Yalnızardıç Dam and Berat HEPP - VCS Project Database
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PROJECT DESCRIPTION: VCS Version 3
Yalnızardıç Dam and Berat HEPP
Document prepared by:
Armada Eğitim ve Belgelendirme Danışmanlık Müh. Enerji Denizcilik San. ve Tic. Ltd. Şti.
by Muge Karaca
Project Title Yalnızardıç Dam and Berat HEPP
Version 01
Date of Issue 04-02-2015
Prepared By Armada Eğitim ve Belgelendirme Danışmanlık Müh. Enerji Denizcilik San. ve Tic. Ltd. Şti
Contact Physical Address: Mustafa Kemal Mah. Barış Sit. 2139. Sok. No:2/16 Çankaya – ANKARA -
TURKEY,
Telephone: +90 312 284 03 58
Email: mugekaraca@armadadanismanlik.com
Website: www.armadadanismanlik.com
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PROJECT DESCRIPTION: VCS Version 3
Table of Contents
1 Project Details ...................................................................................................................................... 3
1.1 Summary Description of the Project ............................................................................................. 3
1.2 Sectoral Scope and Project Type.................................................................................................. 3
1.3 Project Proponent ......................................................................................................................... 3
1.4 Other Entities Involved in the Project ............................................................................................ 3
1.5 Project Start Date .......................................................................................................................... 4
1.6 Project Crediting Period ................................................................................................................ 4
1.7 Project Scale and Estimated GHG Emission Reductions or Removals ....................................... 4
1.8 Description of the Project Activity.................................................................................................. 4
1.8.1 Technology to be employed by the project activity ............................................................... 6
1.8.2 Civil Construction Details ...................................................................................................... 7
1.9 Project Location .......................................................................................................................... 10
1.10 Conditions Prior to Project Initiation ............................................................................................ 11
1.11 Compliance with Laws, Statutes and Other Regulatory Frameworks ........................................ 11
1.12 Ownership and Other Programs ................................................................................................. 12
1.12.1 Right of Use......................................................................................................................... 12
1.12.2 Emissions Trading Programs and Other Binding Limits ..................................................... 12
1.12.3 Participation under Other GHG Programs .......................................................................... 12
1.12.4 Other Forms of Environmental Credit ................................................................................. 12
1.12.5 Projects Rejected by Other GHG Programs ....................................................................... 12
1.13 Additional Information Relevant to the Project ............................................................................ 12
2 Application of Methodology ................................................................................................................ 13
2.1 Title and Reference of Methodology ........................................................................................... 13
2.2 Applicability of Methodology ........................................................................................................ 13
2.3 Project Boundary ......................................................................................................................... 15
2.4 Baseline Scenario ....................................................................................................................... 17
2.5 Additionality ................................................................................................................................. 18
2.6 Methodology Deviations .............................................................................................................. 25
3 Quantification of GHG Emission Reductions and Removals ............................................................. 25
3.1 Baseline Emissions ..................................................................................................................... 25
3.2 Project Emissions ........................................................................................................................ 26
3.3 Leakage....................................................................................................................................... 26
3.4 Net GHG Emission Reductions and Removals ........................................................................... 26
Ex-ante calculation of emission reduction .......................................................................................... 30
Summary of the ex-ante estimation of emission reductions: ............................................................. 36
4 Monitoring ........................................................................................................................................... 36
4.1 Data and Parameters Available at Validation ............................................................................. 36
4.2 Data and Parameters Monitored ................................................................................................. 40
4.3 Description of the Monitoring Plan .............................................................................................. 42
5 Environmental Impact ......................................................................................................................... 44
6 Stakeholder Comments ...................................................................................................................... 44
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PROJECT DESCRIPTION: VCS Version 3
1 PROJECT DETAILS
1.1 Summary Description of the Project
Title : Yalnızardıç Dam and Berat HEPP
Document Version : 01
Date of Completion : January 31h, 2015
Yalnızardıç Dam and and Berat HEPP is a grid-connected power project in Turkey. Project activity
is installed by Albe Enerji Elektrik Elektronik Danışmanlık Müşavirlik Petrol Madencilik Tarım
Hayvancılık Sanayi ve Ticaret A.Ş. (Albe Enerji in short). The project uses renewable source of the
Gevye stream of the Göksu River in Konya/Turkey. The total installed capacity of Yalnızardıç Dam
and and Berat HEPP is 33.00 MW. There are two turbines. Two of them have 16.25 MW’s and one
of them has 0.50 MW capacity. Yalnızardıç Dam and Berat HEPP will be connected with a
transmission line of 22 km of 34.5 kV to the transformer station which is connected to the
transmission grid of 154 kV. The project activity will generate 73.101 GWh per year. Based on the
Turkey’s Combined Margin Emission Factor of 0.4175 tCO2e/MWh, the project is expected to
produce 30,520 tonnes of CO2eq GHG reductions each year. In the absence of the project activity,
the same amount of energy will be produced by grid-connected fossil fuel based power plants which
are common in Turkey.
1.2 Sectoral Scope and Project Type
Using the list of categories of project activities and of registered CDM project activities by category
available on the UNFCCC CDM web site, Yalnızardıç Dam and Berat HEPP falls in:
Scope number : 1
Sectoral scope : Energy industries (renewable - / non-renewable sources)
The project is not a grouped project.
1.3 Project Proponent
Organization name Albe Enerji Elektrik Elektronik Danışmanlık Müşavirlik Petrol Madencilik
Tarım Hayvancılık Sanayi ve Ticaret A.Ş.
Contact person Atilla Ataç
Title Energy Coordinator
Address Horasan Sok. No:24 G.O.P. Çankaya / ANKARA
Telephone +90 312 447 17 00
Email aatac@kolin.com.tr
1.4 Other Entities Involved in the Project
Organization name Armada Eğitim ve Belgelendirme Dan. Müh. Enerji Denizcilik. San. ve Tic.
