JCM Feasibility Study (FS) 2014 – Final Report

MOEJ/GEC JCM Feasibility Study (FS) 2014
Summary of the Final Report“Energy Saving for Irrigation Facility by Introducing
High-efficiency Pumps”(Implementing Entity: Nippon Koei Co., Ltd. and EBARA Corp.)
1．Overview of the Proposed JCM Project

Study partners

Project site
Category of
project

Japan
EBARA CORPORATION (EBARA)
To study for introducing high efficiency irrigation pumps
To prepare business plan for introducing high efficiency irrigationpump
Host country
EBARA VIETNAM PUMP COMPANY (EVPC)
To collect and supply data related to pumps in Vietnam such as
market share and operation test results
Hanoi city and Bac Ninh province, Vietnam
Energy Saving
This study focuses on two projects for introducing high efficiency pumps
in existing irrigation facilities managed by the Department of Agriculture
and Rural Development (DARD) in Hanoi city and Bac Ninh province inVietnam.
In the following, the summary of projects are indicated,

Description ofproject

Project 1:Me Linh area in Hanoi city
It aims to introduce high efficiency pumps produced by EBARA corp. in
the existing irrigation facilities (total 26pumps, 3,500m3/h, 75kW) and tosave energy. The irrigation facilities are managed by Me Linh water
management company under DARD in Hanoi city.
Project 2:Nam Duong area in Bac Ninh province
It aims to introduce high efficiency pumps produced by EBARA corp. in
the existing irrigation facility (total 8 pumps, 3,900m3/h, 90kW) and saveenergy in Gia Dao Pump Plant. The irrigation facility is managed by Nam
Duong water management company under DARD in Bac Ninh province.

Expected project
implementer

Initial investment

Annualmaintenance cost
Willingness toinvestment

Japan

EbaraCorp. (EBARA)

Host country

Me Linh water management company
Nam Duong water management company

Project 1
JPY169,970,000
Project 2
JPY 52,300,000
Project 1
JPY 14,930,000
Project 2
JPY 6,940,000
Yes

Date ofgroundbreaking

Project 1:
Project 2:

July, 2015
July, 2015

Construction
periodApproximately 8-12
monthsDate of projectcommencement

Project 1:
Project 2:

June, 2016
June, 2016

JCM Feasibility Study (FS) 2014 – Final Report

Project 1
This project will cost JPY 169,970,000 for the initial investment and JPY
14,930,000 for the maintenance cost. It is reserved in the budget of DARD
in Hanoi city that manages Me Linh water management company.
Me Linh water management company manages and supervises two
renewal projects at pump stations such as Thuong Le II and Tam Bao.
The company which introduces pumps is selected by tender.
Financial plan ofproject

Project 2This project will cost JPY 52,300,000 for the initial investment and JPY
6,940,000 for the maintenance cost. It is reserved in the budget of DARD
in Bac Ninh province that manages Nam Duong water managementcompany. It is plans to initiate the operation of the renewal pumps from2016.
Nam Duong water management company will manage and supervise
both construction plan and operation plan. Originally, pump facilities are
selected by tender. However, it is under discussion to apply optional
contract for installation of high efficiency pumps that achieves energy
saving.
Project 1
100 (tCO2/year)
26 pumps will be installed to 2 facilities managed by Me Linh water
management company.

GHG emission
reductions

Project 2
53 (tCO2/year)
8 pumps will be installed to 1 facility managed by Nam Duong water
management company.

JCM Feasibility Study (FS) 2014 – Final Report

2. Study Contents(1) Project development and implementation
1) Project planning
Project 1: Me Linh area in Hanoi city
In the following, the members for implementing the renewal pump project are indicated. Me Linh
water management company which manages and operates the target irrigation facilities has
experiences to manage approximately 20 irrigation pump facilities in Hanoi city.
CountryJapan

VietnamRole and Responsibilities

Study Implementation
SchemeEBARA Corp.



