CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAMME OF ACTIVITIES DESIGN DOCUMENT · PDF...

42
SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01 CDM – Executive Board page 1 This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM-SSC-PoA-DD) Version 01 CONTENTS A. General description of small-scale programme of activities (SSC-PoA) B. Duration of the small-scale programme of activities C. Environmental Analysis D. Stakeholder comments E. Application of a baseline and monitoring methodology to a typical small-scale CDM Programme Activity (SSC-CPA) Annex 1: Contact information on Coordinating/managing entity and participants of SSC-PoA Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan NOTE: (i) This form is for the submission of a CDM PoA whose CPAs apply a small scale approved methodology. (ii) At the time of requesting registration this form must be accompanied by a CDM-SSC-CPA- DD form that has been specified for the proposed PoA, as well as by one completed CDM-SSC- CPA-DD (using a real case). Annexes

Transcript of CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAMME OF ACTIVITIES DESIGN DOCUMENT · PDF...

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 1

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

CLEAN DEVELOPMENT MECHANISM SMALL-SCALE PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM

(CDM-SSC-PoA-DD) Version 01

CONTENTS

A. General description of small-scale programme of activities (SSC-PoA)

B. Duration of the small-scale programme of activities C. Environmental Analysis D. Stakeholder comments

E. Application of a baseline and monitoring methodology to a typical small-scale CDM

Programme Activity (SSC-CPA)

Annex 1: Contact information on Coordinating/managing entity and participants of SSC-PoA Annex 2: Information regarding public funding Annex 3: Baseline information

Annex 4: Monitoring plan

NOTE:

(i) This form is for the submission of a CDM PoA whose CPAs apply a small scale approved methodology. (ii) At the time of requesting registration this form must be accompanied by a CDM-SSC-CPA-DD form that has been specified for the proposed PoA, as well as by one completed CDM-SSC-CPA-DD (using a real case).

Annexes

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 2

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

SECTION A. General description of small-scale programme of activities (PoA) A.1 Title of the small-scale programme of activities (PoA): >> Promotion of the Improved Cooking Stove (ICS) – Nepal

Version: 01

Date: 29/09/2011 A.2. Description of the small-scale programme of activities (PoA): >> The Promotion of the Improved Cooking Stove (ICS) – Nepal, a CDM Program of Activities (PoA) is an initiative to be implemented by Alternative Energy Promotion Center (AEPC)1

Energy Sector Assistance Program of AEPC was started in 1999 with support from the Danish Government with a view to achieving ongoing sustainability in the rural / renewable energy sector in Nepal within a 20 year timeframe. The Biomass Energy Support Program (BESP) is the programme executed by Biomass Energy Component (BEC), one of the components of ESAP. The aim of BESP is to improve the kitchen environment for rural population and introduce new biomass energy technologies through commercialisation. As around 77.7%

under Ministry of Environment, Government of Nepal with financial assistance from government and development partners including equity contribution of the users. The main objective/goal of the PoA is to promote dissemination of Improved Cooking Stove (ICS) with replacement of existing Traditional Cooking Stoves (TCS) to the existing users and to the new users in Nepal. The project activity will contribute towards improving livelihoods of the rural households through improved access to energy services from the improved cooking stoves. The project will also contribute towards checking deforestation and degradation of forests and also improve the quality of life of the targeted group through reduction of drudgery, time and money spent on fuel wood collection and through improvement of the indoor environment. A small-scale CPA under the programme will be implemented and maintained by AEPC in the Nepal

General operating and implementing framework of PoA

AEPC was established in 1996 as a semi autonomous body under the then Ministry of Environment, Science and Technology for the promotion of Renewable Energy Technologies (RETs) in Nepal. The overall objective of AEPC is to popularise and promote the use of renewable energy technologies to raise living standards of rural people to protect the environment and to develop commercially viable alternative energy industries in the country.

2

1

of Nepal’s energy consumption is based on traditional fuel wood stoves that have low efficiency and cause substantial indoor air pollution, BESP seeks to improve the capacity of local organisations to scale up application of ICS and develop application of other biomass energy technologies such as metal stoves, briquetting, biomass gasifiers, cogeneration and biofuels. The overall strategy of BESP is to promote biomass energy through Non Governmental Organisations (NGOs), forest user groups and other relevant organisations based on best practices guidelines and support mechanisms. The program aims to install annually 35,000 mud based improved

http://www.aepc.gov.np/ 2 WECS (2010), Energy Sector Synopsis Report 2010, Water and Energy Commission Secretariat, Kathmandu, Nepal , Page 81

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 3

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

cooking stoves in the Terai region and 3,000 metallic improved cooking stoves in high hills (mountainous) region3

• Raise awareness on ICS as well as other biomass energy technologies to reduce indoor air pollution and fuel wood consumption

of Nepal during the second phase of ESAP.

BEC of ESAP support AEPC to manage ICS program and hence, for all legal matters, AEPC shall serve as PoA managing entity and sole legal representative of the program. Therefore, AEPC shall be the coordinating entity which communicates with the CDM Executive Board, including on matters relating to the distribution of CERs. AEPC will ensure that all CPAs under its PoA are neither registered as an individual CDM project activity nor included in another registered PoA and that the CPA is subscribed to the PoA. AEPC will manage a central database for all CPAs.

AEPC would coordinate with the users of ICS/ individual Project Proponents (PPs) to ensure that all requirements with respect to a CDM PoA such as assisting with validation and registration, record keeping, monitoring and survey of households at a regular interval are met. In addition to implementing the project as per design and complying with the requirements of the CDM-PoA, the project management would also be responsible for the environmental integrity of the project.

Policy/measure or stated goal of the PoA

The ICS program is aligned with the Government strategy as the main objective of the ICS program is the dissemination of the appropriate improved cooking stove to the rural household of Nepal resulting in the reduction of firewood consumption leading to climate mitigation in a sustainable manner.

The Rural Energy Policy (2006) of Government of Nepal has set framework and policy for the renewable energy promotion. This policy emphasises to promote clean, reliable and appropriate energy sources as a means to reduce rural poverty and protect the environment. The policy highlights the following strategies related to the biomass energy:

• Promote research, development and dissemination of ICS and other biomass energy technologies that are appropriate for different geographical and cultural settings.

• Technology transfer of ICS in rural areas • Encourage establishment of information centres and exhibitions • Discourage direct burning of cow dung .

The aim of the PoA is to promote dissemination of Improved Cooking Stove (ICS) with replacement of existing Traditional Cooking Stoves (TCS) to the existing users and to the new users in Nepal. The project activity will contribute towards improving livelihoods of the rural households through improved access to energy services from the improved cooking stoves. The carbon revenues will be utilised to recover the portion of the costs. The contribution of the PoA to sustainable development of the country is significant in terms of environmental, technological, economic and social well being. The sustainable development benefits of the project have been discussed below.

Confirmation that the proposed PoA is a voluntary action by the coordinating/managing entity

The proposed PoA is a voluntary action by AEPC since:

The installation of the ICS is a voluntary action by the households. The targets formulated by the Nepal Government for the dissemination of ICS are not mandatory. The approach of the program is demand driven. Every household makes a substantial part of the

investment itself. 3 VDCs intersected by and above 2000 metre contour lines in altitude or houses facing North at altitudes of 1500 metres.

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 4

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Sustainable development benefits

The following sustainable development benefits are envisaged from the project activity.

a) Environment well being

The project will lead to the reduction in the wood consumption so that the natural recovery of forests and/or reforestation could take place,

The project will lead to reduction in Indoor Air Pollution from wood smoke and avoid smoke related health disorders

The reduction in biomass consumption for cooking through efficient use leads to improved ecological balance.

The protection of standing forests will ensure the maintenance of watersheds that regulate water table levels and prevent flash flooding

The project activity will lead to prevention of fire hazards in the household kitchen

b) Social well being

The project will contribute to the preservation of wood resources so as to avoid inter-communal and/or inter-religious conflict over resources.

There will be reduction of the workload as a result of reduced in time for colleting the firewood which can be used more productively in other income generating activities.

The project will effectively address gender and poverty reduction issues through increased economic activities and employment opportunities bringing about better living conditions.

c) Economic well being

The fabrication, operation and repair and maintenance of ICS’s are expected to provide employment to the local people.

The costs incurred in the purchase of firewood will be reduced through increased efficiency of the ICS thus leading to lesser firewood consumption.

d) Technological well being

The introduction of locally manufactured technology with improved energy efficiency helps in technological self-reliance in the area.

A.3. Coordinating/managing entity and participants of SSC-POA: >> AEPC would be the managing/coordinating entity of the PoA and would communicate with the Board. The contact details of AEPC are provided in the Annex 1 of this PoA DD. AEPC will implement, monitor, maintain the database, support private sector, quality control, fund administration and awareness creation including management of ICS project.

Name of Party involved (*) ((host) indicates a host Party)

Private and/or public entity(ies)

project participants (*) (as applicable)

Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No)

Government of Nepal (Host) AEPC under Ministry of Environment

No

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 5

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

To be decided at CPA level To be decided at CPA level To be decided at CPA level A.4. Technical description of the small-scale programme of activities: >> The existing traditional stoves used in Nepal are simple structures made from clay or having stone or metal tripods. These stoves are very inefficient because they have poor air flow and insulation. The proposed project activity is efficiency improvement over the existing traditional cook stoves which will save non-renewable energy biomass in the baseline scenario.

Improved cook stoves for Terai region (Mud ICS) are made of clay, rice husk, dung and a few metal rods. The household stove will have one or two potholes with chimney. A baffle is used to direct the flame and hot air to the second pot hole in case of the two pot hole stove. The mud ICS is one of the most simple, inexpensive and widely used technologies designed to improve combustion efficiency of biomass and reduce exposure to indoor air pollution.

The improved cooking stove (metallic stove) for the high hill region is similar to mud improved cooking stoves but made from metal to allow space heating as well. Adjustable air vent in the main door allows regulation of air follow and damper in flue pipe allows transfer of heat efficiently towards cooking pots.

Figure 1: Mud Improved Cooking Stove Figure 2: Metallic Improved Cooking Stove

Technical Description for the Mud Improved Cooking Stoves:

The following table provides the technical description for the various types of the mud improved cooking stoves promoted by BESP: S.N. Stove Type Length Breadth Height Chimney

height Fire gate*

No. of rod

1 Single Pot hole Mud ICS

8" + X 8" + X 10" 48" to 60" 6" x 7" 4

2 Two Pot hole plain type Mud ICS

12" + X + Y 8" + X 10" 48" to 60" 6" x 7" 6

3 Two Pot hole raised 12" + X + Y 8" + X 10" / 48" to 60" 6" x 7" 6

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 6

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

S.N. Stove Type Length Breadth Height Chimney height

Fire gate*

No. of rod

type Mud ICS 12" 4 Three Pot hole plain

type Mud ICS 12" + X + Y 8" + X / 12'

+ 2Y 10" 48" to 60" 6" x 7" 10

5 Three Pot hole raised type Mud ICS

12" + X + Y 8" + X / 12' + 2Y

10" / 12"

48" to 60" 6" x 7" 10

6 Single Pot hole Rocket Mud ICS

14" to 16" 16" 15" - 16"

6' x 6" 2 + grate

Diameter of first pot X Diameter of second

pot Y

Size of mud brick 8" x 4" x 2" Chimney brick 8" x 8" Chimney hole

diameter 4"

* For large sized pot (> 12" dia.), the width of fire gate should be 1/2 x pot diameter and 7" height The dimension of Multipurpose Mud ICS is guided by the combined size of single and two pot hole mud ICS.

