CHINA POWER TRANSFORMER EFFICIENCY PROGRAM · Web viewS7, S8, S11 and S15 are the model numbers of...

CHINA POWER TRANSFORMER EFFICIENCY PROGRAM

Environmental Management Plan

The State Grid Corporation of ChinaJune 10, 2010

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E2653

Table of Contents

1. Introduction......................................................................................................................3

2. Project Description.......................................................................................................3

2.1 Project Scope.........................................................................................................3

2.2 Project Locations...................................................................................................4

2.3 Major Project Activities and Institutional Arrangements.....................................5

3. Major Chinese Laws and Regulations Applicable to the Project.................................8

4. Major Impacts and Mitigation Plan..............................................................................9

5. Implementation Arrangements for Environmental Management and Monitoring and Reporting Procedures…...…………………………………………..15

6. Public Consultation………………………………………………………………....15

Annex 1. Names of the participants in the public consultation.........................................18

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1. Introduction

In order to reduce power distribution losses, improve energy efficiency and reduce CO2

emissions, the State Grid Corporation of China (hereinafter referred to as SGCC) intend to implement the SGCC Transformer Efficiency Program. This Program is to replace low efficiency in-service 10 kV distribution transformers (Type S7 or Type S8 transformers1) with high efficiency 10 kV distribution transformers (whose no-load losses are compliant with or better than Type S11 transformers) to reduce the losses of transformers of the power distribution system of SGCC. Currently there are around 120,000 inefficient S7/S8transformers serving the distribution network of SGCC. Most of these S7/S8 transformers were installed in late 80s and 90s and still have remaining lifetime of at least 5 years.

The purpose of this Environmental Management Plan (EMP) is to be used to provide guidance to related SGCC departments and subsidiaries which will implement the proposed program for the environmental management and monitoring process to be followed in implementing individual sub-projects under the Program. This EMP defines the contents, procedures and institutional responsibilities for environmental management of the sub-projects. The purpose of the EMP is to ensure the transformer replacement program will be carried out in compliance with both Chinese environmental laws and regulations SGCCs’ policies and procedures for environment, health and safety and/or best international practice in accordance with World Bank/IFC Environment, Health and Safety Guidelines.

2. Project Description

2.1 Project Scope

The proposed project is to replace low efficiency in-service 10 kV distribution transformers (Type S7 or Type S8 transformers) with high efficiency 10 kV distribution transformers (whose no-load losses are compliant with or better than Type S11 transformers) to reduce the losses of transformers of the power distribution system of SGCC. It will replace around 120,000 inefficient S7/S8 distribution transformers with S11 transformers or transformers of higher efficiency than S11 from 2010 to 2012 in power grids in 26 provincial subsidiary grid companies (GCs) owned by SGCC. The program will be implemented from mid 2010 to end of 2012.

All the transformers to be eligible for replacement will be:

10 kV (or 6 kV) distribution transformers; Type 7 or type 8

1 S7, S8, S11 and S15 are the model numbers of distribution transformers in China, the higher number of the series, the more advanced the technology and the higher the efficiency.

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Manufactured after 1985 (including 1985) and before January 31, 1999; Free of any current oil leaks or other insulation problems; Located at a site which currently meets environmental, health and safety

requirements of the People’s Republic of China and related SGCC environment, health and safety provisions as determined by SGCCs’ due diligence review and;

Free of any oils containing polychlorinated biphenyls (PCBs)

All the new transformers to be installed to replace the existing inefficient transformers will be:

Dry types, modern oil immersed, and/or other modern types of transformers manufactured to meet current related Chinese and related international industrial standards, as well as related environment, health and safety regulations in China

S11 efficiency of better Free of PCBs.

As the trustee of the Danish Carbon Fund (DCF) and Spanish Carbon Fund (SCF), the World Bank intends to purchase Certified Emission Reductions (CERs) to be generated by the China Transformer Efficiency Project. ERPA payments will be made annually based on actual CERs verified by a Designated Operational Entity (DOE), an independent auditing company, and issued by the CDM Executive Board which supervises the CDM for UNFCCC Parties.

