AMAYO PHASE II WIND POWER PROJECT

AMAYO PHASE II WIND POWER PROJECT Report No: 8000402033-11/558 Date: 2012-03-21 TÜV NORD CERT GmbH JI/CDM Certification Program Langemarckstraße, 20 45141 Essen, Germany Phone: +49-201-825-3335 Fax: +49-201-825-3290 www.tuev-nord.de www.global-warming.de v3.0 1

Project Title Amayo Phase II Wind Power Project Version 01 Report Title Client Amayo Phase II Wind Power Project Consorcio Eolico Amayo (Fase II), S.A. Pages 26 Date of Issue 2012/01/12 Prepared By Contact TÜV NORD CERT GmbH TÜV NORD CERT GmbH JI/CDM Certification Program Langemarckstraße, 20 45141 Essen, Germany Phone: +49-201-825-3335 Fax: +49-201-825-3290 www.tuev-nord.de www.global-warming.de Approved By Work Carried Out By Ms. Alexandra Nebel Mr. Raul Gonzalez Mitre (TL) Mr. Abraham Garza Alvarez (TM) Mr. Emilio Martin (TR) v3.0 2

Summary: Consorcio Eolico Amayo (Fase II), S.A. has commissioned the TÜV NORD JI/CDM Certification Program to validate the project: Amayo Phase II Wind Power Project with regard to the relevant requirements of the VCS Standard Version 3. The project activity generates and sends electrical power from a renewable energy source to the national electric grid. The project intends to reduce GHG emissions to the extent of equivalent electricity generated by fossil fuels based power plants of the grid. In the course of the draft validation 3 Clarification Requests (CLs) were raised. Furthermore no Corrective Action Requests (CARs) or Further Action Request (FAR) was also raised. The review of the project design documentation and additional documents related to VCS requirements; the subsequent background investigation and follow-up interviews have provided TÜV NORD JI/CDM CP with sufficient evidence to validate the fulfilment of the stated criteria. In detail the conclusions can be summarised as follows: - The project is in line with all relevant host country criteria (Nicaragua) and all relevant VCS Standard Version 3 criteria. - The calculation of the project emission reductions is carried out in a transparent and conservative manner, so that the calculated emission reductions of 69,915 tons CO2e is most likely to be achieved in a yearly basis. - The project activity meets the criteria of the clauses 1.2, 1.3, 1.5, 1.6, 1.7, 1.9, 1.10, 1.12.1, 1.12.2, 1.12.3, 1.12.4 and 1.13 of the VCS PD as per VCS version 3 and is likely to achieve the estimated emission reductions. The conclusions of this report show, that the project, as it was described in the project documentation, is in line with all criteria applicable for the validation and the project is likely to achieve estimated GHG emission reduction or removals. v3.0 3

Abbreviations CA CAR CDM CO 2 CO 2e CP CL DNA EB ER FAR GHG GWP IPCC INE MARENA PDD QC/QA UNFCCC Corrective Action / Clarification Action Corrective Action Request Clean Development Mechanism Carbon dioxide Carbon dioxide equivalent Certification Program Clarification Request Designated National Authority CDM Executive Board Emission Reduction Forward Action Request Greenhouse gas(es) Global Warming Potential Intergovernmental Panel on Climate Change Energy Nicaraguan Institute Ministry of Environment and Natural Resources Project Design Document Quality control/quality assurance United Nations Framework Convention on Climate Change VCS Voluntary Carbon Standard Version 3 VCS - PD VCU VVM VCS - Project Description Voluntary Carbon Unit Validation and Verification Manual v3.0 4