Technical Description for the Metallic Improved Cooking Stoves:

A typical Metallic Improved Cooking Stove with three pot holes has the following technical description • Weight of Stove :~ 40 Kg per set (with chimney) • Length of Stove : 675 mm • Breadth of Stove : 430 mm • Height of Stove : 260 mm • No of Pothole : 3 • Water Tank Capacity : 9 liters • Material : MS 4mm top Plate, 1.6 mm body, SS water tank • Life : 25,000 operation hours

The above mentioned dimension for the stove might change based on the usage requirement of the user. The stoves can be single pot hole, 2 pot hole and 3 pot hole as per the requirement of the user.

A.4.1. Location of the programme of activities:

>> The Promotion of the Improved Cooking Stove (ICS) – Nepal PoA is located in Nepal. The ICS will be sold by pre-qualified companies for ICS. The actual location of each ICS will be recorded after the sales transaction takes place and the ICS has been implemented. BESP will maintain an up-to-date database of all ICS which will be the basis for the lists of ICS in each CPA. The geographical coordinates of Nepal are:

Latitude –26.20 degree North to 30.45 degree North

Longitude – 80.07 degree East to 88.20 degree East A.4.1.1. Host Party(ies): >>

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 7

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Nepal A.4.1.2. Physical/ Geographical boundary: >> The geographical boundary of the PoA will be Nepal. The PoA can include ICS in all 75 districts of Nepal. A.4.2. Description of a typical small-scale CDM programme activity (CPA): >> The CDM Programme Activities (CPAs) would be implemented in high hills (mountainous) and terai districts across the Nepal. Under the project, the Improved Cooking Stoves (ICS) will be disseminated to the individual household replacing the Traditional Cooking Stoves.

The AEPC along with Regional Renewable Energy Service Centers (RRESCs), District Renewable Energy Services Centers (DRESCs) and Local Partner Organizations (LPOs) in coordination with DEEU/S-DDC may define the zones of intervention where the ICS of the CPA are disseminated. However, the geographical boundary of the CPA shall be Nepal. The CPA is limited by the requirements of Guidelines for demonstrating additionality of microscale project activities” (version 02). Further, for this PoA, additional eligibility condition has been added regarding installed capacity threshold. The sum of total energy saved by all ICS implemented under a specific CPA shall not exceed 60GWhth

1. All ICS to be included in the CPA should be located in Nepal.

. Once the maximum number of appliances under the threshold is reached (see Section E.2), the CPA shall be closed, and any additional ICS will not be counted towards emission reductions.

During the life of the SSC-PoA, the number of CPAs implemented will increase and be monitored according to the monitoring plan as described in section below. Different CPAs will be installed in the same areas, but in different years. A record keeping system with a unique serial number, user’s name, and address, date stove installed/sold including the name of the stove installer or person / institution selling the stove and the amount of direct subsidy for every ICS disseminated will ensure that each ICS can be traced to one specific CPA to avoid double counting. A.4.2.1. Technology or measures to be employed by the SSC-CPA: >> Each CPA will employ the technology as described under section A.4. A CPA includes either Mud Improved Cooking Stove or Metallic Improved Cooking Stove at different locations throughout Nepal.

The coordinating and managing entity AEPC will maintain a CPA wise database. The subsidy to the Metallic Improved Cooking Stove household’s is delivered through ICS disseminating/selling companies or local partner organisations only after the company/ organisation submit completion report to BESP and then BESP recommends for subsidy to AEPC with compilation of all completion reports at that point of time. Finally AEPC will prepare completion report for each CPA based on subsidy disbursement record. Each ICS will have unique GPS reading, a unique serial number, user’s name, and address, date stove installed/sold including the name of the stove installer or person / institution selling the stove and the amount of direct subsidy. A.4.2.2. Eligibility criteria for inclusion of a SSC-CPA in the PoA: >> The criteria for the inclusion of the CPAs under this PoA are listed below:

2. All ICS to be included in the CPA should be household ICS (Mud or Metallic Stoves).

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 8

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

3. A CPA should not exceed the microscale limits (60GWth4. SSC-CPA follows the baseline and monitoring methodology AMS II G/v03 and should meet its

eligibility criteria as discussed in section E.2.

) for Type II projects.

5. Each ICS to be included in the CPA should have a unique number. These numbers will be used to confirm that each ICS is counted only once and not already developed under a different CDM project or CPA.

6. All ICS to be included in the CPA should be implemented under the BESP which provides technical guarantees and ensures that the ICS is subject to BESP's quality control programs.

7. The owners of all ICS to be included in the CPA should have signed an agreement in which it allows AEPC to market the emission reductions from the installation and operation of the ICS.

8. All the ICS to be included in the CPA should displace the use of non-renewable biomass for cooking

A.4.3. Description of how the anthropogenic emissions of GHG by sources are reduced by a SSC-CPA below those that would have occurred in the absence of the registered PoA (assessment and demonstration of additionality): >> Voluntary Coordinated Action The Promotion of the Improved Cooking Stove (ICS) – Nepal PoA is a voluntary action. The Nepalese government has formulated targets for the BESP but these are not mandatory. In Nepal there are also no legal obligations with respect to the adoption or the implementation rate of ICS.

The relevant national and sectoral policies for the promotion of biomass energy and other renewable energy technologies in Nepal the Rural Energy Policy, the Renewable (Rural) Energy Subsidy Policy and the Renewable (Rural) Energy Subsidy Delivery Mechanism.

Rural Energy Policy (2006): Government of Nepal has promulgated the Rural Energy Policy 2006 to promote clean, reliable and appropriate energy sources as a means to reduce rural poverty and protect the environment. The policy includes the following strategies related to the biomass energy:

• Raise awareness on ICS, biogas as well as other biomass energy technologies such as briquettes, biofuel, biomass gasification, to reduce indoor air pollution and fuel wood consumption

• Promote research, development and dissemination of ICS, biogas and other biomass energy technologies that are appropriate for different geographical and cultural settings.

• Technology transfer of ICS in rural areas • Encourage establishment of information centres and exhibitions • Discourage direct burning of cow dung

Renewable (Rural) Energy Subsidy Policy (2009): Renewable (Rural) Energy Subsidy Policy (2009) has made provisions of financial subsidy support for the metallic stoves disseminated in the high hills regions of Nepal. The subsidy is provided in order to maximise service delivery in the application of renewable energy resources and technologies, and effectively utilise grant assistance provided by donors, Government of Nepal in providing subsidies on selected RETs to low income rural households. The subsidy is being disbursed by AEPC through a simple and effective system. The subsidy amounts on Biomass Energy Technologies are – GoN is promoting ICS in the mid-hills without direct subsidies. However, in high mountain district, NPR 4000 is being provided on 3 pot hole metallic ICS and NPR 2700 on 2 pot hole metallic ICS.

Renewable (Rural) Energy Subsidy Delivery Mechanism (2010): The Renewable (Rural) Energy Subsidy Delivery Mechanism, prepared based on the Subsidy Policy, has made arrangements to channel

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 9

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

the subsidy to biomass energy and other renewable energy technologies in Nepal. The subsidy is provided to the metallic ICS users through the BETs manufacturer based on predetermined criteria.

The above policies only provide the incentives for the installation of household ICS and do not provide any obligations or enforced targets.

The additionality for the project is demonstrated using the “Guidelines for demonstrating additionality of microscale project activities” (version 02). As mentioned in section E.2 of the PoA DD, each CPAs under this PoA will result in an annual energy savings of below 60GWhth (20GWh) and will be implemented in Nepal, a Least Developed Country (LDC)4

(i) A record keeping system for each CPA under the PoA,

of Asia. The project is this additional and there is no need for further assessment and demonstration of additionality. The criteria for the applicability of Guidelines for demonstrating additionality of microscale project activities have been discussed in section E.5.2. A.4.4. Operational, management and monitoring plan for the programme of activities (PoA): A.4.4.1. Operational and management plan: >> The operational and management arrangements established by the coordinating/managing entity for the implementation of the PoA are presented below:

BESP will register all ICS implemented under the PoA in a database and report to AEPC. The database will include at least the following information for each ICS:

• A unique serial number • User’s name and address • Date of stove installed/sold • Name of the stove installer or person/ institution selling the stove and • Amount of direct subsidy received, if applicable

(ii) A system/procedure to avoid double accounting e.g. to avoid the case of including a new CPA that has been already registered either as a CDM project activity or as a CPA of another PoA,

Double counting is avoided by giving each ICS a unique number. Avoiding double counting is already part of the regular operations of BESP since it should also avoid that one household receives more than one subsidy. A record keeping system with a unique serial number, user’s name, and address, date stove installed/sold including the name of the stove installer or person / institution selling the stove and the amount of direct subsidy for every ICS disseminated will ensure that each ICS can be traced to one specific CPA to avoid double counting.

All ICS implemented under BESP are listed in BESP database. Since only ICS that are part of the BESP will be included in this PoA, the emission reduction from an ICS cannot be developed under more than one CDM projects or CPA of another PoA. Upon inclusion, AEPC will provide an up-to-date extract of the BESP database which allows the DOE to check whether any ICS are counted double.

(iii) The SSC-CPA included in the PoA is not a de-bundled component of another CDM programme activity (CPA) or CDM project activity.

4 http://www.unohrlls.org/en/ldc/related/62/

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 10

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

The proposed project is not a de-bundled component of a large-scale CDM project activity.The paragraph 10 of Guidelines on assessment of debundling for SSC project activities (Version 03, EB54) states that " If each of the independent subsystems/measures (e.g., biogas digester, solar home system) included in the CPA of a PoA is no larger than 1% of the small-scale thresholds defined by the methodology applied, then that CPA of PoA is exempted from performing de-bundling check i.e., considering as not being a de-bundled component of a large scale activity."

The annual energy savings per independent subsystems/measures (Improved Cooking Stove) is 0.0088139 GWhth

(iv) The provisions to ensure that those operating the CPA are aware of and have agreed that their activity is being subscribed to the PoA

(= 0.0029380GWh). This value is smaller than the limit of 0.6GWh. Also the ICS are disseminated in multiple locations across the country. Hence the project activity is not a debundled component of a large scale CDM project activity.

