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ANALYZING THE ACTIVITIES OF TOWNSHIP DEVELOPMENT PROJECTS THAT GENERATE CDM BENEFITS AND THE PROCESS OF ELIGIBILITY COMPLIANCE

PART 1 ACTIVITIES OF TOWNSHIP DEVELOPMENT PROJECT

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ANALYZING THE ACTIVITIES OF TOWNSHIP DEVELOPMENT PROJECTS THAT GENERATE CDM BENEFITS AND THE PROCESS OF ELIGIBILITY COMPLIANCE

CHAPTER 1.1 INTRODUCTION PECULIARITIES OF TOWNSHIP PROJECTS

The objective of the thesis is to analyze the activities of township development projects that generate CDM benefits and the process of eligibility compliance. 5 township projects have been studied for the project. Clean Development Mechanism (CDM) which enables projects that reduces emissions in developing country to be funded, have been aligned with these township projects.

Figure 1. Five Township Projects shown location wise on the map of Pune

Megapolis city

Celstial city

Amanora Park

Magarpatta city

Nanded city

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PECULIARITIES OF TOWN SHIP PROJECTS.

Table 1 Components of Township Projects Sr.no. Components Remarks Housing for all categories of people is provided. Bungalows, row houses, 1. Housing 3BHK, 2BHK, 1BHK, studio apartments and service flats are common components. The success of township projects Commercial spaces and office buildings largely depends on availability of commercial spaces in the vicinity housing colonies. The concept of walk to work thus becomes practical. Central Garden of few acres along with 3. Garden City separate internal gardens for every neighbourhood housing ranging from 0.5 to 2 acres. Apart from general commercial spaces Hi-tech commercial area for 4. Cyber city- energy efficient buildings information technology enabled Services is provided. These kinds of buildings are a boost to energy efficient buildings. Convenient shopping & other essential 5. Shopping services for residents and office goers within the township. Broad asphalted roads with landscaped 6. Internal Roads footpaths on either side encouraging walk thru the township. Saving on fuel and money.

2.

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Extensive network of jogging & cycling tracks throughout Township 7. Jogging/Cycle Tracks project. Provided a greener environment to the residents, and is also a USP of township project. Round-the-clock Centralised Security 8. Security System. This is also a USP of township project. Eco-Friendly sustainable garbage disposal system. This leads to solid 9. Garbage Disposal waste management system and STP formulation. This has been taken up as a part of study in the thesis. Maintenance and upkeep will be looked 10. Property Management after by township Property Management Division. Education Facilities from primary 11. Education school to higher education with large Playgrounds. Wonder Golf (in AMANORA), 12. Sports Swimming Pool, Tennis Academy and Gymnasium. 13. Health Facilities Well equipped hospital for medical aid round-the-clock The township has been planned to be 14. Broadband Connectivity enabled with Broadband and Wi-Fi and Wi Max to some extent.

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Table 2 Detail of Township Projects Township project Magarpatta Satish City Magar Mundwa road, hadapsar pune Nanded City Satish Magar Sinhagad road,pune 2018cr. Not disclosed Promoters Location Cost of project Not disclosed Date of Major

completion stakeholders 21-22 march 2013 Satish magar, his 5 brothers and local farmers Satish magar, his 5 brothers and local farmers

Amanora Park Celestial City

City Group Supreme India Land promoters

Hadapsar pune Ravet Aund road pune

Not disclosed Not disclosed

Not disclosed Not disclosed

City Group

Pharande Space. Rama Group.

Megapolis City

Aninash Bhosle

Hinjewadi, pune

Not disclosed

Not disclosed

Avinash Bhosale Group. Kumar Properties.

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CHAPTER 1.2 ACTIVITIES

Components of township from sustainability point of view encompasses features like Green gardens, Less polluted roads with fewer vehicular traffic, Solar water heating (no use of electricity), Solid waste management system, Sewage treatment plant, Initiatives like CFL lighting and rain water harvesting, Efficient building system, Use of environment friendly construction materials

The developer incurs extra cost to come up with these kind of facilities which may or may not prove to be financial binomial. The customer is also sceptical towards paying extra premium cost so as to gain benefit from these sustainable initiatives. The CDM assistance shall, make the sustainable initiative taken up by the developer or promoter financially valuable. UNFCCC (United Nations Framework Convention on Climate Change) has given much opportunity through CDM. In this one has to reduces green house gases (GHGs) emission through a subjective project, few examples are :-

1.2.1

Solar water heating for residential and office building usage which will not use electricity. This will save electricity which is produce mostly via thermal or gas based power plant which emits carbon dioxide into the atmosphere. Here with the help of CDM the developer can claim carbon credits and subsequently pass on the benefits to its customers.

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1.2.2

Solid waste management:- In housing complexes and office spaces for various kind of garbage and residue such as wet and dry or organic and inorganic is need of the hour. The solid waste can be composted but that emits another harmful GHG Methane. The CDM assistance here empowers a developers to come up with solid waste management system for the township which can be feed a bio-gas plant, prepare manure and reduced GHG(CH4,CO etc) exposure to atmosphere.

1.2.3

Sustainable Systems Township projects will implement numerous techniques for conservation and betterment of the environment. Various Sustainable Energy Systems will be used on a huge scale to reduce Global Warming.

1.2.4

Rain water harvesting is a much needed initiative from the real estate developers (township developers) so as to harness rain water as a resource so as to replenish underground water table. The context of CDM has not been explored for this topic in the present thesis.

1.2.5

Sewage treatment plant has become a more of necessity for housing complex concentrated in a small area. Thus, township needs a STP which can be further beneficial for methane recovery and power generation. CDM assistance under small scale project activity is available for this. This system has been taken up in this thesis.

1.2.6

CFL lighting system this replaces incandescent lights (ICL). ICL produces less luminance for same wattage that is used by CFL. This reduces overall electricity consumption of any residence or commercial building. This property can be harness to claim CDM benefit, earn carbon credits. This will help the initiative of converting from ICL to CFL with some financial assistance. Thus the initiator or promoter and consumer or resident both shall be mutually benefited and contributed to the environment.

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1.2.7

Energy efficient buildings are a norm for a large commercial or office buildings these days. The initiatives of LEED and GRIHA have also been encouraging this. The assistance from CDM can be availed by harnessing the HVAC system, lighting system, water recycling and few more techniques. The carbon credits thus earned via CDM will encourage the promoters so as to invest extra cost and comply with these advancements.

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CHAPTER 1.3 SCOPE IN INDIA

Apart from Pune, Township Projects are coming in big way in different places all over India. Integrated Township Projects have found many destinations such as following.

Delhi and NCR ---- Jaypee Greens, DLF City and IERO Township. Mumbai ------------- New Haven Vasind, HDIL Township and Lodhas Golden Town. Hyderabad --------- Lanco Hills, NCC Township and Excel Township Chennai ------------- Margs Township, L & T Tinsel Town and Kalpathi Township. Kolkata ------------- Ultratech Town, Sonar Bengal and Bengal Garden. Bangalore ---------- Bidadi Township, Alliance Township and DLF City. Ahmadabad -------- Ozone City, Sahara City and Netz Capital City. All these township have similar features and has large population encapsulated within. If the developers show interest from the concept stage and design properly many of the benefits from CDM can be gained. CDM has enabled townships like Magarpatta City in Pune to financially sustain initiatives like solar water heating and solid waste management. On similar lines other township can envisage sustainable initiatives and make financially viable changes. These initiatives bears extra cost which the informed residents are ready to pay the to avail the long term benefits coming through these environmental friendly projects.

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CHAPTER 1.4 PRESENT TREND

The integrated townships along with office spaces are attracting much needed investment and there is growing demand from consumers side for the same. Promoters are eyeing various initiatives to attract customers based on environmental friendly and green building concepts. LEED ( Leadership in Environment and Energy Demand), GRIHA ( Green Rating for Integrated Rating Assessment ) and CDM (Clean Development Mechanism) are some of the opportunities being harnessed by developers.

1.4.1 Leadership in Energy & Environmental Design (LEED) is an internationally recognized green building certification system, providing third-party verification that a building or community was designed and built using strategies intended to improve performance in metrics such as energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts. 1.4.2 Clean Development Mechanism (CDM) is one of the "flexibility"

mechanisms defined in the Kyoto Protocol (IPCC, 2007).It is intended to meet two objectives: (1) to assist parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC), which is to prevent dangerous climate change; and (2) to assist parties included in Annex I in achieving compliance with their quantified emission limitation and reduction commitments (greenhouse gas (GHG) emission caps)

1.4.3 Green Rating for Integrated Rating Assessment (GRIHA) , an acronym for Green Rating for Integrated Habitat Assessment, is the National Rating System of India.

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It has been conceived by TERI and developed jointly with the Ministry of New and Renewable Energy, Government of India. It is a green building 'design evaluation system', and is suitable for all kinds of buildings in different climatic zones of the country. Figure 2 LEED Projects undertaken in India
164 135 108 80

40 10 2004 17

2005

2006

2007

2008

2009

2010

Figure 3 CDM Projects undertaken in India


45

35 27 22 19 15 29

2004

2005

2006

2007

2008

2009

2010

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PART 2 GENERATING CDM BENIFITS

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CHAPTER 2.1 INTRODUCTION - DEFINITIONS

2.1 .1 United Nations Framework Convention on Climate Change (UNFCCC) UNFCCC was opened for signature at the 1992 United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro (known by its popular title, the Earth Summit). On June 12, 1992, 154 nations signed the UNFCCC. The parties agreed in general that they would recognize "common but differentiated responsibilities," with greater responsibility for reducing greenhouse gas emissions in the near term on the part of developed/industrialized countries, which were listed and identified in Annex I of the UNFCCC and thereafter referred to as "Annex I" countries. India signed the UNFCCC on 10 June 1992 and ratified it on 1 November 1993. The Ministry of Environment and Forests is the nodal agency for climate change issues in India. It has constituted Working Groups on the UNFCCC and Kyoto Protocol. Work is currently in progress on India's initial National Communication (NATCOM) to the UNFCCC. The Kyoto Protocol to the UNFCCC was adopted in 1997 and requires developed countries and economies in transition listed in Annex B of the Protocol, to reduce their GHG emissions by an average of 5.2% below 1990 levels. Article 12 of the Kyoto Protocol provides for the Clean Development Mechanism (CDM). India has undertaken numerous response measures that are contributing to the objectives of the United Nations Framework Convention on Climate Change (UNFCCC). The Clean Development Mechanism (CDM), provided for under Article 12 of the Kyoto Protocol, enables developing countries to participate in joint greenhouse gas (GHG) mitigation projects. Under this Protocol, Annex I countries (developed countries and
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economies in transition) are required to reduce GHG emissions to below their 1990 levels. The CDM enables these countries to meet their reduction commitments in a flexible and cost-effective manner. Investors profit from CDM projects by obtaining reductions at costs lower than in their own countries, the gains to the developing country host parties are in the form of finance, technology, and sustainable development benefits. Projects starting in the year 2000 are eligible to earn CERs if they lead to "real, measurable, and long-term" GHG reductions, which are additional to any that would occur in the absence of the CDM project. This includes afforestation and reforestation projects, which lead to the sequestration of carbon dioxide. It has been decided that the following types of projects would qualify for fast-track approval procedures: Renewable energy projects with output capacity up to 15 MW. Energy efficiency improvement projects which reduce energy consumption on the supply and/or demand side by up to 15 GWh annually Other project activities that both reduce emissions by sources and directly emit less than 15 kt CO2 equivalent annually. The CDM is be supervised by an executive board, and a share of the proceeds from project activities will be used to assist developing countries in meeting the costs of adaptation to climate change.

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Specification a) Small Scale (SSC) Projects For the projects defined as follows, the simplified modalities and procedures can be applied:

Type I: Renewable energy project activities with a maximum output capacity equivalent to up to 15 MW (or an appropriate equivalent).

Type II: Energy efficiency improvement project activities which reduce energy consumption, on the supply and/or demand side, limited to those with a maximum output of 60 GWh per year (or an appropriate equivalent).

Type III: Other project activities limited to those that result in emission reductions of less than or equal to 60 kt CO2 equivalent annually.

b) The project design document (PDD) This is the key document involved in the validation and registration of a CDM project activity. PDD must include description of project, Baseline, Duration, Credit period, environment impacts of the projects etc. c) A Program of Activities (PoA) This is a voluntary coordinated action by a private or public entity which coordinates and implements any policy/measure or stated goal (i.e. incentive schemes and voluntary programs), which leads to GHG emission reductions or increase net greenhouse gas removals by sinks that are additional to any that would occur in the absence of PoA. d) Greenhouse gas emissions (GHGs) The main greenhouse gases are water vapor, carbon dioxide, ozone, methane, nitrous oxide, and the chlorofluorocarbons (CFCs). Apart from CFCs all of these gases occur naturally. Together, they make up less than 1% of the atmosphere. Greenhouse gases covered by the Kyoto Protocol are Carbon dioxide (CO2), Methane (CH4), Nitrous oxide

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(N2O), Hydro fluorocarbons (HFCs), Per fluorocarbons (PFCs), and Sulphur hexafluoride (SF6) (Kyoto Protocol, Annex A.) d) Certified Emissions Reductions (CERs) This is the term used for the credits or units that are issued by the CDM Executive Board for CDM project emission reductions. One CER represents one tonne of CO2 equivalent which may be sold on the international emissions market. Calculating Carbon Offsets or Certified Emission Reduction. In line with the PDD for the project activity the total number of CERs (tCO2e) is calculated from the following equation: ERy = BEy PEy Where: ERy = Emission reduction in year y, tCO2e BEy = Baseline emissions in year y, tCO2e PEy = Project emissions in year y, tCO2e a) Baseline emissions BEy = EGy x EFy Where: EGy = Net electricity generated in year y, MWh EFy = Grid emission factor which has been determined in the PDD ex-ante and is therefore fixed for the crediting period at 0.972 tCO2/MWh b) Project emissions ( Example)

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PEy = Qi x COEFi x NCVi x OXID Where: Qi = Mass of fossil fuel combusted, t COEFi = Emissions factor of fossil fuel combusted, tCO2/TJ NCVi = Net calorific value of fossil fuel combusted, TJ/t OXID = Oxidation factor, % Following monitored data are further needed to complete the calculation process. a) Consumption of fossil fuel and (b) Monitored energy data.

e) Clean Development Mechanism (CDM) The CDM is established under Article 12 of the Kyoto Protocol. The CDM enables projects that reduce emissions in developing country parties to be funded by entities in industrialized countries in return for credits for any emissions reductions that result from the project. The objective of the CDM is to assist developing country parties in promoting national development and to assist developed countries to meet their Kyoto Protocol greenhouse gas reduction targets. f) Project Boundaries The project boundary encompasses all emissions from human sources under the control of the project participants that are significant and reasonably attributable to the CDM project activity. It is important to set these parameters in order to measure the degree to which emissions of been reduced due to a CDM activity. Emissions from a project that go beyond the projects boundary are called leakage.

