Clean Development Mechanism

Presentation By

Chairman & Managing Director

Rajasthan Renewable Energy Corporation

 Introduction

Clean Development Mechanism(CDM) is a

unique instrument based on understanding
and cooperation among the nations for
adopting a new outlook for economic
activities aiming at protecting the world
eco-system.
 Green House Gases

 Accumulation of Carbon Dioxide (CO2),

Chloro Floro Carbons (CFC), Methane
(CH4) & Nitrous Oxide (NOx) in the
atmosphere cover the Green House Gases
(GHG)

 GHGs are accumulated in the atmosphere

due to combustion of fossil fuels like coal,
oil and natural gases etc.
 Kyoto Protocol

 Industrialization since 18th century, generation of

Green House Gases has resulted in progressive
global warming.
 Kyoto Protocol drafted at Kyoto, in 1992 to
combat global climate change .
 Joint implementation (Developed Countries)
 Clean Development Mechanism (Developing
Countries)
 International Emission Trading (Emission
Credit through special market)
 Sustainable Development
 This calls for balanced outlook between the pace
of economic development & environmental
conservation & discourages activities that could
hurt the Environment.
 Development that meets the needs of the present
without compromising the ability of future
generations to meet their own needs.
 The primary objective of sustainable development
is to reduce the absolute poverty of the world’s
poor through providing lasting & secure
livelihoods that minimise resources depletion,
environmental degradation, natural disruption &
social instability.
 CDM Objectives

 To assist developing countries in achieving

sustainable development & in contributing to
ultimate objectives of United Nations Framework
Convention on Climate Change (UNFCCC )

 To assist developing countries in achieving

compliance with their qualified emission limit &
reduction commitments.
 Eligibility Criterion

 Social well being

 Economic well being

 Environmental well being

 Technological well being

 Indian Scenario
 Formation of an Advisory Group on Climate
Change under Ministry of Environment and Forest
(MoEF) which is the nodal agency on climate
change issue in India.
 Energy Sector is main CO2 emitter accounting
for 87% of CO2 emissions.
 Biomass burning and agriculture sector main
source of NOx emission.
 GHG emission in India is 3% of the world.
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 Because of high potential of GHG reduction, India

can avail new opportunity through CDM projects.

 India can capture 10% of Global CDM mark.

 Annual revenue estimated range from US$ 10

million to 330 million
 Benefits from Estimated Emission Reduction
from the Renewable Energy Projects
Type of Project Tones of CO2/ Monetized ER 5MW project for
MW/Year benefits/MW/Year the crediting
period of 7 years
Biomass
(90% PLF) 7,000 Rs. 14 lacs Rs. 10 Crores
(50% PLF) 3,850 Rs. 7.70 lacs Rs. 5.5 Crores
Small Hydel 3,000 Rs. 6 lacs Rs. 2 Crores)
(35% PLF)
Solar 10 per solar Rs. 2,000 per Project
(Thermal) thermal solar thermal specific
pump (3 HP) pump (3HP) per
per year year
Wind Farm 1,750 Rs. 3.5 lacs Rs. 1 Crore
(20% PLF)
 CDM Options
Projects prioritised for CDM
 Coal power plant using IGCC (Integrated
Gasification Combined Cycle)
 Coal Power Plant using PFBC (Pressurised Fluidised
Bed Combustion)
 Renovation and Modernization of Power Plants
 Wind based power generation
 Solar Thermal Energy for Power generation
 Underground Coal gasification technology projects
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 Wind Pumps for agriculture

 Direct reduction process in the iron & steel

industry

 Continuous pulp digesters in the pulp & paper

industry

 Demand side management by efficient motors

 Barriers
 Clear methodologies yet to be defined.
 Procedures and process still to be finalised.
 Others barriers perceived by many countries are
Lack of awareness
 Financial barriers due to present low and
uncertain returns
 Technology barriers
 Institutional barriers
 Infrastructure limitations
 High transaction cost
 Small-Scale Projects

 The following categories of projects qualify for

fast-track approval procedure
Renewable Energy projects with minimum
output capacity equivalent up to 15 MW
Energy efficiency improvements which reduce
energy consumption on supply or demand side
by up to 15 Gwh/yr
Other project activities that both reduce emission
and directly emit less than 15kt of CO2 annually.
 Horizon for Renewables

 Multi technology development programmes

initiated by GOI define best options for GHG
emission reductions.
 MNES suggested for a study and development of
overall methodology for Renewable Energy
Project under CDM.
 Wind, Solar, Hydel & Biomass Projects suggested
to be brought under positive list of CDM.
 Development in Rajasthan
(RREC Activities)
RREC has taken up work of propagation of SPV based
technology in the state by organising installation of
SPV system as under :
Decentralized Systems:
 SPV Home Lighting System