The owners of a ICS signs a covenant for BESP in which they state that “The ICS owner transfer all legal rights, interests, credits, entitlements, benefits or allowances arising from or in connection with any greenhouse gas emissions reductions arising from the operation of the ICS (Emission Reduction), and agrees to take all necessary action required to ensure the transfer of those Emission Reductions to the Alternative Energy Promotion Centre or its nominee, including executing any relevant documents.” A.4.4.2. Monitoring plan: >> The monitoring of the CPA under this PoA will be done by sampling method. For each CPA, all parameters as detailed in section E.7.1.will be monitored according to the procedures and monitoring framework established in E.7.2. The CME will store the data in an electronic database. A.4.5. Public funding of the programme of activities (PoA): >> The program receives funding from the following sources:

Nepalese Government

Government of Norway

Danish International Development Agency (DANIDA)

Department for International Development (DFID), United Kingdom

Kreditanstalt für Wiederaufbau (KfW)

Referring to OECD guidance on use of ODA funding for CDM projects the issue of diversion of ODA has been addressed for all donors involved in the BESP project.5

5 OECD, 2004. DAC/CHAIR(2004)4/FINAL: ODA eligibility issues for expenditures under the clean development mechanism (CDM), available at: http://www.oecd.org/dataoecd/12/47/33657913.pdf

SECTION B. Duration of the programme of activities (PoA) B.1. Starting date of the programme of activities (PoA): >> 01/10/2011

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 11

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

B.2. Length of the programme of activities (PoA): >> The length of the PoA is considered as 28 years. SECTION C. Environmental Analysis >> C.1. Please indicate the level at which environmental analysis as per requirements of the CDM modalities and procedures is undertaken. Justify the choice of level at which the environmental analysis is undertaken:

1. Environmental Analysis is done at PoA level 2. Environmental Analysis is done at SSC-CPA level

C.2. Documentation on the analysis of the environmental impacts, including transboundary impacts: >> There are no major impacts on the environment due to the installation of the ICS. The local ecology is not likely to get impacted by this type of project activity. The project activity included under this PoA helps in reducing the consumption of the firewood thus reducing the pressure on forest, reduces indoor air pollution and reduce use of dung cakes as fuel which can be used as a thus having positive environmental impacts. C.3. Please state whether in accordance with the host Party laws/regulations, an environmental impact assessment is required for a typical CPA, included in the programme of activities (PoA),: >> As per the Environment Protection Act dated 30 January 1997 and Environment Protection Rules dated 26 June 1997, 12 sectors are required to undertake environmental impact assessment studies. It should be noted here that EIA is not a regulatory requirement in Nepal for installation of the ICS at the individual household level. SECTION D. Stakeholders’ comments >> D.1. Please indicate the level at which local stakeholder comments are invited. Justify the choice:

1. Local stakeholder consultation is done at PoA level 2. Local stakeholder consultation is done at SSC-CPA level

The key stakeholders of the program both at PoA and CPA level are same. They are potential ICS users, NGOs promoters, local governments, journalists, donors, BESP/ESAP, AEPC relevant Government institutions including other indirect stakeholders and equally applicable . The local stakeholder consultation meeting is done at PoA level. D.2. Brief description how comments by local stakeholders have been invited and compiled: >> A local stakeholder meeting was conducted at Bhairahawa for ICS POA CDM Project Activity as per the requirement for CDM project. The local stakeholder consultation meeting was conducted on 20 April 2011, Wednesday on Nathamal Giniya Devi Trust Meeting Hall, Bhairahawa, Rupandehi. The local

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 12

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

stakeholder’s from the nearby district, Improved Cooking Stove users, Traditional Cooking Stove user, district officials, media persons and civil society, were invited for the local stakeholders meetings through the individual letters and though an advertisement in the local news paper. The meeting was attended by Improved Cooking Stove users, Traditional Cooking Stove user, Local Development Officer, DNA representative, regional renewable energy service centers, civil society and media persons. The list of participants who attended the meeting can be found in the minutes of meeting.

The comments have been filed and taken into account in the design of the BESP. Since the BESP has been successfully operated for many years, there were little comments on the technical aspects or negative side-effects of the program. D.3. Summary of the comments received: >> The following table provides the details of the comments received during the local stakeholder consultation meeting:

Question raised by the stakeholders and answered by PP

S.N. Question Answer

1. How many renewable energy CDM projects have been registered in Nepal? Are there any other new CDM projects being developed in Nepal?

There are altogether three registered CDM projects in Nepal. The two projects are related to the Biogas one project is related to the Micro hydro power. AEPC is currently in the process of developing two biogas CDM project activity, one biogas PoA, IWM PoA CDM project activity and ICS PoA CDM project activity.

2. What are the various types of stoves available in the country?

Several types of ICS are now available in Nepal. Among these the most common are the mud ICS which are simple, low cost and can be built by using locally available materials. Various models of mud ICS have been developed and promoted in the mid-hills of Nepal. Among these, the two pot hole stove is the most popular. Other varieties have one and three pot holes. Besides the popular mud ICS, several other types of improved stoves such as metal stoves, air induced stoves, bee-hive briquettes stoves and rocket stoves have also been introduced and are getting popularity.

3. Is there any subsidy for installing the Improved Cooking Stoves in Terai region?

The amount of subsidy for installing the ICS can be found in the Rural Energy Subsidy Policy 2009. The subsidy amounts on Biomass Energy Technologies are – GoN is promoting mud ICS in the mid-hills and Terai areas without direct subsidies. However, in high hills (mountain) district NPR 4000 is being provided on 3-pot hole metallic ICS and NPR 2700 on 2-pot hole metallic ICS.

4. What are the benefits from installing the Improved Cooking Stoves?

The following are few expected benefits from the Improved Cooking Stoves: • Fuel wood consumption will be reduced by about half • Reduction of fire hazards in kitchen

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 13

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

S.N. Question Answer

• Reduced drudgery of women as they spend less time collecting fuel wood, cooking and washing dishes

• Improved health of women due to reduced exposure to smoke

• Increased participation by men in kitchen work because of clean environment

• Reduction in the rate of deforestation of the nearby forests

5. How are the improved cooking stoves being disseminated in the new regions?

The ICS is being implemented through a decentralized approach by establishing local support structures and integrating planning activities with local governments. Field implementation is managed by Regional Renewable Energy Service Centers (RRESCs), who will coordinated with local bodies and identify, train and support District Renewable Energy Service Centres (DRESC) as well as Local Partner Organizations (LPOs). The LPOs will implement the ICS at field level and will be responsible for achieving their targets and reporting back to RRESCs. LPOs will also select, train, supervise and support promoters. Private sector and national/regional NGOs function as Service Providers to provide technical support at field level.

6. Will this Improved Cooking Stove program provide any employment opportunity?

The fabrication, operation and repair and maintenance of ICS’s are expected to provide employment to the local people.

7. How does the ICS project activity reduce the greenhouse gases?

The traditional cooking stove consumes more firewood as compared to the improved cooking stove. The project will lead to reduce GHG emissions, mainly by reducing the consumption of the firewood used for cooking.

8. What are the additional benefits to owners and other stakeholders after registering the ICS program as CDM?

AEPC is currently preparing the Carbon Revenue Utilization Guideline which discusses about the utilization of carbon revenue earned by different renewable technologies. In this guideline, ICS has been identified as one of the technology that is eligible for earning carbon revenue. It is proposed that part of the revenue received from ICS CDM POA will be utilized for providing subsidy to new users, part of the revenue will be utilized for the user benefit plan, preparation of the CDM related documents, validation, verification etc. The 2% of the revenue received will also go to the DNA. The exact proportion of the benefits will be finalized and made available after the approval of Carbon Revenue Utilization Guideline from cabinet.

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 14

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

S.N. Question Answer

9. What would be the additional role and responsibilities of owners and other stakeholders after registering the ICS program as CDM?

The continuous operation of the ICS is a must for receiving the carbon revenue from the ICS CDM project. The user would thus be required to operate the ICS on a continuous basis. In addition to this, the ICS owner has to provide the emission reduction right transfer to AEPC for enabling AEPC to prepare CDM related documents such as the project design document, emission reduction calculation, monitoring reports etc.

Question raised by the stakeholders and answered by PP

S.N. Question Answer

1. What are the benefits that you have observed after using the Improved Cooking Stove?

After installing the improved cooking stove last year, there is a reduction in the firewood consumption, there is less smoke in the kitchen and the children can study near the kitchen because of less smoke. The health hazard related to indoor air pollution has been reduced. There is also the reduction in the time spent for collecting and gathering the firewood

2. Should such kind of project activities be promoted in the other regions of the country?

The technology should also be disseminated in other places because this will have benefits particularly for the women as the improved cooking stove reduce the drudgery of women and also the cooking time.

3. Has the Improved Cooking Stove program generated any employment opportunity in your region?

The improved cooking stove has provided the training to the local people who can now go to the household level and explain them the benefits of the ICS and help them in constructing the improved cooking stove at their household.

4. How have you heard about the Improved Cooking Stove

I have heard about the ICS through radio and through the service providers. There should be more advertisement, orientation, awareness about the technology and program activities at field level. Local languages should be used during publicity campaign.

D.4. Report on how due account was taken of any comments received: >> There were no negative comments received for the project activity. Overall there was unanimous agreement that the proposed project was a beneficial project from sustainability view point to the rural households of Nepal. SECTION E. Application of a baseline and monitoring methodology E.1. Title and reference of the approved SSC baseline and monitoring methodology applied to a SSC-CPA included in the PoA:

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 15

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

>> Type: Type II – Energy Efficiency Improved Projects Methodology: AMS II.G - Energy efficiency measures in thermal applications of non-renewable

biomass Version: Version 03 Reference: http://cdm.unfccc.int/methodologies/DB/6U8JYO9XTLVZ8LJ7GUBSZP145BIDG2 E.2. Justification of the choice of the methodology and why it is applicable to a SSC-CPA: >> The Promotion of the Improved Cooking Stove (ICS) – Nepal meets the applicability criteria of AMS II.G/v03 as follows: Table 1: Justification for the choice of the methodology Criteria (AMS II.G/v03) Explanation This category comprises appliances involving the efficiency improvements in the thermal applications of non-renewable biomass. Examples of these technologies and measures include the introduction of high efficiency biomass fired cook stoves or ovens or dryers and/or improvement of energy efficiency of existing biomass fired cook stoves or ovens or dryers.

The SSC-CPAs under this PoA includes the dissemination of the high efficiency biomass fired cook stoves, improving the efficiency of the existing use of stove and improving the efficiency by 10-15%. Each CPA will save non-renewable biomass which otherwise would have been consumed by less efficiency cooking appliances.

The single pot or multipot portable or in situ improved cooking stoves will have a specified efficiency of at least 20|%.

Project participants are able to show that non-renewable biomass has been used since 31 December 1989, using survey methods or referring to published literature, official reports or statistics.