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g) Additionality A CDM project must provide additional reductions in emissions than would not have occurred without the project. In practice, this means that a baseline of what would have occurred without the project must be defined, and any emission reductions additional to this baseline level of emissions can yield CDM credits. f) Validation Validation is the process of determining that the project is eligible to be registered as a CDM project, by confirming that the project meets the requirements of the CDM. Tools for Validation Validation is the process of determining that the project is eligible to be registered as a CDM project, by confirming that the project meets the requirements of the CDM. 2.3.1 Validation Concerns CDM Consideration Methodology and Tools Applicability Baseline Calculation Project Emissions Additionality Monitoring Plan Project Starting Date Staring Date of Crediting Period Financial Calculations Technology Procedures Supporting Documents Eligible project types

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Validation process The Executive Board established a sequence of steps for the validation of a proposed CDM project activity. In summary, in order to validate a project activity, the DOE must: 1. Make the CDM-PDD publicly available and receive comments from stakeholders; 2. Check that validation requirements have been met; 3. Inform project participants of the decision; Submit a request for registration to the Executive Board (if the proposed project activity is determined to be valid); and make the validation report publicly available. g) Baseline A baseline for a CDM project activity is a hypothetical reference case, representing the volume of greenhouse gases that would have been emitted if the project were not implemented. h) Approved Methodologies (AMS) Once a methodology has been approved, it may be used by other project proponents for similar project activities. However, in conducting validation, a designated operational entity (DOE) may need to submit a request for clarification relating to the application of approved methodologies to proposed new project activities. i) Debundling This is defined as the fragmentation of a large project activity into smaller parts. A small-scale project activity that is part of a large project activity is not eligible to use the simplified modalities and procedures for small-scale CDM project activities. j) Financing Structure

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Figure 5. Financing Structure

The following general observations may be made (while recognizing that the diversity of CDM projects means that there are exceptions to virtually any general rule):
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The CDM-specific project costs are usually smaller than the non-CDM specific project costs; The largest cost is incurred at construction (including purchase of plant and equipment, etc); Annual operation costs are usually low in relation to construction costs, although they may exceed construction costs over the lifetime of the project. Costs during the planning stage are usually financed by equity. Costs during construction may be financed in a variety of ways for example by various combinations of equity and debt. CDM projects may have conventional revenue streams (such as electricity sales, or sales of other outputs) in addition to CER revenues. Costs during operation are covered by the conventional revenue (if any) and CER revenue of the project. Remaining conventional and CER revenues are used first to repay debt (if any) and lastly to provide a return on equity.

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Figure 6 Need for Financing/Additionality

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CHAPTER 2.2 GENERATING CDM BENEFITS FROM TOWNSHIP ACTIVITIES

2.2.1

SOLAR WATER HEATERS

This comprises renewable energy technologies that supply users with thermal energy that displaces fossil fuel use. These units include technologies such as solar thermal water heaters and dryers, solar cookers, energy derived from renewable biomass and other technologies that provide thermal energy that displaces fossil fuel. The incentive from the CDM has been considered by Magarpatta Township Development and Construction Company Limited and Amanora Park Town and Celestial City and Megapolis and Nanded City depending upon that it will be that, although it was possible to take the Project Activity capital cost from the residents (end users) of the township, the township will provide the Solar Thermal Water Heating Facility to the residents, free of capital cost and as an Additional Infrastructure Facility of the township. No financial subsidies from any government department were taken in expectation of the CDM incentive. Thus, the funds obtained in the form of CDM incentive will be utilized for covering up a part of the capital cost of the project, addition of new solar systems, maintenance and operations of the project to keep it functioning continuously. No other source of revenue is there expect CER revenue for the project activity. This project is a real live example of how clean solar energy usage can be reached to a large mass of people directly, creating environmental awareness in them and making them an integral part of the fight against the global warming.

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2.2.2

SOLID WASTE MANAGEMENT

Prevention of Green House Gases (GHGs) emission from the Daily Solid Waste generated in the township by implementing and operating the Integrated Solid Waste Management, Processing and Utilization System (ISWMPU) System, which uses blend of technologies and processes such as Solid Waste Segregation System, Biogas plant with Power Generation Facility, Vermin Composting, Organic Solid Waste Converter System and Utilisation of the output compost for the in-house landscaping and soil stabilisation at a township. Electricity Generation from Waste The Project activity through its Biogas Plant based Power Generation Unit will generate the amount of electricity that will be enough to make the entire ISWMPU System Self Electricity Sufficient with surplus electricity generated will be used to light up the lamps at the adjacent garden, streets in the night time and to pump the water for the irrigation in the day time. Decentralization of Solid Waste Management in Cities The Project Activity will ultimately reduce the load of SWM on the already stressed Pune Municipal Corporation for the particular locality. Social Sustainable Development The ISWMPU System starts by making residents of the township more responsible and mannered individuals by making them separate the Solid Waste at source into Dry Garbage (DG) and Wet Garbage (WG) using separate Waste Collection Bins (WCB), provided and maintained by the township, and handling it over to ISWMPU Mechanism for its management, processing and in-house utilization of the output compost. This is a practical example of how an individual can be encouraged to contribute in the sustainable development of the locality by providing basic facilities and systems in place. A state-of-art ISWMPU Centre is functional at Magarpatta City.

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2.3

SEWAGE TREATMENT PLANT

The following contribution to the sustainable development through the execution of the project in the township is expected: Combat global warming by the effective utilization of sewage gas as a renewable energy source The protection of the environmental pollution by restraint on peripheral diffusion of emitted odour by means of the closed structure. Effective utilization of land by space saving with a great help from of anaerobic processing method. Against energy cost such as fossil-fuel consumption required for the power supply to the grid can energy-saving effect be reduced to the extent that the power generation by the project is supplied for captive consumption. The technology for the biogas power generating equipment. The project can disseminate throughout India. It becomes clean technology demonstration project, and there is effect of that disseminate. Methane recovery in wastewater Treatment. The project activity involves the measure that recovers methane from biogenic organic matter in wastewater by means of Introduction of biogas recovery and combustion to an existing sludge treatment system at Amanora and Celestial City plants. The recovered biogas would be utilized as a fuel to run gas engine to produce electrical energy that would displace grid electricity to run the sewerage system. The project activity falls within the small-scale rating as the measures are limited to those that result in emission reductions of less than 60 kt CO2 annually. Grid connected renewable electricity generation. The project activity involves installation of 1MW sewage gas based power plants generated during treatment of sewage of township. The sewage gas would be utilized as a fuel to run gas engine to produce electrical energy that would displace grid electricity to run the sewerage system. The project activity falls within the small-scale rating as the generating capacity will approx 1MW for one township, i.e. below the 15 MW as outlined in the methodology.

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2.2.4

CFL LIGHTING SYSTEM

In CFLs, the electrical current from the ballast flows through the gas, causing it to emit ultraviolet radiations. The phosphor coating converts the ultraviolet radiation emitted to visible light spectrum. CFLs are much more energy efficient than traditional light bulbs such as ICLs. The efficacy of ballast-integrated CFLs typically ranges from 35 to 80 lm/W which is 4 to 5 times higher than an equivalent ICLs. Consequently, CFLs consume only 1/4th to 1/5th of the energy used by ICLs to provide the same level of light.8 CFLs that shall be are distributed to household shall conform to the National technical specifications stipulated by the Bureau of Indian Standards (IS 15111). The township site construction management team can coordinate the Small-Scale Programme of Activities (SSC-PoA) and shall support the CFL implementation of the CDM. As in case of Magarpatta City, under this scheme quality long-life CFLs would be distributed to residential households in exchange of an incandescent lamp (ICL). To bridge the cost differential between the market price of the CFLs and the price at which they are distributed to households, the Clean Development Mechanism (CDM) is harnessed. The township would cover the project cost through sale of GHG emission reductions achieved in their respective areas. 2.2.5 ENERGY EFFICIENT BUILDING The study from various township sites is a Comparison of various energy efficiency measures adopted in Energy efficient building which will impact the Design Heat Load and Power Consumption of the HVAC System. Fixed reduction in Heat Load and Power Consumption of HVAC system of Energy efficient building. Heat Load and Power Consumption of the HVAC System based on the demand. Variable reduction in Heat Load and Electricity Consumption of HVAC system of Energy efficient building Exterior wall construction. Lighting Load and Power Consumption of the Lighting System based on the equipment selection and demand.
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As discussed at the township sites in Energy efficient building, the thermal resistance of the building envelope can be increased, thereby reducing the unwanted heat loss and heat gain from the outside. This in turn reduces the energy required for air conditioning in the building. Insulation also improves thermal comfort in addition to reducing air conditioning equipment sizes. Apart from the building envelope, the central plant will also use efficient chiller type, with proper sizing contributing to optimum energy utilization.

For the project activity under consideration in any of the township, the project boundary will include energy efficient building where the energy efficiency measures have been taken and which result in consumption of lesser amount of electricity consumption by the building.

However, reduced electricity consumption by Energy efficient building will ultimately result in drawl of lesser amount electricity from Electricity grid which is a part of the Pune Municipal Corporations electricity grid. For computation of emission reductions resulting from the project activity, PMCs electricity grid and all the power plants catering to the grid shall be considered in order to arrive at the emission factor corresponding to power generation in the grid. However, the emission factor

corresponding to power generation in the grid, can been taken to be constant for the computation of emission reduction for the entire crediting period.

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PART 3 PROCESS OF ELIGIBILITY COMPLIANCE

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CHAPTER 3.1 GENERAL DESCRIPTION OF PROCESS

Chapter 1 General Description of the process.

Processes. 1. Solar water heating. 2. Solid Waste Management. 3. Sewage Treatment Plant. 4. CFL Lighting System. 5. Energy efficient building.

Chapter 2 Baseline Scenario

Baseline relevant to CDM Project Boundary Description of baseline

Chapter 3 Additionality

Alternative Scenario Barrier Analysis Investment Analysis

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The thesis work includes following five township projects in the vicinity of Pune. 1. Magarpatta City Hadapsar 2. Nanded City - Sinhagadh Road 3. Celestial City - Ravet 4. Megapolis - Hinjewadi 5. Amanora Park Town - Hadapsar The possibility of earning carbon credit in these townships has been found out. With the help of following baselines provided by UNFCCC the possibilities were explored. 1. Solar water heating for buildings in the township. 2. Solid waste disposal management system in the township. 3. Sewage treatment plant setup in the township. 4. Improved lighting system with CFL in the township. 5. Efficient building for energy conservation within the township.

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Table 3 Employees of townships interviewed for the study Township Magarpatta City Name Mr. Amit Porwal Mr. Nagaraj Kulkarni Ms. Sayali Magar Ms. Priya Jacob Amanora Park Town Mr. Lalit Bhansali Designation Associate Director Head of Projects Head of Projects VP Marketing Sr. Planning Engg. Remarks Study good for Information Study good for Information Study good for Information Study good for Information Study good for Information Study good for Information Study good for Information Study good for Information Study good for Information Study good for Information

Nanded City

Celestial City

Mr. Chaitanya Manager Patankar Construction Ms. Vrushali Amale General Manager Mr. Jitendra Bharve Manager - Contracts General Manager Dy. General Manager

Megapolis

Mr. Hemant Kulkarni Mr. Pramod Fand

Table 4 Townships under study and status of CDM endeavors


Solar Water Heating System Solid Waste Management System Sewage and Waste water Treatment Efficient Building CFL Lighting

Magarpatta City Nanded City

Initiative Taken Initiative Taken Initiative Taken Initiative Taken Shown Interest

Initiative Taken Shown Interest Initiative Taken Shown Interest Initiative Taken

Initiative Taken Shown Interest Shown Interest Shown Interest Not Interested

Shown Interest Not Interested Shown Interest Shown Interest Not Interested

Shown Interest Initiative Taken Initiative Taken Shown Interest Shown Interest

Amanora Park Town Celestial City Megapolis

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3.1.1 GENERAL DESCRIPTION OF THE Solar water heating process In the township, residential and commercial building can be equipped with Solar Water Heating System. Following points are note worthy The entire hot water requirement of the respective buildings can be fulfilled by the Solar Thermal Water Heating System. This system is saving electricity which would have been used by the electrical water heating devices, in individual households, to heat the water. In case of the absence of the solar thermal water heating system, to generate the electricity required for heating the water, the thermal power generation stations would be burning fossil fuel which would result into emission of greenhouse gases in the environment. Implementation and usage of solar thermal water heating system is reducing the emission of greenhouse gases at the electricity generation point in the respective electrical grid.

Figure 7 Solar Panels for water heating on top of Magarpatta City roofs.

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The project of solar water heating in township projects is a small-scale CDM Project Activity (SSC) . The project type, as defined in UNFCCCs Appendix B of the simplified modalities and procedures for small-scale CDM project activities, is type 1.C: Renewable energy projects; thermal energy for the user.

Total solar thermal capacity calculation and qualification under SSC With reference to AMS-I.C. & SSC WG 07 ; Maximum Output is calculated using the conversion factor (f), 700 Wth/m2 of aperture area of the collector. Table 5 Solar Thermal Capacity Aperture area of a single collector (a) Townships Magarpatta City Nanded City Amanora City Celestial City Megapolis Remarks 1.96 m2 1.96 m2 1.96 m2 1.96 m2 1.96 m2 Number of collectors (n) Total aperture area (A) = n x a Maximum output = A x f

7,390 10,000 8,500 5,000 2,000

14484.4 19600 16660 9800 3920

10139.08 13720 11662 6860 2744

Township Magarpatta City Nanded City Amanora City Celestial City Megapolis

Remarks Initiative Taken to implement CDM benefits Initiative Taken to implement CDM benefits Initiative Taken to implement CDM benefits Initiative Taken to implement CDM benefits Shown Interest to implement CDM benefits

Technical description of the small-scale project activity: The renewable energy used can be specified as solar thermal energy that generates heat. The Solar Thermal Water Heating System consists of the following components, a) Solar Collectors b) An Input Water Storage Tank c) A Stainless Steel Insulated Hot Water Output Tank
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d) Tank Stand Assembly e) Hot Water Usage Measuring Meter (proposed at selected sampled systems) e) Piping System

Solar radiation falling on the collectors passes through the glazing and is absorbed by the absorber consisting of fins, raisers and headers. A special selective coating on the absorber prevents escape of heat back to the environment. Water contained in the absorber absorbs the heat from the fins and becomes less dense than the water in the collector and thus rises and enters the top hot water tank. Simultaneously cold water from the tank descends to the bottom header of the collector, gets heated up in the absorber and rises back to the hot water tank and the cycle repeats itself. The movement of heated water from the collector to the storage tank which is placed above the collectors is only due to the difference in density. There are no moving parts in the systems and hence the system reliability is very high. The water retains its heat for long time as the hot water storage tank is insulated to prevent significant heat loss. The sacrificial anode provided in the hot water storage tank protects the system against galvanic corrosion.

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3.1.2 GENERAL DESCRIPTION OF THE Solid waste management process Prevention of Green House Gases (GHGs) emission from the Daily Solid Waste generated in the township by implementing and operating the Integrated Solid Waste Management, Processing and Utilization System (ISWMPU) System, which uses blend of technologies and processes such as Solid Waste Segregation System, Biogas plant with Power Generation Facility, Vermin Composting, Organic Solid Waste Converter System and Utilisation of the output compost for the in-house landscaping and soil stabilisation at a township.

Figure 8 A solid waste disposal systems in place at Magarpatta City.

