ANNEX AN THE GOLD STANDARD MICRO-PROGRAMME OF ACTIVITIES DESIGN DOCUMENT TEMPLATE

Transcription

1 ANNEX AN THE GOLD STANDARD MICRO-PROGRAMME OF ACTIVITIES DESIGN DOCUMENT TEMPLATE CONTENTS A. General description of micro-scale programme of activities B. Duration of the micro-scale programme of activities C. Stakeholder comments D. Application of a baseline and monitoring methodology to a micro-scale activity (VPA) Annexes Annex 1: Contact information on Coordinating/managing entity and participants of micro-scale programme of activities (PoA) Annex 2: Information regarding public funding NOTE: At the time of requesting registration, this form must be accompanied by a VPA-DD applying a real case. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 1

2 SECTION A. General description of micro-scale programme of activities (PoA) A.1 Title of the micro-scale programme of activities (PoA): Solar Lighting in Rural Areas Version: 05 Date: 05/05/2014 A.2. Description of the micro-scale programme of activities (PoA): The Voluntary Programme of Activities Solar Lighting in Rural Areas, hereafter the VPoA, aims to provide households in Ethiopia and Kenya who have no access or are not connected to the electricity grid, with solar PV lighting systems 1. Currently the prevalent form of lighting in rural areas of the VPoA is the use of kerosene lamps. The VPoA will reduce emissions by replacing greenhouse gas (GHG) emitting kerosene lamps with solar PV lighting systems. The programme is being implemented by Stiftung Solarenergie the Solar Energy Foundation Switzerland (hereafter SEF), through their offices in Addis Ababa, Ethiopia and Nairobi, Kenya. SEF is the Coordinating Managing Entity (CME) for the VPoA and responsible for the overall implementation and coordination of the VPoA in collaboration with local partners. In order to distribute the solar lighting systems Solar Centres will be established throughout Ethiopia and Kenya. Solar Centers will manage the sale, distribution and installation as well as maintenance of the solar systems. Project Implementing Partners (PIPs) will be responsible for establishing a network of Solar Centers, and the founding of such a network will constitute a VPA. SEF will coordinate with local partners the establishment of a network of solar centers. This network will consist either of own branches or franchise partners. SEF itself will be the PIP for the first VPA; the establishment of an initial 11 Solar Centers in rural Ethiopia. In the future, private entrepreneurs or other entities (e.g. NGOs), may act as PIPs to establish further Solar Centers under different VPAs. A successful trial took place between January 2009 and August 2010 in which SEF began establishing pilot Solar Centers in rural areas of Ethiopia. This trial period relied heavily on donations from outside parties (e.g. companies, NGOs). However to scale-up and continue with the programme, SEF needs to make the programme self-sustaining and will use carbon finance as a stable, guaranteed revenue stream for each solar lighting system sold, along with payments from local residents. Depending on the type of system, local residents are able to pay either in cash or in instalments. Carbon finance will be used to maintain a sales price affordable to local households and to eventually expand the programme to reach more rural villages without access to electricity. The VPoA will not only lead to emissions reductions, but also to substantial sustainable development benefits. The VPoA contributes to sustainable development in Ethiopia and Kenya in the following ways: Improved lighting conditions will allow children to study in the evenings. It also allows residents to work and run their businesses after dusk. Improvement of indoor air quality. Kerosene lamps cause respiratory problems so the introduction of lighting from clean energy sources will improve the health of residents. New job opportunities are created for the employees both in the local Solar Centers and in the central office of the Solar Energy Foundation The proposed VPoA is a purely voluntary action by SEF and is not required by law. 1 Also referred to as solar home systems, solar products, solar lighting systems or solar systems. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 2

3 A.3. Coordinating/managing entity and participants of PoA: The Coordinating Managing Entity (CME) for this VPoA is the Solar Energy Foundation (SEF). myclimate Foundation is the entity which communicates with the Gold Standard Foundation. Name of Party involved ((host) indicates a host Party) Private and/or public entity(ies) project participants (as applicable) Switzerland Stiftung Solarenergie Solar Energy Foundation Switzerland myclimate Foundation No Federal Democratic Republic of Ethiopia (host) Solar Energy Foundation Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) No No A.4. Technical description of the micro-scale programme of activities: A.4.1. Location of the micro-scale programme of activities: A Host Party(ies): Federal Democratic Republic of Ethiopia and Republic of Kenya. A Physical/ Geographical boundary: The boundary of the VPoA is defined as the geographical area within which all the implemented the micro - scale voluntary project activities included in the VPoA will occur. All solar lighting systems in the VPAs included in the VPoA will be installed within the borders of the Federal Democratic Republic of Ethiopia and Republic of Kenya. Therefore, the boundary of the VPoA is defined as the Federal Democratic Republic of Ethiopia and the Republic of Kenya. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 3

4 . Figure 1. Voluntary Programme of Activities Geographical Boundary - Ethiopia Figure 2. Voluntary Programme of Activities Geographical Boundary Kenya This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 4

