The Clean Development Mechanism (CDM) under the Kyoto Protocol to United Nations Framework Convention on Climate Change (UNFCCC) provides an opportunity for the Indian power sector to earn revenue through the reduction of greenhouse gas emissions (GHG),
particularly carbon dioxide (CO2). India has tremendous potential for CDM projects. Power generation based on higher efficiency technologies such as supercritical technology, integrated
gasification combined cycle, and renovation and modernisation of old thermal power plants, co-generation along with renewable energy sources are some of potential candidates for CDM in the power sector. Energy efficiency and conservation projects also present themselves as eligible CDM projects, as these would also result in energy savings and displace associated CO2 emissions which otherwise would be produced by grid-connected power stations. The purpose of this guide is to provide a ready reference to the underlying calculations and assumptions used in the CO2 database and to summarise the key results.