1. A.K.Perumal, CDM – Methodology Panel,SSC-WG, RIT and AT member 25 th March 2012

2. Contents Statistics of micro scale projects in CDM and impact of new additionality guidelines Clarification in current guidelines – RIT perspective Simplification / Revision possible? Exclusive Additionality Tool for DSM-EE project Possibility of extending to EE and RE projects

3. Statistics of Micro Scale projects in CDM Number of projects submitted for validation with a capacity less than 5 MW 239 Total number of project applying this specific guidance (28 May 2010 to June 2011) 25 Among 25 project apply classic additionality along with micro scale. 11 Number of projects in LDC5 Statistics of micro scale projects rejected by CDM-EB (since beginning of CDM until June 2011) 29 / 239 Source : CDM Reform 2011,IGES

4. Further clarity needed on definitions-RIT Perspective Definition in terminology SUZ: Lack of consistency 6 different sources used for projects in country X, one source in country Y and country Z has been defined on sub-regional or local level. Some countries define this terms as “a National Level poverty in country”, some define as “difficult socio-economic conditions”, and other define as “a backward district of the state”. SME, Uniform criteria required globally / locally Interpretation of “Para 2 (d,i) grid connected renewable energy technologies“ and its relevance to WEG projects.

5. Possible improvement-Simplication/Revision Increase the current limits of micro scale additionality to PoA projects? What is the purpose of micro scale additionality – dissemination of RE/EE sources / Reduced transaction cost / regional distribution ? Can a methodology (project type) which consider suppressed demand while estimating the emission factors be excluded from applying micro scale additionality ? (Double benefits) Can direct registration of RE project activities be allowed after an LoA is provided? Secretariat to review the completeness and compliance of the monitoring plan and the monitoring methodology (eg: parameters and GEF) ?

6. Exclusive additionality tool for DSM –EE projects Barriers at the Consumer Level High consumer discount rate Tight cash situation plus limited ability to borrow High Investment priorities Lack of information Split Incentives Barriers at the Market Level Unavailability of energy-efficient products. Insufficient capability to manufacture energy-efficient products High import tariffs on energy-efficient products Barriers at the Financial Institution Level Potentially high credit risks Small investment size Lack of financing history and expertise Barriers at the Government Level Subsidized energy prices Lack of capability and budgetary resources Inability to enforce codes and standards

7. Possible Criteria for off-grid RE generation projects. These technology could be qualified under positive list according to the classification below if they supply more than [XX]% to domestic household consumers: Micro/Pico-hydro ( with power plant size up to XX kW) Micro/Pico-Wind turbine (up to XX kW) PV-Wind Hybrid (up to XX kW) Geothermal (up to XXX kW) Biomass Gasification / Biogas (up to XX kW)

8. Possible Criteria for Rural electrification projects These category of energy distribution projects for areas where the consumers do have access to electricity could be classified under: Average national rural electrification rate in the host country is less than XX%; The project activity is implemented in an underdeveloped rural zone of the host country identified by the government with one of the following criteria satisfied: The nearest distance to a grid from the project area is greater than XX km The proportion of population is below $XX per day, based on PPP in the zone is greater than [XX] %.This should be based on the most recent XX years data. The ratio of: Total installed capacity of RE technology in off-grid generation Total installed capacity of grid + Off-grid generation in the host country XX %

9. Thank You