User Comments

1. 

   10/22/08

   pocketcultures

   Hi. How CDM works is that you get credits for the amount of emissions your facility avoids. So you are right in saying that the more power your utility generates, the more credits it will get, provided the following conditions are met:
   1. you are engaged in clean generation
   2. by selling / using the clean electricity you generate, you avoid that electricity being generated by other dirtier methods (dirty means more emissions)
   
   If you are registering a power generation facility for CDM then I assume its capacity is relatively small. Then the amount of carbon credits you get probably depends more on your capacity than local demand. As long as you find enough demand to sell (or use) all the electricity you generate, you will get the maximum credits possible.
   
   The credits are sold on an international market, and the price depends on demand and supply. I think there are some restrictions on where you can sell credits (I'm not sure on this, but maybe something like credits generated in Asia can only be sold in Asia). So fewer credits available (and more demand for credits from companies who have to buy them) equates to higher price. However this applies to the whole market where the credits are traded ie just because there is little availability in your area doesn't mean high prices if a lot of credits produced somewhere else are sold on the same market.
   
   There are also international broker companies who will buy your credits off you and find a buyer for them.

   [reply]
   1. 

      11/17/08

      islanddweller

      So if the power utility uses their excess power to energize another project, for example on a mass transport system with zero emission, would the project be entitled again to another credit aside from the credit they get from power generation?