2.2 Project Locations

The geographical boundary of the program is the 25 provinces within China as listed below.

Table 1: Project LocationsRegional grid Dominant provinces Sub-total

Northeast China Region

Liaoning Province, Jilin Province, Heilongjiang Province, Inner Mongolia Autonomous Region， 4

North China Region

Beijing Municipality, Tianjin Municipality, Hebei Province, Shanxi Province, Shandong Province

5

East China Region

Shanghai Municipality, Jiangsu Province, Zhejiang Province, Anhui Province, Fujian Province

5

Central China Region

Henan Province, Hubei Province, Hunan Province, Jiangxi Province, Sichuan Province, Chongqing Municipality

6

Northwest China Region

Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region, Xinjiang Uygur Autonomous Region

5

Total - 25

The project will be implemented along selected 10 kV distribution lines owned and operated by the SGCC where eligible inefficient 10 kV distribution transformers are installed, and places where the replaced transformers will be storage, and dismantled

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These places are owned by SGCC or by licensed contractors. No land acquisitions, either permanent or temporarily, are required.

2.3 Major Project Activities and Institutional Arrangements

Replacement of old transformers with new transformers

The replacement includes disassembling existing low efficiency transformers and installing of new highly efficient transformers in the distribution lines within designated areas. As the proposed project will only replace existing distribution transformers with more efficient transformers in SGCC's 10 kV distribution systems and there are no civil works required for the proposed project.

The typical sizes of 10 kV distribution transformers are in the range of one (1) to two (2) cubic meters. The replacement of these transformers is very simple and straight forward. Usually, an estimated two to four-hour power shutoff of nearby districts is required. Because the replacement activities will take place in the existing 10 kV power distribution systems, it does not require temporary occupation or permanent acquisition of additional land. Therefore, no involuntary resettlement is required. In addition, no significant noise is anticipated to occur, or dust to be produced in the replacement process.

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Fig. 1. Replacement of 10 kV Distribution Transformers

Storage and Disposal

The replaced the old transformers will be transported to special storages either owned by SGCC directly or owned and operated by qualified and licensed transformer disposers. Again, in either case, related regulations/procedures of the Government and SGCC will be followed.

The disposal of the old transformers will be carried out by licensed special waste recycling companies. Usually, the replaced old transformers will be sold by the SGCC’s provincial subsidiary companies to licensed recycling companies where old transformers will be dismantled: some materials will be recovered and recycled (e.g. metals, oils etc.) and the remaining materials (porcelain, glass etc.) will be disposed.

Since all the transformers involved were made in China after mid 1980s, there are no issues of disposal of polychlorinated biphenyls (PCBs). Experience also indicated that the possibility of oil leakages of the distribution transformers to be replaced is extremely low. In fact, transformers with oil leakage will not be qualified for the project2. The

2 Transformers with at least a five year remaining life under normal operation conditions will be qualified for the CDM project. Transformers that are currently leaking oil will not qualify for the project.

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transformer oils are basically petroleum products. It can be recycled and re-used. No significant secondary pollution is expected.

Fig 2. Dismantling of Old 10 kV Distribution Transformers

Implementation Institutional Arrangements

SGCC is the implementation agency. SGCC headquarters will play a leading and coordinating role in the project implementation. It will be responsible for planning, subproject approval and be the focus point of the company in dealing with the World Bank and related government agencies. SGCC has prepared <<The SGCC Distribution Transformer Program Management Measures>> in order to ensure the effective implementation.

The 25 provincial grid companies (GCs) of SGCC will be responsible for identifying and implementing the subprojects in their own service areas. Within each province, the various municipal and county-level operation divisions of the provincial GC will be responsible for replacing the transformers identified eligible under this program.

The old transformers will be dismantled and disposed by licensed contractors. The contractors will be recruited by each provincial company through a competitive bidding process in according to SGCC’s policy. All the contractors will be regulated by relevant local authorities, especially in the areas of waste treatment, recycling and disposal. These

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contractors should also have special licenses which allow them to dismantle and disposal electric power supply equipment, such as power transformers.

