Uniform Reporting Format:
Activities Implemented Jointly Under the Pilot Phase
CFBC & CHP Project in Shangqiu Thermal Power Plant in Henan Province of China
Submitted by P. R. China
UNIFORM REPORTING FORMAT:
ACTIVITIES IMPLEMENTED JOINTLY UNDER THE PILOT PHASE
List of
Projects
A. Description of project
-
Title of project:
CFBC & CHP Project in Shangqiu Thermal Power Plant, Henan Province of China
2) Participants/actors:
Please fill in one table for each participant/actor. For individuals fill in as from item
"Function within activity".
|
Item
|
Please fill in if applicable
|
|
Name of organization(a):
|
|
|
Name of organization (English):
|
Norwegian Royal Ministry of Foreign Affairs
|
|
Department:
|
|
|
Acronym:
|
|
|
Acronym (English):
|
|
|
Function within activity:
|
Designated National Authority on Norwegian side in charge of negotiation and approval as well as
financing for AIJ project cooperation with non Annex I countries.
|
|
Street:
|
|
|
Post code:
|
|
|
City:
|
|
|
Country:
|
|
|
Telephone:
|
|
|
Fax:
|
-
47-22-24-95-81
|
|
E-mail:
|
|
|
WWW-URL:
|
|
|
Contact person (for this activity):
|
-
Ms. Marte Gerhardsen
|
|
Surname:
|
Gerhardsen
|
|
First name, middle name:
|
Marte
|
|
Job title:
|
|
|
Direct Tel.:
|
|
|
Direct fax:
|
|
|
Direct E-mail:
|
|
|
Item
|
Please fill in if applicable
|
|
Name of organization(a):
|
|
|
Name of organization (English):
|
The Ministry of Science and Technology, People's Republic of China
|
|
Department:
|
Department of Rural and Social Development
|
|
Acronym:
|
|
|
Acronym (English):
|
MOST
|
|
Function within activity:
|
Governmental Authority of China side in charge of project evaluation, negotiation and approval as
well as implementation of national AIJ program
|
|
Street:
|
15B Fuxing Road
|
|
Post code:
|
100862
|
|
City:
|
Beijing
|
|
Country:
|
The People's Republic of China
|
|
Telephone:
|
|
|
Fax:
|
|
|
E-mail:
|
|
|
WWW-URL:
|
|
|
Contact person (for this activity):
|
Lu Xuedu
|
|
Surname:
|
Lu
|
|
First name, middle name:
|
Xuedu
|
|
Job title:
|
|
|
Direct Tel:
|
86 10 68514054
|
|
Direct fax:
|
86 10 68512163
|
|
Direct E-mail:
|
Lvxd@mail.most.gov.cn
|
|
Item
|
Please fill in if applicable
|
|
Name of organization(a):
|
|
|
Name of organization (English):
|
Shangqiu Electric Power-Aluminum Group Co. Ltd.
|
|
Department:
|
Shangqiu Thermal Power Plant
|
|
Acronym:
|
|
|
Acronym (English):
|
SEPAG
|
|
Function within activity:
|
The owner and executive entity of the project.
