PROGRAMME OF ACTIVITIES DESIGN DOCUMENT (PoA-DD)

Transcription

1 CDM Executive Board Page 1 PROGRAMME DESIGN DOCUMENT FORM FOR SMALL-SCALE CDM PROGRAMMES OF ACTIVITIES (F-CDM-SSC-PoA-DD) Version 02.0 PROGRAMME OF ACTIVITIES DESIGN DOCUMENT (PoA-DD) SECTION A. General description of PoA A.1. Title of the PoA Electrification through grid-extension in Malawi PART I. Programme of activities (PoA) A.2. Purpose and general description of the PoA The project is addressing electricit suppl in areas which are et not covered b the national grid, but will be covered through this project. The purpose is to contribute to sustainable and a green growth development in Malawi through the implementation of a stable, long-term and viable extension of the electricit distribution sstems. The project will address different consumer groups, for instance households, schools, enterprises and so on. The new consumers will be designated as either households (Tpe-I consumers) or non-households (Tpe-II consumers). Grid-extension should onl be one of man directions which should be promoted in Malawi. The general increase in electricit production should also be a focus, but it will not be covered b this project. The project activit will directl contribute to sustainable development in Malawi in several was: Environmental sustainabilit The PoA encourages connection of new consumers b extension of existing grids, which otherwise would have been sourced from fossil fuel. The PoA will cause no significant negative impacts on the environment, and contributes to environmental well-being in Malawi. improved the indoor environment Economic sustainabilit The PoA increases emploment opportunities in the local area where the grid extension sites will be located, during construction and operation that will boost local incomes. B generating additional electricit, the PoA enhances the local and national investment and business environment, thereb improving the local econom. B improving the profitabilit of grid-extension projects, the PoA helps project implementers to realise electrification projects which otherwise would not have happened due to their low profitabilit and the lack of available investment for such risk projects. Social sustainabilit During construction, the electricit suppl sstems to different consumer groups are expected to generate considerable emploment opportunities for the nearb population. The CPAs will also generate demand for various kinds of work during operation, which will generate emploment on a regular and permanent basis.

2 CDM Executive Board Page 2 Technolog sustainabilit The PoA supports technolog and expertise transfer from abroad and other parts of Malawi through formal training and practical work. The CPAs will generate demand for local products when spare parts are needed. Voluntar action Confirmation that the proposed PoA is a voluntar action b the coordinating/managing entit The PoA is a voluntar action taken b the Coordinating/Managing Entit (CME). CME is not in an wa enforced to accomplish its objectives. A.3. CMEs and participants of PoA The PoA Coordinating/Managing Entit (CME): GREEN CURRENT LIMITED, Chimoso Childrens Club, 2nd floor, P.O.Box E 71, Post Dot Net, Malawi. Reg.no , Coordinator ApS, Damhusvaenget 10, 2990 Nivaa, Denmark. Reg. no , Denmark Both GREEN CURRENT LIMITED and Coordinator ApS will be Project Participants according to CDM rules. During the project development it is expected that the CME will be invited and encouraged to be part of the CME. A.4. Part(ies) Name of Part involved (host) indicates a host Part Malawi (host) Private and/or public entit(ies) project participants (as applicable) GREEN CURRENT LIMITED (Private entit A) Indicate if the Part involved wishes to be considered as project participant (Yes/No) No Denmark Coordinator ApS (Private entit B) No A.5. Phsical/ Geographical boundar of the PoA The proposed PoA will be developed within Malawi. The coordinates of Malawi : South : 9½ East : A.6. Technologies/measures The proposed project activit will focus on extension of existing electricit grids.