The non-renewable have been used in the country since 1989. The Baseline Study6

Limit of the SSC-CPAs included under this PoA

The annual energy savings resulting from efficiency improvements will not exceed 60GWh

conducted in 2010/11 demonstrated that the time needed to gather firewood, the price of firewood and the distance travelled to gather firewood is increasing at least since 1989 (please refer to section E.4. for details). In that survey the respondents were asked to provide averages for the time needed to gather firewood, the distance travelled and the price. The average of the estimates from all respondents, showed a clear increase on all three indicators.

th in any year for the crediting period.

The maximum number of ICS eligible to be disseminated in each CPA under this PoA will be limited which will result in an annual energy savings below 60GWhth as shown below:

S.N. Parameter Data ID Value Units Reference 1 Quantity of woody biomass B 4.23 old Tonnes Survey

6 The baseline study was conducted by the independent third party (Nepal Environmental and Scientific Services [NESS] Private Limited, Kathmandu, Nepal)

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 16

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

S.N. Parameter Data ID Value Units Reference used per ICS in the absence of the project activity

2 Efficiency of the system being replaced

η 10.00% old % A default value of 0.10 is considered as specified in the approved methodology AMS II.G/v03

3 Efficiency of the system being deployed as part of the project activity (fraction) - ICS

η 20.00% new % Measured

4 Net calorific value of the non-renewable woody biomass that is substituted

NCV 0.015 biomass TJ/tonne As specified in the approved methodology AMS II.G/v03 IPCC default for wood fuel, 0.015 TJ/tone

5 Annual Energy Savings per system (ICS)

E 0.0088139 y,ICS GWh Calculated using parameter 1,2,3 and 4

th

6 Limit of Annual Energy Saving for Micro-scale project activities

- 60 GWh Guidelines for demonstrating additionality of microscale project activities (version 02), EB60 Annex 25

th

7 Maximum Number of ICS to be included in a CPA

N 6,807 max Calculated [(7) = (6) / (5)]

The real number of ICS to be deployed in a CPA may be higher or lower than the estimated above as the parameters Bold, and ηnew are monitoring parameters and their values are obtained during the verification so an ex-ante estimated limit of ICS numbers will be defined at CPA inclusion stage in order to qualify for microscale project activities.

Hence, once the limit of the SSC-CPA to be eligible for microscale project activity is reached the CPA is closed and only those CPA included in the CPA up to the limit of the SSC-CPA limit shall be considered for the specific CPA. E.3. Description of the sources and gases included in the SSC-CPA boundary >> The project boundary of the SSC-CPA follows the definition in AMS II.G/v03. The project boundary is the physical, geographical area of the use of biomass or the renewable energy. The emissions sources to be included in, or excluded from, each SSC-CPA boundary in the proposed PoA are presented in the table below: Table 2: Sources and gases included in the SSC-CPA boundary Source Gas Included? Justification/ Explanation Baseline: Combustion of non renewable biomass for cooking.

CO2 Yes Major source of emissions CH4 No Not required by methodology, only CO2

N

emission factor for fossil fuels is considered. Conservative Assumption.

2 No O Not required by methodology, only CO2

Project activity: Combustion of non renewable biomass for

emission factor for fossil fuels is considered. . Conservative Assumption.

CO2 Yes Major source of emissions CH4 No Not required by methodology, only CO2 emission

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 17

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Source Gas Included? Justification/ Explanation cooking. factor for fossil fuels is considered.

N2 No O Not required by methodology, only CO2

E.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: >> The baseline scenario is continued use of non renewable biomass for cooking. The rural households in Nepal use non renewable firewood, cow dung and agricultural waste. The use of other fossil fuels like kerosene and LPG is insignificant. Research indicates that use of firewood has a low sensitivity to economic determinants.

AMS II.G requires use of the emission factor of fossil fuel to calculate the baseline emissions. The actual baseline is the use of non renewable biomass.

Methodology AMS II.G states that “in the absence of the project activity, the baseline scenario would be the use of fossil fuels for meeting similar thermal energy needs” . This is a conservative approach to determine the baseline emissions. In absence of the project activities, the intended beneficiaries of the project would continue using the traditional inefficient cooking stoves, consuming high quantity of non-renewable biomass.

Different sources have been used to confirm that NRB is used in Nepal. To determine the actual percentage, national statistics on the supply and demand of firewood have been used. To confirm that NRB continues to be used, the project participants conducted a survey to check whether the reduction in the consumption of firewood is subject to the trends defined in AMS II.G: increasing amount of time needed or distance travelled for firewood gathering, increasing firewood prices or changes in the type of firewood used. The indicators selected to monitor the continued displacement of NRB in the project are:

1) increase in time needed to gather firewood; and

2) increase in distance travelled to gather firewood.

emission factor for fossil fuels is considered.

66.15%7 of the respondents indicated that firewood gathering has become more difficult since 1989. Looking at the average of the survey results, in the period between 1989 and 2010, the time needed for firewood collection increased by 54.18%. In the same period the distance travelled to collect firewood increased to 29.32%8

The trend reported in the above survey is also confirmed by another study by Jean-Marie Baland

. 9

• Nepal’s forest cover declined at an annual rate of 1.8% per year between 1980 and 2000.

, where forest in the Nepalese Himalayas is reported to be degrading at an alarming rate, which could have serious environmental and economic consequences. The following are some of the findings of this study:

7 Table 3.38, Page 29 of Baseline Study 2010/11 conducted by NESS Private Limited 8 Calculated using the data in Table 3.43, Page 32 of Baseline Study 2010/11 conducted by NESS Private Limited 9 Jean Marie Baland, “The Environmental Impact of Poverty: Evidence from Firewood Collection in Rural Nepal”, Boston University - The Institute for Economic Development Working Papers Series, 30 June 2007.

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 18

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

• Forest degradation leads to increased fuel scarcity. “The time needed to collect firewood has increased 60% over the past quarter century, while collections per household have decreased by 40%.”

• Deforestation “is partly irreversible as fertile topsoil is being washed out by soil erosion in deforested areas.”

• The report also concludes that collection time is a good indicator of forest degradation since “A major impact of forest degradation for the villagers is the resulting increase in collection time.”

A report by the Ministry of Population and Environment10

• “The forest area has declined from 45 per cent in 1966 to 29 per cent by the end of the 20th century. The quality of forest has also declined as the shrub land area has doubled from 4.8 per cent in mid-1980s to 10.6 per cent in mid-1990s. The annual deforestation is estimated at 1.7 per cent with 2.3 per cent in the Hill, and 1.3 percent in the Terai.”

confirms deforestation trends in Nepal and connects them with firewood use:

• “In general, forest depletion is increasing due to firewood collection, cattle grazing, and conversion of forests to agricultural land.”

• “Although firewood consumption is slightly decreasing over the years, forest depletion and deforestation is increasing as a majority of the people depend on it.”

The price of firewood is not used as indicator for firewood scarcity since very little firewood used is bought from the market.11

Table 3: Energy Sources used by household

The main source of firewood is government forests controlled by the Ministry of Forest and Soil Conservation which allocates forest areas to the Timber Corporation of Nepal (TCN). Since supply from TCN is insufficient, unofficial firewood extraction for self-consumption and trade remain substantial, also in government forests.

The various energy sources used by households in the baseline scenario are predominantly non-renewable. The table below provides an overview of the energy use for cooking in the baseline scenario.

12

SN Districts

Quantity used

Firewood (Kg)

Crop residue

(Kg)

Jhirka (twigs) (Kg)

Dung (Kg)

Coal/ charcoal

(Kg)

Kerosene (ml)

Other fuel (Kg)

Total Biomass

Fuel (Kg)

1. Baglung 17.10 0.00 10.60 0.00 0.00 0.00 0.00 27.70 2. Bardiya 7.19 1.38 0.62 1.65 0.04 6.54 0.00 10.88 3. Chitwan 5.85 0.00 1.93 0.00 0.00 0.00 0.00 7.77 4. Darchula 11.17 0.00 0.00 0.00 0.00 33.00 0.00 11.17 5. Jhapa 6.90 0.38 3.13 0.03 0.02 42.50 0.03 10.47 6. Kalikot 33.60 1.47 5.00 1.42 0.00 0.00 0.00 41.49 7. Kanchanpur 1.90 0.00 9.11 0.00 0.00 2.00 0.00 11.01 10 His Majesty's Government of Nepal Ministry of Population and Environment, NEPAL National Action Programme on Land Degradation and Desertification in the context of United Nations Convention to Combat Desertification (UNCCD), Kathmandu, April 2004 11 WECS (2010), Energy Sector Synopsis Report 2010, Water and Energy Commission Secretariat, Kathmandu, Nepal , Page 74 12 Baseline Study 2010/11

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 19

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

SN Districts

Quantity used

Firewood (Kg)

Crop residue

(Kg)

Jhirka (twigs) (Kg)

Dung (Kg)

Coal/ charcoal

(Kg)

Kerosene (ml)

Other fuel (Kg)

Total Biomass

Fuel (Kg)

8. Kapilvastu 7.38 0.00 0.84 2.30 0.00 4.69 0.00 10.52 9. Salyan 15.00 0.00 0.00 0.00 0.00 0.00 0.00 15.00 10. Solukhumbu 31.44 0.00 0.00 0.00 0.00 0.00 0.00 31.44

E.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the SSC-CPA being included as registered PoA (assessment and demonstration of additionality of SSC-CPA): >>

E.5.1. Assessment and demonstration of additionality for a typical SSC-CPA: >> The additionality of the CPA is demonstrated by following the criteria outlined in “Guidelines for demonstrating additionality of microscale project activities” (version 02), Annex 25, EB60. The paragraph 3 of this guideline states that the

3. Energy efficiency project activities that aim to achieve energy savings at a scale of no more than 20 Gigawatt hours per year are additional if any one of the conditions below is satisfied:

(a) The geographic location of the project activity is in LDC/SID or special underdeveloped zone of the host country identified by the Government before 28 May 2010;

(b) The project activity is an energy efficiency activity with both conditions (i) and (ii) satisfied;

(i) Each of the independent subsystems/measures in the project activity achieves an estimated annual energy savings equal to or smaller than 600 megawatt hours; and

(ii) End users of the subsystems or measures are households/communities/SMEs.

As mentioned earlier in section E.2 of the PoA DD, CPAs under this PoA will result in an annual energy savings of below 60GWhth (20GWh) and will be implemented in Nepal, a Least Developed Country (LDC)13

E.5.2. Key criteria and data for assessing additionality of a SSC-CPA:

of Asia. The project is additional and there is no need for further assessment and demonstration of additionality.

The explanation for each of the condition listed in the Guidelines for demonstrating additionality of microscale project activities” (version 02) discussed below in section E.5.2.

>> The key criteria for assessing the additionality of a SSC-CPA are discussed in the table below:

Criteria/ Condition Explanation The geographic location of the project activity is in LDC/SID or special underdeveloped zone of the host country identified by the

The geographic location of the project activity is in Nepal. The improved cooking stoves included in the project activity will be disseminated in different districts of Nepal. Nepal is a Least Developed Country

13 http://www.unohrlls.org/en/ldc/related/62/

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 20

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Government before 28 May 2010 (LDC) of Asia.

