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CDM potential of SPV pumps in India

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  • Purohit, Pallav
  • Michaelowa, Axel

Abstract

So far, the cumulative number of renewable energy systems such as solar photovoltaic (SPV) irrigation pumps in the agriculture sector in India is far below their theoretical potential despite government subsidy programmes. One of the major barriers is the high costs of investments in these systems. The clean development mechanism (CDM) provides industrialized countries with an incentive to invest in emission reduction projects in developing countries to achieve a reduction in CO2 emissions at lowest cost that also promotes sustainable development in the host country. SPV pumps could be of interest under the CDM because they directly displace greenhouse gas emissions while contributing to sustainable rural development. However, there is only one SPV project under the CDM so far. This study assesses the maximum theoretical as well as the realistically achievable CDM potential of SPV pumps in India. Due to mitigation costs of 24-242Â [euro] per ton CO2 at current CER prices of less than 15Â [euro], SPV pump projects are not viable. However, substitution of diesel pumps could be made viable by a relatively limited subsidy. While the maximum mitigation volume is more than 214 million ton CO2 on an annual basis, an estimate of achievable CER levels is done using the past diffusion trends of SPV pumps. We find that annual CER volumes could reach 50,000-100,000 by 2012 and 0.25-0.75 million by 2020. This would require that the government sets the subsidy level for SPV pumps at a level that allows them to become viable with the CER revenue. From a macro-economic point of view this makes sense if the sustainability benefits are deemed sufficiently high to warrant promotion of this project type.

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Bibliographic Info

Article provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.

Volume (Year): 12 (2008)
Issue (Month): 1 (January)
Pages: 181-199

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Handle: RePEc:eee:rensus:v:12:y:2008:i:1:p:181-199

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Keywords: Clean development mechanism Agriculture Renewable energy CO2 emissions Solar photovoltaic pumps India;

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References

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  1. Purohit, Pallav & Kandpal, Tara C., 2005. "Renewable energy technologies for irrigation water pumping in India: projected levels of dissemination, energy delivery and investment requirements using available diffusion models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 9(6), pages 592-607, December.
  2. Oliver, M. & Jackson, T., 1999. "The market for solar photovoltaics," Energy Policy, Elsevier, vol. 27(7), pages 371-385, July.
  3. Michaelowa, Axel & Jotzo, Frank, 2005. "Transaction costs, institutional rigidities and the size of the clean development mechanism," Energy Policy, Elsevier, vol. 33(4), pages 511-523, March.
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Citations

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Cited by:
  1. Purohit, Pallav & Michaelowa, Axel, 2007. "CDM potential of bagasse cogeneration in India," Energy Policy, Elsevier, vol. 35(10), pages 4779-4798, October.
  2. Pallav Purohit & Axel Michaelowa, 2008. "CDM potential of SPV lighting systems in India," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(1), pages 23-46, January.
  3. Purohit, Ishan & Purohit, Pallav & Shekhar, Shashaank, 2013. "Evaluating the potential of concentrating solar power generation in Northwestern India," Energy Policy, Elsevier, vol. 62(C), pages 157-175.
  4. Purohit, Pallav, 2007. "Financial evaluation of renewable energy technologies for irrigation water pumping in India," Energy Policy, Elsevier, vol. 35(6), pages 3134-3144, June.
  5. Rao, K. Usha & Kishore, V.V.N., 2010. "A review of technology diffusion models with special reference to renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(3), pages 1070-1078, April.
  6. Chaurey, A. & Kandpal, T.C., 2009. "Carbon abatement potential of solar home systems in India and their cost reduction due to carbon finance," Energy Policy, Elsevier, vol. 37(1), pages 115-125, January.
  7. Chaurey, Akanksha & Kandpal, Tara Chandra, 2010. "Assessment and evaluation of PV based decentralized rural electrification: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2266-2278, October.
  8. Purohit, Pallav & Michaelowa, Axel, 2007. "CDM potential of wind power projects in India," HWWI Research Papers 1-8, Hamburg Institute of International Economics (HWWI).

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