Climate Change Investment II, a fund managed by First Climate, will invest Rs500 million ($10.7 million) in Suryachakra Power Corporation’s renewable projects, which include biomass, solar thermal, wind and hydro.

The clean development mechanism (CDM) projects are expected to generate 300,000 certified emission reductions (CERs) a year initially, although this figure could rise to 500,000.

Some 20 per cent of the projects are already operational, while another 30 per cent will be commissioned in early 2010, First Climate said in a statement.

The remaining 50 per cent will be commissioned by 2012, which means credits will be generated for use before and after this year, a spokesman said. 

Negotiations are currently underway in Copenhagen to agree a global successor to the Kyoto protocol, which defines the scope of flexible mechanisms like the CDM up to its first expiry period in 2012.

First Climate and Suryachakra Power Corporation are also in discussions with Indian and foreign banks over the sale of the credits.

The spokesman said these discussions were fairly advanced and should be concluded in early 2010.

Suryachakra currently has 2 0MW of operational capacity from biomass energy, while an additional 30 MW is due to come on line by early 2010.

The Hyderabad-based generator plans to raise a total of Rs4,500 million over the next 12 months to increase this capacity.


Source: www.pointcarbon.com/news/1.1324903