Ltd. Şti
Role in the project Consultant
Contact person Müge Karaca
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PROJECT DESCRIPTION: VCS Version 3
Title Project Coordinator
Address Mustafa Kemal Mah. Barış Sit. 2139. Sok. No:2/16 Çankaya, Ankara -
Turkey
Telephone +90 312 284 03 58
Email mugekaraca@armadadanismanlik.com
1.5 Project Start Date
March 1st, 2015 is the expected start date of the project activity which is the start date of operation,
and is also the project’s start of GHG reduction.
1.6 Project Crediting Period
The crediting period starts with the commissioning of the plant, exactly with the first day of
documented electricity supply to the grid. A renewable crediting period (10 years) which can be
renewed 3 times is chosen.
Crediting Period Start Date : 01.03.2015
Crediting Period End Date : 28.02.2025
1.7 Project Scale and Estimated GHG Emission Reductions or Removals
Project Scale
Project
Large project X
Years Estimated GHG emission
reductions or removals (tCO2e)
01-03-2015 till 28-02-2016 30,520
01-03-2016 till 28-02-2017 30,520
01-03-2017 till 28-02-2018 30,520
01-03-2018 till 28-02-2019 30,520
01-03-2019 till 28-02-2020 30,520
01-03-2020 till 28-02-2021 30,520
01-03-2021 till 28-02-2022 30,520
01-03-2022 till 28-02-2023 30,520
01-03-2023 till 28-02-2024 30,520
01-03-2024 till 28-02-2025 30,520
Total estimated ERs 305,200
Total number of crediting years 10
Average annual ERs 30,520
1.8 Description of the Project Activity
The grid-connected electricity generation from renewable sources project Yalnızardıç Dam and
Berat HEPP in Turkey will be installed by Albe Enerji Elektrik Elektronik Danışmanlık Müşavirlik
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Petrol Madencilik Tarım Hayvancılık Sanayi ve Ticaret A.Ş. (Albe Enerji in short) Yalnızardıç Dam
and Berat HEPP involves the installation and operation of a plinth tailwater power plant and a
downstream power plant to best suit the local conditions of the project area. Yalnızardıç Dam and
Berat HEPP will be connected with a transmission line of 22 km of 34.5 kV to the transformer station
which is connected to the transmission grid of 154 kV.
Yalnızardıç Dam and Berat HEPP is located on the river Gevne which is passing through the
Province of Konya. Project area can be located on scaled (1/1000) maps which are presented as
supplementary documents (please see 16-Maps). According to the finding done in 09-10-2014, the
ratio of civil construction completed is 88%. After the completion of civil construction works, the
plant will be commissioned in March 2015. The agreement for construction works will be signed
with a contractor company after necessary assessments for choosing the best option.
Yalnızardıç Dam and Berat HEPP project includes the combination of two facilities (“Yalnızardıç
Dam” and “Berat HEPP”) which are both planned and developed by the same project owner. After
considering financial and operational implementation criteria for both facilities, the company has
decided to implement a unified project under the name of “Yalnızardıç Dam and Berat HEPP”. The
owner company has taken a generation license for previously planned Yalnızardıç Dam’s (obtained
from the Energy Market Regulatory Authority, EMRA) power plant which has been issued on 04-
08-2011 where the capacity of the facility has been mentioned as 17.52 MWm. However the
combined project (Yalnızardıç Dam and Berat HEPP) is designed to be operational with an installed
capacity of 33.00 MWm. License application for Yalnızardıç Dam and Berat HEPP has been
finalized and the license has been given for the purpose of conducting productive activity for 49
years dating from 11.03.2009.
According to the planned generation data, an average generation of 73,101,000 kWh (73.101 GWh)
per year is expected by the efficient utilization of the hydraulic energy, where the project activity
will replace grid electricity, which consists of different fuel sources, mainly fossil fuels. By the end
of 2013, about 71.0% of the electricity is generated by fossil fuel based power plants. Forecasts of
TEIAS (National Grid Operator) show that the dependency of the Turkish electricity generation
system on fossil fuels will continue with 74% share in total generation by 2018 (see also Table 5).
Utilizing renewable energy, the electricity produced by project activity will, therefore, result in an
annual emission reduction of 30,520 tonnes of CO2e, from business as usual scenario. Moreover,
the project activity will contribute to the further dissemination of hydraulic energy and an extension
of the national power generation. It is expected that the generation of electricity will start as of
March 2015 and the operational life is assumed as 49 years (as “Generation Licenses in the host
country Turkey are given for 49 years). However, it is recommended to renew the equipment in
every 20 years.
The project will help Turkey to stimulate and commercialise the use of grid connected renewable
energy technologies and markets. Furthermore, the project will demonstrate the viability of grid
connected hydropower which can support improved energy security, improved air quality,
alternative sustainable energy futures, improved local livelihoods and sustainable renewable
energy industry development. The specific goals of the project are to:
reduce greenhouse gas emissions in Turkey compared to the business-as-usual scenario;
help to stimulate the growth of the hydropower industry in Turkey;
create local employment during the construction and the operation phase of the proposed
facility.
reduce other pollutants resulting from the power generation industry in Turkey, compared to a
business-as-usual scenario;
help to reduce Turkey’s increasing energy deficit;
and to differentiate the electricity generation mix and to reduce import dependency.
As the project developer, Albe Enerji believes that efficient utilization of all kinds of natural
resources coupled with responsible environmental considerations is vital for sustainable
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development of Turkey and the World. This has been a guiding factor for the shareholders towards
designing and installation of a HEPP project. Other than the objective of climate change mitigation
through significant reduction in greenhouse gas (GHG) emissions, the project has been carried out
to provide social and economic contribution to the region in a sustainable way. The benefits that
will be gained by the realization of the project compared to the business-as-usual scenario can be
summarized under four main indicators:
Environmental
The project activities will replace the grid electricity which constitutes different fuel sources causing
greenhouse gas emissions. By replacing the consumption of these fuels, it contributes to the
conservation of water, soil, flora and faunas and transfers these natural resources and also the
additional supply of these primary energy sources to the future generations. In the absence of the
project activity, an equivalent amount of electricity would have been generated from the power
plants connected to the grid, majority of which are based on fossil fuels. Thus, the project is
replacing greenhouse gas emissions (CO2, CH4) and other pollutants (SO X, NOX, particulate
matters) occurring from the extraction, processing, transportation and burning of fossil-fuels for
power generation connected to the national grid.