|
|
Street:
|
No. 251, Qingnian Road
|
|
Post code:
|
476000
|
|
City:
|
Shangqiu, Henan Province
|
|
Country:
|
The People's Republic of China
|
|
Telephone:
|
86 0370 2806669
|
|
Fax:
|
86 0370 2806673
|
|
E-mail:
|
Guohaijun@public2.zz.ha.cn
|
|
WWW-URL:
|
www.shangdianlvye.com
|
|
Contact person (for this activity):
|
Guo Haijun
|
|
Surname:
|
Guo
|
|
First name, middle name:
|
Haijun
|
|
Job title:
|
Chairman and General Manager
|
|
Direct Tel:
|
86 0370 2806669
|
|
Direct fax:
|
86 0370 2806673
|
|
Direct E-mail:
|
Guohaijun@public2.zz.ha.cn
|
|
Item
|
Please fill in if applicable
|
|
Name of organization(a):
|
|
|
Name of organization (English):
|
SuiYang District Government of Shangqiu city
|
|
Department:
|
|
|
Acronym:
|
|
|
Acronym (English):
|
|
|
Function within activity:
|
Local investor and administrative support
|
|
Street:
|
|
|
Post code:
|
|
|
City:
|
Shangqiu
|
|
Country:
|
The People's Republic of China
|
|
Telephone:
|
|
|
Fax:
|
|
|
E-mail:
|
|
|
WWW-URL:
|
|
|
Contact person (for this activity):
|
-------------------------------------
|
|
Surname:
|
|
|
First name, middle name:
|
|
|
Job title:
|
|
|
Direct Tel:
|
|
|
Direct fax:
|
|
|
Direct E-mail:
|
|
|
Item
|
Please fill in if applicable
|
|
Name of organization(a):
|
|
|
Name of organization (English):
|
China Energy Conservation Investment Company
|
|
Department:
|
Department of Planning
|
|
Acronym:
|
|
|
Acronym (English):
|
CECIC
|
|
Function within activity:
|
Financing service, and technical consultation on engineering and equipment.
|
|
Street:
|
Shichuan Daxia, No. 1 Fuwai Dajie Road
|
|
Post code:
|
100037
|
|
City:
|
Beijing
|
|
Country:
|
The People's Republic of China
|
|
Telephone:
|
86 10 68364930
|
|
Fax:
|
86 10 68364915
|
|
E-mail:
|
d-cecic@info.iuol.cn.net
|
|
WWW-URL:
|
|
|
Contact person (for this activity):
|
Mr. Guo Jiang
|
|
Surname:
|
Guo
|
|
First name, middle name:
|
Jiang
|
|
Job title:
|
Project Manager
|
|
Direct Tel:
|
86 10 68364930
|
|
Direct fax:
|
86 10 68364915
|
|
Direct E-mail:
|
d-cecic@info.iuol.cn.net
|
a) Organization includes: institutions, ministries, companies, non-governmental organizations,
etc. involved in the activity, i.e. research institutes associated with the project, auditors, government
agency closely following the activity.
|
Item
|
Please fill in if applicable
|
|
Name of organization(a):
|
|
|
Name of organization (English):
|
Tsinghua University
|
|
Department:
|
Institute of Nuclear Energy Technology/ Institute for Techno-Economics & Energy Systems
Analysis,
|
|
Acronym:
|
|
|
Acronym (English):
|
INET/ITEESA
|
|
Function within activity:
|
Technical consultation on the project development and implementation of AIJ project
|
|
Street:
|
Qinghua Yuan, Haidian District
|
|
Post code:
|
100084
|
|
City:
|
Beijing
|
|
Country:
|
The People's Republic of China
|
|
Telephone:
|
86-10-62772752 or 86-10-62783655
|
|
Fax:
|
86-10-62771150
|
|
E-mail:
|
liuds@tsinghua.edu.cn
|
|
WWW-URL:
|
http://www.inet.tsinghua.edu.cn
|
|
Contact person (for this activity):
|
Prof. Liu Deshun
|
|
Surname:
|
Liu
|
|
First name, middle name:
|
Deshun
|
|
Job title:
|
Professor, Deputy Director of Global Climate Change Institute, Tsinghua University
|
|
Direct Tel:
|
86-10-62772752, 62783655
|
|
Direct fax:
|
86-10-62771150
|
|
Direct E-mail:
|
liuds@tsinghua.edu.cn
|
3) Activity:
|
Item
|
Please fill in if applicable
|
|
General description :
|
In the AIJ project, 3~ 75t/h CFBC* boilers and 2~12 MW CHP power generation units will
be installed in the Shangqiu Thermal Power Plant to replace local old and low efficient coal fired
industrial boilers, while meeting existing and increasing heat demand by industrial heat load plus
space heating load. Moreover the CHP plant will meet the new electric power demand by Shangqiu
Aluminum Refinery Plant. Thus, with higher energy efficiency in heat and electricity supply by
CFBC/CHP, coal fuel could be saved and then CO2 emission will be reduced effectively.
