M-DEV0335: Estimation of EGPJ_Add,y parameter in a capacity addition to an existent CDM Wind Power Plant

ACM0002 ver. 11: Consolidated methodology for grid-connected electricity generation from renewable sources

According to page 16 of the methodology, the parameter EGPJ_Add,y (quantity of net electricity generation supplied to the grid in year y by a capacity addition) must be obtained from “continuous measurement and at least monthly recording”. In the context of the proposed project activity, a capacity addition to an existing CDM wind farm, measurement of net energy at the point where electricity is delivered to the grid cannot be performed, as both phases of the project (the existing and the capacity addition) share the same delivery point to the national grid. Hence, the energy delivered by each phase cannot be directly measured but instead has to be calculated from measurements of the electricity generated at the point prior to transformation from low voltage to high voltage.

Consorcio Eólico Amayo, S.A. (Phase I) and Consorcio Eólico Amayo Fase II, S.A. (Phase II) are located side by side on the same geographical area of the Department of Rivas. Both have their own collector for energy at 13.8 kV level that goes into one 13.8 kV common bus bar at the Entrance of the low side of the transformer located at the 230 kV substation, which is the common point where Phase I and Phase II deliver power to the Nicaraguan Grid.

Phase II connects into the same Substation that Phase I does since this is the nearest point to deliver power to grid. Said substation has one main 100 MVA transformer that can handle the total output of Phase I and Phase II, which is approximately 71 MVA at its peak. This way, Phase II has been able to connect to the grid faster by using the same Substation and transformer used by Amayo Phase I. The reduced construction timeline and capital cost savings enabled the Phase II project to agree to a lower energy price (which is passed on to consumers) than the price that would have been needed had the project needed to create a separate injection node.

The Nicaraguan Normative “Normativa de Operación” in place allows two Commercial Agents to deliver energy through the same connection point. In case that the Energy Delivery Point is the same -as in this case- the energy produced by each Agent (Phase I and Phase II) must be identified at each Commercial Agent’s metering point . If the latter are not of the same voltage as the delivery point, a calculation (which must be registered at the CNDC) may be established in order to account the exact amount of net energy provided by each agent.

There are meters on the low voltage side of the transformer, which will separately measure the exact production of Energy of Phase I and Phase II. However, given that the point of delivery of the power of Phase I coincides with the Supply Node of the power of Phase II, and the total power is measured with only one Revenue Metering Point meter located on the high side, 230 kV Delivery Point of the AMAYO Substation, then the Energy corresponding to Phase II (EGPJ_Add,y) will be subject to be identified as:

EGPJ_Add,y = EG 230kV PJ_Add,y

The extended formula for the calculation of the parameter (EGPJ_Add,y) is presented in Annex 1 of this deviation.

The meters for Phase I and Phase II (the ones at the low-voltage side) can identify the energy delivered as well as the energy received. This allows the exact calculation of net energy contributed by each Phase of the project. A total of eight meters will be used at the low-voltage side of the wind farm, four for each phase. These meters have a maximum error of 0.2%, which is the same accuracy of the meters in the high-voltage side according to the Verification Certificates provided by the Nicaraguan National Company of Energy Transmission verified by DNV.

The list of parameters that will be metered is thus:

1. EG 230kV AMAYO,y
2. EG 13.8kV PJ_Add,y
3. EG 13.8kV PhaseI,y

All these parameters are measured on-site on an hourly basis; meters have a maximum error of +/- 0.2% and are audited at least every two years according to local regulations for electricity transactions in the National Interconnected System (more information on current Nicaraguan regulations are available in the PDD in footnotes 64-67).

The list of parameters that will be calculated (according to the formulas listed above and using the metered parameters) is:

1. EG 13.8kV AMAYO
2. EG 230kV PJ_Add,y = EGPJ_Add,y

All these parameters are measured on-site on an hourly basis; meters have a maximum error of +/- 0.2% and are audited at least every two years according to local regulations for electricity transactions in the National Interconnected System (more information on current Nicaraguan regulations are available in the PDD in footnotes 64-67).

The list of parameters that will be calculated (according to the formulas listed above and using the metered parameters) is:

1. EG 13.8kV AMAYO
2. EG 230kV PJ_Add,y = EGPJ_Add,y

If the amount delivered to the grid by Phase II was to be directly metered at the high voltage side, a new transformer would be required just to comply with the CDM methodology, thus creating unnecessary expenses and delays for a project which feasibility already depends on CDM incentives.

Please notice that the fact that Phase II is undertaken as a separate company to the one from Phase I -using independent PPAs and land agreements signed specifically for this capacity addition- will facilitate to easily identify which output and ERs belong to each phase of the project (receipts for energy sales will be made under two different companies name, thus the results from the formula above may be cross checked with sales receipts for each phase).

As per the terms described in EB49 Annex 4, this deviation is specific to the current project circumstances and nature of local implementation and regulations. Therefore, this deviation is specific to this project only and is considered an exception.

Furthermore, this deviation is applicable along the terms described in EB31 Annex 12, as it does not:

- Use a methodology no longer applicable
- Result in revisions as referred to in para. 6 of cited document
- Changes the default parameter values from the ones approved in the methodology

Lastly, guidance from the EB is being sought prior to finalizing the validation report.

The deviation only allows the correct identification of the emission reductions that should be attributed to each phase of the project. Therefore, this deviation does not modify the overall amount of ERs to be received by the Amayo Wind Farm (Phase I + Phase II).