Project Idea Note or PIN - DOC 1

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					Project Idea Note                                                               Name of Project
                                                                                Date of Submission

                                     Project Idea Note or PIN

Description of size and quality expected of a PIN

Basically a PIN will consist of approximately 5 pages providing indicative information on:
          the type and size of the project
          its location
          the anticipated total amount of Greenhouse Gas (GHG) reduction compared to the
             “business-as-usual” scenario (which will be elaborated in the baseline later on at
             Project Design Document [PDD] level)
          the suggested crediting life time
          the suggested Certified Emission Reductions (CER)/ Emission Reduction Units
             (ERU) or verified Emission Reduction (vER)price in US$ or € /ton CO 2e reduced
          the financial structuring (indicating which parties are expected to provide the
             project’s financing)
          the project’s other socio-economic or environmental effects/benefits

While every effort should be made to provide as complete and extensive information as
possible, it is recognised that full information on every item listed in the template will not
                                             1
be available at all times for every project.




1
    See Annex I for Land Use and Land Use Change (LULUCF) project categories.
Project Idea Note                                                          Name of Project
                                                                           Date of Submission

Template for PINs


                                   PROJECT IDEA NOTE

A. Project description, type, location and schedule

Name of Project:_ Zhejiang Wenling Donghaitu Wind Power Project
                                                                 th
Technical summary of the project        Date submitted:____28 , Dec 2005_________

Objective of the project           The objective of the project is to use renewable energy (wind
                                   source) to generate electricity and this will result in a reduced
                                   reliance on fossil fuels and a reduction of GHG emissions and local
                                   air pollution.
Project description and            The Donghaitu areas lie in the east of Zhejiang Province. It
proposed activities                belongs to the bulgiest continent area. There the sea wall is 12
                                                                                              2
                                   kilometres and the wind density is more than 200W/m , and its
                                   average annual wind speed is 7.3 m/s at the height of 30m. The
                                   average accumulative time of available wind source every year is
                                   over 5000 hours with the longest time 2190 hours. The project site
                                   is one of the windiest areas identified by the wind layout of nation
                                   weather bureau.
                                   The proposed project will have a total capacity of 80MW, and the
                                   first project will have a capacity of 49.5MW. The first project will
                                   involve the installation of 35 turbines, each of which has a capacity
                                   of 1500KW, and the project is designed to produce 150000MWh of
                                   electricity per year, replacing fossil fuel consumption and thus
                                   reducing CO2 emissions.
Technology to be employed          This project will employ effective wind power technology of Europe,
                                   such as Bonus Energy, NEG Micon, Vestas in Danmark and
                                   Gamesa in Spain. For example, turbine of Gamesa was employed
                                   in Jilin Taonan wind power project and Jilin Taobei wind power
                                   project, turbine of NEG Micon was employed in Huitengxile
                                   windfarm project in Inner Mongolia, China.

Project developer
Name of the project developer      Zhejiang Wind Power Development Co.,Ltd
Organizational category
                                   Private company

Other function(s) of the project   a. Sponsor
developer in the project           b. Operational Entity under the CDM
                                   c. Technical advisor
Summary of the relevant            Zhejiang Wind Power Development Co.,Ltd is the subsidiary
experience of the project          company of Longyuan Power Group Company. It was founded in
developer                          Dec, 1994, in Hangzhou. It dominates two wind power farms, one
                                   is Linhai Kuocangshan wind power farm, the other is Cangnan
                                   Hedingshan wind power farm. It has 54 turbines with total capacity
                                   of 32.4MW.
Address                            16thFloor,A Yaojiang Edifice, 100 Moganshan Rd., Hangzhou,
                                   Zhejiang, China
Contact person                     Rangda Feng
Project Idea Note                                                           Name of Project
                                                                            Date of Submission

Telephone / fax                      +86-571-88380830
E-mail and web address, if any       office@zwpc.zpepc.com.cn
Project sponsors
(List and provide the following information for all project sponsors)
Name of the project sponsor          Zhejiang Wind Power Development Co.,Ltd
Organizational category
                                     d. Private company


Address (include web address, if    16thFloor,A Yaojiang Edifice, 100 Moganshan Rd., Hangzhou,
any)                                Zhejiang, China
Main activities                     Zhejiang Wind Power Development Co.,Ltd is the subsidiary
                                    company of Longyuan Power Group Company. It was founded in
                                    Dec, 1994, in Hangzhou. It dominates two wind power farms, one
                                    is Linhai Kuocangshan wind power farm, the other is Cangnan
                                    Hedingshan wind power farm. It has 54 turbines with total capacity
                                    of 32.4MW.
Summary of the financials
Type of the project
Greenhouse gases targeted            CO2
                                    (mention what is applicable)
Type of activities                  CO2 Sequestration
Field of activities
a. Energy supply                    Renewable energy,
Location of the project
Region                               East Asia & Pacific
                                     (mention what is applicable)
Country                              People’s Republic of China
City                                 Wenling City, Zhejiang Province
                                                            2
Brief description of the location of The site of 36.42 km is to be sited in Wenling city, Zhejiang
the project                          Province in East China.
Expected schedule
Earliest project start date          2007
Estimate of time required before Time required for financial commitments: 6 months
becoming operational after           Time required for legal matters: 6 months
approval of the PIN                  Time required for negotiations: 7 months
                                     Time required for construction: 12 months
Expected first year of verified
Emission Reduction or CER /          2007
ERU delivery
Project lifetime                     25
Current status or phase of the       pre-feasibility study finished
project
Current status of the acceptance Letter of No Objection is available
of the Host Country
The position of the Host             The Host Country
Country with regard to the           signed or acceded to the Kyoto Protocol
Kyoto Protocol