|
|
Type of project :a)
|
Energy efficiency
|
|
Location (exact, e.g. city, region, State):
|
Shangqiu Thermal Power Plant, Shangqiu, Henan Province, China
|
|
Activity starting date:
|
May 2000, when AIJ project begin in operation
|
|
Expected activity ending date:
|
October 2020, when operation lifetime is due.
|
|
Stage of activity: b)
|
Mutually approved by both government and under the project construction stage
|
|
Lifetime of activity if different from ending date: c)
|
20 Year (* Suppose static baseline, so the lifetime of AIJ activity is set as project operation
lifetime)
|
|
Technical data: d)
|
Project scale: 3L 75t/h heat capacity + 2L 12MW CHP power caapcity, in which:
Boilers: 3 sets of CFBC 75T/h (68.9MW) boilers with 89.5% efficiency, steam parameter: 5.29
Mpa/450‹ C, De-SO2 rate: 80-85%.
Turbines: 2 units of 12 MW Sub-high pressure single extraction condenser turbine; inlet
steam parameter: 4.9 Mpa/435‹ C, parameter of steam extraction: 0.98 Mpa/ 272‹ C, 50
t/h (45.9MW) to max. 80 t/h (73.5MW).
Generators: 2 units of 12MW generator, power factor 0.8, outlet voltage 6.3 KV.
Annual heat supply: 1,316,420 GJ/yr.,
Annual electricity supply: 118.75 Gwh/yr.,
Annual energy saving: 32.91 Ktce/year,
Annual CO2 mitigation: 23.86 KT-C/year,
Total CO2 emission reduction over life time, physical amount: 0.47 MT-C, or 1.75
MT-CO2
|
a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy
efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation;
afforestation; fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker
fuels.
b) Circle the appropriate option.
c) Methodological work will be required to define lifetime of activities.
d) Methodological work will be required to determine for each type of activity what the minimum
data requirements are.
4) Cost (to the extent possible): 1US$=8.31 Chinese RMB; Base year: 1995
Share of Financing Contribution to the AIJ Project
|
Item
|
Amount
|
Chinese share
|
Norwegian share
|
|
104yuan
|
MUS$
|
104yuan
|
MUS$
|
104yuan
|
MUS$
|
|
Total capital investment, where
|
22001.5
|
26.48
|
18262.0
|
21.98
|
3739.5
|
4.5
|
|
i) Static capital investment
|
17832.5
|
21.46
|
14093.0
|
16.96
|
3739.5
|
4.5
|
|
Equipment cost
|
7181.5
|
8.64
|
3442.0
|
4.14
|
3739.5
|
4.5
|
|
Construction cost
|
5365.0
|
6.46
|
5365.0
|
6.46
|
0
|
|
|
Installation cost
|
3071.0
|
3.70
|
3071.0
|
3.70
|
0
|
|
|
Other cost
|
2215.0
|
2.67
|
2215.0
|
2.67
|
0
|
|
|
ii) Dynamic investment
|
3316
|
3.99
|
3316.0
|
3.99
|
0
|
|
|
Preparation for inflection
|
1137.0
|
1.37
|
1137.0
|
1.37
|
0
|
|
|
Loan interest in construction
|
2106.0
|
2.53
|
2106.0
|
2.53
|
0
|
|
|
Capital investment tax
|
14.0
|
0.02
|
14.0
|
0.02
|
0
|
|
|
Working Capital
|
59.0
|
0.07
|
59.0
|
0.07
|
0
|
|
|
iii) Power Connecting
|
300.0
|
0.36
|
300.0
|
0.36
|
0
|
|
|
iv) Thermal Power Pipeline
|
553.0
|
0.67
|
553.0
|
0.67
|
0
|
|
|
Expense for AIJ activities
|
415.5
|
0.5
|
|
|
415.5
|
0.5
|
|
i) AIJ project development
|
83.1
|
0.10
|
|
|
83.1
|
0.1
|
|
ii) AIJ project Management (MVR)
|
124.7
|
0.15
|
|
|
124.7
|
0.15
|
|
iii) AIJ methodology and policy study
|
83.1
|
0.10
|
|
|
83.1
|
0.1
|
|
iv) Capacity building, AIJ pilot phase
|
83.1
|
0.10
|
|
|
83.1
|
0.1
|
|
v) Administrative management, 10%
|
41.6
|
0.05
|
|
|
41.6
|
0.05
|
|
Total investment for AIJ project
|
22417.0
|
26.98
|
18262.0
|
21.98
|
4155.0
|
5
|
|
Item
|
1999
|
2000
|
Total
|
|
Cost of the project in MUS$:
|
Norwegian shared
|
1.616
|
3.384
|
5.00
|
|
Chinese shared
|
12.22
|
9.76
|
21.98
|
|
AIJ component in MUS$:
|
Norwegian shared
|
1.616
|
3.384
|
5.00
|
|
Chinese shared
|
12.22
|
9.76
|
21.98
|
|
US$ per avoided ton of CO2*
|
15.02
|
*: It is defined here as life cycle levelized incremental cost for CO2 emission reduction
against the baseline, see Table 1 of results in detail in Attachment and formula in Annex.
