CDM potential of windmill pumps in India

Purpose - The clean development mechanism (CDM) 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. Windmill pumps could be of interest under the CDM because they directly displace greenhouse gas emissions while contributing to sustainable rural development. This study aims to assess the maximum theoretical as well as the realistically achievable CDM potential of windmill pumps in India. Design/methodology/approach - To estimate the CDM potential of windmill pumps in case of electricity replacement (by the substitution of electric motor pumps) regional baseline(s) has been used whereas in case of diesel replacement (by the substitution of diesel engine pumps) the IPCC emission factor(s) has been used. The authors have analyzed the financial feasibility of five designs of windmill pumps at ten select locations in India to justify the financial additionality of windmill pump-based CDM projects. To analyze the future dissemination levels of windmill pumps logistic growth model has been used. Findings - The annual CO2 emissions mitigation potential through windmill pumps in India could theoretically reach five million tones. Under more realistic assumptions about diffusion of windmill pumps based on past experiences with the government-run programmes, annual CER volumes by 2012 could reach 13,000-46,000 and 0.07-0.3 million by 2020. This would require that the government sets the subsidy level for windmill pumps at a level that allows them to become viable with the CER revenue. From a macro-economic point of view, this makes sense if the sustainability benefits are deemed sufficiently high to warrant promotion of this project type. Originality/value - The paper illustrates the vast theoretical potential of CO2 mitigation by using windmill pumps for irrigation water pumping in India.