proyecto wind la ventosa mexico

8/3/2019 Proyecto Wind La Ventosa Mexico

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

CDM Executive Board

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CLEAN DEVELOPMENT MECHANISMPROJECT DESIGN DOCUMENT FORM (CDM-PDD)

Version 03 - in effect as of: 28 July 2006

CONTENTS

A. General description of project activity

B. Application of a baseline and monitoring methodology

C. Duration of the project activity / crediting period

D. Environmental impacts

E. Stakeholders comments

Annexes

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan


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SECTION A. General description of project activity

A.1 Title of the project activity:

>>

Title: Eurus Wind Farm.

Version: Version 5.0.

Date: 20/11/2009

A.2. Description of the project activity:

>>

The Project activity consists in the development of a 250.5 MW renewable energy project in Mexico inthe state of Oaxaca.

The activity for this project is aimed at taking advantage of the available wind resources to providerenewable energy. Secondly, this energy can be sold to potential Mexican partners or clients seeking acleaner and more sustainable method of power generation. A drop in greenhouse gas (GHG) emissionscan be also assured using this approach because less CO2 will be released into the atmosphere on due tothe fact that less electricity will be produced at the fossil fuel power plants. The total power to be installed

is 250.5 MW.

Projects such as this one can be carried out since both the speed and quality of the wind resources in thisarea are ideal for the implantation of renewable energy at the proposed site for the project. In addition,the existence of already present High Voltage lines would make evacuation possibilities more feasible.Wind data are available at the Instituto de Investigaciones Elctricas (IIEE) these being recorded by ameasurement tower installed in May 2000 at the location chosen for the future Wind Farm (La Venta).The coordinates of the measurement tower are as follows: 94 49 41 W and 16 34 31N.

At the moment, the preliminary work phase on the wind farm construction is nearing conclusion. Windmeasurements has been implemented, permits has been obtained and as soon as the project is registeredas a CDM project financial close could be reached and as soon as final permits are granted, constructionwork can start. Both construction and operation of the wind farm will be performed by a private projectdeveloper using in-house technology and procedures.


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The project has already obtained the Generation Permit from the CRE on July 6 of 2006, available ininternet and with the code number E/531/AUT/2006 which is available athttp://www.cre.gob.mx/registro/permisos/electricidad/e531aut06.pdf. The project has also obtain thepermission from the CRE to get access to the grid for the total capacity of the project, 250.5 MW havingreceived the letter on September 22 of 2006.

Environmental and social benefits other than GHG emission reductions

In addition to lower GHG emissions, other environmental and social benefits would include:

Enhancement of local grid performance; there will be fewer incidences of voltage drops andlocal power shortages through the use of local energy resources (wind)

New jobs can be created in the area; particularly during the construction phase of the wind farm,and afterwards the jobs required for maintenance and operation during the expected service life

of the wind farm Foreign capital will be attracted, yielding higher taxable income

Less dependence and depletion of fossil fuels as energy sources

Additional uses of land will be found, bringing in additional sources of income for landownerssuch as leasing, etc. without sacrificing current land use practices.

Reduction of non-GHG emissions from replaced power generation

Boundaries

In accordance with the baseline methodology chosen the following boundaries apply:

For the determination of project activities only the site where the wind power plant is going to beinstalled is to be considered.

The electricity grid that is relevant for the determination of baseline emissions was identified as theMexican national grid.

A.3. Project participants:

>>

Name of Party involved (*)((host) indicates a host Party)

Private and/or publicentity(ies) project participants

Kindly indicate if the Partyinvolved wishes to be


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ENERGIA, S.A. de C.V. is the main shareholder with 498 shares; TEG ENERGIA, S.A. de C.V. is a100% subsidiary of CEMEX MEXICO S.A de C.V. The rest of the shareholders are: CEMEX MEXICO,S.A. de C.V. with 1 share and INMOBILIARIA RIO LA SILLA, S.A. de C.V. with 1 share. Thisconfiguration is based on current renewable energy regulations.

The self-consumption company will contract a project developer for construction, start-up, operation and

maintenance.

A.4. Technical description of the project activity:

The Project is a 250.5 MW wind power project, expected to produce 989.5 GWh per year, with acapacity factor of 45.1%. The minimum expected operational lifetime is 20 years.

Eurus is studying several manufacturers to determine the most appropriate type of wind turbine, taking

local factors into consideration to draw up optimal technical parameters aimed at guaranteeingsustainable development in accordance with the Mexican Environmental Permit.

In this case it is expected to install wind turbines of 1,500 kW each.

Total Power 250.5 MW

Rated Power per turbine 1,500 kW

Cut in-cut-out wind 3 / 25 m/s

Nominal output at velocity 13 m/sRated output Voltage 690 V

No. of turbines 166

Equivalent annual operating hours 3,950

Annual Production 989,5 GWh

Capacity factor 45.1%

Transmission line length 19 km

Transmission line Voltage 230 kV

Wind Farm output transformer 34.5 kV/230 kVTable 2. Power plant characteristics

A.4.1. Location of the project activity:

>>


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A.4.1.4. Detail of physical location, including information allowing theunique identification of this project activity (maximum one page):

>>The Project is located in La Venta windy region in the Isthmus of Tehuantepec, state of Oaxaca, Mexico.The site is near the municipality of Juchitn de Zaragoza. The Project will be built on land leased from

private landowners extending for at least thirty (30) years.

The coordinates for the last wind mast installed are: 94 49' 41 W and 16 34' 31 N. The wind farmextension will be approximately 1,825 ha around this wind mast.

Eurus wind farm 250.5 MW


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

>>Grid connected Power Generation. Sectorial Scope 1. Energy Industries

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

>>After wind measurements and analysis, a pre-selection of appropriate wind turbines was carried out. Dueafter the relevant wind measurements and analysis were made, a pre-selection of appropriate windturbines was carried out. Due to the extreme wind conditions at the site chosen, only a few models willbe suitable for the purpose. The IT-1500 turbine is the type to be installed and will have a nominalcapacity of 1,500 kW per turbine. The manufacturer is Ingeniera de Turbinas Elicas, S.A. (Ingetur).

This turbine is a three-bladed rotor machine with asynchronous six-pole generators. The rated voltage ofthe generator for this wind turbine is 690V, with 690V/34.5kV each transformers.

The line to be connected to the CFE transformer will be a 230 kV and 19 km long line, running from thewind farm control house to the CFE transformer.

Annual generation is estimated to be 989.5 GWh per year. This output is based on the long-term forecastof the net equivalent annual hours (hours per year with full power yield). These net equivalent hours areestimated to be 3,950 hours per year, which implies a capacity factor of 45.1%.

A.4.4 Estimated amount of emission reductions over the chosen crediting period:

>>A fixed crediting period formula starting in October 1, 2008, has been selected, with an overall tCO 2emission reduction expected of 6,031,828 tCO2 for the wind farm.