5) Mutually agreed assessment procedures:
|
Describe the procedures, including name of organizations involved a):
|
|
China and Norway agreed to start the cooperation on AIJ project in January, 1996.
SSTC and Norwegian Royal Ministry of Foreign Affairs signed the MOU to consider the Shangqiu
Thermal Power Plant as an AIJ pilot project on September 20, 1997.
MOST (former SSTC) and Norwegian Royal Ministry of Foreign Affairs signed the formal agreement on
Shangqiu Thermal Power Plant as an AIJ pilot project on November 17, 1998.
|
a) Please ensure that detailed contact information for all organizations mentioned is reported
under section A.2 above.
B. Governmental acceptance, approval or endorsement
Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance,
approval or endorsement by the Governments of the Parties participating in these activities, which shall be
shown as follows:
- a. In the case of joint reporting, the report is submitted by the designated national authority of
one participating Party with the concurrence of all other participating Parties as evidenced by attached
letters issued by the relevant national authorities;
- In the case of separate reporting, the reports are submitted separately by the designated
national authority of each and every participating Party. Information will only be compiled once reports
have been received from all participating Parties.
1) For the activity:
* This is the first report. Covering the activities at AIJ project feasibility study and AIJ project design
stage, and copies of letters of endorsement by each designated national authority of Parties are attached.
Describe:
|
The MOU to consider CFBC/CHP Project in Shangqiu Thermal Power Plant as Sino-Norway cooperation in
AIJ Pilot Phase under UNFCCC, has been signed by Chinese and Norwegian government. Then both
governments have signed the formal cooperation document.
|
2) This report is a joint report:
- Yes, forward copy of agreement/endorsement by the designated national authorities involved
-
Error! Bookmark not defined.No, this is a separate report. The reports are submitted
separately by the designated national authority of each and every participating party.
|
3) General short comment by the government(s) if applicable:
This is the first project report. The system boundary design and basic technical data were preliminary
checked by Chinese experts. The environmental benefits, methodological and technical issues were addressed
on the project specific basis. On the other hand, due to insufficient data
availability and lack of uniformed methodology guidelines the results
reported here are subject to modification. Hopefully with the further progress of the project
activities, more monitoring information on emissions and experiences in methodologies will be built up, and
therefore the subsequent reports could be updated later on.
C. Compatibility with and supportiveness of national economic development and Socio-economic and
environment priorities and strategies
|
Describe (to the extent possible) how the activity is compatible with and supportive of national
economic development and Socio-economic and environment priorities and strategies
|
|
Development of CFBC and CHP have been listed in the national key technology renovation plan for
energy saving in industrial and electric power sectors, and is also the important measure to be
taken by the national urban sustainable development strategy and Chinafs Agenda 21. So this
CFBC/CHP AIJ project must be supportive of the national environment and development strategies and
priorities in China.
Given the advantage of CHP in socio-economic and environmental benefits, the national district
heating development planning pay high attention to CHP development by installing 2 GW of new CHP
capacity annually up to 2000. Therefore as mentioned in the project final document, there are large
market potentials for small CFBC/CHP project development. And promotion of CHP development by the
AIJ project will certainly contribute to the sustainable development of urban district heating in
China.
|
D. Benefits derived from the activities implemented jointly project
Whenever possible, quantitative information should be provided. Failing that, a qualitative description
should be given. If quantitative information becomes available, it could be submitted using the update(s).