5 The GPS coordinates (four data points were selected ) for Ethiopia are: Coordinates East West South North Longitude N(07) (58.466)' N(07) (56.260)' N(03) (27.514)' N(14) (52.791)' Latitude E(47) (59.353)' E(33) (02.906)' E(39) (33.581)' E(37) (55.564)' The GPS coordinates (four data points were selected ) for Kenya are: Coordinates East West South North Longitude N(01) ( )' N(00) (55.368)' N(04) (41.812)' N(04) (28.671)' Latitude E(41) (33.017)' E(33) (54.228)' E(39) (14.589)' E(36) (52.207)' The government of Ethiopia advocates the power generation from renewable energy sources such as geothermal and solar energy. Further, the Ethiopian Development Research Institute (EDRI) and the Environmental Protection Authority (EPA) launched the Strategy Document for Ethiopia s Climate Resilient Green Economy Initiative (CRGE) in November Main policies concerning energy sector in the government of Kenya are Least Cost Power Development Plan (LCPDP), Rural Electrification Master Plan, Sessional Paper No. 4 of 2004 (The energy policy document),the Energy Act of 2006, The Feed-in Tariff (FiT) Policy, The Kenya National Climate Change Response Strategy, Kenya Vision 2030 (the National economic development blueprint). 2 A.4.2. Description of typical micro-scale programme activity(ies): A typical VPA will include the establishment of one or more Solar Centers in rural areas of Ethiopia and Kenya. A VPA will only include Solar Centers within the same country. Each Solar Center will coordinate the following services: Coordinates the marketing and selling of solar systems Coordinates the installation and maintenance of the solar systems Manages the payment procedure for solar system sales (cash sales and credit sales) Records every sale and a copy of the agreement will be kept on file. These agreements will show how many systems have been sold and the unique system numbers will be recorded to further avoid double 2 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 5

6 counting. This information will be sent at least once every 3 months to the CME who will consolidate the total number of systems sold in the central database. The Solar Centers will either perform the above activities directly from the Solar Center location, or the Solar Center will coordinate for the Solar Technicians to travel to villages in the local area to market, sell, install, maintain and manage the payments for the solar systems. The PIPs, that establish a new Solar Center, will be responsible for collecting sales records and data from the Solar Centers. They will also help the Solar Centers to source the lighting systems required for the project, and other logistics to ensure the Solar Centers can operate effectively. The CME supervises the VPoA as a whole and coordinates and manages the implementation of VPAs. Further, the CME, among other activities, will be responsible for capacity building by providing technical training to Solar Technicians as well as testing of system parts thereby ensuring the proper operation and implementation of the systems. A First technology or practise to be employed in the PoA and the eligibility criteria for inclusion of the technology or practise in the PoA: >> This section shall include the description of a type of technology or practise being implemented in the PoA. Note that the eligibility criteria for the sustainable development aspects shall also be defined in this section. 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 projects Category A: Electricity generation by the user The VPoA will introduce solar lighting systems in households in rural areas Ethiopia and Kenya. Depending on the system to be installed, systems are equipped with at least one LED. One LED will reduce kgco2 per day. In general, the lighting systems sold will all have the following attributes: - Photovoltaic panel - Storage batteries - Lights The models used might change over time, as technology develops and improves, to accommodate additional services in addition to the primary objective of providing lighting service. At the VPA level, each type of solar lighting system disseminated will be specifically described. The eligibility criteria that need to be complied by each VPA are stated in the table below (see also Annex 2): No Eligibility Criteria 1. The project activity installs solar home (lighting) systems that supply rural households with electricity. The minimum characteristics that a system needs to have are: 1 high performance LED, 1.5 Wp solar module, rechargeable battery and 1 USB output including adapter set for mobile charging and a minimum lumen output of 50 of each lamp. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 6

7 2. The total capacity of each solar panel included in a VPA does not exceed 1500 kw as defined in in annex U micro programme rules Gold Standard version Technicians have undergone training in the installation and maintenance of solar systems by SEF. 4. All VPAs must be located within the project boundary host countries of Ethiopia and Kenya. Only rural households that are not connected to the electricity grid can be included in a VPA. 5. The project activity is situated in a Least Developed Country or the project activity is an off-grid activity supplying energy to households/communities. 6. Measures are in place to recycle batteries. Technicians will collect the batteries or verify the same once they were informed by a household that the battery is defect or is not working. The collected batteries will be recycled locally or returned to the manufacturer. 7. The project activity is a voluntary action and not required by law. 8. All VPA shall demonstrate that within the PoA boundary, PIP have disseminated and installed SHSs to end users. The location of end-users and corresponding Solar Centre under which the household is listed will be recorded. Evidentiary documents could include but need not be limited to Project SHS Distribution Database, copy of the CME s contract with the PIP and/or agreements with distributors. 9. Each VPA-DD shall confirm that each SHS, as well as household beneficiaries, within a VPA are not included in any other SHS distribution scheme under the GS/CDM and/or any other mechanism to avail climate change mitigation benefits. Each SHS sold under the VPA can be traced my means of a systematized method and will remain in the distribution records for the entire lifespan of the PoA. Information recorded in the PoA database for SHSs and respective households will serve as primary evidence. In addition, each VPA shall not be proposed as an individual GS project and /or as a part of any other GS or CDM PoA and/or any other mechanism to avail climate change benefits. This shall be cross-checked through other standards websites. 10. All households joining the program cede the rights for carbon to the CME, SEF, by having signed a carbon right waiver None of the solar home systems (SHS) included in the VPA of the VPoA is larger than 1% of the 5 MW (threshold of guidelines for micro-scale project activities) and thus de-bundling will not be an issue. 12. To be included in the VPoA,PIPs have to sign an agreement with the CME under which they acknowledge that they have signed up to the VPoA and are aware of all its duties and tasks within the programme and project level including its eligibility criteria The This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 7