Year Annual estimation of emissionreductions

in tonnes of CO2 e

2008 152,035

2009 603,183

2010 603,183


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The amount of emission reductions achieved under the project will vary for each crediting year,depending on the total production measured. Our technical office took on the task of estimating the long-term forecast of net equivalent production hours that is the net hours at full power operation. This task isis essential since accurate energy output estimates must be made in order to determine the cash flowsgenerated by the wind farm and thus determine the financing possibilities. Nevertheless, these estimatesare conservative, and based on historical data taken from records of meteorological readings and data

from wind measurement masts.

For this wind farm a total equivalent of 3,950 hours per annum are estimated, which would yield 989.5GWh per year (after installing the 250.5 MW). There would be an emission factor of 609,6 tCO2/GWh intotal emission reductions (detailed information is given in Section B and Annex 3):

Production CO2 emission reductionYearly 989.5 GWh 603,183 (average)

Total (2008-2018)

9,895 GWh 6,031,828

Table 4. Wind farm production and emission reductions

A.4.5. Public funding of the project activity:

>>No public funding is used for this project activity.

SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to theproject activity:

>>For the project activity, the approved baseline methodology used is ACM0002 Version 06, consolidatedbaseline methodology for grid-connected electricity generation from renewable sources.

B.2 Justification of the choice of the methodology and why it is applicable to the projectactivity:

>>This type of renewable energy project falls within the specifications set out for electricity capacityadditions i.e. wind sources and therefore, the methodology proposed is suitable for this project.


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B.3. Description of the sources and gases included in the project boundary

>>Source Gas Included? Justification / Explanation

CO2 Yes

Conventional electricity generation fromNational Grid is based on fossil fuel power

plants.CH4 No NA

Baseline Emission National Grid

N2O No NA

CO2 - -

CH4 - -

Project Activity NA

N2O - -Table 5. Sources and gases included in the project boundary

B.4. Description of how the baseline scenario is identified and description of the identified

baseline scenario:

>>The project focuses on an electric sector that is not dominated by power generation sources with zero orlow operating costs such as hydro, geothermal, wind, solar, nuclear, and low-cost biomass. Furthermore,this fuel mix is expected to persist for the duration of the crediting period. Production percentages areshown below for the year 2004 and a forecast for 2014 for the methodology chosen, that is, low-cost/must run resources: hydro, geothermal, wind, low-cost biomass, nuclear and solar generation.

2004 2014

Fossil Fuel 80.50% 86.10%

Nuclear 4.40% 2.50%

Geothermal & wind 3.10% 2.50%

Hydropower 12.00% 8.90%

Total 208,634 GWh 348,170 GWhTable 6. Source: Sener, Prospectiva del sector elctrico 2005-2014. Grfica 29. p. 81

The forecast for power installed in Mexico in 2008 is 51,320 MW, which is the year that the first stageoperations will be commissioned, so the impact of 250.5 MW would not accounts for more than 0.49%of the systems generation mix of electricity.

Total % low/cost mustrun

2004 2014

19.50% 13.90%


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The Project will reduce anthropogenic GHG emissions by supplying zero GHG emission power, whichwill displace conventional electricity generation. Based on official statistics and projections one can seethat the electricity that would have to be generated in the absence of the Project would come basicallyfrom fossil power plants. The Project is expected to reduce CO2 emissions by 6,031,828tCO2 during the10 year crediting period, as described further in the document.

The following table shows the official forecast of the Mexican electricity mix.

Power(MW)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014% as of

2014

Hydro 10,530 10,530 10,530 11,284 11,284 11,284 11,284 11,284 12,184 12,184 12,784 19.9%

CC 12,040 13,289 15,691 16,859 17,518 19,198 20,856 22,298 24,234 25,262 25,262 39.3%

Diesel 2,818 2,598 2,887 2,887 2,813 2,874 2,724 2,724 2,979 2,979 2,979 4.6%

Internal 150 171 171 217 217 228 228 232 232 232 232 0.4%

Wind 3 3 88 88 189 291 392 494 595 595 595 0.9%

Free* 0 0 0 0 0 0 253 291 1,577 3,819 6,178 9.6%

Fuel-Oil 13,983 12,610 12,386 12,346 12,271 12,271 10,512 10,054 9,068 8,718 8,402 13.1%Geo 960 960 960 960 960 960 1,010 1,010 1,010 1,010 1,010 1.6%

Coal 2,600 2,600 2,600 2,600 2,600 2,600 3,300 3,300 3,300 3,300 3,300 5.1%

Dual 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 3.3%

Nuclear 1,365 1,365 1,365 1,365 1,365 1,365 1,365 1,365 1,365 1,365 1,365 2.1%

Total 46,552 46,228 48,780 50,708 51,320 53,173 54,026 55,154 58,646 61,567 64,210 100.0%

Table 7. Source: Sener. Prospectiva del sector elctrico 2005-2014 Cuadro 31 p. 79; *: Free means that the exact type of power plant is notdefined yet. Free power plants are simulated as natural gas power plants.

Wind power installations will comprise 0.9% of the total power installed within the Mexican energy

system in 2014 (not included in the power installed in project) according to long-term planning estimates.Thus power produced from this project will have zero impact on baseline calculations. The Mexicanenergy system will be mainly based on Combined Cycle and Thermal Power Plants. The percentage ofhydro power estimates will reach approximately 20% by 2014.

It also has to be noted that the contribution of wind power to the generation system of almost 600 MWfrom 2012 onwards is very unlikely to happen if these plants do not receive some sort of direct or indirectfinancial support, e.g. in the form of CERs for CDM projects or as demonstration projects financed by

the national government.

Analysis of the additionality of the project

Wind energy in Mexico would be the perfect complement to CDM projects because of its added value.This statement is fairly obvious since all wind farms are being developed as CDM projects in Mexico. It

b l d d th t i d i t ti l l tt ti iti i th b i l


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Definition of alternative scenarios to the project activity that otherwise could be implemented in case thatthe project activity does not reach its operative status.

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

The output of the project activity is emission-free electricity production to be exported to the Mexican

electricity grid. The alternatives are other power plants having to provide electricity for the same enduser. The alternative scenarios include:

1. The proposed project activity not undertaken as a CDM project activity, this being a 250.5 MWwind power plant with 3,950 net equivalent production hours that does not obtain CERs fromCDM registration.

2. Power generation plants from renewable sources with equivalent electricity output within theMexican electrical system, like biomass or minihydro power plants. Due to the size of the project

activity, hydropower plants could only be a viable alternative if there was either a group ofminihydro power plants or at least one large hydropower plant.

3. Continuation of the current situation: Eurus does not implement the project; its designatedcustomers continue purchasing the electricity from the National grid.

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

When considering the construction a power plant, public tenders are called by the CFE (Comisin

Federal de la Energa de Mxico) in which the developer must participate. Thus, any kind of projectcoming from renewable sources would have to compete against conventional energies within a certainprice context, making this an unfeasible venture. In order to encourage the private investor to developpower plants from renewable sources, the CRE (Comisin Reguladora de Energa) has created differentformulas in lieu of participating in public tenders.

