JCM_VN_F_Val_Rep_ver01.0

JCM Validation Report Form
A. Summary of validation
A.1. General Information
Title of the projectIntroductionofamorphoushighefficiency

transformers in power distribution systems in thesouthern part of Viet Nam
Reference number

VN004

Third-party entity (TPE)

Lloyd's Register Quality Assurance Limited(LRQA)

Project participant contracting the TPE

YUKO-KEISO Co., Ltd.

Date of completion of this report

22/03/2016

A.2 Conclusion of validation
Overall validation opinion

Positive
Negative

A.3. Overview of final validation conclusion
Only when all of the checkboxes are checked, overall validation opinion is positive.
Item
Validation requirements
No CAR or CL
remaining
Project design The TPE determines whether the PDD was completed
document form
using the latest version of the PDD forms appropriate to thetype of project and drafted in line with the Guidelines forDeveloping the Joint Crediting Mechanism (JCM) Project
Design Document, Monitoring Plan and Monitoring
Report.
Project
The description of the proposed JCM project in the PDD is
description
accurate, complete, and provides comprehension of the
proposed JCM project.
Application of The project is eligible for applying applied methodology
approved JCM and that the applied version is valid at the time of
methodology
submission of the proposed JCM project for validation.
(ies)
All relevant GHG emission sources covered in the
Emissionsourcesand methodology are addressed for the purpose of calculating
calculationof project emissions and reference emissions for the proposed
JCM project.
emission
reductions
The values for project specific parameters to be fixed ex
ante listed in the Monitoring Plan Sheet are appropriate, if
applicable.
Environmental
The project participants conducted an environmental
impactimpact assessment, if required by the Socialist Republic ofassessment
Viet Nam, in line with Vietnamese procedures.
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B. Validation team and other experts

Mr.
Ms.

Name

Company

Function*

Michiaki
Chiba

LRQA Ltd.

Team
leaderStewart
Niu

LRQA
China

Team
member
Host
Mr.
NguyenExternalcountryMs.
ThangexpertexpertMr.
Xianxin
LRQA
Internal
Ms.
Yan
China
reviewer
Please specify the following for each item.
Mr.
Ms.

Schemecompetence*

Technical
On-sitecompetence* visit
Technical
competenceauthorised
N/A
N/A
N/A

* Function: Indicate the role of the personnel in the validation activity such as team leader,team member, technical expert, or internal reviewer.
* Scheme competence: Check the boxes if the personnel have sufficient knowledge on the JCM.
* Technical competence: Indicate if the personnel have sufficient technical competence related
to the project under validation.

C. Means of validation, findings, and conclusion based on reporting requirements
C.1. Project design document form
<Means of validation>
The PDD was checked and confirmed as complete against JCM Guidelines forDeveloping PDD and MR No. JCM_VN_GL_PDD_MR_ver01.0. A valid form of the JCM
PDD Form No. JCM_VN_F_PDD_ver01.0 is used for the PDD Version 1.0 dated
19/01/2016 (First Edition). It was re-checked for the revised PDD Version 2.0 dated
16/03/2016. The version is the final version on which the validation was completed.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was identified to the requirement.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team confirmed that the PDD was completed using the valid form of the
JCM PDD Form and in accordance with the JCM Guidelines for Developing PDD andMR.
C.2. Project description3

JCM_VN_F_Val_Rep_ver01.0<Means of validation>
The project is to reduce CO2 emissions by facilitating the utilisation of high efficienttransformers in power distribution grid of Viet Nam. The project involves installation ofhigh efficient amorphous transformers displacing conventional and more energy
intensive transformers with silicon steel core.
The project transformers apply amorphous alloy core technology developed by Hitachi
Metals Ltd., Japan and supplied by manufacturer Thibidi in Viet Nam. Amorphoustransformer improves electrical characteristics and leads significant reduction of no load
losses, i.e. stand-by electricity consumed regardless of the electricity load.
The project plans to install 1,618 amorphous transformers to the power distribution grid
operated and maintained by EVN Southern Power Corporation (EVNSPC) in 18
Provinces and 1 province-level City in southern part of Viet Nam.
The project is participated by EVNSPC from the Socialist Republic of Viet Nam, and
YUKO-KEISO Co., Ltd. from Japan (the PPs).
The start date of project operation is on 01/01/2016 and the expected operational
lifetime of the project is for 18 years.
The project has been selected as one of the JCM model projects by the Ministry of theEnvironment, Japan (MOE) and receives financial support from the Government ofJapan.
The validation team assessed the PDD and the supporting documents, conducted aphysical site visit to validate the requirements concerning accuracy and completenessof the project description. Through the processes taken, 2 CLs were raised andsubsequently closed as the resolution detailed below. The details of the persons
interviewed and documents reviewed are provided in the Section E of this report.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
Grade / Ref:

CL 1

Nature of the issue raised:
The PPs were requested to provide justification of the start date of the project operation
with supporting evidence.
Nature of responses provided by the PPs:The PPs clarified that the project transformers completed the installation by November
2015 and the start date was set on 01/01/2016 whereby the monitoring provisions
became ready. The list of transformers indicating the installation dates and theoperation certificates of the transformers were provided as the evidence.

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Assessment of the responses:
The validation team confirmed the status of installation of the project transformer basedon the list of equipment, the operation certificates and the physical on site survey. The
start date was considered reasonable based on the implementation status as confirmed
through the on site assessment and the interviews of the PPs. The CL was closed.
Grade / Ref:

CL 2

Nature of the issue raised:
The PPs provided Statutory useful life for the calculation of depreciation andamortization for machinery and equipment issued by Japan’s Ministry of Finance as the
supporting document of the expected operational lifetime, but further justification isrequested on how the regulation in Japan is applicable to the equipment manufactured
and used in Vietnam.
Nature of responses provided by the PPs:The PPs explained that the time of depreciation of transformers and electricalequipment determined based on the technical service life is 7-15 years according to the
Ministry of Finance Circular No. 45/2013/TT-BTC Guiding Regulation on Management,
use and depreciation of fixed assets dated 25/04/2013. Considering the actual service
life of the type of equipment under a normal use of 20-25 years, the PPs selected theone specified in the regulation in Japan.
Assessment of the responses:
The validation team reviewed the regulatory documents in the host country andconfirmed that the expected operational lifetime of project has been determined taking
into consideration the regulations in Japan and the host country as well as the industrial
practices and it is longer than crediting period included in the PDD. Therefore the CL
was closed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team assessed the project description provided in the PDD with thesupporting documents and conducted a physical site visit to validate the requirementson the accuracy and completeness. The CLs raised were successfully closed as theresolution above detailed. The validation team confirmed that the proposed JCM projectin the revised PDD is described in accurate and complete manners that isunderstandable the nature of the proposed project activity.

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C.3. Application of approved methodology(ies)<Means of validation>
The project applied the approved methodology: JCM_VN_AM005_ver01.0 "Installationof energy efficient transformers in a power distribution grid". The methodology isapproved by the JC on 03/09/2015 and valid as of the time of the validation.
The validation team assessed if the selected methodology is applicable to the proposed
project. The project applicability was checked against each criterion in the approved
methodology selected. The steps taken to validate each eligibility criterion andconclusions about its applicability to the proposed project are summarised as below.
Criterion 1: Single-phase and/or three-phase oil-immersed transformer with amorphous
metal core is installed in the distribution grid.
Justification in the PDD: Distribution transformers installed by the project are either
single-phase or three phase oil-immersed transformer with amorphous metal core.
Steps taken for assessment: The validation team assessed the project documentation,technical specification of the transformers, the test reports and conducted physical onsite assessment.
Conclusion: The validation team confirmed that the project installs single-phase andthree phase oil-immersed transformers with amorphous metal core in the distribution
grid of EVN-SPC and the criterion is met by the project.
Criterion 2: Load losses of the project transformer determined in line with IEC 60076-1
or national/industrial standards complying with IEC 60076-1 is equal or smaller than thestandard values or specification values of load loss, required by the power company of
the grid where the project transformer is installed, corresponding to its capacity andnumber of phases.
Justification in the PDD: It has been confirmed that the load loss of the projecttransformers are smaller than the standard/specification values of load loss, required by
the power company of the grid where the project transformer is installed, corresponding
to its capacity and number of phases.
Load losses of the project transformer are determined in line with EVN SPC standard
MBA-03_MBA 3P22/0,4kV(Code ： EVN SPC-KTSX/QyĐ.114) and MBA-01_MBA
1P12,7/0,23kV(Code: EVN SPC-KTSX/QyĐ.114）
Steps taken for assessment: The validation team reviewed EVN-SPC standards
MBA-01 and MBA-03, the tender specification, test reports, IEC60076-1 andTVCN6306-1.
Conclusion:

The validation team confirmed that the load loss of the project6

JCM_VN_F_Val_Rep_ver01.0

transformers is smaller than the values corresponding to the capacity and number ofphases specified in the standard requirements of the power company taking into
account the national and international standards, and the criterion is met by the project.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirements of this section.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team confirmed that the project applied the valid version of the approved
methodology and the applicability was demonstrated to the eligibility criteria as
appropriate.
C.4. Emission sources and calculation of emission reductions<Means of validation>
The validation team assessed the documented evidence and by means of on site visit
confirmed that all the relevant GHG emission sources covered in the applied
methodology are addressed, and the steps taken and the equations applied to calculate
project emissions and reference emissions for the proposed project comply with therequirements of the approved methodology.
The emission sources are no load losses of grid electricity by reference transformers
and project transformers and CO2 is the GHG to be accounted.
The reference emissions are determined as a product of no load losses of the referencetransformers determined on the capacity category and the energizing time, the blackout
rate, and CO2 emission factor of the grid electricity.
The CO2 emission factor of the grid electricity is determined ex-ante and fixed for the
project period based on the latest value published by the Ministry of Natural Resources
and Environment of Vietnam (MONRE) at 0.5657 tCO2/MWh based on the data in year
2013.
The project emissions are calculated by no load losses of the project transformers
determined on the capacity category, maximum allowable uncertainty for the no load
losses of the project transformer, the energizing time, blackout rate, and the CO2
emission factor of the grid electricity.
The reference emissions are estimated ex-ante 1,005.1 tCO2 in a year.
The project emissions are estimated ex-ante 394.7 tCO2 in a year.
The total emission reductions are therefore estimated ex-ante 610 tCO2 in a year.
The details of the persons interviewed and the documents reviewed are shown in the7

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Section E of this report.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirement of the section.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team confirmed that:- The methodology was applied correctly to calculate project emissions and reference
emissions and no other significant emission source was identified that would be
affected and reasonably attributed by implementation of the proposed project but notaddressed by the applied methodology;- The choice of whether an emission source or gas is to be included where the applied
methodology allows was reasonably justified by the PPs;
- The Monitoring Plan Sheet (MPS) was not altered and the fields were filled in as
required so that all estimates of the reference emissions could be replicated using thedata and parameter values provided in the PDD;- The values for the project specific parameters fixed ex ante listed in the MPS wereappropriate with all the data sources and assumptions and the calculations were correct
to the proposed JCM project;- All assumptions and data used by the PPs were listed in the PDD, including theirreferences and sources; and- All values used in the PDD were considered reasonable in the context of the proposed
JCM project.
C.5. Environmental impact assessment<Means of validation>
The proposed project is to install energy efficient amorphous transformers in the power
distribution systems of southern part of Viet Nam and the PDD stated that anenvironmental impact assessment is not required by laws of the host country. The
project applies energy efficient amorphous transformers in place of silicon steel coretransformers that does not result in a significant environmental impacts. The validationteam assessed the applicable legal requirements in the host country using its local
expertise.
The details of the persons interviewed and documents reviewed are provided in the
Section E of this report.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
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JCM_VN_F_Val_Rep_ver01.0

No issue was raised to the requirement of the section.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team confirmed by assessing the relevant documents and using the local
expertise and confirmed that the project does not need an environmental impacts
assessment to be conducted to meet the legal requirement of the host country and the
PDD satisfies the requirements of the JCM.
C.6. Local stakeholder consultation<Means of validation>
The PPs identified EVNSPC, the power distribution companies under EVNSPC who
operate and maintain the power grid, and the related government bodies as the local
stakeholders and collected comments on the proposed project through individual
meetings and holding a stakeholder consultation meeting on 16/11/2015. The PPs also
held meetings to collect comments from officials of MOF, MOIT and MONRE on
16&17/12/2015. The local stakeholders appreciate the project and provided positive
comments. No negative issue was raised through the processes that require actions to
be taken by the PPs.
The details of the persons interviewed and documents reviewed are provided in the
Section E of this report.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirement of the section.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team confirmed that the PPs have invited comments to the proposed
project from the relevant local stakeholders, the summary of the comments received isprovided in the PDD in a complete manner and the PPs have taken due account of all
the comments received from the local stakeholders as the processes described in the
PDD.
C.7. Monitoring<Means of validation>
The Monitoring Plan (MP) consisting of the MPS and Monitoring Structure Sheet (MSS)
was based on the approved methodology. The monitoring parameter is energizing timeof the project transformers.
Energizing time of the project transformers is monitored by counting of the number of9JCM_VN_F_Val_Rep_ver01.0