B. Expected environmental and social benefits

Estimate of Greenhouse Gases Annual: 120000 tCO2-equivalent
abated / CO2 Sequestered (in Up to and including 2012: 720000 tCO2-equivalent
Project Idea Note                                                            Name of Project
                                                                             Date of Submission

metric tons of CO2-equivalent)        Up to a period of 10 years: 1200000 tCO2-equivalent

Baseline scenario                     CDM/JI projects must result in GHG emissions being lower than
                                      “business-as-usual” in the Host Country. At the PIN stage
                                      questions to be answered are at least:
                                           Which emissions is the proposed Clean Development
                                              Mechanism (CDM)/Joint Implementation (JI) project
                                              displacing?
                                           The project utilizes wind to generate electricity that is
                                              generated by fuel-fired power plant. It will mitigate the
                                              impact of GHG release from fuel-fired power plant.
                                           What would the future look like without the proposed CDM
                                              project?
                                           Without cash stream from ERs, it is hard to utilize the
                                              costly advanced wind power technology. And the fuel-fired
                                              power would be considered as the economical selection,
                                              and it will increase CO2 release.
                                           What would the estimated total greenhouse gas (GHG)
                                              reduction be?
                                           The estimated emission reduction is as written above. This
                                              was calculated using the emission factor EF of North
                                              China Power grid to estimate EF of this project is 0.8
                                              (tCO2 / MWh).


Specific global & local               (In total about ¼ page)
environmental benefits
Which guidelines will be applied?  Name and, if possible, the website location
Local benefits                     This proposed project will reduce GHG emissions and mitigate the
                                   impact of GHG(CO2)
Global benefits                    There will be a direct reduction of carbon emissions to the
                                   atmosphere through the wind power project.
Socio-economic aspects             This proposed project will play a complementary role in supplying
What social and economic effects the electricity to Shandong power grid. And the proposed project
can be attributed to the project   will become a local attraction so as to promote the development of
and which would not have           local eco-tourism industry. Moreover the proposed project will
occurred in a comparable           support the improvement of energy security, air quality, local
situation without that project?    livelihoods, and promote the sustainable development of the
Indicate the communities and the renewable energy industry in local area.
number of people that will benefit
from this project.

Which guidelines will be applied?     Name and, if possible, the website location


What are the possible direct
effects (e.g., employment
creation, capital required, foreign
exchange effects)?
What are the possible other           training/education associated with the introduction of new
effects? For example:                 processes, technologies and products and/or
                                     the effects of a project on other industries
Environmental strategy/               To be informed later
Project Idea Note                                                    Name of Project
                                                                     Date of Submission

priorities of the Host Country
C. Finance

Total project cost estimate
Development costs                    3 US$ million
Installed costs                      45 US$ million
Other costs                          2 US$million
Total project costs                  50 US$million
Sources of finance to be
sought or already identified
Equity                               Zhejiang Wind Power Development Co.,Ltd
Debt – Long-term                     20 US$million
Debt - Short term                    20 US$million
Not identified                       10 US$million
Carbon finance contribution          0
sought
Carbon finance contribution in       0
advance payments. (The
quantum of upfront payment will
depend on the assessed risk of
the project by the World Bank.)
Sources of carbon finance            NO
Indicative CER/ERU or vER            10.0 USD/tCO2-e
Price (subject to negotiation )
Total Emission Reduction
Purchase Agreement (ERPA)
Value
A period until 2012 (end of the      7,200,000US$
first budget period)
A period of 10 years                 12,000,000US$
A period of 7 years                  8,400,000US$
A period of 14 years (2 * 7 years)   16,800,000US$
If financial analysis is available
for the proposed CDM activity,
provide the forecast financial
internal rate of return for the
project with and without the CER
revenues. Provide the financial
rate of return at the expected
CER price above and US$3/
tCO2e. DO NOT assume any up-
front payment from the PCF in
the financial analysis that
includes PCF revenue stream.
 Please provide a spreadsheet to
support these calculations.
Project Idea Note                                                                   Name of Project
                                                                                    Date of Submission


Illustrative project categories and examples include:
                                                 2
    Code    Afforestation and reforestation
    1       Rehabilitation of degraded tropical lands (e.g. Imperata grasslands) to
      1a              forest
      1b              Agroforestry
    2       Reforestation of degraded temperate grasslands or arid lands by tree planting
    3       Establishing tree/shade crops over existing crops (e.g. coffee)
    4       Plantations for wood products
      4a              Small scale landholder driven
      4b              Commercial scale
    5       Landscape rehabilitation through planting corridors etc
    6       Fuel wood plantings at a commercial scale
            Forest Management
    7       Improved forest management via fertilizer, in-plantings etc
    8       Improved fire management
    9       Reduced impact logging
    10      Alternatives to fuel wood for forest/environmental protection
            Cropland management
    11      Reduced till agriculture
    12      Other sustainable agriculture
            Grazing land management
    13      Revegetation of semi-arid and arid lands with shrubs or grasses
    14      Improved livestock management leading to vegetation and soil recovery
    15      Bio-fuels: Use of biological residue to produce energy
    16      Other




2
    This is the only class of activities accepted under the CDM for the first commitment period

				
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