Reliance Power to earn Rs5,000 crore over 10-year period from sale of carbon credits
04 October 2011
Reliance Power, which is promoting three ultra-mega power projects (UMPPs) in India, should be able to earn about Rs5,000 crore over a 10-year period from trading its carbon credits earned from the three plants.
According to J P Chalasani, CEO, Reliance Power, which is part of the Anil Ambani-controlled Reliance ADAG, said all three UMPPs have got approval for carbon credits from the United Nations Framework Convention on Climate Change (UNFCCC).
The UNFCCC's Clean Development Mechanism Executive Board (CDM-EB) allows the Tilaiya project, to be commissioned during the 12th Five-Year Plan period beginning April 2012, to earn certified emission reductions (CERs), which can be traded, sold and translated into direct revenues.
The 3,960 MW Tilaiya UMPP in Jharkhand is the latest to have got approval from the UN body.The other two UMPPs – at Krishnapatnam in Andhra Pradesh and Sasan in Madhya Pradesh – had earlier this won similar approvals.
All three plants would be producing about 5.6 million CERs.
The approvals from the UNFCCC recognise the company's commitment to the use of clean and green technologies to reduce carbon footprints, said Chalasani. The Tilaiya UMPP will generate 21.3 million carbon credits during the initial 10 years, valued at Rs2,000 crore.