New Delhi: Anil Ambani-led Reliance Power’s 4,000 MW Krishnapatnam ultra mega power project in Andhra Pradesh would generate revenues worth Rs 1,100 crore by trading carbon credits under the United Nation’s Clean Development Mechanism (CDM) programme.
“Krishnapatnam Ultra Mega Power Project has been registered with Clean Development Mechanism Executive Board (CDM-EB) of United Nations Framework Convention on Climate Change (UNFCCC),” Reliance Power said in a statement.
CDM registration allow Reliance Power’s Krishnapatnam UMPP to earn Certified Emission Reductions (CERs), each equivalent to one tonne of CO2. These CERs can be traded and sold, and will result in significant revenues for Reliance Power, the statement said.
The project will generate 12.3 million carbon credits during the 10 year period. Value of carbon credits from the project is estimated at Rs 1,100 crores during the initial 10 year period.
The company is executing three UMPPs — Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) ultra mega power projects.
Reliance Power’s Sasan and Krishnapatnam projects are registered with CDM-Executive Board. The value of carbon credits for Reliance Power from both these projects are estimated at over Rs 3,000 crores during the initial ten year period of operations.
Coastal Andhra Power Limited, the special purpose vehicle for Krishnapatnam UMPP, has entered into a 25-year Power Purchase Agreement (PPA) with the off-takers of power for its entire capacity at a competitive tariff of Rs 2.33 per unit. The estimated project cost is about Rs 17,400 crore, it added.
There were media reports that the electricity tariff of the Krishnapatnam project is likely to increase due to hike in coal prices in Indonesia, from where the company is sourcing the raw material for the coastal project.