The Yunnan Saizhu Hydropower Project (hereafter referred to as the “Project Activity” or “Saizhu Project”) is located in Zhuanlong Town, Luquan County, Yunnan Province. It is developed by Yunnan Dianneng Luquan Hydropower Development Co., Ltd (the “Project Entity”). The installed capacity of the Project Activity is 102 (3×34)MW with a valid utilization time of 4,300hrs. The surface of the reservoir at full level is only 6.95 ha making the power density 1,467.63W/m2. The annual gross electricity generation is 438.6GWh. The Project Activity can regulate daily river flow. The electricity generated by the Project Activity will be directly exported to the China Southern Power Grid (CSPG) via the local Yunnan Power Grid. After the Project Activity is completed, the electricity generated will effectively displace an equal amount of the electricity generated by the CSPG which gets most of its electricity from fossil fuel power plants, thereby reducing greenhouse gas (GHG) emissions. As this is a new built project; there is no project scenario and related measures/activities existing before the implementation of the Project Activity. The baseline scenario is therefore the continued supply of electricity by the CSPG. The estimated annual GHG emission reduction is 2,327,997tCO2e.

Construction of the Project Activity is consistent with China’s energy industry priority areas, contributing to the sustainable development of the host party and the local area in the following ways: • Reducing GHG emissions compared with the business-as-usual use of fossil fuel power; • Reducing emission of other airborne pollutants generated from China’s power industry using fossil fuels;

• Alleviating local supply shortfalls of electricity (the CSPG is a net importer of electricity); • Creating local employment opportunities.