3 CDM Executive Board Page 3 The proposed project activit will be flexible for the utilization of electricit. A.7. Public funding of PoA Official Development Assistance is not being diverted to the implementation of the PoA. SECTION B. Demonstration of additionalit and development of eligibilit criteria B.1. Demonstration of additionalit for PoA As per paragraph 73 of the 47th EB meeting report additionalit is to be demonstrated either at the PoA level or at CPA level. The project participant chooses to describe the additionalit at PoA level. According to EB68 annex 27 Guidelines for demonstration of additionalit for small-scale project activities Project participants shall provide an explanation to show that the project activit would not have occurred anwa due to at least one of the following barriers: (a) Investment barrier: a financiall more viable alternative to the project activit would have led to higher emissions; (b) Technological barrier: a less technologicall advanced alternative to the project activit involves lower risks due to the performance uncertaint or low market share of the new technolog adopted for the project activit and so would have led to higher emissions; (c) Barrier due to prevailing practice: prevailing practice or existing regulator or polic requirements would have led to implementation of a technolog with higher emissions; (d) Other barriers: without the project activit, for another specific reason identified b the project participant, such as institutional barriers or limited information, managerial resources, organizational capacit, financial resources, or capacit to absorb new technologies, emissions would have been higher. In a Malawi, as an LDC, there are a significant number of barriers, like lack of funds for investments, but one of the main barriers is also lack of planning capacit. B.2. Eligibilit criteria for inclusion of a CPA in the PoA Table 1. Applicabilit of conditions for AMS-III.BB (version 1) and all the CPAs in the PoA AMS III BB Applicabilit Conditions Section, Ref.no. and other criteria 1 This methodolog is applicable to project activities involving electrification of a communit of consumers through either: (a) Extension of a grid (national, regional or mini-grid); or (b) Construction of new mini-grid. Such project activities will displace fossil fuel use, such as in fuel-based Documentation and information required could for instance be pre-feasibilit stud, a It could be confirmed in presentation of the CPA or b the CPA district level administration or another public institution.

4 CDM Executive Board Page 4 lighting sstems and stand-alone power generators. 2 Electricit consumers ma include households, commercial facilities such as shops, public services/buildings and small, medium and micro enterprises (SMMEs) 2 Applications ma include lighting (interior, public street lighting), electrical appliances such as refrigerators, agricultural water pumps 3 At least 75% (b number) of the project consumers shall be households 4 This methodolog is applicable in situations where consumers that were not connected to a national/regional grid prior to project implementation are supplied with electricit from the project activit. 4 It is also applicable to situations where a fraction of consumers that are supplied with electricit from a minigrid prior to the implementation of the project are now supplied with electricit from the project activit (i.e. moving from carbon intensive mini-grid to less carbon intensive regional/national or mini grid) could for instance be pre-feasibilit stud, a could for instance be pre-feasibilit stud, a could for instance be pre-feasibilit stud, a The eligibilit will be tested at the initial stage of the project development on CPA level. The possible connected households should be calculated as more than 75% of the possible total end-use facilities (or consumer groups) for the possible energ sstems. could for instance be pre-feasibilit stud, a could for instance be pre-feasibilit stud, a 5 This methodolog is applicable for project activities associated with national grids, regional grids or minigrids that utilize either fossil fuels or fossil fuels and renewable energ in the electricit generation sstem. could for instance be pre-feasibilit stud, a 6 Project activities for electrification of

5 CDM Executive Board Page 5 a communit through the installation of stand-alone renewable electricit generation sstems or through the extension/construction of a renewable based mini-grid sstems shall explore AMS-I.L 7 This methodolog is not applicable to portable sstems, such as portable electricit generating sstems. 8 This methodolog is applicable where the amount of project electricit delivered to consumers can be determined through the use of meters that continuousl measure electricit delivered b the project activit to consumers An ex ante census of project energ consumers that will be supplied with electricit from the project will be carried out to document the phsical location of each consumer and the anticipated connected load and usage hours of each consumer; Optionall the anticipated load for individual households ma be established based on the tpe of connection or pament arrangement provided (e.g. load limited, fee for service based connection). 10 Measures are limited to those that result in emission reductions of less than or equal to 60 kt CO2 equivalent annuall could for instance be pre-feasibilit stud, a could for instance be pre-feasibilit stud, a could for instance be pre-feasibilit stud, a could for instance be pre-feasibilit stud, a could for instance be pre-feasibilit stud, a Geographical boundar The geographical boundar of the CPA is consistent with the geographical boundar set in the PoA It should be confirmed that the aggregrate installed capacit of new renewable energ sstem within a CPA is less than 60 kt CO2 equivalent annuall This issue should be addressed in the could for instance be pre-feasibilit stud, a Onl the CPA within the boundar of Malawi shall be eligible. Avoid double The grid extension sstem is not part The CPA implementer shall secure that the