SGCC has well established institutional arrangements internally to deal with environmental, health, safety and social issues related to its operation and development. At each level of the company (headquarter, provincial and municipal), there are departments or divisions responsible for environmental, health and safety management and monitoring. These business units are staffed with fully or partially specialized environmental protection personnel who will directly provide technical supports to the project implementation.

3. Major Chinese Laws and Regulations Applicable to the Project

Laws, regulations and SGCC Provisions applicable to the project are listed below.

Table 2: Environment, Health, Safety and Emergency SpecificationsArea Level Project Related Regulations

Safe

ty a

nd G

ener

al E

HS State Safe Production Act of the Peoples Republic of China (PRC)

SGCC

SGCC Power Construction Safety, Health and Environmental Management Regulation [2003] No.168

SGCC Environmental Assessment for Power Construction Safety and Health Management Practices (Pilot) [2004] No. 488

SGCC Operational Safety Supervision Provisions [2003] No. 408

Emer

genc

y Pr

epar

edne

ss a

nd R

espo

nse State

Emergency Preparedness Act of PRC [Presidential Order, No. 69, 2007]

Guidelines for Enterprises to Develop Emergency Response Plan for Work Place Accidents [2006]

Sector

SGCC

SGCC Emergency Response Plan [2007] No. 98

SGCC Emergency Management Regulations 〔2007 〕 No. 110

Construction Hazard Prevention and Emergency Response [2004] No. 264

Envi

ronm

enta

l State Environmental Protection Law of PRC

SGCC– General

SGCC Environmental Management Approach

SGCC Environmental Protection Requirements

SGC Environmental Protection Evaluation Methods

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Area Level Project Related Regulations

SGCC– Construction

SGCC Provisions for Energy-Saving and Environmental Protection Technical Supervision

SGCC Interim Measures for Power Grid Project Construction Environmental Impact Assessment

SGCC Interim Measures for Power Grid Project Construction Completion Environmental Protection Approval

SGCC Power Grid Construction Project Management Guideline for Soil and Water Conservation

Dis

man

tling

and

Dis

posa

l

State

Solid Waste Treatment and Pollution Prevention Law of the People’s Republic of China, Dec. 29, 2004

Resource Recycling and Reuse Management Regulation. The Ministry of Commerce, the National Development and Reform Commission; the

Ministry of Public Security, the Ministry of Construction, the National Administration of Industrial and Trade, the Environment Protection

Administration, May 1, 2007

SGCCSGCC Equipment and Material Transportation and Storage Management

Policy;

SGCC Old Equipment Disposal Management Policy.Local

governmentsResource Recycling and Reuse Management Regulations stipulated by

various local governments.

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4. Major Impacts, Mitigation and Monitoring Plans

A. MITIGATION PLAN

Issue Mitigating Measure

Cost of Mitigation

(If Substantial)

Responsibility Start End

Replacement of the Transformers

Dust The construction normally doesn’t result in dust pollution and doesn’t require special

preventive measures. If necessary, the construction site will be sprinkled with water, especially during hot, dry and/or

windy conditions..

MinorMunicipal or county-level ( Grid Companies) GCs

At beginning of replacement

At end of replacement

Audible Noise Construction activities will be performed only during working hours (8 AM to 6

PM). If construction activities is close to residential areas and have to be performed before or after the specified time limits, the local society must be notified at least one

week in advance.

MinorMunicipal or county-level

GCs



Traffic Disruption

Conduct work during periods of light traffic (after rush hour) and to avoid peak

time of electricity consumption

Identify alternate traffic route(s) and place clearly marked signs


GCs



Soil Contamination caused by oil

leaks.

Given the small sizes of the transformers, soil contamination from oil leaks, if any,

will be light.In accordance with SGCC standard


GCs



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Cost of Mitigation

(If Substantial)


procedures, if there is light contamination, soil will be removed by Grid Company placed in plastic bags and transported to

sites approved by environmental authorities.

Non-toxic solid wastes (metal,

packing and used equipment, etc.)

