Project title :

1. Project title : “ Emission reduction based on the use of energy-efficient lighting in Senegalese rural electrification program” By : Ousmane Fall SARR

2. INTRODUCTION National pop: 11.9 million inhabitants (july 2006), Land area: 192,530 sq km (74,336 sq miles), GNI per capita (US$): 470, 2002 GDP(US$ billion): 4.9, GDP growth per capita (2002-06) : 2.7 Inflation in 2002: 2.6% Capital: DAKAR 56% of senegalese live in rural areas (in 14 000 villages), In 1997 only 5% of rural housholds have access to electricity, (around 55% in urban area) in 2000, only 600 villages electrified, Rural Electrification rate = 8 % Country Installed capacity : 500 MW, 450 MW peak Rural areas: High energetic demand (pumping, irrigation, transformation of agr. products, etc.) and low income, MAIN OBSTACLES RURAL ELECTRIFICATION DEVELOPMENT: A unique electrification option: grid ext. (very expensive) Huge spreading of rural habitats, irregularity and weakness of incomes in rural areas, Not enough public resources and scarce available funds for th electricity sector,

3. Rural Electrification: Situation in 2000

4. Reforms in the Electricitysector(1998-2000) and ASER’s RE PROGRAM • Diversification of financing sources, • Creation of new bodies : Regulation (CRSE) and Rural Electrification Agency (ASER). Senelecisresponsible for generation, transmission and distribution withinitsownperimeter (urban and some rural) • Creation of a Rural ElectricalFund • ASER’s Missions: • « promote and implement rural electrification programs by givingtechnical and financal assistance (subsidy) to all RE actors. » • ASER’s 0BJECTIVES: - Scale up national RE rate from 16% in 2006 to 50% in 2012. - Give access to electricity to all social institutions (health centers, schools), and other critical multi-sectoral institutions, in order to maximize the impact of RE on poverty reduction and the achievement of the MDGs. • ASER’s STRATEGY : a state planned RE concessionalapproachbased on a PPP

6. Project Design • Local Electrification Plan study -> Demand analysis • Energy needs assessment -> demand segmentation (definition of service levels) • Current energy substitutable expenses, • Willingness and capacity to pay • Potential market definition

7. Project Design • -> Analysis of Electrification Technology Alternatives • Spatial configuration of village and distance from electric infrastructures, • Cost effectiveness in technological option, • Each concession will be allotted to private operators who will be in charge of : • (i) developing a grid or other technical solutions that will provide electricity to people that did not have access to it; • (ii) managing a public utility of electricity services in rural area. • 2. An international bidding procedure is adopted in order to choose the best candidate that offers to connect the maximum of consumers for a given Government’s SUBSIDYat known basic TARIFFs.

8. Project Design

9. Project Design • DURATION PERIOD OF THE RE CONCESSION: 25 years. • CONCESSIONAIRES’ OBLIGATIONS : • Ensure supply, installation, exploitation and renewal of the electric components, in accordance with its contract. • For domestic consumers, Internal electric equipments are prefinanced by the concessionaire and these costs are paid back by the consumer within a period of 10 years. • Among the Electric components: • Compact Fluorescent Lamps (CFLs) of 8 W. • RESULTS: removal of the main access barrier but a need of additional funds

10. WHY CDM ? Alleviate this main financial barrier that prevent electricity access to rural population: the high cost of energy services in rural area compared to the low income of the potential client. This CDM PoA aims to mobilize the needed finances through CDM revenues. Incentive to CFLs installation:ASER will prefinance (subsidy) the rural domestic consumer’s interior installations and, the concessionaires systematically use of CFLs.

11. The CDM Project Design Project title : “ Emission reduction based on the use of energy-efficient lighting in Senegalese rural electrification program” -> Systematic use of low energy consumption bulbs (CFL) instead of incandescent lamps, for domestic lighting in Senegalese rural areas. Ensure CDM program implementation and continuity: Avoid replacing the CFLs by normal light bulb: Installation of devices to limit power demand. Incentive for good practices and monitoring: CDM revenues partially distributed to concessionaires.

12. CDM Project Activity • Programmatic CDM : PoA • Each concession is a CDM project activity (CPA). • Flexible approach: Include gradually each CPA. • Use AMS-IIC (simplified CDM modalities): • Each concession will be under the small-scale threshold (60 GWh per year). • Reduce transactions costs.

13. Baseline Definition Baseline or most likely scenario: use of 40 W incandescent lights Conservative approach: subtract the current use of CFLs in the baseline in Senegal (rural area)

14. Crediting Period, Project Boundaries and Leakages Crediting Period: 10 years for each concession Project Boundaries: Senegal Leakages: no leakages, no credits requested for CFLs replacement.

15. ERs Calculation Emission reductions = Baseline emissions – Project emissions - Leakage Baselineemissions project emissions Emission reductions estimated : 50,000 t per year Simplified equation applied to energy saving: ERs = (EB  EF)– (EPA  EF) - leakage [=] t CO2e per year where EB, PA = Σi(ni pi Oi) [=] kWh per year ni : the number of devices Pi : the power of the device Oi : the average annual operating hours of device EF: Emission factor for the electricity displaced (kg CO2e/ kWh)

16. Financial issues Emission reductions estimated : 50,000 t per year If 10 $ per t Average Cost for Internal : 260 $ US Domestic Equipments (wiring, limiter, bulbs, plugs, cycle stabilizer, etc)

17. Monitoring • Monitoring methodology: AMS IIC. • Parameters monitored: Energy consumed and average annual operating hours. • Sampling is allowed under AMS IIC: • Typically for EE projects: 5% is accepted. • This number could be reduced if it can be demonstrated that monitoring results will be similar (i.e. survey can be used).