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Sri Lanka has taken various measures to implement Ole United Nations Framework Conventionon Climate Change within the country. Clean development mechanism (CDM) provides aframework for participation of developing countries in mitigating climatic effects. In CDM, adeveloped country will implement and finance a project that reduces or mitigates greenhouse gas(carbon dioxide) emissions in a developing country, for which the developed country partywould get Certified Emission Reductions (CERs), certifying the emissions reduced from theCDM project. Such a CDM project would help the developing country in achieving itssustainable development goals, and the country can a lso profit by selling any carbon avoided bythe CDM project to the developed country party In Sri Lanka, power sector is a potential sector for CDM, due to high carbon emissionsassociated with thermal power generation. Since Sri Lanka has almost reached its maximumhydropower potential, the country needs to consider having more thermal and renewable energyoptions in the power sector. One potential, relatively cheap renewable option is dendrothermalpower generation. Power generation using biomass collected from energy plantations could beconsidered as a suitable renewable option, especially in remote areas, where power supply fromthe national grid is not easy. Such energy plantations can be successfully grown and maintainedby the communities in rural Sri Lanka, and it has a high potential as a means of povertyeradication and employment generation in those areas. Energy plantations also improve soilquality and nutrient cycling within the ecosystem. Dendrothermal power generation is considered carbon neutral, as carbon emitted during powergeneration is absorbed by the energy plantations in photosynthesis. If a certain percentage of theplanned thermal power (coal) generation in future e-m be replaced with dendrothermal powergeneration, the country can profit by selling the avoided carbon in shifting to dendrothermalpower. Therefore dendrothermal power generation satisfies the criteria relevant to CDM. Thisstudy economically analyses the feasibility of havir ..g off-grid dendrothermal power generationas a potential CDM option, while evaluating socio-economic and other benefits associated withit. The study showed that the unit cost of dendrothermal power generation (US cts. 4.68) is slightlyhigher than that of coal (US cts. 4.34), but the country can significantly profit if the avoidedcarbon is sold at a reasonable price. Hence the study clearly shows that dendrothermal powergeneration is a viable option for CDM.

OFF-GRID, COMMUNITY-BASED DENDROTHERMAl POWER GENERATION A ViABLE OPTION FOR CLEAN DEVELOPMENT MECHANISM