit
numbers to or estimated (e) be (electronic/
ease cross- monitored paper)
referencin
g to table
D.3)

Not applicable.

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D.2.3.2. Description of formulae used to estimate leakage (for each gas, source, formulae/algorithm, emissions units of CO2 equ.)

>>

D.2.4. Description of formulae used to estimate emission reductions for the project activity (for each gas, source, formulae/algorithm,
emissions units of CO2 equ.)
>>
Detailed in section E

D.3. Quality control (QC) and quality assurance (QA) procedures are being undertaken for data monitored

Data Uncertainty level of data Explain QA/QC procedures planned for these data, or why such procedures are not necessary.
(Indicate table and (High/Medium/Low)
ID number e.g. 3.-1.;
3.2.)
1. Low Official data, double checking and data management system, as detailed in annex IV.
2. Medium
6. Low

D.4 Please describe the operational and management structure that the project operator will implement in order to monitor emission reductions
and any leakage effects, generated by the project activity
>>
Detailed in the monitoring plan.

D.5 Name of person/entity determining the monitoring methodology:


>>
Date of completion: 25/11/2005
Entity determining the monitoring methodology: Gamesa Energa, project participant.
Contact information is provided in Annex 1.
Detailed monitoring information is provided in Annex 4.

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SECTION E. Estimation of GHG emissions by sources

E.1. Estimate of GHG emissions by sources:


>>
The only GHG emissions within the project boundary resulting from the wind farm will be those
produced by the movement of vehicles during installation of the equipment. These emissions are not
considered to be significant and, therefore, will not influence the balance of GHG emissions by the
project.

E.2. Estimated leakage:


>>
Project activity will not produce any leakage.

E.3. The sum of E.1 and E.2 representing the project activity emissions:
>>
The sum of E1 and E2 is zero.

E.4. Estimated anthropogenic emissions by sources of greenhouse gases of the baseline:


>>
Hourly generation-weighted average emissions per electricity unit (tCO2/MWh) of the set of power plants
(n) in the top 10% of grid system dispatch order during hour h:

Fi,,n,h COEFi,n
i,n
EFDD,h=
GEN,n,h
n

Emissions associated with the operating margin:

EOM,(oct04-oct05) EGh EFDD,h = 132.943 tCO2


= h

Dispatch data operating margin emission factor:

EOM,y 132.943 tCO2


EFOM,DispatchData,y = = = 0,757 tCO2/MWh
EGy 175.494 MWh

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Generation-weighted average emisin factor of a sample of power plants (m) associated with the build
marging:

Fi,,m,y COEFi,m 1.260.375 tCO2


i,m
EFBM (oct04-oct05)= = = 0,563 tCO2 /MWh
GEN,m,y 2.238.104 MWh
m

Combined margin emission factor:

EFy = 0.5 EFOM,y + 0.5 EFBM,y = 0,660 tCO2 /MWh

Baseline emissions:

BEoct04-oct05 = (EGy EGbaseline) EFy = (175.494 0) MWh 0,660 tCO2 /MWh = 115.879 tCO2

Baseline emissions for the entire crediting period. This ex ante estimate assumes that yearly reductions in
emissions will be consistent over the ten-year crediting period.

BEcrediting period = 1.158.787 tCO2

E.5. Difference between E.4 and E.3 representing the emission reductions of the project activity:
>>
Emision reductions = E4 E3 = 1.158.787 tCO2

E.6. Table providing values obtained when applying formulae above:


>>
Year Estimation of Estimation of Estimation of Estimation of
project activity baseline emission leakage (tones emission
emission reductions reductions (tones of CO2e) reductions
(tones of CO2e) of CO2e) (tonnes of CO2 e)
2007 47.546 0 0 47.546
2008 115.879 0 0 115.879
2009 115.879 0 0 115.879
2010 115.879 0 0 115.879
2011 115.879 0 0 115.879
2012 115.879 0 0 115.879
2013 115.879 0 0 115.879
2014 115.879 0 0 115.879
2015 115.879 0 0 115.879
2016 115.879 0 0 115.879
2017 68.333 0 0 68.333
Total
1.158.787 0 0 1.158.787
(tonnes of CO2 e)

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SECTION F. Environmental impacts

F.1. Documentation on the analysis of the environmental impacts, including transboundary


impacts:
>>
In accordance with the Dominican Republic law7 governing this type of projects, the promoter should
prepare an Environmental Impact Assessment (EIA) identifying and quantifying the possible
environmental impacts of the activity.