These formulas are described in article 36 from "Ley del Servicio Pblico de Energa Elctrica" and canbe found at: http://www.sener.gob.mx/wb2/SenerNva/mjMal2

Self-consumption (autoabastecimiento): For self-consumption purposes, it is possible to create acompany co-owned by the power generator and the consumer following some specific rules. Theenergy not used by the consumer can be stored in a "virtual storage" managed by CFE, so real-time generation does not have to exactly match with real-time consumption. Total energygenerated not used by the consumer has to be sold to CFE at a fixed price.


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The other alternatives would also comply with the regulation in place, following the "Ley del SectorPblico de Energa Elctrica":

Power generation plants from renewable sources with equivalent electricity output within theMexican electrical system, like biomass or minihydro power plants, would be included in the

same formula as wind energy (Autoabastecimiento - Self-comsumption). It goes without saying that the non-realization of any project by Eurus, i.e. the continued

purchase of electricity from the grid by its designated customers, complies with all legalrequirements.

Step 2. Investment analysis

The Additionality of the project is justified by using the barrier analysis in the Step 3, so Step 2 should

not be applicable. In any case we provide investment information here in Step 2 (Investment analysis).Therefore information provided here in Step 2, should be only considered as complementary information.

This step will demonstrate that the proposed project activity is economically or financially less attractivethan the other alternatives in the event the project activity does not bring in the expected revenue fromthe sales of certified emission reductions.

Sub-step 2a. Determine appropriate analysis method

The project activity generates incomes other than CDM related income, so a straight forward costanalysis cannot be applied. Instead, the investment comparison analysis will be used.

Sub-step 2b. Option II Application of the investment comparison analysis

For the investment comparison analysis, the IRR is the main indicator for comparing all the scenariosunder this analysis. The equity IRR will be used, since it reflects the return on equity investors and

includes all amounts and costs of debt financing, which is a key issue for this project activity. Weconsider the equity IRR more suitable for the analysis than any other of the indicators the AdditionalityTool mentions.

Sub-step 2c. Calculation and comparison of financial indicators


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1. Due to their ability to significantly reduce power demand during hours of peak-load tariffCEMEXs cement plants achieve a noticeable reduction of average electricity costs per kWh vs.the average of all consumers.

2. As the national grid still serves as a virtual storage for electricity and backup, the plants will noteliminate all their payments to CFE; the costs for maximum power capacity (as opposed toenergy) are going to be partially affected only and with unforeseeable fluctuations. This means

that part of the average electricity cost per kWh (as per CFE tariff) cannot be offset by theelectricity from the wind power plant.

As a result of both effects the price of the cement plants is 7% lower than the standard CFE tariff,because of that the maximum price that the cement plants are willing to pay for the electricity (andtherefore the maximum achievable price) would be that price.

In order to be conservative the business model uses this 7% discount over the CFE tarif

The CFE tariff average for the potential cement plants is the following:

Cement plants Region TariffCFE tariff average 2005

(cUS$/kWh)

Planta CPN (Hermosillo, Son) Sonora H-SL 7.0391

Planta Yaqui (Hermosillo, Son) Sonora H-TL 6.7964

Planta Mrida (Mrida, Yuc) Yucatn H-SL 6.8882

Planta Hidalgo (Hidalgo, NL) Nuevo Len H-S 8.1045

Planta Monterrey

(Monterrey,NL)

Nuevo Len H-SL

7.2582Planta Torren (Torren,Coah) Coahuila H-SL 7.3409

Planta Valles (Valles,SLP) San Luis Potos H-SL 7.2082

Planta Huichapan(Huichapan,Hgo)

Hidalgo H-TL6.8545

Planta Tamuin (Tamuin, SLP) San Luis Potos H-SL 7.2082

Planta Barrientos (Barrientos,Edo Mex)

Estado de Mxico H-SL7.2655

Planta Atotonilco (Atotonilco,Hgo)

Hidalgo H-SL6.8545

Planta Zapotiltic (Zapotiltic, Jal) Jalisco H-SL 7.1636

Planta Tepeaca (Tepeaca, Pue) Puebla H-TL 5.4418Planta Guadalajara (Guadalajara,Jal)

Jalisco H-SL7.1636

Inmobiliaria Ro La Silla, S.A.de C.V. Nuevo Len HM 8.8791

Average tariff 6.8560

Table 8. CFE tariff for the cement plants 2005. Source: CFE annual tariff.http://aplicaciones cfe gob mx/aplicaciones/ccfe/tarifas/tarifas/tarifas asp?anio=2005


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Total investment (US$) 397,668,750

Project duration (years) 20

Income tax 28%

IRR (%) without CERs sales 11.76%

IRR (%) with CERs sales (12 $/tCO2) 15.10%Table 10. Financial characteristics.

The IRR of the project would make it unfeasible. Extra income from CERs sales of between 5 to 25US$/tCO2 will bring the project's IRR to a reasonable level, and would make the project feasible. At thecurrently assumed level of price of CERs, the increase on the IRR equity of the project is 3.34%, enoughto reach the Required Rate of Return (RRR) for financing the project.

Sub-step 2d. Sensitivity analysis

The main driver for performing a sensitivity analysis would be the price of the tCO2 in organizedmarkets.

The increment of the IRR for scenarios with different price of CO2:

Price of tCO2 (US$/tCO2)5 10 15 20 25

Projects IRR

increment

1.35% 2.74% 4.17% 5.74% 7.31%

Table 11. Increase on IRR with different scenarios.

Other drivers that could have impact on the project activity:

Changes in long-term energy mix strategy

Changes in financial situation in Mexico

These scenarios are very unlikely to occur, and they have no impact on the decision-making process.

Step 3. Barrier analysis

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


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Common Practice barriers

Currently, the use of wind power in Mexico is restricted to some small plants having a total capacity ofaround 2 MW (a 7-turbine 1.58 MW plant at La Venta and a single-turbine 0.6 MW plant at GuerreroNegro, see Programa de obras e inversiones del Sector Elctrico 2005-2014", published by CFE). Themain driver for other projects announced in the recent past is the CDM mechanism that provides

additional income and makes these projects viable.

Official projections forecast growth of wind energy up to almost 600 MW by 2012; however, since in allother countries wind plants still need some kind of support to be viable (such as preferential feed-intariffs in e.g. Germany and Spain, Production Tax Credits in the US, renewable energy obligations in theUK and some parts of the US) it appears highly improbable that this development of wind power inMexico would happen without some sort of direct or indirect support, be it in the form of CERs fromCDM projects or as government-financed demonstration and test sites.

New power installation is planned by CFE to be mainly from fossil fuel power plants. This underlinesthat wind farms cannot be considered business-as-usual in Mexico for the time being.

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

None of the barriers mentioned applies to the continuation of the current practice (electricity purchase

from CFE).

