CFL Lighting Scheme – Bachat Lamp Yojana CDM Requirements

History (1)

Current Process  Empanelment of Investor with BEE  Investor and DISCOM identify small scale project areas within BLY Program  Signing of Tripartite Agreement  Investor Develops small-scale project (the “CPA”) and submits to BEE  CPA is validated by a DOE  Investor secures financing for implementation  CFL distribution  Monitoring, strictly monitoring, of CPA following UN approved methodology and BLY Program design.  Verification and Allocation of CERs from CPA by BEE (as Coordinating and Managing Entity for the BLY Program)

Progress today  BLY PoA registered 29 April 2010  Number of CPAs included as of 20 Jan  Number of CFLs expected to be installedabout 25 to 17 millions (Based on 42 CPAs CFLs per CPA)  Number of CPAs implemented including CFLs in sockets duly verifiedless than 10%

CDM Requirements At time of implementation – many requirement, the most important include:  Develop and maintain database of each household provided with CFLs (by number and voltage)  Independently certified destruction of collected ICLs  Independently certified destruction of fused and/or broken CFLs  Verified completion of distribution  Verification of accuracy of database  Completion of CPA implementation and declaration of the Start Date for carbon crediting  Third party Monitoring Survey to establish percentage of CFLs distributed and maintained in sockets

Work Ahead Regarding CDM guidelines on Verification of PoAs. EB 55 – Annex 38 indicates:  only a Designated Operational Entity (DOE, i.e. DNV, TUV Sued, TUV Rheinland, etc.), who has not performed validation/inclusion/renewal of crediting period activities for the PoA shall process verification. BEE is requesting to allow the same DOE to perform several functions (inclusion, verification, etc.).  request for issuance shall relate to all CPAs included in the PoA during the specified monitoring period. BEE is requesting to change language and intention for requests shall relate to all CPAs implemented by the same operator [Implementer/Investor] that are included in the PoA during the specified monitoring period. Regarding implementation. Sharing of experience in the implementation and verification process between BEE, DISCOMs and Implementers will benefit of all parties; hence, the request to BEE to facilitate such exchange.

Further information or queries to: Isabel Alegre Operations Director C-Quest Capital