Bundled Solar Water Heater Project, the first CDM (Clean Development Mechanism) project in the country to have been registered with the United Nations Framework Convention on Climate Change (UNFCCC), is likely to take off in Orissa soon.
The project, which involves the installation of solar water heaters in commercial and institutional buildings, will enable the users to sell green energy through carbon credit deals.
“We have discussed about the project with the Bhubaneswar Development Authority (BDA) and the officials of the state energy department. The BDA has to amend the existing by laws to make the installation of solar water heaters mandatory in commercial and institutional buildings. On its part, the state energy department has to ensure that Grid Corporation of Orissa (Gridco) buys green power generated by these solar water heaters”, said Ashok Singha, chief executive officer of city-based CTRAN Ltd.
“The Karnataka government has already made the installation of solar water heaters mandatory in commercial and institutional buildings. In Maharashtra, it has been made compulsory in Mumbai and Pune. The BDA has to take the initiative to start this project in Orissa”, he added.
D K Singh, vice chairman of BDA, however, said, “As of now, no decision has been taken to enforce installation of solar waters in commercial and institutional buildings.”
Pune based G K Energy Marketers is acting as project proponent and aggregator to combine 15,000 end users of solar water heater from state of Maharashtra, Gujarat and Karnataka from the year 2008 in consortium with forty solar water heater manufacturers from across the country.
CTRAN Ltd, a firm formed specifically to address the emerging issues related to climate change, energy and environment in partnership with G K Energy Marketers, has accepted the challenge of registering the solar water heater CDM Project in spite of failure of similar initiatives in the past by many agencies.
According to Singha, the project can help recover one-third of the installation cost within the first two years.
CTRAN, a BASIX group company, has structured a 2.5 million euro deal wherein micro carbon credits obtained from migrating households, hotels and other small units to solar water heaters have been contracted for sale in the global CDM market over the next ten years (November 12, 2010 to November 11, 2020).The project is expected to lead to a saving of 27.87 million units of electrical energy per annum.
This amount will go back to the participating entities, adding to their income streams.