"The Krishnapatnam UMPP has been registered with Clean Development Mechanism Executive Board (CDM-EB) of United Nations Framework Convention on Climate Change (UNFCCC)," Reliance Power said in a statement.
CDM registration allows Reliance Power's Krishnapatnam UMPP to earn Certified Emission Reductions (CERs), each equivalent to one tonne of CO2.
These CERs can be traded and sold, and will result in significant revenues for Reliance Power, the statement said.
The project will generate 12.3 million carbon credits during the ten-year period. Value of carbon credits from the project is estimated at Rs.1,100 crore during the initial ten-year period.
The company's Sasan and Krishnapatnam projects are registered with CDM-EB. The value of carbon credits for Reliance Power from both these projects is estimated at over Rs.3,000 crore during the initial ten-year period of operations.
Coastal Andhra Power Limited, the special purpose vehicle for Krishnapatnam UMPP, has entered into a 25-year power purchase agreement (PPA) with off-takers of power for its entire capacity at a competitive tariff of Rs.2.33 per unit.
The estimated project cost is about Rs.17,400 crore, it added.