8 PIPs have signed the Official Development Assistance Declaration. 13. The date of submission of a VPA is defined as the upload of the micro-scale simplified PDD including the Local Stakeholder Consultation Report (section A and D must be filled) to The Gold Standard registry. The start date of the VPA shall be after the PoA start date. The start date of each VPA will be specified in its VPA-DD. Only SHSs that are sold later than the submission date to for the local VPA Stakeholder Consultation Report upload to the Gold Standard will be counted towards Emission Reductions. 14. For Regular VPAs, local Stakeholder Consultation needs to be conducted before the VPA start date (construction/implementation/real action) of the activity. For Retroactive VPAs whose start date (construction/implementation/real action) is before the time of first submission for the VPA to GS, the first VPA for the technology must undergo a Pre- Feasibility- Assessment (PFA). For retroactive VPAs with a start date after the time of first submission of the PoA to thegs can only be included in the PoA subject to a PFA. 15. Sampling shall be conducted for ongoing monitoring activities based on the CDM methodology. For each VPA, the manner in which it complies with the methodology shall be stated in the VPA-DD. Each VPA-DD shall include a sample plan that meets the following requirements: a) The sampling within the VPA is undertaken as part of the PoA Sampling Plan, as described in the PoA-DD. The VPA-DD will describe how the PoA Sampling Plan is to be applied to project monitoring. b) If VPA-specific sampling is undertaken, a specific Sampling Plan that meets GS methodology requirements must be provided within the VPA-DD. Each VPA-specific sampling approach shall follow the approach outlined in the PoA Sampling Plan, except where the CDM Methodology calls for a different approach. 16. The aggregated scale of the annual emission reductions per each VPA shall not exceed the annual 10,000 t CO2e threshold for any year throughout the crediting period as per the Gold Standard guidelines for micro-scale activities. If a VPA exceeds the applicable limit in any year, the claimable emission reduction shall be capped in that only the maximum total number of SHSs are to be installed under a VPA until the emissions cap is reached. The estimated maximum number of SHSs shall be determined in This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 8

9 each VPA-DD, depending on the technologies included (excel sheet or similar tool shall be provided to show calculated ERs). The VPA sales record has to be updated monthly and transferred to the CME to ensure that the cap has not been exceeded. A.4.3. Description of how the anthropogenic emissions of GHG by sources are reduced by the technology or practise below those that would have occurred in the absence of the registered PoA (assessment and demonstration of additionality): Programme level additionality: In the absence of carbon finance (i) The proposed voluntary measure would not be implemented, or The proposed VPoA has been developed as a voluntary GS carbon offset project. The SHS are sold at subsidised prices to make them affordable to the rural population. Carbon finance is crucial to maintain a sales price affordable to local households and to eventually expand the programme to reach more rural villages without access to electricity. Carbon revenues have always been considered as central for the development of the VPoA. (ii) The mandatory policy/regulation would be systematically not enforced and that noncompliance with those requirements is widespread in the country/region, or The proposed VPoA is a voluntary coordinated action. There is no mandatory law, policy or regulation enforcing the introduction of solar lighting into Ethiopia and Kenya. Each VPA reduces GHG emissions by replacing CO 2 emitting kerosene lamps with solar lighting systems. Additionality will be demonstrated at the VPoA level. A.4.4. Operational, management and monitoring plan for the programme of activities (PoA): A Operational and management plan: A record keeping system for each technology or practice under the VPoA, The VPoA will be implemented in the following manner: The SEF, the CME of this programme, will take responsibility for the overall operation, coordination and management of the VPoA. The PIP will be responsible for the day-to-day coordination of the Solar Centers, ensuring they can operate smoothly. The PIP will also store all the data related to each individual VPA. The Solar Centers will be responsible for the day-to-day distribution of the solar lighting systems as well as operation and maintenance. In general, each VPA is uniquely identified and defined by way of the unique identification numbers (serial numbers) attached to each system to, ensure that all VPAs under its VPoA and not developed under a different VPA/CPA or different project. - Components are labeled with a SEF or PIP logo so that they are easily recognized to belong to the proposed programme. - The database clearly indicates for each system the solar centre as well the respective VPA to which This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 9