Each of the independent subsystems/measures in the project activity achieves an estimated annual energy savings equal to or smaller than 600 megawatt hours; and

The annual energy savings per independent subsystems/measures (Improved Cooking Stove) is 0.0088139 GWhth (=8.8139MWhth

End users of the subsystems or measures are households/communities/SMEs.

= 2.9380MWh). This values is smaller than the limit of 600MWh.

The users of the ICS are the individual households as the ICS will be disseminated in different districts of Nepal.

E.6. Estimation of Emission reductions of a CPA:

E.6.1. Explanation of methodological choices, provided in the approved baseline and monitoring methodology applied, selected for a typical SSC-CPA:

>> The key components of AMS II.G are the calculation of the emission reductions, differentiation between non renewable biomass and demonstrable renewable biomass and the occurrence of leakage.

Emission reduction calculation

Paragraph 4 of AMS II.G/v03 requires that the project participants assume that in the absence of the project activity, the baseline scenario would be the use of fossil fuels for meeting similar thermal energy needs. The actual baseline scenario is the use of NRB. Since NRB has higher carbon intensity than the fossil fuels proposed in AMS II.G, this assumption reduces the emission reductions significantly, making the outcome more conservative.

According to paragraph 5 of methodology AMS II.G/v03, emission reductions would be calculated as:

fossilfuelprojected_biomassNRB,yy,savingsy EFNCVfBER ***= (1)

Where: ER : y Emission reductions during the year y in tCO2B

e : y,savings Quantity of woody biomass that is saved in tonnes

f : NRB,y Fraction of woody biomass saved by the project activity in year y that can be established as non-renewable biomass

NCV : biomass Net calorific value of the non-renewable woody biomass that is substituted (IPCC default for wood fuel, 0.015 TJ/tonne)

EF : projected_fossilfuel Emission factor for the substitution of non-renewable woody biomass by similar consumers. Use a value of 81.6 tCO2/TJ14

As stipulated in the paragraph 6 of AMS II.G/v03, By,savings

14 This value represents the emission factor of the substitution fuels likely to be used by similar users, on a weighted

average basis. It is assumed that the mix of present and future fuels used would consist of a solid fossil fuel (lowest in the ladder of fuel choices), a liquid fossil fuel (represents a progression over solid fuel in the ladder of fuel use choices) and a gaseous fuel (represents a progression over liquid fuel in the ladder of fuel use choices). Thus a 50% weight is assigned to coal as the alternative solid fossil fuel (96 tCO2/TJ) and a 25% weight is assigned to both liquid and gaseous fuels (71.5 tCO2/TJ for Kerosene and 63.0 tCO2/TJ for Liquefied Petroleum Gas (LPG).

can be determined using one of the following options:

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 21

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Option 1:

newyoldy,savings BBB ,−= (2)

Where: B : old Quantity of woody biomass used in the absence of the project activity in tonnes B : y,new Annual quantity of woody biomass used during the project activity in tonnes,

measured as per the Kitchen Performance Test (KPT) protocol. The KPT should be carried out in accordance with national standards (if available) or international standards or guidelines (e.g. the KPT procedures specified by the Partnership for Clean Indoor Air (PCIA) <http://www.pciaonline.org/node/1049)>

Option 2:

)

new

oldoldy,savings η

η(1-BB ⋅= (3)

Where: B : old Quantity of woody biomass used in the absence of the project activity in tonnes η : old 1. Efficiency of the system being replaced, measured using representative

sampling methods or based on referenced literature values (fraction), use weighted average values if more than one type of system is being replaced;

2. A default value of 0.10 may be optionally used if the replaced system is a three stone fire, or a conventional system with no improved combustion air supply or flue gas ventilation system, i.e. without a grate or a chimney; for other types of systems a default value of 0.2 may be optionally used

η : new Efficiency of the system being deployed as part of the project activity (fraction), as determined using the Water Boiling Test (WBT) protocol. Use weighted average values if more than one type of system is being introduced by the project activity

Option 3:

)*old

newoldy,savings SC

SC(1-BB = (4)

Where: SC : new Specific fuel consumption or fuel consumption rate15

SC

of the baseline system/s i.e. fuel consumption per quantity of item/s processed (e.g. food cooked) or fuel consumption per hour, respectively. Use weighted average values if more than one type of system is being replaced

: old Specific fuel consumption or the fuel consumption rate of the system/s deployed as part of the project i.e. fuel consumption per quantity of item/s processed (e.g. food cooked) or fuel consumption per hour respectively. Use weighted average values if more than one type of system is being introduced by the project activity

15 Specific fuel Consumption or fuel consumption rate are to be determined using the Controlled Cooking Test

(CCT) protocol carried out in accordance with national standards (if available) or international standards or guidelines (e.g. the CCT procedures specified by the Partnership for Clean Indoor Air (PCIA) <http://www.pciaonline.org/node/1050>).

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 22

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

The methodology requires choosing one of the three options mentioned above for calculating the “Quantity of woody biomass that is saved (By,savings)”. Option 2 has been selected.

As stipulated in the paragraph 7 of AMS II.G/v03, Bold

1. Calculated as the product of the number of systems multiplied by the estimated average annual consumption of woody biomass per appliance (tonnes/year). This can be derived from historical data or a survey of local usage,

can be determined using one of the following options:

OR

2. Calculated from the thermal energy generated in the project activity as:

oldbiomass

p,yold ηNCV

HGB

*= (5)

Where: HG : p,y Amount of thermal energy generated by the project technology in yeary (TJ) The methodology requires choosing one of the two options mentioned above for calculating the “Quantity of woody biomass used in the absence of the project activity (Bold)”. Since, it is difficult and not cost effective to monitor the thermal energy generated in the project activity, Option a) has been selected, as it is feasible to determine Bold based on number of appliances multiplied by the estimate of average annual consumption of woody biomass per appliance substituted (tonnes/year), which can be derived from historical data or estimated using survey methods. As the project involves improved cooking stoves, which are owned and operated by households, the term individual appliance is meant to represent individual improved cooking stove.

Differentiation between NRB and renewable biomass and determining fNRB,y

The methodology requires the Project Participants to determine the shares of renewable and non-renewable woody biomass in Bold (the quantity of woody biomass used in the absence of the project activity) the total biomass consumption using nationally approved methods (e.g. surveys or government data if available) and then determine fNRB,y

Demonstrably renewable woody biomass

as described below. The following principles shall be taken into account:

16

Woody

(DRB) 17

1. The woody biomass is originating from land areas that are forests

biomass is “renewable” if one of the following two conditions is satisfied: 18

(a) The land area remains a forest; and

where:

16 This definition uses elements of annex 18, EB 23. 17 In cases of charcoal produced from woody biomass, the demonstration of renewability shall be done for the areas

where the woody biomass is sourced. 18 The forest definitions as established by the country in accordance with the decisions 11/CP.7 and 19/CP.9 should

apply.

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 23

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

(b) Sustainable management practices are undertaken on these land areas to ensure, in particular, that the level of carbon stocks on these land areas does not systematically decrease over time (carbon stocks may temporarily decrease due to harvesting); and

(c) Any national or regional forestry and nature conservation regulations are complied with.

2. The biomass is woody biomass and originates from non-forest areas (e.g., croplands, grasslands) where:

(a) The land area remains as non-forest or is reverted to forest; and

(b) Sustainable management practices are undertaken on these land areas to ensure in particular that the level of carbon stocks on these land areas does not systematically decrease over time (carbon stocks may temporarily decrease due to harvesting); and

(c) Any national or regional forestry, agriculture and nature conservation regulations are complied with.

The conditions for renewability of biomass in forests and non-forest areas outlined above have been considered in the quantification of Demonstrably Renewable Biomass (DRB). The Forest resource Assessment Report of FAO for Nepal quantifies the sustainable yield of woody biomass used as fire wood to be 5.4 million tonnes/year in the year 199519, which according to the conditions noted above, qualifies as DRB. The forest cover in Nepal is reported to be declining at a rate of 1.7 % in the same FAO report. Considering this the DRB in Nepal for the year 2010 is estimated to be 4.10 milllion tonnes/year.

Non-renewable biomass:

Non-renewable woody biomass (NRB) is the quantity of woody biomass used in the absence of the project activity (Bold

• A trend showing an increase in time spent or distance travelled for gathering fuel-wood, by users (or fuel-wood suppliers) or alternatively, a trend showing an increase in the distance the fuel-wood is transported to the project area;

) minus the DRB component, as long as at least two of the following supporting indicators are shown to exist:

• Survey results, national or local statistics, studies, maps or other sources of information, such as remote-sensing data, that show that carbon stocks are depleting in the project area;

• Increasing trends in fuel wood prices indicating a scarcity of fuel-wood;

• Trends in the types of cooking fuel collected by users that indicate a scarcity of woody biomass.

Thus the fraction of woody biomass saved by the project activity in year y that can be established as non-renewable is:

DRBNRBNRBf yNRB +

=, (6)

With a projected population of 28.58 Million in 2010/201120, and a per capita woody biomass consumption of 640 kg/year21

19 Table 44, Forest Resource Assessment 2000, Forest Resource of Nepal, Country Report, by FAO 20 http://www.cbs.gov.np/population_projection_nepal.php

, the total consumption of woody biomass in Nepal is estimated to be 18.29

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 24

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Mil. tonnes/Year. Given that the DRB for the corresponding year is estimated to be 4.17 Million tonnes/year, NRB in Nepal works out to 14.12 Mil. tonnes/year. Thus the value of fNRB

1. Leakage related to the non-renewable woody biomass saved by the project activity shall be assessed based on ex post surveys of users and the areas from which this woody biomass is sourced (using 90/30 precision for a selection of samples). The following potential source of leakage shall be considered:

is derived to be 77.17%.

The continued displacement of NRB will be surveyed by the Annual User Surveys, as outlined in section E.7.1.

Leakage

As per the paragraph 13 and 14 of the methodology AMS II.G/v03, the following leakages are to be considered:

(a) The use/diversion of non-renewable woody biomass saved under the project activity by non-project households/users that previously used renewable energy sources. If this leakage assessment quantifies an increase in the use of non-renewable woody biomass used by the non-project households/users that is attributable to the project activity then Bold is adjusted to account for the quantified leakage. Alternatively, Bold

In order to avoid expensive monitoring, the project participants have opted to use the default factor of 0.95 to account for any potential leakage, as prescribed by the methodology.

is multiplied by a net to gross adjustment factor of 0.95 to account for leakages, in which case surveys are not required.

2. If equipment currently being utilised is transferred from outside the boundary to the project activity, leakage is to be considered.

The project does not involve any transfer of equipments from outside the project boundary to the project boundary. Thus the above provision on leakage is not applicable.