6 CDM Executive Board Page 6 counting of another CDM project specific grid extension sstem is not part of another CDM project from which CERs could be generated. Voluntar action The CPA is a voluntar action The CPA project implementer shall secure that the CPA is a voluntar action. Start Date of CPA The CPA is part of the PoA Overseas Development Assistance (ODA) The start date of the CPA shall be no earlier than the date of advertisement of the PoA for Global Stakeholder Consultation The CPA implementer should have an established cooperation with the CME Funding from Annex I parties, if an, does not result in a diversion of official development assistance Confirmation that the start date of the CPA shall be no earlier than the date of advertisement of the PoA for Global Stakeholder Consultation Agreement between CPA implementer and CME Document and/or information on the project financing. B.3. Application of methodologies The eligible small-scale methodolog III.BB. Electrification of communities through grid extension or construction of new mini-grids (Version 1, EB 67) is applied and it is the onl methodolog applied for each CPA under this PoA. SECTION C. Management sstem The proposed PoA involves a range of operational activities covering the implementation and management of each CPA b the CME and it is in line with EB 65 Annex 3. The CME will implement the following management sstem over the proposed PoA. Green Current will be the CME and Green Current will in due time appoint one of the Directors to manage the project. 1. Roles and responsibilities involved in the inclusion of CPAs The CME shall have the competencies to review and include CPAs in the PoA. The Director of the CME will be responsible for evaluating each CPA and the Director of the CME shall sign a legal agreement with the representatives of the CPA. The Director of the CME will be the direct contact point for the CDM EB. The representatives of the CPA will be responsible for periodicall collecting monitoring data from the CPA and transfer these data to the CME. The CME will prepare the monitoring reports for emission reduction verification. 2. Provide training to CPA representatives The CME staff will provide training to representative of the CPA to ensure their abilit to compl with the PoA requirements, particularl for monitoring.

7 CDM Executive Board Page 7 3. Procedures for technical review of inclusion of CPAs The CME will together with representative of the CPA conduct a technical review of the CPA prior to inclusion in the PoA. This will ensure that the CPA meets the required eligibilit criteria on compliance with the chosen methodolog, additionalit, double counting and de-bundling (if relevant). Additionall it will be ensured that the CPA complies with the requirements of the Malawi. 4. Implement a sstem/procedure to avoid double accounting e.g. to avoid the case of including a new CPA that has been alread registered either as a CDM project activit or as a CPA of another PoA. The CME will maintain a database of all CPAs. This will be used to perform a double accounting check to avoid double counting. 5. Records and documentation control process for each CPA under the PoA; The CME will include all data forwarded b the CPA implementer in a database. The CME will in each monitoring period perform a control site visit to a CPA to follow-up on a few selected issues. This will be reported in a short site visit report. 6. Future improvement in the management sstem The CME will periodicall review the management sstem of the PoA to ensure that there is continuous improvement. SECTION D. Duration of PoA D.1. Start date of PoA The start date of the crediting period of the PoA, should be the latter one of the completion of the pilot investment date of the first CPA or registration date of PoA. D.2. Length of the PoA 28 ears SECTION E. Environmental impacts E.1. Level at which environmental analsis is undertaken In case there is noticed a specific need for an environmental analsis for a specific renewable energ sstem in a CPA it will be handled at the CPA to ensure developed according to Malawi environmental regulations. E.2. Analsis of the environmental impacts Probabl limited environmental impact, but if an, it will mainl be a positive impact. It should be evaluated for each CPA. SECTION F. Local stakeholder comments F.1. Solicitation of comments from local stakeholders To be done

8 CDM Executive Board Page 8 F.2. Summar of comments received To be done F.3. Report on consideration of comments received To be done SECTION G. Approval and authorization The Draft PoA and draft CPA have been forwarded the 22 novmeber 2013 b . No reamrks have been received until now. A Letter of Approval (LoA) should be requested from the Host Part. PART II. Generic component project activit (CPA) SECTION A. General description of a generic CPA A.1. Purpose and general description of generic CPAs A tpical CPA within the boundar of Malawi under this PoA comprises of several grid-extension sstems of the national grid which will suppl electricit to consumers not earlier connected to the national grid. The total measured emission reductions shall be less than or equal to 60 kt CO 2 equivalent annuall. It means that a CPA can also be part of a larger grid-extension. SECTION B. Application of a baseline and monitoring methodolog B.1. Reference of the approved baseline and monitoring methodolog(ies) selected The CPA will appl the small-scale methodolog III.BB. Electrification of communities through grid extension or construction of new mini-grids (Version 1, EB 67) and for the project emissions the following is required. Project emissions are emissions associated with the generation of electricit supplied to the project activit end use facilities. PE Where: ED EF TL 1 tot, * grid,co2, PE Project emissions from electricit generation in ear (tco 2 ) grid ED tot, Total electricit delivered to the communit of all Tpe I, Tpe II and existing consumers as measured with the use of master meter as mentioned in paragraph 8(a) (MWh) grid,co2, EF Emissions factor for the project electricit sstem in ear (tco 2 /MWh) If the project activit involves connection to an existing national or regional grid the emissions factor is determined b ranking all the power (1)