 SPV Street Lighting System

 SPV Pumping System

 Centralized Systems:
 Remote village electrification through SPV
stand alone Power Plants
 Grid Interactive SPV Power Plants
 SPV Decentralised Systems:

S. System Achieveme Total PV Energy

No. nts (Nos.) capacity Produced so
(MW) far
(Units)
1 HLS 60864 2.25 66.48 lacs
2 SLS 2135 0.15 5.37 lacs
3 Pumps 116 0.11 10.28 lacs
Total 2.51 82.13 lacs
 Grid Interactive Solar Power Units
SPV Centralized Systems
S. System Total PV Year of Energy
No. capacity Installation Produced so
(KW) far
(Units)

1 Govt. 25 2001 0.89 lacs

Secretariats

2 Vidhan Sabha 25 2001 0.88 lacs

3 Gorir, Jhunjhunu 100 2004 0.06 lacs

Total 150 1.83 lacs

 SPV Centralized Systems

Remote Village Electrification

Work of 48 villages has been completed and of 40

other villages in progress.
 Wind Energy Based Systems

Wind Projects : 253 MW Capacity (3808 lac units)

Sanctioned Projects 320 MW
Installed Projects 253 MW
Projects in Pipeline 67 MW
Investment in the state Rs. 1200 Crore
Electricity produced 2003-04 141 M. Units
Electricity produced 2004-05 240 M. Units
Reduction in carbon emission 332500 Tons
 Biomass Energy Based Systems
 Biomass Based Power Projects in Rajasthan
Rajasthan State has immense potential in form of
Juli-flora (Vilayati Babool), Mustard husk, Rice-
husk and other agriculture residues for the
biomass fuel.
Based on the biomass fuel, power project of IPPs,
totalling to 113 MW have been registered with
RREC.
Out of this, 7.8 MW (7 MW net) proejct of M/s.
Kalptaru Power Transmission Ltd. have been
comissioned at Padampur, Sri Ganganagar
District on 15th July, 2003.
 Future plans for SPV Systems

RREC plan to propagate SPV based systems in the

state to achieve targets of systems during coming
years as under :-

Year SPV Home SPV Street SPV

lighting Lighting pumping
systems System systems
2004-05 15000 100 50

2005-06 20000 100 100

2006-07 25000 100 200

 Future Projection for Biomass Energy

7.5 MW power project of M/s. Chambal Power Ltd., is

expected to be commissioned at village Rangpur, Kota
in March, 2005.

Other power projects are in Pipeline and are expected to

be commissioned in March, 2006.
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 Village Energy Security Through Biomass
 MNES, GOI, has launched a National Programme on
Village Energy Security through Biomass.
 The Programme aims at meeting energy requirements of a
village through locally available biomass resources with
full participation of the local community.
 The programme will provide quantum jump to rural
economy and contribute to growth with equity and
employment generation.
 Under the programme, RREC has identified 19 locations to
implement the test projects.
 The location selected are un-electrified remote villages /
hamlets of the electrified villages which would not be
electrified by conventional means upto 2012.
 Future projection towards ULG projects

Rajasthan has large reserves of lignite

Till now 3173 million MT Geological reserve of
Lignite have been assessed in Barmer, Bikaner, Nagaur
& Jaisalmer District.
The deposits so far assessed in Rajasthan have
potential to generate 2500 MW power from shall on
deposits (through CBM technique) and more than 15000
MW from deep seated lignite (through ULG process)
sustainable for more than 100 years.
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RREC has selected a site in village Bharka-Bothiya
in Barmer District and applied for prospecting licence
to Mines & Mineral Deptt., GoR for exploration of
Petroleum Product and setting up of Power Project
based on syn Gas
The cost of power generation would be very less in
compare to other forthcoming power projects based on
Coal, Natural Gas etc.
Green House Gases would be reduced to a great
extent and as such, this would be a qualified candidate
for CDM project.
 ISCC Mathania
 Capacity - 155 MW
o CC Block - 125 MW
o Solar Block - 30 MW
 Out put
o CC Block - 853 GWh
o Solar Block - 63 GWh
 CO2 Abatement
o Solar Portion - 65100 Tons/a
o Total abatement of

CO2 in plant life - 13.96 Million Tons

 Cost of the project - Rs. 822 Crore
 Cost of power produced- Rs. 2.64 per/kwh (LEC)
Thank You