JCM_MN_F_PDD_ver03.0

Joint Crediting Mechanism Project Design Document Form
A. Project description
A.1. Title of the JCM project
10MW Solar Power Project in Darkhan City
A.2. General description of project and applied technologies and/or measures
The Project involves installation of a large-scale solar power plant with the generating capacityof 10MW in Darkhan City, Mongolia. The project is implemented by Solar Power International
LLC, a Mongolian company utilizing the crystalline silicon photovoltaic (PV) modules of Sharp
Corporation of Japan (ND-AF310). Sharp's PV modules are well known for high durability,
adhering to the company standard which is more stringent than Japan Industrial Standard orInternational Electrotechnical Commission standards.
The electricity produced by the Project is supplied to the Central Energy System of Mongolia
displacing electricity generation by fossil-fuel based power plants, contributing to greenhousegas emissions reduction in Mongolia.

Figure 1: Location and outline of the Project
A.3. Location of project, including coordinates
CountryMongolia
1

JCM_MN_F_PDD_ver03.0

Region/State/Province etc.:

Darkhan-Uul Province

City/Town/Community etc:

Darkhan City
N49° 24'07.24"
E105°56'41.78"

Latitude, longitude

A.4. Name of project participants
Mongolia

Solar Power International LLC

Japan

Sharp Corporation

A.5. Duration
Starting date of project operation

01/01/2017

Expected operational lifetime of project

17 years

A.6. Contribution from Japan
The proposed project was partially supported by the Ministry of the Environment, Japan(MOEJ) through the Financing Programme for JCM Model projects, which provided financial
support of less than half of the initial investment for the projects in order to acquire JCM
credits. Further, implementation of the proposed project promotes technology transfer of lowcarbon technologies in Mongolia. Through the financing programme by MOEJ, the green-fieldstate-of-the-art large scale solar power plant has been installed. Operation of the solar power
plant is monitored during the project operation. Throughout various stages of project
implementation including project design, construction, scheduling, installation, Sharp
Corporation has provided local operators with required training and know-how transfer and isalso expected to do so continuously for operation and maintenance phases.

B. Application of an approved methodology(ies)B.1. Selection of methodology(ies)
Selected approved methodology No.

MN_AM003

Version number

Ver02.0

B.2. Explanation of how the project meets eligibility criteria of the approved methodology
Eligibility

Descriptions specified in thecriteria

methodology

Criterion 1

Project information

The project newly installs solar PV The project installs 10MW green-fieldsystem(s).

solar power plant in Darkhan City.
2

JCM_MN_F_PDD_ver03.0

Criterion 2

ThePV

modules

obtainedacertification of design qualifications The PV modules installed in the project(IEC 61215, IEC 61646 or IEC have been certified for IEC 61215, IEC61730-1 and IEC 61730-2).
62108) and safety qualification(IEC 61730-1 and IEC 61730-2).
Criterion 3

The equipment used to monitor

Electricity meter and pyranometer have
output power of the solar PV been installed at the project site tosystem(s) and irradiance is installed monitor output power and irradiancerespectively.
at the project site.

C. Calculation of emission reductions
C.1. All emission sources and their associated greenhouse gases relevant to the JCM project
Reference emissions
Emission sources

GHG type

Consumption of grid electricity

CO2
Project emissions

Emission sources

GHG type

Generation of electricity from the solar PV system(s)3N/AJCM_MN_F_PDD_ver03.0

C.2. Figure of all emission sources and monitoring points relevant to the JCM projectNote: "Inverter" refers to the location of inverter houses. The actual number of inverters installed in the project is 16.

Figure 2: Monitoring point
C.3. Estimated emissions reductions in each year
YearEstimated

Reference Estimatedemissions (tCO2e)

Project EstimatedEmissions (tCO2e)

Emission

Reductions (tCO2e)

201711,221.0

0.0

11,221

2018

11,221.0

0.0

11,221

2019

11,221.0

0.0

11,221

2020

11,221.0

0.0

11,2212021

11,221.0

0.0

11,2212022

11,221.0

0.0

11,2212023

11,221.0

0.0

11,2212024

11,221.0

0.0

11,2212025

11,221.0

0.0

11,2212026

11,221.0

0.0

11,2212027

11,221.0

0.0

11,2212028

11,221.0

0.0

11,2212029

11,221.0

0.0

11,2212030

11,221.0

0.0

11,221

4

JCM_MN_F_PDD_ver03.0

Total

0.0

157,094.0

157,094(tCO2e)D. Environmental impact assessment
Legal requirement of environmental impact assessment for Yes,
the proposed project

under

theEnvironmentalLaw

onImpact

Assessment of Mongolia, theProject is required to undergoenvironmental

impactassessment, which was carriedout in 2015.