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Integrated Solid Waste Management, Processing and Utilization System of the Township Project shall be applicable for CDM. Following topics have been taken from PDD and used in the thesis analysis. At any townships ISWMPU Centre, following waste management, processing and utilization technologies can be used to prevent emission of GHGs from the Daily Solid Waste generated, 1. Garbage Segregation Process 2. Biogas Generation at Biogas Plant 3. Power Generation Unit in line with Biogas Plant 4. Vermin Culture Composting Technology & in-house use of Vermin Compost for Gardening 5. Organic Waste Converter (OWC) Technology & in-house use of OWC Compost for Gardening. In the absence of Integrated Solid Waste Management, Processing and Utilisation (ISWMPU) System, implemented by township, the Solid Waste under consideration would have otherwise been transported and deposited at Solid Waste Disposal Site (SWDS), without Methane Recovery Facility, by local Pune Municipal Corporation (PMC), resulting into emission of GHGs in the environment.

Description of the small-scale project activity Electricity Generation from Waste India is an Electricity Starving Country with large deficit in the power generation and its demand. The Project activity through its Biogas Plant based Power Generation Unit will generate the amount of electricity that will be enough to make the entire ISWMPU System Self Electricity Sufficient with surplus electricity generated will be used to light up the lamps at the adjacent garden, streets in the night time and to pump the water for the irrigation in the day time. Decentralization of Solid Waste Management in Cities The townships ISWMPU System will set an example of how the solid waste generated in a locality can be treated there only with sustainable development of that locality

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through Self Electricity Generation and Composting to improve the flora and fauna of the locality. The Project Activity will ultimately reduce the load of SWM on the already stressed Pune Municipal Corporation for the particular locality. Social Sustainable Development The ISWMPU System starts by making residents of the township more responsible and mannered individuals by making them separate the Solid Waste at source into Dry Garbage (DG) and Wet Garbage (WG) using separate Waste Collection Bins (WCB), provided and maintained by the township, and handling it over to ISWMPU Mechanism for its management, processing and in-house utilization of the output compost. This is a practical example of how an individual can be encouraged to contribute in the sustainable development of the locality by providing basic facilities and systems in place. A state-of-art ISWMPU Centre is functional at Magarpatta City.

Township Magarpatta City Nanded City Amanora City Celestial City Megapolis

Remarks Initiative Shown to implement CDM benefits Shown Interest to implement CDM benefits Initiative Shown to implement CDM benefits Shown Interest to implement CDM benefits Initiative Shown to implement CDM benefits

Technical description of the small-scale project activity: The Project Activity comprises measures to avoid the emissions of methane to the atmosphere from biomass or other organic matter that would have otherwise been left to decay anaerobically in a solid waste disposal site. In the project activity, controlled biological treatment of biomass is introduced through a combination, of the following measures: (a) Aerobic treatment by composting and proper soil application of the compost; (b) Anaerobic digestion in closed reactors equipped with biogas recovery. In the Project Activity, the recovered biogas from anaerobic digestion is also utilized for the following application :
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(a) Electrical energy generation directly. (Major Activity) (b) Controlled flaring for tea making in canteen. (Minor Activity)

Process: Solid Waste Collection and Transportation System: The Collection of Solid Waste is done from doorstep of residents as well as from the commercial Buildings. To all residents, two Bins; one for dry waste i.e. blue colored & one for wet waste i.e. red colored cab be provided at the time of property possession. Every morning, dry & wet waste is collected into respective bins from the doorsteps of residents. The waste in these bins is collected into larger bins and these larger bins are carried to the waste room of the respective neighborhood and transported to the ISWMPU Centre through tempo truck. From the commercial buildings the dry and wet waste is to be collected separately & transported to ISWMPU Centre.

Solid Waste Segregation System: The dry and wet solid waste from residential and commercial area shall be unloaded separately into the Segregation Room. The segregation process separates solid waste into Dry Waste, Wet Waste and Emission Free Inert Waste. Dry waste contains plastic paper, metal, glass, cardboard, rubber, wood etc. Dry waste is to be sub segregated into Paper, Paper Napkin, Paper glass, Plastic, Plastic glass Metal, Cardboard etc. It is to be segregated item wise and collected into different bags & sold to vendor. Wet waste is segregated into Cooked and Uncooked wet waste. Plastic, paper is to be segregated from it. The cooked wet waste from the commercial areas is to be utilised by Bio- Gas Plant. The residential wet waste is sent to OWC machine and dry leafy vegetables are used for Vermin-Composting. The material which is inert and dont act as the source of emission is handed over to Pune Municipal Corporation (PMC)

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Organic Waste Converter (OWC): A Batch of segregated wet waste is taken into OWC machine to which Bioculum culture can be added @ 1gm/kg of waste & firewood @ 15-20 % of organic waste. Then the lid of machine is closed & all content is crushed /mixed in machine for 10 min. This processed waste is collected in a trolley by opening the bottom drain valve & send to curing in curing shed. Curing is done by heap system. After curing, the ready compost is utilised for landscaping.

Vermin Composting: Segregated dry, leafy vegetables are used for vermin composting. Alternate layers of vegetables & cow dung of size 3 are spread in the beds. This process is to be repeated till the bed gets filled. After filling, Earthworms are released on bed. Watering is done as per requirement. Harvesting of compost produces is done when bed shrinks to half the volume. The product is sieved through mash sieve to separate the earthworms & compost. This vermin compost is filled in bags & used for gardening. There can be vermin composting beds of sizes 15 x 3 x 3.

Biogas Plant: Segregated cooked kitchen waste is taken into the shredder with water in proportion 1:1. After shredding of waste, the slurry is collected in Inlet Chamber. From inlet chamber, it is passed to Primary digester where volatile solids are converted into fatty acids by bacteria known as Acid Formers. The slurry from Primary Digester is passed to secondary digester, which works as Methane Fermentation Tank, where methane formers converts fatty acids into biogas & water. The remaining slurry from both the digesters is taken into the recycle chamber for recycling. The biogas generated from both digesters is collected in the Neoprene Rubber Balloon. From balloon biogas is supplied to generator through scrubber for Electricity generation.

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3.1.3 GENERAL DESCRIPTION OF THE SEWAGE TREATMENT PLANT This project activity in townships from STP entails treatment of this high BOD/COD sewage anaerobically in a closed digester and capturing the methane gas generated in a controlled manner. The methane gas is recovered without leak in the atmosphere by means of anaerobic Sludge treatment to utilize for high- efficiency power generation by gas engine. Sewage gas is generated during the anaerobic process of sewage sludge treatment would be utilized as a fuel to run gas engine to produce electrical energy that would displace grid electricity of the township to run the sewerage system which is an extremely good source for the generation of non-conventional energy. Sewage gas is being generated by the process of anaerobic digestion of sewage sludge. The project is designed to generate the sewage gas by treating the sewage in a Sludge anaerobic processing system (Digester) so as to restrict the atmospheric emission of methane gas. At the same time, the methane gas is recovered without release in the atmosphere by means of anaerobic Sludge treatment to utilize for high efficiency power generation by gas engine. The electricity generated is used for captive purpose, thus greenhouse gas reduction by fossil fuel consumption reduction for grid power supply equivalency is possible.

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This project activity carries a number of sustainability aspects. It helps in recovery of Methane, a potent Green House Gases (GHG) which in normal course is emitted in open atmosphere due to decomposition of high BOD/COD of the sewage. The project activity helps in conservation of natural resources such as fossil fuels in power generation helping to some extent in national energy security. The project can create employment opportunities both during erection & commissioning of the plant and its operation and maintenance. The project activity would also provide the impetus to similar industries for adopting such measures in their areas. The project activity would also encourage technology providers to further their efforts in R&D of sewage treatment technologies bringing in investments. The project may also serve as a project for establishing the CDM as an important capability so that the project can demonstrate that it provides funds as new financial machinery to the renewable energy and waste management sectors in the country.

1 Title of the small-scale project activity: Methane recovery and power generation from sewage treatment plant in township projects. 2. Description of the small-scale project activity: The following contribution to the sustainable development through the execution of the project in the township is expected: Combat global warming by the effective utilization of sewage gas as a renewable energy source The protection of the environmental pollution by restraint on peripheral diffusion of emitted odour by means of the closed structure. Effective utilization of land by space saving with a great help from of anaerobic processing method. Against energy cost such as fossil-fuel consumption required for the power supply to the grid can energy-saving effect be reduced to the extent that the power generation by the project is supplied for captive consumption.

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The technology for the biogas power generating equipment. The project can disseminate throughout India. It becomes clean technology demonstration project, and there is effect of that disseminate.

3. Project participants: Name of the Party Involved India (Host), Non-Annex 1[ As per UNFCCC guidelines] Township Magarpatta City Nanded City Amanora City Celestial City Megapolis Remarks Initiative Taken to implement CDM benefits Shown Interest to implement CDM benefits Shown Interest to implement CDM benefits Shown Interest to implement CDM benefits Not Interested

4. Technical description of the small-scale project activity: Type III.H. Methane recovery in wastewater Treatment. The project activity involves the measure that recovers methane from biogenic organic matter in wastewater by means of Introduction of biogas recovery and combustion to an existing sludge treatment system at Amanora and Celestial City plants. The recovered biogas would be utilized as a fuel to run gas engine to produce electrical energy that would displace grid electricity to run the sewerage system. The project activity falls within the small-scale rating as the measures are limited to those that result in emission reductions of less than 60 kt CO2 annually. Type I.D. Grid connected renewable electricity generation. The project activity involves installation of 1MW sewage gas based power plants generated during treatment of sewage of township. The sewage gas would be utilized as a fuel to run gas engine to produce electrical energy that would displace grid electricity to run the sewerage system. The project activity falls within the small-scale rating as the generating capacity will approx 1MW for one township, i.e. below the 15 MW as outlined in the methodology.

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Technology employed: The proposed project is planning to install a 1MW power plant based on Sewage gas obtained during sewage treatment process. Biogas is generated from the digesters during the anaerobic sludge treatment process in the sewage treatment plant. This biogas contains 60-75%CH4, 25-40%CO2 and H2S well below 0.5%. The H2S contained in biogas is highly corrosive and it is required to reduce to the desired limit. The Biogas collecting blowers are used to collect the gas from the digesters, which blow the biogas to H2S scrubbing system to remove H2S from biogas. Then biogas could be used to generate electricity. The biogas holder is provided to store biogas and during lean flow biogas engine will utilize stored biogas. Biogas engine type is spark ignited internal combustion engine. The electricity generated by biogas engine generator set is used to run various units of sewage treatment plant.

The various levels of treatment described below: -

Process Description Preliminary wastewater treatment is the removal of such wastewater constituents that may cause maintenance or operational problems in the treatment operations, processes, and ancillary systems. It consists solely of separating the floating materials (like dead animals, tree branches, papers, pieces of rags, wood etc.) and the heavy settle-able inorganic solids. It also helps in removing the oils and greases, etc. from the sewage. This treatment reduces the BOD of the wastewater, by about 15 to 30%. Preliminary operations are: Screening and combination for the removal of debris and rags. Grit removal for the elimination of coarse suspended matter that may cause wear or clogging of equipment. Floatation / skimming for the removal of oil and grease.

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INLET CHAMBER The raw sewage is received in the inlet chamber from sewage pumping station/s.

SCREEN CHAMBER Then raw sewage passes through the screen chamber. Where the coarse materials are retained. The coarse material is removed from screen by manually or automatically by mechanical screen and collected into trolley.

GRIT CHAMBER After Screen chamber, sewage passes through grit chambers for which inlet and outlet penstock gates are provided. As the screened sewage passes through the grit chambers, particles greater than 0.2 mm size are settled within the system by gravity owing to a reduction of velocity of flow. The settled grits is swept by a mechanical scraping device to a peripheral pit at one side of the tank, where from it is lifted with the help of screw conveyer or classifier mechanism and conveyed to a standing trolley or truck. it is then dumped to final disposal site. The degritted sewage overflows through the grit chamber and is conveyed to the partial flume.

PARTIAL FLUME The object of this unit is to measure the incoming flow of raw sewage. The device is suitable for measuring the flow in an open channel.

PRIMARY CLARIFIER The object of the primary clarifier is to remove the settable solids by gravitational settling. The degritted sewage, after flow measurement, is received in the primary clarifier by gravity. This is a circular sedimentation tank with a central inlet chute and a peripheral overflow launder. The central chute prevents disturbances due to entrance velocity, distributes and flow equally in all the direction. The clarified sewage overflows the peripheral Launder and is collected in the Launder channel from where it is goes to aeration tank.

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PRIMARY SLUDGE PUMP HOUSE The function of this unit is to transfer primary sludge collected in the primary clarifier to thickener unit.

AERATION TANK In aeration tank, aerobic degradation of organic impurities took place. Where surface aeration or submersible or membrane type air diffuser is provided for mixing oxygen in sewage. In the aeration tank sufficient and D.O. are maintained. The retention time in the aeration tank is around 8 to 10 hr. In the aeration tank the bacterial culture carries out the conversion of organic waste. Sludge settled in the secondary clarifier is partly transmitted to aeration tank to maintain and F/M ratio, and part sludge is transmitted to thickener for further treatment.

SECONDARY CLARIFIER Mixed Liquor from aeration tank outlet is fed to central of secondary clarifier where treated sewage and activated sludge is separated through gravity. The treated sewage overflows the peripheral Launder and is collected in the Launder channel after chlorination from where it is disposed off in to near by sea. The settled activated sludge is withdrawn from the bottom of the secondary clarifier, through sludge pump House it is fed to the aeration tank or excess sludge in to the sludge thickener.

RETURN CUM EXCESS SLUDGE PUMP HOUSE The function of the return sludge pump House is to pump activated sludge to the aeration tank to maintained F/M ratio and excess activated sludge to sludge thickener.

SLUDGE THICKENER Thickening increases the solid content of the sludge by partial dewatering.This is activated by plain sedimentation in the thickener. The sludge settles at bottom of the thickener and the effluent overflows to the launder channel. The settled sludge is scrapped and pushed towards the central sludge zone by a set of scrapper arms fixed to a central drive M.S. bridge. The thickened sludge is pumped to the sludge digesters for anaerobic digestion through thickened sludge pump House.

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THICKENER SLUDGE PUMP HOUSE The sludge pumps are meant for pumping the thickened sludge from the sludge thickener to the digester for digestion.

ANAEROBIC DIGESTORS The object of the sludge digester is to reduce the volatile organic matters from the sludge by anaerobic digestion. The sludge digester is a closed circular RCC tank. The sludge from the sludge thickener is pumped to the sludge digester for an effective digestion before it is dewatered in the sludge drying beds or mechanical sludge dewatering system. The digester is provided with a screw pump type stirrer or gas mixing system or liquid mixing system for maintaining the uniformity of the sludge concentration by recirculation. In the digester proper volatile Acid/Alkalinity ratio where maintained for proper digestion. The digested sludge is periodically withdrawn to the sludge drying beds or to mechanical sludge dewatering system for dewatering.

SLUDGE DRYING BEDS / MECHANICAL SLUDGE DEWATERING The sludge drying beds / mechanical sludge dewatering system are provided to reduce the moisture content of the sludge by dewatering and sufficiently holding if to dryness. The digested sludge withdrawn from the digester is conveyed by gravity to the sludge drying beds / mechanical sludge dewatering unit. The water is separated out by way of gravitational filtration through the filter media in sludge drying bed / centrifugal action or by pressing sludge in mechanical sludge dewatering unit. The dried sludge cakes are gently removed and sold as organic manure to farmer. FILTRATE / LECHAT PUMP HOUSE The function of this pump house is to pump the leached received from digested sludge from SDB / Mechanical sludge dewatering system again to the E.T.P. for treatment.