9 CDM Executive Board Page 9 units in the national or regional grid in the decreasing order of GHG intensit. The emissions factor is the weighted average emissions factor of the top 10% most GHG intensive plants in the grid. 1 The emissions factors of the plants shall be calculated based on default plant efficienc provided in the Tool to calculate the emission factor for an electricit sstem ; If the project activit involves connection to an existing mini-grid or construction of new mini-grid the emissions factor is determined as either: (a) for a mini-grid sstem where all generators use exclusivel fuel oil and/or diesel fuel per the procedure for such mini-grids provided in AMS-I.F; or (b) for all other mini-grids per the weighted average emissions for the current generation mix following the procedure provided in AMS-I.D TL Transmission and distribution losses in the project electricit sstem suppling grid the project activit (%), with 10% as the default value B.2. Application of methodolog(ies) The eligible small-scale methodolog III.BB. Electrification of communities through grid extension or construction of new mini-grids (Version 1, EB 67) is applied B.3. Sources and GHGs The possible GHGs and sources included in each CPA for the baseline and the project activit are shown in table x below. Source Gas Included Justification Baseline CO 2 Yes Main emission source CH 4 No Minor emission source N 2 O No Minor emission source Project Activit CO 2 Yes Main emission source CH 4 No Minor emission source N 2 O NO Minor emission source Table x. Emission sources included and excluded within the project boundar B.4. Description of baseline scenario The baseline scenario is directl described in AMS III BB. The assumptions and calculations for emissions from this baseline are shown below in section B.6. B.5. Demonstration of eligibilit for a generic CPA 1 If the grid associated with the project imports electricit from other countries the emission factor shall be the higher among the following two: (i) the weighted average emissions factor of the top 10% most GHG intensive plants in the grid of the host countr; and (ii) the weighted average emissions factor of the top 10% most GHG intensive plants in the grid of the exporting countr.

10 CDM Executive Board Page 10 AMS III BB Applicabilit Conditions Section, Ref.no. and other criteria 1 This methodolog is applicable to project activities involving electrification of a communit of consumers through either: (a) Extension of a grid (national, regional or mini-grid); or (b) Construction of new mini-grid. Such project activities will displace fossil fuel use, such as in fuel-based lighting sstems and stand-alone power generators. Documentation and information required could for instance be pre-feasibilit stud, a It could be confirmed in presentation of the CPA or b the CPA district level administration or another public institution. Either a letter from ESCOM confirming that it is the intention to connect the proposed project activities to the national/regional grid or a project description prepared b project developer or consultant which should illustrate that the actual proposed grid-extension project is not part of the actual national/regional grid. 2 Electricit consumers ma include households, commercial facilities such as shops, public services/buildings and small, medium and micro enterprises (SMMEs) could for instance be pre-feasibilit stud, a Project description prepared b project developer or consultant which should illustrate that some of these consumers are included in the project 2 Applications ma include lighting (interior, public street lighting), electrical appliances such as refrigerators, agricultural water pumps could for instance be pre-feasibilit stud, a Project description prepared b project developer or consultant which should describe that some of these appliances are included in the project 3 At least 75% (b number) of the project consumers shall be households could for instance be pre-feasibilit stud, a

