June 24, 2008 JAPAN

1. AustralianPeer ReviewPresentations by Partnership Countries ～Result of “1st Peer Review Activities in Japan”and Official Tool for Implementation of Peer Review～ June 24, 2008 JAPAN ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

2. Goal of the Peer Review Activities • The goal of the Peer Review Activities is to share the best practices of operation and maintenance of the coal-fired thermal power plants with approximately the same operational period, through the activities such as; • open and frank discussion among plant engineers with consecutive site visits • development of database of review items • development of a check-list for efficiency improvement • development of a handbook for lateral and wider dissemination of accumulated knowledge. ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

3. Overview of the Peer Review Activities Dissemination of the Best Practices（Using of Consolidated Documents） Sharing the Facts and Issues （e.g.maintenance & improvement of thermal efficiency） Site Visit（Review the common subjects such as operation, maintenance, and environment） Group Discussion Visit the power plant facilities Maintenance Operation Environment Wrap-up （Identification of best practices/ recommendation） Peer Review Activities within APP Countries ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

4. 100 35 34 80 33 32 60 31 40 30 Utilization Factor 29 20 Thermal Efficiency 28 27 0 1988 1989 1990 1991 1992 1993 Example of Thermal Efficiency Degradation Malaya power station, Philippine Utilization Factor (%) Thermal efficiency (%) (HHV) Source: JICA, 2004 ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

5. Utilization Annual Total HP Heaters Replacement Unit #2 (%) Factor Unit #1 (%) (HHV) Efficiency 40 100 39 90 38 80 37 36 70 35 60 Condenser Tube Replacement 34 HP/IP Turbine Replacement 33 50 32 40 31 30 30 1975 1973 1987 1988 2003 1985 1989 2005 1968 1969 1970 1971 1972 1974 1976 1977 1978 1979 1980 1981 1982 1983 1984 1986 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2004 2006 Example of maintaininghigh thermal efficiency ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

6. The 1st Peer Review Activity focusing on maintaining & improving thermal efficiency of aged Coal-fired Thermal Power Plants’ • Period： April 16, 2007 ~ April 20, 2007 • Place：J Power, Takasago Power Plant, etc. • Participants：37 people from China, India, USA, Republic of Korea, Australia • Activities： 　・Exchange opinions in regards to the “Factors that causes thermal efficiency 　 deterioration ” • 　・Peer review at Takasago Thermal Power Station, Japan • 　・Exhibition on the subject of “Environment,” “Thermal Efficiency Improvement” • 　・Site visit to Hitachi Naka Thermal Power Station, Japan • 　・Site visit to Harumi Island Triton Square (regional heat supply facility) ( Co-sponsored by Ministry of Economy, Trade and Industry and FEPC ) ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

7. Department of the Environment and Water Resources Australia International Power (2) China Electric Council (CEC) Beijing Guodian Kehuan Clean Combustion Technology & Engineering Ltd., China China Datang Corporation, China Power Investment Corporation, (8) Guodian Technology & Environment Group Co., Ltd., Huaneng Power International Inc., Yantai Longyuan Electric Technology Co., Ltd. National Thermal Power Corporation Ltd (NTPC), CESC Ltd., India Confederation of Indian Industry (CII) (8) Ministry of Commerce, Industry & Energy, Korea Electric Power Corporation, Korea East - West Power Co., Ltd., Korea Korea Midland Power Corporation, Korea South - East Power Co., Ltd., (13) Korea Southern Power Co., Ltd., Korea Western Power Co., Ltd., Korea Electric Power Research Institute Edison Electric Institute (EEI), United States Alliant Energy, American Electric Power (AEP), Southern Company (6) Participants ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

8. Results of the 1st peer review (1) Opinions from the participants • We are impressed by the Japanese colleagues’ careful management of coal fired power plants to 　maintain high thermal efficiency over the long period of time. • We are eager to learn about this style of careful operational management technology developed 　by Japanese colleagues. • We would like to bring the knowledge we obtained back and apply it to our plants. • Activities such as the Peer Review should be consecutively conducted in all APP participating 　countries. 【Discussion on site 】 【 Group discussion 】 ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

9. Results of the 1st peer review (2) Fundamental Factors for efficiency improvement • Organizing and analyzing the historical maintenance information • Monitoring and analyzing the operating information • Integrating the above information and developing the O&M program from the long term perspective • The significance of the Peer Review Activities has been shared among the participants. • Common recognition that appropriate day to day operational management is necessary to maintain thermal efficiency, was firmly produced. ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

10. Benefit of the appropriate day to day operational management Energy & cost saving and air pollution reduction can be achieved by implementation and dissemination of the best practices in operation and maintenance shared through the Peer Review Activities. In addition, the improvement in efficiency or the avoidance of potential degradation of thermal efficiency could further lead to the CO2 emissions reduction. ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

11. Designed Efficiency Y% Y% (A) X+α% Y-β% (B) Avoidance of Efficiency Degradation X% X% Efficiency Improvement Thermal Efficiency Year-0 Year-1 Year-0 Year-1 Accumulated Energy Savings (A) + (B) GHG Emission Reductions Benefit of the appropriate day to day operational management Assuming that effect of the order of 1%, more than 120 Mt-CO2 emissions can be reduced or avoided throughout the APP countries. ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

12. Official Tool for Implementation of Peer Review ( 2nd Peer Review in India) • “Green Handbook”, “Checklist”,”Review Sheet”, and the “Procedure” were approved as official tool at 2nd Peer Review in India • These tools were proposed and prepared by JAPAN • Application of them is already being by USA and China • Available on the FEPC Website: http://www.fepc.or.jp/english/env/app/ Green Handbook ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

13. Japan’s Proposal of Operation and Facilities Improvements ( 2nd Peer Review in India) • At the 2nd Peer Review in India, Japan proposed 　an applicable methodology. The “Review Sheet” 　of the Kota Power station gives us an example of 　its application. ・Auxiliary power of major 　fans can be reduced by lowering 　the economizer outlet O2. ・Boiler efficiency can improve by reducing the spray flow through combustion optimization. (Further investigation and follow-up activities are expected for full implementation. ) Review Sheet ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

14. Preliminary estimation of potential reduction( 3rdPeer Review in USA) • Edgewater GS • U4: 1.6%(point) increase/ 35,000 t-CO2/yr circa • U5: 2.1%(point) increase/ 53,000 t-CO2/yr circa • Columbia GS • U1: 1.7%(point) increase/ 57,000 t-CO2/yr circa • U2: 0.8%(point) increase/ 30,000 t-CO2/yr circa Assumption Load factor: 50% Turbine efficiency: back to the design RH spray flow: 0, SH spray flow: same as the heat balance diagram AH air leakage: same level as Japan’s power plant (Factors: SAH steam reduction, FDF power reduction, combustion air temperature) ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

15. Cooperation with “PGT-06-1 Activities” ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~

16. Thank you for your kind attention ASIA-PACIFIC PARTNERSHIP on Clean Development and Climate ~ Australian Peer Review　~