Table of Contents 1 Introduction... 7 1.1 Objective... 7 1.2 Scope and Criteria... 7 1.3 Level of assurance... 7 1.4 Summary Description of the Project... 7 2 Validation Process... 10 2.1 Method and Criteria... 10 2.2 Document Review... 10 2.3 Interviews... 11 2.4 Site Inspections... 11 2.5 Resolution of Any Material Discrepancy... 11 3 Validation Findings... 12 3.1 Project Design... 12 3.2 VCS PD Template Section - 1.2 Sectoral Scope and Project Type... 13 3.3 VCS PD Template Section - 1.3 Project Proponent... 13 3.4 VCS PD Template Section - 1.5 Project Start Date... 14 3.5 VCS PD Template Section 1.6 Project Crediting Period... 15 3.6 VCS PD Template Section 1.7 Project Scale and Estimated GHG Emission Reductions or Removals... 16 3.7 VCS PD Template Section 1.9 Project Location... 17 3.8 VCS PD Template Section 1.10 Conditions prior to Project Initiation... 18 3.9 VCS PD Template Section 1.12.1 Proof of Title... 18 3.10 VCS PD Template Section 1.12.2 Emissions Trading Programs and Other Binding Limits... 20 3.11 VCS PD Template Section 1.12.3 Participation under Other GHG Programs... 20 v3.0 5

3.12 VCS PD Template Section 1.12.4 Other Forms of Environmental Credit... 21 3.13 VCS PD Template Section 1.13 Additional Information Relevant to the Project... 22 3.2 Application of Methodology... 23 3.2.1 Title and Reference... 23 3.2.2 Applicability... 23 3.2.3 Project Boundary... 23 3.2.4 Baseline Scenario... 23 3.2.5 Additionality... 23 3.2.6 Quantification of GHG Emission Reductions and Removals... 23 3.2.7 Methodology Deviations... 23 3.2.8 Monitoring Plan... 23 3.3 Environmental Impact... 23 3.4 Comments by stakeholders... 23 4 Validation conclusion... 23 5 references... 25 v3.0 6

1 INTRODUCTION 1.1 Objective The purpose of a validation is to have an independent third party assess the project design. In particular the project's baseline, the monitoring plan (MP), and the project s compliance with - the requirements of the VCS version 3; - the requirements of the approved methodology; - relevant rules, including the host country legislation are validated in order to confirm that the project design as documented is sound and reasonable and meets the stated requirements and identified criteria. Validation is seen as necessary to provide assurance to stakeholders on the quality of the project and its intended generation of Voluntary Carbon Units (VCUs). 1.2 Scope and Criteria The validation scope is given as a thorough independent and objective assessment of the project design including especially: the correct application of the methodology, the project s baseline study, additionality justification, stakeholder involvement, environmental impacts and monitoring plan, which are included in the PD other relevant supporting documents, to ensure that the proposed VCS project activity meets all relevant and applicable VCS version 3 criteria. The information included in the PD and the supporting documents were reviewed and assessed against the requirements as set out by the VCS version 3. The validation is based on the information made available to TÜV NORD JI/CDM CP and on the contract conditions. TÜV NORD JI/CDM CP cannot be held liable by any entities for making its validation opinion based on any false or misleading information supplied to it during the course of validation. The validation is not meant to provide any consulting to the project participants. However, stated requests for clarifications and/or corrective actions may provide input for improvement of the project design. 1.3 Level of assurance The verification has been planned and organized to achieve a reasonable level of assurance limited level of assurance. 1.4 Summary Description of the Project Essential data of the project is presented in the following tables. v3.0 7

Table 1.4-1: Project Characteristics Item Project title Project owner Any specific project categories Data Amayo Phase II Wind Power Project Consorcio Eólico Amayo (Fase II) S.A. Mega project (> 10 6 t CO 2eq / a) Project (5000 t CO 2eq / a to 10 6 t CO 2eq / a) Micro project (< 5000 t CO 2eq / a) AFOLU project Grouped project No specific project category VCS PD dated Draft: 2011-10-07 Final: 2012-01-04 Applied Methodology Scope/Technical area ACM0002 ver. 12 - Consolidated baseline methodology for gridconnected electricity generation from renewable sources T Wind Energy Project starting date 2010-03-01 Crediting period Renewable Crediting Period (7 y) Renewable Crediting Period (10 y) Start of crediting period 2010-03-01 Table 1.4-2: Project Location No. Host Country Region: Project location address: Project Location Nicaragua Latitude UTM: 1251300 Longitude UTM: 0641150 Province of Rivas Phase II is adjacent to the Amayo Wind Farm, which is located in the province of Rivas, approximately 129 KM south of Managua Table 1.4-3: Technical data of the project Parameter Unit Value Total Power MW 23.1 MW No. of turbines - 11 Rated Power per wind-generator MW 2.1 Number of blades 3 Cut-in wind speed m/s 4 Rated wind speed m/s 14 v3.0 8

