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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03 CDM – Executive Board 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information

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PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

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CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD)

Version 03 - in effect as of: 22 December 2006

CONTENTS

A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments

Annexes

Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information

Annex 4: Monitoring Information

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Revision history of this document

Version Number

Date Description and reason of revision

01 21 January 2003

Initial adoption

02 8 July 2005 • The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document.

• As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>.

03 22 December 2006

• The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM.

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SECTION A. General description of small-scale project activity

A.1 Title of the small-scale project activity:

d.light Rural Lighting Project

Version number of the document: 02 Date: 13/10/2008

A.2. Description of the small-scale project activity:

Summary

The d.light Rural Lighting Project (hereafter referred to as the Project) involves the introduction of solar lighting systems to rural Indian households. The solar lighting systems consist of one LED lamp with a rechargeable battery and one photovoltaic module. LED lamps use a light-emitting diode which is a semiconductor diode that emits light when an electrical current is applied. LEDs are ideal for rural lighting purposes due to their efficiency, long life time, ruggedness and low maintenance costs associated.1 Photovoltaic (PV) modules consist of solar cells which can convert sunlight directly into electricity. PV modules are very useful to power electric devices like the lamps for this Project in remote, off-grid areas. The target group of the Project are rural households that use kerosene for lighting purposes and are located in the states of Uttar Pradesh (U.P.) and Bihar in India. Those households are in deep need for better, saver and cleaner light sources. Official Indian statistics show that kerosene is the only alternative to electrical lighting for about 75% of the rural households of U.P. and 89% of the rural households in Bihar.2 (Only 1% (U.P.) respectively 0.5% (Bihar) use other, more expensive alternatives like candles, other oils, gas etc.) Emission reductions in this project will therefore be achieved through renewable energy generation for lighting, replacing the fossil fuel kerosene. It is planned that about 1 million d.light solar systems will be sold to the rural market under this project (according to d.light’s sales projections for 2009). The solar lamps will be distributed through pre-appointed preferred distributors who will provide the first link in the chain to the customer and have pre-existing relationships with either the customers or a network of retailers. The distributors, who will also provide after-sales servicing support, range from wholesalers to microfinance institutions to corporate partners to NGOs. d.light solar systems will be directly sold through these channels at a price that is affordable for poor households in rural Uttar Pradesh and Bihar. The required price level can only be achieved through additional revenues from the CDM project activity. For the first time solar lighting will be attainable on large scale for people at the bottom of the pyramid that today have no other choice than using a noxious and dangerous source of lighting with an insufficient level of service.

Purpose of the project activity

The Project is focused on the following objectives:

1 Mills, Evan, 2002. The $230-billion Global Lighting Energy Bill, Proceedings of the 5th International Conference on Energy-Efficient Lighting, May 2002, Nice, France. http://eetd.lbl.gov/emills/PUBS/PDF/Global_Lighting_Energy.pdf (last accessed on 10/10/2008)

2 National Sample Survey (NSS) Report No. 511, Energy Sources of Indian Households for Cooking and Lighting, 2004-05, 61st Round, National Sample Survey Organisation, Department Of Statistics, Government Of India, April 2007

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• Reduction of the dependency of rural households on kerosene as light source

• Improvement of the quality of life of people by supplying quality lighting service for domestic tasks, income generating activities and education purposes

• Reduction of CO2 emissions through reduction of kerosene consumption

• Diminishment of conflagration risk for households, human burn and flue gases intoxication

• Introduction of reliable and environmentally safe and sound lighting technology in rural areas without sufficient grid connection

• Positive contribution to the households’ budgets through reduction of kerosene purchase costs

• Enhancement of public awareness in the context of efficient and environmentally-friendly light sources

Contribution to sustainable development

The introduction of solar and LED technology for lighting in Indian rural households involves significant contributions to sustainable development, apart from GHG emission reductions, mainly:

• Saved income for rural households. Former kerosene lantern users will no longer need to buy kerosene for lighting, which will save a large amount of income on the long run. This money can be spent on other priorities such as education, medicine and food.

• Increased productivity. Studies3 have shown that with improved lighting, overall productivity and income of a household increases about 15% because people are able to work more efficiently and do more income generating activities.

• Improvements in child education. Better light for reading and studying is expected to yield scholastic achievements.4

• Improved energy efficiency. LEDs have a higher lighting efficiency than traditional kerosene lamps, highly reducing energy consumption.

• Improved health. Experts estimate that India probably has 200,000 deaths annually from burns. caused by the use of flame based domestic appliances5. d.light lighting products will contribute to prevent these domestic accidents. They will also reduce indoor air pollution, which causes acute lower respiratory infections leading to millions of deaths each year in India especially among young children6. Besides, LED lights will avoid the burning sensation in the eyes of children studying, caused by the smoke of kerosene lanterns.

• Improved employment. d.light design will partner with local distributors, retailers and dealers for the dissemination of the new technology and will also provide local employment for customer service.

3 Khan and Hasna (2001)Battery operated lamps produced by rural women: Bangladesh. UNDP report. www.undp.org/energy/publications/2001/files_2001a/03_Bangladesh.pdf (last accessed on 27/05/2008)

4 Madan and Singh (2007) Rural Lighting Assessment. http://www.iycn.in/downloads/7.Dabkan_Report.pdf (last

accessed on 13/10/2008)

5 ISBI International Society for Burn Injuries, Burns and Fires from Flammable Non-electric Domestic Appliances: Part I. The Scope of the Problem http://www.worldburn.org/documents/burns_fires_domestic_appliances.pdf (last accessed on 13/10/2008)

6 World Health Organization http://www.searo.who.int/en/Section1243/Section1310/Section1343/Section1344/Section1357_5349.htm (last accessed on 06/07/2008)

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A.3. Project participants:

Name of Party involved (*)

((host) indicates a host

Party)

Private and/or public entity(ies) project

participants (*) (as applicable)

Kindly indicate if the

Party involved wishes to

be considered as project

participant (Yes/No)

India (host country) Private entity: d.light design No

The Netherlands Private entity: OneCarbon International BV No

Full contact information for the project participants is provided in Annex 1.

A.4. Technical description of the small-scale project activity:

A.4.1. Location of the small-scale project activity:

A.4.1.1. Host Party(ies):

India

A.4.1.2. Region/State/Province etc.:

Uttar Pradesh (U.P.), Bihar

A.4.1.3. City/Town/Community etc:

All rural households in Uttar Pradesh and Bihar that in the absence of the project would have used kerosene for lighting. Deployment of the solar systems will initially concentrate in a confined geographic area of U.P. and expand quickly as the project developer learns how to best serve the rural population.

A.4.1.4. Details of physical location, including information allowing the

unique identification of this small-scale project activity :

The target areas of the project are all rural villages and small rural towns of Uttar Pradesh (U.P.) and Bihar in North India. A list of all 97,942 currently existing villages of U.P. and all 39,032 currently existing villages of Bihar can be found at Census of India, office of the Registrar General & Census Commissioner, India7. However, this list is not exhaustive as e.g. there may be rural sites where kerosene is used for lighting and that are not even considered a village or sites that have changed their status since the last available Census from 2001. Therefore, sites additional to the indicative list of villages from the 2001 Census are also eligible under the project as long as the baseline situation of the household in

7http://www.censusindia.gov.in/Census_Data_2001/Village_Directory/List_of_Villages/List_of_Villages_Alphabetical.aspx (last accessed on 10/10/2008)

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question is usage of kerosene for lighting. Information on the location of effectively participating households will be collected through random sample monitoring as described in Section B.7.

Figure 1: Location of Uttar Pradesh and Bihar on the Map of India (source: Census of India 2001, own addition of

red circle)

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Figure 2: Map of Uttar Pradesh (source: Census of India 2001)

Figure 3: Map of Bihar (Source: Census India 2001)

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A.4.2. Type and category(ies) and technology/measure of the small-scale project activity:

According to the categorization of Appendix B to the simplified modalities and procedures for small-scale CDM project activities, the project activity falls under the following type and category:

• Type I: renewable energy project activities with a maximum output capacity equivalent to up to 15 megawatts

• Category A: Electricity generation by the user The Project involves the introduction of renewable lighting sources in Uttar Pradesh and Bihar rural households that use kerosene for lighting purposes. Each solar lighting kit consists of one LED lamp with a rechargeable battery and one PV module. LED Technology A light-emitting diode (LED) is a semiconductor diode that emits light when an electrical current is applied in the forward direction of the device, as in the simple LED circuit. The effect is a form of electroluminescence where incoherent and narrow-spectrum light is emitted from the p-n junction.8 LEDs are widely used as indicator lights on electronic devices and increasingly in higher power applications such as flashlights and area lighting. An LED is usually a small area (less than 1 square mm) light source, often with optics added to the chip to shape its radiation pattern and assist in reflection. The color of the emitted light depends on the composition and condition of the semiconducting material used, and can be infrared, visible, or ultraviolet. Advantages of LEDs LEDs are ideal for rural lighting purposes owing to their long life time, ruggedness and low maintenance costs associated.9 Solid state lighting using white LEDs are very energy efficient because the process of light emission does not involve any generation of heat, unlike in incandescent lights which rely on heating a filament to emit light.10 Currently available LED lamps for the project are the d.light products Comet Solar, Comet Solar Plus and Nova Solar which have power rates of 0.5W, 1W and 1.3W respectively. They come along with adequate solar panels. It is d.light’s aim to match customer needs and to ensure affordability of the systems for rural households. Therefore, the installed capacity of each solar PV panel and the features of the LED lamps deployed may still be changed. The lamps use a rechargeable battery which is common for sale in rural areas, thus allowing easy replacement. Batteries are closed inside the lights and can only be recharged with the portable solar panel, which comes with safe outdoor wiring and plugs directly into the lamps. All types of lamps

8 http://en.wikipedia.org/wiki/LED (last accessed on 10/10/2008)

9 Mills, Evan, 2002. The $230-billion Global Lighting Energy Bill, Proceedings of the 5th International Conference on Energy-Efficient Lighting, May 2002, Nice, France. http://eetd.lbl.gov/emills/PUBS/PDF/Global_Lighting_Energy.pdf (last accessed on 10/10/2008)

10 Apte et al 2007. Improved Lighting for Indian Fishing Communities. http://light.lbl.gov/pubs/fisherman-led-rpt.pdf (last accessed on 10/10/2008)

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incorporate a circuit board and have a charging indicator LED which turns on when the product is charging. Solar panels have been designed to optimise charging efficiency under climatic conditions in North India to ensure usability of the lamps all year round. Lamps can only be recharged with the attached solar panel as a special jack is used. Therefore, misuse is prevented and it is guaranteed that users do not connect the lamps to AC power which would break the lamps circuitry.