Nippon Koei



Me Linh water
management company



EBARA Vietnam Pump
CompanyTo review and propose optimal pump capacity
To sell optimal pump for the irrigation pumps
To manage TPE validation for JCM methodology and
PDD registration
To prepare JCM methodology and PDD for
registration
To select pump contractor by tender and install highefficiency pumps
To support monitoring after installation of pumps
To cooperate validation for JCM methodology and
PDD registration
To design and produce high efficiency pumps
To conduct monitoring and maintenance for newly
installed pumps by making contract with Me Linh
water management company
To support validation for JCM methodology and PDD
registration< Profitability evaluation>
This project aims to save energy and GHG emission by installation of 26 pumps to 2 irrigation anddrainage facilities which are managed by Me Linh water management company. This project costs JPY
169,970,000 as the initial investment and JPY 14,930,000 as the maintenance cost. It is reserved in
the budget of DARD in Hanoi city that manages Me Linh water management company. By renewalof pumps, it is expected to reduce approximately 36,000kWh per year (per unit) as electricity
consumption by saving energy.
< Initial investment, Maintenance, MRV cost>
The budget for the project will be prepared by DARD which manages the irrigation pump facilities.
The total cost for maintenance, electricity consumption, and MRV is approximately JPY 15,200 per
year. The cost is prepared by Me Linh water management company. In the case EBARA installs thehigh efficiency pumps, EVPC will be a contractor for MRV from Water management company. It isallowed to make an optional contract in the case of the entrusted services under USD 50,000 cost.
Cost items
Initial Investment
Maintenance and management
Cost for electricity consumption
MRV

AmountJPY 169,970,000
JPY 1,180,000 /year
JPY 13,760,000 /year
JPY 283,000 /year

Investor
Me Linh water management company
Me Linh water management company
Me Linh water management company
Me Linh water management company<Risk analysis>
Originally, the constructor is selected by tender in public works. In the case of Hanoi city, it isdifficult to make optional contract since it has never been conducted. The following risk analysis isconsidered when the project is conducted through the public tender process.

JCM Feasibility Study (FS) 2014 – Final Report

Issues for consideration
Issue1:
Need for Adjustment of schedule for publictender to the subsidiary project
Issue 2:
Need for management in the case EBARA
win a bit or not for installation of pumps
Issue 3:
Price setting for tenderCountermeasures
It is under discussion with DARD in Hanoi city for thetender schedule.
It is to discuss with Japanese side for policies depends
on the result of tenders.
Price setting depends on timing of the tender. If thetender is before the subsidiary project, it is not toconsider the subsidiary fund. On the other hand, if thetender is after the subsidiary project, it is necessary toconsider how to set the price for bidding.

Project 2: Nam Duong area in Bac Ninh province
In the following, the members for implementing the renewal pump project are indicated.
CountryJapan

VietnamStudy Implementation Scheme

Role and Responsibilities

EBARA corp.



Nippon Koei

Nam Duong water
management company



EBARA Vietnam Pump
CompanyTo review and propose optimal pump capacity
To sell optimal pump for the irrigation pumps
To manage TPE validation for JCM methodology
and PDD registration
To prepare JCM methodology and PDD for
registration
To select pump contractor by tender and install highefficiency pumps
To support monitoring after installation of pumps
To cooperate validation for JCM methodology and
PDD registration
To design and produce high efficiency pumps
To conduct monitoring and maintenance for newly
installed pumps by making contract with Me Linh
water management company
To support validation for JCM methodology and
PDD registration<Profitability evaluation>
This project aims to save energy and GHG emission by installation of 8 pumps to an irrigation anddrainage facility in Bac Ninh province in the suburbs of Hanoi city. The project costs JPY 52,300,000
as initial investment and JPY 6,940,000 as maintenance cost. it is reserved in the budget of DARD
in Bac Ninh province that manages Nam Duong water management company. By installation ofhigh efficiency pumps, it contributes to reduce approximately 610,000kWh per year (per unit) as
electricity consumption by saving energy.

<Initial investment, Maintenance, MRV cost>
The total cost for maintenance, electricity consumption, and MRV is approximately JPY 7,200,000
and Nam Duong water management company bears the cost. The water management company
pays JPY 283,000/year as MRV cost to entrusted services. In the case that EBARA installs the highefficiency pumps, EVPC is supposed to make a contract for MRV supporting work with water
management company since optional contract is allowed in the case that the contract cost is underapproximately USD 95,000.

JCM Feasibility Study (FS) 2014 – Final Report

Cost items
Initial investment
Maintenance and management
Electricity consumption
MRV

AmountJPY 52,300,000
JPY 590,000 /year
JPY 6,350,000 /year
JPY 283,000 /.year

Investor
Nam Duong water management company
Nam Duong water management company
Nam Duong water management company
Nam Duong water management company<Risk analysis>
Originally, as for installation of equipments, the contractor is selected by tender in public works. As
for renewal pump project in Bac Ninh province, optional contract is under consideration with thecondition of case for installation of high efficiency pump which contributes to save energy. The risk
analysis for optional contract is indicated in the following table.
Issues for consideration
Consideration for timing between financial subsidy
and optional contract

Countermeasures
It is under discussion with DARD in Bac Ninhprovince for schedule for initiation of the project
and timing considering subsidiary project.