hours in the monitoring period less the outage hours. The outage hours such as power
outage, repair/replacement and maintenance are monitored and recorded by theorganization in charge of operation of the transformers.
The management structure has been designed and roles and responsibilities have been
assigned to the JCM Project Manager, JCM Monitoring Manager and JCM Facilities
Manager as specified in the MSS.
The validation team confirmed that the MP complied with the requirements in theapproved methodology and that the PPs will be able to apply the MP following themonitoring arrangements described in it. The CARs and CLs were raised and resolved
as below detailed. The details of the persons interviewed and documents reviewed areprovided in the Section E of this report.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
Grade / Ref:CAR 2Nature of the issue raised:
The Monitoring Plan Sheet was not completed with the estimated value of theparameters Hi,p, NLLRE,i,j,k, NLLPJ,i,j,k and UNCi. The PPs were requested to provide
supporting evidence of each value applied.
Nature of responses provided by the PPs:
Estimated values of Hi,p, NLLRE,i,j,k, NLLPJ,i,j,k and UNCi. for each transformer were
provided in the revised MPS with the supporting evidence.
Assessment of the responses:
The estimated value of the parameters Hi,p, NLLRE,i,j,k, NLLPJ,i,j,k and UNCi are to
input on “MPS(input_separate)” sheet according to the form of the approved
methodology.
The parameter Hi,p, is indicated as 8,760 hours/p for all the transformers. According to
the justification of Measurement methods and procedures of the MPS (input sheet), themonitoring period is set to start after completion of installation of all the projecttransformers. The date of completion for installation of the project transformers can be
confirmed by the operation certificates. The real installation day in the list of transformer
is based on the installation and start of energizing/operation confirmed on theimplementation completion report.

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The values for the parameter NLLRE,i,j,k, is set in accordance with the standard noload loss required by EVNSPC as per the standards MBA-01 and MBA-03.
The values for the parameter NLLPJ,i,j,k is indicated not as confirmed in the
manufacturer’s performance test report measured at the time of pre-delivery test, butusing the standard no load loss for amorphous metal core transformers as provided in
the Additional information for the proposed methodology “Installation of energy efficienttransformers in a power distribution grid”. According to the PPs, the values of no load
loss of the project transformers are defined in the tender specification of the EVNSPC
and the test certificates of the individual transformers confirmed that the measured
value of no load loss is less than the value required in the tender specification of the
EVNSPC. The PPs applied the standard values in the ERs calculation instead of themeasured values of the individual transformers but it is conservative for the ERs
calculation.
The value of the parameter UNCi is 0.15 for all the transformers. The test reports for the
manufacturer’s performance test at the time of pre-delivery inspection do not indicate
the values obtained by the performance test of the individual transformers but confirm
the conformity with the requirements of TCVN6306 / IEC60076 wherein the maximum
tolerance of losses is indicated as +15%.
The validation team reviewed the revised MPS and the supporing evidence andconfirmed that the relevant values are provided for the parameters in the revised MPS
to which the PPs provided justification respectively. The value applied for calculation ofemission reductions is not The CAR was closed.
Grade / Ref:

CAR 3

Nature of the issue raised:
The measurement methods and procedures did not include QA/QC procedures applied.
Nature of responses provided by the PPs:QA/QC procedures have been included in the measurement methods and proceduresfor energizing time of the project transformers. The counting of the number of hours in
the monitoring period will be done by designating the starting date of the monitoring
period. As a QA/QC procedure, the PPs will ensure that the counting of the hours does
not start before implementation and starting of operation of all transformers under the
project are completed. The date of completion of transformer implementation and the11

JCM_VN_F_Val_Rep_ver01.0

start of the operation will be confirmed by reviewing the implementation completion
report for each transformer. The "real installation day" in the list of the projecttransformers is the date of implementation completion and the start date of theoperation.
Assessment of the responses:
The PPs revised the description of the measurement methods and procedures in the
MPS. The start and end days during the monitoring period will be cross checked by thePPs with the implementation completion report of each transformer and records ofrepair and replacement so that the counting of the energizing time can be assured not
to start before actual operation and to be adjusted with outage time if occurred during
the monitoring period. The CAR was closed.
Grade / Ref:

CAR 4Nature of the issue raised:
The Monitoring Plan Sheet did not include confirmation by the PPs to ensure that data
monitored and required for verification and issuance be kept and archived electronicallyfor two years after the final issuance of credits.
Nature of responses provided by the PPs:
The monitoring plan sheet has been revised.

