Small PV project developers in India to benefit from carbon credits

EVI claims it is among the first of its type in India. The aim is to reward investors of small PV projects that would ordinarily miss out on carbon credit revenues, because of the CDM’s high auditing costs and lengthy approval process.

Deepak Verma, chief operations officer and head of EVI’s carbon finance and technology solutions said EVI would need between 30 and 40 small-scale solar projects, of between one and two megawatts, to break even. He added that each could earn around 1,200 Certified Emissions Reductions (CERs) per megawatt annually.

If traded on the European Climate Exchange, it is possible to earn up to €14 per CER. Project developers joining the program can pay an upfront fee initially and share a percentage of CERs with EVI going forward. Alternatively, they can choose to not pay the upfront fee, but instead share a higher percentage of CERs later.

So far EVI has already got three developers and hopes to get about 50 more who have applied under the National Solar Mission Plan.