Parameter Unit Value Cut-off wind speed m/s 25 Table 1.4-4: Involved Personnel Name Company Function 1) Qualification Status 2) Scheme competence 3) Technical competence 4) Verification competence 5) Host country Competence Team Leading competence Mr. Ms. Raul Gonzalez Mitre BRTÜV, Mexico TL A) LA - Mr. Ms. Abraham Alvarez Garza BRTÜV, Mexico TM A) T T Mr. Ms. Martin Emilio TÜV NORD, Germany TR B) LA T Mr. Ms. Alexandra Nebel TÜV NORD, Germany FA B) SA - 1) TL: Team Leader; TM: Team Member, TR: Technical review; OT: Observer-Team, OR: Observer-TR; FA: Final approval 2) GHG Auditor Status: A: Assessor; LA: Lead Assessor; SA: Senior Assessor; T: Trainee; TE: Technical Expert 3) GHG auditor status (at least Assessor) 4) As per S01-MU03 or S01-VA070-A2 (such as A, B, C, ) 5) In case of verification projects A) Team Member: GHG auditor (at least Assessor status), Technical Expert (incl. Host Country Expert or Verification Expert), not ETE B) No team member v3.0 9

2 VALIDATION PROCESS 2.1 Method and Criteria The validation of the project consisted of the following steps: Contract review Appointment of team members and technical reviewers Publication of the VCS project description (VCS PD) A desk review of the VCS PD /PD/ submitted by the client and additional supporting documents with the use of customised validation protocol Validation planning On-Site assessment Background investigation and follow-up interviews with personnel of the project developer and its contractors Draft validation reporting Resolution of corrective actions Final validation reporting Technical review Final approval of the validation. The sequence of the validation is given in the table 2.1 below: Table 2.1-1: Validation sequence Topic Time Assignment of validation 2011-06-22 On-site visit Not required Draft reporting finalised 2012-01-13 Final reporting finalised 2012-02-20 Technical review on final reporting finalised 2012-02-29 Final corrections 2012-03-07 2.2 Document Review The VCS PD /PD/ and supporting background documents related to the project design and baseline were reviewed. Furthermore, the validation team used additional documentation by third parties like host party legislation, technical reports referring to the project design or to the basic conditions and technical data. The references used in the course of this validation are summarized in section 5 v3.0 10

2.3 Interviews The validation team has carried out interviews in order to assess the information included in the project documentation and to gain additional information regarding the compliance of the project with the relevant criteria applicable for the VCS. During validation the validation team has performed interviews to confirm selected information and to resolve issues identified in the document review. The main topics of the interviews are summarized in Table 2.3-1. Table 2.3-1: Interviewed persons and interview topics Interviewed Persons / Entities Interview topics Project proponent representatives Project consultant - Chronological description of the project activity with documents of key steps of the implementation. - Technical details of the project realization, project feasibility, designing, operational life time, monitoring of the project - Monitoring and measurement equipment and system. - Financial aspects - Deviations - Crediting period - Project activity starting date - Ownership - Baseline study assumptions - Additionality - Monitoring - Analysis of local stakeholder consultation - Roles & responsibilities of the project participants w.r.t. project management, monitoring and reporting - Editorial issues of the VCS PD A comprehensive list of all interviewed persons is part of section 5 References 2.4 Site Inspections No onsite inspection was performed as the project activity is already registered as CDM project (No. 5305). Assessment was focused on VCS requirements for registered CDM projects. 2.5 Resolution of Any Material Discrepancy Material discrepancies identified in the course of the validation are addressed either as CARs, CLs or FARs. A Corrective Action Request (CAR) is established where: mistakes have been made in assumptions, application of the methodology or the project documentation which will have a direct influence the project results, v3.0 11