10 each system belongs to. The same information as in the database - VPA number, Solar Center, system type, client name, household location, household identification number (depending on system) and component serial numbers - will be stated in a passport that will be given to each household participating in the programme. Below is a detailed table describing how the responsibilities are divided: Level Coordinating Management Entity The CME supervises the VPoA as a whole and coordinates and manages the implementation of VPAs. Including: Testing the quality and design of each component of the solar systems such as the, battery, panel and lamp thereby providing feedback and recommendation to the manufacturer to enable them to produce the right product at reasonable cost. Providing training and capacity building programs to Solar Technicians, Inspectors and other concerned staff. Coordinating all governmental relations concerning the project. Project Implementing Partner (PIP) Solar Center Managing the warehouse where systems are stored. This implies assembling, issuing, monitoring and controlling all systems that are to be delivered to the respective Solar Centers. Manages and coordinates delivery of solar systems to the Solar Centers and coordinate other logistical matters to ensure the Solar Centers can operate effectively. Establishes the Solar Centers Collects and records all monitoring data from the Solar Centers PIP will be aware they have signed up to a VPoA by signing an agreement with the CME under which they acknowledge that they have signed up to the VPoA and are aware of all its duties and tasks within the programme and project level including its eligibility criteria Coordinates the marketing and selling of solar systems Coordinates the installation and maintenance of the solar systems Manages the payment procedure for solar system sales (cash sales and credit sales) Ensures that all customers purchasing a solar system will sign an agreement to hand over the carbon rights to the SEF, meaning double counting will be avoided. Responsible to issue passport to households upon sale of the solar system. Records every sale and a copy of the agreement. These agreements will show how many systems have been sold and the unique system numbers will be recorded to further avoid double counting. This information will be sent at least once every 3 months to the CME who will consolidate the total number of systems sold in the central database. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 10

11 The Solar Centers will either perform the above activities directly from the Solar Center location, or the Solar Center will coordinate for the Solar Technicians to travel to villages in the local area to market, sell, install, maintain and manage the payments for the solar systems. A system/procedure to avoid double accounting e.g. to avoid the case of including a new VPA that has been already registered either as a project activity with GS or any other standard or as a VPA of another PoA, Only systems sold through Solar Centers which have been named as part of the VPA will be included in the programme, and the SEF will not coordinate any other similar VER/CER or offset programmes other than those in the proposed VPoA. Based on the VPA database it is possible to unambiguously identify the VPAs of the programme. Prior to including a new VPA within the proposed VPoA, the CME will check the UNFCCC CDM -and GS project database to verify whether a VER/CDM project activity or VPA/CPA of another VPoA/PoA has already been registered or included in the programme s geographic area. The provisions to ensure that those operating the VPA are aware of and have agreed that their activity is being subscribed to the PoA; The CME is responsible for identifying, registering and managing all VPAs included in the proposed VPoA. This means that those operating the VPA are aware and have agreed that their activity is subscribed to the proposed VPoA. VPA implementing partners have to sign the VPA PIP Eligibility Form (Annex 2) clearly stipulating that their activities are subscribed to the VPoA. A.4.5. Public funding of the programme of activities (PoA): The VPoA does not currently use public funding directly for the project. In the past, the SEF has received some funding from public institutions (e.g. German GTZ and Swiss REPIC). These funds were used to set up some of the infrastructure for the initial Solar Centers in the trial period. In addition some funds were used, and continue to be used for capacity building such as the establishment of the International Solar Energy School (ISES). The ISES, also run by SEF, is an important part of the project, as it trains all the Solar Technicians for SEF, and is also where the imported solar systems are assembled. However, in line with Gold Standard guidelines 3, the Official Development Assistance (ODA) received will not render the project activity ineligible for carbon crediting under the Gold Standard as the previous ODA was not provided under the condition that the credits generated by the project activity will be transferred, either directly or indirectly, to the donor country providing ODA support. The government of Ethiopia and Kenya provide no funding for the programme. 3 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 11

12 SECTION B. Duration of the micro-scale programme of activities (PoA) B.1. Starting date of the programme of activities (PoA): 13/08/2010 The basis for the starting date is the upload date of the VPA Local Stakeholder Consultation (LSC) report to the GS website, B.2. Length of the programme of activities (PoA): Length of VPAs: 10 years. Length of VPoA: 28 years. SECTION C. Stakeholders comments >> Note: A Design Consultation at the Programme level is mandatory for all micro-programmes and a separate template is available for the reporting on this consultation, the PoA Design Consultation Report. C.1. Summary of stakeholder comments on the PoA design: Note: Refer to the PoA Design Consultation Report for a full report on stakeholder comments on the design of the PoA. The principal comments about the PoA design were about the target areas of the VPoA, in this case the Programme is to alleviate poverty in the rural parts of the community through electrifying their homes by solar. C.2. Please indicate the level at which local stakeholder consultation is conducted. Justify the choice: 1. Local stakeholder consultation is done at PoA level 2. Local stakeholder consultation is done at VPA level To get a comprehensive view of Stakeholders opinions for the Program, two different LSCs were conducted at two different levels: firstly at the VPA level in the rural village of Bokaso in Ethiopia, part of the first VPA on the 27 th June Secondly, at the VPoA level in the capital Addis Ababa in Ethiopia on 29 th June According to the Gold Standard PoA Rules and Guidance LSC meeting must happen at both the PoA level and VPA/CPA level....hence, the assessments have been conducted at VPoA- and 1 st VPA level and will be carried out for any other future VPAs. C.3. Brief description how comments by local stakeholders have been invited and compiled: In Addis Ababa, 17 local policy makers were invited. These policy makers work in departments related to energy, rural development and other activities relevant to the indicators found in the sustainable development matrix (water, biodiversity, labour, quality standards). In addition, 10 local NGOs and 20 international NGOs supporting the Gold Standard were invited. All stakeholders were invited by letter or . The external stakeholders attending the meeting were asked to fill out an evaluation form to leave their comments. They also were able to raise their comments at the meeting, both on the overall programme and the Sustainable Development Matrix. These comments were compiled at the meeting, and discussed with the stakeholders at the consultation. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 12

