An online clean technology database

Financing for Bundled Small-scale Rural Renewable Ventures in India

Combined Heat and power (CHP): small-scale

small cogeneration system

Co-generation is the combined production of useful thermal energy and electricity (Combined Heat and Power, CHP) from the same primary fuel. CHP can take on many forms and encompasses a range of technologies, but will always be based upon an efficient, integrated system that combines electricity production and heat recovery. By using the heat output from the electricity production for heating or industrial applications, CHP plants generally convert 75-80% of the fuel source into useful energy, while the most modern CHP plants reach efficiencies of 90% or more (IPCC, 2007).

Clean Development Mechanism market status: 

Biofuels from algae

An open pond for growing algae in Israel. (source: Seambiotic)

Producing biofuels from algae is still in a pre-commercial state of technology development. But algae-based biofuels are considered to be a promising upcoming alternative to fossil fuels as they could reduce GHG emissions when compared to fossil fuels, and because algal biofuels may have additional advantages over traditional biofuels such as higher per acre yields and less competition for arable land. The main obstacle to a wide spread use of algae-based biofuels are the high production costs.

Wind energy: small-scale

Small wind turbines on the isle of Eigg, Scotland

Smaller-scale wind turbines can be found in a wide range of applications including off-grid power; either directly by charging a storage battery or in combination with another form of generation to cover intermittent periods when there is little to no wind. In such instances small wind may be cost effective depending on the costs of alternate off-grid technologies and fuel prices; however the overall contribution of small wind to climate change mitigation will probably be limited due to the long payback periods required to offset the carbon used in their manufacture.

Clean Development Mechanism market status: 

[this information is kindly provided by the UNEP Risoe Centre Carbon Markets Group]

Project developers of small-scale wind projects under the CDM mainly apply the following CDM methdologies:

AMS-I.D.: Grid connected renewable electricity generation

AMS-I.A.: Electricity generation by the user

CDM projects based on wind represent 17.3% of all CDM projects in the pipeline. Recent years have shown a tendency towards a more widening geographical dispersal of CDM wind projects, indicating that countries other than India and China observe the CDM as a tool to support wind projects. [media:image:3] 

To define and launch a new credit practice in Yes Bank (YBL) focused on financing for small-scale renewable ventures in rural India.


28° 36' 0" N, 77° 12' 0" E
Main activity and output: 
  • Practice at Yes Bank focused on financing small-scale renewable transactions in rural India;
  • Develop bundles of small-scale rural renewable ventures for financing that utilise a combination of conventional and carbon finance mechanisms;
  • Secure conventional and carbon financing for a set of three commercially attractive pilot subject renewable transactions;
  • Document best practices and lessons learned for scale-up and replication.
Expected impact: 
  • The practice in YBL will be an ongoing commercial operation that will continue to finance small-scale rural renewable ventures after the Project is over. Further, the bundling mechanism will facilitate such financing;
  • Financing a bundle of subject ventures will provide evidence that this is possible and serve as a model to be implemented in other YBL branches as well as other banks in India;
  • The Projects financed will be active generators of energy from renewable sources, further proving the viability of such options.