CHLORINATION UNIT The chlorination units are provided to kill pathogens / bacteria from the treated sewage water before final disposal.

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BIOGAS ENGINE Biogas generated from the digester unit contains Methane (CH4). Methane gas is one of the factor for green house effect which cause global warming. Gas engine system is provided to utilize the bio gas. This bio gas is used in gas engine to generate electricity which displaces the equivalent power from the grid.

The major components of the envisaged biogas power plants are: Sewage gas pipe lines Sewage gas collection blowers H2S scrubber Sewage gas storage facility Sewage gas blowers for gas engine Sewage gas Engine generator set and control panel SCADA system and instrumentation Power and control cables Building for sewage gas engine generator set, scrubber and protection sheds for blowers.

SEWAGE GAS PIPING This component consist the complete gas line system such as gas line from the top of each digester to gas collecting blowers, Sewage gas collecting blowers to H2S Scrubber to flaring system H2S scrubber to Sewage gas holder, Sewage gas holder to Sewage gas blower for engine to Sewage gas engine generator set. There shall be moisture trap, flame arrestor, gas sampling point, butterfly valves, ball valves etc. as per the system requirement.

SEWAGE GAS COLLECTING & SEWAGE ENGINE FEED BLOWERS Sewage gas blowers are required for collecting the gas from digester dome in case of low gas pressure in digester dome. Engine feed blowers are required for the Sewage gas engine generator set to feed the gas to engine generator set. The Twin lobe blowers shall be provided for this application. Sewage gas collecting blowers collect Sewage gas

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according to the pressure in digester dome. Sewage gas feed blowers shall work according to the inlet gas pressure requirement of Sewage gas engine generator set.

H2S SCRUBBER Sewage gas generated from these digesters contains hydrogen sulphide (H2S). This shall be scrubbed from sewage gas before using it in gas engine to reduce corrosion in the engine parts and to reduce pollution (when H2S burnt, SO2 generates which is one of the reasons for the formation of fog and acid rains).

CHEMICAL BASED H2S SCRUBBER In this technology cleaning solution is sprayed from the top of a cleaning tower while the sour gas is passed from the bottom. Before the gas reach the top of a cleaning tower, H2S present in the gas gets absorbed by the cleaning solution. Fresh cleaning solution will be added whenever required and solution produced after this process shall be sent to primary treatment of sewage treatment plant. This scrubber removes H2S from 1% to below 100ppm so that the scrubbed gas can be used in gas engine without any corrosion problem or pollution. There shall be gas flow meter at inlet of scrubber, on line H2S analyzer at inlet and outlet of the H2S Scrubber, gas sampling point, dosing, metering and circulation pump-set, mixture, controlling valves, monitoring equipment, etc. are included in H2S scrubber system.

SEWAGE GAS HOLDER Sewage gas holder having capacity of 600 m3 shall be provided as buffer storage at least for 2 hours. This buffer can be utilized to counter balance the peak load demands. The sewage gas holder is also required in case of minor shut down/routine maintenance of the power plant arises. For storage of Sewage gas, foil bag double membrane type of inflammable Sewage gas holder shall be provided. In this case the protection provided is also of membrane type.

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SEWAGE GAS ENGINE GENERATOR SET AND CONTROL PANEL According to present characteristics and quantity of incoming influent at the treatment plant & theoretical Sewage gas generation, the proposed capacity of Sewage gas power plant is arrived as 1.0 MW. Gas engine shall be suitable for operation with variable composition of Sewage gas. Gas engine generator set shall have capacity to generate net electrical output of 1.0 MW at minimum efficiency of 39.2%. (at full load) Gas engine generator set available in the market are spark ignited, four stroke, internal combustion, water cooled, oil lubricated, etc., with self excitation and self regulated alternator and control panel. Gas engine generator set auxiliaries and accessories shall includes gas train, combustion air filters, electrical starting system, automatic lube oil replenishing system, sensor on engine, exhaust manifold, exhaust gas silencer, exhaust gas connection, exhaust gas chimney with ducting, jacket water preheating, radiator or cooling tower with circulation pump, flexible coupling, bell housing, engine generator set base frame, anti vibration mounting, water and lube oil supply for engine and auxiliaries, Control and power cabling, engine control panel, ventilation system for engine generator room, etc.,

SCADA SYSTEM & INSTRUMENTATION The power plant shall contain several measuring instruments and control system; various data are generated from these control system and instruments. These data are critical for controlling of power plant and performance evolution of the power plant. To acquire these data from field instrument, H2S Scrubber System, Sewage gas holder, Sewage gas engine generator set, Control panel, PCC panel, etc., necessary control and data cable, PLC system, IO Cards, stand alone server computer with necessary hardware and SCADA software, internet connectivity for sending and receiving the data, colour printer.

UPS SYSTEM, ETC. SHALL BE REQUIRED. The data logged should be available for report generation, analysis and performance evaluation of desired nature. Some of the performance parameters should be computed and periodic report be generated on the computer.

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POWER AND CONTROL CABLES To give power supply to various auxiliaries of power plant such as Sewage gas blowers for gas collecting & for gas engine feed, ventilation system, cooling system, auxiliaries of H2S scrubbing system such as dosing pump, circulation pump, mixture, etc., necessary size and type of power cable shall be laid. Power cable from alternator to engine control panel, engine control panel to main power control centre panel shall also be laid. Control and data cable from various field instrument are also to be laid in accordance with the requirement. Building for sewage gas engine generator set and H2S scrubber Adequate size of building for Sewage gas engine generator set, H2S scrubber, engine control panel shall require to be constructed. The size of these building could be finalized after receiving the size of H2S Scrubber and Sewage gas engine generator set and requirement from respective engine manufacturer.

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3.1.4 GENERAL DESCRIPTION OF THE CFL Lighting system CFL Lighting system has become a prime source of electricity usages reduction. If the townships, which is a combination of residential and commercial/office building invest in CFL lighting system it can be bundled for CDM benefits. From market survey in Pune it was found out that three types of ICL lamp wattages are likely for replacement of present incandescent bulbs and tube lights. CFL lighting would be also advantageous as the longlife CFLs would deliver at least the lumens as defined under the Indian national standard IS 418:2004 for ICLs: Table 6 Comparison of CFL and ICL Lighting

Baseline ICL replaced (Watt)

Rated normal Lumen output (IS 418:2004)

Likely (Watt)*

CFL

range

40 W

345

9-10 W

60 W

620

13-15 W

100 W

1240

20-23W

In CFLs, the electrical current from the ballast flows through the gas, causing it to emit ultraviolet radiations. The phosphor coating converts the ultraviolet radiation emitted to visible light spectrum. CFLs are much more energy efficient than traditional light bulbs such as ICLs. The efficacy of ballast-integrated CFLs typically ranges from 35 to 80 lm/W which is 4 to 5 times higher than an equivalent ICLs. Consequently, CFLs consume only 1/4th to 1/5th of the energy used by ICLs to provide the same level of light.8 CFLs that shall be are distributed to household shall conform to the National technical specifications stipulated by the Bureau of Indian Standards (IS 15111). The township site construction management team can coordinate the Small-Scale Programme of Activities (SSC-PoA) and shall support the CFL implementation of the CDM.
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As in case of Magarpatta City, under this scheme quality long-life CFLs would be distributed to residential households in exchange of an incandescent lamp (ICL). To bridge the cost differential between the market price of the CFLs and the price at which they are distributed to households, the Clean Development Mechanism (CDM) is harnessed. The township would cover the project cost through sale of GHG emission reductions achieved in their respective areas.

Township Magarpatta City Nanded City Amanora City Celestial City Megapolis

Remarks Shown Interest in implementing CDM benefits Not Interested Shown Interest in implementing CDM benefits Shown Interest in implementing CDM benefits Not Interested

A.4. Technical description of the small-scale project activity: As a part of CDM initiative the buildings can employ up to four self-ballasted CFLs in a household as direct substitutes for pre-existing ICLs. Self-ballasted CFLs usually have 2, 4 or 6 small fluorescent tubes that are mounted in a base attached to ballast. These CFLs consist of two main parts: the gas-filled tube (also called burner) and a magnetic or electronic ballast7.CFLs that flicker when they start have magnetic ballasts. In the townships CFLs with electronic ballasts shall be used. In CFLs, the electrical current from the ballast flows through the gas, causing it to emit ultraviolet radiations. The phosphor coating converts the ultraviolet radiation emitted to visible light spectrum. CFLs are much more energy efficient than traditional light bulbs such as ICLs. The efficacy of ballast-integrated CFLs typically ranges from 35 to 80 lm/W which is 4 to 5 times higher than an equivalent ICLs. Consequently, CFLs consume only 1/4th to 1/5th of the energy used by ICLs to provide the same level of light.8 CFLs that shall be are distributed to household shall conform to the National technical specifications stipulated by the Bureau of Indian Standards (IS 15111).

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3.1.5 GENERAL DESCRIPTION OF THE ENERGY efficient building All the township under study have office building within its premises. Thus its a general thought to utilize these building for CDM application. The energy efficiency measures which can be undertaken is primarily in the Heating, Venting and Air- Conditioning (HVAC) system and lighting system of the building. The measures adopted in the HVAC system result in reduction in electrical energy consumption, in comparison to that for a conventional building with similar size (in terms of floor area, carpet area and number of storey), capacity (in terms of occupancy) and architectural perspectives. The energy efficiency measures taken in the lighting system would reduce the electricity consumption of in two major ways: (i) by improving the utilization of natural lighting by optimizing the window openings (ii) by installation of energy efficient lighting systems and fixtures with occupancy sensors. As a consequence, there will be an equivalent reduction in electricity consumption from the connected power plants, which in turn will result in a reduction of Green House Gases as per the carbon intensity of the grid.

A.2. Description of the small-scale project activity The study from various township sites is a Comparison of various energy efficiency measures adopted in Energy efficient building which will impact the Design Heat Load and Power Consumption of the HVAC System. Fixed reduction in Heat Load and Power Consumption of HVAC system of Energy efficient building. Heat Load and Power Consumption of the HVAC System based on the demand. Variable reduction in Heat Load and Electricity Consumption of HVAC system of Energy efficient building Exterior wall construction. Lighting Load and Power Consumption of the Lighting System based on the equipment selection and demand.

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The study thus envisages importance of the following. Exposure of glass wall area Roof Insulation Chillers Air Handling Unit (AHU) Installation of VFDs in the chilled water pumping system. Lighting System

Township Magarpatta City Nanded City Amanora City Celestial City Megapolis

Remarks Shown Interest in CDM Projects Initiative Taken to implement CDM Projects Initiative Taken to implement CDM Projects Shown Interest in CDM Projects Shown Interest in CDM Projects

A.4. Technical description of the small-scale project activity: As discussed at the township sites in Energy efficient building, the thermal resistance of the building envelope can be increased, thereby reducing the unwanted heat loss and heat gain from the outside. This in turn reduces the energy required for air conditioning in the building. Insulation also improves thermal comfort in addition to reducing air conditioning equipment sizes. Apart from the building envelope, the central plant will also use efficient chiller type, with proper sizing contributing to optimum energy utilization. The major parameters which have resulted in the reduced electricity consumption in the HVAC system of Energy efficient building, are detailed below:

[A] Exposure of glass wall area (1) The glazing used in the building can be of high performance double glazed panels coated with reflective low e-glass panes and have low U-value5 and solar heat gain coefficient. High quality glass with shading co-efficient of 0.34 and high visible light

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transmittance 24% can be used in order to reduce solar gains and to enhance available daylight in the space without compromising on energy efficiency. In Amanora Park a simple optimization has been done between the energy reductions with less window area vis--vis lighting requirement accordingly an overall WindowWall Ratio (WWR) is 24% for Energy efficient building.

[B] Roof insulation The material for the roof construction can be changed to concrete slab with R-15 extruded polystyrene for over deck insulation. As in case of Megapolis Terrace gardening has been done to provide additional insulation for the roof. The evapotranspiration effect due to the terrace garden will also contribute to keeping the building cool during summer season.

[C] Air Handling Unit Regular office spaces can be divided into zones based on occupancy pattern and ease of air distribution. Each of these zones can be provided with an individual AHU comprising centrifugal supply and return air fans, cooling coil section, steel double sloping drain pan and filter section. As in case of Amanora Park Each AHU is provided with a two way valve control, sensing cooling coil leaving air temperature, filter monitoring switch, duct smoke detector unit to trip blower in case of smoke detection. AHUs are provided with CO2 sensor. The volume of fresh air entering into the building is modulated based on CO2 sensors, located within return air duct of AHU serving each occupied zone. Both the indoor and outdoor CO2 levels are continuously logged through integrated building management system (IBMS), Based on the CO2 differential the quantity of fresh air brought in to the building is varied using the dampers.

[D] Chillers As a general step towards environment consideration Water-cooled chillers have been suggested to be used, which are more efficient than air cooled ones in air-conditioning of

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large buildings. Each water cooled chiller can have two condenser pumps, one working and the other one as standby.

[E] Chilled Water Pumping system It is suggested that in the Energy Efficient Buildings in these township chilled water to be pumped with a primary-secondary pumping arrangement. The primary loop pump will circulate chilled water through the chillers, and the secondary pumps distribute chilled water to the building. VFDs are installed only in the secondary chilled water pumps.. VFDs in the pumps of secondary chilled water loop accommodate the variations in the chilled water demand depending on the quantity of air being handled by the AHUs of the building.

[F] Lighting Energy efficient lighting like CFL bulbs and T5 fluorescent lights will be used in the project activity building as suggested in the previous section and Efficient lighting design is employed to maximize the utilization of natural lighting with day light controls resulting in the following light density resulting in an light power density of 1.0 W/ft2 in office, 1.5W/ft2 in food court, and 0.9 W/ft2 in service areas. Energy efficient building also employs day lighting Controls in Food Court which would optimize the power consumption of lighting system when natural light is available. With these measures in place, the HVAC and lighting system will operate at high energy efficiency and will have tremendous flexibility to run efficiently under part load conditions. Thus it is suggested to employee Building Management System (BMS) whose major function will be energy management through optimization of all connected electrical and mechanical plants. BMS shall comprises the following HVAC automation services, chiller plant automation, AHU monitoring and control, stairwell pressurization and control, common area smoke extraction fan control, smoke extract fans of individual fans, VFDs, CO2 sensor monitoring and modulating damper control, car park area CO sensor monitoring ,ventilation fan control and lighting control

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CHAPTER 3.2 BASELINE SCENARIO

3.2.1 BASELINE RELEVANT TO CDM Description of baseline and its development for Solar water heating In the respective Electrical Grid of the baseline Hot Water Storage Geyser at End User, electricity is generated using fossil fuel, thus, with reference to AMS-I.C and its recommendation to use AMS-I.D, the baseline emissions are calculated as follows, BEy= EG BL,y x EFCO2 Where, BEy .. Baseline Emissions in year y; t CO2 EG BL,y .. Energy baseline in year y; EFCO2 ... The CO2 emission factor per unit of energy of the fuel that would have been used in the baseline, obtained from reliable local or national data if available, otherwise, IPCC default emission factors are used.

Leakage : Point no. 28 If the energy generating equipment currently being utilised is transferred from outside the boundary to the project activity, leakage is to be considered. This is not the case. Therefore no leakage has to be considered.