VALIDATION REPORT: VCS Version 3 the requirements deemed relevant for validation of the project with certain characteristics have not been met or there is a risk that the project would not be registered or that emission reductions would not be able to be verified and certified. A Clarification Request (CL) will be issued where information is insufficient, unclear or not transparent enough to establish whether a requirement is met. A Forward Action Request (FAR) will be issued when certain issues related to project implementation should be reviewed during the first verification. A detailed list of the CARs CLs and FAR raised and discussed in the course of this validation is included in the next section 3 of this report. 3 VALIDATION FINDINGS 3.1 Project Design In this section the assessments and findings from the desk review of the VCS PD, site visit, interviews and supporting documents as well as the final assessments are summarised. Table 3-1 includes an overview of all raised CARs, CLs and FARs. Table 3-1: Overview of CARs, CLs and FARs issued No. Topic / Chapter CAR CL FAR 3.1 VCS PD Template Section - 1.2 3.2 VCS PD Template Section - 1.3 3.3 VCS PD Template Section - 1.5 1 3.4 VCS PD Template Section 1.6 3.5 VCS PD Template Section 1.7 3.6 VCS PD Template Section - 1.9 1 3.7 VCS PD Template Section - 1.10 3.8 VCS PD Template Section - 1.12.1 1 3.9 VCS PD Template Section - 1.12.2 3.10 VCS PD Template Section - 1.12.3 3.11 VCS PD Template Section - 1.12.4 v3.0 12

3.12 VCS PD Template Section - 1.13 - SUM 0 3 0 3.1 VCS PD Template Section - 1.2 Sectoral Scope and Project Type Description Demonstration that the project is applicable of the selected sectoral scope and project type. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: Final Assessment The Sectoral Scope of the project activity is 1: Energy Industries (renewable/non-renewable sources and the project type is Renewable Energy. The project consists of a Wind Power Plant with an installed capacity of 23.1 MW located in the province of Rivas, Republic of Honduras. Therefore the sectoral scope and project type applied to the project activity in the VCS-PD is correct. Sectoral Scope and Project Type are in line with the applicable VCS criteria. 3.2 VCS PD Template Section - 1.3 Project Proponent Description Demonstration that the project proponent was included in the VCS-PD. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: v3.0 13

Final Assessment The project proponent is Consorcio Eólico Amayo (Fase II) which is operated by AEI Nicaragua S.A. Description of the project proponent was correctly included in the VCS-PD. The validation team crosschecked the VCS-PD against the CDM PDD. No discrepancies were identified. Project Proponent is in line with the applicable VCS criteria. 3.3 VCS PD Template Section - 1.5 Project Start Date Description Demonstration that the project start date of the project activity is in line with the VCS Standard Version 3. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: Finding: 3.3-1 Classification CAR CL FAR Description of finding Describe the finding in unambiguous style; address the context (e.g. section) Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. Please provide plausible evidence to demonstrate the selected project start date: 2010/03/01. Evidence from the Nicaraguan Energy Authority is provided (see file INE_fecha de entrada en operacion A2.pdf. v3.0 14

DOE Assessment #1 The assessment shall encompass all open issues. In case of nonclosure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Official notification No. DGE-MCV-0399-06-2010 given by INE on 2010/06/15 regarding the official start date of commercial operation of Consorcio Eolico Amayo, S.A. Fase II (Amayo-II) on 2010/03/01 (evidence of the project start date) was given. The selected project start date is 2010/03/01 which is the date of first operation of the project activity corresponding to the start date of commercial operation. According to the VCS the project start date is the date on which the project began generating GHG emission reductions or removals. CL is closed. Conclusion Tick the appropriate checkbox To be checked during the first periodic verification Appropriate action was taken Project documentation was corrected correspondingly Additional action should be taken The project complies with the requirements Final Assessment The selected project start date is 2010/03/01 which is the date of first operation of the project activity corresponding to the start date of commercial operation. Evidence /PSD/ of the project start date was provided to the validation team. According to the VCS the project start date is the date on which the project began generating GHG emission reductions or removals. The project start date is in line with the applicable VCS criteria. 3.4 VCS PD Template Section 1.6 Project Crediting Period Description Demonstration that the project crediting period is in line with the VCS Standard Version 3. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: v3.0 15