Economic
Firstly, the project will help to accelerate the growth of the hydro power industry and stimulate the
designation and production of renewable energy technologies in Turkey. Then, other entrepreneurs
irrespective of sector will be encouraged to invest in hydro power generation capacity as well. It will
also help to reduce Turkey’s increasing energy deficit and diversify the electricity generation mix
while reducing import dependency, especially natural gas.
Social
Local employment will be enhanced by all project activities during construction and operation of the
HEPP. As a result, local poverty and unemployment will be partially eliminated by increased job
opportunities and project business activities. Construction materials for the foundations, cables and
other auxiliary equipment will preferably be sourced locally.
Technological
Implementation of the proposed project will contribute to a wider deployment of the technology for
developing HEPPs at the local and national level. It will demonstrate the viability of larger grid
connected HEPPs which will support improved energy security, alternative sustainable energy, and
also renewable energy industry development. This will also strengthen pillars of Turkish electricity
supply based on ecologically sound technologies.
1.8.1 Technology to be employed by the project activity
The proposed project activity generates electricity from hydro power with an installed capacity of
33.00 MWm.
According to the feasibility study as under consideration by the State Hydraulic Works, the average
net electricity production and delivery to the grid is expected to be 73.101 GWh per year. This
implies an average capacity factor of 25.6%, when the installed capacity of 33.00 MWm is taken
into account.
Yalnızardıç Dam and Berat HEPP project entails the construction and operation of a 0.50 MWm
MWm plinth hydroelectric power plant after the dam structure and 32.50 MWm downstream power
plant which will regulate the water flow and work to produce electricity. The water will be transferred
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to constructed connection tunnel, and then to penstock to reach the downstream power plant. On
the other hand, plinth power plant will have no connection tunnel in design. The project consists of
hydro power plant with three turbines; one of 0.50 MWm and two of 16.25 MWm capacity. The
turbines will be first hand Francis type with vertical axis. The electromechanical contracts were
signed on 17.05.2013. The net electricity production (delivered to the grid after losses and
consumption in the plant) from the plant is estimated to be 73.101 GWh per annum, as specified
on the generation license.
The technology which is planned to be used in the plant includes first hand hydro turbines and its
auxiliary equipment with extensive automatization. There is no new technology which is expected
to replace the plant’s selected technology in the short run. The project does not need extensive
initial training and maintenance efforts in order to work during the project period. Necessary
trainings to the plant staff will be delivered by the supplier in line with the agreement between the
project owner and the supplier. Electromechanical equipment providing companies also provide a
guarantee and maintenance for 2 years and related trainings of the plant’s personnel will be
delivered by these companies through related agreements.
The economic life of an HEPP in Turkey is assumed as 49 years as specified on the generation
license. “Generation licenses” are given by EMRA usually for this time range. However, it is
recommended to renew the equipment every 20 years.1
1.8.2 Civil Construction Details
As mentioned in above sections, proposed facility is designed to include a combination of two
previously planned facilities which both belong to the same project owner. Owner company has
made this decision after technical assessments which lead to a more financially attractive option.
Final project “Yalnızardıç Dam and Berat HEPP” consists of an upstream dam (Yalnızardıç Dam),
a plinth power plant and a downstream power plant which was previously named as Berat HEPP.
Dam structure will be constructed on Gevne River’s 1272.25 thalweg level, 112.75 meters higher
than the thalweg elevation. By the help of water intake structure which is planned to be constructed
on the right beach at a level of1350.00 m, water will be transferred to pressurized connection tunnel
and then to penstock which ends at Berat HEPP’s turbine structure. Within the power plant structure
of Berat HEPP, there exists 2 francis turbines having an installed capacity of 32.50 MW
On the other hand downstream tailwater at dam axis is planned to be used for electricity generation
purposes. For that reason 0.586 m3/s flow rate of tailwater is planned to be regulated by a plinth
power plant which will have an installed capacity of 0.50 MWm. When both electricity generation
units of the proposed facility is considered project’s total installed capacity becomes 33.00 MWm
which will help the facility to produce an electrical energy of 73.101 GWh annually. Other
characteristic information related to the proposed facility is described briefly in the following table:
Rainfall area 254 km2
Annual average water amount 192.07 hm3 (6.10 m3/s) (natural situation)
Berat HEPP Tailwater HEPP Total
Turbined water amount 170.29 hm3 18.38 hm3 188.67 hm3
5.40 m3/s 0.586 m3/s 5.98 m3/s
Regulation ratio 98%
Downstream tailwater left 0.586 m3/s
Yalnızardıç Dam Reservoir
Maximum water level 1381.50 m
1 http://ekutup.dpt.gov.tr/enerji/oik585.pdf (page 4.26)
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Normal water level 1381.50 m
Minimum water level 1350.00 m
Total storage volume 129.906 hm3
Active storage volume 83.375 hm3
Dead volume 46.531 hm3
Sedimentation volume 25.000 hm3
Yalnızardıç Dam Structure
Body type Clay core rockfill
Thalweg level 1272.25. m
Crest elevation 1385.00 m
Elevation above thalweg 112.75 m
Elevation above the base 120 m
Slope of downstream bevel 2.0 (y) / 1.0 (D)
Slope of upstream bevel 2.0 (y) / 1.0 (D)
Crest length 475 m
Crest width 10 m
Body volume 4 972 123 m3
Yalnızardıç Dam Cofferdam and Derivation Tunnel