It should be mentioned that similar barriers apply to alternative 2 (renewable energy other than wind);these plants are also intensive in capital investment and offer a low profitability. In addition, theirpotential in Mexico is at the moment restricted by a lack of suitable sites (hydropower) and fuel (biomassplants). There are therefore no realistic alternatives to a wind farm of the proposed size.

Step 4. Common practice analysis

Sub-step 4a. Analyze other activities similar to the proposed project activity.

There are no other activities similar to the project activity in Mexico without CDM support.

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


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>>The baseline scenario represents the electricity that would have otherwise been generated by theoperation of the grid-connected power plants and by the addition of new generation sources.

For the calculation of the emission factor, which will yield the total equivalent CO2 emission reductionfor the whole crediting period, a Combined Margin (CM) will be used, in accordance with the approved

methodology ACM0002. This Combined Margin is divided in two parts, the Operating Margin (OM) andthe Build Margin (BM). Given the fact that in recent years mainly combined cycle base load plants havebeen built in Mexico that cannot feasibly be substituted by wind power, the BM is probably heavilyoverrepresented in this baseline. However, as the OM is significantly higher than the BM this means thatthe emission reductions achieved by the project are notably underestimated, i.e. they are calculated in avery conservative way. For wind and solar projects, the default weights are as follows: wOM = 0.75 and wBM =0.25 (owing to their intermittent and non-dispatchable nature).

For the calculation of these two terms (BM and OM), the information used can be found in theProspectiva del sector elctrico 2005-2014; 2004-2013; 2003-2012, prepared by the Secretara deenerga.. These documents can be accessed at http://www.energia.gob.mx/

Step 1. Calculate the Operating Margin emission factor (EFOM)

The Operating Margin refers to the actual generation mix according to source installed in Mexico. Thetotal fuel consumption for generation is divided into the different types of power plants, in order to

determine the weighted average of the actual CO2

emissions in Mexico.

For its calculations, the simple OM method has been selected from the four options proposed in theapproved methodology ACM0002. Dispatch data analysis would be more accurate and thereforepreferable, but this method cannot be applied for this project owing to lack of available published data.To be able to use the Dispatch data analysis method, the hourly generation-weighted average emissionsper electricity unit (tCO2 /MWh) of a set of plants in the top 10% of the grid system dispatch order isneeded. For confidentiality reasons, hourly-based dispatch order generation is not publicly available, sothis method cannot be used for calculating the Operating Margin emission factor.

The reason for selecting the simple OM method over the other two methods (simple adjusted OM orAverage OM) is that the low-cost/must run resources in Mexico are well below 50% of total gridgeneration in both the average of the five most recent years and in the long-term normal forhydroelectricity production:


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The average low-cost/must run generation resource in the last seven years is 21.92%, well below the 50%threshold defined by the baseline methodology. Coal is not included under the low-cost/must runcategory, because the Mexican coal-fired power plants cannot be considered must-run plants (forexample, the largest coal-fired plant, Carbn II en Nava, in 2004 produced with a capacity factor of 72%- this being clearly below what a must-run plant would achieve). Therefore the Simple OM method canbe used to calculate the baseline emissions.

In addition, data for calculating the emission factor using the simple OM method are very robust andreliable. In accordance with the approved methodology chosen, the simple OM method has been finallychosen to determine the relevant operating margin.

The Simple OM emission factor can be calculated using either of the two following data vintages for year(s) y:

A 3-year average, based on the most recent statistics available at the time of PDD submission(ex-ante), or The year in which project generation occurs, if EFOM is updated based on ex postmonitoring.

We have chosen the first option because the yearly statistics provided by Sener that are necessary tocalculate the OM ex postare published normally more than one year after the end of the reporting year,leading to large delays between emission reduction on the one hand and monitoring, verification andissuance of CERs on the other. Another reason to choose this option is that ex ante monitoring is simpler

for the project development and also for the emission reduction verification.

For determining the Operating Margin (OM) emission factor, it is necessary to determine the netelectricity imports. There are no imports from other systems inside Mexico. The Mexican electricityimports and exports with other electric systems in other countries (imports from USA and exports toBelize) are:

2003 2004 % of totalgeneration

Imports (GWh) 71 47 0.03%Exports (GWh) 953 1,006 0.47%

Net Exchange (GWh) 882 959

Table 13. Source: Sener. Prospectiva del sector elctrico 2005-2014. Cuadro 13 p. 50

Imports and exports of electricity are treated as defined in the methodology:For imports from an on-line electricity system located in another country the emission factor is 0


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j, refers to the power sources delivering electricity to the grid, not including low-operating cost and must-run power plants, and including imports to the grid,COEFi,j,y is the CO2 emission coefficient of fuel i in tCO2/TJGENj,y is the electricity in MWh delivered to the grid by the j source

This COEFi,j (in tC/TJ) can be found in the Revised 1996 IPCC Guidelines for Greenhouse Gas

Inventories: Workbook,. Data for Fij can be found in TJ/day in the three Prospectivas so total annualconsumption per fuel source can be calculated by multiplying by 365.Step 2. Calculate the Build Margin emission factor (EFBM,) as the generation-weighted average emissionfactor (tCO2/GWh) of a sample of power plants m, as follows:

=

m

ym

mimi

ymi

yBMGEN

COEFF

EF,

,,

,,

,

.

Where ymiF ,, , miCOEF, and ymGEN , are analogous to the variables described for the simple OM

method above for plants m.

This sample for power plants can be chosen from the two options proposed under the methodology. We

have chosen Option 1. Calculate the Build Margin emission factor yBMEF , ex-ante based on the most

recent information available on plants already built for sample group m at the time of PDD submission.

For this option, the sample has to be either:

Option A: The five power plants that have been built most recently.Option B: Or the power plants capacity additions in the electricity system that comprises 20% of thesystem generation (in MWh) and that have been built most recently.

Technology Capacity (MW) Annual generation (GWh)Hydro 900 100,1

CC 623 3.253,9

GT 429 115,7

IC 10,8 22,0Table 14. Annual generation data of last 6 power plants by technology. Source: CFE.

Total generation from these 6 plants is 3,492 GWh, which does not reach the 20% of total systemgeneration in 2004 (20% of 208,634GWh: 41,727GWh), then the Option B represents the higher annual


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measurement methodsand proceduresactually applied :

The procedures applied are provided in Annex 3.

Any comment:

B.6.3 Ex-ante calculation of emission reductions:>>Using the approved methodology ACM0002 Version 06, we take data of the specific energy consumptionby fuel type directly calculated by SENER in Prospectiva del sector elctrico 2005-2014; Prospectivadel sector elctrico 2004-2013 and Prospectiva del sector elctrico 2003-2012 . The emission coefficientfactor by fuel type is determined in tCO2/TJ instead of tCO2/mass or volume.