Final Assessment The selected project crediting period is from 2010/03/01 to 2011/09/30 (Including both dates). The project activity was registered as a CDM project on 2011/09/30. According to the UNFCCC web site the CDM crediting period goes from 2011/10/01 to 2018/09/30. Therefore no overlapping of GHG programmes occurred. According to the VCS, projects that have been registered under more than one GHG program, they are not eligible for VCU issuance after the date that is the earliest end date of all applicable project crediting periods. The project crediting period is in line with the applicable VCS criteria. 3.5 VCS PD Template Section 1.7 Project Scale and Estimated GHG Emission Reductions or Removals Description Demonstration that the selected project scale is in line with the VCS Standard Version 3. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: Final Assessment According to the VCS projects are categorized by size according to their estimated average annual GHG emission reductions or removals. As the project activity estimated average annual GHG emission reduction is less than 1,000,000 tco2e per year the project activity scale corresponds to Project (5000 t CO 2eq / a to 10 6 t CO 2eq / a) category. The project scale is in line with the applicable VCS criteria. v3.0 16

3.6 VCS PD Template Section 1.9 Project Location VALIDATION REPORT: VCS Version 3 Description Demonstration that the project location is in line with the VCS Standard Version 3. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: Finding: 3.6-1 Classification CAR CL FAR Description of finding Describe the finding in According to the VCS project location determination for multiple project activity instances (such as wind projects), a geodetic coordinate shall be unambiguous style; given for each instance and a KML file shall be provided. Please provide address the context (e.g. such file. section) Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. DOE Assessment #1 The assessment shall encompass all open issues. In case of nonclosure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. Conclusion Tick the appropriate checkbox A.kml file is provided showing the exact location of each of the eleven wind turbines corresponding to Phase II (towers 20 to 30). The towers corresponding to Phase I (towers 1 to 19) are also mapped. See file WTGs location.kml KML file of project location was provided to the validation team. The validation team crosschecked it with information public available on the UNFCCC web site. No discrepancies were identified. CL is closed. To be checked during the first periodic verification Appropriate action was taken Project documentation was corrected correspondingly Additional action should be taken The project complies with the requirements Final Assessment According to the VCS project location determination for multiple project activity instances such as wind projects shall provide a geodetic coordinate for each instance. The VCS-PD provides geodetic coordinates for each turbine totalizing 11 wind turbines. Furthermore a KML file was also provided as requested by the VCS. The information is consistent. Moreover the validation team crosschecked the v3.0 17

geodetic coordinate stated in the CDM PDD. No discrepancies were identified. The project location is in line with the applicable VCS criteria. 3.7 VCS PD Template Section 1.10 Conditions prior to Project Initiation Description Demonstration that description of the conditions prior to Project Initiation are in line with the VCS Standard Version 3. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: Final Assessment According to the VCS the project description shall include a description of conditions prior to project initiation. The VCS-PD includes such description. Furthermore the validation team crosschecked the information of conditions prior to project initiation stated in the CDM PDD. No discrepancies were identified. Description of the conditions prior to project Initiation is in line with the applicable VCS criteria. 3.8 VCS PD Template Section 1.12.1 Proof of Title Description Demonstration that the Proof of Title is available and it is in line with the VCS Standard Version 3. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: v3.0 18