Description of baseline and its development:

To identify the baseline scenario, Combined tool to identity the baseline scenario and demonstrate additionality is used. The stepwise detailed demonstration is given below in point B.5. From the same, Continuation of the Local Practice : The Solid Waste Collection, Transportation and Disposal Systemby local Municipal Corporation is identified as the robust baseline scenario.

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Equation for Baseline Emission for Solid waste management:

Where: BECH4,SWDS,y - Yearly methane generation potential of the solid waste composted or anaerobically digested by the project activity during the years x from the beginning of the project activity (x=1) up to the year y estimated as per the Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site (tCO2e). The tool may be used with the factor f=0.0 assuming that no biogas is captured and flared. With the definition of year x as the year since the landfill started receiving wastes, x runs from the first year of landfill operation (x=1) to the year for which emissions are calculated (x=y) MDy, reg - Amount of methane that would have to be captured and combusted in the year y to comply with the prevailing regulations (tonne) MEPy,ww - Methane emission potential in the year y of the wastewater co-composted. The value of this term is zero if co-composting of wastewater is not included in the project activity (tonne) GWP_CH4 GWP for CH4 (value of 21 is used) Equation for Project Activity Emission:

Where: PEy PEy,transp PEy,power (tCO2e) PEy,phy leakage In case of anaerobic digestion: methane emissions from physical leakages of the anaerobic digester in year y (tCO2e) PEy,comp In case of composting: methane emissions during composting process in the year y(tCO2e) PEy,runoff In case of composting: methane emissions from runoff water in the year y (tCO2e) PEy,res waste In case residual waste/slurry/products are subjected to anaerobic
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Project activity emissions in the year y ((tCO2e) Emissions from incremental transportation in the year y (tCO2e) Emissions from electricity or fossil fuel consumption in the year y

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storage or disposed in a landfill: methane emissions from the anaerobic decay of the residual waste/products tCO2e)

Equation for Project Emissions due to Incremental Transport Distances:

Where : Qy CTy Quantity of raw waste treated and/or wastewater co-treated in the year y (tonnes) Average truck capacity for transportation (tonnes/truck)

DAFw Average incremental distance for raw solid waste and/or wastewater transportation (km/truck) EFCO2 CO2 emission factor from fuel use due to transportation (kgCO2/km, IPCC default values or local values may be used) i Type of residual waste/products and or compost Qy,treatment, i Quantity of residual waste/products and/or compost i produced in year y (tonnes) CTy treatment, i Average truck capacity for residual waste/products/compost i transportation (tonnes/truck) DAFtreatment,i Average distance for residual waste/products/compost i transportation (km/truck) Equation for Methane Emissions during Composting:

Where : EFcomposting Emission factor for composting of organic waste (t CH4/ton waste treated). Emission factors can be based on facility/site-specific measurements, country specific values or IPCC default values (table 4.1, chapter 4, Volume 5, 2006 IPCC Guidelines for National Greenhouse Gas Inventories). IPCC default values are 10 g CH4/kg waste treated on a dry weight basis and 4 g CH4/kg waste treated on a wet weight basis. No runoff water outlay from the composting facility as the water is reused several times by

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recycling facility. Thus, emission from runoff water from the composting facility is zero. The compost storage and utilization facility project emissions are zero.

Description of baseline and its development for sewage treatment plant

The project activity is an anaerobic sludge treatment system with biogas recovery and combustion to an existing sludge treatment system. Thus methane is captured thereby preventing emissions of CH4 to atmosphere. Hence, the applicable baseline is the amount of methane that would be emitted to the atmosphere during the crediting period in the absence of the project activity. This project activity comprises measures that recover methane from biogenic organic matter in sewage by means of anaerobic sludge treatment with biogas recovery and combustion to an existing sludge treatment stream. This is category (iii) of all the categories mentioned in the III.H. Methane Recovery in Wastewater Treatment. The project activity also involves installation of 3MW power plant based on recovered biogas during sewage treatment facilities. The electricity generated by biogas engine generator set is used to run various units of sewage treatment plant that would displace electricity from the grid. Therefore the baseline emissions are the amount of electricity displaced from the grid. Methodological choices for the calculation of baseline, project, leakage emissions and emission reductions are explained below for the small scale methodologies AMS.III.H. and AMS.I.D. Emission reductions from the project activity as per AMS III.H. Baseline Emissions: Baseline emissions for the systems affected by the project activity may consist of: (i) Emissions on account of electricity or fossil fuel used (BEpower,y) (ii) Methane emissions from baseline wastewater treatment systems (BEww,treatment,y) (iii) Methane emissions from baseline sludge treatment systems (BEs,treatment,y) (iv) Methane emissions on account of inefficiencies in the baseline wastewater treatment systems and presence of degradable organic carbon in the treated wastewater discharged into river/lake/sea (BEww,discharge,y)

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(v) Methane emissions from the decay of the final sludge generated by the baseline treatment systems (BEs,final,y)

BEy = { BEpower,y + BEww,treatment,y + BEs,treatment,y + BEww,discharge,y + BEs,final,y}

Where: BEy Baseline emissions in year y (tCO2e) BEpower,y Baseline emissions from electricity or fuel consumption in year y (tCO2e) BEww,treatment,y Baseline emissions of the wastewater treatment systems affected by the project activity in year y (tCO2e) BEs,treatment,y Baseline emissions of the sludge treatment systems affected by the project activity in year y (tCO2e) BEww,discharge,y Baseline methane emissions from degradable organic carbon in treated wastewater discharged into sea/river/lake in year y (tCO2e). The value of this term is zero for the case 1 (ii). BEs,final,y Baseline methane emissions from anaerobic decay of the final sludge produced in year y (tCO2e). If the sludge is controlled combusted, disposed in a landfill with biogas recovery, or used for soil application in the baseline scenario, this term shall be neglected.

Project Activity Emissions Project activity emissions from the systems affected by the project activity are: (i) CO2 emissions on account of power and fuel used by the project activity facilities (PEpower,y); (ii) Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation

(PEww,treatment,y); (iii) Methane emissions from sludge treatment systems affected by the project activity, and not equipped with biogas recovery in the project situation (PEs,treatment,y);

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(iv) Methane emissions on account of inefficiency of the project activity wastewater treatment systems and presence of degradable organic carbon in treated wastewater;( ww discharge y PE ); (v) Methane emissions from the decay of the final sludge generated by the project activity treatment systems ;( s final y PE ); (vi) Methane fugitive emissions on account of inefficiencies in capture systems ( fugitive y PE ); (vii) Methane emissions due to incomplete flaring ( flaring y PE ); (viii) Methane emissions from biomass stored under anaerobic conditions which does not take place in the baseline situation (PEbiomass,y)

PEy = PEpower,y+ PEww,treatment,y + PEs,treatment,y+ PEy,ww,discharge + PEs,final,y + PEfugitive,y + PEbiomass,y+ PEflaring,y

Where: PEy Project activity emissions in the year y (tCO2e) PEpower,y Emissions from electricity or fuel consumption in the year y (tCO2e). PEww,treatment,y Methane emissions from wastewater treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tCO2e). PEs,treatment,y Methane emissions from sludge treatment systems affected by the project activity, and not equipped with biogas recovery, in year y (tCO2e). PEy,ww,discharge Methane emissions from degradable organic carbon in treated wastewater in year y (tCO2e). PEs,final,y Methane emissions from anaerobic decay of the final sludge produced in year y (tCO2e). PEfugitive,y Methane emissions from biogas release in capture systems in year y PEflaring,y Methane emissions due to incomplete flaring in year y as per the Tool to determine project emissions from flaring gases containing methane(tCO2e) PEbiomass,y Methane emissions from biomass stored under anaerobic conditions.

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Leakage If the used technology is equipment transferred from another activity or if the existing equipment is transferred to another activity, leakage effects at the site of the other activity are to be considered and estimated (LEy). Since the technology is not transferred from another activity, the leakage is considered Zero.

Emission Reduction Emission reductions are estimated ex ante in the PDD using the formulas provided in the baseline, project and leakage emissions sections of the methodology ERy,ex ante = BEy,ex ant - (PEy,ex ant e+ LEy,ex ante)

Where: ERy,ex ante Ex ante emission reduction in year y (tCO2e) LEy,ex ante Ex ante leakage emissions in year y (tCO2e) PEy,ex ante Ex ante project emissions in year y BEy,ex ante Ex ante baseline emissions in year y Therefore the emission reductions achieved by the project activity is limited to the ex post calculated baseline emissions minus project emissions using the actual monitored data for the project activity. The emission reductions achieved in any year are the lowest value of the following: ERy,ex post = Min [ (BEy,ex post - (PEy,ex post+ LEy,post)),(MDy (PEpowerPEbiomass- LEy,post))]

Application of a baseline and monitoring methodology for CFL lighting system

The township construction management team would cover the project cost through sale of GHG emission reductions achieved in their respective townships residential and commercial areas. The maximum wattage rating of an ICL which can be replaced under the CDM is 200 W (from AMS IIJ) & the wattage of an equivalent CFL is 40 W. Hence the maximum annual energy saving potential from a measure taking 3.5 hours usage per day is = 3.5 * 365 *(200-40) = 0.0002 GWhr.
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As per de-bundling criteria, 1% of the small scale threshold is 0.6 GWh per annum for a single measure. As is demonstrated above 0.0002 GWhr per CFL is much less than the de-bundling requirement. Hence this initiative is not a de-bundled component of a large scale activity. B.1. Title and reference of the approved baseline and monitoring methodology applied to the CFL lighting system:

AMS-II.J: Demand-side activities for efficient lighting technologies Table 7 Justification of the choice of the CFL project AMS IIJ requirement Adoption of self-ballasted compact fluorescent lamps (CFLs) to replace incandescent lamps (ICLs) SSC-CPA Qualification Justification The Bureau of Energy Efficiency (BEE) promotes the usage of CFL under which long-life CFL lamps would be distributed in exchange of an incandescent lamp (ICL) to residential households and commercial building. The CFL distribution is taken up by township promoters.

Residential applications only; Aggregate energy savings by a single project may not exceed the equivalent of 60 GWh per year

The CFL lamps would replace incandescent lamp use at existing ICL installations within townships. The baseline for this would be determined. The aggregate energy savings from a township shall not exceed 60 GWh.

CFLs to be of high quality and tested as per relevant international / national standards for the rated lifetime

The distributed CFL lamps shall meet the applicable Indian Standard IS: 15111 for CFLs including amendments on date. Life test reports shall be furnished. The distributed CFL lamps under the CPA shall carry the township scheme logo.

CFLs to be uniquely identified

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Project activity undertakes at least one of the following actions: (i) Directly installing the CFLs; (ii) Charging at least a minimal price for efficient lighting equipment; (iii) Restricting the number of lamps per household distributed through the project activity to six. CFLs adopted to replace existing equipment must be new equipment not transferred from another activity; Ensure that replaced ICLs are destroyed

Points (ii) and (iii) are met by the township management. Point (i) is one of many distribution methods for CFLs . Where direct installation is not done, management sall educate the recipient to install the CFL in high-usage areas.

Since brand-new CFLs replace an existing incandescent lamp (ICL) under proper monitoring, leakage is not applicable. Lamp Destruction Policy shall be implemented and procedures followed for the independent random verification of the destroyed ICL by a DOE.

B.4. Description of baseline and its development: Alternative scenarios to CFL replacement in the context of townships. Under the project activity CFLs replace existing ICLs and hence at the household level three alternative scenarios could be possible. The analysis is re-produced below:

1. Mandatory replacement of ICL with new lighting devices with same or greater efficiency without being registered as a CDM project activity

This alternative is not applicable as there is no mandated legal requirement for replacing ICLs with CFLs in India.

2. Autonomously replacing ICL with new lighting devices with same or greater efficiency without being registered as a CDM project activity.

This alternative-- autonomous growth of CFLs for domestic lighting in India is a possibility. As discussed under the prevailing market barriers in India, efforts by progressive utilities for the bulk procurement and marketing to domestic sector at below market prices through replacement schemes have not succeeded. Further as discussed under barriers at household and commercial building level, the scale of growth required
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for a market transformation which is the stated goal of the CDM scheme faces a number of barriers and would not occur anyway.

3. Continued use of ICLs The scenario of Continued use of ICL represents the lighting option choice in the business as usual scenario in Indian households.

Description of baseline and its development for energy efficient building

The energy baseline consists of the energy use of the existing equipment that is replaced in the case of retrofit measures and of the facility that would otherwise be built in the case of a new facility. Each energy form in the emission baseline is multiplied by an emission coefficient. For the electricity displaced, the emission coefficient is calculated in accordance with provisions under category I.D. For fossil fuels, the IPCC default values for emission coefficients may be used. The baseline determination here is a two-step study conducted to determine the Baseline emissions over the crediting period in absence of project activity.

Step I: Determination of Energy Baseline The energy baseline for the project activity under consideration is the electrical energy use of the HVAC and Lighting system of the baseline building in the townships. The project activity reduces electricity consumption of the HVAC and Lighting system of Energy efficient building in comparison to the baseline scenario. However, there is an avenue kept for electricity generation by diesel generator (DG) set and consumption of the same electricity in Energy efficient building in case of exigencies like loadshedding by the grid. Emission reduction will be based on the reduced electricity drawal from the grid and also based on the reduced load on the DG set that would be used in case of exigencies, due to the reduced electricity consumption in the HVAC and Lighting system, in the project scenario compared to the baseline scenario.

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Step II: Determination of carbon intensity of the chosen baseline As stated above there are two energy sources Electrical energy drawn from PMC Grid (major contributor) Electrical energy drawn from Backup Diesel Generator (minor contributor)

The emission coefficient for each of these sources has been determined herein:

[A] Emission Coefficient of the Western Regional Grid6 Present generation mix for PMC grid with sector wise installed capacities, emission coefficient and generation efficiencies are used to arrive at the net emission coefficient of the chosen grid. As per the provisions of the methodology the emission coefficient for the electricity displaced would be calculated / considered in accordance with Baseline Carbon Dioxide Emission Database Version 3.0 from Central Electricity Authority (CEA), Ministry of Power, Government of India7 . The provisions require the emission coefficient (measured in kg CO2 eq / kWh) to be calculated in a transparent and conservative manner as: (a) The average of the approximate operating margin and the build margin (or combined margin) OR (b) The weighted average emissions (in kg CO2equ/kWh) of the current generation mix. The baseline emission factor is calculated based on both approaches above and the combined margin emissions factor of generation mix has been selected to calculate the baseline emission factor.

Combined Margin Emission Coefficient of PMC Grid is = 0.79371 kg of CO2 / kWh8 generation.

[B] Emission Coefficient for Diesel Generator Emission reductions corresponding to reduced DG set based electricity consumption by the HVAC and Lighting system, will be obtained by multiplying reduction in DG set based electricity consumption of the HVAC system with the emission factor for electricity generated by the DG set. For the project activity under consideration, the emission factor (EFDG) for the electricity generated by DG set, for both the
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baseline and project scenarios have been taken to be equal to the 0.8 kg CO2 e/kWh, a value provided in table I.D.1 in AMS. I.D in Appendix B of the Simplified M&P for small scale CDM project activities (Version 13, Sectoral Scope: 1, EB 36). In considering the value, it has been assumed that the DG sets of CPP is a mini grid with temporary service (2 hours a day), operating at 50% load factor. Baseline Emissions The Baseline emissions associated to grid electrical energy are computed as a product of the Energy Baseline (i.e. electrical energy use of the baseline building) and emission coefficient of PMC grid. The Baseline emissions associated to electrical energy from DG are computed as a product of the Energy Baseline (i.e. electrical energy use of the baseline building during power failure from gird) and emission coefficient of Diesel based power generator. The sum of above two would give the total baseline emissions.