To be removed to places specially allocated for landfills or recycle, approved by local

authorities


GCs

In the beginning of construction

After completion of construction

Occupational Health and Safety(OHS)

&Emergency

Preparedness and Response (EPR)

SGCC has well established OHS procedures and emergency response system (see Table 2).This system is

consistent with IFC Guidelines (General EHS and Electric Power Transmission and Distribution). This system will be in effect

during removal of old transformers. No additional OHS and EPR requirements are

needed


GCs



Storage and Disposal of the Old Transformers

Solid Waste and liquid

Management for old transformer

Old transformers will be transported to special storage facilities either owned by SGCC directly or owned and operated by

qualified and licensed transformer disposers. The storage facilities will have a concrete base or heavy plastic sheet as the base and designed to contain and collect

any oil leaks. The facilities will be locked. Eventually, the old transformers will be

collected by a licensed contractor for disposal for scrap recycling.

Bidding documents will specify that the contractor should have valid business

license for dismantling and disposal of old

Minor and part of the operation

budget.

Medium, and part of the operation

costs of the

Provincial, Municipal or county-level GCs

Qualified and licensed contractors.

At beginning of Storage

After the replaced

transformers are handed over to

the licensed contractor for

disposalAt the end of the

disposal.

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Cost of Mitigation

(If Substantial)


transformer and that the waste materials would be transported to sites officially

approved by the local municipal authorities or delivered to companies that are licensed

to recycle any recovered oils or scrap materials. All the disposal and recycling

activities will follow “Solid Waste Treatment and Pollution Prevention Law of the People’s Republic of China” and related Resource Recycling and Reuse Management Regulations stipulated by

various government agencies.

contractors.

At beginning of dismantling.

Operation of the New Transformers


&Emergency


SGCC has well established environment and OHS procedures and emergency

response system. This system is consistent with IFC Guidelines (General EHS and

Electric Power Transmission and Distribution).The SGCC system will be in effect during installation and operation of the new transformers. No additional OHS

and EPR requirements are needed

Minor Provincial, Municipal or county-level GCs

At beginning of operation

Continuous

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B. MONITORING PLAN

What parameter is to be monitored?

Whereis the parameter

to be monitored?

Howis the parameter to be

monitored/ type of monitoring equipment?

Whenis the parameter to

be monitored-frequency of

measurement or continuous?

Monitoring Cost

What is the cost of equipment or

contractor charges to perform

monitoring


Replacement of Old Transformers

Dust At project site, along

equipment/materials delivery

routes

Visual Daily SmallMunicipal or county-

level GCs



Audible Noise Construction site

Observation that specified construction

times are obeyed

During replacement

SmallMunicipal or county-

level GCs



Traffic flow conditions

At site of detour Visual When detour is established

Small Municipal or county-level GCs



Non-toxic solid wastes (metal,

packing and used equipment, etc.)

At construction site

Visual Prior to removal of scrap transformer

Small Municipal or county-level GCs

At beginning of dismantling

At end of dismantling

Soil contamination At equipment storage location

and/or construction

site

Visual Weekly Small Municipal or county-level GCs

At beginning of dismantling

At end of dismantling


& Emergency

At construction site

Visual Daily Small Municipal or county-level GCs



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Storage and Disposal of the Old Transformers

Condition of SGCC used

transformer storage site

Checking contractors qualifications, including

license validation.

Checking the dismantling and

disposal processes of the contractors on the

spot

SGCC used transformer storage site

In SGCC’s Office, but may

require site visits to the

facilities of the potential

contractors.

In the contractors’

facilities

Visual -Used transformers placed on concrete

base. Site locked. Oil leaks properly contained and

collected

Visual

Visual

Weekly

During the bidding evaluation.