Type Clay core rockfill
Crest elevation 1307.00 m / 1290.00 m
Crest length 155.50 m / 155.50 m
Crest width 4.00 m / 4.00 m
Fill volume 136 600 m3 / 44 080 m3
Derivation Tunnel Type Modified horseshoe (ɸ = 4.50 m)
Derivation Tunnel Lenght 706.20 m
Slope of Derivation Tunnel Base 0.007 m/m
Structure of the spillway
Type Radial cap, reverse intake
Crest level 1379.30 m
Cap number Radial 6 caps
Cap dimensions 7.5 x 2.7 m (B x H)
Water Intake Structure
Type Reverse intake with bellmouth
Location Right beach
Dimensions 6.00 x 8.00 m (BxH)
Grate dimensions 5.00 x 6.50 m (BXH)
Energy Tunnel
Type Modified Horseshoe
Location Right beach
Diameter and Height 3.20 m / 4 850 m
Surge Chamber
Type Vertical shaft connecte with a throttle
Diameter and Height 15.00 m / 56 m
Environment Elevation 1385.90 m
Min. Water Level 1335.68 m
Max. Water Level 1384.56 m
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Penstock
Berat HEPP
Diameter 2.35 m
Length 379.50 m (bended)
Tailwater HEPP
Diameter 0.40 m
Length 280.40 m (bended)
Hydroelectrical Power Plant
Berat HEPP
Berat HEPP operational level of water 1381.50 m
Tailwater level 1205.00 m
Project flow rate 22.46 m3/s
Gross Water Drop Level 176.50 m
Net Design Drop Level 167.80 m (average)
Power plant location thalweg level 1203.70 m
Power plant type Cycle plant
Tailwater HEPP
Operational level of water 1381.50 – 1350.00 m (average 1373.66 m)
Tailwater level 1273.50 m
Project flow rate 0.586 m3/s
Gross Water Drop Level 108.00 m
Net Design Drop Level 104.76 m (average)
Power plant location thalweg level 1272.12 m
Power plant type Plinth plant
Berat HEPP Turbines
Amount 2
Type Vertical axis Francis
Nominal power 16 250 kW + 16 250 kW
Design flow rate 11.23 m3/s + 11.23 m3/s
Design net water drop level 167.80 m (average net drop)
Synchroneity speed 700 rpm
Specific speed 140.0 m-kW
Berat HEPP Generators
Amount 2
Type Vertical axis generator
Working style Continuous
Nominal Power 18 500 kVA + 18 500 kVA
Terminal voltage 6.3 kV
Power factor 0.9 (back)
Frequency 50 Hz
Rotation speed Variable
Impulse type Francis type turbine coupled with axis
Warning type Static warning
Shorcut ratio Higher than 1
Isolation class F
Tailwater HEPP Turbines
Amount 1
Type Horizontal axis Francis
Nominal power 540 kW
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Design flow rate 0.586 m3/s
Design net water drop level 167.80 m (average net drop)
Synchroneity speed 600 rpm
Specific speed 160.0 m-kW
Tailwater HEPP Generators
Amount 1
Type Horizontal axis generator
Working style Continuous
Nominal Power 650 kVA
Terminal voltage 6.3 kV
Power factor 0.9 (back)
Frequency 50 Hz
Rotation speed Variable
Impulse type Francis type coupled with the axis
Warning type Static warning
Shorcut ratio Higher than 1
Isolation class F
Ref: Feasibility Study Report (See “18- FSR/” directory in supplementary documents)
1.9 Project Location
The Yalnızardıç Dam and Berat HEPP is located in the Central Anatolian (Dam structure) and South
Anatolian region (Berat HEPP) of Turkey. It is located on the Gevne/Göksu river. The geographical
coordinates of Yalnızardıç Dam and Berat HEPP, and the location of the project on Turkey map
are as follows:
Table 1 Location of the dam and the power plant of Yalnızardıç Dam and Berat HEPP
Dam and Plinth HEPP Berat HEPP
Latitude (N) Longitude (E) Latitude (N) Longitude (E)
1 36.762544° 32.458166° 2 36.711888° 32.451826°
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Figure 1 Project area and the power plant siting in the water catchment
1.10 Conditions Prior to Project Initiation
There was no other hydroelectric power plant installation at the project location. The project activity
does not generate greenhouse gas emissions, so it can be concluded that the implementation has
been made only in order to generate GHG emissions with their subsequent reduction.
1.11 Compliance with Laws, Statutes and Other Regulatory Frameworks
Undertaking the project activity is in compliance with the following identified applicable mandatory
laws and regulations:
(1) Electricity Market Law2
(2) Law on Utilization of Renewable Energy Resources for the Purpose of Generating Electricity
Energy3
(3) Environment Law4
(4) Energy Efficiency Law5
(5) Forest Law6
2 See: http://www.epdk.gov.tr/documents/elektrik/mevzuat/kanun/Elk_Kanun_Epk_Son.doc (Enactment Date:2001)
3 See: http://www.epdk.gov.tr/documents/elektrik/mevzuat/kanun/Elk_Kanun_Yek_Kanun.doc (Enactment Date: 2005)
4 See:
http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=1.5.2872&MevzuatIliski=0&sourceXmlSearch=%C3%A7evre%2
0kanunu (Enactment Date: 1983)
5 See: http://www.eie.gov.tr/duyurular/EV/EV_kanunu/EnVerKanunu_Temmuz2008.pdf (Enactment Date: 2007)
6
http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=1.3.6831&MevzuatIliski=0&sourceXmlSearch=orman%20kanun
u
v3.2 11PROJECT DESCRIPTION: VCS Version 3
(6) Regulation on Environmental Impact Assessment7
According to the rules indicated in the Electricity Market Law, permission is granted to a legal entity
by the board of EMRA (Electricity Market Regulatory Authority) in order to enable it to engage in
market activities.
1.12 Ownership and Other Programs
1.12.1 Right of Use
Necessary documents that support the proof of company title were provided to the DOE as
separate files. The documents include “Turkish Trade Registry Gazette” where company title was
listed accordingly and signature circulars of authorized company directors.
1.12.2 Emissions Trading Programs and Other Binding Limits
Host country Turkey recently ratified the Kyoto Protocol. But currently neither CDM nor JI Projects
can be developed in Turkey. To generate ERUs within a JI Project country, that country must have
a cap, which is not the case in Turkey. Thus generating ERUs within a JI Project is not possible for
Turkey. Turkey is classified as Annex-I party. This is the reason why CDM is also not an option.
Therefore the site is not subject to binding limits on greenhouse gas emissions and there is no
regulatory greenhouse gas emission trading program in Turkey.
1.12.3 Participation under Other GHG Programs
The project has not registered, and is not seeking registration under any other greenhouse gas
program.