It is now indicates that data monitored

and required for verification and issuance be kept and archived electronically for two
years after the final issuance of credits.
Assessment of the responses:
The validation team confirmed that the revised MPS includes the above mentioned
statement. The CAR was closed.
Grade / Ref:

CAR 5

Nature of the issue raised:
The sheet MPS (input_separate) of the Monitoring Plan Sheet was not completed withthe specific information of the individual transformers.
Nature of responses provided by the PPs:MPS (input_separate) of the Monitoring Plan Sheet has been revised and now includes
specific information of the individual transformers.

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Assessment of the responses:
The PPs provided the sheet MPS (input_separate) completed with the information of
the individual transformers and list of transformers as the supporting evidence. The
unique identification number of the transformers Nos. 1 to 1,618 is corresponding to the
manufacturer’s equipment serial numbers. The type numbers of the transformers arecorresponding to the type and capacity category numbers 1 to 19 shown in 3.1 of theAdditional Information for the proposed methodology. The identification numbers of thepower company are corresponding to the location numbers ① to ⑲ indicated in
Section A.3. of the PDD. The information of individual transformers indicated in the
MPS (input_separate) can be traced in the list of transformers. The validation teamconfirmed that the sheet MPS (input_separate) is completed with the relevant
information of the individual transformers. Therefore the CAR was closed.
Grade / Ref:

CAR 6

Nature of the issue raised:
The figure of the PDD Section C.2. does not indicate all the monitoring points formeasurement with the monitoring point numbers and the type of equipment to beinstalled. The PPs should also clarify the most suitable positions of the monitoring
points selected for collection of accurate data for the monitoring parameter.
Nature of responses provided by the PPs:
The project involves monitoring of the energizing time of the project transformers during
the monitoring period. Counting of the number of hours in the monitoring period will bedone at EVN SPC headquarter by the project participant. The PDD was revised toclearly indicate the monitoring point of the project.
Assessment of the responses:
The figure of the revised PDD Section C.2. shows monitoring points H1 to H1618.
The explanatory notes on the monitoring point clarified that the points are specified forindividual transformers where the installation, operation, repair or replacement if
conducted are confirmed and reported to EVN SPC for recording and determination of
the energizing time. Energizing time of each project transformer will be adjusted basedon the repair/replacement record if applicable. The CAR was closed.
Grade / Ref:

CL 3

Nature of the issue raised:
The PPs were requested to clarify the measuring equipment to be used for the13

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parameter Hi,p. and to address how it will be calibrated.
Nature of responses provided by the PPs:
The counting of the number of hours in the monitoring period will be done bydesignating the starting date and the end date of the monitoring period. As a QA/QC
procedure, project participants will ensure that the counting of the hours does not start
before implementations and starting of the operation of all transformers under the
project are completed. The date of completion of transformer implementation and thestarting of the energizing of the transformers will be confirmed by reviewing theimplementation completion report.

The number of days in the monitoring period will bemeasured using the calendar and the number of hours in the monitoring period will becalculated by multiplying the number of days by 24hrs/day. No periodical calibration isrequired for calendar.
Assessment of the responses:
As above clarified by the PPs, counting of number of hours is made by determination ofstart and end days of energizing time during the monitoring period with interruptions tobe adjusted if any based on the on-site confirmation of installation and operation ofeach transformer. Although the monitoring option is chosen as Option C in the approved
methodology, no measuring equipment is involved and a calibration of the same is notapplicable for the measurement methods. The counted number of days is multiplied by
24 hours/day to determine the number of hours during the monitoring period. Therefore,
the number of operational days must be counted based on a full day of operation. The
counting of day is conducted based on a calendar and there is no issue with accuracy ofmeasurement. The validation team also referred to the similar monitoring methodology
approved under the Clean Development Mechanism (CDM) AM0067 Version 02 for
installation of energy efficient transformers in a power distribution grid, its application to
the registered Programme of Activities (PoA) reference No. 9164 Installation of Energy
Efficient Transformers (IEET) in Kenya and the Component Project Activity (CPA) No.
IEET/CPA-001/KENYA/KPLC. The monitoring method is reasonble to the parameter asapplied in the JCM methodology approved by the JC. The CL was closed.
Grade / Ref:

CL 4

Nature of the issue raised:
The value of the blackout rate, the parameter Brp, is not obtained from the respective
power company but the default value of the approved methodology is applied. The PPs
were requested to clarify relevance of statement in the MPS.
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Nature of responses provided by the PPs:
The applied methodology AM_005 fixes the blackout rate at 1.87% as the methodology
default. The emission reduction calculation worksheet is not editable on this parameter.
It is the understanding of the PPs that the default value provided within the methodology
was established based on the data obtained from power companies. If there is any
section in the PDD or in the MPS, the PPs will clearly states that the methodology
default value of the blackout rate will be applied for the proposed project.
Assessment of the responses:
The Validation team considered the above clarification from the PPs and determinedthat application of the parameter Brp in the MPS follows the requirements of theapproved methodology as the conservative default value is to reduce burden of the PPs
to identify blackout rate for individual transformers and the value as well as thejustification are fixed in the MPS form that cannot be altered by the PPs. The CL wasclosed.
Grade / Ref:

CL 5

Nature of the issue raised:
The PPs were requested to clarify the organisational structures in the MSS for the
implementation, monitoring and reporting of the JCM project.
Nature of responses provided by the PPs:
The MSS was revised to clearly describe the organizational structures for the
implementation, monitoring, and reporting of the JCM project.
Assessment of the responses:
The PPs revised the MSS and clarified the organisational structures. The CL wasclosed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team confirmed that the MP was described in compliance with therequirements of the approved methodology and the Guidelines for developing PDD andMR, and the PPs have demonstrated feasibility of the monitoring structure and theirability to implement the MP.
C.8. Modalities of Communication
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JCM_VN_F_Val_Rep_ver01.0<Means of validation>
The MoC was submitted to LRQA for review in the form JCM_VN_F_MoC_ver01.0 that
nominates YUKO-KEISO Co., Ltd. as the focal point and was signed by the authorized
representatives of all the PPs with the contact details. The form used is the latest one
as of the time of validation.
The validation team assessed the personal identities including specimen signaturesand employment status of the authorized signatories through directly checking theevidence for corporate and personal identity of the PPs and their authorized signatories.
A CAR was raised since the relevant evidence was not submitted by the PPs at the startof the validation process that was subsequently closed as the resolution below detailed.
The validation team also confirmed through reviewing the corporate information of the
PPs and by meeting the persons representing the PPs that the information provided in
the MoC is correct.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
Grade / Ref:

CAR 1

Nature of the issue raised:
Evidence for authorized signatories of the MoC was not presented for EVNSPC.
Nature of responses provided by the PPs:The PPs provided supporting evidence for authorised signatories of EVNSPC.
Assessment of the responses:
The Validation team reviewed the supporting evidence provided by the PPs andconfirmed that the signatories of EVNSPC are correctly indicated in the MoC that iscompleted with the personal identification and the signatures. The CAR was closed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team confirmed that the MoC was completed using the latest form. A
CAR was issued as above detailed and subsequently closed after assessment
conducted on relevance of the MoC in compliance with the requirements of the JCM
Guidelines.
C.9. Avoidance of double registration<Means of validation>
The validation team assessed and confirmed relevance of the written confirmation in
the MoC from the PPs that the proposed JCM project was not registered under the16

JCM_VN_F_Val_Rep_ver01.0

other international climate mitigation mechanisms.
The team in addition to the interviews with the PPs checked publicly accessible
information of Clean Development Mechanism (CDM), Joint Implementation (JI),
Verified Carbon Standard (VCS), Gold Standard (GS) and the other schemes, andfound no identical project as the proposed JCM project in terms of the name of entities,
applied technology, scale and the location. The result of researches confirmed that the
proposed project was not registered under the other international climate mitigation
mechanisms than JCM and it will not result in a double counting of GHG emission
reductions.
Particular attention was given to that there is an approved CDM methodology,
AM0067 Methodology for installation of energy efficient transformers in a power
distribution grid that might be applicable to the type of project. There was one CDM
Programme of Activity (PoA) registered applying the methodology but it is implemented
in Kenya and no similar project located in Vietnam.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirement of the section.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team confirmed that the proposed JCM project was not registered under
the other international climate mitigation mechanisms.
C.10. Start of operation<Means of validation>
The start date for the operation of the proposed JCM project is indicated as 01/01/2016
in the PDD.
The validation team confirmed correctness/relevance of the information by reviewing
the supporting evidence and on site visit, including but not limited to assessing of thecontracts, test reports and operation certificates, and that the date is not before
01/01/2013 as required to be eligible as a JCM project.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirement of the section.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
The validation team confirmed through the on site assessment that the start date ofoperation of the proposed JCM project is 01/01/2016 and not before 01/01/2013 as
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required to be eligible as a JCM project.
C.11. Other issues<Means of validation>
No issue was identified as relevant element not covered above.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
Not applicable<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
Not applicable