13 C.4. Summary of the comments received: A detailed list of all comments can be found in the Gold Standard LSC Report, available to the public on the Gold Standard website. All comments were received and then assessed, and an explanation to the comments has been provided. 4 The vast majority of comments were neutral or positive. The only indicator that was considered neutral or positive by fewer than 95% of respondents was the other pollutants indicator, where 92.2% of respondents still gave a positive or neutral rating. The reason the 8% of respondents did not give a neutral or positive response on the other pollutants was due to a fear about the polluting effects of batteries. However the SEF responded that there are clear mitigation measures in place for used batteries. Firstly used batteries will be taken back for recycling to avoid any pollution to the soil. Due to the relative inaccessibility of GEL-batteries in the market, if a user wants to replace their battery, they will almost certainly need to go to the local Solar Center to replace such a battery. The Solar Center will only offer a new battery when it is exchanged for the old one. Secondly, the used GEL-batteries are completely sealed and are therefore leak-proof and maintenance-free. Only in the very seldom case of accidentally overcharging (when the battery is producing hydrogen and oxygen), special one way valves allow the gases to escape thus avoiding excessive development of pressure inside the battery. C.5. Report on how due account was taken of any comments received on measures taken to address concerns raised: All comments were received and recorded. An assessment of the comment was written and is available to the public. In addition all negative comments were discussed at the stakeholder meeting. C.6. Discussion on continuous input/grievance mechanism: >> Discuss the Continuous input/grievance mechanism expression method and details, as discussed with local stakeholders. Continuous Input / Grievance Method Chosen (include all known details e.g. location of book, phone, number, identity of mediator) Grievance/Suggestion Justification Location of solar center Name and telephone number of coordinator Place Region Name Phone 4 Gold Standard Project Registry: Public Reports: VER Projects: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 13

14 Expression Process Book 1 Sultan Hamud Makueni 2 Oloitokitok Kajiando 3 Wote Makueni 4 Nanyuki Laikipia 5 Nairobi Nairobi 6 Tala Machakos 7 Voi Cost 8 Isinya kajiado 9 Roysambu Nairobi Telephone access Head Office / Internet/ access Nominated Independent Mediator (optional) All comments on the project can be directed to Not considered necessary bkimathi@suntransfer.com johann.thaler@goldstandard.org or info@goldstandard.org N/A Sultan mahud Solar Centre Oloitokitok Solar Center Wote solar Centre Nanyuki Solar Centre Nairobi Solar Centre Tala Solar Centre Voi Solar Centre Isinya Solar Centre Headquarters STKE The Continuous input / grievance mechanism should be implemented for all activities within the PoA as per feedback received during PoA LSC. All issues identified at the activity level (VPA) during the crediting period through any of the Methods shall have a mitigation measure in place that should be added to sustainability monitoring plan in the VPA-DD. C.7. Report on stakeholder consultation feedback round at the PoA level: A Local Stakeholder Feedback Round (LSFR) meeting was held in Addis Ababa on 15 th August Before the meeting took place, invitation letters, in English language, were sent out via post to policy makers, local and international NGOs and private companies. Again, as for the LSC invitation, Woreda officials and SEF were responsible that the letter with explanation of content and intention, along with the LSC report in local language, were disseminated to invitees. The meeting was conducted in English. After an opening speech by a representative of the Ethiopian DNA and the Director of the International Solar Energy School, the LSFR started by short video presentation on the programme. Thereafter, SEF presented the status and major achievements of the programme. In addition, the Sustainable Development Matrix from the LSC meeting was discussed. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 14

15 Below is an extract of some of the questions and answers were received and provided in relation to the systems installed under the programme: Question: Answer: Professor Wolde Giorgis: Your operation is the beginning of the beginning in the country. Since you are supported by various NGOs, you are expanding and expanding your operation throughout the the four regions in the country. But, how do you choose the regions where to operate? In addition my second question is, though we are convinced that no kerosene shall be compared with PV, why do you choose this parameter to do so? Ato Mesfin: I learned from your presentation that usually, you train technicians for your own consumption. Hence, how do you handle the overhead cost on PV dissemination? The second question is, is your school accredited in accordance with the new Technical & Vocational Education & T raining /TVET/general guideline? Referring to the first Question: we select potentially prospective sites in coordination with the regional energy bureaus. Then a team of experts from both SEF and energy bureaus will conduct a general meeting with the people residing in the selected woreda. We will introduce the product, its benefits and features as well as the selling modalities to the participants and allow them to raise any objections. After seeing their willingness and ability to pay for the system, we let them nominate one contact person who will be responsible to shortlist their names and preferences thereby send this information to us. Based on this information, we will decide whether to open a service center whereby our technicians and inspectors could live and continue their work Back to the second question: since most of the people living in rural areas use kerosene lamps due to lack of grid connection, the only option we have is to compare the number of kerosene lamp replaced with that of LED What we do is, we train our own technicians and recruit them on full time basis. However, their expense is not included in the cost of the product, in which case, the Foundation is responsible to cover it up to now. But for the future, we are planning to implement, franchising business system whereby, solar technicians can take the product form SEF and sale to the end users at a certain profit margin reasonable to the customers so that they gradually pull out from being permanent employee of the foundation. Our school International Solar Energy School found in North Showa Zone, Rema has been accrediting by the Amhara Regional State Education Bureau. But we have another school here in Burayu, Oromiya Rgion as well. We had undergone a long process to get accreditation from the Ministry of Education at federal level. To this end we already prepared and have got approval the Occupational Standard and finalized the curriculum. The only thing remaining is just to their expert to visit our school and come to a conclusion. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 15