E.6.2. Equations, including fixed parametric values, to be used for calculation of emission reductions of a SSC-CPA: >> According to paragraph 5 of methodology AMS II.G/v03, emission reductions shall be calculated as

fossilfuelprojected_biomassNRB,yy,savingsy EFNCVfBER ***= Where, Description Parameter Unit Type

Emission reductions during the year y ER tCOy 2 Calculated e

Quantity of woody biomass that is saved B tonnes y,savings Calculated

Fraction of woody biomass saved by the project activity in year y that can be established as non-renewable biomass

f % NRB,y Fixed ex-ante

Net calorific value of the non-renewable woody biomass that is substituted (0.015 TJ/tonne)

NCV TJ/tonne biomass Fixed ex-ante

21 Table 41, Forest Resource Assessment 2000, Forest Resource of Nepal, Country Report, by FAO

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 25

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Description Parameter Unit Type

Emission factor for the substitution of non-renewable woody biomass by similar consumers. (81.6 tCO2/TJ)22

EF

tCOprojected_fossilfuel 2 Fixed ex-ante /TJ

The quantity of woody biomass that is saved (By,savings

)new

oldoldy,savings η

η(1-BB ⋅=

) shall be calculated using option 2 of paragraph 6 of methodology AMS II.G/v03 as follows:

Where: Description Parameter Unit Type

Quantity of woody biomass that is saved B tonnes y,savings Calculated

Quantity of woody biomass used in the absence of the project activity

B tonnes old Calculated

Efficiency of the system being replaced η % old Fixed ex-ante

Efficiency of the system being deployed as part of the project activity

η % new Monitored

The quantity of woody biomass used in the absence of the project activity (Bold) shall be determined using the option b of paragraph 7 of methodology AMS II.G/v03. The project proponent has carried out the baseline survey (through the independent third party) to determine the quantity of biomass used in the absence of the project activity.

In order to account for leakage, Bold

E.6.3. Data and parameters that are to be reported in CDM-SSC-CPA-DD form:

is multiplied by a net to gross adjustment factor of 0.95, in which case surveys are not required. The project does not involve any transfer of equipments from outside the project boundary to the project boundary. Thus this provision on leakage is not applicable.

>> Data / Parameter: BData unit:

old tonnes/household/year

Description: Quantity of woody biomass used in the absence of the project activity Source of data used: Baseline Survey Value applied: 4.23 Justification of the choice of data or description of

The baseline survey estimated the average biomass usage per annum across relevant clusters. The survey was conducted in two ways perception survey and experimental survey. In the perception survey, the end users were interviewed

22 This value represents the emission factor of the substitution fuels likely to be used by similar users, on a weighted

average basis. It is assumed that the mix of present and future fuels used would consist of a solid fossil fuel (lowest in the ladder of fuel choices), a liquid fossil fuel (represents a progression over solid fuel in the ladder of fuel use choices) and a gaseous fuel (represents a progression over liquid fuel in the ladder of fuel use choices). Thus a 50% weight is assigned to coal as the alternative solid fossil fuel (96 tCO2/TJ) and a 25% weight is assigned to both liquid and gaseous fuels (71.5 tCO2/TJ for Kerosene and 63.0 tCO2/TJ for Liquefied Petroleum Gas (LPG).

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 26

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

measurement methods and procedures actually applied :

about their usage pattern of the biomass for the household cooking using the traditional cooking stoves. In the experimental the interviewer also measured the actual biomass used in the traditional cooking stove for cooking the meals. The baseline survey was conducted following the General Guidelines For Sampling And Surveys For Small-Scale CDM Project Activities (Version 01); CDM EB50 Annex 30.

Any comment: This parameter shall remain fixed for the monitoring periods. Data / Parameter: ηData unit:

old Percentage

Description: Efficiency of the system being replaced (Traditional Cooking Stoves) Source of data used: Paragraph 5 of AMS II.G/v03 Value applied: 10% Justification of the choice of data or description of measurement methods and procedures actually applied :

The default value of 0.10 is used as the replaced system is a three stone fire, or a conventional system with no improved combustion air supply or flue gas ventilation system, i.e. without a grate or a chimney.

Any comment: This parameter shall remain fixed for the monitoring periods. Data / Parameter: fData unit:

NRB,y Percentage

Description: Fraction of woody biomass saved by the project activity in year y that can be established as non-renewable biomass

Source of data used: This parameter is estimated using parameters taken from published reports. These include sustainable yield of woody biomass in Nepal, per-capita consumption of fire wood in Nepal and the rate of decline of forests in Nepal as reported in the Forest Resource Assessment Report prepared by the Food and Agricultural Organization (FAO).

Value applied: 77.17% Justification of the choice of data or description of measurement methods and procedures actually applied :

The Forest Resource Assessment Report of FAO for Nepal quantifies the sustainable yield of woody biomass used as fire wood to be 5.4 Million tonnes/year in the year 199523

With a projected population of 28.58 Million in 2010/2011

, which according to the conditions noted above, qualifies as DRB. The forest cover in Nepal is reported to be declining at a rate of 1.7 % in the same FAO report. Taking into account the rate of decline of forest, the DRB in Nepal for the year 2010 is estimated to be 4.10 Milllion tonnes/year.

24, and a per capita woody biomass consumption of 640 kg/year25, the total consumption of woody biomass in Nepal is estimated to be 18.29 Million tonnes/Year. Given that the DRB for the corresponding year is estimated to be 4.17 Million tonnes/year, NRB in Nepal is estimated at 14.12 Million tonnes/year. Thus the value of fNRB

23 Table 44, Forest Resource Assessment 2000, Forest Resource of Nepal, Country Report, by FAO 24 http://www.cbs.gov.np/population_projection_nepal.php 25 Table 41, Forest Resource Assessment 2000, Forest Resource of Nepal, Country Report, by FAO

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 27

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

is 77.17%. The fraction has been calculated from the data available at country level and is therefore applicable for all the regions – terai, hills and mountains.

Any comment: This parameter is estimated based on data taken from published reports and shall remain fixed.

Data / Parameter: NCVData unit:

biomass TJ/tonne

Description: Net calorific value of the non-renewable woody biomass that is substituted Source of data used: Paragraph 5 of AMS II.G/v03 Value applied: 0.015 Justification of the choice of data or description of measurement methods and procedures actually applied :

As per the methodology AMS II.G/v03

Any comment: This parameter shall remain fixed for the monitoring periods. Data / Parameter: EFData unit:

projected fossilfuel tCO2

Description: /TJ

Emission factor for the substitution of non-renewable woody biomass by similar consumers

Source of data used: Paragraph 5 of AMS II.G/v03 Value applied: 81.6 Justification of the choice of data or description of measurement methods and procedures actually applied :

This value represents the emission factor of the substitution fuels likely to be used by similar users, on a weighted average basis. It is assumed that the mix of present and future fuels used would consist of a solid fossil fuel (lowest in the ladder of fuel choices), a liquid fossil fuel (represents a progression over solid fuel in the ladder of fuel use choices) and a gaseous fuel (represents a progression over liquid fuel in the ladder of fuel use choices). Thus a 50% weight is assigned to coal as the alternative solid fossil fuel (96 tCO2/TJ) and a 25% weight is assigned to both liquid and gaseous fuels (71.5 tCO2/TJ for Kerosene and 63.0 tCO2

Any comment: /TJ for Liquefied Petroleum Gas (LPG).

This parameter shall remain fixed for the monitoring periods. Data / Parameter: Ly Data unit: Fraction Description: Leakage adjustment factor Source of data used: Paragraph 13a. of AMS II.G/v03 Value applied: 0.95 Justification of the choice of data or description of measurement methods and procedures actually applied :

As per the methodology AMS II.G/v03, Bold

Any comment:

can be multiplied by a net to gross adjustment factor of 0.95 to account for leakages, in which case surveys are not required.

This parameter shall remain fixed for the monitoring periods.

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 28

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

E.7. Application of the monitoring methodology and description of the monitoring plan:

E.7.1. Data and parameters to be monitored by each SSC-CPA: >> The table below provides the aspects to be monitored according to methodology AMS II.G and its applicability to the ICS SSC-CPA.

Aspects to be monitored according to methodology

Applicability to the Project Parameter to be Monitored

(YES/NO/Not Applicable)

Monitoring shall consist of checking the efficiency of all appliances or a representative sample thereof, at least once every two years (biennial) to ensure that they are still operating at the specified efficiency (ηnew

The emission reduction is linked with the efficiency of the appliances (ICS) so this needs to be monitored.

) or replaced by an equivalent in service appliance. Where replacements are made, monitoring shall also ensure that the efficiency of the new appliances is similar to the appliances being replaced.

Yes (Through Annual Survey)

Monitoring shall also consist of checking of all appliances or a representative sample thereof, at least once every two years (biennial) to determine if they are still operating or are replaced by an equivalent in service appliance.

Emission reductions is directly proportional to the number of appliances (ICS in case of the project) still performing. So this needs to be monitored.

Yes (Through Annual Survey)

If the quantity of fuel saved is determined using the Kitchen Performance Test (i.e. paragraph 6, Option 1), monitoring shall ensure that fuel consumption during the period of the project activity is monitored annually.

The quantity of fuel saved is not determined using the Kitchen Performance Test (i.e. Paragraph 6, Option 1) of AMS II.G/v03. It is determined using option 2.

Not Applicable

If option (b) in paragraph 7 is chosen for determining Bold

The option (b) in paragraph 7 of AMS II.G/v03 is not chosen for determining B

, monitoring shall include the amount of thermal energy generated by the project technology t in year y

old

Not Applicable

. It is determined using the option (a) in paragraph 7.

In order to assess the leakage, monitoring shall include data on the amount of woody biomass saved under the project activity that is used by non-project households/users (who previously used renewable energy sources). Other data on non-renewable woody biomass use required for leakage assessment shall also be collected.

The methodology allows the use of a default factor of 0.95 to account for leakage. So this will not be monitored in the project.

No (Instead a default factor of 0.95 shall be used)

Monitoring shall ensure that:

a. Either the replaced low efficiency

This needs to be monitored to determine the percentage of

Yes (Through Annual Survey)

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 29

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Aspects to be monitored according to methodology

Applicability to the Project Parameter to be Monitored

(YES/NO/Not Applicable)

appliances are disposed of and not used within the boundary or within the region; or

b. If baseline stoves continue to be used, monitoring shall ensure that the fuel-wood consumption of those stoves is excluded from Bold

plants that are operational.

.

The various parameters that are to be monitored under the project activity are listed below:

1. Data / Parameter: NData unit:

y,i Number

Description: Number of Improved Cook Stove that are disseminated Source of data to be used:

Installation report

Value of data applied for the purpose of calculating expected emission reductions in section B.5

To be determined in specific SSC-CPA. This value has been considered as 5,645 for ICS SSC-CPA 1.

Description of measurement methods and procedures to be applied:

The information on the number for respective type of the stoves disseminated at the user household will be recorded by the promoter/ stove master/ installer in their record during installation/ sale of stoves. Each stove installed/sold is recorded in a stove user data form with serial no, user’s name, address, date stove installed/sold including the name of the stove installer or person/ institution selling the stove and the amount of direct subsidy.