2) Permits for the project development and implementation
This study focuses on the project for renewal irrigation and drainage pumps in the existing facility.
Therefore, it is not necessary to get approval and authorization for implementation of this project. Also
it is not planned to install other equipment and facilities that needs for approval and authorization
before and after installation of high efficiency pumps.

3) Advantage of Japanese technology
The target technology of the project is high efficiency irrigation pump produced by EBARA corp. As forshare of irrigation pumps by type which are installed in northern Vietnam, the type for 1,000 m3/h isapproximately 50%, 4,000 m3/h, 2,500 m3/h, and 800 m3/h are approximately 10 % in each as the share.
The Advantage of Japanese technology is that EBARA corp. can supply high efficiency pump withcustomized design considering customer’s requirement such as angle of pump wings comparing to theother companies. Also, EBARA corp. can provide customer care service since it has the local company
and factory which are set in Hanoi and Hai Duong area. However, small scale pump under 1,000 m3/h
which is the mainstream in north of Vietnam is low unit price, so it costs high expenses for customization
relatively. The range of pumps which EBARA can pull its best strength should be over the middle size ofpumps, so the target pumps for the project is set as scale of around 3,000 m3/h～4,000 m3/h in thesuburbs of Hanoi city.
The hearing survey was conducted to collect information for the pump market in northern Vietnam. As aresult of the survey, it turned out that EBARA’s pump get 10 percent share and, Company A which is aVietnamese company, occupies 70～80 percent share. It is clear that Company A is the major pumpcompany in northern Vietnam. Another pump manufacturer is Company B which is also a Vietnamesecompany and produces irrigation pumps but less than 5 percent share. Some foreign companies (e.g.
American, Chinese and Korean company) have low market share. Therefore, competitive production innorthern Vietnam is the pump produced by the two Vietnamese companies. In the following, comparisonof spec, efficiency and cost in each company are described.

High Efficiency Pump

Impeller

JCM Feasibility Study (FS) 2014 – Final Report

Type
Share
Price ( Rate)
Efficiency

EBARA
Horizontal shaft and diagonal
flow
Approximately 10 %100
77.5～82.5 %Company A
Horizontal shaft

Company B
Horizontal shaft

70～80 %

Less than 5 %60
67.0～74.0 %80
57.4～79.6 %Reference: Prepared by the study team based on hearing and obtained information from each companies※1: Comparison to price in each company base in 100, EBARA※2: Mention about efficiency range in the case of that pump output is within 3,000 m3/h

As for price, Company A is 80 and Company B is 60 compared to EBARA’s pump which is set as 100.
This data indicates that EBARA’s pump is the most expensive among the three companies. Japanese
product is better in technology but more expensive than the other product made by Vietnamesecompanies. Therefore the situation is that Japanese company cannot get large share.

4) MRV structureThis project plans to conduct MRV for the installation of pumps to irrigation and drainage facilities. The
water management companies which will be in charge of the project agreed with some duties formonitoring (e.g. collection, arrangements, storage, and submission of the monitoring data). EBARA willcomply these data with EVPC.
Measurement instruments for monitoring will be updated from analog ones to digital ones. EBARA willoffer on-the-job training how to storage the monitoring records.

JCM Feasibility Study (FS) 2014 – Final ReportJapan

Vietnam
Water Management Company• Monitoring of the electric energy as aroutine practice• Conclusion of a contract with EVPC for
the monitoring support

Service Contract
Supervise

Ebara Corporation• Supervision of the monitoring
implementation and reporting as
the lead company• Submission of the monitoring
report once per year

ReportEbara Vietnam Pump Company(EVPC)• Supporting the monitoring work andwriting the monitoring report as per thecontract with Water Management
Company

Figure 1 MRV Implementation Structure5) Environmental integrity and Sustainable development in host country
This project aims to renew existing pumps to high efficiency pumps in the irrigation and drainage pumpfacility. It is not the project for constructing new facilities, so it is not necessary to get new approval
and authorization about environmental impact assessment referring government ordinance (Decree
No. 80/2006/ND-CP).
Moreover, the project contributeｓ to reduce environmental load as follows.
[i] To use paints with low heavy metals[ii] To reuse casting sand made from pump production.