Promoters are also required to submit an Environmental Plan (EP) in order to prevent, eliminate or reduce
the environmental impacts identified by the promoter.

The most significant environmental impacts identified in the EIA are summarised below, along with the
preventative, corrective and control measures foreseen in the EP.

Significant environmental impact of the El Environmental measures foreseen in the


Guanillo wind farm Environmental Plan
The wind farm does not threaten biodiversity in the Two artificial aquatic ecosystems will be created to
area and any impacts could be controlled through redirect bird flight routes away from wind
preventative measures. The construction process generators where collision is most likely.
will mainly affect reptile species (moderate impact)
and the operating phase will mainly affect various
bird groups.
The wind farm does not pose a significant risk of Implementation of an Environmental Management
emitting more pollutants (solids, liquid or gas) to System to cover at least the following aspects:
the environment. control of atmospheric emissions during
There is a risk of a negative impact on the life of construction, control of erosion and soil stability,
inhabitants of the area if certain environmental risk management, flora and fauna management, and
regulations are not complied with in operating the environmental information, distribution,
wind farm. supervision and monitoring.
Construction works could affect the La Balboa Creation of a museum housing objects uncovered
archaeological site. during the construction of a wind farm.
Positive impacts of the wind farm: improvement in -
collection of solid waste in the affected area, direct
creation of 24 jobs, higher demand for services,
and an increase in the land value.

7
General Environmental and Natural Resources Law and Environmental Permits and Licenses Regulation

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F.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
PECASA submitted the Environmental Impact Assessment and the Environmental Plan to the appropriate
authority (the Sub-Secretary for the Environment of the State Department of the Environment and Natural
Resources).

The Sub-Secretary for the Environment analysed the documentation submitted and awarded an
environmental permit for the project, subject to compliance with the Environmental Plan.

SECTION G. Stakeholders comments


>>

G.1. Brief description of how comments by local stakeholders have been invited and compiled:
>>
Interested parties refer to all stakeholders directly related to the development, construction and operation
of the project activity. Agents can therefore be classified in two types as follows:
- Local stakeholders: are the owners of land on which the wind farm will be built. The comments of
these stakeholders during the negotiations for the lease of this land have been compiled.
- Institutional stakeholders: are bodies involved in the approval and regulation of wind-powered
electricity projects, and their comments expressed in the form of correspondence and at work
meetings, as well as in conditions established in different authorisations, permits or certifications
issued, have all been noted down and compiled.

G.2. Summary of the comments received:


>>
Land owners: support the installation of the wind farm as this implies additional income, whilst enabling
them to continue with their traditional activities, and bringing technological advances and economic
benefits to the region. Consequently, they readily signed the lease contracts which would allow the
installation of the measuring equipment and, subsequently, the wind turbines.

The Office of the Environmental Management Subsecretary of the State Department of Environment and
Natural Resources studied the Environmental Impact Assessment and the Environmental Plan for the
wind farm submitted by PECASA. Subsequent to the review of all the environmental impacts detected
and measures proposed to mitigate them, the Office issued the corresponding Environmental Permit on 23
January 2004 for the construction and operation of the El Guanillo wind farm.

Energy Authority: comments received relate to technical conditions with which the installation should
comply. This stakeholders approval of the El Guanillo project was obtained through the Concession
Contract for the operation of the wind farm and the Electricity Connection Approval (5 March 2004),
after its review of a short-circuit study presented by PECASA.

The installation of the wind turbines could have an effect on tourism and air safety and the pertinent
institutions have been consulted in this regard.

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- The Civil Aeronautics Department and the Military Cartography Institute examined the location of
the wind turbines and its implications to air traffic and issued the corresponding authorisation on 20
July 2004.
- The Department of Tourism studied the project and issued a certificate of approval on 6 August 2004.

G.3. Report on how due account was taken of any comments received:
>>
Comments received from interested parties have not given rise to any modifications or adaptations of the
project activity submitted.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organisation: Gamesa Energa


Street/P.O.Box: Plaza Pablo Ruiz Picasso, 1
Building: Torre Picaso, 24th floor
City: Madrid
State/Region:
Postfix/ZIP: 28020
Country: Spain
Telephone: +34 91 566 74 00
FAX: +34 91 515 88 86
E-Mail:
URL:
Represented by:
Title: Responsable for CDM/JI projects
Salutation: Mr.
Last Name: Lpez
Middle Name:
First Name: Javier
Department:
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail: jlopezhuerta@energia.gamesa.es

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

N/A.

