The Dangshun 15.1 MW Hydropower Project in Qinghai Province (hereafter referred to as the Project) developed by Qinghai Dangshun Hydropower Development Co., Ltd. is sited on the Longwu River in Dangshun Town, Jianzha County，Qinghai Province.

Purpose of the Project:

(a)The scenario existing prior to the start of the implementation of the Project is that the electricity requirement is satisfied by Qinghai Power Grid which is an integral part of the Northwest China Power Grid (NWPG);

(b) The Project is a newly-built hydropower project with the total installed capacity of 15.1 MW. The Project is in construction and will be in commission in Jan 2010. The reservoir surface area at full reservoir level is 78557 m2, and the power density is 192.2W/m2. The expected average annual operation hours and the average annual power generation are 4195 hours and 63.35GWh respectively, and the load factor of the Project is about 48%. The project consisted of a dam, a river diversion tunnel, a pressure adjustment tank, high pressure pipelines, a powerhouse and a step-up substation. It will utilize the water resources of Longwu River to generate electricity, which will be delivered to NWPG without CO2 emissions. The Project will achieve greenhouse gas (GHG) emission reductions by displacing equivalent electricity supplied by NWPG, which is predominated by fossil fuel-fired power plants.

(c) The baseline scenario of the Project is the same as the scenario existing prior to the start of implementation of the Project.

CDM – Executive Board

How the Project reduces GHG emissions:

The Project is estimated that the electricity supplied to the grid will be 58.985GWh1 annually. The Project activity will achieve greenhouse gas (GHG) emission reductions by avoiding CO2 emission from the business-as-usual scenario electricity generated by those fossil fuel-fired power plants connected into NWPG. The estimated emission reductions are 51,730tCO2e per year.

As a renewable energy project, the Project will produce positive environmental and socio-economic benefits and contribute to the local sustainable development through following aspects:

Contributing to local economy development by providing electricity to meet local increasing energy demands;

       Reducing GHG emissions compared to a business-as-usual scenario;        Reducing the emission of other pollutants resulting from local coal-based power plants, compared to        a business-as-usual scenario;

Creating lots of permanent and short-term employment opportunities for local people during the project construction and operation period.