As the results of the hearing surveys, the major pump manufacturers in Vietnam do not takemeasurements for reduction of environmental load in the manufacturing process. Therefore, thediffusion of EBARA’s pumps can contribute to reduce the environmental load in Vietnam.
Contribution of sustainability
development
1) Stable performance of highefficiency pump2) Quick maintenance system
for high efficiency pump

Description
It is expected to reduce flooding caused by outbreak of pumps inthe irrigation facility because the advantage of EBARA’s pump is
tolerant and low failure rate.
The maintenance system which EBARA provide in northern
Vietnam is systematized utilizing EVPC’s staff and technology. If
some trouble are occur, EVPC can correspond these trouble
quickly. It is expected for good use of the pump due to themaintenance system.

6) Toward project realization (planned schedule and possible obstacles to be
overcome)
The following schedule for implementing the project is considered.
Project 1: Me Linh area in Hanoi city
The target project in Me Linh area in Hanoi city is managed by DARD in Hanoi city. The major issue toapply for JCM subsidiary project is that this is a public project which is usually conducted by tender
process. It is under discussion with DARD in Hanoi city how and when to conduct the tender considering
JCM subsidiary project.
In the following, the tentative schedule of JCM subsidiary project is planned in case of applying JCM

JCM Feasibility Study (FS) 2014 – Final Report

scheme in April.
PeriodJanuary - March 2015

April 2015
July 2015

Description
・Adjustment of schedule for starting of the
project in July・Final check whether the tender is necessaryof not.
・Apply for the installation subsidiary project・Contract for the implementation

July - 2015
May 2016
June 2016

・Design of equipment and manufacture
・Construction of equipment and trial running・Operation

Implementer
Department of agriculture in
Hanoi city

Department of agriculture in
Hanoi city

Project 2: Nam Duong area in Bac Ninh province
The target project in Nam Duong area in Bac Ninh province is managed by DARD in Bac Ninh Province.
The project is also a public project and needs tender process to install high efficiency pumps. However, it
is under consideration to conduct the project with optional contract by putting the specification on thecontract such as the renewal project is to install high efficiency pumps. Currently it is under discussion
how and when the optional process can be preceded.
In the following, the tentative schedule of JCM subsidiary project is planned in case of applying JCM
scheme in April.
PeriodJanuary - March 2015

April 2015
July 2015
July - 2015
May 2016
June 2016

Description
・Adjustment of schedule for starting of the
project in July・Adjustment of schedule forstarting of the project in July
・Consideration about extraordinary private
contract・Apply for the installation subsidiary project・Contract for the implementation

Implementer
Department of agriculture in Bac
Ninh province

Department of agriculture in Bac
Ninh province

・Design of equipment and manufacture
・Construction of equipment and trial
running・Operation(2) JCM methodology development
1) Eligibility criteria
Following eligibility criteria are considered for JCM methodology.
Criterion 1
Criterion 2
Criterion 3
Criterion 4

Project pump is installed to irrigation and drainage facility which uses middle size pump.
Project pump is a pump with a efficiency of more than80% within a specified range offlow.
Pump product maker has testing facility for product efficiency in its factory and pumpsystem engineering facility for after-care-service.
Project pump uses environmental friendly paints such as paints with 0.1 % or less lead,
cadmium and tar during the production process.

JCM Feasibility Study (FS) 2014 – Final Report

In the following table, the reasons for selection of criteria are described.
Matter【Criterion 1】
Project pump is installed toirrigation and drainage facility
which uses middle size pump.

【Criterion 2】
Project pump is a pump with aefficiency of more than80%
within a specified range of flow.
【Criterion 3】
Pump product maker has testing
facility for product efficiency in its
factory and pump systemengineering
facility
forafter-care-service.
【Criterion 4】
Projectpump
uses
environmental friendly paints
such as paints with 0.1 % or lesslead, cadmium and tar during the
production process.

