Relevance of CDM in Development of Renewable Energy

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Relevance of CDM in Development of Renewable
Energy
Kubera Chambers, Shivajinagar, Pune - 411
005 Maharashtra, INDIA
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MITCON

• Joint Venture of
• Financial Institutions (like ICICI, IDBI, IFCI)
• Public Sector Commercial Banks (like SBI, BoB,
  BoM etc.)
• State Development Corporations (like MIDC,
  MSSIDC, SICOM)
• Established in 1982 as a deemed public limited
  company
• An ISO 9001 - 2000, dividend paying consultancy
  organization
• MITCON provides consultancy training services
  to existing new entrepreneurs covering diverse
  industry sectors
• Provides expert services at micro and macro level
  for specialized subjects, www.mitconindia.com

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What We are Doing?
Consultancy services for RE projects CDM / VCS
/ GS
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Renewable Energy Potential Status
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Challenges for RE Project Promoters
Higher project costs than mentioned in tariff
orders
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Challenges for RE Project Promoters (Contd.)

• Higher interest rate regime
• Lower share of debt based on promoters appraisal
• Same buy-back tariffs
• Lower generation than initial estimates
  (sometimes 50 lower)
• Socio-political issues land, O M, grid
  conditions etc.
• Time overrun during construction
• Cost overrun due to time overrun other factors
  Increase in equity
• Un usual increase in fuel costs (biomass)
• Increasing transaction costs (fixed annual) and
  sharing of carbon credit benefits
• Delay in funds realization revenue from
  electricity sale / carbon credits
• Results in lower returns !!

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Relevance of CDM in RE Development

• CDM benefits improve returns and hence helps to
  mitigate some of the challenges
• Acts as a driver for Project Promoters to go for
  RE projects in present challenging environment
• Approaches like PoA / Bundling makes small RE
  project capacity holder to enjoy carbon credit
  benefits
• International recognition to the Promoter
  (important for small scale promoter!)

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Thank You
MITCON Consultancy Services Ltd. Kubera Chambers,
Shivajinagar, Pune - 411 005, INDIAPh. 020 -
2553 3309 / 2553 4322 Fax 020 - 2553 3206
Contact Deepak Zade, Exec. Vice
President deepak_at_mitconconsultancy.org