16 None of the questions that were asked during the meeting did trigger any change in the programme design. SECTION D. Application of an existing baseline and monitoring methodology or of a new methodology submitted as part of this micro-programme of activities This section shall demonstrate the application of the baseline and monitoring methodology to a typical VPA. The information defines the VPoA specific elements that shall be included in preparing the VPoA specific form used to define and include a VPA in this VPoA. D.1. Title and reference of an approved baseline and monitoring methodology, or full description of a new methodology, applied to technologies or practises included in the PoA: 1. The VPAs are consistent with the Clean Development Mechanism approved small-scale CDM project activity category I.A Electricity generation by the user, version 14. Annex U-Micro-Programme Rules of the Gold Standard v 2.2 is used to demonstrate the additionality at PoA and VPA level.. For more information regarding the methodology, please refer to the link: D.1.1 Justification of the choice of the methodology and why it is applicable to a considered technology or practise (s): As a project comprises solar lighting systems that supply individual households/users included in the project boundary, the proposed VPoA meets all the applicability criteria of AMS I.A (ver. 14) as following: The project activity comprises renewable energy generation units that supply rural households with electricity. The project activity involves the installation of new renewable energy based lighting systems. In the absence of the project activity fossil fuel (kerosene) would have been used. Thus only houses not connected to the grid will be included in a VPA. The total capacity of the solar panels included in the project will not exceed 5 MW. The project does not involve combined heat and power systems. Therefore, AMS I.A (ver. 14) is applicable to the proposed VPoA. Leakage: According to AMS.I.A (ver. 14) leakage shall be considered if the SHS is transferred from another activity or if the existing system is transferred to another activity or the VPoA includes replacement of existing system. The VPoA takes place in poor income households that lack solar lighting systems, and hence use kerosene lamps for lighting purposes. Thus the SHS is rather seen as a new installation opposite to the replacement of existing system. It is not expected that SHSs are transferred from another activity. However, as SHSs listed under the VPoA in discussion can be identified through a unique identification number - and label and thus SHS outside the programme would be easily identified as such and not account towards any emission reductions. Usually, kerosene lamps are no longer used when SHS are operational. Some households keep their old kerosene lamps for emergency backups. Leakage is not considered in cases where households would give their lamps to households that do not yet own a SHS, as an increase in kerosene consumption would not be affordable. This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 16

17 Therefore, leakage is not considered under the programme. D.1.2 Justification of the choice of the methodology and why it is applicable to another considered technology or practise: >> (Copy this section if there are more technologies or practises implemented within the PoA) D.3. Description of the sources and gases included in the VPA (s) boundary D.3.1 Description of the sources and gases included in the technology or practise boundary With reference to the methodology AMS-I.A Electricity generation by the user (version 14), 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 system consisting of a solar PV panel and a LED lamp. The household will directly consume the electricity generated by the solar unit predominantly for lighting purposes. The sources and gases included in the VPA boundary are described below: Baseline Kerosene lamps Gas Included Justification/Explanation CO2 Yes In the baseline scenario lighting would be derived from kerosene producing lamps Project Activity Greenfield installation of solar lighting systems CH4 No As per AMS-I.A Methane emissions are not accounted for. This is conservative N2O No As per AMS-I.A nitrous oxide Emissions are not accounted for. This is conservative. CO2 No The project activity does not emit any emissions CH4 No No methane generation is expected to be emitted. N2O No No nitrous oxide generation is expected D.4. Description of how the baseline scenario is identified and description of the identified baseline scenario for technology(ies) or practise(s): D.4.1 Description of how the baseline scenario is identified and description of the identified baseline scenario for each type of technology or practise: According to methodology AMS-I.A Electricity generation by the user (version 14), 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 the case of renewable energy lighting This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 17