The Operating Margin emission factor calculation for 2002 is 712.4 tCO2/GWh (see details in

Annex 3) The Operating Margin emission factor calculation for 2003 is 700.7 tCO2/GWh (see details in

Annex 3) The Operating Margin emission factor calculation for 2004 is 649.1 tCO2/GWh (see details in

Annex 3)

The 3-year weighted average Operating Margin is 687.0 tCO2/GWh (see details in Annex 3)

The Build Margin is calculated based on yearly statistics provided by the Mexican Energy MinistrySENER (Prospectiva del Sector Elctrico 2005 2014, Prospectiva del Sector Elctrico 2004 2013,Prospectiva del Sector Elctrico 2003 2012, available athttp://www.energia.gob.mx/wb2/Sener/Sene_185_publicaciones). These statistics provide data on newlybuilt plants (name, capacity, type of plant, location) as well as production data (total capacity, type offuel used, capacity factor) for the most recent year.

Methodology:

Since the source used does not provide information on the exact date when new plants went online thefollowing approach was taken:

Definitions:


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b) Calculate the contribution of each technology to the total generation in year y. Add the fraction fromtechnology 1 following the order defined in a) until the cumulative fraction reaches 20% for the firsttime. The plants included in this group define the sample to be analyzed.

c) Calculate the average emission factor of the sample, weighted with the generation in year y. The resultof this approach applied to the situation in Mexico with most recent data (production in 2004) is shown

in Table 12 (See details in Annex 3).

Excluded from the analysis are all power plants for which no plant specific data are available in theofficial statistics; these plants either do not produce for the national grid or they are too small to beshown separately. The former do not contribute to the national grid factor, the exclusion of the latter isdefendable as a conservative approach because in this case all of them are fossil fired plants that have atleast the same emission factor as the larger plants that are included in the analysis of the build margin.

The following plants have been used to calculate the BM:

Name Capacity (MW) Technology

2004 Additions:

Chicoasn (Manuel Moreno Torres) 900 Hydro

Rio Bravo III PIE 495 CC

El Sauz* 128 CC

Tuxpan (Pdte. Adolfo Lpez Mateos) 163 GT

San Lorenzo Potencia 266 GTGuerrero Negro II 10.8 IC

2003 Additions:

Los Azufres 79.8 Geo

Los Azufres 26.8 Geo

Tuxpan III y IV (PIE) 983 CC

Altamira III y IV (PIE) 1036 CC

Mexicali (PIE) 489 CC

Transalta Campeche (PIE) 252.4 CCNaco Nogales (PIE) 258 CC

Transalta Chihuahua III (PIE) 259 CC

2002 Additions:

Hol Box 0.8 IC

Bajo 591 7 CC


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1 x 190 33.81

1 x 261 35.73

1 x 41.4 38.08

3 x 3.4 43.53

3 x 13.5 47.35

Diesel

2 x 18.7 47.61

1 x 290 51.851 x 581 52.03

1 x 388 52.46

Combined Cycle

1 x 776 52.58Table 15. Technical data of typical fossil power plants of the types installed in the last years. Best-in-class values are highlighted. Source: Sener.Prospectiva del sector elctrico 2005-2014 Cuadro 40 p.94

The emission factor average for the power plants capacity additions in the electricity system thatcomprises 20% of the system generation (in MWh) and that have been built most recently will be the BM

factor:

Total annual generation for the power plants: 208,634 GWh.Using a conservative approach, we take the most efficient example (lowest emission factor) of therespective technology for all new power plants installed, this being 52.58% for combined cycle plants,38.08% for gas turbines and 47.61% for internal combustion power plants. In those cases where thestatistics show a combination of gas turbine and combined cycle, a combined cycle is assumed. Fordetails on the calculation see Annex 3)

BM factor: 377.3 tCO2/GWh (See details in Annex 3)

Step 3. Calculate the baseline emission factor EF

The baseline emission factor is calculated as the weighted average of the Operating Margin emissionfactor and the Building Margin emission factor. For wind and solar projects, the default weights are asfollows: wOM = 0.75 and wBM = 0.25 (owing to their intermittent and non-dispatchable nature).

Thus, the ex-ante baseline emission factor will be: 0.75*687.0 + 0.25* 377.3 = 609.6 tCO 2/GWh

This baseline emission factor is the same emission factors for all the years in the crediting period.

Emission Reductions:


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Estimation of emission reductions:

Year Estimation ofproject activity

emissions (tonnesof CO2 e)

Estimation ofbaseline emissions(tonnes of CO2 e)

Estimation ofleakage (tonnes of

CO2 e)

Estimation ofoverall emission

reductions (tonnesof CO2 e)

2008 0 152,035 0 152,035

2009 0 603,183 0 603,1832010 0 603,183 0 603,183

2011 0 603,183 0 603,183

2012 0 603,183 0 603,183

2013 0 603,183 0 603,183

2014 0 603,183 0 603,183

2015 0 603,183 0 603,183

2016 0 603,183 0 603,183

2017 0 603,183 0 603,1832018 0 451,148 0 451,148

Total(tonnes ofCO2 e)

0 6,031,828 0 6,031,828

Table 16. Ex-ante estimation emission reductions.

The registration of the project will take place before its commissioning, so there will be no emissionreductions prior to its registration.

B.7 Application of the monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored:

(Copy this table for each data and parameter)

Data / Parameter: EGy

Data unit: MWhDescription: Electricity supplied to the grid by the project

Source of data to beused:

Wind farm and electricity bill

Value of data appliedfor the purpose of

989,475 MWh


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Data / Parameter: Employment

Data unit: Number.

Description: Number of employees at 31 of December every year.

Source of data to be

used:

Eurus S.A. de C.V. Accounting Department

Value of data appliedfor the purpose ofcalculating expectedemission reductions insection B.5

NA

Description ofmeasurement methods

and procedures to beapplied:

NA

QA/QC procedures tobe applied:

NA

Any comment: The data will be archived in electronic way. Archived data kept during thecrediting period and two years later.

Data / Parameter: Local Taxes.

Data unit: MEX$.Description: Total local tax paid associated with the project activity

Source of data to beused:

Eurus S.A. de C.V. Accounting Department

Value of data appliedfor the purpose ofcalculating expectedemission reductions in

section B.5

NA

Description ofmeasurement methodsand procedures to beapplied:

NA

QA/QC procedures to NA


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The methodology is appropriate for the project activity because:

There is suitable capacity for the addition of electricity coming from wind resources.

There is sufficient and clear information given to identify the geographic and system boundariesfor the relevant electricity grid in which the project activity is to be developed. Information on

the characteristics of the grid is available from the Comisin Federal de Energa (CFE).

For this purpose and in accordance with monitoring methodology, the information that needs to bemonitored shall include the electricity generation from the proposed project activity, measured from thecontrol house on site. Electricity losses related to transportation will not be considered since CFE is theowner of the transmission line, therefore they are responsible of those electricity losses. Total electricitygeneration energy will be monitored by Eurus S.A. de C.V., at the end of every month. An annual reportof total generation for each year will be produced by Eurus S.A. de C.V. Data will be obtained from the

power meters located at the EURUS substation. These meters comply with the Mexican Law. CFEdefines the local standards and parameters to be followed in the electricity generation sector.