Leakage The project activity involves installation of energy efficient equipments / technologies utilized in building to conserve energy. As per the Indicative simplified baseline and monitoring methodologies for selected small-scale CDM project activity categories, if the energy efficiency technology is equipment transferred from another activity, leakage is to be considered. The energy efficiency technologies adopted in the project activity does not involve any equipment transfers from another activity or vice versa. The same may be verified on site. Therefore there would be no net change of anthropogenic emissions by sources of greenhouse gases outside the project boundary. Therefore as per the AMS II E guidance project proponent does not need to consider these emission sources as leakage in applying this methodology. Therefore project proponent has not taken leakage into consideration.

Key information and data used to determine the baseline scenario are as provided in the following table -

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Table 8 Variable concerning equipment and their parameters and data sources for energy efficient building. Variable EChiller,b Parameters Electricity that would have been consumed by the chiller plant of Energy efficient building in the baseline scenario (in MWh) Data sources Energy simulation based on the design parameters for the baseline building

EPumps,b

Electricity that would have been consumed by the chilled water pumping system (without VFDs in the pumps of the primary chilled water loop) of Energy efficient building in the baseline scenario (in MWh)

Energy simulation based on the design parameters for the baseline building

EAHUs,b

Electricity that would have been consumed by the AHUs (without VFDs on the fans) of Energy efficient building in the baseline scenario (in MWh)

Energy simulation based on the design parameters for the baseline building

ELighting,b

Electricity that would have been consumed by the Lighting (without CFLs and occupancy sensors) of Energy efficient building in the baseline scenario (in MWh)

Energy simulation based on the design parameters for the baseline building

Top,HVAC,b Operating hours of the HVAC system of Energy efficient building in the baseline scenario

Expected occupancy pattern report for Energy efficient building CEA published CDM Carbon dioxide baseline database

EFGrid,

Combined margin emission factor (in tCO2/kWh) of the Western Regional Electricity grid (calculated ex-ante and kept constant for the entire crediting period)

EFDG

CO2 emission factor (in tCO2/kWh) for electricity generated by the DG set in

Table I.D.1 in AMS. I.D in Appendix B of the


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Energy efficient building

Simplified M&P for small scale CDM project activities (Version 13, Sectoral Scope: 1, EB 36).

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3.2.2 PROJECT BOUNDARY


Description of the project boundary for solar water heating

As defined by the used small-scale methodology: The physical, geographical site of the renewable energy generation delineates the project boundary.

Water Treatment

Input Water Tank

Solar Collector

Output hot water tank

Water Treatment

Back-Up hot water Devices at end user

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Description of the project boundary solid waste management

The project boundary is the physical, geographical site and the itineraries between them.

Biogas Plant

Electricity Generation + Canteen

Vermin Composting Facility

Compost Curing & Usage

SW Collection Points i.e. Households

SW Transportation System

SW Segregation System

Organic Waste Converter

Compost Curing & Usage

Recovered Reusable Materials

Selling Facility to Vendors

Inert Waste Hand Over to PMC

PMCs SWDS

Description of the project boundary for sewage water treatment plant

As mentioned in the approved methodology, the project boundary encompasses the physical, geographical site where the wastewater treatment takes place in baseline and project situation. It covers all facilities affected by the project activity including sites where the processing, transportation and application or disposal of waste products as well as biogas takes place. For the proposed project the project boundary is from the point of entry of raw effluent into the Screen Chamber to the treated effluent generated from the

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Clarifier tank and till the point of electricity generation. The project boundary diagram is given as follows:

Description of the project boundary for CFL lighting system

The project boundary is the physical, geographical location of each measure (i.e. each CFL) installed. The CFL installed is energy efficient in comparison to the comparable conventional incandescent lamp (ICL) and by virtue of installation in grid-connected households, reduces the need for electricity. The electricity is supplied by the grid which is pre-dominantly fossil fuel based. Therefore, in-directly GHG emissions (CO2) from grid-connected power plants are reduced. Other sources/ gases are deemed negligible.

Source

Gas /

Included Excluded

Justification / Explanation

CO2 Baseline Power plants serving the electricity grid Included CH4 Excluded Main emission source. Excluded for simplification. This emission source is assumed to be very small

N2O

Excluded
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Excluded for simplification. This emission source is assumed to be very small Project Activity Power plants serving the electricity grid CO2 CH4 Included Excluded Main emission source. Excluded for simplification. This emission source is assumed to be very small Excluded for simplification. This emission source is assumed to be very small

N2O

Excluded

Description of the project boundary for energy efficient building

For the project activity under consideration in any of the township, the project boundary will include energy efficient building where the energy efficiency measures have been taken and which result in consumption of lesser amount of electricity consumption by the building. However, reduced electricity consumption by Energy efficient building will ultimately result in drawl of lesser amount electricity from Electricity grid which is a part of the Pune Municipal Corporations electricity grid. For computation of emission reductions resulting from the project activity, PMCs electricity grid and all the power plants catering to the grid shall be considered in order to arrive at the emission factor corresponding to power generation in the grid. However, the emission factor corresponding to power generation in the grid, can been taken to be constant for the computation of emission reduction for the entire crediting period.

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CHAPTER 3.3 ADDITIONALITY

3.3.1 ADDITIONALITY for solar water heating

To prove the additionality of the project activity, Combined tool to identity the baseline scenario and demonstrate additionality (Version 02; EB 28) is used. The stepwise demonstration is given below.

STEP 0. Preliminary screening based on the starting date of the Project Activity The starting date and completion of the Project Activity is mentioned. Evidence of consideration of CDM incentive for the project and CDM incentive usage The evidence must be provided that the incentive from the CDM was seriously considered in the decision to proceed with the Project Activity. While making the decision about the setting up of the Project Activity, The incentive from the CDM has been considered by Magarpatta Township Development and Construction Company Limited and Amanora Park Town and Celestial City and Megapolis and Nanded City depending upon that it will be that, although it was possible to take the Project Activity capital cost from the residents (end users) of the township, the township will provide the Solar Thermal Water Heating Facility to the residents, free of capital cost and as an Additional Infrastructure Facility of the township. Even no financial subsidies from any government department were taken in expectation of the CDM incentive.

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Thus, the funds obtained in the form of CDM incentive will be utilized for covering up a part of the capital cost of the project, addition of new solar systems, maintenance and operations of the project to keep it functioning continuously. No other source of revenue is there expect CER revenue for the project activity. This project is a real live example of how clean solar energy usage can be reached to a large mass of people directly, creating environmental awareness in them and making them an integral part of the fight against the global warming.

STEP 1. Identification of alternative scenarios Sub-step 1a. Defining alternative scenarios to the proposed CDM Project Activity Alternative 1. The proposed Project Activity undertaken withought being registered as a CDM Project Activity; Alternative 2. Electric hot water storage geysers usage at end user; Alternative 3. LPG hot water storage geysers usage at end user; Alternative 4. Centralised Fossil fuelled boiler; Alternative 5. Centralised Biomass fuelled boiler; Alternative 6. Centralised Electricity fuelled boiler;

STEP 2. Barrier analysis Sub-step 2a. Identifying barriers that would prevent the implementation of alternative scenarios Barriers Checked : Technological barrier Investment barrier Government regulation barrier Social barrier Space barrier Logistical barrier Risk of technology failure barrier

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Table 9 Barrier Analysis for Solar Thermal Water Heating Alternative 1 : The Project Activity undertaken without being registered as a CDM Project Activity No technological, logistical, social or other barriers identified. Alternative 2 : Electric hot water storage geysers usage at end user No technological, investment, logistical, social or other barriers identified. Alternative 3 : LPG hot water storage geysers usage at end user There will be number of water heating systems in the township. To execute this scenario, along with LPG hot water storage geyser devices, the project participant has to supply as many LPG cylinders. Each month or as per consumption of LPG, empty cylinders will require to be replaced with fully filled cylinders. In India, LPG supply chain is highly regulated by the government through its government approved agencies. Procuring, supplying and re-supplying LPG cylinders in such a big quantity will face Government regulations barrier. Considering the huge quantity of LPG cylinders continuous requirement, there will be Logistical barrier to implement the alternative scenario. Alternative 4 : Centralised Fossil fuelled boiler Technical failure of such system, at any moment, will stop the usage of hot water in the entire township. This is a risk of technological failure which will affect all the residents / end users of the system. Such centralised technology for the townships is not available in the relevant geographical area. Alternative 5 : Centralised Biomass fuelled boiler Technical failure of such system, at any moment, will stop the usage of hot water in the entire township. This is a risk of technological failure which will affect all the residents / end users of the system. Such centralised technology for townships is not available in the relevant. Alternative 6 : Centralised Electricity fuelled boiler Technical failure of such system or electrical load shedding done by state electricity department, at any moment, will stop the usage of hot water in the entire township. This is a risk of technological failure which will affect all the residents / end users of the system. Such centralised technology for the townships is not available in the relevant geographical area.

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Sub-step 2b. Eliminating alternative scenarios which are prevented by identified barriers Table 10 Elimination of Alternatives on the basis of Barrier analysis Scenario Barriers identified Selection / Elimination Alternative 1 : The Project Activity Nil undertaken without being registered as a CDM Project Activity Alternative 2 : Electric hot water storage geysers usage at end user Alternative 3 : LPG hot water storage geysers usage at end user Alternative 4 : Centralised Fossil fuelled boiler Selected for Investment analysis

Nil

Selected for Investment analysis

- Government regulation barrier - Logistics barrier

Eliminated

- Risk of technology failure - Technology unavailability for township projects in the respective region.

Eliminated

- Risk of technology failure Alternative 5 : Centralised Biomass fuelled - Technology unavailability for boiler township projects in the respective region. Alternative 6 : Centralised Electricity fuelled boiler - Risk of technology failure - Technology unavailability for township projects in the respective region.

Eliminated

Eliminated

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STEP 3. Investment analysis Identified financial indicator : Net Present Value (NPV) The NPV analysis has been done with a risk-adjusted discount rate. The table following shows estimates for risk classes the investing institutions apply.

Table 10 Estimated risk classes for barrier analysis Risk Class Particulars Description Risk adjusted Discount Rate (RADR) Risk-free rate Government securities issued by Reserve Bank of India (RBI) in April 2008. I Below-average risk Projects with low risks. Typically involve routine replacement without renewal of existing activities or new installations using systems that are a common & proven practice. II Average risk Projects similar of those currently implemented. Projects involving replacement or renewal of existing activities or new installations with limited scale. III Above-average risk Projects with higher than normal, but not excessive risk. Typically involve expansion of existing or similar activities or new installations with limited scale. IV Highest risk Projects with very high risk. Typically involve expansion in new or unfamiliar activities or new installations with a considerably large scale. > 18 % 14 % 12 % 10 % 8.07 %

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Selection of RADR for the Project Activity and different selected alternatives. Particulars RADR Justification Project Activity 14 % The solar thermal installation would fall under class IV. The Project Activity is being implemented on the most considerably large scale in India for a township. Thus, risk class IV can be adopted but to ensure a conservative additionality check RADR of risk class III is selected. The solar thermal installation would fall under class IV. The Project Activity is being implemented on the most considerably large scale in India for a township. Thus, risk class IV can be adopted but to ensure a conservative additionality check RADR of risk class III is selected. The electric hot water storage geysers usage is a common and proven practice in India. Risk class I with below average risk is applicable but to ensure a conservative additionality check and to provide a common platform for the comparison of the financial indicators with the Project Activity and alternative 1, RADR of risk class III is selected.

Alternative 1 : The Project Activity undertaken without being registered as a CDM Project Activity

14 %

Alternative 2 : Electric hot water storage geysers usage at end user

14 %

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Table 11 General data / assumptions for NPV calculations Risk-adjusted discount rate [r] Exchange rate2 : Inflation Rate3 [p] Rate of CER4 14 % 1 EUR 65.6300 INR 4.85 % EUR 19.73

The investment analysis of the Project Activity and the alternatives shows following results, Table 12 Comparison of NPV of Project Activity and alternative Particulars Unit NPV NPV NPV NPV Magarpatta Nanded Amanora Celestial 1000 - 92566 Project Data Not Data Not Data Not INR Activity Available Available Available (with CER Revenues) Alternative 1000 INR 1: The Project Activity undertaken without being registered as a CDM Project Activity (without CER Revenue) Alternative 1000 INR 2: Electric hot water storage geysers usage at end user - 167374

NPV Megapolis Data Not Available

Data Not Data Not Data Not Data Not Available Available Available Available

- 49092

Data Not Data Not Data Not Data Not Available Available Available Available

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STEP 4. Sensitivity analysis The summary of Sensitivity Analysis is w.r.t Magarpatta city only , Table14 : Summary of sensitivity analysis of Magarpatta City Particulars Comparison of Net Present Values (NVPs Project Alternative 1 Alternative 2 Activity 1000 INR 1000 INR 1000 INR 92,566 167,374 49,092 77,604 -167,374 -49,092 -107,528 -77,604 -107,528 -107,530 -79,750 -92,566 -92,566 -92,566 -92,566 -167,374 -167,374 -167,374 -174,703 -160,717 -167,374 -167,374 -167,374 -167,374 -49,092 -49,092 -49,092 -50,833 -47,364 -48,382 -49,827 -58,911 -39,274 Is Alternative 1 > Alternative 2

Best Estimate CER Rate + 20% CER Rate 20% Exchange Rate + 20% Exchange Rate + 20% Discount Rate +20% Discount Rate 20% Inflation +20% Inflation -20% Geyser Cost + 20% Geyser Cost 20%

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

STEP 5. Conclusion In this example the sensitivity analysis of magarpatta city shows that alternative 2 (baseline) remains always financially more attractive than alternative 1 (project without CER revenues) when each of the key parameters are changed by +/- 20%.Therefore, alternative 2, i.e. Electric hot water storage geysers usage at end user with electrical consumption from the respected grid can be considered as a robust baseline.

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3.3.2 ADDITIONALITY for solid waste management To prove the additionality of the project activity, Combined tool to identity the baseline scenario and demonstrate additionality is used. The stepwise demonstration is given below. STEP 0. Preliminary screening based on the starting date of the Project Activity The starting date and completion of the Project Activity is mentioned. Evidence of consideration of CDM incentive for the project and CDM incentive usage The evidence must be provided that the incentive from the CDM was seriously considered in the decision to proceed with the Project Activity. While making the decision about the setting up of the Project Activity, the incentive from the CDM is to be seriously considered by Township Developers and depending upon that it was decided that, although it is neither mandatory to implement such project activity nor financially viable and also out of scope for the real estate developers in India, considering the financial support possible through CDM, the township can implement the Project Activity as an Additional Infrastructural Facility of the township. The funds obtained in the form of CDM incentive will be utilized for completing the project activity, its operation and maintenance. The CDM incentive is most required for the sustainable development and continuous operation of the project activity as very limited revenue possibilities are there for the project activity.