The Project Activity will facilitate technology transfers to rural households in India, as the solar lighting systems have been designed by engineers of d.light, a company which grew out of and was incubated in the Hasso Platner Institute of Design at Stanford University, US. Lighting needs are currently met in rural households with kerosene lamps. .

A.4.3 Estimated amount of emission reductions over the chosen crediting period:

Years Annual estimation of emission

reductions

in tonnes of tCO2-eq

2009 20,323

2010 92,725

2011 92,725

2012 92,725

2013 92,725

2014 72,402

2015 0

2016 0

2017 0

2018 0

Total emission reductions (tonnes of CO2-eq) 463,625

Total number of crediting years 10

Annual average over the crediting period of estimated reductions (tonnes of CO2-eq)

46,363

Estimated emission reductions fade out after 2014, because the calculation is based on expected sales numbers of 2009 only11 and assuming a five year lifetime of the lamps. d.light is planning to sell more lamps in the years following 2009 under a separate CDM program of activities which is expected to be registered after the first year pilot project under this PDD.

A.4.4. Public funding of the small-scale project activity:

The project does not obtain public funding.

11 In 2009 the lamps will not yet generate the full amount of carbon credits because the lamps are expected to be sold (and thus start operation) continuously over the whole year. The emission reductions for 2009 are estimated based on the sales targets of d.light for 2009.

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A.4.5. Confirmation that the small-scale project activity is not a debundled component of a

large scale project activity:

As highlighted in Appendix C of the Simplified Modalities and Procedures for Small-Scale CDM project activities12, a proposed small-scale project activity shall be deemed to be a debundled component of a large project activity if there is a registered small-scale CDM project activity or an application to register another small-scale CDM project activity:

� With the same project participants; � In the same project category and technology/measure; � Registered within the previous 2 years; and � Whose project boundary is within 1 km of the project boundary of the proposed small-scale

activity at the closest point. The project participants have not registered another project with the same project category and technology/measure in the past 2 years and within 1 km of this project boundary. On the basis of the above, the Project cannot be considered a debundled component of a larger project.

SECTION B. Application of a baseline and monitoring methodology

B.1. Title and reference of the approved baseline and monitoring methodology applied to the

small-scale project activity:

Approved small-scale baseline methodology AMS-I.A “Electricity generation by the user” (version 13)13.

B.2 Justification of the choice of the project category:

The methodology AMS-I.A “Electricity generation by the user” (version 13) is applicable to the proposed project activity because it fulfils the required criteria:

• The project activity comprises renewable energy generation units that supply individual householders or user or groups of households with electricity.

• The project activity involves the installation of renewable energy based lighting systems.

• The emissions reduction per renewable energy based lighting system is less than 5 tonnes of CO2e a year.

• In the absence of the project activity fossil fuel would have been used. This is proven through statistics released by the National Sample Survey Organisation of the Ministry of Statistics and Programme Implementation of the Government of India in April 2007 in its report Energy

Sources of Indian Households for Cooking and Lighting, 2004-2005. According to the report the usage of kerosene as main source for lighting in the target region of the project activity (rural villages in Uttar Pradesh and Bihar) was 74.9% in U.P. and 89.4% in Bihar. Electricity was the main source of lighting for 24% (U.P) and 10.1% (Bihar) of rural households. Other sources of

12 http://cdm.unfccc.int/EB/007/eb7ra07.pdf (last accessed on 10/10/2008)

13 http://cdm.unfccc.int/UserManagement/FileStorage/CDMWF_AM_J55DI73SVWQ8MG9BLA622YS16UCO2G (last accessed on 10/10/2008)

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lighting were negligible.14 Though it seems reasonable to assume that households with proper access to electrical lighting would not purchase a solar based lighting system and that therefore 100% of participating households would be kerosene users the ex-ante baseline calculations in section B.6.3. are adjusted by the above usage rate of kerosene to ensure conservativeness. Additionally, a representative sample survey (90% confidence interval, ±10% error margin) might be conducted amongst the participating households to determine more accurate values that can be used for ex-post calculation of emission reductions.

• The total capacity of the solar panels included in the project will not exceed 15 MW.

• The project does not involve combined heat and power systems The projected number of systems deployed is still uncertain but it will be ensured that the number of systems included in the project will not go beyond the threshold of 15MW installed capacity.

B.3. Description of the project boundary:

With reference to the methodology AMS-I.A “Electricity generation by the user” (version 13), the physical, geographical site of the renewable energy generating unit and the equipment that uses the electricity produced delineates the project boundary. Taking the above into account, the project boundary is each household hosting a solar lighting kit consisting of a solar PV panel and a LED lamp. The household will directly consume the electricity generated by the solar unit for lighting purposes.

Figure 4: Project boundary (source: own drawing)

B.4. Description of baseline and its development:

14 National Sample Survey (NSS) Report No. 511, Energy Sources of Indian Households for Cooking and Lighting, 2004-05, 61st Round, National Sample Survey Organisation, Department Of Statistics, Government Of India, April 2007

Solar PV

Panel Battery

LED

Lamp

Wire

Household

Solar PV

Panel Battery

LED

Lamp

Wire

Household

Solar PV

Panel Battery

LED

Lamp

Wire

Household

Solar PV

Panel Battery

LED

Lamp

Wire

Household

Project boundary

Solar PV

Panel Battery

LED

Lamp

Wire

Household

Solar PV

Panel Battery

LED

Lamp

Wire

Household

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According to methodology AMS-I.A “Electricity generation by the user” (version 13), the energy baseline for the project is the fuel consumption of the technology in use or that would have been used in the absence of the project activity to generate the equivalent quantity of energy. In case of renewable energy lighting applications the equivalent level of lighting service is to be considered instead of energy. Since the d.light rural lighting project involves the installation of renewable energy lighting applications the baseline is developed in the following steps:

1. Baseline Technology: The technology that would have been used in the absence of the project activity is determined.

2. Specific Baseline Technology Fuel Consumption: An approach how to determine the level of lighting and the corresponding fuel consumption by the baseline technology is presented.

3. Baseline Emissions: The CO2 emissions of the baseline technology at an equivalent level of lighting as provided under the project are determined.

Step 1: Baseline Technology:

General Baseline situation: Official Indian statistics15 show that different primary sources of energy used for lighting by households in India are kerosene, gas, candle, electricity, other oil etc. Among these, kerosene and electricity are most commonly used. At national level, these two accounted for 99% of the households in both rural and urban areas16. (See respective paragraph below for more details on lighting statistics of the states U.P. and Bihar). Where electricity is not available for lighting, kerosene is the cheapest of the alternative light sources. (See paragraph “kerosene – the cheapest alternative to electrical light in India” below for more details on kerosene prices and availability in U.P. and Bihar) However, the electricity grid in rural Uttar Pradesh and Bihar is very unreliable (prone to black outs and brown outs) which leads to the situation that even most of the so called “electrified” households are dependent on kerosene as light source most of their time. (See paragraph “Kerosene usage in electrified villages” below for more details). Therefore, it is assumed that the technology in use and that would have been used in the absence of the project activity for lighting in households participating in this project is kerosene for all households without a grid connection as well as for the numerous insufficiently electrified households which are dependent on kerosene for lighting most of their time. The following paragraphs substantiate the described situation with available official data, field studies and national and regional press releases. National statistics on lighting sources in Uttar Pradesh and Bihar:

15 National Sample Survey (NSS) Report No. 511, Energy Sources of Indian Households for Cooking and Lighting, 2004-05, 61st Round, National Sample Survey Organisation, Department Of Statistics, Government Of India, April 2007

16 National Sample Survey (NSS) Report No. 511, Energy Sources of Indian Households for Cooking and Lighting, 2004-05, 61st Round, National Sample Survey Organisation, Department Of Statistics, Government Of India, April 2007

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The last statistical official information on energy sources for lighting in India is provided by the publication “Energy sources of Indian households for cooking and lighting 2004-2005”(April 2007), prepared by the National Sample Survey Organisation of the Indian Ministry of Statistics and Programme Implementation. This source provides figures about the number and percentage of households using kerosene as their main lighting source in all Indian States. The following table Table 1 shows that 74.9% of the rural population of Uttar Pradesh and 89.4% of the rural population of Bihar use kerosene as their main light source:

Table 1: Main sources of energy for lighting in rural Uttar Pradesh and Bihar -India 2004-2005 (source: Indian Ministry of Statistics and Programme Implementation (2007), NSS Report No. 511)

.

Source of lighting for rural households in Bihar in U.P.

Kerosene 89.4 % 74.9 %

Electricity 10.1 % 24 %

Other energy sources 0.5 % 1.1 %

Kerosene Usage in electrified villages: Evidence shows that even villages with possible access to electricity mainly rely on kerosene for their lighting needs. There are two main reasons for this situation:

1. The weak definition of “electrified village”: According to the norms on rural electrification in India, a village is declared electrified once a minimum of 10% of households have a grid connection17. Thus, official electrification numbers published by the Ministry of Power have to be treated with caution; they currently declare electrification rates of 88.3% and 52.9% for rural villages in Uttar Pradesh and Bihar respectively18. In reality, the majority of households living in such “electrified” villages have no access to electricity and are forced to use kerosene lamps as alternative for lighting.

2. The second reason for kerosene use in “electrified” villages is the weak electricity grids in rural India: According to research by Drishtee Foundation (2007) and according to numerous press releases from international and local media19, it is common for electrified villages to have 10-15 hours of blackouts or brown-outs (low voltage) every day. Table 3 shows the average availability of electricity in 60 surveyed households in U.P. More than half of the surveyed households had only up to 4 hours of electricity per day and only one household had more than 8 hours per day.