(If the amount of quantitative information is too large, the source could be indicated.)
|
Item
|
Please fill in
|
|
Describe environmental benefits in detail:
|
Emission of SOx, NOx, soot and smoke are reduced by the CFBC technology and the reduction of fuel
consumption.
The reverse osmosis desalination device is planned to be equipped with this project for
pre-desalination of the distributed water. This device is disseminated widely in China, its
application will greatly lengthen the regenera-tion circulating period of the traditional
ion-exchange device, and decrease the loss of distributed water. At the same time, it decreases the
discharge of acid and alkali.
|
|
Do quantitative data exist for evaluation of environmental benefits?
|
Yes.
The environmental protection measures will be underta-ken in the power plant under the
environmental quantity standard and regulation, as following:
1. A 120m high stack with 3m diameter of outlet will be built, in order to mitigate the impact of
flue gas emitted on the surrounding atmosphere environment.
2. The SO2 emission could be reduced effectively by the better performance of
de-SO2 at rate over 85% in-furnace of CFBC boiler. It is estimated that the maximum
daily averaged surface SO2 concentration is around 0.0266 mg/m3, which is
17.73% of the national standard value.
3. A effective dust and TSP removing system with efficiency up to 95-96%, will be installed in this
project.
It is estimated that the maximum daily averaged surface dust concentration is around
0.00236mg/m3, which is 1.57% of the grade II of the national standard value.
4. 57,000t of flyash and 10,000t of slack discharged by the thermal power plant, could be
re-utilized annually by two projects nearby: cement plant and a building material plant.
|
|
Describe social/cultural benefits in detail:
|
By providing district heat, the space heating for the household will be ensured; By providing
reliable electricity to the Aluminum Company, its productive operation could be maintained without
suffering from blackouts and shortages.
|
|
Do quantitative data exist for evaluation of social benefits?
|
No
|
|
Describe economic benefits in detail:
|
The heat supply unit cost and electricity generation unit cost are higher than that of baseline
case.
|
|
Do quantitative data exist for evaluation of economic benefits?
|
The incremental cost is up to 1.31 million US$ every year.
|
|
Description of the baseline or reference scenario, including methodologies applied:
|
(System Boundary)
In the given AIJ pilot project, the existing low efficient coal fired small industrial boilers will be
replaced by newly built Circulating Fluidized Bed Combustion (CFBC) boilers with 75t/h L 3 capacity and the
co-generation units with 12 MW L 2 capacity. They will also supply the electricity to the new industrial
users, who would otherwise purchase the electricity from local grid in absence of the AIJ project.
Therefore, the system boundary could cover the following processes and their CO2 emissions both
for baseline case and the AIJ Project: i) Electricity generation, ii) Industrial process heat supply, as
shown in the Fig. 1.
(Project Baseline)
In the AIJ pilot phase, the more direct and practical baseline approach is the project specific approach,
which is applicable to the current AIJ project as shown below.
Heat supply baseline
|
Fig. 1 The system boundary of the CFBC/CHP AIJ project in Shangqiu Thermal Power Plant
In the context of the AIJ project, about 24 small and decentralized industrial boilers, including
4t/h (3.7MW), 6.5t/h (6.0MW), and 10t/h (9.2MW) units with total 148.5 t/h (136.4MW) of the
processing heat supply capacity will be replaced, and 102 t/h (93.7MW) of newly increased
industrial heat load will be met with district heating supplied by the AIJ project. Thus, the heat
supply baseline case should be determined as i) the energy intensity for such coal fired boilers,
ii) the CO2 emission levels, in average, of those conventional industrial boilers and
space heating boilers, and iii) unit heat supply costs. Based on the technical and economic
parameters provided by The Shangqiu Thermal Power Plant for the 4T/h, 6.5T/h and 10T/h industrial
boilers, the heat supply baseline are calculated.