1.12.4 Other Forms of Environmental Credit
The project has not registered, and is not seeking registration under any other greenhouse gas
program.
1.12.5 Projects Rejected by Other GHG Programs
The project has not been rejected by any other greenhouse gas program.
1.13 Additional Information Relevant to the Project
As an additional information related to the project activity, it must be clarified whether the project
activity has any fossil fuel consumption onsite. The facility will use its self-produced electricity
during the operational stage, but in emergency situations, electricity will be taken from TEIAS by
paying its price (which will be cut from the generation income). The use of a diesel generator is the
last resort to be used in these kind of situations and carbon emissions from the diesel generator is
taken as 0 (zero) in the ER calculations by considering unplanned and momentary usage during
operational stage.
7
http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.12256&MevzuatIliski=0&sourceXmlSearch=%C3%A7evrese
l%20etki%20de%C4%9Ferlendirmesi%20y%C3%B6netmeli
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2 APPLICATION OF METHODOLOGY
2.1 Title and Reference of Methodology
For determination of the baseline, the approved small scale methodology; AMS-I.D., Version 17.0,
“Grid Connected Renewable Electricity Generation”8, has been applied.
The Approved Methodology refers to the following tools:
“Tool to calculate the emission factor for an electricity system” (Version 4.0.0).
“Tool to calculate project or leakage CO2 emissions from fossil fuel combustion” (Version 02)
2.2 Applicability of Methodology
The methodology AMS-I.D, Version 17.0, is applicable to grid-connected renewable power
generation project activities that are:
Reference page in Applicability Criteria Justification
AMS-I.D Version
17.0
1 Supplying electricity to a national or Proposed project will supply
a regional grid; or electricity to Turkey’s national
grid operated by TEIAS.
1 Supplying electricity to an identified There is no contractual
consumer facility via arrangement between the project
national/regional grid through a owner company and an identified
contractual arrangement such as consumer facility. Yalnızardıç
wheeling; Dam and Berat HEPP project will
only supply electricity to the
national grid.
1 Install a new power plant at a site No power plant was operated on
where there was no renewable the proposed site of project
energy power plant operating prior activity. Technical project
to the implementation of the project preparation of the proposed
activity (Greenfield plant) activity and related feasibility
studies are completed for a
greenfield activity.
1 Involve a capacity addition; Project does not involve a
capacity addition. On-site
assessments and satellite
imagery are adequate
justifications regarding this
consideration.
1 Involve a retrofit of (an) existing Project activities does not involve
plant(s); or a retrofit of (an) existing plant.
FSR, project licence and on-site
assessments are adequate
justifications regarding this
consideration.
Involve a replacement of (an) The project does not involve a
existing plant(s) replacement of (an) existing plant
or plants. Above mentioned
clarifications are also acceptable
for this item.
8 http://cdm.unfccc.int/filestorage/V/9/L/V9LRSXKP24Q7YT6HZDUBO3C0ING8AJ.1/EB61_repan17_Revision_AMS-
I.D_ver17.pdf?t=RjV8bTg0czJ2fDAUXvAZG9PAKaZt54JtLAyd (accessed on 11 August 2012)
v3.2 13PROJECT DESCRIPTION: VCS Version 3
Reference page in Applicability Criteria Justification
AMS-I.D Version
17.0
2 Hydro power plants with reservoirs The project activity is not
(A reservoir is defined as a water implemented in an existing
body created in valleys to store reservoir, where the volume of
water generally made by the reservoir is increased and the
construction of a dam) that satisfy power density of the project
at least one of the following activity is identified as far greater
conditions are eligible to apply this than 4 W/m2 by considering that
methodology: Yalnızardıç Dam and Berat
o The project activity is HEPP project is an accumulation
implemented in an existing reservoir type HEPP and
single or multiple reservoirs, installed capacity per areal
with no change in the volume storage capacity is far greater
of any of reservoirs; than the mentioned reference; 4
o The project activity is W/m2. The situation is clearly
implemented in an existing identified within the “Revised
reservoir, where the volume of Feasibility Study Report” (pdf
reservoir is increased and the page 147) and below:
power density of the project
activity, as per definitions given Yalnızardıç Accumulation
in the project emissions Reservoir
section in the approved
methodology, is greater than 4 Normal Water Level: 1381.50 m
W/m2; Total Storage Volume: 129.91
o The project activity results in hm3
new reservoirs and the power Installed Capacity: 33 MW
density of the power plant, as Power Density (PD): 33*106W /
per definitions given in the (129.91*106 m3 / 1381.50 m) =
project emissions section in 351 W/m2
the approved methodology, is
greater than 4 W/m2.
2 If the new unit has both renewable The project does not involve an
and non-renewable components installation which has both
(e.g. a wind/diesel unit), the renewable and non-renewable
eligilibility limit of 15 MW for a components.
small-scale CDM project activitiy
applies only to the renewable
component. If the unit co-fires fossil
fuel, the capacity of the entire unit
shall not exceed the limit of 15 MW.
2 According to approved The project does not include any
methodology, combined heat and combined heat and power (co-
power (co-generation) systems are generation) system.
not eligible under the category
mentioned within the applicability
criteria part of the document.
2 It is stated in the approved Proposed project activity does
methodology that in the case of not involve the addition of
project activities that involve the renewable energy generation
addition of renewable energy units at an existing renewable
generation units at an existing power generation facility.
renewable power generation
facility, the added capacity of the
units added by the project should
v3.2 14PROJECT DESCRIPTION: VCS Version 3
Reference page in Applicability Criteria Justification
AMS-I.D Version
17.0
be lower than 15 MW and should
be physically distinct from the
existing units.
2 The approved methodology states Proposed project activity does
that in the case of retrofit or not involve any cases such as
replacement, to qualify as a small- retrofit or replacement.
scele project, the total output of the
retrofitted or replacement unit shall
not exceed the limit of 15 MW.
All related files which justify the situation of being a grid connected greenfield plant are provided as
supplementary documents (Check directory “19-EIA_positive” for the coordinates of the facility and
for the confirmation that the EIA is accepted by the Ministry of Environment and Urbanization on
12-12-2012). This acceptance was before the start of the construction of the project. In the host
country (Turkey), projects are obligated to get EIA approval letter before the implementation of a
project to a Greenfield, except for small hydro projects, which receive an EIA exemption letter.