17 Press Information Bureau Government of India, New Delhi, 30/11/2005: http://www.pibbng.kar.nic.in/prel3_301105.pdf (last accessed on 10/10/2008)

18 Ministry of Power, Government of India, Progress report of village electrification (last update: 30/06/08): http://www.powermin.nic.in/rural_electrification/village_electrification.htm (last accessed on 01/10/2008)

19“18-hour power cut makes Kanpur residents sing!” April 29, 2008. Rediff.com

www.rediff.com///news/2008/apr/29kanpur.htm (last accessed on 27/05/2008)

“Protest in Uttar Pradesh against massive power cuts” May 2, 2008. Daily News www.dailynews365.com/national-news/protest-in-uttar-pradesh-a (last accessed on 27/05/2008)

“Thirsting for Energy in India’s Boomtowns and Beyond” March 2, 2008. The New York Times. www.nytimes.com/2008/03/02/world/asia/02india.html (last accessed on 27/05/2008)

“Prolonged summer power cuts spark riots” 5 March 5, 2008. Gulf news. http://www.gulfnews.com/World/India/10210342.html (last accessed on 27 /05/2008)

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Table 2: U.P. district wise availability of electricity on hourly basis (source: Drishtee Foundation 2007)

Uttar Pradesh Avg. Hrs of available electricity per day

Bulandshahr Etah

1-4 Hrs 54.8 % (17 hh) 75.8 % (22 hh)

5-8 Hrs 42.0 % (13 hh) 17.2 % (5 hh)

9-12 Hrs 0 % (0 hh) 3.4 % (1 hh)

NA 3.2 % (1 hh) 3.4 % (1 hh)

Total sample of 60 hh 100 % (31 hh) 100 % (29 hh)

It is common practice among electricity suppliers to deal with the shortage of electricity in rural areas by serving only parts of their supply area for certain time periods in rotation. For this purpose, electricity suppliers even develop pre-defined schedules according to which they are planning to provide energy for defined districts of their supply area. While being only an indication of time periods at which it is planned to provide electricity (and in reality it is then often not even available), these schedules may give an impression on the severe electricity shortage in rural areas. The supply schedule for rural districts of Uttar Pradesh from July until October 2008 is given in the Table 3.

A statement of UP power minister Ram Veer Upadhaya, commenting on protests against massive power cuts in the region in May 2008: “There is a big gap between the demand & supply. Our power stations do not generate required electricity”20.

20 “Protest in Uttar Pradesh against massive power cuts” May 2, 2008. Daily News www.dailynews365.com/national-news/protest-in-uttar-pradesh-a (last accessed on 27/05/2008)

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Table 3: Uttar Pradesh Power Corporation Ltd.: Supply schedule (rural area) for 01/07/2008 until 30/10/2008 (source: http://www.uppcl.org/rostering.htm, last accessed on 10/10/2008)

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Kerosene – the cheapest alternative to electrical light in India: The government of India subsidizes kerosene through a Public Distribution System which allots kerosene rations for fixed prices to holders of a BPL (below the poverty line) card. The price per litre of allotted kerosene in official shops of the Public Distribution System in U.P. and Bihar is approximately 11 Rs per litre21. The official government subsidy to domestic kerosene provided by the Government and oil marketing companies is around 17 Rs per litre22. One ration card allots around 2-3 litres of kerosene per month23. Additional kerosene is available for higher prices in the open market. Kerosene lamps as the ones shown in the left pictures below are easily self made from an old bottle or can and commonly used by rural families. Even the more sophisticated lanterns as the ones in the picture on the right side are relatively cheap and widely available in rural retail shops in Uttar Pradesh and Bihar. Therefore, the cheapest and almost exclusively used alternative source for lighting in rural U.P. and Bihar is kerosene. This is also confirmed by the statistics presented in Table 1 at the beginning of this section.

Homemade kerosene lanterns

Tin, glass and hurricane kerosene

lanterns

Figure 5: Types of kerosene lamps used in the baseline

Finally, it has to be noted that d.light lamps have a light output comparable to wick kerosene lanterns (below 100 lumens)24. Other electrical light sources have a much higher light output (e.g. a 100 Watt incandescent light bulb gives about 1200 lumens.25)

21 National Sample Survey (NSS) Report No. 509, Household Consumption of Various Goods and Services in India, 2004-05, Vol. I: Major States and All-India, 61st Round, National Sample Survey Organisation, Department Of Statistics, Government Of India, April 2007, p. A-153 and A-205

22 Ministry of Petroleum and Natural Gas India. Budget 2007-2008. http://petroleum.nic.in/petstat.pdf (last accessed on 10/10/2008)

23 Drishtee Foundation 2007

24 Light output of a wick kerosene lantern can range from 10-100 lumen depending on the type of lamp and wick

according to Mills (2000) http://www.iaeel.org/iaeel/Newsl/2000/Etttva2000/NatGlob_b_1-2_00.html (last accessed on 10/10/2008) AND according to Jean-Paul Louineau, Modibo Dicko, Peter Fraenkel, Roy Barlow and Varis Bokalders; Rural Lighting: A Guide for Development Workers, Intermediate Technology (IT) Publications in association with The Stockholm Environment Institute 1994, page 31

25 Jean-Paul Louineau, Modibo Dicko, Peter Fraenkel, Roy Barlow and Varis Bokalders; Rural Lighting: A Guide for Development Workers, Intermediate Technology (IT) Publications in association with The Stockholm Environment Institute 1994, page 31

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In conclusion, as shown by national statistics, electricity sector analysis, background information and technical specification of d.light lamps, it is evident that in the absence of the project activity kerosene lamps would have been used.

Step 2: Specific Baseline Technology Fuel Consumption

In order to determine which would be the fuel consumption of kerosene lamps in the baseline to provide the equivalent level of service as the d.light lamps distributed under the project activity it has to be stressed that the amount of kerosene burnt in a lantern correlates linearly and positively with the value of light output26. Thus, the kerosene baseline can conveniently be determined by comparing the delivered light service of solar lamps (in lumens) with the amount of fuel that would be required to achieve a similar light output with a kerosene lantern. Wick kerosene lanterns are most commonly used in the developing world. They exist in various forms from the simple locally made “wick-in-a-can” to the more sophisticated “storm (or hurricane) lanterns” with glass cover. The efficiencies of such lamps tend to be very low27. For hurricane kerosene lanterns Louineau et al (1994)28 state an efficiency range of 0.05 to 0.21 lumen/W. The World Bank states an efficiency of 0.1 lumen/W for hurricane lanterns29. Values for the widely used homemade wick lamps are scarcely available as designs vary. In any case, these homemade lamps have much lower efficiencies than hurricane lanterns28. Another known form of kerosene lantern is the pressurized kerosene lantern which burns vaporized kerosene instead of a wick. Pressurized kerosene lanterns produce much more light (220-1300 lumen – this is comparable to a 40-100W incandescent light bulb!), but also use much more fuel than wick lanterns (0.06-0.08 litres per hour). So, even though they are slightly more efficient, pressurized kerosene lanterns are not used by poor people due to their high capital and running costs.30. According to Louineau et al (1994) they are only used by bar keepers, rich merchants and relatively wealthy traders who can profit by attracting clients with good lighting on their premises. It is therefore assumed that the baseline

26 It was shown in unpublished measurements conducted by Dr. Evan Mills in the Lawrence Berkley National Laboratory on 27 May 2003 that it is basically the thickness of the wick which decides about the fuel consumption

and thus the light output of a lantern.

27 Practical Action, Technical Brief ‘Kerosene and Liquid Petroleum Gas (LPG)’, last modified April 2003, http://practicalaction.org/practicalanswers/product_info.php?cPath=21_64&products_id=142 (last accessed on 10/10/2008)

28 Jean-Paul Louineau, Modibo Dicko, Peter Fraenkel, Roy Barlow and Varis Bokalders; Rural Lighting: A Guide for Development Workers, Intermediate Technology (IT) Publications in association with The Stockholm Environment Institute 1994, page 31

29 Van der Paas, R. and de Graaf, A., A Comparison of Lamps for Domestic Lighting in Developing Countries,

Industry and Energy Department Working Paper, energies series No. 6, World Bank, Washington D.C., USA, June 1988. http://www-wds.worldbank.org/servlet/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&entityID=000009265_3960928135927 (last accessed on 10/10/2008)

30 Jean-Paul Louineau, Modibo Dicko, Peter Fraenkel, Roy Barlow and Varis Bokalders; Rural Lighting: A Guide for Development Workers, Intermediate Technology (IT) Publications in association with The Stockholm Environment Institute 1994, page 26-27

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technology is only wick kerosene lanterns (which have a light output of up to 100 lumens, like d.light lamps). Applying an extremely conservative approach it is assumed that the kerosene lamp model in the baseline is a hurricane lamp. This is conservative since the vast majority of households use self-made kerosene lanterns without a glass cover which are less efficient due to wind disturbance and very basic design. The average efficiency value of 0.13 lumen/watt for hurricane lamps from Louineau et al (1994) is chosen, being again conservative with respect to the lower value of 0.1 lumen/W provided by the World Bank. Accordingly, the energy baseline for each d.light solar lamp will be calculated as the equivalent amount of kerosene that would be needed by a kerosene lamp to achieve a light output similar to the light output of the d.light lamp. The equivalent amount of kerosene is determined by the light intensity of d.light lamps, the lighting efficiency, the daily usage hours, the NCV of kerosene and its density. More precisely the energy baseline is calculated in litres/year as shown in Equation below: Equation 1

ker

3

kerker *6.3

10**

*365*

densNCVLE

hlEB n

n =

Paramete

r

Unit Value Description Source

nEB l/y Equivalent amount of kerosene that would have been consumed in the baseline for solar lamp n during one year

nl lumen 28 (Comet) 43 (Comet plus) 57 (Nova)

Lumen output of solar lamp n deployed as part of the project activity

d.light technicals specifications of current lamp models

h hours/day

3.5 Average number of hours solar lamps are used per day

AMS I.A default

kerLE lumen/W 0.13 The specific light output of kerosene when burnt in a kerosene lantern

