LAHORE: Water and Power Development Authority Chairman Shakil Durrani has said that WAPDA is undertaking Clean Development Mechanism (CDM) study of its various hydropower projects all over the country through consultancy firms dealing in carbon credits.
He was speaking after the signing of the first contract with a joint venture of Carbon Services and Factor AG for four hydropower projects at the WAPDA House here on Saturday.
The contract was signed by WAPDA’s General Manager (Hydro) Planning Zia-ul-Hassan and Carbon Services Director Omar M Malik. The ceremony was also attended by WAPDA chairman, members of the authority and other senior managers.
Pakistan signed the Kyoto Protocol in 2005 and is eligible for carbon credits to develop the CDM under the said protocol.
The agreement is part of WAPDA’s well-established carbon trading strategy, which aims to register all such projects. This will enable WAPDA to earn income from carbon credits from its hydropower projects, which will be utilised to offset the high cost of constructing these projects.
The four projects for which the contract was signed included Jinnah hydropower of 96 megawatts which will generate around 688 GWh of hydel power each year, earning 330,240 carbon credits annually. Allai Khwar hydropower is a 121MW project which will generate around 463 GWh of hydel power each year, earning 222,240 carbon credits annually.
Duber Khwar hydropower project has a capacity of 130MW which will generate around 595 GWh of hydel power each year, earning 285,600 carbon credits annually. Golen Gol hydropower project has a capacity of 106MW and will generate around 436 GWh of hydel power each year, earning 209,280 carbon credits annually.
The present market price of carbon credits will generate an annual income stream of $3 to S5 million per project for WAPDA, which will be used for offsetting the high cost of constructing power projects. This income may increase in future if the market price of carbon credits rises.
The CDM is a project-based mechanism which was developed under the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC). One of the main objectives of this market-based approach is to assist countries, not included in Annex-I of the UNFCCC, in achieving sustainable development through income generation from Carbon Emission Reductions (CERs) or carbon credits, which can be en cashed by trading with European buyers of CERs, who utilise the CERs to retire green house gas reduction obligations under the Kyoto Protocol.
Source: The News