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).
In particular to clarify:
a) total investment: it is based on 12 sets of internal combustion engines while after 2 years of operation at the time of the validation, only 10 of them have been installed;
b) when the remaining 1 MW is scheduled to be installed and how the phased implementations reflected in the cashflow;
c) electricity tariff: purchase price of 0.4186 RMB/kWh including VAT applied to both the savings made from displacing the power purchased from the grid and the power export to the grid while the actual power export tariff is 20.517 RMB/kWh according to the validation report page 24; and
d) O&M costs: breakdown of item c) material, fuel and power costs shall be provided, particularly to clarify it includes cost of CMM.

2: 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).
In particular, the DOE shall provide information how it has confirmed the suitability of the use of coal mine industry benchmark of 13% instead of the power sector benchmark. In doing so, please provide detailed information on the historical power demand at the coal mine. In addition, please clearly indicate if the benchmark is pre or post tax, and if it is for project or equity IRR.

3: The DOE is requested to provide local and sectoral expertise on the suitability of the input values to the investment analysis as per VVM v 1.2 paragraph 113 (c).
The DOE shall provide information to demonstrate that the projects used for the comparison of O&M costs are comparable to the project activity in terms of the similarity in the technology employed.