Finding: 3.8-1 Classification CAR CL FAR Description of finding Proof of title described in the VCS-PD shall be provided: Describe the finding in unambiguous style; Generation license Consorcio Eólico Amayo Fase II S.A. address the context (e.g. section) The letter of national approval issued by MARENA Furthermore reference to the law of which such documents come from shall be also given. Corrective Action #1 This section shall be filled by the PP. It shall address the corrective action taken in details. See files: - Licencia de generacion.pdf (generation license) - Letter of Aproval Amayo II_final.TIF (Letter of Approval) Generation license is issued by the Energy and Mines Ministry ( Ministerio de Energía y Minas ), in accordance with art. 29 bis of Law No. 612 (see file LEY 612.pdf ). Letter of Approval is issued by MARENA (Ministry of Environment and Natural Resources), as this is the Nicaraguan Designated National Authority (as shown in http://cdm.unfccc.int/dna/index.html). DOE Assessment #1 The assessment shall encompass all open issues. In case of nonclosure, additional corrective action and DOE assessments (#2, #3, etc.) shall be added. The PP has provided as proof of title: Generation License given on 2009/10/23 by Ministry of Energy to Consorcio Eólico Amayo (Fase II) S.A. (Ministerial Agreement No. 92-DGERR-32-2009) Letter of national approval No. DM-JAS/0449.04.11 issued by MARENA on 2011/04/06. Both documents represent a right of use arising under law. CL is closed. Conclusion Tick the appropriate checkbox To be checked during the first periodic verification Appropriate action was taken Project documentation was corrected correspondingly Additional action should be taken The project complies with the requirements Final Assessment The Proof of Title given by the PP is the generation license given by Ministry of Energy and the letter v3.0 19

of national approval given by MARENA. Both documents represent a right of use arising under law. This is in compliance with description of ownership of the VCS criteria. Proof of title is available and it is in line with the applicable VCS criteria. 3.9 VCS PD Template Section 1.12.2 Emissions Trading Programs and Other Binding Limits Description Demonstration whether the project reduces GHG emissions from activities that are included in an emissions trading program or take place in a jurisdiction or sector in which binding limits are established on GHG emissions Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: Final Assessment Nicaragua does not have a regional GHG reduction scheme or target while Nicaragua is a non-annex I country within the Kyoto Protocol. The UNFCCC web site was checked. The project activity does not participate in an emissions trading program which is in line with the applicable VCS criteria. 3.10 VCS PD Template Section 1.12.3 Participation under Other GHG Programs Description Demonstration that project activities participating under other GHG programs are line with the VCS Standard Version 3. Related Findings No CARs, CLs or FARs have been identified in this context v3.0 20

The following finding(s) have been addressed: Final Assessment The project activity was registered as a CDM project on 2011/09/30. The selected VCS project crediting period is from 2011/10/01 to 2018/09/30 (Including both dates). Therefore no overlapping of GHG programmes occurred. The PP has provided with the VCS-PD including sections described in section 3.12.4 of the VCS. Furthermore the validation report was submitted to the relevant program to request registration within two years of the project start date. Participation of the project activity under other HGH programs is in line with the applicable VCS criteria. 3.11 VCS PD Template Section 1.12.4 Other Forms of Environmental Credit Description Demonstration that the project activity has not created another form of GHG-related environmental credit in accordance with the VCS Standard Version 3. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: Final Assessment The project activity has not created another form of GHG-related environmental credit, such as renewable energy certificates. Interviews were performed with the PP and in the PD is stated that the project activity has not created another form of GHG-related environmental credit. The validation team has checked at the web and no information regarding the project activity has been identified with exception of the CDM register. The project activity has not created another form of GHG-related environmental credit which is in line with the applicable VCS criteria. v3.0 21

3.12 VCS PD Template Section 1.13 Additional Information Relevant to the Project Description Demonstration that the project activity provides additional relevant information such as eligibility criteria, leakage management and commercially sensitive information in accordance with the VCS Standard Version 3. Related Findings No CARs, CLs or FARs have been identified in this context The following finding(s) have been addressed: Final Assessment According to the VCS additional relevant information to the project shall be given, including eligibility criteria for new instances of project activities for grouped projects, a description of any leakage management plan or mitigation measures and any further information which may relate to the eligibility of the project, risks to net GHG emission reductions or removals, the quantification of net GHG emission reductions or removals, and an indication of commercially sensitive information that has been excluded from the public project description. Eligibility criteria were fulfilled and demonstrated in the Validation Report /ValR/. No leakage is considered for projects registered under methodology ACM0002. Finally no commercially sensitive information is included in the VCS-PD. Additional relevant Information to the project activity which was given is in line with the applicable VCS criteria. v3.0 22

