- March 27, 2018
- Posted by: Gihan Gunasekara
- Category: News & Events
Lower Kotmale Mini Hydro Power Project, an entity operating under the Clean Development Mechanism (CDM), which is also a wholly-owned subsidiary of Vidullanka PLC, has decided to transfer 23,917 Certified Emission Reductions (CERs aka Carbon Credits) to Ceylon Tea Services PLC.
Under this noteworthy act, 23,917 of CERs will be voluntarily cancelled to make all tea products of Ceylon Tea Services PLC carbon neutral as quantified by Climate Smart Initiatives Ltd. and verified by the Sri Lanka Climate Fund for the 2016/17 financial year. This feat is an active contribution to the fight against global climate change. Furthermore, this partnership also paves way to save the dollar outflow of the country.
CDM is a methodology defined as per the Kyoto Protocol, which enables the emission reduction projects to obtain the CERs to trade under emission trading schemes. This allows the carbon emitters to set off their emissions by purchasing CERs from those who reduce the carbon from the atmosphere.
The CDM certification and trading mechanism acts as an additional source of revenue to the green economic activities and encourage enterprises and entrepreneurs to invest more on ventures which reduce the carbon emission and fight climate change.
Lower Kotmale Mini Hydro Power Project is a 4 MW project that is owned and operated by Lower Kotmale Oya Hydro Power Ltd., which is a wholly-owned subsidiary of Vidullanka PLC. The project generates and supplies 13.1GWh of electricity annually using the flow of Kotmale Oya.
Vidullanka PLC a pioneer of the mini hydro power industry is among the first of its kind to specialise in the design and construction of mini hydro-power projects and commissioned its first plant in 2001. For the past 20 years, the company’s capacity has steadily grown and presently stands at 26.65MW, with a total energy supply of 107.54GWh to the national grid.