CDM potential of SPV pumps in India
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 are 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. Solar Photovoltaic (SPV) irrigation 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.
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