SICHUAN PROJECT

The Sichuan Tiejue 25MW Hydro Power Project (hereafter referred as the “proposed project”) is a high head, new-build hydropower project. The proposed project is developed and owned by Mabian Gaozhuoying River Valley Development Co., Ltd.

The proposed project involves the construction and operation of a diversion hydro power station (with a run-of-river reservoir) which is located on the lower reach of Minjiang River, the first-grade breach1 of Mabian River, which is the Gaozhuoying River water system in Tiejue County, Mabian Yi-nationality Autonomous County, Leshan City, Sichuan Province of China.
The proposed project is a run-of-river scheme. The project activity involves construction of header water retaining structure, sluice and sediment flush structure, water draw and influx structure, diversion tunnel, pressure fore bay, pressure piping and power plant, where the water from the project will be led from dam to the lower reaches of a river through tailrace canal. With a maximum height of the dam to be 139.2 m and the project site to be far from residential area, only one inhabitant need to be resettled due to the project activities.

The total installed capacity of the proposed project is 25MW (2*12.5MW), the area of the reservoir measured in the surface of the water (after the implementation of the project activity, when the reservoir is full) is 16,665m2 , thus the power density of the project is 1,500W/m2. On the average, the project activity is
expected to operate 4,990hours per year and the net grid-connected electricity generation is 103,830MWh.

The electricity will be supplied to the 110kV Mabian transformer substation, then to the Leshan City Grid, then to Sichuan Provincial Grid, and finally to the China Centre (Regional) Power Grid (hereafter referred as CCPG). Electricity generated by the proposed project will displace part of the electricity generated by China Centre Power Grid which is dominated by fossil fuel-fired power plants, and thus achieve greenhouse gas (GHG) emission reductions. The estimated annual CO2 emission reductions are 98,877 tCO2e.

As a renewable energy (hydro power) project, the proposed project will contribute to the local sustainable
development through following aspects:

• To displace part of the electricity from coal-fired power plants, and thus will avoid
  environmental pollution caused by coal burning.
• To make good use of the local water resource to solve the difficulties of lack of power and
  unstable voltages, improve the life quality of local people and reduce poverty.
• To promote the change of local energy structure of bavin, coal and coal-fired power.