D. Information on public inputs
D.1. Summary of public inputs
In line with the JCM Project Cycle Procedure, the PDD is to be made publicly available
for 30 days to invite public comments. The PDD was made publicly available in line withthe requirements of the procedure for the period of 19/02/2016 to 19/03/2016 as per
https://www.jcm.go.jp/vn-jp/projects/15.

D.2. Summary of how inputs received have been taken into account by the project participants
A comment was received during the above period to receive public inputs.
The PPs took account the comment to the validation requirements as below.
Comment No. 1
Name: Mayur Karmarkar
Affiliated Organization: ICA, Asia
E-mail: mayurkarmarkar@copperalliance.asia
Country: India
Part of the document (A/B/C/etc): B Application of an approved methodology (ies)Page of the document: B2 Page 4 of 10
Input on the page: Criteria 3 – As the period of the project is for 18 years, there could bechances of transformer failures, disturbing core even during rewinding. This maychange transformer losses, so propose to discount CO2 emission savings for repaired
transformers for remaining period of the project. Propose to discount emission
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reductions of 10% (As per tolerance limits specified in IEC60076 standard).
How the PPs took account the comment:
The public input suggests adding a new eligibility criterion to the applied methodology
JCM-VN-AM005 in order to account for the uncertainty of the transformer losses
associated with the long project life and the effects of repairs or the degradation overtime.
Although the project proponent is not in the position for judging whether the current
version of the methodology requires the revision in order to further address theuncertainty, the attached research paper "Development of distribution transformer
based on new amorphous metals" indicates that the chance for the amorphous core to
be degraded within the project life of 18 years is quite slim. According to the study, thelifetime of amorphous alloy used in the amorphous transformer is 550 years. The
project proponent contacted the author of the research paper and confirmed that thepossible damage of the transformer through repair can be detected at the time of testing
after the repair and it is unlikely that the degraded transformer will be installed after the
repair.
In addition, the current approved methodology ensures the conservative emission
reduction by adopting conservative blackout rate for the methodology.
Furthermore, the project proponent is taking extra step to ensure net emission reduction
by adopting following two approaches:- Instead of individual test result of the no-load loss value, the project applies the
maximum no-load loss allowed in the procurement requirement.
- The project applies the maximum uncertainty of 15% as per the IEC60076 standard
for the allowable uncertainty for the no-load losses of the project transformers.
Assessment and conclusion: The validation team judged there is no doubt on
authenticity of the public input and reviewed the contents of the public input and the
response of the PPs with supporting evidence. The amorphous metal core has alifetime of 550 years and its performance deterioration is very little over the time
according to the research paper the clarification from the author of the same. The
author also mentioned that in case a transformer is damaged, the transformer needs tobe tested again to satisfy the quality standard before it is re-installed. The approved
methodology provides a conservative default blackout rate and the maximum allowable
uncertainty of IEC60076 at 15% is applied under the project so that the emission
reductions are calculated in a conservative manner. Therefore, the validation teamconfirmed that the project design has taken account the points of the public input as19

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appropriate.

E. List of interviewees and documents received
E.1. List of interviewees
List of persons interviewed
YUKO-KEISO Co., Ltd.
Mr. Shiro Tokura, Director, System Service Department
Ms. Hiromi Kuroyanagi, System Service Department
TAKEO MATSUDA, Director, Yuko Vietnam Co. Ltd.
Mitsubishi UFJ Morgan Stanley
Ms. Chisato Nakade, Consultant, Clean Energy Finance Division
EVN-SPCNGUYEN DAC THANG, EVN SPC Technical – Production Dept. Deputy Manager
HOANG TUAN ANH, EVN SPC Technical – Production Dept. Specialist
HO NGUYEN BICH NGAN, EVN SPC International Relation Specialist
TRUONG XUAN QUY, EVN SPC International Relation Specialist
TRAN THE DU, EVN SPC Investment Management Specialist
Long An PC
NGUYEN VAN LAM, Long An PC, Planning – Technical Dept., Deputy Manager
CAO NGUYEN BINH, Planning – Technical Dept., staff
HOANG TUAN LICH, Tan An Power Branch, Planning – Technical Dept Manager
THIBIDICAO HOANG PHAT, Vice General Director
PHAM NGOC BICH, Vice General Director
TRAN THI NGOC HANH, Specialist in Design Department
DANG MINH TRI, Deputy of QC Manager

