Anil Ambani-owned Reliance Power on Monday said it would earn Rs.2,000 crore by trading carbon credits from its Tilaiya ultra mega power project (UMPP) in Jharkhand in the first ten years of its operations.
In a statement issued here, it said the Tilaiya project had got approval for carbon credits from the United Nations Framework Convention on Climate Change (UNFCCC).
The Clean Development Mechanism Executive Board (CDM-EB) of the UNFCCC allows the Tilaiya project — to be commissioned during the XII Plan — to earn Certified Emission Reductions (CERs). The CERs can be traded and sold and translate into direct revenues for companies such as Reliance Power. The Tilaiya project will generate 21.3 million carbon credits during the initial ten years and they are valued at over Rs.2,000 crore, the statement says.
Jharkhand Integrated Power Ltd., the special purpose vehicle for the Tilaiya project, has entered into a 25-year power purchase agreement with off-takers for its entire capacity.
The project would supply power to 18 off-takers in ten 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).