18 applications the equivalent level of lightning service is to be considered instead of energy. Summary of the overall approach: Since the Solar Lighting in Rural Areas VPoA involves the installation of renewable energy lighting applications the baseline is developed in the following steps: Baseline Technology: The technology that would have been used in the absence of the project activity is determined as a hurricane kerosene lamp. Specific equivalent level of lighting service: Methodology AMS I.A (version 14) states: 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. Renewable energy lighting applications shall consider the equivalent level of lighting service instead of energy. Therefore, the specific equivalent level of lighting service is calculated for each SEF solar product to ensure that in the end only the actual lighting service which is provided by a SEF solar product will be converted into carbon credits. Based on the lumen output it is calculated for each SEF solar product how much kerosene would be needed to receive the same level of lighting (lumen output) with a kerosene lamp. This is the actual basis for claiming carbon credits. To be very conservative, a relatively efficient and bright hurricane kerosene lamp (with 45 Lumens) is used as reference. Using this type of kerosene lamp as reference, we find that two hurricane kerosene lamps will be replaced by one bright solar LED of 90 Lumens. If we were to use the less efficient and much weaker simple kerosene wick lamp with only 8 Lumens, more than eleven wick lamps would be needed to get the same brightness of the solar LED. 5 According to the Lighting Africa survey of 2008 in Ethiopia, 69% of households use simple wick lamps, and only 14% use kerosene lamps with glass cover, i.e. the hurricane kerosene lamps 6 and in Kenya 30% of households use simple wick lamps, and 67% use kerosene lamps with glass cover, i.e. the hurricane kerosene lamps 7. So our approach can be considered highly conservative. D.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the technology(ies) or practise(s) being included as registered PoA (assessment and demonstration of additionality of VPA): Carbon Revenue Consideration An initial trial project ( ) was implemented in the Ethiopian villages of Rema and Rema-dire that relied almost entirely on NGO donations. However to scale-up and continue with the programme and the implementation of solar lighting systems, SEF realised that in cannot continue to solely depend on fluctuating donations as they may decrease or even stop in the future. Therefore carbon finance has been considered as a stable and guaranteed revenue stream for each solar lighting system to be sold, along with payments from local residents. Consequently, SEF contacted the Swiss NGO myclimate to inquire about developing and selling the expected carbon emission rights for future projects. A Memorandum of Understanding was signed between both partners in June In 2009 to August 2010 the programme owner began establishing pilot solar centres in other rural areas of Ethiopia, again relying on NGO financing. 5 Evan Mills - "Technical and Economic Performance Analysis of Kerosene Lamps and Alternative Approaches to Illumination in Developing Countries" (page 11), IFC/ Worldbank: Lighting Africa Market Assessment Results Quantitative Assessment Ethiopia, (page 79), IFC/ Worldbank: Lighting Africa Market Assessment Results Quantitative Assessment Kenya, (page 81), 2008 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 18

19 The VPoA started with the submission of VPoA LSC report to the GS-TAC. However, only systems installed from the 13 August 2010 onwards, the upload date of the VPA LSC, can qualify for emission reductions under the programme. At this point the project moved out of the trial phase to rely less exclusively on donor finance, and is expected to soon be primarily financed from the revenue from carbon finance. Below is a timeline for the carbon credit consideration of Solar Lighting in Rural Areas programme. Date Table B-2 Timetable of the programme key events 2008 Initial Pilot period in Rema and Rema-dire villages February 2008 June 2008 Jan Project Idea Note Memorandum of Understanding signed by myclimate and SEF Pilot period expanded with the first installation and operation of a Solar Center 2009/ 2010 Product development based on users feedback, first production and testing period March 2010 Term Sheet between myclimate and SEF 27 June 2010 VPA level LSC meeting held to receive comments from the local community 29 June 2010 VPoA level LSC meeting held to receive comments from NGOs, policy makers, etc. 26 July 2010 VPoA LSC report uploaded to Gold Standard Registry. 13 August VPA LSC report uploaded to Gold Standard Registry. Marks start of the VPoA, and is defined as the start date. 14 Feb VPoA listed on the Gold Standard website D.5.1. practise: Activity level Additionality Assessment and demonstration of additionality for a typical technology or In this programme the additionality assessment is demonstrated at micro-programme level and at the VPA level. VPAs can be seen as additional if they meet the eligibility criteria (see section A for the specific criteria). In addition, according to the Gold Standard Micro Scale Rules, the additionality is automatic for all voluntary project activities (VPAs) under this PoA since the following conditions are met: Regular cycle activities that meet any one of the criteria defined below shall be deemed additional: i. The project activity is located in a Least Developed Country (LDC), Small Island Developing States (SIDS) or a Land Locked Developing Country (LLDC). 8 ii. The project activity is located in any host country different from the countries defined above but project participants can demonstrate that project implementation will essentially benefit poor communities. No specific definition of poor communities is pre established. The Millennium Development Goals based long term National Development Strategy (NDS) can serve as the basis to assess the eligibility of the targeted communities. Project participants shall 8 List as per UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 19