3.2 Application of Methodology 3.2.1 Title and Reference Not applicable. 3.2.2 Applicability Not applicable. 3.2.3 Project Boundary Not applicable. 3.2.4 Baseline Scenario Not applicable. 3.2.5 Additionality Not applicable. 3.2.6 Quantification of GHG Emission Reductions and Removals Not applicable. 3.2.7 Methodology Deviations Not applicable. 3.2.8 Monitoring Plan Not applicable. 3.3 Environmental Impact Not applicable. 3.4 Comments by stakeholders Not applicable. 4 VALIDATION CONCLUSION Consorcio Eolico Amayo (Fase II), S.A. has commissioned the TÜV NORD JI/CDM Certification Program to validate the project: Amayo Phase II Wind Power Project with regard to the relevant requirements of the VCS Standard Version 3. v3.0 23

The project activity generates and sends electrical power from a renewable energy source to the national electric grid. The project intends to reduce GHG emissions to the extent of equivalent electricity generated by fossil fuels based power plants of the grid. In the course of the draft validation 3 Clarification Requests (CLs) were raised. Furthermore no Corrective Action Requests (CARs) or Further Action Request (FAR) was also raised. The review of the project design documentation and additional documents related to VCS requirements; the subsequent background investigation and follow-up interviews have provided TÜV NORD JI/CDM CP with sufficient evidence to validate the fulfilment of the stated criteria. In detail the conclusions can be summarised as follows: - The project is in line with all relevant host country criteria (Nicaragua) and all relevant VCS Standard Version 3 criteria. - The calculation of the project emission reductions is carried out in a transparent and conservative manner, so that the calculated emission reductions of 69,915 tons CO2e is most likely to be achieved in a yearly basis. - The project activity meets the criteria of the clauses 1.2, 1.3, 1.5, 1.6, 1.7, 1.9, 1.10, 1.12.1, 1.12.2, 1.12.3, 1.12.4 and 1.13 of the VCS PD as per VCS version 3 and is likely to achieve the estimated emission reductions. The conclusions of this report show, that the project, as it was described in the project documentation, is in line with all criteria applicable for the validation and the project is likely to achieve estimated GHG emission reduction or removals. v3.0 24

5 REFERENCES Table 5-1: Reference KML Documents provided by the project participant KML file of project location Document /PDD/ CDM Project Design Document of the project activity Amayo Phase II Wind Power Project, Ver. 6, 2011/06/16 /PSD/ Official notification No. DGE-MCV-0399-06-2010 given by INE on 2010/06/15 regarding the official start date of commercial operation of Consorcio Eolico Amayo, S.A. Fase II (Amayo-II) on 2010/03/01 (evidence of the project start date). /PoT/ Proof of Title: Generation License given on 2009/10/23 by Ministry of Energy to Consorcio Eólico Amayo (Fase II) S.A. (Ministerial Agreement No. 92-DGERR-32-2009) Letter of national approval No. DM-JAS/0449.04.11 issued by MARENA on 2011/04/06. /ValR/ Validation Report No. 2010-0680, Rev. 2, dated 2011/08/29 of the project activity Amayo Phase II Wind Power Project in Nicaragua, by DNV /VCS-PD/ Project Description: VCS Version 3 of the project activity Amayo Phase II Wind Power Project, Draft Version, 2011-10-07 Project Description: VCS Version 3 of the project activity Amayo Phase II Wind Power Project, Version 1, 2012/01/04 Table 5-2: Reference /ACM0002/ Background investigation and assessment documents Document ACM0002 Consolidated baseline methodology for grid-connected electricity generation from renewable sources. Version 12.1 v3.0 25

Reference ISO 14064-1:2006 Document Greenhouse gases Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals ISO 14064-2:2006 Greenhouse gases Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements. ISO 14064-3:2006 Greenhouse gases - Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions ISO 14065:2007 Greenhouse gases - Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition /KP/ Kyoto Protocol /VCS/ Verified Carbon Standard Version 3 Table 5-3: Websites used Reference Link Organisation /vcs/ www.v-c-s.org VCS /unfccc/ http://cdm.unfccc.int UNFCCC v3.0 26