The Zhejiang Dachen Island Wind Power Phase I Project (hereafter referred to as the “Project”) developed by Zhejiang Xingxing Wind Power Co., Ltd (hereafter referred to as the “Project Developer”), is a grid-connected wind power plant in Taizhou City, Zhejiang Province in People’s Republic of China (hereafter referred to as the “Host Country”). The total installed capacity of the Project will be 25.5 MW, consisting of 34 turbines whose installed capacity is 750kW, with a predicted electricity supply to the grid of 56,530 MWh per annum1.

The purpose of the Project is to utilise a wind power facility to generate low greenhouse gas (GHG) emissions electricity for the East China Power Grid (hereafter referred to as the “Grid”). The Project Developer has obtained permission to sell generated electricity to the Zhejiang Power Grid which is an integral part of the East China Power Grid. The East China Power Grid is a coal-dominated power grid. The electricity currently generated by the grid is relatively carbon intensive, with an operating margin emission factor of 0.9540 tCO2/MWh and a build margin emission factor of 0.8236 tCO2/MWh (see section B for further details). The project is therefore expected to reduce emissions of GHG by an estimated 52,0872 tCO2e per year during the first crediting period by displacing electricity from the Grid. The baseline scenario is the same as the scenario existing prior to the start of the implementation of the project activity: electricity delivered to the Grid by the project would have otherwise been generated by the operation of grid-connected power plants and by the addition of new generation sources.

The project will contribute to the sustainable development of the Host Country. Specifically, the project:

• Achieves GHG emission reductions by avoiding CO2 emission from the business-as-usual scenario: electricity generation by he fossil fuel-fired power plants connected to the Grid.. • Increases employment opportunities in the area where the project is located (approximately 15 people will be permanently employed for the project operation3, and the construction of the project secures jobs in the construction sector) and thereby contributes to poverty alleviation. • Enhances the local investment environment and therefore improves the local economy. • Diversifies the sources of electricity generation. This is important for meeting growing energy demands and the transition away from diesel and coal-supplied electricity generation. • Makes greater use of renewable wind resources.