Anil Ambani-led Reliance Power today said it would earn Rs 2,000 crore by trading carbon credits from its Tilaiya ultra mega power project (UMPP) during the first 10 years of its operations.
Reliance Power's Tilaiya UMPP in Jharkhand has got approval for carbon credits from the United Nations Framework Convention on Climate Change (UNFCCC), the company said in a statement.
The Clean Development Mechanism Executive Board (CDM-EB) of UNFCCC allows the Tilaiya project— to be commissioned during the 12th Five-Year Plan period, starting next year— to earn Certified Emission Reductions (CERs).
The CERs can be traded and sold and translate into direct revenues for companies such as Reliance Power.
"This is recognition of the company's commitment to use of clean, green technologies for reducing carbon footprints and sets a benchmark in the country," said J P Chalasani, Chief Executive Officer, Reliance Power.
The Tilaiya UMPP will generate 21.3 million carbon credits during the initial 10 years and they are valued at over Rs 2,000 crore, the company said.
Jharkhand Integrated Power Ltd, the special purpose vehicle for the Tilaiya UMPP has entered into a 25-year Power Purchase Agreement (PPA) with off-takers for its entire capacity. The project would supply power to 18 off-takers in 10 states.
RPower has an installed capacity of 1,200 MW at its Rosa thermal power project in Uttar Pradesh. The company is also executing two more UMPPs at Sasan (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh).