Electricity supply baseline
The AIJ project is planned to supply electricity to Shangqiu Aluminum Refinery Plant to meet its
load demand for the newly increased refinery capacity of 15000 T/year. Although there is local
county power plant in operation with 48 MW capacity only, it could not provide additional
electricity supply. So in absence of the CFBC/CHP AIJ pilot project, the Henan provincial power
grid, would act as electricity supply baseline.
|
|
(Results)
For heat supply baseline
i) The averaged coal intensity of heat supply for such coal fired boilers: 51.89 kgce/ GJ,
ii) The related average CO2 emission intensity: 140 kg-CO2/GJ.CO2,
and
iii) The averaged heat cost per unit heat supply: 1.98 US$/GJ.
For electricity supply baseline
Based on statistical data provided by Henan provincial electric power bureau,
i) The average coal intensity per Kwh supply : 533 gce/kwh, and
ii) The CO2 emission intensity: 1.42 kg-CO2/kwh, and
iii) Electricity supply cost: US$ 3.37 Cent/Kwh.
|
|
2) Estimated emissions with the activity:
|
|
Description of the scenario, including methodologies applied:
|
|
(AIJ project)
3L 75T/h (3L 68.9MW) of CFBC boilers and 2 L 12 MW of co-generation units at Shangqiu Thermal Power
Plant. The annual heat supply is 1.316 10K GJ/yr., and the annual electricity supply is 107.11
Gwh/yr. Based on the technical and economic specification in the project feasibility study report
and project design report, the energy efficiency, CO2 emission intensity and the unit
cost for the heat supply and electricity is calculated respectively. The special attention was
given to the energy share and cost share between heat and electricity supply. In particular, the
electricity consumption of self service for the CHP power plant was carefully divided into two
parts for heat and electricity supply respectively.
|
|
(Results)
For heat supply of AIJ project
i) The coal intensity of unit heat supply for the CFBC/CHP project: 39.71 kgce/GJ,
ii) The related CO2 emission per unit heat supply: 107.61 kg-CO2/GJ, and
iii) The heat cost per unit heat supply: 2.549 US$/GJ.
For electricity supply of AIJ project
i) The coal intensity per kWh supply for the CFBC/CHP project: 375.5 gce/kwh, and
ii) The related CO2 emission intensity: 1.00 kg-CO2/kwh, and
iii) The electricity supply cost: US$ 3.85Cent/Kwh.
|
3) Calculation of GHG emission reduction with the project activities
|
TAER = TAEBaseline-TAEAIJ
TAEBaseline = (AES L SEBaseline + AHS L SHBaseline )*EF
TAEAIJ = (AESL SEAIJ+ AHSL SHAIJ )L EF
of which
TAER: total annual emission reduction,
TAEBaseline: total annual emission for baseline
TAEAIJ: total annual emission for AIJ project
AES: annual electricity supply, 107.11Gwh/yr
SEBaseline: coal intensity for unit electricity supply in baseline, 533 gce/Kwh
AHS: annual heat supply, 1,316,420 GJ/yr
SHBaseline: coal intensity for unit heat supply in baseline, 51.89 Kgce/GJ
SEAIJ: coal intensity for unit electricity supply in AIJ project, 375.5 gce/Kwh
SHAIJ: coal intensity for unit heat supply in AIJ project, 39.71 Kgce/GJ
EF: emission factor, 0.725kg-C/kgce.
So, TAEBaseline = 90.92 KT-C/year, or 333.37 KT-CO2/year,
TAEAIJ = 67.06 KT-C/year, or 245.88 KT-CO2/year, and
TAER = 23.86 KT-C/year, or 87.48 KT-CO2/year.