Jean-Paul Louineau, Modibo Dicko, Peter Fraenkel, Roy Barlow and Varis Bokalders; Rural Lighting: A Guide for Development Workers, Intermediate Technology (IT) Publications in association with The Stockholm Environment Institute 1994

kerNCV TJ/Gg 43.8 Net Calorific Value (NCV) other kerosene

2006 IPCC Guidelines for National Greenhouse Gas Inventories, volume 2

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Energy

kerdens kg/l 0.81715 Percentage of rural households under the project using kerosene as main source for lighting

www.simetric.co.uk

Step 3: Baseline Emissions

Three options are allowed by methodology AMS I.A. to calculate the annual energy baseline (in kWh per year). The option selected for baseline estimation is Option 3, where the energy baseline is calculated as a trend adjusted projection of historic fuel consumption. This option is acceptable in situations where an existing technology is replaced. As extensively explained above the technology that is being replaced are kerosene lamps. According to Step 2 the energy baseline, being the fuel consumption, is determined as a function of the light intensity of d.light lamps. In order to safeguard that the trend adjusted projection of the historic fuel consumption is not exceeded a cap of 100 lumens for eligible d.light lamp models is introduced. This is particularly reasonable because wick kerosene lanterns can have a light output of 10-100 lumens depending on the type of lamp and size of wick, according to Mills (2000)31 and Louineau et al (1994).32 The paragraphs below substantiate further the choice of the threshold. Trend of fuel consumption: The data of all rounds of National Sample Survey (NSS) reports dating back to the year 1987 show that there has been a clear trend of rising per capita kerosene consumption. The data is presented in the Table 4 for an average sized household (5 members33). All India data has been used since state specific data (for U.P. and Bihar) was not available for all years. This is conservative as U.P. and Bihar are amongst the least developed states with lowest rural electrification rates. The evaluated figures in the table show that a rural family dependent on kerosene for lighting was consuming in average 6.98 litres of kerosene per month in 2004, while in 1987 it was still only 3.85 litres per month. It can be assumed that close to 100% of a households kerosene consumption are dedicated to lighting, since only 1% of rural households in Bihar and only 2% of rural households in U.P. use kerosene for cooking 34.

Table 4: Kerosene consumption of households that use kerosene for lighting in all India, rural (source: own evaluation of NSS data)

31 Mills (2000) http://www.iaeel.org/iaeel/Newsl/2000/Etttva2000/NatGlob_b_1-2_00.html (last accessed on 10/10/2008)

32Jean-Paul Louineau, Modibo Dicko, Peter Fraenkel, Roy Barlow and Varis Bokalders; Rural Lighting: A Guide for Development Workers, Intermediate Technology (IT) Publications in association with The Stockholm Environment Institute 1994

33 Census of India 2001

34 NSS report No. 511

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year value unit

1987 3.85 L/month

1993 5.48 L/month

1999 8.10 L/month

2004 6.98 L/month

For the trend adjusted projection of the historic data an extrapolation is provided in Figure 6. Population and economic growth, on a short term, grow exponentially. Consumption growth, being driven by economic and population growth, also grows exponentially. Therefore, an exponential function was chosen to explain the historical and predict the future consumption of kerosene. The extrapolated trend shows clearly that the average monthly consumption of kerosene per rural household from today onwards will always be above 9 litres. On the other hand, applying the approach discussed under Step 2 to a hypothetical lamp with an output of 100 lumen a monthly kerosene consumption of 8.12 litres is calculated applying Equation 1 and dividing the result by 12. Hence, applying a cap of 100 lumen to eligible d.light lamp models under the project guarantees that the corresponding baseline fuel consumption does not exceed the trend adjusted historic fuel consumption.

Historic and Extrapolated Kerosene Consumption in

Rural India

0

2

4

6

8

10

12

14

1987 1992 1997 2002 2007 2012

year

mo

nth

ly h

ou

se

ho

ld

ke

ros

en

e c

on

su

mp

tio

n

(lit

ers

)

Trend adjustedprojection

Historic Data

100 lumen treshold

Figure 6: Trend of kerosene consumption of households that use kerosene for lighting in all India, rural (source:

own evaluation of NSS data)

Baseline calculation: For calculation of the energy baseline and the comparison with historic fuel consumption above it was necessary to determine volumetric values of kerosene consumption. Therefore, the NCV and density of kerosene were applied to the energy content (Wh) of the kerosene consumed in the baseline. For calculating the baseline emissions IPCC emission factors are available for direct application to the energy content of the fuel consumed. Hence, the calculation of volumetric kerosene consumption can be omitted

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for the calculation of baseline emissions and CO2 emissions can be calculated directly applying the IPCC emission factor to the energy content of baseline kerosene consumption. This results in a simplified formula for calculation of yearly baseline emissions per solar lamp which is provided in Equation 2: Equation 2

6

ker

ker

10*

**365*

LE

EFhlBE n

n =

Paramete

r

Unit Value Description Source

nBE tCO2 Baseline emissions for solar lamp n : Emissions that would have been generated in the baseline during one year

nl lumen 28 (Comet) 43 (Comet plus) 57 (Nova)

Lumen output of solar lamp n deployed as part of the project activity

d.light technicals specifications of current lamp models

h hours/day 3.5 Average number of hours solar lamps are used per day

AMS I.A default

kerLE lumen/W 0.13 The specific light output of kerosene when burnt in a kerosene lantern

Jean-Paul Louineau, Modibo Dicko, Peter Fraenkel, Roy Barlow and Varis Bokalders; Rural Lighting: A Guide for Development Workers, Intermediate Technology (IT) Publications in association with The Stockholm Environment Institute 1994

kerEF tCO2/MWh

0.25884 The specific CO2-emissions of kerosene

2006 IPCC guidelines for National Greenhouse Gas inventories

Baseline emissions per existing lamp type and maximum baseline emissions for future lamp types (cap of 100 lumen) are presented in Table 5 below. For possible new d.light solar lamp models the energy baseline will be calculated accordingly, respecting the mentioned 100 lumen cap on the light output to ensure that the kerosene baseline is realistic. The baseline emission of 0.2544 tCO2/year corresponding to the 100 lumen cap also guarantees that the eligibility criterion of a maximum emission reduction of 5 tCO2/year per renewable energy based lighting system, as stipulated by AMS I.A, is respected.

Table 5: Emission reductions per lamp model (source: own calculations)

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parameter unit values

NOVA Comet Solar

Comet Solar Plus

Reference Cap

Light output lumen 57 28 43 100

Amount of kerosene substituted/ month L/month 4.70 2.31 3.54 8.24

Emission reductions in tCO2 per year tCO2/year 0.1450 0.0712 0.1094 0.2544

B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below

those that would have occurred in the absence of the registered small-scale CDM project activity:

The additionality of the project activity is demonstrated and assessed using the latest version of the “Tool for the demonstration and assessment of additionality” (Version 5, EB 39- Annex 10). The 5 steps of the tool will be applied for the demonstration of additionality:

Step 1: Identification of alternatives to the project activity consistent with current laws and regulations

Sub-step 1a. Define alternatives to the project activity

Alternative 1 The proposed project activity is not undertaken as a CDM project activity

Alternative 2 Continuation of the current situation, where rural households with insufficient access to electricity in Uttar Pradesh and Bihar use kerosene as their main source for lighting.

Sub-step 1b. Consistency with mandatory laws and regulations

All alternatives are in compliance with relevant mandatory laws and regulations.

Step 3: Barrier analysis

Sub-step 3a: Identify barriers that would prevent the implementation of the proposed CDM

project activity

The following barriers prevent the implementation of the proposed project activity from being carried out if it is not registered as a CDM activity: Investment barriers

The project activity could not access appropriate capital without consideration of the CDM revenues. CDM revenues were critical to obtain equity from private investors, as shown by written statements of private investors in d.light’s project.

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d.light design is a young start up company with a high risk profile. It was founded by a group of US entrepreneurs for the sole purpose to design, manufacture and distribute high efficiency rechargeable solar and AC lamps to underserved rural households - with the intention of eradicating kerosene lanterns. Neither the company nor its founders have a track record in similar business or any business in the region. The founders could not raise debt financing through bank loans since no financial resources or collaterals that might serve as guarantees for conventional financing institutions are available. As indicated d.light design did not have access to traditional sources of finance because it could not provide any guarantees. It is notable that even though such guarantees had been in reach no debt finance would have been accessible because the company IRR without CERs is negative. Consequently d.light is 100% equity financed by venture capital firms, social funds and a number of individuals who believe in d.light’s vision and in its potential to create additional income through the CDM. d.light’s investors can be principally divided into three groups. Group I provided seed investment as part of a renowned venture capital prize that was won by d.light’s founders for their business idea in mid 2007 at a very early stage. In the second half of 2007, additional investors committed to d.light helping to bring the company to the next level. Both groups were issued convertible notes for the provided capital which will convert into equity when the on-going third round of investment (Series A) is finalized. The following statements are extracted from official letters of three of d.light’s main investors: “Our pre-investment analysis included the benefits of carbon credits and the resulting potential for deeper market penetration. This helped the d.light design investment meet our hurdle rate and enabled us

to partner with you to supply sustainable and affordable lighting to “base of the pyramid” customers.”

“Without the contribution of carbon credits, d.light won’t be able to substantially penetrate the very

large market opportunity for providing lighting to families earning less than $2 per day because the cost of making and delivering lighting to those markets is just too high otherwise. Without access to that

market, we could not project a return that would meet our threshold.”

“In particular, we do think that the carbon strategy, and the ability to earn CERs is central to your business plan and our investment decision. To be clear, there is still a “gap” between what the poor can

and will pay for a consumer product such as an LED light and the price that d.light needs to charge to make the endeavor viable. This is one of the key reasons why Solar & LED lighting products haven’t

gone to significant scale. In looking at d.lights strategy, which involves very aggressive distribution and ramp up I’m concerned that the financial incentives would not be there without the potential for CERs.

