Info Report Check
Submission incomplete:
1: The DOE is requested to include description of the process taken to validate the accuracy and completeness of the project description in VR as per VVM v1.2 paragraph 64(a).
In particular, the DOE shall clarify the project description, in particular, to clarify whether the project activity is a captive power generation project that results in savings in the power purchase from the grid and the operation of the existing boiler for heat generation or is a power generation project that sells power to the mine via the grid, independent from the mine. In doing so, please clarify the relationship between the project participant, the mine and Shanxi Majunyu Coking Co., Ltd., and clarify if the power demand of 38,000 MWh by Shanzi Majunyu Coking Co., Ltd., refers to the power demand by the mine where the project activity is implemented.

2: The DOE is requested to describe the steps taken to assess the identification of the baseline scenario of the project activity as per VVM v1.2 paragraph 87.
I particular, the DOE shall clarify the elimination of the following option and scenario:

-P4 grid connected CMM power generation, which according to the validation report page 13, it is not in compliance with " Fagainengyuan [2007] No. 721" as it is not clear: i) whether the total demand by Shanxi Majunyu Coking Co., Ltd, (30,000 MWh) refers specifically to the demand of the mine where the project activity is implemented or the demand by the company as a whole; and ii) what the nature and the significance of " Fagainengyuan [2007] No. 721" are.

- Scenario 3 combination of P1 grid power and P2 captive power generation, eliminated as P2 captive power generation (project activity without CDM) is economically unattractive as demonstrated by the investment analysis under additionality, as it is not clear what this scenario comprises of and how the DOE confirms that this scenario is unattractive because P2 captive power generation is unattractive.

3: 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, the DOE shall clarify the following input values:

-Total investment of 36.32 million RMB, as it is not clear if this includes the cost of the 10 HXs installed to recover heat for the mine which appears not to be part of the project activity.

-O&M costs equivalent to 15.77% of the total investment, as it is not clear: i) if it includes the operating and maintenance cost of the 10 HXs and related costs for the heat supply to the mine; ii) whether "other material costs" includes purchase cost of CMM; and iii) whether the similar project compared to includes cost of CMM in their O&M costs.

- Tariff of 0.42 RMB/kWh (incl. 17% VAT) considered conservative compared to the published tariff of 0.38 RMB/kWh (incl VAT) for the tariff for sales to grid for CMM fueled power, as it is not clear whether it is conservative compared to the purchase price from the grid considering it is described as a " captive power generation" project in according to the project description.

-The power output of 28,800 MWh/year as indicated in page 22 of the validation report as it is not consistent with 26.640 MWh assumed in the investment analysis and validation is not provided for the auxiliary consumption of 7.5% as indicated in the IRR calculation.

-VAT of 17% and whether the DOE has validated if there are any applicable preferential tax policy such as VAT refund policy and if it is correctly applied to the investment analysis.

- Waste heat from the CMM power generation recovered and supplied to Majunyu Coking Co., Ltd for free, considered reasonable by the DOE for the cheap waste coal available for existing boilers, as it is not clear whether the operational cost of the existing boilers have been considered.