11 CDM Executive Board Page 11 The eligibilit will be tested at the initial stage of the project development on CPA level. The possible connected households should be calculated as more than 75% of the possible total project consumers. The eligibilit will be tested at the initial stage of the project development on CPA level. The possible connected households of the possible total project consumersfor the possible grid extension sstem should be calculated as less than 75% households. 4 This methodolog is applicable in situations where consumers that were not connected to a national/regional grid prior to project implementation are supplied with electricit from the project activit. could for instance be pre-feasibilit stud, a 4 It is also applicable to situations where a fraction of consumers that are supplied with electricit from a minigrid prior to the implementation of the project are now supplied with electricit from the project activit (i.e. moving from carbon intensive mini-grid to less carbon intensive regional/national or mini grid) could for instance be pre-feasibilit stud, a Either a letter from ESCOM confirming that it is the intention to connect the proposed project activities to the national/regional grid or a project description prepared b project developer or consultant which should illustrate that the actual proposed grid-extension project is not part of the actual national/regional grid. 5 This methodolog is applicable for project activities associated with national grids, regional grids or minigrids that utilize either fossil fuels or fossil fuels and renewable energ in the electricit generation sstem. could for instance be pre-feasibilit stud, a Either a description of the that the actual fuel use and the future use could have been fossil fuel prepared b project developer or letter from Authorit either local or national that the fossil fuel is a dominating source of fuel within the CPA boundar now

12 CDM Executive Board Page 12 6 Project activities for electrification of a communit through the installation of stand-alone renewable electricit generation sstems or through the extension/construction of a renewable based mini-grid sstems shall explore AMS-I.L could for instance be pre-feasibilit stud, a These tpe of sstems should be excluded from the project and all the potential evaluations should be mentioned in a description of the CPA 7 This methodolog is not applicable to portable sstems, such as portable electricit generating sstems. could for instance be pre-feasibilit stud, a It will in the project description be stressed that onl permanent installation will be part of the CDM project and that portable electricit generation sstem will not be part of the project. 8 This methodolog is applicable where the amount of project electricit delivered to consumers can be determined through the use of meters that continuousl measure electricit delivered b the project activit to consumers. could for instance be pre-feasibilit stud, a Installation of meters that continuousl measure electricit delivered b the project activit to consumers 9 An ex ante census of project energ consumers that will be supplied with electricit from the project will be carried out to document the phsical location of each consumer and the anticipated connected load and usage hours of each consumer; Optionall the anticipated load for individual households ma be established based on the tpe of connection or pament arrangement provided (e.g. load limited, fee for service based connection). could for instance be pre-feasibilit stud, a A short memo describing, including an illustrative sketch map, will be presented. 10 Measures are limited to those that

13 CDM Executive Board Page 13 result in emission reductions of less than or equal to 60 kt CO2 equivalent annuall could for instance be pre-feasibilit stud, a Geographical boundar It should be confirmed that the aggregrate installed capacit of new renewable energ sstem within a CPA is less than 60 kt CO2 equivalent annuall In the project description it should be confirmed that the aggregate CO2 emission reductions within a CPA is expected to be less than 60 kt CO2 equivalent annuall. The geographical boundar of the CPA is consistent with the geographical boundar set in the PoA This issue should be addressed in the could for instance be pre-feasibilit stud, a Onl the CPA within the boundar of Malawi shall be eligible. Map of the Malawi with marked location of the CPA Avoid double counting Voluntar action Start Date of CPA The CPA is part of the PoA The grid extension sstem is not part of another CDM project The CPA implementer shall secure that the specific grid extension sstem is not part of another CDM project from which CERs could be generated. The CPA project implementer shall confirm in writing that the grid extension project will not be or is not part of another CDM project. The CPA is a voluntar action The CPA project implementer shall secure that the CPA is a voluntar action. The CPA project implementer shall confirm that the CPA activities are developed as a voluntar action The start date of the CPA shall be no earlier than the date of advertisement of the PoA for Global Stakeholder Consultation Confirmation that the start date of the CPA shall be no earlier than the date of advertisement of the PoA for Global Stakeholder Consultation Letter from CPA implementor confirming that the major financing is not in place at the time of PoA advertisement of the Global stakeholder consultation and with an enclosed letter illustrating that the CPA implementor is working on securing the financing to CPA implementation. The CPA implementer should have an Agreement between CPA implementer and established cooperation with the CME CME