So I do consider them to be central to the business plan and necessary to attract commercial capital.” Therefore, for investors in d.light design, carbon finance was essential in their decision to invest. Investors consider that without the contribution of carbon credits, d.light would not be able to substantially penetrate the very large market opportunity for providing lighting to families earning less than $2-3 per day, because the cost of producing and delivering lighting to those markets would be too high otherwise. Without access to that market, investors could not project a return that would meet their IRR threshold. It is clearly shown that without the potential for CERs d.light would not have been able to attract its current investors, not to mention traditional finance institutions. Technological barriers

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d.light’s solar systems incorporate the latest range of LED and solar technologies that are not common or affordable in developing countries, specifically in rural communities. There is a very high demand worldwide for new solar and LED technologies in developed countries35. As developed countries can pay higher prices, most products are sold to these more profitable markets instead of developing countries with more adjusted margins. Besides, solar pricing becomes more competitive on high wattage systems, providing lower prices per installed watt for solar panels over 10W. Demand pressures are pushing prices of solar panels higher, as shown by increasing prices on invoices by solar panel suppliers. Prices per watt have increased substantially (up to 60% from some suppliers) in less than one year.

Barriers due to prevailing practice As shown in section B.4, there exists no convenient replacement for kerosene as a source for lighting in Indian rural areas because the public electricity system fails to reach rural customers on large scale and cannot provide them with uninterrupted power. Consequently, the prevailing practice in most rural houses is reliance on kerosene to perform their daily activities: housekeeping, studying, cattle keeping and other income generating activities. The government of India subsidizes kerosene for through uniformly lowering its price. The resultant excess demand has been dealt with by rationing the commodity through parallel distribution arrangements – the PDS (Public Distribution System)36. The official government subsidy provided via de PDS is complemented by an additional subsidy from oil marketing companies. The total subsidy comes to around 17 Rs per litre37. In addition to subsidies on kerosene, the Government also exempts kerosene from the VAT tax which ranges from 4 to 12.5% on various items, and which d.light has to pay for its products, placing them in a competitive disadvantage against fossil fuels. The States of Uttar Pradesh and Bihar lag behind the national average of most development indicators. 33% of the rural population in U.P. and 42.1% of the rural population in Bihar live below the poverty line according to the Government of India (2007)38 All India average lies at 28.3% . Because of low incomes people struggle to stem high initial investments for solar lighting solutions. Consequently solar lighting systems of a comparable quality are practically not available in local retailers’ assortments. Rural households in U.P. and Bihar have traditionally been excluded from technological advances, due to the high cost of creating distribution channels that can reach them, and because of their low purchasing power. The availability of kerosene subsidies and the possibility to build homemade kerosene lamps or buy them in every town market at a low price make the population resistant to change for a new, unknown, and more technologically advanced product with a higher initial cost.

35 www.worldwatch.org/node/5449 (last accessed on 27/05/2008)

36 Morris, Pandey and Marua (2007) A scheme for efficient subsidisation of kerosene in India. Indian Institute of Management Ahmedabad. http://www.iimahd.ernet.in/publications/data/2006-07-06smorris.pdf (last accessed on 13/10/2008)

37 Ministry of Petroleum and Natural Gas India. Budget 2007-2008. http://petroleum.nic.in/petstat.pdf (last accessed on 27/05/2008)

38 http://planningcommission.nic.in/news/prmar07.pdf (last accessed on 10/10/2008)

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Other barriers: Organisational and administrative barriers

• Customs: Imports to India face significant barriers, as high duties, transportation costs, and many obstacles arise that can delay, stop or increase the price of shipments. Customs valuation and the way it is carried out in India are considered as a trade barrier by the private sector for the imports of goods39. A survey conducted in 2004-2005 as part of an ARTNeT/RIS study on trade facilitation identified customs valuation as the key problem in India for the trading community. The key problem areas of Indian customs identified by the respondents of a survey in the framework of the referenced UNDP study are: (a) customs valuation (19 per cent); (b) inspection and release of goods (18 per cent); (c) tariff classification (16 per cent); and (d) submission of documents for clearance (14 per cent).

• Company Set-Up: Barriers in finding the right carry and forwarding agents, clearing agents, building the right team to take on the complex and huge Indian market and going through administrative requirements to start a company in India.

• Distribution: Obstacles in finding good distributors with a suitable dealers network and willing to take the risk of distributing a new product, from a new company to the very disperse and low income rural market. At the village level, barriers to signing on local dealers arise from unavailability of adequate storage space for stocks and banking services.

In conclusion the barriers that would have prevented the project activity to be implemented without the substantial additional revenues from CDM are:

a. d.light could not access finance without the prospects of higher sales volumes and additional revenues thanks to CER income.

b. Increasing prices for solar panels and comparatively high margins in industrialized countries prevent solar technology from disseminating into rural Uttar Pradesh.

c. Heavy subsidies on kerosene and low household incomes in Uttar Pradesh result in a prevailing practice of using kerosene for lighting.

d. Obstacles and arbitrariness in Indian customs as well as distribution to rural customers obstruct the introduction of new consumer products for rural markets.

Sub-step 3b: Show that the identified barriers would not prevent the implementation of at least

one of the alternatives

Alternative 1: The proposed project activity is not undertaken as a CDM project activity. Alternative 1 is addressed in step 3a.

39 UNDP, United Nations ESCAP. “Trade facilitation beyond the multilateral trade negotiations: regional practices, customs valuation and other emerging issues”. http://www.unescap.org/publications/detail.asp?id=1258 (last accessed on 10/10/2008)

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Alternative 2: Continuation of the current situation, where rural households with insufficient access to electricity in Uttar Pradesh and Bihar use kerosene as their main source for lighting. This alternative is not affected by the identified barriers.

Step 4: Common practice analysis

Sub-step 4a: Analyze other activities similar to the proposed project activity

d.light design is potentially the first initiative to provide light from renewable sources on large scale to rural communities developed completely by the private sector, with no official development aid or funds from NGOs. Its aim is to target the mass market in rural Uttar Pradesh and Bihar by producing high volumes at competitive prices, which can only be achieved with the additional income from carbon credits. No other similar private sector initiatives have been observed to reach scale and access a large rural population. On the other hand even ODA, governmental or NGO funded programs have not been able to make energy efficient, renewable lighting solutions widely accessible to the rural population yet. An ambitious initiative is the program Lighting a Billion Lives of the renowned Indian energy and research institute TERI which was launched in September 2007. This program is subsidized by the Indian government and private donors40 - still, TERI has indicated that they will seek CDM registration on the mid term to secure additional funding. Another known large scale initiative to supply people in rural India with PV based LED lighting systems (300,000 lamps) is currently being developed by the NGO Dalit REDS in the state of Karnataka.41 This program has been developed as a CDM project from the very beginning and is currently seeking registration under the title Rural Education for Development Society (REDS) CDM Photovoltaic Lighting

Project.

Sub-step 4b: Discuss any similar Options that are occurring Comparable private experiences of solar lights deployment have failed to reach a significant volume due to their unaffordability and low penetration rates to rural customers. Activities comparable to the proposed project in scope and scale are exclusively being carried out by research institutions or NGOs that are dependent on additional finance from the Indian government or private donors. In addition, many of them are being developed as CDM projects as well.

B.6. Emission reductions:

B.6.1. Explanation of methodological choices:

40 http://labl.teriin.org/ (last accessed on 19/09/2008)

41 http://www.dalitreds.org/about.aspx (last accessed on 19/09/2008)

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According to methodology AMS-I.A “Electricity generation by the user” (version 13), the energy baseline for the project is the fuel consumption of the technology in use or that would have been used in the absence of the project activity to generate the equivalent quantity of energy. In case of renewable energy lighting applications the equivalent level of lighting service is to be considered instead of energy. The following methodological approach has been chosen to calculate the baseline emissions and emission reductions: Option 3: The baseline can be a trend adjusted projection of historic fuel consumption. This is acceptable in situations where an existing technology is replaced. For the specific case of lighting devices a daily usage of 3.5 hours shall be assumed, unless it is demonstrated that the actual usage hours adjusted for seasonal variation of lighting is different based on representative sample surveys (90% confidence interval +/-10% error) done for minimum of 90 days. In accordance with the explanations in section B.4. the generic formula presented under Equation 3 applies to calculate emission reductions. It explicitly takes into account that “the equivalent level of lighting service is to be considered instead of energy” (footnote 3 of AMS I.A version 13). The formula is further refined in sections B.6.3 and B.7.2 for the purpose of ex-ante and ex-post emission reduction calculations. As no project emissions or leakage occur emission reductions equal the baseline emissions. Equation 3 below is developed as follows: To arrive at the exact amount of tCO2 reduced by each solar lamp the chosen approach according to AMS I.A version 13 is calculating the amount of kerosene that would have been needed to generate an “equivalent level of lighting service”. In this context service is considered to be the output of an equivalent amount of light (lumen) during an equivalent number of hours. Through application of the luminous efficiency (lumen/W) of kerosene lamps the energy content of the amount of kerosene (Wh) that would have been consumed in the absence of the solar lamp is calculated. By multiplication with the specific emission factor of kerosene (tCO2/MWh) the baseline emissions for the particular lamp are calculated. In accordance with baseline option 3 of AMS I.A version 13 and as explained in section B.4 the yearly baseline emissions (= emission reductions) for each lamp deployed are below the trend adjusted historic emissions through application of a 100 lumen threshold for solar lighting systems accepted under the project activity. The total baseline emissions are the sum of baseline emissions of all solar lamps deployed. Equation 3

∑ −

=

n

vnv pEFLE

hdlBE ker

6

ker

ker

*10*1

***

Paramete

r

Unit Description

vBE tCO2 Emissions generated in the absence of the project activity in period v

nl lumen Lumen output of solar lamp n deployed as part of the project activity

vd days Average number of days lamps have been deployed in period v

h hours/day Average number of hours solar lamps are used per day

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kerLE lumen/W The specific light output of kerosene when burnt in a kerosene lantern

kerEF tCO2/MWh

The specific CO2-emissions of kerosene

kerp % Percentage of rural households under the project using kerosene as main source for lighting

B.6.2. Data and parameters that are available at validation:

Data / Parameter: kerLE (ID 1)

Data unit: lumen/W

Description: The specific light output of kerosene when burnt in a kerosene lantern

Source of data used: Jean-Paul Louineau, Modibo Dicko, Peter Fraenkel, Roy Barlow and Varis Bokalders; Rural Lighting: A Guide for Development Workers, Intermediate Technology (IT) Publications in association with The Stockholm Environment Institute 1994

Value applied: 0.13

Justification of the choice of data or description of measurement methods and procedures actually applied :

Louineau et al (1994) state an efficiency range of 0.05 to 0.21 lumens/W for hurricane kerosene lanterns. Another study by the World Bank states an efficiency of 0.1 lumen/W for hurricane lanterns42. Values for the widely used homemade wick lamps are scarcely available as designs vary. Anyway, these lamps have much lower efficiencies than hurricane lanterns43. It is assumed that the kerosene lamp model in the baseline is a hurricane lamp. This is conservative since the vast majority of households use self-made kerosene lanterns without a glass cover which are less efficient due to wind disturbance and very basic design. The average efficiency value of 0.13 lumen/watt for hurricane lamps from Louineau et al (1994) is chosen, being conservative with respect to the lower value of 0.1 lumen/W provided by the World Bank.