2.3 Project Boundary
The Yalnızardıç Dam and Berat HEPP Project entails the installation and operation of a plinth
tailwater power plant (0.50 MW) and a downstream power plant (32.50 MW) which have a total
installed capacity of 33 MW to best suit the local conditions of the project area. The project consists
of a hydro power plant with three turbines; one with a nominal power of 500 kW, and two of each
having 16,250 kW.
The project boundary includes net electricity generated and supplied to the Turkish national grid.
There is a diesel generator only for the emergency situations. The electricity produced in the
generator is not for selling purposes, it is only used for internal consumption of the plant.
A general operator diagram is given in the next figure, which is presented in more detail in “11-
Single_Line_Diagram”:
v3.2 15PROJECT DESCRIPTION: VCS Version 3
All the other plants are
connected to the grid.
Figure 2 Operator diagram for the Yalnızardıç Dam and Berat HEPP
Based on the above operation diagram, the baseline and project activity related greenhouse gases
which are considered in baseline calculation is given below:
v3.2 16PROJECT DESCRIPTION: VCS Version 3
Table 2 Justification of the project boundary
Source Gas Included? Justification/Explanation
Generation CO2 Yes CO2 emissions from fossil fuel fired power plants
that are displaced due to the project activity are
Baseline
mix of
taken into account
electricity
CH4 No Minor emission source
grid in
Turkey N2O No Minor emission source
CO2 No As net electricity approach is applied, emissions
that occur during construction and during the
Construction operation are negligible and non-existent
and respectively
Project
CH4 Yes The emissions during construction are at a
operation of negligible level and also, as the power density of
the HEPP the project is far more than 10 W/m 2 (by
Project considering runoff structure of the plant with no
reservoir), no CH4 emissions are expected.
N2O No Minor emission source
2.4 Baseline Scenario
Since the proposed project activity is the installation of a new grid-connected hydroelectric, that is
a renewable power plant and therefore, the baseline scenario is defined as the following based on
AMS I.D (Version 17.0):
“The baseline scenario is that the electricity delivered to the grid by the project activity
would have otherwise been generated by the operation of grid-connected power plants
and by the addition of new generation sources into the grid.”
Since the proposed project activity is going to be connected to the Turkish national grid, the
baseline scenario of the proposed project is the supply of the equivalent amount of annual power
output by the existing Turkish national grid which is the continued operation of existing power plants
and the addition of new sources to meet electricity demand.
Since the proposed project activity is an installation of a new grid-connected renewable power
plant, the baseline scenario is formulated in AMS I.D./Version 17 “Electricity delivered to the grid
by the project would have otherwise been generated by the operation of grid-connected power
plants and by the addition of new generation sources, as reflected in the Combined Margin (CM)
calculations described below”.
According to the “Baseline Methodology Procedure” in the “Tool to Calculate the Emission Factor
for an Electricity System Version 04.0.0.”, the following steps should be followed.
All the information pertaining to the grid and estimating baseline emissions are publicly available,
and was available at the website of TEIAS (Turkish Electricity Transmission Company Inc.).
To describe the baseline and its development for the project activity, long term electricity demand
and supply projections for Turkey are assessed.
Demand for electricity in Turkey has been growing rapidly with an average growth of 5.8% over the
previous ten years. TEIAS, who is responsible from the grid reliability has prepared an electricity
v3.2 17PROJECT DESCRIPTION: VCS Version 3
demand projection for next ten years period (2014-2023) for Turkey and published in December
2014, given in the next Table, reflecting the continuation of current demand growth. 9
Table 3 Low and High Demand Projection Scenarios for Ten Years Period (TWh)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Base demand 256.7 271.5 287.3 302.8 320.0 338.3 357.4 376.2 395.5 415.7
High demand 274.0 291.5 309.9 329.1 349.2 370.1 391.9 414.7 438.3 462.9
Source: Table 4 and 5 of the TEIAS capacity projection,
http://www.teias.gov.tr/YayinRapor/APK/projeksiyon/KAPASITEPROJEKSIYONU2014.pdf
In this projection, electricity supplies are also forecasted taking into account all power plants which
are operational, under construction and newly licensed. Generation projection based on project
generation is given in the next Table:
Table 4 Projection of Total Generation Capacity by Fuel Types (GWh)
2013 2014 2015 2016 2017 2018 Share in 2018
Lignite 52880 54094 55325 56825 58746 59071 13.1%
Hard Coal 3967 4939 5911 5911 5911 5911 1.3%
Imported Coal 26287 33957 41876 42567 42132 42179 9.4%
Natural Gas 177543 185308 193493 199278 205683 208381 46.3%
Geothermal 2206 2508 2962 3279 4040 4635 1.0%
Fuel Oil 9429 9834 10239 10239 10239 10239 2.3%
Diesel 148 148 148 148 148 148 0.0%
Nuclear 0 0 0 0 0 0 0.0%
Other 1332 1332 1332 1332 1332 1332 0.3%
Total thermal 273790 292118 311284 319577 328230 331895 73.7%
Biogas + waste 1508 1619 1736 1768 1792 1792 0.4%
Hydro 77094 83195 89777 96208 100123 101778 22.6%
Wind 9646 10537 11611 13089 14568 14752 3.3%
Total 362038 387468 414409 430643 444713 450217
Fossil fuel share 76% 75% 75% 74% 74% 74%
Source: Table 21 of the TEIAS capacity projection,
http://www.teias.gov.tr/YayinRapor/APK/projeksiyon/KAPASITEPROJEKSIYONU2014.pdf
As a result, fossil fuels will hold the dominance in generation mix for at least midterm period (until
the end of 2018) with 73.7% share. Hydro share will stay at a 22.6% share and non-hydro
renewable energy contribution will constitute a mere 3.7% of the total share by the end of 2018.
2.5 Additionality
For the explanation of how and why the project activity leads to emission reductions that are
additional to what would have occurred in the absence of the project activity, the Baseline
Methodology refers to the consolidated “Guidelines on the demonstration of additionallity of small
scale project activities (version 9)”, which defines a step-wise approach to be applied to the
proposed project.
