My factory in an SEZ or industrial park buys power from the park developer. Which emission factor applies?

For location-based Scope 2, use the CEA grid factor, 0.710 kg CO2 per kWh, when the park's network draws from the state grid. For market-based Scope 2, use the developer's supplier-specific factor if it can show the fuel and units of its own plant; otherwise the grid factor stays your best figure.

Why the developer counts as your supplier

Under a proviso to section 14(b) of the Electricity Act, 2003, added for SEZs in 2010, the developer of a notified SEZ is a deemed distribution licensee, though it still applies to the state commission to be recognised. Many private parks also run their own distribution network. Either way, the kWh on the developer's invoice is electricity you buy, so it is your Scope 2, just as if it came from the discom. The developer's own generator emissions are its Scope 1, not yours.

Find out where the park's power comes from

• Bought from the state grid or exchange and resold: location-based uses the CEA grid factor. Market-based also uses it unless the developer holds renewable certificates or green power for your share.
• Generated by the developer's own plant, such as a gas engine or coal unit: ask for fuel burnt and units delivered in the year, and work out a supplier-specific factor.
• A mix of both: weight each source by the units it supplied.
• Backup DG power billed by the developer: ask for litres of diesel per kWh supplied, or treat it as a separate supplier-specific line.

What to ask the developer for

1. Units bought from the grid and units generated in-house in the year.
2. Fuel type and quantity burnt in the park plant.
3. Units delivered to tenants after losses.
4. Any renewable certificates or green power contracts and whether any are assigned to your unit.

Which figure to report

Report both methods. Location-based keeps the CEA grid factor so your figure is comparable with other Indian sites. Market-based uses the developer's supplier-specific factor when it is backed by the data above; if the developer cannot give it, use the grid factor and say so in your methodology note.

Illustrative example: a park with its own gas plant

• Developer's plant: 1,000,000 scm PNG x 2.05 = 2,050,000 kg CO2 in the month
• Units delivered to tenants: 4,200,000 kWh, so 2,050,000 / 4,200,000 = 0.488 kg CO2 per kWh
• Your unit uses 50,000 kWh: market-based 50,000 x 0.488 = 24,400 kg CO2
• Location-based: 50,000 x 0.710 = 35,500 kg CO2

Quantities are illustrative. A coal-fired park plant can give a supplier-specific factor above the grid figure.

What Senseible does here

Senseible reads the kWh on your developer's invoice and applies the CEA grid factor for location-based Scope 2. For market-based Scope 2, it needs the supplier-specific or instrument data from the developer.

• Sub-metered electricity in a rented unit
• Market vs location-based Scope 2
• Open access green power on your bill
• Grid electricity factor for India

Sources: GHG Protocol Scope 2 Guidance, Chapter 6, supplier-specific emission factors, CEA CO2 Baseline Database, Electricity Act, 2003, section 14(b) proviso on SEZ developers as deemed distribution licensees, Ministry of Power

Last reviewed 2026-10-18.