Info Report Check
Submission incomplete:
1: The DOE is requested to include information on how it has validated the input values to the financial calculations as per VVM v 1.2 paragraph 114 (a).
The DOE is requested to further substantiate:
(a) how the input values to the investment analysis were available at the time of the investment decision on 10 April 2007, in in accordance with the EB62 Annex 5 paragraph 6;
(b) the suitability of the following input values in accordance with the VVM version 01.2 paragraph 111a,b,c: (i) the investment cost, in particular how the DOE has validated each component of the investment cost and its value; (ii) the energy savings, as the DOE only checked the source; (iii) the tariff, as the PDD page 22 states that the tariff rates are based on the Tariff Order of CESC Limited for 2010-2011, and the value based on the spreadsheet is 4.68 INR/kWh, whereas the Validation Report page 23 states the tariff being 4.88 Rps/KWh, according to the grid’s tariff order “UPCL Tariff 2009-10”; (iv) the O&M cost, as the DOE only checked the source.


2: The DOE is requested to include information on how it has validated sensitivity analysis of the investment analysis as per VVM v1.2 paragraph 111 (e).
The DOE is requested why the savings in the electricity is not considered as one of the variables in the sensitivity analysis in accordance with the EB62 Annex 5, given that the Validation Report page 23 states that the project IRR is sensitive to the saving in electricity and tariff.

3: The DOE is requested to provide information on how it has validated the suitability of the benchmark as per VVM v 1.2 paragraph 114 (b).
The DOE confirms that 10% benchmark applied to the project complies with paragraph 14 of EB62 Annex 5. However, the validation report has not demonstrated that internal benchmark has been used for similar projects with similar risks.

4: The DOE is requested to describe the steps undertaken to assess if the monitoring arrangements are feasible to be implemented within the project design as per VVM v1.2 paragraph 124(b).
(a) The VR page 33 states that for parameter Echiller plant.,y, the incoming high voltage electricity will be monitored by meters with accuracy class of 0.5 and the rest will be monitored by meters with accuracy class of 1.0, and that for parameter EAHU,y, accuracy class 1.0 will be applicable for the meters in main distribution board. However, the information of the accuracy of the meters is not available in the monitoring plan in the PDD;
(b) The PP responded to the Clarification Request 11 stating that the value of average daily operating hours shall be compared with the manual records on operating hours for and the conservative value shall be selected to estimate the Emission reductions achieved during that period. However, such provision is not available in the monitoring plan in the PDD.