Design Principles for Nationally Appropriate Mitigation Actions (NAMA)

Learning's from CDM Programme of Activity (PoA) Bachat Lamp Yojana

What the Master on Design said

Start with the customer experience & work back toward the technology - not the other way around . Join the dots ! Steve Jobs

Overview
Bachat Lamp Yojana (BLY) Objectives & benefits Current Status Scheme Architecture Learning's for NAMAs

Driver

Bachat Lamp Yojana

Reduce first price of CFLs using CDM revenue for domestic users and hasten Market Transformation Value Addition

Public-Private model

partnership

business

Potential Benefit by 2020 0.5 million light-points per project, > 400 projects possible to cover India Annual avoided capacity ~ 4000 MW

BEE is the Co-ordinating and Managing Entity Worlds largest multi-investor PoA

Current Status*
Geographic Coverage

* As of 1 March 2012

State
CPAs Included Current By May 2012 Empanelled Investors Overall Active Investment Outlay Per CPA CFLs Distributed In millions In CPAs

Status
45 65

20 5

INR 5 crore; $ 1.13 million

24.4 28

BLY Scheme Architecture

Buyer in Annex I Country Allocation of CERs

PoA -Manager

Communication Monitoring report Host Approval

CDM EB DOE

DNA

Payment for CERs

CERs sold

Coordinating & Managing entity

CFL INVESTOR Safe disposal of fused CFL

Fused CFLs returned

HOUSEHOLD

Replaced ICL lamp Contract for implementatio n DISCOM Safe disposal of replaced ICL
Provide CPA-DD Consumer database Access to sample groups

Buying CFL CFL = Compact Florescent Lamp ICL = Incandescent lamp DOE = Validators BEE = Bureau of Energy Efficiency DISCOM = Distribution Company

CFLs to replace ICL

K.I.S. S Learnings for NAMA design

# 1-- Reduced Transaction Kosts K.I.S.S

CDM (normal) Time 2 years; replication 2 years CDM (Programme of Activities) 2 years (one time); replication 2 months

Cost

Each time atleast INR 25 lakhs, $ 0.5 million

INR 25 lakhs (one time), $ 0.5 million; Replication INR 5 lakhs, $ 0.1 million

Assumption: 1 $ = INR 50

# 2 CME is like Eye of Storm

K.I.S.S

Develop a strong institutional CME which can

Wield (explicit or implicit) trust / authority among key stakeholders Independent resource provision NOT linked to PoA profits Ready access to professional know-how BLY Example: The BEE performs the role of eye of a storm and yet is independent of investor and Utility who provide last mile connect

Tip: A strong eye holds the storm

# 3 Simplify Monitoring & Verification

K.I.S.S
Reduce Investor Risk

Reduce data monitoring and assurance costs using e.g. Predefined factors, sampling plans Develop standard templates and provide public access

BLY example use of simple deemed saving methodology AMS IIJ

BEE developed all documents & templates and maintains it on its website

Tip: Focus on predictibility of returns and ease to investor!

# 4-- Consulting Stakeholders Pays K.I.S.S

Consult Stakeholder(s)

Provides 360 due diligence on project design Identify barriers to uptake and develop enablers Builds transparency of decision making and buy-in

Tip:

BLY example

Web-site based consultation reduces costs and is quick and convenient Budget adequate time to enable 2-3 consultations

National stakeholder meeting facilitated by Greenpeace periodic meetings held (tilldate) with Investors / Utility to iron out issues

The CDM road is full of pot-holes.

& scaling up to a NAMA could magnify the pot-holes if we dont rethink design ..

Join the Dots Like Steve Jobs !

K.I.S. S
K- Lower costs I- Institutional eye S- Simplicity of M&V S- Stakeholder engagement