QA/QC procedures to be applied:

Mud Improved Cooking Stoves: The numbers of mud ICS disseminated are reported by promoters/ stove masters to Local/District partners. It is then entered into the database by Regional Renewable Energy Service Centers (RRESCs) and sent to Biomass Energy Support Program (BESP) of AEPC every month in the soft copy. The total stove installation report will be submitted in the hard copy in each quarter of the year The central office team will generate random sample for monitoring the 1% of installed stoves by RRECSs. Sampled ICS will be monitored by Local Partners and field technical coordinator of RRESC.

In case of metallic ICS, the quality of the stove is checked at the manufacturing companies’ premises in a lot during spot monitoring before delivery of the stoves to the users. The installer fills up subsidy application form during installation of the stove and database is entered at RRESC which is then forwarded to AEPC/ESAP database for further verification and release of subsidy amount. Each year 1% sample of MICS installed in one year period are randomly generated through database software and monitored through third party consultant. If any deviations are found and reported by the third party

Metallic Improved Cooking Stoves (MICS):

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 30

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

consultant, the verification monitoring will be conducted by AEPC for necessary action and correction measures.

Any comment: The monitored value of this parameter will be used in the determination of the ex-post emission reduction

2. Data / Parameter: ηData unit:

new Percentage

Description: Efficiency of the ICS that are disseminated as part of the project Source of data to be used:

Water Boiling Test

Value of data applied for the purpose of calculating expected emission reductions in section B.5

To be determined in specific SSC-CPA. This value has been considered as 20% for ICS SSC-CPA 1.

Description of measurement methods and procedures to be applied:

The two different types of ICS are disseminated in the High Hills and Terai region. Separate Water Boiling Test will be carried out for these ICS using the standard National Stove Performance testing protocol developed by AEPC/ESAP which is based on testing protocol developed by University of California, Berkeley and The Shell Foundation. The efficiency test will be carried out for different age of ICS (one year, two year or three year).The value obtained from the test will be used to calculate the emission reductions of the systems for that year of operation.

QA/QC procedures to be applied:

The test will be carried out once a year by national experts as an integral part of the annual user survey to be conducted by the independent third party every year. The results from the test (ex-post monitored value) will be compared with the values adopted for baseline emission calculations and the conservative value shall be considered for ex post emission reduction calculation.

Any comment: The monitored value of this parameter will be used in the determination of the ex-post emission reduction.

3. Data / Parameter: PData unit:

y Percentage

Description: Percentage of ICS implemented that is operational Source of data to be used:

Annual User Surveys to be carried out once in a year

Value of data applied for the purpose of calculating expected emission reductions in section B.5

To be determined in specific SSC-CPA. This value has been considered as 100% for ICS SSC-CPA 1.

Description of measurement methods and procedures to be applied:

The operation of the ICS will be checked annually during the annual user survey. From the total population of ICS included in the project activity, statistically representative samples will be drawn for the purpose of carrying out the survey. The percentage of ICS found to be operational during the sample survey shall be used as the percentage value for Py

QA/QC procedures to

. (Refer to Annex-4 for details on sampling) The Annual User Survey to determine the percentage of ICS implemented that

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 31

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

be applied: is operational will be carried out following the General Guidelines For Sampling And Surveys For Small-Scale CDM Project Activities (Version 01); CDM EB50 Annex 30.

Any comment: The monitored value of this parameter will be used in the determination of the ex-post emission reduction.

E.7.2. Description of the monitoring plan for a SSC-CPA:

>> The approved methodology AMS II.G/v03 requires monitoring of the following parameters:

1. Number of Improved Cook Stove that are disseminated in each CPA

2. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating at the specified efficiency (ηnew

3. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating or are replaced by an equivalent in service appliance.

) or replaced by an equivalent in service appliance. Where replacements are made, monitoring shall also ensure that the efficiency of the new appliances is similar to the appliances being replaced

4. The replaced low efficiency appliances are disposed of and not used within the boundary or within the region;

The information on the number for respective type of the improved cooking stoves disseminated at the user household will be recorded by the promoter in their database during installation/ sale of stoves. Each stove installed/sold is recorded in a stove user data form with serial no, user’s name, address, date stove installed/sold including the name of the stove installer or person/ institution selling the stove and the amount of direct subsidy.

The performance of the ICS (annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating), efficiency of the ICS and non use of traditional cooking stoves will be based on the Annual User Survey. The survey will be conducted following statistically sound sampling procedure. The Annual User Survey will be conducted following the “General Guidelines for Sampling and Surveys for Small-Scale CDM Project Activities” (EB50, Annex 30). As part of the survey, statistically valid sample of ICS will be surveyed and in order to achieve 90% confidence interval and a 10% margin of error requirement for the sampled parameters. The sample will be taken from different geographical region (Terai, High Hills), different development region (eastern, central, western, mid-western and far western) and different types of ICS proportionate to the ICS in the CPA. In order to have an unbiased and independent assessment, the survey will be carried out through an independent third party to check the operation/functioning of the ICS installed as part of the project activity.

Quality Control and Quality Assurance Procedure

The QA/QC includes the following elements:

• Annual User Survey: The Annual User Survey uses a random sample of ICS users to measure a wide-range of health, economic, social and environmental indicators. The information obtained from the user survey is used to enable continuous improvement of the program and the technology applied.

Mud Improved Cooking Stoves:

The numbers of mud ICS disseminated are reported by promoters/ stove masters to Local/District partners. It is then entered into the database by Regional Renewable Energy Service Centers (RRESCs)

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 32

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

and sent to Biomass Energy Support Program (BESP) of AEPC every month in the soft copy. The total stove installation report will be submitted in the hard copy in each quarter of the year. The central office team will generate random sample for monitoring the 1% of installed stoves by RRECSs. Sampled ICS will be monitored by Local Partners and field technical coordinator of RRESC.

Metallic Improved Cooking Stoves:

In case of metallic ICS, the quality of the stove is checked at the manufacturing premises in a lot during spot monitoring before delivery of the stoves to the users. The installer fills up subsidy application form during installation of the stove and database is entered at RRESC which is then forwarded to AEPC/ESAP database for further verification and release of subsidy amount. Each year 1% sample of the one year old system is randomly generated through database software and monitored through third party consultant. If any deviations are found and reported by the third party consultant, the verification monitoring will be conducted by AEPC for necessary action and correction measures.

Internal Audit Procedure

Mud Improved Cooking Stoves:

In case of mud ICS the internal auditing is done through Local/ District Partners and RRESCs. The promoter/ stove masters submit the data along with the user information sheet that includes user’s name, and address, date stove installed/sold including the name of the stove installer or person / institution selling the stove. This user information sheet is submitted to local/ district partners by the promoters/ stove masters. The local/ district partners cross checks the installation details in random basis. The RRESCs also cross checks the installation details in random basis.

Metallic Improved Cooking Stoves:

In case of Metallic ICS the internal auditing is done in AEPC by cross checking copy of subsidy application form submitted by manufacturing cum installing companies and the soft copy details submitted by RRESCs to AEPC/ESAP. The soft copy detail is generated by RRESC through a copy of subsidy application form submitted by manufacturing cum installing companies to RRESCs.

Data Archiving Procedure

The data archiving procedures followed by the BESP after the completion of the construction of the ICS is presented below:

Mud Improved Cooking Stoves:

The numbers of mud ICS disseminated are reported by promoters/ stove masters to Local/District partners. It is then entered into the database by Regional Renewable Energy Service Centers (RRESCs) and sent to Biomass Energy Support Program (BESP) of AEPC/ESAP every month in the soft copy. The total stove installation report will be submitted in the hard copy in each quarter of the year. Metallic Improved Cooking Stoves:

The installer/ manufacturing company representative fills up subsidy application form during installation of the stove and database is entered at RRESC which is then forwarded to BESP of AEPC/ESAP database for further verification and release of subsidy amount.

Organization Structure

The chart below presents the role and responsibilities of various organisations involved in the ICS PoA:

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 33

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Figure 3: Organisational structure for Mud ICS Figure 4: Organisational structure for Metallic ICS

Alternative Energy Promotion Centre (AEPC)

o AEPC is responsible for overall coordination and the execution of the BESP. The AEPC provides feedbacks to GoN for policy formulation and executes the policies.

o AEPC is responsible for overall monitoring and evaluation together with its development partners. This also includes endorsing new modalities e.g. the modality to be developed to target the poor.

o AEPC is responsible for carrying out Annual ICS Users’ Survey that is also in line with the requirements of the CDM. The survey would report the performance of the stoves as well as perceptions of ICS users.

o AEPC administrates subsidy for metallic ICS as per Nepal Government’s Renewable (Rural) Energy Subsidy Policy and its Delivery Mechanism.

o AEPC is responsible for coordination with national level institutions/agencies relevant for promotion of ICS technology.

o AEPC advocates and promotes ICS through BESP/ESAP at macro level.

External Development Partners (EDPs):

o EDPs support AEPC in dissemination of mud and metallic ICS through BESP/ESAP and include Danish International Development Agency (DANIDA), Government of Norway, Department for International Development of United Kingdom (DFID) and German Development Bank (KfW).

o EDPs provide financial support for technical supports to disseminate ICS and for subsidy to households installing metallic ICS under the ESAP Phase-II.

o EDPs are also responsible for overall programme evaluation together with the AEPC and other development partners.

Energy Sector Assistance Program (ESAP) - Biomass Energy Support Program (BESP)

o BESP/ESAP provides technical supports through its network of Regional Renewable Energy Service Centres (RRESCs) to organizations of the ICS sector. The technical supports include awareness building, promotion, capacity building, monitoring, advocacy/lobbying, gender and social inclusion, etc.

o Based on approved plans and budgets, BESP/ESAP supports AEPC to administer the fund for technical supports as per developed guidelines and procedures.

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 34

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

o BESP/ESAP develops technical designs of mud and metallic ICS and recommends AEPC to include them in the programme.

o BESP/ESAP supports AEPC in administration of subsidy for metallic ICS as per Nepal Government’s Renewable (Rural) Energy Subsidy Policy and its Delivery Mechanism. This includes quality control and regular monitoring of metallic ICS, company qualification, performance evaluation as well as for provision of after-sales services and warrantee.

o BESP/ESAP facilitates, promotes, monitors and backstops the development of ICS sector

Regional Renewable Energy Service Centers (RRESCs)

o RRESCs, by themselves or through District Renewable Energy Service Centres (DRESCs), are responsible for facilitating the implementation of programme.

o RRESCs/DRESCs are responsible for imparting technical supports such as awareness building, promotion, capacity building, local level advocacy/lobbying, gender and social inclusion etc of the programme.

o RRESCs/DRESCs responsible for skill transfer to BGs/SMs, monitoring/follow up to ensure skill transfer to BGs/SMs, orientation/demonstration, demand creation & massive dissemination of quality ICS.

o RRESCs/DRESCs responsible for regular monitoring as well as efficiency testing of ICS for internal quality control.

o RRESCs responsible for data entry and regular reporting to BESP/ESAP

District Development Committees (DDCs)

o DDCs, through their District Energy and Environment Units/Sections (DEEU/DEES), are responsible for coordination and information sharing on ICS

o DDCs help in promotion of metallic ICS by awareness raising and contributing a part of fund to be borne by the users (non-local material cost for mud-brick ICS and transportation cost for metallic ICS)

o DDCs, together with the AEPC and other development partners, are also responsible in monitoring of mud-brick and metallic ICS.