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E.2. List of documents received
Category A documents (documents prepared by the PP)- PDD Version 1.0 dated 19/01/2016 with MPS/MSS- PDD Version 2.0 dated 16/03/2016 with MPS/MSS- Project outline- Project idea note
- Outline of the electricity distribution grid and the map- Information of 19 power distribution companies- Monitoring and reporting structure- Schedule for project implementation- EVN SPC standard MBA-03_MBA 3P22/0,4kV (Code: EVN SPC-KTSX/QyD.114) andMBA-01_MBA 1P12,7/0,23kV (Code: EVN SPC-KTSX/QyD.114)- Statutory useful life for the calculation of depreciation and amortization for machineryand equipment issued by Japan’s Ministry of Finance- Ministry of Finance Circular No. 45/2013/TT-BTC Guiding Regulation on Management,
use and depreciation of fixed assets dated 25/04/2013- Grid emission factor of Vietnam in 2013
- Law on Environmental Protection No. 55/2014/QH13 dated 23/06/2014- Decree on Environmental Protection Planning, Strategic Environmental Assessment,
Environmental Impact Assessment and Environmental Protection Plans- Records of Local Stakeholders Consultation- IEC60076-1 Power Transformers Part 1 General- TCVN6306-1:2006 / IEC60076-1: 2000 Power Transformers Part 1 General- List of transformers- Test reports- Operation certificates- Response to the public input by the project participant- Development of distribution transformer based on new amorphous metals, Paper to20th International Conference on Electricity Distribution 2009
- Views of author of the research paper “Development of distribution transformer basedon new amorphous metals”- EVN-SPC Technical Specification for Amorphous Transformers- Tender Specification MBA1P-G01-1- Organisation Chart of EVN-SPC
Category B documents (other documents referenced)- Approved Methodology VN_AM005 “Installation of energy efficient transformers in a21

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power distribution grid” Version 1.0- Additional information for the proposed methodology “Installation of energy efficienttransformers in a power distribution grid”- Brochures for Amorphous Alloy Ribbon Metglas®. Hitachi Metals, Ltd.
- Company information of Tong Cong Ty Thiet Bi Dien Viet Nam Cong Ty Co Phan Thiet
Bi Dien (THIBIDI)- Standard for energy consumption performance by equipment manufacturers oftransformers, the Ministry of Economy, Trade and Industries, Japan- Decree No. 38/2015/ND-CP dated April 22, 2015 of the Government on the
management of wastes and scraps- Ministry of Natural Resources and Environment Circular No. 36/2015/TT-BTNMT on
Management of Hazardous Wastes dated 30/06/2015- Standards for judgment on manufacturers of energy consuming equipment concerning
the improvement of the energy consumption performance of the transformer dated
27/12/2013, Ministry of Economy, Trade and Industry of Japan- Feasibility Study Report for project to reduce transmission loss and greenhouse gas
emissions by diffusion of high efficient amorphous transformers dated March 2011,
Mitsubishi UFJ Morgan Stanley Securities Inc.
- Approved CDM Methodology for installation of energy efficient transformers in a power
distribution grid AM0067 Version 02- Programme of Activities Design DOcument (PoA-DD) for reference No. 9164
Installation of Energy Efficient Transformers (IEET) in Kenya and the Component
Project

Activity

DesignDOcument(CPA-DD)forreferenceNo.

IEET/CPA-001/KENYA/KPLC- Approved Small Scale CDM methodology AMS II.A. Supply-side energy efficiency
improvements – transmission and distribution Version 10- J-Credit methodology for renewal of transformers EN-S-008 Version 1.0

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Annex Certificates or curricula vitae of TPE’s validation team members, technical experts
and internal technical reviewers
Please attach certificates or curricula vitae of TPE’s validation team members, technicalexperts and internal technical reviewers.
Certificate of Appointment is attached to this report.

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