The Project is supplying 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 has lead to a reduction in carbon-dioxide emissions by feeding clean power into the grid.
The Project provides the following environmental benefits:
- Export of clean power to the national transmission grid thereby eliminating equivalent generation from coal-based power plants which lead to higher environment emissions
- Conservation of coal, which is a non-renewable resource and also making it available for other applications
- Reduction in GHG (Carbon Dioxide) emissions
- 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”).
OTPC CDM project was successfully registered at the United Nations Framework Convention on Climate Change (UNFCCC) on 26th December 2012 and the company is now taking active steps towards first verification of its CDM project. The first monitoring period has been considered for generation period from 31st December 2013 to 31st March 2015.
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 beneficiaries would be 10% in the second year which would be progressively increased by 10% every year till it reaches 50 %, whereafter the proceeds shall be shared in equal proportion, by the generating company and the beneficiaries.