Wind based power generation by Panama Wind Energy Private Limited in Maharashtra, India
[]
Host party(ies) India
Methodology(ies) ACM0002 ver. 12
Standardised Baselines N/A
Estimated annual reductions* 167,542
Start date of first crediting period. 01 Mar 12
Length of first crediting period. 10 years
DOE/AE LRQA Ltd
Period for comments 30 Jul 11 - 28 Aug 11
PP(s) for which DOE have a contractual obligation Panama Wind Energy Private Limited
The operational/applicant entity working on this project has decided to make the Project Design Document (PDD) publicly available directly on the UNFCCC CDM website.
PDD PDD (658 KB)
Local stakeholder consultation report: N/A
Impact assessment summary: N/A
Submission of comments to the DOE/AE Compilation of submitted inputs: 
Beta for power industry is taken at 1.65. This is very high. DOE should check other projects and will find that it cannot be more than 1. Consequently, the return of 24.47% on equity assumed is very high. MERC has recommended only 16% return and EB has recommended much lower return. WACC for this project cannot be more than 11%.
Cost of the project is working out to Rs.6.96 crore per MW. This is very high compared to other projects. MERC and CERC recommended cost is much lower. DOE should take only purchase order into consideration and not offer. Cost cannot be more than RS.60 mn. per MW.
Order for the equipment was placed in May 2011. The project was commissioned in the same year as the CER credit is being sought from March 2012. Hence, the project starts operation in the same year in which it invests. As per financial management principles, the investment should be deducted from the profit of first year and net investment should be taken into account. 
DOE should ensure that the PP has taken into account accelerated depreciation (80%+20% additional depreciation) and tax holiday. Tax savings due to accelerated depreciation should be taken into account as cash inflow in the first year.  
IRR cannot be as low 7.16% for this project.
Submitted by: Karthikeyan

The comment period is over.
* Emission reductions in metric tonnes of CO2 equivalent per annum that are based on the estimates provided by the project participants in unvalidated PDDs