14 CDM Executive Board Page 14 The CPA implementer and the CME have signed an agreement or exchanged s confirming that the CPA is part of the CPA. Overseas Development Assistance (ODA) Funding from Annex I parties, if an, does not result in a diversion of official development assistance Document and/or information on the project financing. Sponsor confirm that the support is not a diversion of official development assistance B.6. Estimation of emission reductions of a generic CPA B.6.1. Explanation of methodological choices The emission reductions for the grid extension sstems of the project activit are calculated in accordance with the guidance given in the methodolog AMS III BB, version 1. The detailed description is below. Baseline emissions 1. Baseline emissions are the sum of emissions associated with new consumers (Tpe I and Tpe II consumers) and existing consumers calculated as follows: BE BET 1, BET 2, BEexist, Where: (2) BE Baseline emissions in ear (tco 2 ) BE T, BE T, 1 Baseline emissions for Tpe I consumers in ear (tco 2 ) 2 Baseline emissions for Tpe II consumers in ear (tco 2 ) BE exist, Baseline emissions of existing consumers i.e. baseline emissions from displacement of electricit from an existing mini-grid (tco 2 ) BE exist, = 0, if there are no existing consumers (see footnote 3 for the definition of existing consumers) 2. Baseline emissions of existing consumers are calculated as: BE, ED * EF (3) exist exist, mgrid

15 CDM Executive Board Page 15 Where: ED exist, Total electricit delivered to existing consumers ( exist use of sub-master-meter mentioned in paragraph 8(b) (MWh) N, ) as measured with the EF Baseline emissions factor for the mini-grid (tco mgrid 2 ) For a mini-grid sstem where all generators use exclusivel fuel oil and/or diesel fuel, emission factor can be determined per the procedure provided in AMS-I.F Renewable electricit generation for captive use and mini-grid. For all other mini-grids it shall be calculated as the weighted average emissions for the current generation mix following the procedure provided in AMS-I.D Grid connected renewable electricit generation 3. Baseline emissions of Tpe II consumers, BE T2, are calculated as: N BET 2, ECT 2, i, * EF (4) CO2, T 2 Where: BE, i T 2 Baseline emissions for Tpe II consumers in ear (tco 2 ) EC, T 2, Metered annual electricit consumption of Tpe II consumer i in ear (MWh) i EF 1.0 (tco 2 /MWh) CO2, T 2 N Number of Tpe II consumers in ear 4. Baseline emissions of Tpe I consumers, BE T1, are calculated as a function of total electricit consumed b all the Tpe I consumers and a baseline emission factor chosen based on the average annual electricit consumption of all Tpe I consumers. EC * NM * EF EC * M BET 1, T1NM, CO2, T1NM T1M, * EFCO2, T1M (5) ECtot _ T1NM NM EC (6) 1 T NM,, M ECT M EC T M j M (7) 1, 1,, j EC tot Where: BE T, N M EDtot, EDexist, )* TLp ECT 2, i, _ T1NM, ( 1 EC (8) T1M, j, 1 Baseline emissions for Tpe I consumers in ear (tco 2 ) EC Average annual electricit consumption of all Tpe I-NM consumers in ear T1 NM, (MWh) EC T 1 M, Average annual electricit consumption of all Tpe I-M consumers in ear (MWh) EC Annual electricit consumption of Tpe I-M consumer j in ear (MWh) T1 M, j, i j

16 CDM Executive Board Page 16 NM M Number of Tpe I-NM consumers in ear Number of Tpe I-M consumers in ear EF If EC CO2, T1NM T1NM, is equal to or less than MWh/, then use a default value of 6.8 (tco 2 /MWh); If EC T1NM, is less than or equal to MWh/ but greater than MWh/, then: o o For the portion up to and including MWh/, use a default value of 6.8 (tco 2 /MWh); For the portion greater than MWh/, use a default value of 1.3 (tco 2 /MWh); If EC T1NM, is greater than MWh/ but less than or equal to MWh/, then: o o o For the portion up to and including MWh/ use a default value of 6.8 (tco 2 /MWh); For the portion greater than MWh/ and less than 0.25 MWh/ use a default value of 1.3 (tco 2 /MWh); For the portion greater than 0.25 MWh/ use a default value of 1.0 (tco 2 /MWh); If EC T1NM, is greater than MWh/, then use a default value of 1.0 (tco 2 /MWh) for the entire portion i.e. default values of 1.3 (tco 2 /MWh) or 6.8 (tco 2 /MWh) are not eligible for an of the portions EF If EC CO2, T1M T1M, is equal to or less than MWh/, then use a default value of 6.8 (tco 2 /MWh); If EC T1M, is less than or equal to MWh/ but greater than MWh/, then: o o For the portion up to and including MWh/, use a default value of 6.8 (tco 2 /MWh); For the portion greater than MWh/, use a default value of 1.3 (tco 2 /MWh); If EC T1M, is greater than MWh/ but less than or equal to MWh/, then: o o o For the portion up to and including MWh/ use a default value of 6.8 (tco 2 /MWh); For the portion greater than MWh/ and less than 0.25 MWh/ use a default value of 1.3 (tco 2 /MWh); and For the portion greater than 0.25 MWh/ use a default value of 1.0 (tco 2 /MWh); If EC T1M, is greater than MWh/ then use a default value of 1.0 (tco 2 /MWh) for the entire portion i.e. default values of 1.3 (tco 2 /MWh) or 6.8 (tco 2 /MWh) are not eligible for an of the

