CDM (CLEAN DEVELOPMENT MECHANISM)   We are in the process of securing benefits from our hydropower projects under the clean development mechanism (“CDM”) scheme pursuant to the United Nations Framework Convention on Climate Change (UNFCCC) of 1994.  Under this scheme, an industrialized country that wishes to get credits from a CDM project must obtain the consent of the developing country hosting the project that the project will contribute to sustainable development.  Then, using methodologies approved by the CDM Executive Board, the applicant must make the case that the carbon project would not have happened absent such benefits, and must establish a baseline estimating the future emissions in absence of the registered project.  The case is then validated by a third party agency, called a Designated Operational Entity, to ensure the project results in real, measurable and long term emission reductions.   Hydropower projects registered by the CDM Executive Board are eligible to earn CER credits.  CER credits can be sold to industrialized countries that are required to meet their green house gas emission reduction targets under the terms of the Kyoto Protocol Treaty of 2005.   NHPC have actively considered Clean Development Mechanism (CDM) benefits for its hydro power projects. First time in NHPC as well as in Power Sector PSUs history, two medium sized hydroelectric projects namely Nimoo Bazgo(45 MW) and Chutak(44 MW) located in Jammu & Kashmir state have been registered by CDM Executive Board of United Nation Framework Convention on Climate Change (UNFCCC) at its 46th Executive Board meeting. Nimoo Bazgo and Chutak projects shall annually reduce emissions of approximately 187,893 metric tonne CO2 equivalent and 166,831 metric tonne CO2 equivalent respectively after their commissioning. We anticipate that annual Certified Emmission Reduction (“CER”) revenue to be generated from the Nimoo Bazgo and Chutak projects is Rs 9.394 crore, and Rs 8.341 crore respectively over a period of seven years which shall be renewed for another two term of seven years each.   We are pursuing CDM registration for additional projects and are investigating other carbon trading initiatives for our projects, such as Voluntary Emission Reduction.

Computational Fluid Dynamics: Diverse Applications in Hydro Power     Solving equations for fluid flow exactly is almost always impossible, except in some special cases. CFD is a technique for solving the equations that govern fluid flow. In this technique the equations of fluid flow have to be discretized, which means that the domain of interest has to be subdivided into very small elements.   Fluid flow in CFD can be described using the principles of conservation of mass, momentum & energy, therefore 3D-simulation of flow and mass transfer in complex geometries can also be carried out.   CFD analysis has been successfully utilized to provide considerable design support for advance hydropower design. The use of this tool allowed engineers to provide early input to critical design issues, and to refine hydraulic design to a level normally achieved only through the undertaking of physical model studies. The CFD model can also be used to provide insight into any planned physical models, allowing designers to streamline testing program by reducing the number of options to be evaluated.   CFD software is used to compute Simulation of Design Applications like Penstock, Spillway design, Simulation of three dimensional flow patterns in the project’s Surge shaft, HRT, & tailrace area; Refinement of cofferdam layouts; Refinement of Power house intake design. Advantages of CFD are as under:   ·         Directs focus of experimental work ·         Software tool to replace or support experimental work ·         Cheaper and faster than physical model experiments ·         Accelerates prototyping ·         Correct representation of the geometric model ·         Shorter design cycles and scale-up ·         Quick testing of new ideas ·         Facilitates trouble-shooting.   Computational Fluid Dynamic (CFD) Lab in Corporate office, Faridabad of NHPC has been successfully established in December, 2008 to analyze the flow pattern in the water conductor system.  CFD analysis of penstock of Baira-Siul and Loktak Power Stations have been planned to be carried out during  2009-10.