Hangzhou Huadian Banshan Power Generation Co., Ltd.’s Natural Gas Power Generation Project (hereinafter refer to as “the project”) is the construction and operation of a new natural gas fired grid- connected power plant in Hangzhou City of Zhejiang province, and invested and owned by Hangzhou Huadian Banshan Power Generation Co., Ltd. (hereinafter refer to as “Banshan”)

The scenario existing prior the start of the implementation of the project is that the power supply can not meet the power demand in Hangzhou City of Zhejiang Province meanwhile the peak regulation capacity of Zhejiang Provincial Grid (hereinafter refer to as “ZPG”, ZPG is the integral part of East China Power Grid, hereinafter refer to as “ECPG”, ECPG includes Shanghai, Zhejiang, Jiangsu, Anhui and Fujian Provincial Grids) is insufficient.

The purpose of the project is to construct a new thermal power plant using natural gas as fuel in order to supply power to ZPG and increase the peak regulation capacity of ZPG as well as lead to reduce the green house gas emissions. According to the FSR of the project, the power generation technology is 9F- level gas-steam combined cycle, the rated total installation capacity is 1170MW (3×390MW), the annual operation hours is 3500 hours, the annual natural gas consumption is estimated to be 764.484 million m3, the annual net power output to the grid is 3890.25GWh.

According to the baseline scenario analysis described under section B.4 in this PDD, in the absence of the project, the baseline scenario is to construct a new 600MW sub-critical coal fired power generation units. In comparison with the baseline coal-fired plant, the project will lead to substantial greenhouse gas emission reductions due to using the low-carbon intensive fuel and adopting the much higher efficient power generation technology. According to the ex-ante calculation in this PDD, the annual emission reductions of the project are estimated to be 1,601,960 tCO2e, and the total emission reductions over the first seven year crediting period are 11,213,720 tCO2e. The project will not only meet the increasing power demand of Zhejiang Province, but also improve the peak load regulating capability of ZPG. Furthermore, the project will also contribute to the sustainable development to local, global and the host country in the following ways: – Lead to greenhouse gas emission reductions compared to a business as usual approach, thereby benefit the global climate change;

–      Reduce other pollutants (e.g. SO2, NOx , dust, etc) compared to a business as usual approach, thereby        improve the local environment quality;

 –      Enhance the ability of peak regulation to the local grid and improve the power supply quality of the –      Promote the application of gas-fired combined cycle power generation technology widely in the East        China Region.

–      Create the employment opportunities for the local residents.