Any comment:

Data / Parameter: kerEF (ID 2)

Data unit: tCO2/MWh

Description: CO2 emission factor of kerosene

Source of data used: 2006 IPCC guidelines for National Greenhouse Gas inventories

Value applied: 0.25884

Justification of the choice of data or

The default value of residual fuel oil in 2006 IPCC guidelines for National Greenhouse Gas Inventories is 71,900 tCO2/TJ. This equals 0,25884

42 Van der Paas, R. and de Graaf, A., A Comparison of Lamps for Domestic Lighting in Developing Countries,

Industry and Energy Department Working Paper, energies series No. 6, World Bank, Washington D.C., USA, June 1988. http://www-wds.worldbank.org/servlet/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&entityID=000009265_3960928135927 (last accessed on 10/10/2008)

43 Jean-Paul Louineau, Modibo Dicko, Peter Fraenkel, Roy Barlow and Varis Bokalders; Rural Lighting: A Guide for Development Workers, Intermediate Technology (IT) Publications in association with The Stockholm Environment Institute 1994, page 31

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description of measurement methods and procedures actually applied :

tCO2/MWh.

Any comment:

Data / Parameter: kerNCV (ID 3)

Data unit: TJ/Gg

Description: Net Calorific Value (NCV) other kerosene

Source of data used: 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2: Energy, Table 1.2

Value applied: 43.8

Justification of the choice of data or description of measurement methods and procedures actually applied :

The value for other kerosene is chosen as kerosene used in rural Indian households has a very low quality.

Any comment: NCVker is used as a fixed value in the calculation of the energy baseline in section B.4.

Data / Parameter: kerdens (ID 4)

Data unit: kg/l

Description: Density of kerosene (other)

Source of data used: www.simetric.co.uk

Value applied: 0.81715

Justification of the choice of data or description of measurement methods and procedures actually applied :

A standard value is chosen as no separate values for jet kerosene and other kerosene are available. This does not distort calculations because densker is not used to determine emission reductions. It is only applied in a comparative analysis of the energy baseline in section B.4 in the denominator where an undetermined value (jet vs. other) is conservative.

Any comment: densker is used as a fixed value in the calculation of the energy baseline in section B.4.

Data / Parameter: h (ID 5)

Data unit: hours/day

Description: Average operating hours of solar lighting system per day

Source of data used: Default value from par.7(c) of AMS I.A version 13

Value applied: 3.5

Justification of the choice of data or description of measurement methods and procedures actually applied :

AMS I.A version 13 par.7(c) states: For the specific case of lighting devices a

daily usage of 3.5 hours shall be assumed, unless it is demonstrated that the actual usage hours adjusted for seasonal variation of lighting is different based

on representatives sample survey (90% confidence interval +/-10% error) done for minimum of 90 days.

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In practice usage of more than 3.5 hours/day is expected. A representative sample survey (90% confidence interval +/-10% error) may be conducted once a sufficient number of solar lighting systems has been sold. The results of such a one-time survey shall be checked during the following periodic verification by the contracted DOE and shall afterwards permanently replace the default value in this table.

Any comment:

Data / Parameter: prenl , (ID 6)

Data unit: lumen

Description: Lumen output of solar lamp n deployed as part of the project activity

Source of data used: d.light specifications of present lamp models

Value applied: 28 (Comet) 43 (Comet plus) 57 (Nova)

Justification of the choice of data or description of measurement methods and procedures actually applied :

The lumen output for present lamp models Comet, Comet plus and Nova is determined by their design and technical specification.

Any comment: The given values are not exclusive as d.light will improve existing models and also introduce new models. Specifications of improved or new models will be monitored separately as described in section B.7.1. The values in this table are introduced only for the purpose of calculating ex-ante emission reductions.

Data / Parameter: kerp (ID 7)

Data unit: %

Description: Percentage of rural households under the project using kerosene as main source for lighting

Source of data used: National Sample Survey (NSS) Organisation of the Ministry of Statistics and Programme Implementation of the Government of India, Energy Sources of Indian Households for Cooking and Lighting, 2004-2005

Value applied: 82.15

Justification of the choice of data or description of measurement methods and procedures actually applied :

The NSS 2004-2005 is the most recent official source of data regarding the lighting practices in rural India. In U.P. 74.9% of rural households use kerosene as their main source for lighting. The respective value for Bihar is 89.4%. As the distribution of sales between the states of U.P. and Bihar is still unclear an average of the two penetration rates is applied for ex-ante calculations. This is still conservative as in reality almost 100% of users of solar lighting systems will be households that previously used kerosene as their main source for lighting. In order to improve accuracy and as in practice a much bigger share of former kerosene users is expected to purchase the solar lighting systems a representative sample survey (90% confidence interval +/-10% error) may be

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conducted once a sufficient number of solar lighting systems has been sold. The results of such a one-time survey shall be checked during the first periodic verification by the contracted DOE and shall permanently replace the NSS 2004-2005 value in this table.

Any comment:

Data / Parameter: pred ,2009 (ID 8)

Data unit: days

Description: Average number of days lamps are expected to be deployed in 2009

Source of data used: d.light sales projections 2009

Value applied: 80

Justification of the choice of data or description of measurement methods and procedures actually applied :

The average number lamps are expected to be deployed in 2009 is directly derived from d.light’s quarterly sales projections in the table below.

Q12009 Q22009 Q32009 Q42009

Nova Solar 9,458 141,867 189,156 236,445

Comet Solar 5,517 82,756 110,341 137,926

Comet Solar Plus 788 11,822 15,763 19,704

In order to be conservative it is assumed that all lamps are sold at the last day of the respective quarter, i.e. 274, 183, 92 and 0 days of operation are assumed for quarters Q1-Q4 respectively. The average number of days lamps of a certain type will be deployed is calculated as the weighted average according to their sales volumes per quarter. As the share of different models in quarterly sales is expected to be fix the same value results for Comet, Comet plus and Nova lamps.

Any comment: This value is exclusively used for the purpose of ex-ante emission reduction calculation.

Data / Parameter: z (ID 9)

Data unit: n/a

Description: Standard normal for a confidence level of 95%

Source of data used: Köhler, Schachtel, Voleske, 2002; Biostatistik, Springer Verlag Berlin Heidelberg; Tafel V, p. 283

Value applied: 1.96

Justification of the choice of data or description of measurement methods and procedures actually applied :

This is the standard value for standard normal for a confidence level of 95%.

Any comment:

B.6.3 Ex-ante calculation of emission reductions:

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There are no leakage or project emissions, therefore emission reductions are similar to baseline emissions. Ex-ante baseline emissions are calculated separately for each lamp type according to Equation 4 below. Equation 4

∑ −

=

n

vprenv pEFLE

hdlBE ker

6

ker

ker

, *10*1

***

Paramete

r

Unit Value Description

vBE tCO2 Emissions generated in the absence of the project activity in period v

prenl , Lumen 28 (Comet) 43 (Comet plus) 57 (Nova)

Lumen output of solar lamp n deployed as part of the project activity

vd Days

=

=

2010,

2009,

365

,2009

v

vdd

pre

v Average number of days lamps have been deployed in period v

h hours/day 3.5 Average number of hours solar lamps are used per day

kerLE lumen/W 0.13 The specific light output of kerosene when burnt in a kerosene lantern

kerEF tCO2/MWh

0.25884 The specific CO2-emissions of kerosene

kerp % 82.15 Percentage of rural households under the project using kerosene as main source for lighting

The expected operational lifetime of each solar kit is 5 years. Therefore, for ex-ante calculations only solar systems with an age of less than 5 years are taken into account, i.e. from 2015 onwards no emission reductions are expected. The project proponents only plan to sell systems until end of 2009 under the present project activity. For systems sold in later years a Programme of Activities (PoA) is being developed in parallel. In the unlikely case that the PoA is not registered by end 2009 the project proponents may chose to sell additional systems under the present project activity during an extended period until the PoA becomes operational. In any case, the threshold of 15MW installed capacity will not be exceeded in this small scale project. Applying Equation 4 above on the expected sales volumes (see description d2009,pre) of each present lamp type the following annual emission reductions are estimated ex-ante:

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Table 6: Projected annual emission baseline per prototype lamp model (source: own calculations)

Actual emission reductions from expected sales in 2009 (5 year lifetime of products assumed) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Baseline Emissions Nova solar 15,061 68,715 68,715 68,715 68,715 53,654 0 0 0 0

Baseline Emissions Comet Solar Plus

947 4,320 4,320 4,320 4,320 3,373 0 0 0 0

Baseline Emissions Comet Solar 4,316 19,690 19,690 19,690 19,690 15,375 0 0 0 0

Total Baseline Emissions (tCO2/year)

20,323 92,725 92,725 92,725 92,725 72,402 0 0 0 0

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B.6.4 Summary of the ex-ante estimation of emission reductions:

Year Estimation of

project activity

emissions (tCO2-eq)

Estimation on

baseline emission

(tCO2-eq)

Estimation of

leakage

(tCO2-eq)

Estimation of

overall emission

reduction

(tCO2-eq))

2009 0 20,323 0 20,323

2010 0 92,725 0 92,725

2011 0 92,725 0 92,725

2012 0 92,725 0 92,725

2013 0 92,725 0 92,725

2014 0 72,402 0 72,402

2015 0 0 0 0

2016 0 0 0 0

2017 0 0 0 0

2018 0 0 0 0

Total 0 463,625 0 463,625

Estimated emission reductions fade out after 2014, because the calculation is based on expected sales numbers of 2009 only44 and assuming a five year lifetime of the lamps. d.light is planning to sell more lamps in the years following 2009 under a separate CDM program of activities which is expected to be registered after the first year pilot project under this PDD.

