Clean Development Mechanism :

This proposed bagasse based power plant and the distillery incineration plant will go through the validation process for the registration under Clean Development Mechanism (CDM).

Projects that reduce GHG can claim for benefits under UN legislation – Kyoto Protocol.

• In order for a project to qualify it must generate renewable electricity
• Biomass based power is renewable (non GHG emitting)
• Benefits proportional to amount of electricity supplied to grid
• Electricity supplied displaces existing grid based power.
  

Majority of displaced electricity is fossil fuel based (coal) with high GHG and NOx /SOx and ash impacts