For the emission reductions calculation, it will be used the following formula:

Annual emission reduction = (project activitys annual electricity dispatched to the grid) * (CO2 emissionfactor (Ex-ante) of the estimated baseline)

Monitoring the generation output from the project activity (MWh)

In order to monitor the generation output of the wind farm, the measurement systems from the controlpanel of the wind farm will be used. To check the generation output, the electricity measured will becompared with the electricity bill.

Further details are discussed in Annex 4.

This figure describes the operational and management structure that will monitor emissions reductionsgenerated by the project activity.


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B.8 Date of completion of the application of the baseline study and monitoring methodologyand the name of the responsible person(s)/entity(ies)

>>Date of completion: October 2006

Name of entity determining the baseline: CO2 Global Solutions International S.A. See contact

information in Annex 1.

SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

Managing Director

CDM Team (CO2Solutions)

O&M

Regional Service Heads

Review, ElaborateMonitoring Report

Check, authorize & forwardmonitoring data

Monitor Record,Report and archive


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

C.2.1. Renewable crediting period

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

N/A

C.2.1.2. Length of the first crediting period:

>>N/A

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:

>>01/01/2009

C.2.2.2. Length:

>>10 years

SECTION D. Environmental impacts

>>

D.1. Documentation on the analysis of the environmental impacts, including transboundaryimpacts:

>>Eurus S.A. de C.V. carried out an environmental impact assessment (EIA) including physical, biological,

socioeconomic and cultural components. The reference number is 20OA2006E0001. You can consult inSEMARNATs web site: www.semarnat.gob.mx..

Summary of the Environmental Impact Assessment


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The project site has been chosen accurately to install the wind turbines in those places where the negativeimpacts were the minimum possible. The existing ways and roads will be used to install the whole powerplant.

This area is not considered as Important Bird Conservation Area (rea de Importancia para laConservacin de las Aves, AICAS). In this area, migratory routes and biological paths do not exist. Theproject location is not registered as a protected natural area, ecological park or forestry protected zone. Aprogramme will be implemented to monitor the affected birds and bats.

The programme of preventive and corrective measurement that will be implemented was developed toreduce the level of negative impacts to acceptable levels in general, and moderated with regard to thedisturbances in fauna and vegetation. A programme will be implemented to reforest with local speciesthe affected areas.

The simultaneous assessment of the magnitude and importance of both the positive and negative impactsof the project leads to the conclusion that the benefits (energy improvements and benefit from operationof the wind farm) surpass the possible negative environmental disturbances.

D.2. If environmental impacts are considered significant by the project participants or the hostParty, please provide conclusions and all references to support documentation of an environmentalimpact assessment undertaken in accordance with the procedures as required by the host Party:

>>Following the legal review, the 250.5 MW Eurus wind farm Project was approved by the MexicanMinistry of Environment (Semarnat), resolution number S.G.P.A./DGIRA/DDT/2377/06 datedNovember 29, 2006 under several conditions.

In accordance with the terms and conditions of the resolution, an Environmental Program (EP) has beensubmitted to SEMARNAT on October 2, 2006. The Environmental Program includes a study on birds,bats and a bird nesting reforestation strategy in the area. A birds and bats survey will focus on gatheringinformation on resident and migratory birds and bats at the project site during both the site preparationand construction phases also a vertebrate survey will be carried out.

The possible impact during the project operation will be assessed by counting the birds and bats fatalitiesdue to collisions with the wind turbines.

Periodically reports must be submitted to SEMARNAT which ensures that the projects is being handled


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be carried out. This study will be able to estimate the potential risk of the birds and bats dead dueto collisions with the wind turbines. The objective of this study is to guarantee that the project donot affect the fauna and nature in the area, and ensures the sustainable development. The study isto include the following terms:

a. Migratory and residents diversity studies of birds, reported yearly.b. Distribution and estimated population per specie.c. Flight behaviour (altitude, direction, arrival etc).d. Identify the possible feeding and nesting areas.e. Analysis of the information considering the project location and the regional context.f. Estimate the dead potential risk of the birds and bats due to collisions with the wind

turbines.g. Measurements to minimize the impacts on the bird population. These measurements will

include the wind farm emergency shut down.h. Estimate direct and indirect costs due to the development of the Study and the

application of the measurements taken account.

2. An evaluation of the noise level will be carried out in accordance to the NOM-081-SEMARNAT-1994 to guarantee that the project activity do not affect the local population. Inaddition a scattering noise model will be carried out to ensure the no affectation in the area SierraTolistoque (Conservation Area).

Wild fauna Measurements Protection and Conservation.

Wild fauna Measurements Protection and Conservation will include the following terms:

1. A vertebrate inventory will be carried out to verify the vertebrate existing diversity. Eurus S.A.de C.V. will take the measurements to protect the fauna species included in the NOM-059-SEMARNAT-2001 and the appendixes of CITES (Animals in danger of extinction inventory in

Latin America) during the construction phase.2. Rescue and conservation measurements will be applied for the fauna species under the following

conditions:a. Rescue and conservation methodologies.b. Calendar of the activities.

P f f th lt


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5. Estimate direct and indirect costs due to the development of the Compensation MeasurementsProgram.

Eurus S.A. de C.V. will elaborate a report every semester during the project activity. These reports willbe delivered to the SEMARNAT every semester to carry out the demanded requirements and will beincorporated as attachments to the Monitoring Plan (Please see Annex 4).

SECTION E. Stakeholders comments

>>

E.1. Brief description how comments by local stakeholders have been invited and compiled:

>>Eurus S.A. de C.V. has been present in the area for almost two years. Eurus has had an office in the neararea of the project where local issues have been developed.

There has been since the beginning local representatives having direct contact with ejidatarios ( landowners ), land owners representative (Comisario Ejidal), local authorities such as Secretary of themunicipality, Major of the Municipality , as well as other authorities from nearby towns in the region.

This has been a mayor role in the projects because the amount of land covered is extensive and manydifferent landowners participate leasing their land to the project because of that the project has obtainedglobal consent; otherwise the project would be unfeasible.

Eurus Representative in La Venta, holds regular meetings with all stakeholders involved in the project.Additionally at a national level Eurus has been in contact with the stakeholders involved, specificallywith SEMARNAT, DNA ( Designated National Authority ) , CRE ( Comisin Reguladora de Energia ),CFE ( Comision Federal de Electricidad), where all permits involved in the project has been obtainedand the opinion received has been positive, since the project will help the sustainable development ofMexico.

E.2. Summary of the comments received:>>

Eurus S.A. de C.V. developed an extensive consultation process. This consultation process included thefollowing authorities and local landowner (Ejidatario):


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project where they found that there are no environmental risks related. And this is a modelproject in terms of renewable energy in Mexico which should be a priority.

The Comisin Federal de Electricidadconfirmed that the generation data to calculate the BuildMargin are correct. The documents received from the CFE to the project were confirmed by theDOE. Also they expressed that The development of wind farms as CDM projects is veryattractive and that promote the sustainable development in Mexico.