B.7 Application of a monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored:

Data / Parameter: iL (ID 10)

Data unit: Lumen

Description: Generic lamp light intensity of lamp type i deployed in the project

Source of data to be used:

Laboratory measurements

Value of data 28 (Comet) 43 (Comet plus) 57 (Nova)

Description of measurement methods and procedures to be applied:

Light intensity of each lamp type which is in use will be measured once per lamp type by an independent laboratory. Only lamp types with a light intensity of less or equal than 100 lumen are eligible.

44 In 2009 the lamps will not yet generate the full amount of carbon credits because the lamps are expected to be sold (and thus start operation) continuously over the whole year. The emission reduction for 2009 are estimated based on the sales targets of d.light for 2009.

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QA/QC procedures to be applied:

The laboratory conducting measurements shall be an independent entity with a proven record in performing this type of measurements.

Any comment: If lamp types allow for different settings of light intensity the conservative value shall be chosen unless an accurate average value is substantiated through a representative sample survey (90% confidence interval +/-10% error).

Data / Parameter: GI (ID 11)

Data unit: General information on solar systems

Description: Serial number, type of solar kit, date of clearance (d.light warehouse),

Source of data to be used:

Primary data collection: d.light; database maintenance: d.light

Value of data

Description of measurement methods and procedures to be applied:

For each solar lighting system the warehouse administrator will store electronically or on paper the serial number, the type and the date when the system leaves the warehouse. Subsequently information will be added to the database.

QA/QC procedures to be applied:

Data will be collected using the standard procedures and will be stored for the crediting period and an additional two years.

Any comment:

Data / Parameter: aiN , (ID 12)

Data unit:

Description: Total number of solar lamps of type i deployed in period a

Source of data to be used:

Primary data collection: d.light; database maintenance: d.light

Value of data

Description of measurement methods and procedures to be applied:

The value is calculated by d.light based on general information (GI) from the database. The deployment date of a single solar system is calculated as its date of clearance + disdel .

QA/QC procedures to be applied:

Data will be collected using the standard procedures and will be stored for the crediting period and an additional two years.

Any comment:

Data / Parameter: deldis (ID 13)

Data unit: days

Description: Average delay in lamp distribution from warehouse to user

Source of data to be used:

Primary data collection: d.light, local retailer, dealer or distributor; database maintenance: d.light

Value of data

Description of measurement methods and procedures to be

A one time sampling campaign will be conducted determining the average amount of days between the date lamps leave the d.light warehouse (date of clearance) and the date when they are actually commissioned by the user.

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applied:

QA/QC procedures to be applied:

A 95% confidence level will be applied to assure data quality. Data will be collected using the standard procedures and will be stored for the crediting period and an additional two years.

Any comment: The value shall be provided only once during first periodic verification and may be kept for the rest of the crediting period thereafter.

Data / Parameter: ais , (ID 14)

Data unit: General information on sample group for lamps of type i commissioned in period a

Description: Date of clearance, serial number of solar kit sold to household in the sample, name of customer, address of household

Source of data to be used:

Primary data collection: d.light, local retailer, dealer or distributor; database maintenance: d.light

Value of data

Description of measurement methods and procedures to be applied:

Households to be included in the sample group will be selected randomly. Random selection may be realised in two steps: Firstly, a number of villages, distributors or retailers will be randomly selected. Secondly, households will be randomly selected from these villages, distributors or retailers initially selected. To yield statistically representative results the target minimum size of each sample group is 100 households.

QA/QC procedures to be applied:

Data will be collected using the standard procedures and will be stored for the crediting period and an additional two years

Any comment:

Data / Parameter: totalvain ,,, (ID 15)

Data unit: Total number of lamps in checked sub-group of sample si,a in period v

Description: Total number of lamps in checked sub-group of sample si,a in period v

Source of data to be used:

Primary data collection: dedicated monitoring team Database maintenance: d.light

Value of data

Description of measurement methods and procedures to be applied:

In each verification period v out of each sample group si,a a sub-group of at least 60 households is contacted for sampling.

QA/QC procedures to be applied:

Data will be collected using the standard procedures and will be stored for the crediting period and an additional two years. Eventually, data of a visited household shall be updated in si,a, e.g. if the household address has changed.

Any comment:

Data / Parameter: loperationavain ,,, (ID 16)

Data unit: Number of lamps operational in checked sub-group of sample si,a in period v

Description: Number of lamps operational in checked sub-group of sample si,a in period v

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Source of data to be used:

Primary data collection: dedicated monitoring team Database maintenance: d.light

Value of data

Description of measurement methods and procedures to be applied:

Households from the sub-group will be personally contacted to confirm if the solar system is still operational.

QA/QC procedures to be applied:

Data will be collected using the standard procedures and will be stored for the crediting period and an additional two years. Eventually, data of a visited household shall be updated in si,a, e.g. if the household address has changed.

Any comment:

B.7.2 Description of the monitoring plan:

According to small scale methodology I.A. monitoring shall consist of (a) an annual check of all systems or a sample thereof to ensure that they are still operating. Due to the high number of systems to be deployed an annual check of all systems is not economically feasible and therefore a sample will be monitored to ensure that all the systems deployed are still operating or to record end of operation of the systems. The following three databases will be operated and maintained by d.light to ensure completeness and accuracy of monitoring information:

• Solar systems deployed database

• Sample database for deployed solar systems

• Periodical checks database for sample of deployed solar systems The table below shows the main characteristics of each database: collected data, parties involved, periodicity and format.

Table 7: Monitoring data base overview (source: own description)

DB1

Solar systems

deployed

DB2

Samples for deployed solar

systems

DB3

Periodical checks for

sample of deployed solar

systems

Type of solar kit sold Type of solar kit sold Serial number of solar kit checked

Serial number of solar kit sold

Serial number of solar kit sold to household in the sample

Date of the check

Date of clearance Date of clearance Continuous operation of solar kit (yes/no)

Collected

data

Household details (Name, Address, etc.)

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Primary data collection: d.light

Primary data collection: d.light, local retailer, dealer or distributor

Primary data collection: Monitoring team

Parties

involved

Database maintenance: d.light

Database maintenance: d.light Database maintenance: d.light

Periodicity Continuous Continuous Once per verification period

Paper or electronic for primary data

Paper or electronic for primary data

Paper or electronic for primary data

Format

Electronic database Electronic database Electronic database

In order to ensure accuracy and completeness of the information retrieved by local retailers or dealers, the criteria for selecting distributors of d.light solar systems will also take into account their access and ability to accurately provide updated records of sales and customers.

Sampling methodology

There will be one sample group per type of solar system sold per verification period. Accordingly, in a given verification period the amount of sample groups per type of lamp equals the number of verification periods including the current one. To yield statistically representative results the target minimum size of each sample group is 100 households. At least 60 households of each group must be interviewed during sampling considering that in some households all members of the household might be temporarily absent when sampling takes place. Figure 7 below illustrates the relation of magnitudes within the sample group of lamps of type i sold in period a (si,a >100). ni,v,a,total is the total number of lamps that could be reached during monitoring in period v (>60) and ni,v,a,operational is the number of these lamps that were still operational.

si,ani,v,a,totalni,v,a,operational

Figure 7: Overview sample group and monitoring sub-groups (source: own drawings)

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Households to be included in the sample groups for deployed solar systems will be selected randomly. Random selection may be realised in two steps: Firstly, a number of villages, distributors or retailers will be randomly selected. Secondly, households will be randomly selected from these villages, distributors or retailers initially selected. Continuous operation of the solar systems only depends on the technical characteristics of each system and on how each household treats it. Therefore, no geographic representativeness is deemed necessary for the selection of households participating in these sample groups. Ex post baseline emissions will be calculated separately for each lamp type i according to Equation 5 that introduces statistical factors obtained from sampling and fixed lumen output per lamp type to the approach presented in Equation 3.

1. Baseline emissions from one lamp type i in period v are the sum of the baseline emissions of sub-groups of this lamp type sold in periods 1… v . The rationale is that the share of lamps that are still operational will be different depending on their age. As explained above: for each lamp type i one sample group si,a is established per period a .

2. Since all lamps of the same type i have the same lumen output Li the total lumen output of lamps of type i sold in period a can be calculated by multiplying Li with Ni,a , the total number of lamps of this type sold in period a. The obtained value is corrected by the factor CFi,a,v that represents the share of these lamps that were found to be operational through sampling in the current period v.