Annex 3

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BASELINE INFORMATION

1. Information required for the calculation of thermal plant emissions


Net Calorific Value EF OF Specific Consumption
Power Plants Fuel Figure Units t CO2/TJ % Figure Units
1 Itabo II Fuel Oil No.6/Coa 10150 Kcal/Kg 77,4 0,99 0,379 kgr/kWh
2 Itabo I Fuel Oil No.6/Coa 10150 Kcal/Kg 77,4 0,99 0,386 kgr/kWh
3 Barahona Carbn Coal 6500 Kcal/Kg 98,3 0,98 0,489 kgr/kWh
4 Seaboard EDM Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,214 kgr/kWh
5 CEPP-II Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,237 kgr/kWh
6 Monte Rio Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,209 kgr/kWh
7 CEPP-I Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,24 kgr/kWh
8 Sultana del Este Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,203 kgr/kWh
9 Seaboard EDN Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,231 kgr/kWh
10 La Vega Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,221 kgr/kWh
11 AES Andres Natural Gas 56,1 0,995 7,226 MMBTU/MWh
12 Manzanillo III Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,238 kgr/kWh
13 Palamara Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,218 kgr/kWh
14 Pto Plata II Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,314 kgr/kWh
15 Pto Plata I Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,344 kgr/kWh
16 Metaldom Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,216 kgr/kWh
17 Smith(V) Natural Gas 56,1 0,995 7,226 MMBTU/MWh
18 Falcon I Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,305 kgr/kWh
19 Falcon II Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,305 kgr/kWh
20 Falcon III Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,296 kgr/kWh
21 Haina IV Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,296 kgr/kWh
22 Haina II Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,336 kgr/kWh
23 Smith Gas Oil No.2 10600 Kcal/Kg 74,1 0,99 0,249 kgr/kWh
24 Haina I Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,329 kgr/kWh
25 Smith(CC) Natural Gas 56,1 0,995 7,226 MMBTU/MWh
26 CESPM - I Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,185 kgr/kWh
27 CESPM - II Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,185 kgr/kWh
28 CESPM - III Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,185 kgr/kWh
29 Los Mina V Natural Gas 56,1 0,995 11,006 MMBTU/MWh
30 Los Mina VI Natural Gas 56,1 0,995 10,528 MMBTU/MWh
31 Smith(TG) Natural Gas 56,1 0,995 7,226 MMBTU/MWh
32 CESPM - I (TG) Natural Gas 56,1 0,995 7,226 MMBTU/MWh
33 CESPM - II (TG) Natural Gas 56,1 0,995 7,226 MMBTU/MWh
34 CESPM - III (TG) Natural Gas 56,1 0,995 7,226 MMBTU/MWh
35 A. Barril Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,255 kgr/kWh
36 Montecristi Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,255 kgr/kWh
37 Maxon Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,246 kgr/kWh
38 La Isabela Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,273 kgr/kWh
39 Manzanillo II Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,294 kgr/kWh
40 Dajabon Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,273 kgr/kWh
41 Haina (TG) Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,279 kgr/kWh
42 Dies. Pimentel Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,293 kgr/kWh
43 Itabo I TG Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,3 kgr/kWh
44 Itabo II TG Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,3 kgr/kWh
45 Itabo III TG Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,3 kgr/kWh
46 Sabana de la Mar Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,215 kgr/kWh
47 Yamas Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,275 kgr/kWh
48 S.G. de Boy Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,275 kgr/kWh
49 Oviedo Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,273 kgr/kWh
50 Higuamo I Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,3 kgr/kWh

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1. Information required for the calculation of thermal plant emissions (continued)

Net Calorific Value EF OF Specific Consumption


Power Plants Fuel Figure Units t CO2/TJ % Figure Units
51 Higuamo II Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,3 kgr/kWh
52 San Pedro (TG) Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,429 kgr/kWh
53 Barahona (TG) Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,435 kgr/kWh
54 Estrella del Norte Natural Gas 56,1 0,995 7,226 MMBTU/MWh
55 Mitsubishi Fuel Oil No.6 10150 Kcal/Kg 77,4 0,99 0,296 kgr/kWh
56 Smith CA Natural Gas 56,1 0,995 7,226 MMBTU/MWh
57 Estrella del Mar Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,215 kgr/kWh
58 San Pedro Vapor Gas Oil No.2 10900 Kcal/Kg 74,1 0,99 0,333 kgr/kWh