Permanent regular local meetings with local authorities and ejidatarios in the area are takingplace, their support and interest in the project has been permanent. Additionally the DOE, theconsultant of the project and the promoter visited the area and hold meetings with thestakeholders involved, and a positive global opinion from Ejido was expressed. New jobs will berelated in the area; particularly during the construction phase of the wind farm, and afterwardsthe jobs required for maintenance and operation during the expected lifetime of the wind farm.Employees will be haired through employment bureau specially created for this purpose. Theproject will improve the municipal economy because of additional sources of income forlandowners such as leasing, etc. without sacrificing current land use practices.

The Comisin Reguladora de Energa has granted the permit to generate as stated previously, thepermit to evacuate the electricity through the existing grid, all this issues and permits has beenobtained because of the support on the project and otherwise permits will not be granted. Theopinions received form the CRE has always been positive.

The Secretara de Energa has also given always positive feedback over the project.

Stakeholders accepted the measures taken by Eurus and had no objection to the development of new andrenewable energy which is environmentally friendly and sustainable. Eurus will ensure that the windfarm will be placed in such a way that impacts for the local population will be minimised.

E.3. Report on how due account was taken of any comments received:

>>According with the conditions of the Environmental Authorization, Eurus S.A. de C.V. will implementthe following terms and actions (Please see Section D and Annex 4):


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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

PRIMARY PROJECT SPONSOR

Organization: Eurus S.A. de C.V.Street/P.O.Box: Av. Ricardo Margain Zozaya 325 Col.Valle del CampestreBuilding:

City: Garza Garca

State/Region: Nuevo LenPostfix/ZIP: 66265Country: Mxico

Telephone: 00 52 81 8888 8888FAX: 00 52 81 8888 4434E-Mail: [email protected]:

Represented by: Luis Ramn Faras MartnezTitle: Energy Senior Vice-PresidentSalutation: Dr.

Last Name: FarasMiddle Name:

First Name: LuisDepartment: Renewable Energy PromotionMobile:

Direct FAX: 00 52 81 8888 4434Direct tel: 00 52 81 8888 4342Personal E-Mail: [email protected]


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CONSULTANT

Organization: CO2 Global Solutions International S.A. (Consultant)

Street/P.O.Box: C/ Don Ramn de la CruzBuilding: 36, 1C

City: Madrid

State/Region: Madrid

Postfix/ZIP: 28001

Country: Spain

Telephone: (+34) 91 7814148

FAX: (+34) 91 7814149

E-Mail: [email protected]: www.co2-solutions.com

Represented by: Alfonso Lanseros Valds

Title: Partner Consultant

Salutation: Mr

Last Name: Lanseros

Middle Name:

First Name: Alfonso

Department: CDM DevelopmentMobile: 00 34 652 79 59 10

Direct FAX: 00 34 91 781 41 49

Direct tel: 00 34 91 426 17 83

Personal E-Mail: [email protected]

PROJECT DESIGN DOCUMENT FORM (CDM PDD) V i 03 1


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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

N/A

PROJECT DESIGN DOCUMENT FORM (CDM PDD) V i 03 1


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Annex 3

BASELINE INFORMATION

Total Fuel consumption:

2002: 1.582.275 TJ2003: 1.608.190 TJ2004: 1.537.745 TJ

(1) (2) (3) (2)*(3)*(44/12)

2002

Fuel shareFuel consumption

(TJ)Carbon content

(tC/TJ)Emission CO2

(tCO2)

Fuel Oil 49,40% 781.644 21,1 60.473.179Natural Gas 34,10% 539.556 15,3 30.269.079

Diesel 1,00% 15.823 20,2 1.171.938

Coal 15,50% 245.253 25,8 23.200.898

Total 100% 1.582.275 115.115.095

Table 17. Fuel consumption per fuel type. Source: Prospectiva del sector elctrico 2003-2012 Grfica 22 p.67.

(1) (2) (3) (2)*(3)*(44/12)

2003

Fuel shareFuel consumption

(TJ)Carbon content

(tC/TJ)Emission CO2

(tCO2)

Fuel Oil 42,20% 678.656 21,1 52.505.366Natural Gas 37,00% 595.030 15,3 33.381.200

Diesel 1,60% 25.731 20,2 1.905.812

Coal 19,20% 308.772 25,8 29.209.877

Total 100% 1.608.190 117.002.255

Table 18. Fuel consumption per fuel type. Source: Prospectiva del sector elctrico 2004-2013 Grfica 22 p.72.

(1) (2) (3) (2)*(3)*(44/12)

2004

Fuel share

Fuel consumption

(TJ)

Carbon content

(tC/TJ)

Emission CO2

(tCO2)Fuel Oil 41,10% 632.013 21,1 48.896.754

Natural Gas 42,60% 655.079 15,3 36.749.953

Diesel 1,00% 15.377 20,2 1.138.956

Coal 15,30% 235.275 25,8 22.257.014

Total 100% 1.537.745 109.042.677

Table 19. Fuel consumption per fuel type. Source: Prospectiva del sector elctrico 2005-2014 Grfico 30 p.82.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) Version 03 1


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Total % under methodology

2002 2003 2004

19,90% 18,00% 19,50%

Total generation in baseline (GWh)

2002 2003 2004

161.048 166.915 167.950

Imports (GWh)

2002 2003 2004

531 71 47

Table 21. Imports. Source: Sener. Prospectiva del sector elctrico 2005-2014 Cuadro 13 p.81

Baseline calculations:

Operating Margin:

Operating Margin = total CO2 emission / (total generation under baseline + imports)

Operating Margin 2002 = 115.115.095 / (161.048 + 531) = 712,4 tCO2/GWhOperating Margin 2003 = 117.002.255/ (166.915 + 71) = 700,7 tCO2/GWhOperating Margin 2003 = 109.042.677 / (167.950 + 47) = 649,1tCO2/GWh

OM = (712,4*(161.048 + 531) + 700,7*(166.915 + 71) + 649,3*(167.950 + 47)) / ((161.048 + 531) +

(166.915 + 71) + (167.950 + 47)) = 687,0 tCO2/GWh

Build Margin:

Calculation of Build Margin:

Build Margin = (Fuel consumption (TJ) * Fuel emission factor (tCO2/TJ)) / (Total annual generation ofthe last newest plants that comprise 20% of total generation (GWhe))

Fuel consumption = 3,6 TJ/GWhtherm * (Annual Generation (GWhe) / Efficiency (GWhe/GWhtherm))

Fuel emission factor (tCO2/TJ) = Carbon content (tC/TJ) * (44/12)

A l F lFuel

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03 1


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Table 22.. New power plants installed. Source: Sener and CFE (Comisin Federal de Electricidad). Prospectiva del sector elctrico 2005-2014Cuadro 14 p.51; Prospectiva del sector elctrico 2004-2013 Cuadro 9 p.44 and Prospectiva del sector elctrico 2003-2012 Cuadro 8 p.41 andEl Sector Energtico en Mxico (Edicin 2005) p. 82-85. Abbreviations: Hydro: hydropower plant; Geo: geothermal plant, CC: combinedcycle plant, fuelled with natural gas, GT: Gas turbine, fuelled with natural gas. IC: Internal combustion.

