Potential of wind power projects under the Clean Development Mechanism in India
So far, the cumulative installed capacity of wind power projects in India is far below
their gross potential (. 15%) despite very high level of policy support, tax benefits, long term
financing schemes etc., for more than 10 years etc. One of the major barriers is the high costs of
investments in these systems. The Clean Development Mechanism (CDM) of the Kyoto Protocol
provides industrialized countries with an incentive to invest in emission reduction projects in
developing countries to achieve a reduction in CO2 emissions at lowest cost that also promotes
sustainable development in the host country. Wind power projects could be of interest under the
CDM because they directly displace greenhouse gas emissions while contributing to sustainable
rural development, if developed correctly.