At least once

Small

Small

small

Provincial, Municipal or county-

level GCs


level GCs


level GCs

At beginning of storage

At the beginning of

the bid evaluation

At the beginning of

the dismantling and disposal

At end of storage

At the end of the bid evaluation

At the end of the dismantling and

disposal

Operation of Replacement Transformer


&EmergencyPreparedness and Response (EPR)

At transformer site

Visual During maintenance SmallProvincial,

Municipal or county-level GCs

During maintenance

During maintenance

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5. Implementation Arrangements for Environmental Management And Monitoring and Reporting Procedures

Table 3: Institutional Arrangements for Implementation

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Action Institutional ResponsibilityMonitoring Data Collection

(From Monitoring Plan)Replacement of Old Transformers

Storage and Disposal of Old Transformers

Operation of Replaced Transformers

Municipal Operation division of provincial GC /installation contractor

Municipal Operation division of provincial GC /qualified contractor

Municipal Operation division of provincial GC

Data AnalysisReplacement of Old Transformers





Municipal Operation division of provincial GCEnvironmental Report PreparationReplacement of Old Transformers






Environmental Report Receipt/Frequency (Who receives report/how often)Replacement of Old Transformers

Environment reports are to be prepared annually and sent to the project team in the HQ of SGCC

Storage and Disposal of Old TransformersEnvironment reports are to be prepared semi-annually and sent to the project team in the HQ of SGCC

Operation of Replaced TransformersEnvironment reports are to be prepared annually and sent to the project team in the HQ of SGCC

Management ActionReplacement of Old Transformers






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6. Public Consultation

Public consultation was conducted on July 8, 2009 in Beijing and on July 9 and 10, 2009 in Shenyang City of the Liaoning Province where subprojects have been identified. Before the public consultation, an announcement was posted in the State Grid News, on June 25, 2009. The State Grid News is an accredited newspaper publicly issued both paper and internet editions in China and the covers all the project areas.

Representatives of the SGCC (implementing agency), government (the Ministry of Environment), affected communities, manufacturers and academics participated in the public consultation.

During the public consultation, the representatives of SGCC introduced the project design and the draft environmental management plan and SGCC’s relevant environment, health and safety regulations and policies to the participants. All of participants believed that the negative environmental and social impacts of the proposed project, by nature, are very limited and manageable. No significant issues were raised.

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Annex 1. Names of the participants in the public consultation

Institutions Name and Title Invitation by Date of Invitation

State Grid Corporation of China

ZHOU, XinfengVice-Division Chief of the

Department of Production and Technology

Telephone 2009.07.03

State Grid Corporation of China

LIN, XujunEngineer of the Department of

Production and Technology

Telephone2009.07.03

International Equipment and Technology Co. of SGCC

SUN, MengDeputy Director, Dept.of

Development and Planning

Telephone2009.07.03


DUAN, XiaohuaDeputy Director, Dept. of

Technical Support

Telephone2009.07.03


XU, ShengtingInternational Dept.



GUO, XuejianDept. of Technical Support



MENG, ZhongweiDept.of Development and

Planning

Telephone2009.07.03


XIE, ShaofenDept.of Development and

Planning

Telephone2009.07.03

International Equipment and Technology Co. of SGCC GUO, Xin Telephone 2009.07.03

Municipal Power Grid Company of Beijing

ZHU, MinEngineer for Distribution

System

Telephone2009.07.06

Consultant JIANG Shan Telephone 2009.07.03Consultant PAN, Tao Telephone 2009.07.03

Energy Research Institution of the National

Development and Reform Commission

MI, ChuanDeputy Division Chief

Letter of Invitation 2009.07.06

The Ministry of Environment

XIAO, XuezhiInternational Cooperation

Center


Community Representative WU, Xuequn Public Announcement 2009.07.06

Community RepresentativeLI, Hongqing

Public Announcement 2009.07.06

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Institutions Name and Title Invitation by Date of Invitation

Community RepresentativeWANG, Hongsong


Community RepresentativeSONG, Jinkao


Xinjiang Transformer Plant ZHANG, Yinzhong Letter of Invitation 2009.07.03

Huapeng Transformer Company of Jiansu Province

DI, JingxiangDeputy General manager


Tian Wei Shun Da Transformer Company of

Baoding

SHANG, HuikaiTechnical Specialist


Da Chi Electrical Equipment Company of

Shandong Province

JIA, XiangheBeijing Chief Representative


China Electric Power Research Institute

CHENG, HuachaoDistribution Transformer

Specialist


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