India has a huge potential for small-scale Renewable Energy projects and targets 10,000 MW of installed capacity from Renewable Energy by the year 2012. Renewable Energy projects are capital intensive and are generally small-scale (< 15MW) in India. Since the Renewable Energy projects are environmentally friendly and promote sustainable development, they are eligible to receive foreign investments under CDM.

However, even with the approved simplified modalities and procedures for small-scale CDM projects, the transaction costs are often prohibitively high for small RE projects. This is due to both high cost of documentation and the low carbon prices in the current market.

This project is designed based on the needs identified during stakeholder consultations at Delhi, Mumbai and Bangalore in 2003-2005 under the project: “Establishing Institutional Capacity to Enable Small-Scale CDM project” (www.cdmpool.co.in ) funded by the European Commission (EC). IT Power is working closely with small-scale project developers, investors, policy makers (Ministry of Environment and Forests, Ministry of Non-Conventional Energy Sources, Ministry of Power), facilitators (NGOs, RE Associations), financial institutions (Banks, Institutional Investors), research and academic institutions under the EC project.