The calculation of the BM considering 20% of the electricity production is a conservative measure sinceit yields less CERs than to cut at 20,44%. As official data are provided by technology, it is no possible to

determine which plant contributes to 20%.

Total annual generation of the last newest plants that comprise 20% of total generation: 41.726,8 GWh.Combined Cycle has been chosen in 2002 Additions to be conservative because the emission factor islower than internal combustion or Gas turbine.

BM = (22.279 * 56,1+1.094 * 56,1+166 * 74,07 +143.232 * 56,1 + 113.783 * 56,1) / 41.726,8 = 377,3tCO2/GWh

BM factor 377,3 tCO2/GWh

Emission factor ex-ante = 0,75*OM+ 0,25*BM = 609.6 tCO2/GWh

The results:

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Emission rate(tCO2/GWh)

609.6 609.6 609.6 609.6 609.6 609.6 609.6 609.6 609.6 609.6 609.6

Annual generation(GWh) 249.4 989.5 989.5 989.5 989.5 989.5 989.5 989.5 989.5 989.5 740.1

EmissionReductions (tCO2) 152,035 603,183 603,183 603,183 603,183 603,183 603,183 603,183 603,183 603,183 451,148

Table 23. Emission reductions during the crediting period.

Total emission reductions for the crediting period: 6,031,828 tCO2.



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Annex 4

MONITORING INFORMATION

A.Measuring and calculation procedure.

1. Measuring.

The O&M Team will obtain the readings from the meters installed at the EURUS substation monthly,and it will report them in the spreadsheet for measurement control and will store the data dischargedfrom the meters electronically.

Personnel of the O&M Team will be trained continuously. If new personnel are hired, they have to

follow up a training program and will be formed in the specific skills required to carry out theMonitoring Plan.

2. Calculation of electricity generation to be monitored:

GEGy =

EGy: Electricity generation data measured at output EURUS substation (Please see Figure 1 and Figure

2)G: Generation of electricity by the project activity.

2.1.Measurement and control.

Eurus Wind Farm measurement controlYear:

A B C D

Month Electricity

generation datameasured at

output EURUSsubstation

(GWh)

Electricity

generationaccording withthe energy bill

(GWh)

Eurus validated

electricitygeneration

(GWh)

If B=C



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(*) If B C an internal audit will be carried out to verify the data in accordance to the Corrective andPreventive Actions.

The data validated will be registered in this form:

Eurus Wind Farm GenerationYear:

Month Monthly Generation (GWh)January

February

March

April

MayJune

July

August

September

October

November

December

Annual total

2.2.Calculation of emission reductions.

Eurus Wind Farm emission reductions

Year:

A B CAnnual

validatedgeneration

(GWh)

Emission factorex-ante

(tCO2/GWh)

Emissionreductions

(tCO2)

A B A*B



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Figure 1



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Figure 2

B. Quality control (QC) procedures and quality assurance procedures (QA).

1. Monitoring equipment1.1. Monitoring equipment shall be set up under the Mexican Law.



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3. Corrective and preventive actions:3.1. If the two variables compared in article 2.3. are different, the operation condition of electricity

meters and other equipments shall be examined. In case measurements are improperly operatedby the monitoring equipment, internal investigation and correction procedure shall be followed.

3.2. Corrective and preventive actions will be properly documented.

4. Internal audit procedure:

4.1. The Manager of the Regional Service Heads is responsible of elaborate and executes theinternal audit.

4.2. Internal audit has the purpose of determining if the Monitoring Plan is being properlydocumented as well as identify any deficiency, disagreement o deviation, providing theapplication of corrective and preventive actions.

4.3. Internal audit will be implemented at least once per year.

C. Monitoring the sustainable development.

Eurus Wind Farm

Year:

Dimension Criteria Indicators

Environmental 1. CO2 emissions reduction byusing renewable energy sources.

2. Natural resourcesconservation

1. GHG Emission reductions(ton CO2)

2. The environmental indicatorswill be provided in accordanceto the SEMARNATEnvironmental Program (Plan deVigilancia Ambiental). The datagather to accomplish theEnvironmental Program by

SEMARNAT mandatory will beincorporated within theMonitoring Plan. The visit andaudits, and reports received fromSEMARNAT will be also



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Informative example of the periodical reports that will be submitted to SEMARNAT as a requirement of the EIA:

This reports may be modify during the project life in order to fulfil all the legal requirements that SEMARNAT could introduce during the project

life.

These periodical reports to SEMARNAT, as well as the possible visits and audits form SEMARNART will be attached to the Monitoring Plan.

Title Length Environmental Impact Activities Results

Study on birds and bats One year previous the

project activity and one year

after the construction phase.

Potential risk of the birds

and bats dead due to

collisions with the wind

turbines

Birds and bats monitoring in

order to determine risks and

alternatives.

Diversity and legal status.

Distribution.

Flight behaviour.

Location of nesting and

feeding areas.

Noise Study. Before and during the

project activity.

Possible affectation due to

the increase of the noise

level in the operation phase

Noise level monitoring under

the NOM-081-SEMARNAT-

1992 criteria

Scattering noise model.

Comparative between noise

generated during the

operation phase and the

maximum allowed in the

NOM-081-SEMARNAT-

1992.

Soil Conservation. Preparation and construction

phases.

Operation and Maintenance

phases.

Possible soil affectation in

the wind turbine site.

The construction activities

will be carried out in the

previously selected areas.

Soil conservation consists in

the vegetal conservation

during the operation phase.

Archive the adopted

measurements verification.

Particles Control Preparation and construction

phases.

Particles generation during

the preparation and

construction phases.

The soil next to the location

of the wind turbines will be

water spread.

Archive the adopted




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CDM Executive Board page 42

The raw materials in trucks

will be covered.

Waste Control Preparation and construction

phases.

Operation and Maintenance

phases.

Waste generation during

construction and operation

phases.

Preventive measurements

adopted to reduce the waste

generation. Measurements of

waste generation, manure

and disposal.

Archive the adopted


Analysis of the waste

generated data.

Monitoring waste

generation, manure and

disposal.

Wild fauna Measurements

Protection and Conservation

One year previous to the

project activity

Possible affectation to the

wild fauna during the

preparation and construction

phases.

Monitoring amphibian,

reptile and mammals in

project site.

Species inventory in the

project site.

Density, abundance,

requirements and behaviourpatterns.

Compensation Measurement

Program

During the project activity. In order to benefit the

vegetal conservation in the

project site and nearly areas,

compensation measurements

will be implemented.

Vegetal conservation

program.

Reforestation in protected

areas.

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proyecto wind la ventosa mexico

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