DATA SOURCE:
*Net Calorific Value: Expansion Proposal of the Dominican Electric Generation System.
*Emission Factor: Revised IPCC Guidelines 1996 for the National Greenhouse Gas Emission Inventory
*Oxidaton Factor:Revised IPPC Guidelines 1996 for the National Greenhouse Gas Emission Inventory.
NOTE: Since the specific consumptions of Estrella del Mar y San Pedro Vapor were known, Gas Oil No.2 was taken as
a fuel in this power plants because it was the one which fits better with the specific consumption value. The power
plants, in which no public information about the fuel type is available, appear in green colour. In this cases, the
conservative assumption of natural gas consumption has been taken for being the less emission reducction option
of the Guanillo Project. In "Estrella del Mar" y "San Pedro Vapor" the especific consumptions are known and
appear in kg/kWh units. According with these, the fuel cannot be natural gas (whose specific consumption is
expressed in MBTU/MWh); in this cases Gas Oil No.2 has been considered.

2. Details of plants comprising the systems expansion margin

MWh Oct 2004 - Oct 2005


Total SENI 10.196.807
20% total SENI 2.039.361
Ce 2.238.104
Domingo Rodriguez I 3.142 Hydroelectric
Domingo Rodriguez II 1.834 Hydroelectric
Aniana Vargas I 670 Hydroelectric
Aniana Vargas II 485 Hydroelectric
Sabana de la Mar 0 Thermal
AES Andres 828.803 Thermal
Monte Rio 607.939 Thermal
Manzanillo III 5.949 Thermal
C.E. Moncin I 8.478 Hydroelectric
C.E. Moncin I 8.208 Hydroelectric
CESPM - III 193.707 Thermal
CESPM - II 304.064 Thermal
CESPM - I 274.825 Thermal

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM Executive Board page 36

Annex 4

MONITORING PLAN

Introduction
The Monitoring Plan defines the process of gathering data required for the preparation of the annual
report on the monitoring of reductions in CO2 emissions attributable to the El Guanillo wind farm, which
should be verified for the annual presentation of the CERs.

The Monitoring Plan defines the following tasks:


- Data gathering and calculation to determine the baseline and attributable emission reductions
- Responsibilities
- Storage of data and data quality control and assurance equipment

Duration
The Monitoring Plan will be implemented over the 10-year crediting period of project activity. Data
gathered will be stored for 2 years from the date of termination of the crediting period or delivery of the
latest Certified Emission Reductions.

Data quality control and assurance equipment

Measuring equipment and techniques


The amount of electricity to be generated by the El Guanillo wind farm is ascertained based on official
statistics published by the Coordinating Body of the SENI. These statistics are based on data generated by
the measuring equipment installed at the site in which the wind farms line connects with the SENI. This
equipment is sealed and calibrated in accordance with technical regulations and procedures applied in the
Dominican Republic.

Verification of data
The annual figures obtained for the emission factors applied in the calculation of the operating and
expansion margins will be compared with results obtained in prior years. Significant year-on-year
differences should be explained based on the performance of the SENI (substantial change in the
generation mix, important plant shutdowns, significant increase in the renewable energy generating
capacity, etc.). Otherwise, the possible existence of monitoring errors will be considered and the entire
process will be reviewed to identify these errors.
Similarly, samples will be collected each year to verify that the corresponding changes to the merit order
have been taken into account and the hourly data for each plant used as a basis for the calculation match
the El Guanillo records and statistics published in www.oc.org.do.

Annual update of data required for the estimation of emissions of each thermal plant
Data related to the following will be updated annually:
- Specific fuel consumption of each plant included in the merit order
- Net calorific value of fuel used in the plants, according to information published by the Comisin
Nacional de la Energa.
- Verification of the validity of the CO2 emission factor of fuel used in the plants based on IPCC
default values.

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

CDM Executive Board page 37

- Verification of the validity of the oxidation factor of fuel used in the plants based on IPCC default
values.

Data management system


A data management system has been established to ensure that data required for the calculation are
adequately stored, recorded and controlled, and could therefore be appropriately verified. This system is
structured in spreadsheets and in daily, weekly and yearly operations, as summarised in the following
table and detailed in this Monitoring Plans task tables.

Daily Data Collection Daily Calculations DAILY MONITORING

Hourly generation of the Daily Generation of the SENI


merit order power plants .
10% of the daily generation
Total generation of the plants of the SENI
out of the merir order.
Hourly Operating Margin
Hourly generation of the build Emission Factor
margin power plants (m)
Hourly Operatin Margin
Generation of the El Guanillo Emissions

WEEKLY MONITORING
Weekly Calculations

Weekly generation of the


SENI
Weekly generation of the El
Guanillo
Weekly emissions of the
operating margin
Weekly generation of the
build margin plants.