E. Local stakeholder consultation
E.1. Solicitation of comments from local stakeholders
The major stakeholders of the proposed JCM project have been identified by the project
participants as representatives from central and local government departments as well as utility
company. Invitation letters were sent to the stakeholders to attend the stakeholder meeting.
The stakeholder meeting was held as follows to explain about the Project and solicit theircomments.
[Meeting outline]
Date and Time: 12 December 2016, 10:00-13:00Venue: Ulaanbaatr Hotel, Sukhbaatar Square 14, Ulaanbaatar 14192, Mongolia

Attendees (Total 27 representing the following organizations):-Darkhan Provincial Government-Khongor District Governer's office-Ministry of Energy of Mongolia-Energy Regulatory Commission of Mongolia-National Dispatch Center-National Transmission Network Company-Ministry of Environment and Tourism (JCM Secretariat)-National University of Mongolia-Energy Economics Institute-MNFB-VTC Co Ltd-Private companies (energy and construction)5

JCM_MN_F_PDD_ver03.0[Meeting agenda]

Opening address

Opening remarks

H.E. Mr. T. Gantulga Vice Minister, Ministry of Energy
Mr. Tatsuya Sato, Deputy General Manager, Energy Solutions
Business Unit, Sharp Corporation

Introduction of the JCM Ms. Kikuko Shinchi, Senior Consultant, Mitsubishi UFJ Morgan
SchemeStanley Securities (MUMSS)

Introduction of the JCM Mr. Mandalbayar Baldan, General Director, Solar PowerprojectInternational LLC (SPI)

Q and A session
Closing remark

Mr. Enebish Namjil, Director, Solar Power International LLC (SPI)[Conclusion]
In general, the project was received positively, and many stakeholders showed theirappreciation of the JCM scheme and commended the project participants for bringing theMongolia's first mega-solar project to completion. The received comments from the local
stakeholders, along with the responses/action to the comments, are listed in the following
section.

E.2. Summary of comments received and their consideration
Stakeholders

Comments received

Consideration of comments
received

Department of thePlease explain what electricity

There is no generation during

National Dispatch Center

generation means for night

the night time by Solar power

time as mentioned in SPI'splant.

presentation.
National University of(1) Is the power purchase(1) PPA is not signed by ERCMongolia, School ofagreement (PPA) already(PPA is signed with National

Engineering and Applied

signed by Energy Regulatory

Transmission Network6

JCM_MN_F_PDD_ver03.0

SciencesCommission?

Company and National(2) What is the payback

Dispatching Centre).

period?

(2) The payback period is 12years.

Khongor District

Can you please explain why

MUMSS uses the CO2 emission

the CO2 emission factor

factor of the applied

mentioned in MUMSS' s

methodology approved by thepresentation and SPI's

Joint Committee while SPI uses

presentation are different?

Mongolian government's
official CO2 grid emission
factor.

National University of(1) Is it correct to understand(1)Yes, it is correct. The reason

Mongoliathat the grid CO2 emissionis that in the JCM, afactor of the JCM

methodology takes into accountmethodology is much lower

technology improvement on acompared to the official

conservative basis to determine

value?

reference emissions.

(2) Please explain how(2) The degradation rate of 0.7

degradation rate of PV

is the value provided by themodules, 0.7 was determined.

manufacturer guarantees.

Was it based on Mongolian

Based on experience, humidity

experience taking into

has the greatest negative impact

consideration local climate

on module degradation.

conditions or was it based on

Therefore, it is believed module

Japanese data?

degradation will not be a big
issue in Mongolia.

Ministry of Energy of(1) What is the project(1) The duration of the project

Mongolia

operation duration?

based on the power purchase(2) Will the electricity tariff beagreement (PPA) is 25 years.

re-negotiated after payback?

The duration required totransfer JCM credits to theJapanese government is 17years. In general, the PVmodules can be used for as longas 40 years.
(2) According to PPA, the same7

JCM_MN_F_PDD_ver03.0

tariff will be applied even after
the payback. However, it ispossible that the tariff will be
re-negotiated after the
expiration of the PPA.
Darkhan 220/110kV

The road condition between

The project owners will repair

Substation

the project site and substationand improve the road condition

is not good. It would beleading up to substation.

appreciated if project
participants can improve theroad.
National University ofDo the project participants

Currently, the cost of a battery

Mongolia

have a plan to install batteries

is too high to gain economic

to store electricity and use it

merit. If the Mongolian

for the peak time at night?

government introduces a policy
to increase the electricity tariffof night time, making batteries
economical, we might consider
it.

Energy Economics Institute

It is appreciated that the(No further action required)project participants developed
Mongolia's first mega-solar
project. We would like tocooperate future research andstudies.
Tenuun Gerel Construction

Can PV be installed in home

Yes, it is one of the eligible

company

roof-tops in JCM projects? Itechnologies for the JCM , but

believe such project will help

so far, the only roof-top PV

combat smog issue in the city.

cases are those involving
factories, shopping malls, etc.

F. References
Evaluation result of environmental impact detailed assessment report issued by Ministry ofEnvironment, Green Development and Tourism of Mongolia
Reference lists to support descriptions in the PDD, if any.
8JCM_MN_F_PDD_ver03.0

Annex
n/a

Revision history of PDD
VersionDateContents revised

01.0

08/02/2017

First edition02.0

28/02/2017

Second edition
Updated based on validation protocol

03.0

13/03/2017

Third edition
Updated based on further comments

9