Within the scope of additionality to justify the early consideration of VER, the timeline of the project
activity is presented below.
9 http://www.teias.gov.tr/YayinRapor/APK/projeksiyon/KAPASITEPROJEKSIYONU2014.pdf
v3.2 18PROJECT DESCRIPTION: VCS Version 3
Table 5 Planned Project Implementation Schedule and Early Consideration of VER
Date (DD/MM/YYYY) Activity
11-03-2009 First license application for Yalnızardiç.
01-01-2011 Revised FSR
“Environmental Impact Assessment Exemption Certificate” from
12-12-2012
Ministry of Environment and Urbanization
22-10-2012 Water Usage Agreement with DSI
Final Revision of Licence (After the combination of Yalnizardıç
04-08-2011
Dam and Berat HEPP); Licence No EÜ/3344-28/2032
Investment decision by considering the income from carbon
12-12-2011
offsets.
Agreement for getting consulting services for emission reduction
22-05-2012
activities.
07-05-2013 Registration of the Company on Turkey Trade Registry Gazette
17-05-2013 Electromechanical Agreement
13-11-2013 Local Stakeholder Meeting Regarding VER Activities
STEP 1. Identification of alternatives to the project activity consistent with current laws and
regulations.
SUB-STEP 1a. Alternatives to the project activity
The project alternatives can be defined as follows:
a) The proposed project activity undertaken without being registered as a VER project activity
This alternative is not credible since the investment analysis shows that the project is not
economically feasible without VER credit income. Detailed information is given in Step 2.
b) Other realistic and credible alternative scenario(s) to the proposed VER project activity scenario
that deliver electricity with comparable quality, properties and application areas, taking into account,
where relevant, examples of scenarios identified in the underlying methodology;
The project activity is a power generation activity without any greenhouse gas emission employing
hydro electricity generation. Being a private entity, Albe Enerji does not have to undertake power
investments in the proposed project activity. Also, since Albe Enerji only has a licence for a hydro
power investment and since in the proposed project area there is no hydro or other sources for
electricity generation, other project activities delivering the same electricity in the same project area
is not a realistic alternative for the project participant.
c) Continuation of the current situation, i.e. Yalnızardıç Dam and Berat HEPP is not built
The decision in favour or against a project investment depends on the expected revenues and risks,
like for every other private investment. Investment decisions other than Yalnızardıç Dam and Berat
HEPP are independent from the question whether Yalnızardıç Dam and Berat HEPP is built or not.
This alternative is also realistic and credible.
According to the baseline scenario which is described in Section B.4, there is a need for energy
investment to satisfy increasing demand and if the Yalnızardıç Dam and Berat HEPP is not built,
the same amount of energy will be supplied by other private investors to the grid. Forecasts shows
that electricity supplied in the absence of the Yalnızardıç Dam and Berat HEPP will be based for
the great majority on fossil fuels as shown by official TEIAS projections until the year 2018, where
a share of 73.7% fossil fuels in the energy mix is foreseen.
v3.2 19PROJECT DESCRIPTION: VCS Version 3
Therefore, one realistic and credible alternative scenario is identified for the project activity:
a) Continuation of the current situation, i.e. Yalnızardıç Dam and Berat HEPP is not built.
The only real alternative to the project is not building the project. This means that no action is
undertaken by the project developer and in fact the decision of not investing does not contradict
with any legal and regulatory requirements.
SUB-STEP 1b. Consistency with mandatory laws and regulations
The project alternative, the baseline scenario which is the continuation of the existing situation is
in compliance with all mandatory applicable and legal and regulatory requirements. Also the
alternative scenario of addition of new power generation capacity to the grid is regulated by the
Energy Market Regulatory Authority (EMRA) who issued the licenses for electricity generation and
is responsible for ensuring that new capacity applies with its rules and regulations.
Outcome of Step 1b: The alternative scenario to the project activity is the supply of electricity by
the existing grid with additional capacity is in compliance with the mandatory legislation and
regulations.
STEP 2. Investment analysis
SUB-STEP 2a: Appropriate analysis method
With the help of the investment analysis it shall be demonstrated that the proposed project activity
is not economically or financially feasible without the revenue from the sale of VERs. Therefore,
the benchmark analysis shall be applied, as there is no alternative project activity for a comparison
of the attractiveness of an investment.
SUB-STEP 2b: Option III: Benchmark analysis
In order to evaluate the attractiveness of investment projects and compare them with possible
alternatives, the project IRR (Internal Rate of Return) shall be used. Here the project IRR is applied
as it is transparent in calculations and it leads to the following conclusion: the project needs carbon
credits, due to its low profitability.
According to the Tool, a benchmark can be derived from “Estimates of the cost of financing and
required return on capital (e.g. commercial lending rates and guarantees required for the country
and the type of project activity concerned), based on bankers views and private equity
investors/funds” (see Section 4.3.4, 38(b)).
There are no benchmarks specified by national authorities for hydropower projects in Turkey. Local
lending rates can be taken as the benchmark for the investment analysis.
State Planning Organisation publishes “Main Economic Indicators” on a monthly basis. As the
project is a mid-term investment (exceeding a year), lending rate for medium term investment has
been selected as the benchmark. The monthly lending rates for 2011 are given in the table below.
v3.2 20PROJECT DESCRIPTION: VCS Version 3
Table 6 Loan Interest Rates for Medium Term Investment Loans
Turkish Development Bank (TSKB) – interest rates for credits
Date Month Medium Term Investment Rate (%)
1 12.3
2 12.3
3 12.5
4 12.5
5 12.5
6 13.0
2011
7 13.0
8 13.0
9 13.0
10 16.0
11 16.0
12 16.0
Ref: http://ekutup.dpt.gov.tr/tg/index.asp?yayin=teg&yil=0&ay=0
Temel Ekonomik Göstergeler, 2014, 3rd quarter
7. Bolum, 13th Excel Sheet. (Please also see 28- IRR\13-faiz_orani.xls in order to reach to the same document
The investment decision was taken on 12-12-2011. Therefore, the published interest rate for
December 2011 is taken as the benchmark, which is 16.0%.
