Business Daily from THE HINDU group of publications
Monday, Jan 28, 2008
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Business Daily from THE HINDU group of publications Monday, Jan 28, 2008 ePaper | Mobile/PDA Version |
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Environment Industry & Economy - Electrical Goods Web Extras - Venture Capital Global carbon fund keen to finance CFL project plans here
To enable private sector CFL makers sell lamps at Rs 10-15/piece. And recover balance costs of manufacture from CDM revenues. States would benefit on lower demand due to reduced consumption. 
Push for CFLs Anil Sasi New Delhi, Jan. 27 Climate Change Capital (CCC), which manages the world’s largest private sector carbon fund, is keen on funding the Clean Development Mechanism-based energy efficiency lighting projects being planned by the Centre, and being implemented across States such as Andhra Pradesh and Haryana. The funding by the UK-based CCC is expected to be in lieu of receiving and encashing carbon credits generated from these projects. This could come as a shot in the arm for the ambitious project, which seeks to increase penetration of compact fluorescent lamps (CFLs) among households across the country as an energy conservation measure. “As the investment manager of the largest private sector carbon fund in the world, we are looking at many greenhouse gas reduction projects across the globe, including India… India is an important country for CCC and we are building out our team. We hope that energy efficient lighting will play an important part in our portfolio in India,” CCC’s Marketing and Communications Manager, Mr James Burnham, told Business Line. The Centre is currently working on a novel public-private partnership scheme to utilise the CDM provision of the Kyoto Protocol to increase penetration of CFLs among domestic consumers across the country. The scheme aims at enabling private sector CFL manufacturers to collaborate with distribution utilities and sell these lamps at around Rs 10-15 per piece to households, while recovering the balance costs of CFL manufacture from CDM revenues. CFLs are currently being sold in the market for around Rs 100 per lamp. “The commitment of the world’s largest independent carbon fund in the Government venture would definitely be a shot in the arm for the scheme and would build confidence of CFL manufacturers in the project,” a Delhi-based CFL manufacturer said. CCC has already kicked off talks with private players involved in CFL projects in states such as Haryana and Andhra Pradesh, where the distribution utilities have already begun the process of tie-ups with CFL manufacturers under a CDM-based scheme. According to industry sources, CCC is in talks to possibly invest in the lighting energy efficiency project of Andhra Pradesh, which will facilitate 10.1 million consumers to switch over to the environment-friendly CFLs. The project also involves the Andhra Pradesh government and three State-owned power distribution companies.
While States would benefit on account of lowering of peak demand, as CFLs would reduce consumption, CFL manufacturers stand to gain from the intervention of PE players such as CCC in the scheme since the uncertainties involved in deferred CDM revenues and value of credits would be borne to a certain extent by the funding institutions. CCC had recently created the world’s largest private sector carbon fund, raising $830 million in three months last year, and expecting the total to top $1 billion. Investors include Dutch pension funds ABP and PGGM, two of the world’s top five pension funds, and the UK-based international energy group Centrica, and a global emerging markets banking group. The money raised is to be specifically invested in projects in developing countries that would lead to reductions in the amount of greenhouse gases (GHG), specifically carbon, being emitted into the atmosphere. The fund is specifically targeted at generating returns by acquiring a diversified portfolio of different types of carbon assets and derivatives. Centre bets on energy saving building code BESCOM plans relaunch of discounted lamp scheme No new power connections without CFLs Promoting CFL: States switch off incandescent bulbs More Stories on : Environment | Electrical Goods | Venture Capital
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