Mumbai, AG, Germany’s second-largest utility, agreed to buy 227,460 United Nations emission credits at about 20 percent below market prices from a solar water heating project in India.
The emission reductions will be generated by having 15,000 households, hotels and other users of electric water heaters switch to solar water heating, Ashok Singha, chief executive officer of CTRAN Consulting, an environmental advisory company that managed the project, said by telephone.
The project is expected to earn 22,746 credits annually over 10 years from the UN-led Clean Development Mechanism, he said from Bhubaneswar. “First issuance will be next year,” Singha said today. The credits have been sold to RWE Power Aktiengesellschaft in a forward purchase agreement, he said.
RWE will buy the credits at about a 20 percent discount to the market price at the time, Singha said. Spot UN Certified Emission Reductions rose 1.2 percent to 12.18 euros ($16.46) a metric ton after finishing yesterday at a three-month low on the BlueNext exchange in Paris.