SUB-STEP 2c: Calculation and comparison of the IRR
In the 9th paragraph of the “Guidance on the Assessment of Investment Analysis”, 10 it is stated that:
“The cost of financing expenditures (i.e. loan repayments and interest) should not be included in
the calculation of project IRR.” Since the benchmark as identified in the Sub-step 2b is the
required/expected return on the project, the project IRR (before tax) of the project activity shall be
calculated for comparison.
The feasibility study prepared by Hidromak Mühendislik Müşavirlik A.Ş. in January 2011 and the
below IRR calculations both reveal the fact that the project is not financially attractive. Therefore,
carbon revenues are crucial for the project. The assumptions used for this analysis are outlined as
follows:
The financial analysis is performed with a 3 years construction period and a 20 year
operation period. Therefore includes the investments to be made by the project owner three
years, whereas the operational costs are applied along the lifetime of the project.
The project Internal Rate of Return (IRR) of the project cash flow has been calculated.
The depreciation period of machinery and equipment was assumed as 20 years, which is
in line with the real life conditions and a common assumption for machinery. Moreover, the
other fixed assets’ (buildings etc.) depreciation life is assumed as 50 years, which is in line
with the real life conditions and a common assumption for buildings.
The annual power generation figure is 71.101 GWh, as specified in the FSR as approved
by the State Hydraulic Works
A power price for the project is assumed to be 85 $/MWh (Please refer to the Revised
FSR pdf page 182) as it reflects a more realistic scenario than using the price under the
state guarantee which is 73 $/MWh.11
The project IRR (before tax) of Yalnızardıç Dam and Berat HEPP is calculated on the basis of
expected cash flows (investment, operating costs and revenues from electricity sale), as used in
10 Annex to http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-01-v6.0.0.pdf
11 Please refer to Turkish Renewable Energy Law No: 5346 amendment of December 2010.
v3.2 21PROJECT DESCRIPTION: VCS Version 3
the financial analysis for the feasibility assessment of the project. The parameters and values used
for the IRR calculation are available to DOE during validation. The resulting IRR for 20 years is
stated in the following table.
Table 7 Project IRR for project activity (before tax)
Period IRR
20 years 2.46%
Source: for calculation see the attached spreadsheet “/8-IRR/IRR_Ver02.xls”
Without adding any risk premium to the benchmark, which is 16.0%, the benchmark clearly exceeds
the calculated project IRR, rendering the project activity economically unattractive without VER
carbon credits.
SUB-STEP 2d: Sensitivity analysis
According Section 4.3.6 of the tool, a sensitivity analysis needs to be undertaken to demonstrate
the robustness of the conclusion that the project is economically unattractive.
While the main parameter determining the income of the project is the electricity sales price, a
variation of the main parameters of the financial model shall demonstrate the reliability of the IRR
calculation. Electricity price (EP) is varied following a conservative approach the range 70-100
$/MWh is taken into consideration. It is common practice in Turkey to sell renewable electricity on
the spot market, which used to have a price above the feed-in tariff of the RES law. It is, however,
not guaranteed and even prices below this feed-in tariff have been observed recently after
December 2009, when Turkey moved to an hourly pricing regime. Therefore, the sensitivity analysis
will show the possible impact of spot prices above and below the average expected price of 85
$/MWh.
In addition, to show the sensitivity of other key parameters, the investment cost and operating costs
are varied with +/- 20%. This shows what would happen if the investment costs or operating costs
would differ from the values as presented in the FSR.
The worst, base and best case results for each parameter variation is given in the next Table.
Table 8 Project IRR results for varied parameters (for other parameters 85 $/MWh Energy
Price is applied)
Parameter Electricity Price Investment Cost Operational cost
Variance 70 85 100 -20% 0 20% -20% 0% 20%
IRRs 0.37% 2.46% 4.31% 4.77% 2.46% 0.72% 2.70% 2.46% 2.22%
Source: for calculation see the attached spreadsheet “22-IRR/IRR_Ver03.xls
The sensitivity analysis confirms that the proposed project activity is unlikely to be economically
attractive without the revenues from VERs as even the maximum project IRR result for the best
case scenario (4.77%) is substantially below the benchmark, which is 16.0%.
v3.2 22PROJECT DESCRIPTION: VCS Version 3
Step 3 Barrier analysis
As the investment analysis concludes that the proposed project activity is unlikely to be the most
financially attractive option, the sub step 3 (Barrier Analysis) is optional and this is not considered
for the Yalnızardıç Dam and Berat HEPP project activity.
Step 4 Common Practice Analysis
As per “Tool for the Demonstration and Assessment of Additionality”, projects are considered
similar if they are in the same region and rely on the same technology, are of a similar scale, and
take place in a comparable environment with respect to regulatory framework, investment climate,
access to technology, access to finance, etc. According to the Guidelines on Common Practice
(version 02), common practice analysis is presented through the following 5 steps.
Common Practice tool step 1: Calculate applicable output range as +/- 50% of the capacity of the
proposed project activity:
As a hydropower project, the installed capacity is chosen as an appropriate proxy for “similar scale”.
The power generation capacity of 33.00 MW of the proposed project is selected as the design
capacity. Therefore, the range from 16.50 MW to 49.50 MW is considered as applicable capacity.
Common Practice tool step 2: Identify similar project (both CDM and non-CDM) which fulfil all of
the following conditions:
1. The projects are located in the applicable geographical area
2. The projects apply the same measure as the proposed project activity
3. The projects use the same energy source/fuel and feedstock as the proposed project
activity, if a technology switch measure is implemented by the proposed project activity
4. The plants in which the projects are implemented produce goods or services with
comparable quality, properties and application areas as the proposed project plants
5. The capacity or output of the projects is within the applicable capacity range as calculated
in step 1
6. The projects started commercial operation before the PDD is published for global
stakeholder consultation or before the start date of the proposed project activity, whichever
is earlier for the proposed project activity.
The applicable geographical area for the project activity is considered the Antalya water catchment
area in Turkey. This catchment largely falls in the Antalya province as illustrated in the below graph.
Figure Water catchments in Turkey
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