SMALL HYDRO POWER PROJECT WITH CDM
The CDM is a financing instrument defined in article 12 of the Kyoto protocol. A project in a developing country that reduces GHG emissions, relative to a baseline project, generate emission reduction (ER) , CDM enables the project owner to sell the ER credit, ones there are certified, to an interested buyer.
It is estimated the annual energy production from the SHP shall be 9.76X 10⁶ on kWh and the energy available for sale be of the order of 9.56X10⁶ kWh per annum. The coal being used in thermal power station in India not being of very good quality, it may be appropriate to assume that the carbon dioxide being emitted shall be of the order of 987 gms per kWh. On this basis the carbon dioxide emission reduced by generating same amount of electricity energy from SHP works out to 9435 tonnes per annum.
On this basis over the life time of power plant the carbon dioxide reduction is expected to be of the order of 283050 MT. since the SHP is a renewable energy project and its operation can provide energy for social and sustainable development without contributing to GHG emission is eligible for financing under CDM facility as envisaged in article 12 of the Kyoto protocol. This will generate additional revenue stream annualy
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