The Project would supply clean power to the national transmission grid wherein the present grid mix is relatively skewed towards power generation from coal-based plants. Consequently, implementation of the Project would lead to a reduction in carbon-dioxide emissions by feeding clean power into the grid.
The proposed Project would provide the following environmental benefits:
o Export of clean power to the national transmission grid thereby eliminating equivalent generation from coal-based power plants, which would lead to higher environment emissions
o Conservation of coal, which is a non-renewable resource and also making it available for other applications
o Reduction in GHG (Carbon Dioxide) emissions
o No displacement of people or degradation of land
On account of the aforementioned benefits, the Project can claim emission reduction credits under the CDM scheme established as part of the Kyoto Protocol under United Nation Framework Convention to Climate Change (“UNFCCC”).
As per the existing CERC Tariff Guidelines, 100% of the gross proceeds on account of CDM can be retained by the project company in the first year of operation. Subsequently, the share of power offtakers / beneficiaries would be 10% in the second year which would be progressively increased by 10% every year till it reaches 50 %.
Ernst & Young Private Limited (E&Y), Mumbai have been appointed as advisor for the project regarding matters related to Kyoto Protocol under United Nation Framework Convention to Climate Change (UNFCCC). E&Y has prepared Project Design Document (PDD) based on the guidelines of the United Nations Framework Convention on Climate Change (UNFCCC) and will facilitate validation of the project. E&Y will use its national and international reach to assist in identifying potential buyers of the Certified Emission Reductions (CERs) generated from the project. The sale of CERs would result in flow of an additional revenue stream to the generation project.