Local Development Partners (District/Local Line Agencies) /Micro Finance Institutions (MFIs)

o Where applicable, local development partners (District/local line agencies) such as Federation of Community Forest User Groups (FECOFUN), Red Cross etc. and other Community Based Organizations (CBOs) and Non-government Organizations (NGOs) help in promotion of metallic ICS by awareness raising and contributing a part of fund to be borne by the users as transport subsidy.

o When necessary, Micro Finance Institutions (MFIs) lend credit to metallic ICS users.

Business Groups (BGs)/Stove Masters (SMs)

o SMs are the permanent residents of the locality trained by program in mud-brick ICS construction, whereas the BGs are the informal groups of SMs formed to keep themselves active and focused in the ICS business through self-motivation.

o SMs sell their skill by constructing mud-brick ICS as per the need of prospective user household and charge a fee (in cash or kind, akin with wages of skilled work locally). SMs are responsible to train the users on operation, maintenance and repair of ICS.

Metallic Stove Manufacturers (MSMs)

o MSMs are responsible for manufacturing, supplying and installing quality metallic ICS to eligible users as per the designs and specifications provided by AEPC.

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 35

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

o MSMs are responsible for training metallic ICS users on proper operation and maintenance of the system.

o MSMs are responsible to handover the Users’ Manual and any other information materials provided from BESP/ESAP and train the users on operation and maintenance of the plants.

o MSMs are responsible to complete documentation required for processing of subsidy and for release of the after-sales service guarantee money and submit them to AEPC in a timely manner.

o MSMs are responsible to cooperate and accompany AEPC staff, or any other personnel as assigned and communicated by AEPC, in the field for quality control and other verification purposes.

o MSMs are responsible to visit metallic ICS user households and deliver the promised after-sales service and other services fully respecting the promised guarantee.

o MSMs are responsible for promotion, awareness and other activities that help to promote the technology by linking it with other rural development agencies at the local level.

o MSMs coordinate with DDCs/VDCs, CBOs/NGOs and local development partners to mobilize support for transportation of metallic ICS to the user households in the remote areas.

o MSMs coordinate with banks, MFIs and other CBOs/NGOs to ease credit flow to beneficiaries.

Users

The users are the ones who actually uses the mud improved cooking stove or metallic improved cooking stoves. The users o Request for the installation of the ICS as per their need. o Payment of installation fee to promoter o Regular maintenance of the ICS

E.8 Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies) >> Mr. Nashib Kafle Program Officer – Carbon Mitigation Climate and Carbon Unit Alternative Energy Promotion Center Khumaltar, Lalitpur, Nepal Phone: +977-9801017076 Email: [email protected] URL: www.aepc.gov.np

Mr. Raju Laudari Manager – Climate and Carbon Unit Alternative Energy Promotion Center Khumaltar, Lalitpur, Nepal Phone: +977-9851125430 Email: [email protected] URL: www.aepc.gov.np

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 36

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

CONTACT INFORMATION ON COORDINATING/MANAGING ENTITY and PARTICIPANTS IN THE PROGRAMME of ACTIVITIES

Annex 1

Organization: Alternative Energy Promotion Center Street/P.O.Box: Khumaltar, Lalitpur, P.O. Box – 14237 (Kathmandu) Building: City: Kathmandu State/Region: Bagmati Postfix/ZIP: NA Country: Nepal Telephone: +977-1-5539237 / 5539390 / 5539391 FAX: +977-1-5542397 E-Mail: [email protected] URL: www.aepc.gov.np Represented by: Title: Executive Director Salutation: Dr. Last Name: Narayan Middle Name: Prasad First Name: Chaulagain Department: Mobile: +977-9851111006 Direct FAX: +977-1-5542397 Direct tel: +977-1-5539237 / Personal E-Mail: [email protected]

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 37

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

INFORMATION REGARDING PUBLIC FUNDING

Annex 2

(Information regarding the public funding has been provided in section A.4.5)

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 38

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

BASELINE INFORMATION

This annex provides some of the important information/data used in the development of the baseline scenario.

Per-capita consumption of Fuel wood in Nepal

Annex 3

Development Region Forest Fuelwood (kg)

Own Tree Fuel wood (kg)

Agriculture Residue (kg)

Total (kg)

Eastern 323 506 46 875 Central 290 194 105 589 Western 379 364 66 809 Mid West 455 93 33 581 Far West 455 93 33 581 Nepal 378 262 68 708 (Source: Table 41, Forest Resource Assessment 2000, Forest Resource of Nepal, Country Report, by FAO)

Calculation of fraction of Non Renewable Biomass (fNRB)

Parameter Value Units Reference Total per-capita consumption in Nepal

708 kg/yr Table Above

Total per-capita Agriculture residue in Nepal

68 kg/yr Table Above

Per-capita consumption of woody biomass in Nepal

640 kg/yr Calculated

Sustainable yield of biomass for the year 1994/95 in Nepal

5.40 Million tonnes/year Table 44, Forest Resource Assessment 2000, Forest Resource of Nepal, Country Report, by FAO

Declining rate of forest cover in Nepal

1.70% Percentage Page 12, Forest Resource Assessment 2000, Forest Resource of Nepal, Country Report, by FAO

Sustainable yield of firewood for the year 2010 (Renewable Biomass)

4.18 Million tonnes/year Calculated

Projected population for the year 2011

28.58 Million Source: http://www.cbs.gov.np/population_projection_nepal.php

Population for the year 2010

28.58 Million Conservative Assumption

Total consumption of woody biomass in Nepal

18.29 Million tonnes/year Calculated

Non Renewable Biomass 14.12 Million tonnes/year Calculated Non Renewable Biomass Fraction (fNRB

77.17% )

Calculated

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 39

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

Sustainable Yield of Biomass over different years

Considering the Declining rate of forest cover as 1.7%

Year Sustainable yield of biomass (million tonnes) 1994/95 5.40 1995/96 5.31 1996/97 5.22 1997/98 5.13 1998/99 5.04 1999/00 4.96 2000/01 4.87 2001/02 4.79 2002/03 4.71 2003/04 4.63 2004/05 4.55 2005/06 4.47 2006/07 4.40 2007/08 4.32 2008/09 4.25 2009/10 4.18

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 40

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

MONITORING INFORMATION

Sample frame for monitoring Sampling Objective

The sampling objective is to obtain a reliable estimate of the key variables used in the estimation of emission reductions. The monitoring plan aims determining the following parameters:

Annex 4

1. Number of Improved Cook Stove that are disseminated in each CPA

2. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating at the specified efficiency (ηnew

3. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating or are replaced by an equivalent in service appliance.

) or replaced by an equivalent in service appliance. Where replacements are made, monitoring shall also ensure that the efficiency of the new appliances is similar to the appliances being replaced

4. The replaced low efficiency appliances are disposed of and not used within the boundary or within the region;

Field Measurement Objectives and Data to be collected

AMS II.G requires monitoring of the following parameters:

1. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating at the specified efficiency (ηnew

2. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating or are replaced by an equivalent in service appliance.

) or replaced by an equivalent in service appliance. Where replacements are made, monitoring shall also ensure that the efficiency of the new appliances is similar to the appliances being replaced

3. The replaced low efficiency appliances are disposed of and not used within the boundary or within the region;

The survey will be conducted annually with the objective to target 10 percent precision and to achieve 90 percent confidence.

Sample Frame and Target Population

The sample frame consists of selection of households using ICS spread over in terai and high hills regions out of the total population of [To be determined in specific SSC-CPA] ICS. The sample to be surveyed will be drawn randomly with a geographical spread within the project boundary under CPA. The sample frame seeks to collect data on the following parameters.

1. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating at the specified efficiency (ηnew

2. An annual check of a representative sample of all appliances (ICS in this project) to ensure that they are still operating or are replaced by an equivalent in service appliance.

) or replaced by an equivalent in service appliance. Where replacements are made, monitoring shall also ensure that the efficiency of the new appliances is similar to the appliances being replaced

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 41

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

3. The replaced low efficiency appliances are disposed of and not used within the boundary or within the region;

Sampling Method

A simple random sampling method will be used. In this method, each ICS to be evaluated or each household to be surveyed is chosen randomly such that each household in the sampling frame has the same probability of being chosen. As many households live in remote high hills areas of Nepal, the accessibility of such location will be considered when drawing the sample.

Desired Precision/Expected Variance and Sample Size

The sample size is determined using the General Guidelines for Sampling and Survey for Small Scale CDM project activities, Version 0126

The minimum sample size is calculated using the procedures outlined in Cochran (1977)

. As required by AMS I.E for annual surveys, the level of precision of 10% and a confidence level of 90% will be assessed for the monitoring parameters in this survey.

27 and Bartlet et al (200)1for the categorical data requiring two possible answers (YES or NO).

Where:

t = Value for the standard normal distribution value, with an infinite number of readings, and for the desired confidence level. For confidence level of 90% , t = 1.65

p × q = Estimate of variance value = 0.25 meaning standard deviation (variability) of 50% is assumed.

d = Acceptable margin of error (precision) for proportion being estimated 10%

68

In order to anticipate any low response rate and answers bias, 10% oversampling has been applied, giving a minimum sample size of 75 retained for the monitoring surveys and applied for the monitoring parameters in this survey.

Procedures for Administering Data Collection and Minimizing Non-Sampling Errors

A survey questionnaire will be prepared to seek responses to the categorical variable of operating status (yes or no) of ICS units, efficiency of ICS and non use of traditional cooking stove (yes or no) and to assess the displacement of NRB by ICS using households. .

The project entity will ensure that all 75 questionnaires are filled. To remedy the incomplete questionnaires, additional households will be drawn randomly to until the required number (75) is met as per the sample size determined.

26 General Guidelines for Sampling and Survey for Small Scale CDM project activities, Version 01, EB50, Annex 30 27 Cochran, W.E., 1977. Sampling Techniques, 3rd edition, Wiley

SMALL-SCALE CDM PROGRAMME OF ACTIVITIES DESIGN DOCUMENT FORM (CDM SSC-PoA-DD) - Version 01

CDM – Executive Board page 42

This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font.

The data collected will be compiled and analyzed to derive the percentage of ICS in operation efficiency of ICS and non use of traditional cooking stove (yes or no) and displacement or substitution of NRB by households.

Implementation

The survey questionnaire will be prepared by the project entity. The questionnaire will pre-tested and field personnel will be trained in conducting the survey to ensure the quality of data collected and the survey will be carried out once a year.

- - - - -