STEP 1. Identification of alternative scenarios In India management of Municipal Solid Waste is governed in accordance with Municipal Solid Wastes (Management and Handling) Rules 2000 formulated by Ministry of Environment and Forests (MoEF). It makes mandatory for the municipal corporations to implement a scientific solid waste management system. The rules give guidelines on collection, segregation, storage, transportation, processing and disposal of municipal solid wastes in a scientific sanitary landfill site. Though the dateline for compliance was December 31, 2003 by all the municipal authorities for setting up of waste processing and disposal facilities, however due to a number of constraints only few of them could comply with it. These constraints primarily are lack of infrastructure and

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poor financial status of municipal authorities, lack of awareness, unavailability of technology, poor enforcement of rules & regulations etc.

Sub-step 1a. Defining alternative scenarios to the proposed CDM Project Activity Alternative 1. The Project Activity undertaken withought being registered as a CDM Project Activity. Alternative 2. Continuation of the Local Practice : The Solid Waste Collection, Transportation and Disposal System by local Municipal Corporation.

STEP 2. Barrier analysis Sub-step 2a. Identifying barriers that would prevent the implementation of alternative scenarios Barriers Checked : Technological barrier Investment barrier Government regulation barrier Social barrier Space barrier Logistical barrier Risk of technology failure barrier

Table 15: Barrier Analysis for Solid Waste Management System Alternative 1 : The Project Activity undertaken withought being registered as a CDM Project Activity

Alternative 2 : Continuation of the Local Practice : The Solid Waste Collection, Transportation and Disposal System by local Municipal Corporation

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Sub-step 2b. Eliminating alternative scenarios which are prevented by identified barriers Table 16: Elimination of Alternatives on the basis of Barrier analysis Scenario Barriers identified Alternative 1 : The Project Activity undertaken without being registered as a CDM Project Activity Nil Selected for Investment analysis Selection / Elimination

Alternative 2 : Continuation of the Local Practice : The Solid Waste Collection, Transportation and Disposal System by local Municipal Corporation

Nil

Selected for Investment analysis

STEP 3. Investment analysis Identified financial indicator : Net Present Value (NPV) The NPV analysis has been done with a risk-adjusted discount rate. The table following shows estimates for risk classes the investing institutions apply. Table 17 Estimated risk classes Risk Class Particulars Description Risk adjusted Discount Rate (RADR) Risk-free rate1 Government securities issued by Reserve Bank of India (RBI) in April 2008. I Below-average risk Projects with low risks. Typically involve routine replacement without 10 % 8.07 %

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renewal of existing activities or new installations using systems that are a common & proven practice. II Average risk Projects similar of those currently implemented. Projects involving replacement or renewal of existing activities or new installations with limited scale. 12 %

III

Above-average risk Projects with higher than normal, but not excessive risk. Typically involve expansion of existing or similar activities or new installations with limited scale.

14 %

IV

Highest risk

Projects with very high risk. Typically involve expansion in new or unfamiliar activities or new installations with a considerably large scale.

> 18 %

Table 18 : Selection of RADR for the Project Activity and different selected alternatives. Particulars RADR Justification

Project Activity

14 %

The ISWMPU System would fall under class IV. The Project Activity is being implemented in the township only. The failure of such mechanism will result in making the neighborhood of households messy. Thus, risk class IV can be adopted but to ensure a conservative additionality check RADR of risk class

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III is selected. Alternative 1 : The Project Activity undertaken withought being registered as a CDM Project Activity 14 % The ISWMPU System would fall under class IV. The Project Activity is being implemented in the township only. The failure of such mechanism will result in making the neighborhood of households messy. Thus, risk class IV can be adopted but to ensure a conservative additionality check RADR of risk class III is selected.

Alternative 2 : Electric hot water storage geysers usage at end user

14 %

It can be titled as the Risk Free Alternative. As the Local Practice include collection, transportation and disposal of solid waste by Municipal Corporation. The only Investment that would have been involved in this scenario would have been in providing a proper solid waste collection system to the residents of Township so that it can deposited at the Deposit Pits or Containers placed by Municipal Corporation of Pune . After that point, entire scenario would have been implemented by the Municipal Corporation. Although we can use RADR of Risk Free class here, we have taken RADR of risk class III to ensure a conservative additionality check.

General data / assumptions for NPV calculations Risk-adjusted discount rate [r] Exchange rate2 : Inflation Rate3 [p] Rate of CER4 14 % 1 EUR 65.6300 INR 4.85 % EUR 19.73

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3.3.3 ADDITIONALITY for sewage disposal system Project Alternatives Continue usage of less cost intensive flaring system for sewage treatment and meeting the electricity demand from the grid supplied power. Installation of an anaerobic sludge treatment facility capturing biogas in a controlled way from the system to use in a power generation unit. Investment Barrier As per the Waste Water treatment laws of State Pollution Control Board & guidelines of Central Pollution Control Board, sewage needs to be treated to a level where BOD level is below 100 mg/l for disposal on land and less than 30 mg/l for disposal in surface water and industry is free to achieve this using whichever technology it deem fit. Generally the municipal corporations in India have the sewage flaring system for treatment of this high BOD/COD water, which are equally effective and less cost intensive. But in such system methane generated due to decomposition of waste escape into open atmosphere and there is no biogas capturing involved. Biogas comprises methane is a potent GHG and thus harmful to our environment. SMC being conscious towards its social responsibilities has always adopted technologies which have helped in sustainable development of the region. Due to this it adopted the project activity of controlled decomposition of waste in a digester and captures the biogas generated. However it required more on the part of SMC in terms of investments, managerial intervention and operation and maintenance controls of the technology. It also has to invest in other related facilities such as laboratory infrastructure at the site for the analysis of wastes, production & control of bacteria for the digester etc. The project activity also involves power generation using the captured biogas from sludge digesters so required additional investments in construction of anaerobic sludge digesters, biogas engine set, allied systems, required controls and suitably skilled human resource.

Technological barrier The proposed project activity is the extraction of biogas and its combustion in the gas engine. Under the business-as-usual scenario, the plant uses flaring to treat the sewage. This is method of low technology system which is widely in India and is considered lowrisk technology. The present sewage treatment facility, flaring, is able to treat the sewage
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and meet the current environmental standards of sewage released into the water bodies and air. The gas component and characteristics (methane content, calorific value and moisture content etc) influences the performance, gas combustion and life of gas engine since the engines are designed for specific gas characteristics. All operating parameters for the pretreatment component need to be maintained at the right level for the reactor to receive quality feedstock. In any case, inappropriate maintenance of operating conditions in pretreatment poses significant risks to the successful generation of methane. The Digester is critical equipment, which forces methane generation. The operating conditions need to be carefully maintained for efficient operation of the reactor. Owing to such inherent risks and non-availability of appropriate technologies adequately addressing all operation and maintenance issues Digester technology reasonably poses significant risks in operation and maintenance in relation to its simple counterparts. The project activity is sewage gas based power generation. Biogas contains some moisture and its level varies from season to season. At times when humidity levels are high, the moisture percentage tends to be higher and that creates problems in combustion. Quality and quantity of biogas depends primarily on sewage quantity and composition of inlet sludge. Any variations in sludge significantly effect the biogas generation, composition, then the combustion and the power generation.

Regulatory or policy requirements. As per the norms of central Pollution Control Board in India, the effluent with high BOD/COD should not be discharged in open fields or surface water streams without treatment. The limit for BOD levels is 100 mg/L for discharging on surface water and 30 mg/L for surface water. There is no regulatory or policy requirement on selection of technology for sewage treatment in industrial facilities. So, the technology adopted in the project activity is not choice for treatment due to high cost involved and the requirement of better operational controls.

Prevailing practice barrier: The proposed project activity first of its kind in the state of Gujarat and is going for CDM. It is not a business-as-usual scenario and carries

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investment & technology risks and thus qualifies the additionality tests. These investment & technology barriers stall implementation of such type of project activity. Emission reductions: Emission Reduction Emission reductions are estimated ex ante in the PDD using the formulas provided in the baseline, project and leakage emissions sections of the methodology ERy,ex ante = BEy,ex ant - (PEy,ex ant e+ LEy,ex ante)

Where: ERy,ex ante Ex ante emission reduction in year y (tCO2e) LEy,ex ante Ex ante leakage emissions in year y (tCO2e) PEy,ex ante Ex ante project emissions in year y BEy,ex ante Ex ante baseline emissions in year y Ex post emission reductions shall be based on the lowest value of the following, as per paragraph 31. Paragraph 31 of AMS III.H. It is possible that the project activity involves wastewater and sludge treatment systems with higher methane conversion factors (MCF) or with higher efficiency than the treatment systems used in the baseline situation. Therefore the emission reductions achieved by the project activity is limited to the ex post calculated baseline emissions minus project emissions using the actual monitored data for the project activity.

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3.3.4 ADDITIONALITY for CFLlighting system

Additionality of the Project Activity Domestic appliances and lighting sector accounts for almost 22%10 of the total electricity demand in India, and contributes almost fully to the peak load as well. It is estimated that there are over 400 million light points in India lighted using Incandescent Lamps (ICLs). ICLs are extremely energy in-efficient, with just 5% of the electricity input converted to light. The remaining is lost as heat. In recent years the Compact Fluorescent Lamp (CFL) has emerged as an energy efficient alternative, as a CFL uses only one-fifth as much electricity as an ICL to provide the same amount of illumination. STEP 1. Identification of alternative scenarios The replacement of the ICLs by CFLs would lead to a potential reduction of over 6,000 MW in electricity demand. The replacement potential of ICLs with CFLs is also borne out of the fact that in the year 2008, ICL sales in India were 734 million whereas CFL sales were just 199 million. The penetration share of incandescent lamps for lighting in commercial and residential sector put together is thus nearly 80% in India. Hence, it is not surprising to note that CFL sales have grown from 35 million in 2003 to more than 199 million in 2008. However a majority of the CFL sales take place in the commercial sector and not the residential sector. The reasons for this are:

The domestic electricity tariff is very low (Rs 1.2 to 5.6) as compared to a much higher commercial sector tariff (Rs 4 to 11).

The average hours of use in the commercial sector of CFLs is much more (> 5 hours/day) than the domestic sector (~ 3-4 hours/day), leading to a faster return on investment.

The CFL first cost is a barrier for the domestic household sector. In the year 2009 a CFL would cost around Rs 80-130. On the other hand, an ICL costs just Rs 10-15.

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Hence initiatives to decrease the use of ICLs are necessary to enhance CFL penetration in households. The CDM scheme represents an initiative towards meeting this objective. Under the CDM scheme CFLs would be distributed to township residents in-exchange of an incandescent lamp. The PoA Procedures of PDD require demonstration that in the absence of the CDM

(i) the proposed voluntary measure would not be implemented, or

(ii) the mandatory policy/regulation would be systematically not enforced and that noncompliance with those requirements is widespread in the country/region, or

(iii) the PoA will lead to a greater level of enforcement of the existing mandatory policy /regulation.

This shall constitute the demonstration of additionality as a whole. STEP 2. Barrier analysis A. Barrier at household consumer level

1. High initial price of CFL The price of CFL (Rs 80-130) to a household consumer is high when compared to an equivalent ICL (Rs 10-15), depending on the CFL wattage rating and manufacturer. Further, the Bureau of Indian Standards (BIS) has mandated that all CFLs starting 1 October 2009 would have a Power Factor (PF) of minimum 0.85 (at present the minimum PF is 0.5). These High PF CFLs, given the technology built-in, are likely to be priced higher. Thus in the business as usual case this implies the initial price barrier of CFLs would only increase in future. 2. Lack of consumer information domestic consumers in a developing country like India, have insufficient information about the costs and benefits of CFLs. Domestic consumers often have a limited understanding of the benefits of CFL life cycle costing. They are often cash-conscious and since the investment in CFL is nearly 10 times that of an ICL, domestic consumers are not willing to make such investments. Building consumer awareness on this aspect is difficult.

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3. Doubts that promised savings will accrue the initial CFLs launched in the Indian market (circa 2000 to 2006) had low costs and also low quality leading to large scale failure rates. The poor performance of first generation CFLs (e.g. a tendency to flicker, and a higher rate of failure before the end of rated lifetimes) created consumer distrust in the CFL technology18. Since 2006, when the Indian Standard 15111 for CFLs is being enforced, a minimum level of quality is assured. However, consumers are still skeptical about the energy savings that will accrue from CFL use.

4. Consumer Bias towards ICL - CFLs unlike an ICL are more susceptible to failure under irregular electric supply conditions, which is common in India. CFL failure takes place as they include electronic parts whereas ICLs just make use of a resistive load. Moreover, ICLs can work at very low voltages and still emit light. CFLs on the other hand can emit light only with a voltage greater than 170 V. The Indian Ministry of Power is pushing for an Accelerated Power Development and Reform Programme (APDRP) to improve electricity supply19. However, the results for this will take some more years to bear fruit. Further, lighting choice is driven by consumer aesthetic preferences and ICL lampshades or luminaries are often aesthetically unsuitable for CFL. It is expected that the demonstration of energy savings using long life CFLs under the CDM scheme would bring about consumer trust in adopting CFLs. The efforts of the Bureau of Energy Efficiency (BEE) under the CDM scheme are focused towards enhancing awareness and promotion of CFLs.

B. Barrier at market level

1. Un-sustainable institutional framework to promote CFLs in India: Some of the progressive utilities in India have tried out bulk procurement and marketing of CFLs to households at below market prices and / or introducing replacement schemes. These efforts were taken by utilities in some states e.g. Andhra Pradesh, Bangalore in Karnataka, Haryana etc with limited success. However, the programmes faltered as either the funding support dried up or the subsidy was withdrawn or the utilities themselves were in poor financial status. The programmes thus could not be continued on a longterm sustainable basis.

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The lack of a sustainable on-ground institutional capacity is sought to be overcome under the CDM scheme. The efforts of the townships under the CDM scheme are focused towards building a credible consumer-township management partnership wherein resources from both entities are pooled in together to procure, distribute and monitor CFL use in households. Though the CDM operational arrangement would last only for the crediting period of the project, it is envisaged that at the end of the crediting period a permanent market shift in favour of CFLs would have taken place in the CPA region as:

These projects would ensure that the scale of operation increases many fold, and the volume of sales reduces the CFL price

Enhanced consumer awareness on the benefits of CFL vis--vis ICL under the CDM scheme and first-hand experience of benefits of lower electricity bills due to shift to CFL and the demonstration of quality long life CFL under the CDM scheme would have generated consumer confidence in CFL.

The institutional mechanism developed under the CDM scheme could also be sustained by manufacturers as a proxy to their marketing chain and effectively utilized to bring down costs as well increase consumer satisfaction

The CDM scheme is expected to increase consumer confidence in using CFL. Further, manufacturers would gain experience in producing quality long life CFLs in the country. Over a period of time, the enhanced consumer awareness should result in higher CFL demand leading to sustainable market transformation to CFL.