17 CDM Executive Board Page 17 portions EC Total electricit delivered to the communit of all Tpe I-NM consumers, net tot _ T1NM, of transmission and distribution losses (MWh) ED tot, Total electricit delivered to the communit of all Tpe I, Tpe II and existing consumers as measured with the use of master meter as mentioned in paragraph 8(a) (MWh) TL p Transmission and distribution losses within the project area (%), with 10% as a default value ED N exist exist, Total electricit delivered to existing consumers (, ) as measured with the use of sub-master-meter mentioned in paragraph 8(b) (MWh) Leakage 5. Leakage on account of construction of new transmission/distribution lines (e.g. carbon stock loss due to deforestation) shall be calculated using the method indicated in baseline and monitoring methodolog AM0045 Grid connection of isolated electricit sstems. If the estimated leakage is within 5% of the estimated emission reductions of the project, then this leakage source ma be neglected, otherwise the leakage shall be deducted from the emissions reductions. 6. If an energ generating equipment (e.g. for a mini-grid) is transferred from another activit, leakage is to be considered. Project activit emissions 7. Project emissions are emissions associated with the generation of electricit supplied to the project activit end use facilities. PE Where: ED EF TL 1 tot, * grid,co2, PE Project emissions from electricit generation in ear (tco 2 ) grid ED tot, Total electricit delivered to the communit of all Tpe I, Tpe II and existing consumers as measured with the use of master meter as mentioned in paragraph 8(a) (MWh) EF Emissions factor for the project electricit sstem in ear (tco grid,co2, 2 /MWh) If the project activit involves connection to an existing national or regional grid the emissions factor is determined b ranking all the power units in the national or regional grid in the decreasing order of GHG intensit. The emissions factor is the weighted average emissions factor of the top 10% most GHG intensive plants in the grid. 2 The emissions factors of the plants shall be calculated based on default plant efficienc provided in the Tool to calculate the emission factor for an electricit sstem ; If the project activit involves connection to an existing mini-grid or (9) 2 If the grid associated with the project imports electricit from other countries the emission factor shall be the higher among the following two: (i) the weighted average emissions factor of the top 10% most GHG intensive plants in the grid of the host countr; and (ii) the weighted average emissions factor of the top 10% most GHG intensive plants in the grid of the exporting countr.

18 CDM Executive Board Page 18 construction of new mini-grid the emissions factor is determined as either: (a) for a mini-grid sstem where all generators use exclusivel fuel oil and/or diesel fuel per the procedure for such mini-grids provided in AMS-I.F; or (b) for all other mini-grids per the weighted average emissions for the current generation mix following the procedure provided in AMS-I.D TL Transmission and distribution losses in the project electricit sstem suppling grid the project activit (%), with 10% as the default value Emission reduction 8. Emission reductions (ER ) are calculated as follows: ER BE PE LE (10) B.6.2. Data and parameters that are to be reported ex-ante< (Cop this table for each data and parameter.) Data / Parameter Project consumer Unit Number Description At least 75% (b number) of the project consumers shall be households Source of data Counting Value(s) applied - Choice of data The % of households of project consumers which could be connected to the or grid-extension project on the CPA level and a calculation has been Measurement performed before the validation. methods and procedures Purpose of data Compl with methodolog Additional comment - B.6.3. Ex-ante calculations of emission reductions In the hpothetical example it is assumed that for 100 households in average consumption is 600 kwh/ear and for 20 Tpe II (non-households) the average consumption is 1500 kwh/. It is furthermore assumed that there is no existing grid connected consumers. For the BE T2 = 20 units x 1.5 MWh/ear x 1.0 tco 2 /MWh = 30 tco 2 /ear. For the BE T1 = 100 units x 0.6 MWh/ear x 1.0 tco 2 /MWh = 60 tco 2 /ear. Detailed information on the grid is not available and therefore a detailed calculation of the emission factor for the project activities is not possible. But the national grid is mainl hdropower and therefore is assumed that PE = 0. In this example LE =0. This will be the most common situation in Malawi. ER = BE PE LE = (30 tco 2 /ear + 60 tco 2 /ear) - 0 tco 2 /ear - 0 tco 2 /ear = 90 tco 2 /ear