|
Fill in the following tables as applicable:
Summary table: Projected emission reductions (unit: 1,000ton CO2/year):
|
GHG
|
1999
|
2000
|
2001
|
2002
|
2010
|
|
A) Project baseline scenario
|
CO2
|
|
166.69
|
333.37
|
333.37
|
333.37
|
|
CH4
|
|
|
|
|
|
|
N2O
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
B) Project activity scenarioa)
|
CO2
|
|
122.94
|
245.88
|
245.88
|
245.88
|
|
CH4
|
|
|
|
|
|
|
N2O
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
C) Effect ( A-B )
|
CO2
|
|
43.74
|
87.48
|
87.48
|
87.48
|
|
CH4
|
|
|
|
|
|
|
N2O
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
D) Cumulative effect
|
CO2
|
|
43.74
|
131.22
|
218.7
|
918.54
|
|
CH4
|
|
|
|
|
|
|
N2O
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
Note: The calculations above are based on the project operation schedule as following:
a) Remark on indirect GHG leakage: The indirect leakage could be caused by "rebound"
behavior of energy consumers. For instance, the additional energy supply with cheap cost would lead to over
energy consumption by the energy consumers, and lead to leakage of CO2 emission reduction.
However it should be stressed that there have already been the shortage of electricity supply, which
constrains the full operation of the local enterprises and the normal electricity consumption of households
by cutting down electricity service frequently. Hence the current increase of electricity supply and
consumption by the AIJ project could help the consumers to return the electricity consumption level to
their expected status. Thus such behavior is by no means of leakage. The similar explanation could be
applied to the space heating supply case.
Summary table: Actual emission reductions:
(it will be reported later when the project is put into operation )
F. Additionality to financial obligations of Parties included in Annex II to the Convention within the
framework of the financial mechanism as well as to current official development assistance flows
Please indicate all sources of project funding .
|
Category of funding
(For each source one line)
|
Amount
(Million US dollars)
|
|
a. Owner's capital fundsF
|
6.05
|
|
b. Owner-self financing
|
4.98
|
|
c. Special AIJ fund provided by Norwegian Royal Ministry of Foreign Affairs
|
5.00
|
|
d. Local Bank loans
|
9.68
|
G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to
other Parties, particularly developing country Parties, to enable them to implement the provisions of the
Convention. In this process, the developed country Parties shall support the development and enhancement of
endogenous capacities and technologies of developing country Parties
|
Transfer of environmentally sound technologies and know-how
|
Describe briefly
|
|
No
|
Domestic technologies are used.
|
Endogenous capacity supported or enhanced:
|
Endogenous capacity
Name of organization1)
|
Development (DEV) / Enhancement (ENH)
|
Describe briefly
|
|
INET/ITEESA, Tsinghua University
|
ENH
|
Capacity building on the AIJ project development and on the methodological issues are enhanced.
|
|
Shangqiu Thermal Power Plant
|
ENH
|
By installing automatic monitor and control system, the operation perfor-mance of the power plant
will be enhanced and CO2 emission reduction could be ensured and well measured
|
1) Please ensure that detailed contact information for all organizations listed are reported
under section A.2 above.
H. Additional comments, if any, including any practical experience gained or technical difficulties,
effects, impacts or other obstacles encountered
Fill in as appropriate:
1) Any practical experience gained:
|
By dealing with the project specific issues raised in the CO2 emission intensity for the
combined heat and power generation process, the practical experience in determining environmental
benefits of the CO2 emission reduction is gained from methodology point of view.
|
2) Technical difficulties:
|
Meanwhile the technical difficulties in determining the dynamic baseline are encountered.
|
3) Negative impacts and/or effects encountered:
Whenever possible, quantitative information should be provided. Failing that, a qualitative description
should be given. If quantitative information becomes available, it could be submitted using the update(s).
(If the amount of quantitative information is too large, the source could be indicated)
|
To be identified after the AIJ project is put into operation.To to
|
4) Impacts encountered:
|
To be identified after the AIJ project is put into operation.
|
-
5) Other obstacles encountered:
|
Foreign CFBC/CHP technology can not be accessed due to financial obstacles.