ANNUAL MONITORING
Annual Calculations Annual Final Calculations

Annual generation of the Operating margin emission


SENI factor
Annual generation of the El Build margin emission factor
Guanillo
Combined margin emission
Annual emissions of the factor
operating margin
Annual generation of the
build margin
Annual emissions of the build
margin

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EL GUANILLO MONITORING PLAN Quality
Duties to carry out Manager
Assurance

1 Hourly generation of each thermal unit, in accordance with the Data Management
grid system dispatch order System
Annual sampling
CDM Executive Board

2 Hourly generation of all the units not included in the merit order. Data Management
1. DAILY DATA COLLECTION System
Dispacht data of the previous day Annual sampling
(www.oc.org.do) are daily collected in
order to calculate the annual emission
factor of the system, and they are filed in a
spreasheet.

When there are changes in the grid


system dispatch order, a new Excel
spreadsheet will be use. (generally, in this
case, changes ocurr weekly, but this
frecuency can vary) l 3 Hourly generation of the build margin group of plants (m). This Data Management
group of plants is detailed in Annex III of El Guanillo Project System
Document.
If a new power plant enters into operation, it will be included in
this group of centrals (m).
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

4 Hourly generation of the Guanillo wind farm (EGh). Data Management


System
Measurement and
page 38

Calibration

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procedures
EL GUANILLO Quality
Duties to carry out Manager
MONITORING PLAN Assurance

5 Data
Total hourly generation of the SENI, (1) + (2) Management
Ssytem

6 Data
10% of the hourly generation of the SENI, as the 10% of (5). Management
CDM Executive Board

Ssytem
7 Hourly generation-weighted average emissions per electricity unit of the set of power plants (n) Data
in the top 10% of the grid system dispatch order during hour h, calculated as it has been Management
indicated in section B of the Guanillo Project. Ssytem
Annual update
of the emission
calculation
data ( specific
2. DAILY consumption,
CALCULATIONS emission factor
The following and oxidation
calculations are obtain factor)
from the daily dispatch
data, and are filed in
the same spreadsheet Where:
Fi,n,h: the amount of fuel (i) consumed by each of the power sources (n) during each hour (h). It
is determined by multiplying the hourly generation of each power plant by their fuel specific
consumption.

COEFi,n: is the CO2 emission coefficient of fuel (i) of the power plants (n), annually calculated
taking into account their net calorific value, their CO2 emission factor and their oxidation factor.
GENn,h: electricity generated by each of the power plants (n) during hour (h).
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

8 Data
Operating margin hourly emission of the system (EOM,h), multiplying (7) by (4): Management
Ssytem
page 39

EOM,h = EFDD,h EGh

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.
Quality
EL GUANILLO MONITORING PLAN Duties to carry out Manager
Assurance
3. WEEKLY CALCULATIONS Data
Changes in the merit order involves the Management
9 Weekly generation of the SENI
following calculations, which compiled Ssytem (DMS)
the weekly information necessary for
emission reduction monitoring. The 10 Weekly generation of the Guanillo DMS
results are compilled in an annual 11 Weekly emissions of the operating margin (EOM,s) DMS
monitoring spreadsheet. 12 Weekly generation of each of the build margin plants (m) DMS
CDM Executive Board

13 Annual genaration of the SENI DMS


14 Annual generation of the El Guanillo (EGy). DMS
15 Annual emissions of the operating margin (EOM,y) DMS
Annual generation of each of the build margin power plants (m) of the SENI
16 DMS
(GENm,y)

CO2 annual emisiones of the build margin power plants (m), according to
the steps established inf secction B of the El Guanillo Project. The formula
used is:
4. ANNUAL CALCULATIONS
DMS
The mos important annual data are
Annul update
calculated from weekly data and
of the emission
registered in the same spreadsheet.
calculation
17 data (specific
Where: consumption,
Fi,m,y: the amount of fuel (i) consumed by each of the power plants (m) emission factor
during the year(y). It is estimated from their anuual generation and their and oxidation
specific consumption per unit of electricity. factor)
COEFi,m: CO2 emission coefficient of fuel (i) of the group of centrals(m),
annually calculated from the net calorific value, their emission factor and
their oxidation factor.
PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 02

Vertical
18 Operating margin emission (EFOM,y): (15) / (14)
verfication
Vertical
5. ANNUAL FINAL CALCULATIONS 19 Build margin emission factor (EFBM,y): (17) / (16)
verfication
page 40

Vertical

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20 Combined margin emission factor (EFy): ((18) + (19))/2
verfication

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