19 CDM Executive Board Page 19 B.7. Application of the monitoring methodolog and description of the monitoring plan B.7.1. Data and parameters to be monitored b each generic CPA (Cop this table for each data and parameter) Data / Parameter Unit Description Source of data Value(s) applied Measurement methods and procedures Monitoring frequenc QA/QC procedures Purpose of data Additional comments ED, tot MWh/ Electricit delivered to consumers from the grid/mini-grid sstem Electricit metering equipment Measurements are undertaken using Master meters. The measurement should be taken at the nearest pre-existing substation from which the electrification project is supplied Continuous monitoring, hourl measurement and at monthl recording Data / Parameter Unit Description Source of data Value(s) applied Measurement methods and procedures Monitoring frequenc QA/QC procedures Purpose of data Additional comments EC, T 2, i MWh/ Electricit metered at Tpe II consumer i Electricit metering equipment Measurements are undertaken using electricit meters at each of the Tpe II facilities Continuous monitoring, hourl measurement and at monthl recording

20 CDM Executive Board Page 20 Data / Parameter EC, T1 M, j Unit MWh/ Description Electricit metered at Tpe I-M consumer j, expected to consume more than 1000 kwh/ identified. Source of data Electricit metering equipment Value(s) applied Measurement Measurements are undertaken using electricit meters at each of the facilities methods and procedures Monitoring Continuous monitoring, hourl measurement and at monthl recording frequenc QA/QC procedures Purpose of data Additional comments Data / Parameter Unit Description Source of data Value(s) applied Measurement methods and procedures Monitoring frequenc QA/QC procedures Purpose of data Additional comments ED, exist MWh/ Total electricit delivered in ear to the existing consumers Electricit metering equipment Measurements are undertaken using sub-master-meters. The measurement should be taken at the nearest pre-existing substation from which the electrification project is supplied Continuous monitoring, hourl measurement and monthl recording

21 CDM Executive Board Page 21 Data / Parameter Proportion of N, NM Unit Description Source of data Value(s) applied Measurement methods and procedures Monitoring frequenc QA/QC procedures Purpose of data Additional comments N, and M having access to grid exist Check for continued access to electricit Annual/biennial check that grid connections are still working, done for a statisticall significant sample of consumers. Use 90/10 and 95/10 precision for annual and biennial checks, respectivel Annual/biennial B.7.2. Description of the monitoring plan for a generic CPA The electricit will be at total electricit delivered, different substations, Tpe II facilities and Tpe I facilities with expected more than 1000 kwh/. Such measurements shall be made continuousl and recorded at least on a monthl basis. The CPA implementer will appoint persons responsible for gathering the monthl monitoring data of electricit consumption and secure that data will be recorded. The data will be inserted in spread sheets for further caluclation and administration

22 CDM Executive Board Page 22 Appendix 1: Contact information on entit/individual responsible for the PoA Organization GREEN CURRENT LIMITED Street/P.O. Box Chimoso Childrens Club, 2nd floor, P.O.Box E 71, Post Dot Net, Building - Cit Blantre State/Region - Postcode - Countr Malawi Telephone - Fax - pedersenm@ahoo.com Website - Contact person Mr. Morten Pedersen Title Director Salutation Mr. Last name Pedersen Middle name - First name Morten Department - Mobile Direct fax - Direct tel Personal pedersenm@ahoo.com Appendix 2: Affirmation regarding public funding Appendix 3: Application of methodolog(ies) Appendix 4: Further background information on ex ante calculation of emission reductions Appendix 5: Further background information on the monitoring plan

23 CDM Executive Board Page 23 Histor of the document Version Date Nature of revision(s) 02.0 EB March 2012 Revision required to ensure consistenc with the "Guidelines for completing the programme design document form for small-scale CDM programmes of activities" (EB 66, Annex 13). 01 EB33, Annex43 27 Jul 2007 Initial adoption. Decision Class: Regulator Document Tpe: Form Business Function: Registration