Carbon Market Watch

For fair and effective climate protection.

Rampur – Hydro power project, India

Project Title: Hydroelectric power project by SJVNL in Himachal Pradesh
Status: Registered
Ref #: 4568
Consolidated baseline methodology for grid-connected electricity generation from renewable sources- ACM0002 ver. 12

The large-scale World Bank hydro power project in Rampur is non-additional and has far-reaching effects on the local environment, local opposition and no compensation for the affected local community.

The project is a part of several mega dam projects in Himachal Pradesh, northern India. It was registered as a CDM project in July 2012 and is a part of the World Bank fund, Umbrella Carbon Facility Tranche 2. Over the next 10 years, Rampur is expected to generate about 14 million carbon credits at an estimated market value of $100 million USD even while the projects’ additionality remains questionable. In 2004 the regional company SJVNL and the World Bank signed a deal on Rampur, but it was not until 2009 that they filed the application to become a CDM project. Many of the additionality concerns of the project cannot even be further investigated because one of the key documents, the investment analysis, is not publicly available. This in itself is an infringement of CDM rules.

More to WATCH!

Additionality & Baselines
Hydro Power
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Rampur is a “run of river” project, not a classical dam hydro project. Instead of damming up the Sutlej River a huge tunnel is now under construction. The tunnel will redirect the normal flow of the river and only a tiny part of the water will be kept in the normal river basin.


Due to problems with dust, muck, drying up of ground water, negative effects on local agriculture and the occurrence of landslides which are involved in this project, many families need to be moved from the area. At the moment no compensation or other arrangements have been made for them.

According to the PDD:

The Rampur Hydroelectric Project (RHEP) is a run-of-river project located near the town of Rampur in Himachal Pradesh. The total installed capacity is 412 MW. The project, located on the River Satluj will and utilize desilted water of 1500 MW Nathpa Jhakri hydro power project. The purpose of the project activity is generation of electricity using the hydro energy potential available in the River Satluj. The generated power will be exported to different states1 under the NEWNE Grid2 as per the power purchase agreement between the states and the project promoter. This will improve the electrical supply to the existing consumers, especially at peak times. 

Identified shortcomings

• 412MW Large Hydro – Highly likely to be Non-Additional. The decision to finance the project had been taken long before the CDM was created. Read more
• The Swedish criteria for CDM projects states that Sweden only supports hydro projects of a small or medium scale. At 412 MW, this project is clearly large scale, both by Swedish and Indian standards.
• Environmental damage to the project area, including negative effects on agriculture and occurrence of landslides. Read more

What we are calling for:

 Large Hydro projects of this capacity must no longer receive CDM support.
• Indian projects that are under investigation by the national Green Tribunal must have the LoA, removed by the Designated National Authority until due process is complete. Read more

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