C. Investment Barrier

The procurement and distribution of CFLs to households and office buildings entails costs. The costs incurred are towards:

1. CFL purchase

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2. Distribution

Under the assumption that the township management aims to distribute 20 W CFLs replacing around 600,000 ICLs at a fee of upto Fifteen Rupees each. The Rs 15 fee is comparable to the market price of an ICL and therefore much lower than the typical cost for a CFL ~ Rs 80-130, depending on the quality and wattage of the CFL. STEP 5. Conclusion The efforts of the townships under the CDM scheme are focused towards enhancing the uptake of CFLs. The demonstration of energy savings using quality long-life CFLs under the CDM scheme would bring about consumer trust in using CFLs. The CDM scheme focuses on building credible consumer-township management partnerships wherein resources from both entities are pooled in together to procure, distribute and monitor CFL use in households which are likely to be institutionalized over a period of time. The enhanced consumer confidence should result in higher CFL demand leading to sustainable market transformation to CFLs. Overcoming the barriers at household consumer level viz. Institutional, Market and Investment barriers; requires the use of CDM benefit. Emission reductions: The total lumen output of the CFL should be equal to or more than that of the ICL being replaced; lumen output of ICL & CFL shall be determined in accordance with relevant national or international standard/s. In the case of ICL, values in the table below may be used as an alternate option; If a lamp wattage is not in this table, linearly interpreted value shall be used to determine the minimum light output requirements e.g., 492.5 Lumens for a 45 W lamp. The distributed CFL lamps under the CPA shall meet the applicable Indian Standard IS: 15111 for CFLs including amendments on date. The CFLs would deliver atleast the lumens as defined under the Indian national standard IS 418:2004 for ICLs:

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Baseline ICL replaced (Watt)

Rated normal Lumen output (IS 418:2004) 345 620 1240

Likely CFL range (Watt)*

40 W 60 W 100 W

9-10 W 13-15 W 20-23W

Incase the replaced ICL wattage is above 100 W, then AMS IIJ, provisions for linear interpretation of minimum light output requirements as per following table can be used: Baseline ICL replaced (watt) 25 40 50 60 75 90 100 150 200 Minimum Lumen output (AMS IIJ ver 3) 230 415 570 715 940 1227 1350 2180 3090

3.3.5 ADDITIONALITY for Energy efficient building

Alternative I: Selection of Conventional Building equipments/materials (Baseline Scenario); In the above alternative project proponent would utilized conventional building equipments which are less energy efficient when compared with energy efficient building. This alternative is in compliance with all applicable legal and regulatory requirements. This alternative has been operative at other buildings of project proponent. Therefore this alternative does not entail any additional investment, neither does it have any technological or other operational risks associated to its implementation and may be the baseline.

Alternative 2- Implementation of the project activity (Energy Efficient building);


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This alternative is in compliance with all applicable legal and regulatory requirements but there is no legal binding on the project proponent to take up the project activity. Further this alternative was exposed to limitations related to the project activity implementation. These barriers were primarily related to investment issues, technological issues like design and operation of HVAC and lighting system and risks involved with the adaptation of the new technology and its outcome and other operational barriers. These barriers and the risks associated with the implementation of the project activity were realized during the conceptualization stage of project activity and are detailed below. The project participant is required to provide a qualitative explanation10 to show that the project activity would not have occurred anyway and at least one of the listed elements should be identified in concrete terms to show that the activity is either beyond the regulatory and policy requirement or improves compliance to the requirement by removing barrier(s). The barriers faced by the project proponent for this project activity for determining the project additionality are shown below: Investment Barrier Technological barrier Barrier due to prevailing practice

1. Investment Barriers: The construction of energy efficient buildings in the townships by the project proponent has been a voluntary step undertaken to mitigate the impacts of climate change. Such a building is an attractive option as far as the energy efficiency is concerned but involves high investment. A financially more viable alternative to the project activity would have led to higher GHG emissions. The project proponent has taken the initiative of considering the best practice in building construction so that there is reduction in electricity consumption. The office buildings would not be used by the project proponent, instead would be either rented or leased out. The office Building would be rented or leased out for five years. The energy efficiency measures undertaken in the building would reduce the electricity consumption of the HVAC system and the Lighting system. The overall impact of energy reduction would be
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reflected in the annual electricity bill, which would be lesser when compared against the electricity bill of an equivalent conventional baseline building. Since the reduced electricity bill will be directly paid by the lessee, the benefit of reduced cost of operation would be would be accrued by the lessee and not by the project proponent. Also, the price at which the building has been rented or leased out is comparable with the existing market price11. The buildings under Magarpatta project activity can be leased out at Rs 315/Sq ft per month. However even though the buildings are energy efficient, the rate of leasing is comparable with the prevailing market price, which is Rs 165/Sq ft per month. This clearly demonstrates that, the project proponent doesnt gain any additional revenue for constructing energy efficient buildings (Project activity). Thus, in spite of the reduction in electricity consumption over baseline building, the benefits are not claimed by the project proponent who has invested in such an energy efficient building. Thus CDM benefits would help the project proponent in building up the gap between the investments done on energy efficient building. The other technological barriers faced by the project proponent have been described below: 2. Technological Barriers: The alternatives for various energy efficiency measures to determine the baseline along with the barriers for each project activity is presented in following table.

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Table 19 Technological Barriers for Efficient Building System Parameters affecting Energy Consumption A. Civil Work including Exterior wall construction Alternative A-1: Mass wall of U-factor 0.58 Btu/hr. ft2. 0F Alternative A-2: 8 thick AAC blocks with plaster inside and outside and This type of wall construction would entail low capital investment. The expected cost of such Alternative A-2 would not be a credible and realistic alternative option for Project Proponent to Alternatives Barriers Baseline Option

wall would be INR 90.6 implement because of Million. AAC block wall construction would entail comparatively the high investment involved and can be excluded from further consideration as a possible baseline scenario. Instead, alternative A-1 which is a lower investment option, can be concluded to be the viable option available to Project Proponent in absence of the project activity. Therefore this alternative option is the baseline option for the exterior wall construction.

effective U value higher capital would be 0.32 Btu/hr. ft2. 0F investment. The investment required would be INR 96.1 Million.

B. Exposure of glass wall area

Alternative B-1: The glasses

Such a quality of glass is easily available in

Alternative B-2 would not be a


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used would be plain glass. The U-value of the fenestration would be 1.22 Btu/hr.ft2 .0F on the north and non-north sides. The glass would have shading co-efficient of 0.51 on all sides and 70% visible light transmittance on all sides. -------------------Alternative B-2: The glazing used in the building would be of high performance double glazed panels coated with reflective low e-glass panes and having low Uvalue and solar heat gain co-efficient. The

India. The total cost of glazing for the building would be around INR 10.8 Million. The kind of glass that has been used for glazing of Energy efficient building is not yet locally manufactured by Indian glass industry. The cost of glazing for Energy efficient building was around INR 13.6 Million.

credible and realistic alternative option for Project Proponent to implement because of the high investment involved and can be excluded from further consideration as a possible baseline scenario. Instead, alternative B-1 which is a lower investment option, can be concluded to be the viable option available to Project Proponent in absence of the project activity. Therefore this alternative option is the baseline option for the exposure of glass wall area.

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U-value of the fenestration would be 0.35 Btu/hr.ft2 .0F on the north. High quality glass (with shading co-efficient of 0.34 on all sides), would be used. The fenestration would have a visible light transmittance of 44% all sides. C. Lighting Alternative C-1: Conventional Fluorescent / incandescent lights without occupancy sensors were used. Alternative C-2: Efficient fluorescents (T5s) will be used along with occupancy sensors in offices and food Capital cost would be high for the energy efficient lighting with occupancy sensors (INR 4.1 Million). Moreover maintenance of the occupancy sensors and lighting Capital cost (INR 3.0 Million) as well as operating cost is low. The alternative C-2 would not be a credible Project Proponent to implement due to the higher capital as well as maintenace cost. It can be excluded from further consideration as a possible baseline. alternative F-1entailing lower capital cost can be concluded to be the viable option available to Project in absence of the

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courts.

fixtures is necessary, thereby requiring additional manpower and increasing the maintenance cost.

project activity. Therefore this alternative option is the baseline option for lighting.

STEP 5. Conclusion As elucidated above, net effect of reduction in electricity consumption of Energy efficient Building in the township projects is the cumulative effect of each and every energy efficiency measure. Further, Project Proponent also had to keep adequate stock of certain expensive spare parts of the HVAC & lighting system, thereby incurring additional expense. The common practice assessment further substantiated the fact that the project activity is not a baseline scenario. The project activity Energy efficient building is among the first few projects of its kind in the country. The additional investment for the project activity would have to be entirely borne by the project proponent. However with objective of contribution to GHG abatement and thereby availing the credits from GHG emission reduction, the management of Project Proponent has gone ahead with the project option. The corporate decision to invest In overcoming the barriers encountered in the project activity implementation In the project activity has been guided by the anthropogenic greenhouse gas emission reductions the project activity would result in and the associated carbon financing the project activity would receive through sale of Certified Emission Reductions under the Clean Development Mechanism.

Therefore, the project activity is not a plausible baseline option. The baseline scenario would be a combination of the baseline options for each of the parameters in the HVAC and lighting system, that are conducive to energy conservation in Energy efficient building, i.e. the baseline option is a combination of alternatives which together

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PART 4 CONCLUDING OBSERVATIONS

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CHAPTER 4.1 CDM BENEFITS

Table 21 Cost implication of CDM initiatives for Township Projects. (Cost per Household) Township Solar Water Heating System Solid Waste Management System CFL Lighting System Sewage Water Treatment System Efficient Energy Building System*

Cost (in Rs.)

4,000

4,800

3,200

4,800

2,000

*Efficient Energy Building cost calculated per occupant. Observations 1. Extra cost per household to attain all the facility ( 4,000 + 4,800 + 3,200 + 4,800 ) is only Rs. 16,800 for a consumer. 2. Over head for builder can be rounded off to Rs. 20,000 per household.

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Table 22 Developers overhead cost above basic construction cost and corresponding tCO2e saved.

Solar Water Township Heating System Cost per house (in Rs.) Overhead Cost (in Rs.) tCO2e saved. (per year) 0.57 450 4,000

Solid Waste Management System

CFL Lighting System

Sewage Water Treatment System

Efficient Energy Building System*

4,800

3,200

4,800

2,000

1,000

300

1,000

450

0.75

0.22

0.45

0.35

Ratio of Investment and Emission Reduction Proportional Benefit Ranking 3 4 1 2 5 7807 7733 15909 12888 7000

*Efficient Energy Building cost calculated per occupant. Observations 1. CFL Lighting system is giving highest return in terms of investment. 2. Solid Waste Management system is costly initiative but its emission reduction is highest.

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Table 23 Financial Implication Summary

Township

Magapatta City Rs.4900/Sq. ft Rs. 20,000 per house

Nanded City Rs.2900/Sq. ft Rs. 20,000 per house

Amanora Park Town Rs.4800/Sq. ft Rs. 20,000 per house

Celestial City Rs.3100/Sq. ft Rs. 20,000 per house

Megapolis Rs.3000/Sq. ft Rs. 20,000 per house

Floor Rates Additional cost due to initiatives Customers burden Builders Burden Opportunity of sharing cost burden Passing on the monetary benefits by builders to customers

30 %

30 %

30 %

30 %

30 %

70 %

70 %

70 %

70 %

70 %

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

*Efficient Energy Building cost calculated per occupant. Observations 1. For all townships projects additional cost of implementing initiatives is same irrespective of the floor rates. 2. Cost of installation is proportionally (30:70) is to be shared between customer and builder. 3. Builder are ready to pass on the financial benefits incurred from the CDM initiatives.
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Table 24 customers willingness to pay for a housing incorporating CDM benefits. ACTIVITIES Magarpatta City Solar Water Heating Solid Waste Management Sewage Treatment Plant CFL Lighting System Energy Efficient Building 3% 3% 4% 4% 2% 4% 4% 3% 4% 2% 3% 3% 4% 4% 2% 2% Nanded City TOWNSHIP Amanora Park Town 3% Celestial City 4% Megapolis

2%

3%

4%

4%

3%

4%

2%

Table 25 Builders willingness to invest in CDM backed projects. ACTIVITIES TOWNSHIP Magarpatta City Solar Water Heating Solid Waste Management Sewage Treatment Plant 2% 4% 3% 3% 2% 3% 4% Nanded City Amanora Park Town 2% Celestial City 2% 3% Megapolis

2%

4%

4%

4%

3%

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CFL Lighting System Energy Efficient Building 2% 4% 3% 3% 4% 2% 4% 4% 4% 2%

CONCLUDING OBSERVATIONS 1. Enabling CDM initiative is a practical and feasible technique for sustainable development. 2. Township Projects in Pune are in a position to include the CDM initiatives. 3. CFL lighting system is giving highest return from investment. 4. Implementation cost of Solid Waste Management system is highest. 5. Installation cost is to be shared by customers and builders. 6. There is willingness among builders and customers to invest in sustainable projects like CDM.

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Bibliography Books Stuart Summerhayes, Cdm Regulations Procedures Manual, Ecodesk, UK, 2007 Paul Hawken, The Ecology of Commerce: A Declaration of Sustainability, Penguin UK, 2008 Perf S Building and Owen V Griffiths, Understanding the CDM Regulations, Spons Architecture Prize Book, Washington, 2008

IGES , Integrated Capacity Strengthening for the CDM (ICS-CDM), IGES Publication, India, 2009 Sren Ender Ltken and Axel Michaelowa, CDM: from policy to practice, Edward Elgar Publishing, Cheltenham, UK, 2008 Drafts Institute for Global Environmental Strategies (IGES), Clean Development Mechanism (CDM) capacity building workshop for Indian developers in biogas and biomass projects March, 2010 E.V. Murray, The emerging market for carbon trading, Cab Calling, Vol 1, Oct-Dec, 2007 Iwan Bhdhiiartha, Chamhuri Siwar, Hassan Basri, Simulating A Carbon Hedge Fund and Trading Advantage from the Municipal Solid Waste Management : The Role of Waste-to-Carbon in Malaysia, Institute of Environment and Development, Malaysia, Vol 27, June 2007 Global Environment Centre Foundation, CER Estimation Toolkit, Ministry of Environment, Japan, March,2007

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http://ecosystemmarketplace.com/documents/acrobat/StateoftheVoluntaryCarbonMarket1 8July_Final.pdf. The Conference Board (October 18, 2006). Carbon Footprint an Increasing Management Concern, Executive Action, No. 213. Ecosystem Marketplace and New Carbon Finance. (2007). Picking Up Steam: State of the Voluntary Carbon Markets 2007. Available at http://ecosystemmarketplace.com/documents/acrobat/StateoftheVoluntaryCarbonMarket1 8July_Final.pdf. Carbon Registry Services (2006). Managing an Emission Portfolio and Transacting Across Multiple Registries. Lash, Jonathan and Wellington, Fred (2007). Competitive Advantage on a Warming Planet. Harvard BusinessReview. BSR (2007). Getting Carbon Offsets Right. Available at www.bsr.org/reports/BSR_Getting-Carbon-Offsets-Right.pdf. Bio-Carbon and Corporate Climate Strategy: A Business Brief on Emissions Reductions via Forestry and Land Use Projects, (2007). Available at www.bsr.org/reports/BSR_Bio-Carbons-Business-Brief.pdf. Getting Carbon Offsets Right: A Business Brief on Engaging Carbon Offset Providers, (2007). Available at www.bsr.org/reports/BSR_Getting-Carbon-Offsets-Right.pdf. A Three-Pronged Approach to Corporate Climate Strategy, (2006). Available at www.bsr.org/reports/BSR_Climate-Change-Report.pdf.

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