3. The remainder of the formula is developed in the same manner as in Equation 3. Equation 5

∑=

=

v

a

vaiivaiaivi pEFLE

hdLCFNBE1

ker

6

ker

ker

,,,,,, *10**1

*****

Paramete

r

Unit Type Description

viBE , tCO2 calculated Emissions generated in the absence of the project activity in period v by lamps of type i

aiN , monitored The total number of solar lamps of type i deployed in period a

vaiCF ,, calculated This factor corrects the total number of lamps of type i deployed in period a by the share of these lamps that were found to be operational according to the sampling in period v. The statistical error is included in this parameter (confidence level 95%).

iL lumen monitored (once per lamp type)

Nominal lumen output of solar lamps of the type i deployed as part of the project activity

avid ,, days calculated Average number of days lamps of type i that have been deployed in period a were operating in period v

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h hours/day fixed Average number of hours solar lamps are used per day

kerLE lumen/W fixed The specific light output of kerosene when burnt in a kerosene lantern

kerEF tCO2/MWh

fixed The specific CO2-emissions of kerosene

kerp % fixed Percentage of rural households using kerosene as main source for lighting

CFi,a,v is calculated using the following statistical approach: Equation 6

+−=

totalvai

vaivai

vaivain

XXzXCF

,,,

,,,,

,,,,

)1(*1

Equation 7

totalvai

loperationavaitotalvai

vain

nnX

,,,

,,,,,,

,,

=

Parameter Uni

t

Type Description

aviX ,, calculated Share of lamps of lamp type i in checked sub-group of sample si,a not operational in period v

z fixed Standard normal for a confidence level of 95%

totalvain ,,, monitored

Total number of lamps in checked sub-group of sample si,a in period v

loperationavain ,,, monitored

Number of lamps operational in checked sub-group of sample si,a in period v

di,v,a is calculated using the following approach:

Equation 8

<

=+−

=

va

vadisclearanceofdatesAvvperiodofdateendd

delai

avi,365

,)))__((()____( ,

,,

Parameter Uni

t

Type Description

))__(( , clearanceofdatesAv ai days calculated Average date of clearance of all lamps included in si,a

deldis days monitored (one-time)

Average delay in lamp distribution from warehouse to user

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Sample size and confidence level

The approach according to Equation 6 is conservative as it uses the lower bound of a 95 % confidence level. This is assured by using binominal coefficient z = 1.96 reflecting a confidence level of 95 %. As per AM0046 version 01, footnote 3: “According to Sachs (1992), a sample of n>60 is necessary to yield meaningful data for the mean and the standard deviation. As some households may leave the sample group during the crediting period, the minimum size should be 100 households. A large sample size involves higher transaction costs but will result in a low margin of error and thus more CERs, whereas a small sample size involves lower transaction costs for sampling but is likely to result in a higher margin of error and thus less CERs”.

Organisational structure of the monitoring plan

1. d.light will continuously record data of solar systems sold to distributors. 2. d.light will enter information on solar systems sold in an electronic database. 3. Per type of system in each verification period a sample of systems sold in this verification period

will be selected randomly. d.light will enter information about solar systems included in each sample into the database.

4. During a given monitoring period a check of a sub-group of the solar systems of each sample (for all samples from different lamp types and periods) will be performed by a dedicated monitoring team. If a lamp is found not to be working it will count as not working for the whole current verification period. If a lamp is found working it will count as working for the whole current verification period. This approach is conservative for a mean sampling date after the mean mid date of the operation time of the lamps in the current verification period. Information from these checks will be reported to d.light design.

5. d.light design will enter information recorded in periodic checks into the database.

Training

d.light design will provide training to parties involved in the monitoring plan to ensure accuracy and completeness of data recorded.

Monitoring report to be provided to Verification Entity: d.light is responsible for preparing the Monitoring Report with the support of OneCarbon. The monitoring consists of continuous data collection of solar systems sold in rural areas of Uttar Pradesh and Bihar and periodic checks during the monitoring period of sub-groups of lamps in the sample groups. If lamps are found to have failed or are not running satisfactorily they will be marked as non-operational.

B.8 Date of completion of the application of the baseline and monitoring methodology and the

name of the responsible person(s)/entity(ies)

The final draft of this baseline section has been completed on 10/10/2008.

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OneCarbon (www.onecarbon.com) of Econcern (www.econcern.com) is responsible for the development of the CDM component of the project. Company name: OneCarbon International BV Visiting address: Kanaalweg 16-G

NL-3526 KL Utrecht The Netherlands

Contact person: Mr. Volker Jaensch Telephone number: +49 (0) 30 29 77 35 79 30 E-mail: [email protected] The baseline has been prepared by Ecofys Netherlands BV.

SECTION C. Duration of the project activity / crediting period

C.1 Duration of the project activity:

C.1.1. Starting date of the project activity:

01/11/2008

C.1.2. Expected operational lifetime of the project activity:

6-10 years45.

C.2 Choice of the crediting period and related information:

C.2.1. Renewable crediting period

C.2.1.1. Starting date of the first crediting period:

C.2.1.2. Length of the first crediting period:

C.2.2. Fixed crediting period:

C.2.2.1. Starting date:

45 The expected operational lifetime of current solar lighting systems is 5 years. Nevertheless, if a longer lifetime is realised and can be proven through monitoring the actual lifetime shall apply. It is planned that after the first year further lamps can be sold under a separate CDM program of activities. If for any reason the registration of the program of activities gets delayed or cannot be realized, d.light may continue selling lamps (with an expected lifetime of 5 years) under the pilot project.

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01/01/2009

C.2.2.2. Length:

10 years

SECTION D. Environmental impacts

D.1. If required by the host Party, documentation on the analysis of the environmental impacts

of the project activity:

No analysis of environmental impact is required by Indian authorities for consumer electronics.

D.2. If environmental impacts are considered significant by the project participants or the host

Party, please provide conclusions and all references to support documentation of an environmental

impact assessment undertaken in accordance with the procedures as required by the host Party:

NA

SECTION E. Stakeholders’ comments

>>

E.1. Brief description how comments by local stakeholders have been invited and compiled:

A list of invitees was prepared previously to the invitation process. As the project is developed as a Gold Standard project the list was sent to Gold Standard in advance and received written approval. All invitees on the list have been invited by d.light either personally in the villages on 27/04/2008 and 28/04/2008 or via e-mail, respectively fax, sent out on 05/05/2008. Additionally, the meeting has been announced in a local and a regional newspaper on 06/05/2008. The meeting was held on 20/05/2008 at 09:30 am in the primary school of the village of Bhadwas, in Etah, U.P. India. About 60-80 families are living in Bhadwas (out of which two already tested a prototype of d.light’s lamp). Bhadwas is situated 200 km away from Delhi and 25 km away from the next town. 67 locals attended the Initial Stakeholder Consultation of the d.light project on 20/05/2008, including the head of the village, the medical practitioner and the teacher. Every attendee was asked to write his name in the attendance list and was given a handout about the d.light project in Hindi. The minutes were taken by a local representative. After several welcoming speeches, including a farmer and a tailor telling about their positive experience with the d.light lamp, Mr. Sam Goldman (CEO of d.light design) presented his project idea to the audience in form of a non-technical summary. He explained how the company d.light would start selling the lamps in rural areas all over Uttar Pradesh and how the substitution of kerosene lamps could contribute to stop climate change. He explained how d.light products are working and how they are

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charged with a PV panel and showed the products around to the audience. The presentation was given in English language and translated to Hindi. After his presentation, Sam Goldman opened a question session and invited the audience to discuss the project idea. The meeting was video taped and a report including procedures, comments and answers has been compiled by d.light. For better illustration pictures of the meeting are attached below.

Figure 8: The meeting in the schoolyard of Bhadwas

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Figure 9: A villager talking about his experience with the d.light lamp NOVA

E.2. Summary of the comments received:

In general, the feedback of the audience was very positive. People were interested in the d.light products and indicated that they would like to own such a lamp if they could afford it. As the following quotes from the minutes show, villagers suffer from the negative effects of kerosene lanterns and have great expectations of d.light products: “Mr. Charan Singh stated that d.light is special as it plans to improve the situation in the village by replacing kerosene lanterns with efficient solar lights. He also stated that the use of kerosene lanterns is injurious to health.” “The local doctor, Mr. G. Kumar addressed the congregation and spoke about health hazards caused by the use of kerosene lanterns. Referring to d.light assistance, he stated that every kerosene lantern could be replaced. He talked about, kerosene lanterns causing, pollution, damages to the eye, nostrils & lung disease. He commended d.light and said that d.light is the hope of light to far flung rural areas. He stated that this meeting would allow the effective mutual understanding between d.light and the villagers.” “Udayveer, a d.light trial user, revealed his experienced benefits from the Nova. He spoke about it being essential as kerosene lanterns are unsafe for children and could cause fires by accident. He said that d.light is good as it gives the same kind of light as that of an electric bulb.”

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“The young tailor, another d.light trial user shared his experience. He said it was effective for sewing, for children to study, was good for the eyes and he had incurred no further expenditure. He included that the light being charged by sunlight incurred no electricity bills.” Other questions and the respective answers were: Q1: Can we get replacement for bulbs after it completes 100,000 hours? A1: Yes, spare bulbs will be available with distributors and in the open marked too. Q2: How many hours does it take for full charge? A2: For the Nova about 8 hours of bright sunlight for 8 hours of light. Q3: What do we do on cloudy days? A3: The light does charge but only at a slower rate. Q4: Which direction should the panel face? A4: Face the east in the morning, flat at noon & west in the evening.

E.3. Report on how due account was taken of any comments received:

As all comments were very positive about the project no further action is required.

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Annex 1

CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY

Organization: d.light design

Street/P.O.Box: 75 Fort Street / PO Box 1350

Building: Clifton House

City: Grand Cayman

State/Region:

Postfix/ZIP: KY1_1108

Country: Cayman Islands

Telephone:

FAX:

E-Mail: [email protected]

URL: www.dlightdesign.com

Represented by: Sam Goldman

Title: Chief Executive Officer

Salutation: Mr.

Last Name: Goldman

Middle Name:

First Name: Sam

Department:

Mobile:

Direct FAX: +91 120 4637338

Direct tel: +91 120 4637344

Personal E-Mail:

Organization: OneCarbon International BV

Street/P.O.Box: Kanaalweg 16-G

Building:

City: Utrecht

State/Region:

Postfix/ZIP: 3526 KL

Country: The Netherlands

Telephone: +31 30 28 08 400

FAX: +31 30 28 08 301

E-Mail: [email protected]

URL: www.onecarbon.com

Represented by: Jan Willem Bode

Title: Chief Executive Officer

Salutation: Mr.

Last Name: Bode

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Middle Name:

First Name: Jan Willem

Department:

Mobile:

Direct FAX: +34 93 390 90 79

Direct tel: +34 93 665 78 69

Personal E-Mail:

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Annex 2

INFORMATION REGARDING PUBLIC FUNDING

The project does not obtain public funding.

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Annex 3

BASELINE INFORMATION

Annex 4

MONITORING INFORMATION

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