Zhangjiagang Natural Gas Power Generation Project (hereinafter called as “the proposed project”) is to construct a greenfield natural gas fired grid-connected power plant in Zhangjiagang City in East China’s Jiangsu Province, and be invested, constructed and operated by Zhangjiagang Huaxing Power Co., Ltd. (hereinafter called as “Huaxing”).

The scenario existing prior the start of the implementation of the proposed project is that the electricity supply can not meet the electricity demand in Jiangsu province and meanwhile the peak regulation capacity of Jiangsu Power Grid (hereinafter called as “JPG”, JPG is the integral part of East China Power Grid, hereinafter called as “ECPG”) is insufficient.

The purpose of the proposed project is to construct a new thermal power plant using natural gas as fuel in order to supply electricity to JPG and increase the peak regulation capacity of JPG as well as lead to reduce the green house gas emissions. According to the FSR of the proposed project, the power generation technology is 9F-level gas-steam combined cycle, the rated total installation capacity is 780MW (2×390MW), the annual operation hours is 3500 hours, the annual natural gas consumption is estimated to be 576 million m3, the annual power generation is 2730 GWh and the annual net electricity output sent to the grid is 2675.4GWh.

According to the baseline scenario analysis described under section B.4 in this PDD, in the absence of the proposed 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 proposed project will lead to substantial greenhouse gas emissions 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 proposed project are estimated to be 1,231,243 tCO2e, and the total emission reductions over the first crediting period are 8,618,701 tCO2e. The proposed project will not only meet the increase electricity demand of Jiangsu Province, but also improve the peak load regulating capability of JPG. Furthermore, the proposed project will also contribute to the sustainable development to local, global and the host country in a number of 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 electric supply quality of the 

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CDM – Executive Board

–      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.