CDM – Executive Board Page
PROJECT DESIGN DOCUMENT FORM
FOR CDM PROJECT ACTIVITIES (F-CDM-PDD)
PROJECT DESIGN DOCUMENT (PDD)
SECTION A.Description of project activity
A.1.Purpose and general description of project activity
Seferihisar Enerji A.Ş. (hereafter referred to as “Seferihisar”) is investing into a new Wind Power project called Seferihisar Wind Power Project (hereafter referred to as the “Project” or “Seferihisar WPP”), which involves installation and operation of 16 MWe and 17.5 MWm wind power plant. The licence of the project was issued by Energy Market Regulatory Authority (EMRA) in December 25 of 2008.
An estimated electricity net generation of 47,400 MWh per year by the efficient utilization of the available wind energy by project activity will replace the grid electricity, which is constituted of different fuel sources, mainly fossil fuels. The electricity produced by project activity will result in a total emission reduction of 27,650 29,397 tonnes of CO2e. Moreover, project activity will contribute further dissemination of wind energy and extension of national power generation. It is expected that the generation of electricity will start as of Q2 2013 and will have an operational life of 20 years.
Seferihisar WPP is a grid-connected renewable power generation project activity that install a new wind power plant at a site where no renewable power plant was operated prior to the implementation of the project activity, thus project is a Greenfield plant.
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 wind farms 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:
As the project developer, Seferihisar believes that efficient utilization of all kinds of natural resources with a harmony coupled with responsible environmental considerations is vital for sustainable development of Turkey and the World. This has been a guiding factor for the shareholders towards the concept of designation and installation of a wind power 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:
The project activities will replace the grid electricity, which is constituted of different fuel sources causing greenhouse gas emissions. By replacing in the consumption of these fuels, it contributes to 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 the greenhouse gas emissions (CO2, CH4) and other pollutants (SOX, NOX, particulate matters) occurring from extraction, processing, transportation and burning of fossil-fuels for power generation connected to the national grid.
Firstly, the project will help to accelerate the growth of the wind 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 wind power generations. It will also assist to reduce Turkey’s increasing energy deficit and diversify the electricity generation mix while reducing import dependency, especially natural gas. Importantly, rural development will be maintained in the areas around the project site by providing infrastructural investments to these remote villages.
Local employment will be enhanced by all project activities during construction and operation of wind farm. 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 preferentially be sourced locally. Moreover as contribution of the project to welfare of the region, the quality of the electricity consumed in the region will be increased by local electricity production, which also contributes decreasing of distribution losses.
Implementation of the proposed project will contribute to wider deployment of wind power technology in local and national level. It will demonstrate the viability of larger grid connected wind farms, 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 technology.
A.2.Location of project activity
The host country is Republic of Turkey.
Project area is in Aegean region, İzmir province.
The project is close to Seferihisar town.
Location of the project is given below in the
The project site is located about 30 km away from İzmir. The project will be situated on the hills between Düzce and Sığacık villages in the Seferihisar region. The turbine towers will be built in a 3-km diameter surrounded area, placed approximately 200-400 m apart. The closest settlement to the project site is Sığacık Village which is located to the south east of the wind farm. The distance between the village and the closest wind turbine will be approximately 2 km.
Map : Location of SEFERİHİSAR Wind Power Plant Project
Table : Geographical coordinates of the wind turbines of the project activity1
A.3.Technologies and/or measures
According to the Generation License, 7 wind turbines with unit capacity of 2500 kW were selected for the project. Nordex is decided as equipment provider due to the outstanding features of its product regarding safety factors, simple durable design for low maintenance and long life operation, high efficiency, and also for fine visual appearance. The key parameters about the technical design of the selected model Nordex N100 turbines are listed below in Table . Electricity transfer from turbine to transmission line can be seen in Picture 1.
Table : Technical specifications of Nordex N100 turbines2
Picture 1: Electricity transmission from turbine to transmission line
The project activity will achieve emission reductions by avoiding CO2 emissions from the business-as-usual scenario electricity generation produced by mainly fossil fuel-fired power plants within the Turkish national grid (
) Total emission reduction over the 7 year crediting period is expected to reach 196,700193,550 tCO2e with the assumed total net electricity generation of 47,400 MWh per year (for details see B.2.)
Figure : Share of Sources in Installed Capacity 20113
Figure : Share of Sources in Electricity Generation 20114
Although Turkey has a very good wind resource, substantial space, a reasonably good electrical infrastructure and an approaching shortage of electricity; it uses negligible capacity (less than 2%) of its onshore potential, which is estimated as 53,000 MW by Ministry of Energy and Natural Resources (MENR).5 Lack of attractive incentives and tax advantages, limited grid access and restricted turbine supply constitutes the major barriers in front of the wind energy.
Renewable energy law, enacted in 2005, which had amendments in end of 2010 regarding feed-in tariffs, stipulates a purchase obligation by the retail companies for 10 years with a purchase price 7.3 USDc/kWh (~5.5 €c/kWh) for the power plants put in operation by end of 20156. This tariff is much below the average remuneration in the leading wind markets and does not constitute a sufficient incentive for investments in little experienced wind energy sector of Turkey. The revenues calculated according to these regulations are considered in the investment planning of the projects and does not lead to returns that let the project be profitable or attractive for capital investors and lenders.
These numbers and figures show the contribution of a wind power project like SEFERİHİSAR WPP to the development of environmental friendly electricity generation instead of above described Turkish mix of hydroelectric and fossil fuelled power plants, which are better known and financially more attractive from an investor’s point of view. The emission reductions would not occur in the absence of the proposed project activity because of various real and perceived risks that impede the provision of financing.
SEFERİHİSAR WPP, as a large wind power plant project, will serve as a perfect project to demonstrate long-term potential of wind energy as a means to efficiently reducing GHG emissions as well as to diversifying and increasing security of the local energy supply and contributing to a sustainable development. Wind driven turbines will rotate in generators and electricity generated here will be transferred to the grid for consumer without any greenhouse gas emissions. The Gold Standard certification shall help to realize this seminal technology by providing an adequate compensation for the lacking financial incentives in the Turkish renewable energy market.
Generation of emission reduction and by the way crediting period will start with the first day of documented electricity supply to the national grid. The first 7-year crediting period is expected to be from June 2014 to June 2021 after the completion of commissioning. Applying the approved methodology to the project (detailed in the Section B) annual average amount of 27,650 29,397 tCO2e emission reductions is estimated to be achieved by producing 47,400 MWh/year electricity. In each year the amount of VERs actually generated by the project will vary depending on the metered net electricity supplied to the grid, but totally 193,550205,779 tCO2e emission reductions is expected over the period of 7 years and distribution of minimum quantity versus years is listed in Table .
Table : Estimated annual emission reductions of the project over the crediting period.