United Nations Framework Convention for Climate Change (UNFCCC) has registered India’s first Programme of Activities (PoA) for grid connected solar power projects under its Clean Development Mechanism (CDM). The PoA is launched by SENES Consultants has received its registration on March 2012 and the first bundled project under the PoA consists of 13 solar projects having total capacity of 15MW.
These projects will get accounting of their CERs for the generation from 1st of April, 2012. This is the largest registered project for grid connected solar projects from India in terms of Capacity as well as the number of projects. As of now only two solar projects of 10MW aggregate capacity is registered with UNFCCC from India apart from the ones under this PoA.
The company has confirmed that another 50 MW projects are in pipeline to be added under the PoA in next 3 months of time.
Programme of Activities is a technique under the CDM for fast track registration of similar projects. Now solar projects can get assured CDM registration & projects will be registered within 100 days of work start on the CDM project, whereas in project based approach it takes 18-20 moths of time by the way of bypassing scrutiny from UNFCCC & Host Country DNA. This in turn involves lot of saving on costs and ensures registration.
The life time of the PoA is 28 years & individual CPA s can enjoy CDM benefits through PoA for a 21 years crediting period.
One of the major advantage for the projects under PoA apart from time & cost saving is that buyers of the CERs coming from projects under the PoA are offering better prices in the forward deals because of the zero risk involved of the non-registration.
Since the PoA is registered on the date of 28th March,2012 i.e. in the first commitment period of the Kyoto Protocol, it is foreseen that the projects which are getting added under PoA even after December 2012 will be considered as the 1st commitment period projects & the CERs generated from those projects will have an advantage in term of the price.
This completely omits the fear or uncertainty among the solar project developers regarding the non availability of the buyers of the CERs in the market for the projects getting registration after December, 2012, the company adds.