Cut in power distribution losses can earn carbon credits: PC Mem

New Delhi, Aug 31 (UNI) India can play a major role in fighting climate change and earning carbon credits by reducing losses in power distribution, thus cutting the need for generation which means reduced emission of greenhouse gases responsible for global warming.

Making the above observation at a conference here, Planning Commission Member B K Chaturvedi said here that a provision haD been made for Rs three lakh investment in the power distribution sector in the 11th Five-Year Plan.

He said the country can cope with energy deficit primarily in two ways, firstly by changing the mix of energy thus reducing CO2 and GHG emissions and secondly by enhancement in the distribution sector.

Pointing out that the power distribution losses amounted to Rs 40,000 crore per annum, he said, ''By reducing these losses, we would reduce the need for generation of energy and in the process, cut on our carbon emissions, and this by-product can be used as Clean Development Mechanism(CDM) for carbon trade.'' Mr Chaturvedi was speaking as a chief guest at conference on 'Clean Development Mechanism Opportunities in Power Distribution' organised by the ICF International.

While underlining the potential of CDM projects in distribution, Mr Chaturvedi said there were some difficulties of monitoring and deciding the benchmark.

Picking up further from Chaturvedi, Central Electricity Authority(CEA) member V S Verma said the immense opportunities in power distribution faced the problem of how to monitor and verify carbon credits, and secondly they come as an afterthought in the planning.

India has demonstrated a strong capability in delivering carbon reductions. Of the approximately 763 projects registered with the United Nations Framework Convention on Climate Change, close to 35 per cent were Indian projects. As of now, however, virtually no CDM projects are registered in the distribution sector.

However, he said, ''It is now good to find that focus has now shifted to distribution than generation in reducing carbon emissions.'' Inaugurating the conference, Deputy High Commissioner of UK to India Creon Butler said the CDM has to play a vital role in delivering the resources to stabilise greenhouse gas emissions on a global basis.

''More than 100 CDM projects in India have been approved and more are expected, especially in the power sector where the potential is considerable,'' he said.

Mr Butler said the cost of fighting climate change was definitely high but the cost of harm to be brought about by climate change was higher.

He said there was huge opportunity for India to take advantage in the global carbon market which was to the tune of 30 billion US dollar per annum.

CDM is a flexible market-based mechanism under the Kyoto Protocol that serves the dual purpose of helping countries meet greenhouse gas (GHG) emission reduction targets while achieving sustainable development.

Project developers receive carbon credit for projects that reduce GHG emissions that can then be sold in international carbon markets, providing an additional revenue source.

The conference was held yesterday by ICF International, an energy consultancy firm, in association with the Central Electricity Authority and with the support of the British High Commission. More than 100 utility participants, regulators and key CDM market players attended with the purpose of bringing India to the forefront on the issue.

UNI