Electricity is a basic part of nature and one of the most far and wide used secondary forms of energy as well. The today’s modern life and economy is almost unmanageable without electricity. As on 31.12.2021, India has 3,93,389 MW total installed power generation capacity. 70% of India’s electricity generation comes from thermal power plants and 85% of the thermal power generation is coal based. The coal based thermal power plants by coal combustion release the greenhouse gases (GHG), such as Carbon dioxide (CO2) and nitrous oxide (N2O), Sulfur dioxides and chlorofluorocarbons (CFCs) during combustion. The coal-fired power plants by 2018 were the single largest CO2 emission contributor and as a result of an increase of 2.9% compared with 2017. Coal based thermal plants accounted for 30% of global CO2 emission and resultant climate change. A study shows region wise specific coal consumption during the period 2001 to 2009 is range from 0.7 to 0.78 Kg/KWH.
Arunachal Pradesh has vast Hydropower potential of more than 55,000 MW (identified so far) for development and its energy is green energy. The Department of Hydropower Development (DHPD) has been credited so far with 135 micro, mini and small Hydropower plants of 81.07 MW installed capacity across the state of Arunachal Pradesh. These hydropower plants are run-of-river plants, where water storage involvement is nil and unlike; methane and carbon dioxide emission level during 1-2 years of operation in case of storage projects. However, in 2019, a case study by the environmental defence fund shows that hydropower plants are carbon sinks through photosynthesis by organisms living in the stored water. The total energy generated by state-owned 135 plants is 74.88 million units annually and this green energy has carbon credits equivalent to 54,410 Carbon credits annually. The 74.88 x 106 units of electric energy are equal to 58.41 x 103 tons of carbon. In terms of Carbon credits trading at present market rate, Arunachal can earn approximately Rs. 1.15 crore annually based on state-owned micro/mini/small hydropower plants presently.
Under leaps & bounds initiative and guidance of P S Lokhande, Commissioner DHPD and Chowna Mein, Deputy Chief Minister, Carbon Credits Registration and Carbon Assets Management (Carbon credits trading) for Hydropower Plants of DHPD have been accomplished.
Out of total hydropower plants, 98 micro, mini and small hydropower plants comprising 50.295 MW installed have been considered for carbon credits registration, and assets management for the year, 2014-2020.The carbon credits calculated since 2014 to 2020 from the state-owned micro, mini and small hydropower plants across the state is 250.65 MU and carbon credits on trading at present market rate, the revenue earned would be Rs 4.83 crore till 2020.
Background
A carbon credit is a right to emit a measured amount of GHG, in other words, it is a certification for business and individuals owning the GHG emitters to counterbalance the emission of GHG into the atmosphere. In 1997, the Kyoto Protocol in Japan, being an international treaty extended by the United Nations framework convention on Climate change, was signed by more than 160 countries. Under the treaty, Carbon is tracked and traded like other commodities. Carbon trading is a process of buying and selling credits that allow the permit holder to emit carbon dioxide. Carbon emission, as a result of industrial activities is capped and limited, within the emission limit; the carbon can be traded by way of selling and buying in India’s Multi Commodity Exchange. Any country that exceeds the carbon emission limit can buy (Trade) carbon credits from the country with less emission. The credit cost according to an estimation of June, 2021 is $34.99 (Rs 2,519) per carbon credit (1 carbon credit = 1 ton of less emission) in the Multi Commodity Exchange. The Multi Commodity Exchange (Market) is expected to be the world’s biggest commodity market to be a trillion-dollar industry soon. As per the statistical data; Brazil, China and India are the major Carbon Credit sellers being developing countries.
The combustion of 1 Kg of coal produces 2.42 Kg of carbon dioxide as per a report of 19th October, 2020. The carbon emission can be minimized to a considerable extent as per the Kyoto Protocol with the replacement of green energy.
In COP26 Climate change summit in Glasgow, Scotland on 1st November, 2021 India has committed to develop 500 GW (Giga-watts) Green Energy by 2030 and its 50% energy requirement target will be met-up by Renewable Energy with a total target of 1 billion Carbon Sink. And by 2070, India has committed to net Zero target Carbon emission. The entire world is moving towards carbon sinks as per the summit, and the state of Arunachal is likewise contributing in the carbon sink undertaking, by considering 50 micro and mini hydropower projects under Golden Jubilee border village illumination program in phased manner. In the first phase, 17 micro and mini hydropower projects with installed capacity of 1255.00 KW are being developed starting from this financial year 2021-22. (A contribution from Chief Engineer, WZ, GoAP)