Selecting reasons
The scale, efficiency and types of pump depend on use and types ofplants. The high efficiency pump which is installed in this project isirrigation and drainage pump. And the project focus on a plant which
use the middle scale (3,000～4,000m3/h) and Horizontal shaft pump.
This new method is applied the installed irrigation pump to thisproject.
In generally, the pump made from Japanese company is highefficiency and high energy saving the installed pump should be highefficiency for eligibility of the JCM project. The efficiency rate isdefined over 80% by hearing and data collection from pump
manufacturing company and water management company which
manages irrigation and drainage plants.
EBARA Cop. and HPMC have factory in Vietnam and manufactureand sale the pump by themselves. The equipment for performance
test needs to grasp the pump performance in clearly before supplies.
The pump system engineering function needs to implement thediagnosis of the existing pump equipment for after services andmaking a plan for update high efficiency pump. Therefore, matter 3 isdecided as one of the eligibility criteria.
The EBARA pump which will be installed in the project ismanufactured in EBARA own factory in Vietnam. EBARA uses
environmental friendly paints such as paints with 0.1 % or less lead,
cadmium and tar during the production process. Therefore, matter 4
is decided as one of the eligibility criteria.

2) Calculation of GHG emissions (including reference and project emissions)
In the following, the methods of reference and project emissions are described.
1. Identification of the reference scenario
The reference scenario for the JCM methodology is defined that “If the project is not implemented,
the newest pump produced by the largest company will be applied.”
The major pump companies are three companies, such as two Vietnamese companies, EBARA innorthern Vietnam. Company A is established in 1960 and a leading company in Vietnamese pumpmarket since that time. EBARA entered into the Vietnamese pump market from 2000. Company B
focuses on researches more than production of the pump, so the sale business is dealt by theagency.
There are no official data which show the market share for pumps. Therefore, hearing surveys
were conducted to collect information of the market share with water management companies
which manage irrigation and drainage facilities, and pump manufacturers. As a result of the surveys,
it is turned out that EBARA has 10 percent of the market share for middle-scale pumps, whereas
Company A has 70～80 percent and Company B has less than 5 percent.
Company A which was established in 1960’s has monopolized the market share for pumps by taking
over the technique from Soviet Union. Considering this point, it is defined conservatively that thereference scenario is to install Company A’s newest products which require lower initial investment costs
than Japanese products do.

JCM Feasibility Study (FS) 2014 – Final Report

2. Calculation of reference emissions

𝐑𝐄i,p ＝ ��𝐄𝐂𝐏𝐉,𝐢,𝐩 × �𝛈𝐏𝐉,𝐢 ÷ 𝛈𝐑𝐄,𝐢 � × 𝐄𝐅𝐞𝐥𝐞𝐜 �factor for consumed electricity𝐢 [tCO2/MWh]REi,p: Reference emissions during the period p [tCO2/p]
ECPJ,i,p : Power consumption of project pump i during the period p [MWh/p]
ηPJ,i: Pump efficiency of project pump i [-]ηRE,i: Pump efficiency of reference pump i [-]EFelec : CO2 emission factor for consumed electricity [tCO2/MWh]3.

Calculation of project emissions

𝐏𝐄i,p = ��𝐄𝐂𝐏𝐉,𝐢,𝐩 × 𝐄𝐅𝐞𝐥𝐞𝐜 �𝐢PEi,p: Project emissions during the period p [tCO2/p]
ECPJ,i,p : Power consumption of project pump i during the period p [MWh/p]
EFelec : CO2 emission factor for consumed electricity [tCO2/MWh]
4. Calculation of emissions reductions

ER p
REi,p
PEi,p

𝐄𝐑 𝐩 = 𝐑𝐄i,p − 𝐏𝐄i.p: Emission reductions during the period p [tCO2/p]: Reference emissions during the period p [tCO2/p]: Project emissions during the period p [tCO2/p]

3) Data and parameters fixed ex ante
The JCM methodology of this project uses the default values as follows for calculation of reference
emissions and project emissions.
(a) CO2 emission factor for consumed electricity (EFelec) [tCO2/MWh]
Grid emission coefficient is set by Ministry of Natural Resources and Environment in Vietnam. The
newest value is 0.5408. The value will be changed when the Grid emission coefficient is updated.

(b) Pump efficiency of reference pump I (ηRE,i) [-]Pump efficiency of reference is calculated by the ratio of water power to reach shaft power that the
motor reach to pump shaft. Pump efficiency of reference did not appear in the maker catalog.
Therefore, the pump efficiency of reference is set by results of performance test and performancedate from the maker.

(c) Pump efficiency of project pump I (ηPJ,i) [-]Pump efficiency of project pump is set to fulfill the eligibility criteria.
More conservative date is selected as checking the following data.
i) The spec data which the pump maker (or the agency) supplies into the plants when the pumpmaker prepare the estimation.
ii) The performance test data which is attached when the pump is supplies from the factory.