20 iii. seek approval from The Gold Standard Foundation on the basis of a formal request providing detailed arguments as to how the activity will benefit the poor communities. The project activity is an emission reduction project in which each of the independent subsystems or measures achieve annual emission reductions equal to or less than 600 tco2 or annual energy savings equal to or less than 600 MWh or installed capacity is less than 1500 Kw for households/smes or communities. The limits defined above apply to each subsystem or the measure implemented. For regular cycle activities that do not comply with any of the criteria above and for all retroactive activities, project participants are required to use the guidelines for demonstrating additionality of microscale project activities, project activities up to 5 megawatts that employ renewable energy are additional if: a) The geographic location of the project activity is in one of the Least Developed Countries or b) The project activity is an off-grid activity supplying energy to households/communities (less than 12 hours grid availability per 24 hrs is also considered off-grid for this assessment). As each VPA is under 5MW, and is situated in a Least Developed Country or is an off-grid activity, the project can therefore be considered additional. According to EB 68, Annex 26, Guidelines for demonstrating additionality of micro-scale project activities, project activities up to 5 megawatts that employ renewable energy are additional if the geographic location of the project activity is in one of the Least Developed Countries or the project activity is an off-grid activity supplying energy to households/communities. As a condition for each VPA, the total capacity will be under 5MW, and situated in a Least Developed Country (LDC) or is an off-grid activity. If these conditions are met, all regular cycle activities that do not comply with any of the criteria in the first section and for all retroactive VPAs under this VPoA shall be considered additional.. The additionally demonstration is not deemed necessary at the VPA level, as SEF will ensure that each VPA will strictly comply with the VPoA eligibility criteria. These specifically include that the VPA must be implemented within the boundaries of a LDC, such as Ethiopia, or the project activity is an off-grid activity supplying energy to households/communities and will not exceed 5MW in total capacity. Respectively, each new PIP will have to sign a contractual agreement confirming their compliance with the eligibility criteria. Thus, additionality will be automatically assured at the VPA level. D.5.2. Key criteria and data for assessing additionality of a technology or practise: Additionality is determined at the VPoA level. However each VPA must follow the CDM guidelines for demonstrating additionality of micro-scale projects 9. A VPA is considered additional if the project activity is situated in a Least Developed Country or the project activity is an off-grid activity supplying energy to households/communities. utilises a renewable energy technology has a total capacity of under 5MW. All proposed VPAs will meet the above criteria, otherwise they will be assumed non-additional. 9 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 20

21 D.6. Estimation of Emission reductions of technology(ies) or practise(s): D.6.1. Explanation of methodological choices, provided in the baseline and monitoring methodology applied, selected for a technology or practise : In accordance with the methodology AMS I.A (Version 14) the equivalent level of lighting service is to be considered instead of energy is used to calculate the uniform baseline for all VPAs. The energy baseline 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. Renewable energy lighting applications shall consider the equivalent level of lighting service instead of energy. D.6.2. Equations, including fixed parametric values, to be used for calculation of emission reductions of a technology or practise : Option 3 In the case of Option 3, the emissions baseline is the historic fuel consumption calculated in accordance with paragraph 8c of the applied methodology times the CO 2 emission factor for the fuel displaced. IPCC default values for emission factors may be used. However, in this case, baseline emissions are not calculated by a trend-adjusted projection of historic fuel consumption, due to lack of data, but by using a default value of kerosene consumption per hour indicated in the SSC WG paper Consideration of potential fossil fuel lighting replacement methodology (EB25, Annex 13). According to the methodology, in 3, paragraph 10, the energy content of the fuel consumed in the baseline is taken times the emission factor of the fuel (IPCC default values for emission factors are used). (1) BE FC * NCV * EF CO2, y j, y j CO2, j j Where: BE CO2, y FC j, y NCV j EF CO2, j j Emissions in the baseline in year y; tco2 Amount of fuel consumption of fuel type j; mass or volume unit in year y Net calorific value of fuel type j; gigajoule per mass or volume unit CO2 emission factor of fuel type j; tco2/gj Fuel type used for combustion (1) However, in accordance with AMS I.A (version 14), the equivalent level of lighting service is to be considered instead of energy (footnote 3). Given the lumen output of one LED lamp is 2.07 times the lumen output of hurricane kerosene lamp, one LED lamp is assumed to be installed instead of slightly more than two hurricane kerosene lamp. Therefore, the below equation is derived from the equation above: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 21

22 (2) v 1 BE ( N * d )* CF * LE * * h* l * EF * NCV * den CO2, y i, a i, a, v i, v, LFR i ker ker ker ker a 1 LEker The equation FC * NCV*EF represents the emissions in tco 2 equivalent from fuel consumed in the baseline. The equation (3) yields exact the same result. This is hence the emissions in tco 2 equivalent from kerosene that would have been consumed in the baseline instead of solar lighting. In addition, a following parameters and concepts have been incorporated 1. Aggregated emission reduction calculation for groups of lamps (all lamps of the same system type i sold in the same period form one group); N i,a 2. An adjustment parameter for operational time of continuously sold lamps; d i,a,y 3. For conservative approach, statistical correction factors for lamp failure rate need to be applied; CF i,v,lfr Where: BE CO2, y N i,a ID 1 d i,a,y ID 2 LE i ID 3 LE ker ID 4 Emissions in the baseline in year y; tco2 The total number of solar lamps in use of system type i deployed in period a Average number of days lamps of system type i that have been deployed in period a were operating in period v; days Nominal lumen output of solar lamps of system type i deployed as part of the project activity; lumen The specific light output of kerosene when burned in a kerosene lamp; lumen h ID 5 Average number of hours solar lamps are used per day; hours CF i,v,lfr ID 6 This factor corrects the total number of lamps of system type i 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 90%) l ker ID 7 Kerosene consumption each kerosene lamp per hour; liter/hour EF ker ID 8 CO2 emission factor of kerosene; tco2/gj NCV ker ID 9 Calorific value of kerosene; TJ/Gg den ker ID 10 Density of kerosene; Kg/l As mentioned above, for a conservative approach a correction factor needs to be applied: This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. 22