Energetic Barra Grande SA (BAESA) is auctioning carbon credits under the Verified Carbon Standard or VCS.
BAESA generates electricity in Rio Grande do Sul state, Brazil.
The auction will take place Nov. 7 through a digital trading platform, with 492,647 verified carbon units (VCU) available at a maximum price of US$1 and a minimum purchase of 10,000.
The credits come from BAESA’s 708-MW Barra Grande Energy Project, a hydroelectric project in Rio Pelotas. The powerhouse contains three turbine-generator units. Barra Grande has a small reservoir, with low environmental impact related to its installed capacity, VCS says.
The project reduces emissions of greenhouse gases as it provides energy from renewable sources to the National Interconnected System, according to a press release. Barra Grande provides enough electricity to supply 20% of the total energy consumed in Rio Grande do Sul.
Each VCU is an intangible good equal to 1 tonne of carbon dioxide equivalent “reduced or hijacked” as a function of a project mitigation or reduction of greenhouse gases, BAES says. The VCU is a credit of the voluntary market (i.e. outside the scope of the Kyoto Protocol).
BAESA says this will be the largest voluntary credit action ever held in Brazil.
Several other hydro projects worldwide are eligible to earn carbon credits. One example is the 1,250-MW Enguri hydropower plant in Georgia, which has been registered under the Clean Development Mechanism of the Kyoto Protocol since 2013.
Additionally, earlier this week, Canadian Prime Minister Justin Trudeau announced that a federal system would be in place in 2019 to put a price on carbon pollution.
On the topic of climate change and hydropower, a session on this topic will be presented at the upcoming POWER-GEN International event as part of the Hydropower Trends and Innovations track. Click here for more information.