The credits will be sold to the Italian Carbon Fund for which World Bank is the Trustee.

Allain Duhangan, which started construction in 2005 with the support of the International Finance Corporation, is a greenfield run-of-river project without any dam on the river. It has a capacity of 192MW making it the largest run-of-river hydro power plant in India to be issued carbon credits to date. It is also one of the largest hydro power projects in India to be fully financed by the private sector.

“Congratulations to project owners Bhilwara Group, S.N. Power and our sister organization the International Finance Corporation for making this project happen”, said the World Bank lead for the project, Chris Warner. “This substantial investment is making an important contribution towards the greening of the India power grid and in meeting the peak power needs of the rapidly growing Indian economy”.

The high head underground power plant uses water flow from a combination of glacial snowmelt and monsoon rains. In addition to lowering greenhouse gas emissions, during construction, the project provided thousands of jobs for the Kullu district of Himachal Pradesh and is contributing to the overall development of its infrastructure.