1. CDM based CFL Lighting Scheme “Bachat Lamp Yojana” Initiated by

2. 2 Clean Development Mechanism (CDM)

3. 3 Overview  Objectives & benefits of BLY  Current Status  Scheme Architecture  Roles & Responsibilities of involved stakeholders  State wise BLY status & achievements  Barriers to BLY Scheme

4. 4 Objective What Quality long-life CFLs would be distributed to grid-connected residential households in exchange of a incandescent lamp (ICL) and INR 15 Who Implementers who possess both finance and project management skills How The project cost is covered through sale of GHG emission reductions also known as CERs achieved in the respective Project areas. Specifications of CFLs  Confirm to IS15111 viz. Life >= 6000 hrs Power factor >= 0.85  Confirm to IS 418:2004 viz. Lumen output >= the ICL replaced.  CFLs carry a BLY logo

5. 5 Benefits of BLY Scheme Compared to incandescent lamps, CFLs give 80% energy savings without compromising lumen intensity This electricity saving is considered taking place directly at the generation end of grid. Since grid is fossil fuel dominated, savings translate to avoided CO 2 from coal GHG reduction estimate 1 tCO 2e reduction can be achieved by replacing Ten 100 W ICL or Twenty 60 W ICL

6. 6 Benefits to Stakeholders STATE – -Reduce load shedding -Improves revenues -Increase in Comfort Level DISCOMS – - Reduce peak demand (20 to 30%) - Improves revenues - Customer satisfaction - Reduction in costly peak power Investor-- Profit making business through CDM mechanism End User – Reduction in energy bill & improvement in light output COUNTRY – - Conservation of fossil fuels - Accelerates the development - Reduction in GHG emissions - Energy Security

7. 7 Approach Driver Reduce first price of CFLs using CDM revenue for domestic users and accelerate Market Transformation. Value Addition CDM Programme of Activities registered on 29th April 2010. BEE is the Co-ordinating and Managing Entity (CME) for BLY. Potential Benefit by 2020 0.5 million light-points per project, > 400 projects possible to cover India Annual avoided capacity ~ 4000 MW

8. 8 BLY Role Players UNFCCC CDM-EB Registration & CER issuance DOE Validation & Verification BEE BLY PoA Managing Entity Implementer Investor invests into a BLY project DISCOM assists investor in a BLY project Supporting Agency e.g. Sample Survey Agency DISCOM

9. 9 Buyer in Annex I Country CFL IMPLEMENTER PoA -Manager HOUSEHOLD DOE CDM EB Payment for CERs CERs sold CFLs to replace ICLs Allocation of CERs Monitoring report DISCOM Fused CFLs returned Replaced ICL lamp CFL = Compact Florescent Lamp ICL= Incandescent lamp DOE = Validators BEE = Bureau of Energy Efficiency DISCOM = Distribution Company DNA Host Approval Safe disposal of fused CFL/ replaced ICL Provide CPA-DD Consumer database Access to sample groups Coordinating & Managing entity Contract for implementation BLY Scheme Architecture Communication Buying CFL Issuance of CERs

10. 10 Project Development process with Private Investors Empanelment of Investor with BEE Investor and DISCOMS identify SSC-CPA Area Investor and BEE sign bilateral agreement Investor and DISCOM sign bilateral agreement Signing of Tripartite agreement Investor secures finance and sources CFLs Investor develops CPAs and submits to BEE CPA validation and inclusion by DoE CFL distribution by Investor Project area monitoring by DoE CPA verification by DoE and CER issuance to POA Allocation of CERs by BEE

11. 11 Implementation Methods DISCOMs may tender out the areas for BLY implementation with strict conditions to implement the projects Impose penalty for non compliance of the timelines of distribution in 3 months Selecting private Investors to implement the projects in some areas SPV (Special Purpose Vehicle) May be created in the state for implementation of BLY(e.g Kerala) SPV may get empanelled with BEE and implement the project Govt may arrange finance for SPV Create a SPV in the state for Implementation

12. 12 Role of BEE Acts as overall PoA co-ordinator Support in Awareness of BLY Inclusion of CPAs in the PoA upon satisfaction of the eligibility criteria stipulated in the PoA-DD. Official communication with the CDM–EB, DOE and Indian DNA(Designated National Authority) Facilitate verification of CERs and their allocation to the investors

13. 13 Role of CFL Investor Preparing CDM Programme Activity Design Documents (CPA-DDs) for CDM project and submitting them to BEE. Procures and distributes CFLs at a price comparable to ICL lamps. -Collection of ICLs and arrange for their destruction Get the verification surveys done for issuance of CERs -Preparation of Monitoring Report and submit to BEE/CME Collection of end-of-life CFLs and arranging for their safe disposal as per regulatory norms.

14. 14 Role of DISCOM Provides access to database of households and assist in installation of CFLs Assist in distribution of CFL Lamps in exchange of incandescent lamps Assists implementer in Selection of monitoring survey as required under AMS-II.J Provide temporary space for safe storage of replaced ICLs for independent inspection

15. 15 Potential Role of SDAs in BLY SDA’s are the nodal Agencies for implementation of BEE schemes in the states. State level promotion of BLY Scheme. Confidence building of DISCOMS and other stakeholders SDA’s play a very important role in facilitation and support of project level meeting if required.

16. 16 Support from BEE BEE acts as a Managing and Co-ordinating Entity for the BLY projects Supports in awareness campaign Provides EOI Template to DISCOM for selecting the Investor. Technical support from BEE for development of BLY projects Provides all types of agreements, RFP, EOIs, templates required for development of CPA-DD.

17. 17 Progress In Bachat Lamp Yojana Registration of BLY as Small-Scale CDM Programme of Activities (SSC-PoA ) in the UNFCCC- EB on 29th April 2010. 50 CPAs included in the BLY PoA. Till now 29 million CFLs are distributed. No. of empanelled investors with BEE - 4 Monitoring & Verification process for BLY-PoA is initiated

18. 18 Current Status* CoverageStatus Included CPAs50 Stand alone5 Empanelled Investors4 Investment Outlay Per CPA (Approx..) INR 5 Crore; $ 1.13 million CFLs Distributed(in millions) In CPAs21.5 Stand alone7.8 * As of September 2013 Geographic Coverage

19. 19 CFL Distribution in Lakhs

20. 20 Barriers Sudden fall in CER prices in international markets (11 Euro to 0.1 Euro) Uncertainty related to the international climate change negotiations Increased raw material cost for CFL manufacturing (Tri-band phosphorus) Reduction in fiscal benefits for CFL industries Lack of investors due to low CER prices

21. 21 Enable energy efficiency …using CDM Contact Information: Bureau of Energy Efficiency (Govt of India, Ministry of Power) 4 th Floor, Sewa Bhawan, R. K. Puram New Delhi- 110 066, India. Tel: 011- 26179699 Fax: 011- 26178352 Email: psamal@beenet.inpsamal@beenet.in Website: www.bee.gov.in