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Reliance Power said that its 4,000 MW Sasan ultra mega power project will generate 22.5 million CER (certified emission reduction) credits, whose sale would be over Rs 2,000 crore in the initial 10 years of operation.
The revenue projection is based on the prevailing CER prices.
R Power said that the project using super-critical technology had been registered with the Clean Development Mechanism Executive Board (CDM-EB) of the United Nations Framework Convention on Climate Change. The registration allows the project to earn certified emission reduction credits, each equivalent to one tonne of CO{-2}. The CERs can be traded and sold.
The company claimed that the Sasan project in Madhya Pradesh is the first UMPP in the country to be registered with the CDM–EB and also the largest power generation plant registered with the CDM–EB.
The project was granted ‘Host Country Approval' by the Ministry of Environment & Forests in 2009 confirming that the project contributes to sustainable development.
The Rs 16,000-crore UMPP is expected to be commissioned in 2012-13. It will be of 3,960 MW (six units of 660 MW each) pit-head coal-fired power generating plant. The project also involves development of associated captive coal mines allotted to the company to ensure fuel security.
Sasan Power has entered into a 25-year power purchase agreement for its entire capacity at a tariff of Rs 1.19 per kWh. The project is expected to supply power to seven States.
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