|
6) Other:
Attachment
Table 1 The cost-benefits analysis on CO2 Mitigation by AIJ Pilot Project
Options: Shangqiu CHP Power Plant
|
Item
|
Unit
|
data
|
|
Project scale: CFBC boiler
|
T/h (MWj
|
75 x 3(3~68.9)
|
|
Turbine and generator unit
|
MW
|
12MW Single Extraction L 2
|
|
Total investment cost
|
MUS$
|
28.47
|
|
Heat supply baseline*: 8 industrial users, 4t/h, 6.5t/h and 10t/h small industrial boilers with
energy efficiency: 50-60%
|
|
Baseline coal consumption per unit heat supply
|
Kgce/GJ
|
51.89
|
|
Baseline unit heat supply cost
|
US$/GJ
|
1.98 (16.45 Yuan /GJ)
|
|
Electricity supply baseline**
|
|
Henan Grid
|
|
Baseline coal Consump. per unit electricity supply
|
gce/Kwh
|
533
|
|
Baseline unit elec. supply cost
|
US$/Kwh
|
0.0337
|
|
AIJ CFBC 75t/h energy efficiency:
|
89.5%
|
|
AIJ coal consumption
per unit heat supply
|
Kgce/GJ
|
39.71/- 23.5%
|
|
AIJ coal consumption
per unit electricity supply
|
gce/Kwh
|
375.5/-29.5%
|
|
AIJ unit heat supply cost
|
US$/GJ
|
2.549
|
|
AIJ unit elec. supply cost
|
US$/Kwh
|
0.0385
|
|
AIJ annual heat supply
|
GJ/yr
|
1316420
|
|
AIJ annual elec. generation
|
Gwh/yr
|
118.75
|
|
AIJ annual elec. supply
|
Gwh/yr
|
107.11
|
|
AIJ annual energy saving
|
KTce/year
|
32.91
|
|
CO2 mitig. per unit heat supply.
|
kg-CO2/GJ
|
32.39
|
|
CO2 mitig. per unit elec. supply.
|
kg-CO2/Kwh
|
0.42
|
|
Incremental cost per unit
|
US$/T-C
|
55.07
|
|
CO2 mitigation
|
US$/T-CO2
|
15.02
|
|
AIJ annual CO2 mitigation
|
KT-C/year
|
23.86
|
|
KT-CO2/yr
|
87.48
|
|
Annual Incremental Cost for CO2 mitigation
|
MUS$/yr
|
1.31
|
|
Life cycle incremental expenses for CO2 mitigation
|
MUS$
|
11.19
|
|
Life cycle CO2 emission mitigation by T-C (discounted)
|
MT-C
|
0.20
|
|
Life cycle CO2 emission mitigation by T-CO2 (discounted)
|
MT-CO2
|
0.74
|
|
Emission reduction and its incremental cost calculated by equivalent static approach
|
|
Equivalent static incremental
|
US$/T-C
|
23.46
|
|
cost per unit CO2 reduction
|
US$/T-CO2
|
6.40
|
|
Total CO2 emission reduction
|
MT-C
|
0.47
|
|
over life time, physical amount
|
MT-CO2
|
1.75
|
*: Data for heat supply baseline are provided by Shangqiu CHP Power Plant
-
**: Data for electricity supply baseline are provided by Henan electric power authority
Annex The methodology of the incremental cost of CO2 emission reduction
The incremental cost of CO2 emission reduction (ICER) caused by the AIJ project is
critical to the cost effectiveness of the environmental benefits.
The ICER is defined as life cycle averaged incremental cost for CO2 emission reduction,
as following:
ICER =
, (1)
where
ICERij =
, (2)
is the incremental cost per unit CO2 emission reduction for the ith year and
the jth product to be caused by the AIJ project when putting into operation. Of which,
=
, (3)
is the net CO2 emission reduction per unit of the jth product for the
ith year, which is the difference of the energy intensity per unit of the jth product between
baseline case (
) and the AIJ project (
), multiplied by CO2 emission factor for the given fuel (
), And
=
, (4)
is the incremental cost per unit of the jth product for the ith year,
which is the difference of the unit cost of the jth product between the AIJ project (
) and baseline case (
).
N, m is the life time (year) and the number of product types for the AIJ project respectively. Here N = 20
year and m = 2 (here refer to heat and electricity), and supposing the prices of the products is the same
between baseline case and the AIJ project. And r is the discount rate at given value 10%.
It should be pointed out that given the criteria of additionality and long-term environmental benefits for
the AIJ pilot project, the incremental cost for the CO2 emission reduction should be evaluated
in the life cycle (dynamic over life time) and the marginal cost sense