Comparative Study of SHP in Various States Upto 2010

CONTENTS
Page No Glossary & Abbreviations Combined Summary of State Government Policies for Development of Power through Renewable Energy Sources (a) (b) (c) (d) Small Hydro Power Plants Wind Electric Generators Solar Generation Plants Biomass/ Bagasse Power Projects 1 29 31 44 53 64 77
Summary of State Government Policies for Development of Power through Renewable Energy Sources Order-wise ANDHRA PRADESH (i) (ii) New Wind Power Policy Dated: 11-04-2008 and Amendment Dated: 09-09-2008 Guidelines for establishment of Mini Hydel Power Projects along Vagus and Streams Order Dated: 11-07-2007
79 81
ARUNACHAL PRADESH Small Hydro Power Policy- 2007 Dated 24 01- 08 & Amendment Dated 13-10- 08 ASSAM Policy for Development of Small Hydropower (SHP) 2007 BIHAR Policy Guidelines for Developing Non-Conventional Energy Sources CHHATTISGARH (i) (ii) (iii) Policy Directives on Incentives to Units Generating Power from Non-Conventional Energy Sources. Policy Directives on Allotments of Sites and Incentives to Small Hydel Projects up to 25 MW. Wind Energy Policy 95 97 99 93 89 84
GUJARAT (i) (ii) (iii) Incentive Scheme for Bagasse Based Co-generation Solar Power Policy 2009 Wind Power Policy-2007 and Wind Power Policy (First Amendment) -2007 101 102 104
HARYANA Policy for Promoting Generation of Electricity through Renewable Energy Sources HIMACHAL PRADESH (i) (ii) Small Hydro Power Policy 2006 and Amendments (up to 5.0 MW) Hydro Power Policy 2006 and Amendments (above 5 MW ) 109 116 106
JAMMU & KASHMIR Policy for the Development of Small Hydro Power Dated: 09-10-2003 KARNATAKA Karnataka Renewable Energy Policy 2009-14 KERALA (i) (ii) (iii) (iv) Renewable Energy Policy Guidelines for Development of Wind Farms in Private Land Guideline for the development of Hydel Scheme by Private Sector Captive Power Projects Guideline for the Development of Hydel Scheme by Private Sector on BOOT basis by IPP 129 131 135 138 125 122
MADHYA PRADESH (i) (ii) Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources Incentive Policy for the Development of Small Hydro Power Projects in Madhya Pradesh, 2006 141 144
MAHARASHTRA (i) (ii) New Policy for Power Generation from Non - Conventional Source of Energy-2008 State Hydel Policy for Development of Small Hydro Power Projects 152 155
MANIPUR Policy on Renewable Sources for Promotion of Generation Additional Power through NonConventional Energy Sources MEGHALAYA Policy for Promoting Generation of Power through Non-conventional Energy Source MIZORAM Power Policy for Power through Non-Conventional Energy Sources ORISSA Policy Guidelines on Power Generation from Non-Conventional Energy Sources PUNJAB New and Renewable Source of Energy (NRSE) Policy- 2006) 169 166 164 162 160
RAJASTHAN (i) (ii) (iii) Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources 2004 and Amendments Policy for Promotion of Electricity Generation from Wind, 2003 Policy for Promoting Generation of Electricity from Biomass, 2010 172 179 182
TAMIL NADU Wind Energy TRIPURA Draft Policy for Promoting Generation of Electricity through New & Renewable Energy Sources UTTARAKHAND (i) (ii) Policy for Promoting Generation of Electricity through Renewable Energy Sources with Private Sector & Community Participation Policy on Hydro Power Development by Private Sector (up to 25 MW) 194 197 190 188
UTTAR PRADESH Policy Guidelines for Development of Small Hydro Power Projects up to 25 MW Capacity in UP WEST BENGAL Policy on Mini/ Micro Hydro Electric Power Station up to 3 MW 202 200
GLOSSARY & ABBREVIATIONS
GLOSSARY & ABBREVIATIONS

CONTANING DEFINITIONS & EXPANSION OF ABBREVIATIONS
ABT Act / EA AFC Area of Supply ALDC AMC ATE / AT Appropriate Commission
Availability Based Tariff Electricity Act -2003 (EA- 2003) Annual Fixed Charge/ Annual Fixed Cost The Area within which a Distribution Licensee is Authorized to Supply Electricity Area Load Dispatch Centre Annual Maintenance Contract Appellate Tribunal for Electricity Means Central Regulatory Commission as per sub-section (I) of section 76 of Act or State Regulatory Commission as per section 82 of the Act Annual Revenue Requirement It is the process under which a generating plant supply power to the grid not with the intention of selling it to either a third party or to a licensee but with the intention of exercising his eligibility to draw back this power from the grid A diversion structure where heading up of water is effected by gates. Power Plant Generating Electricity through Anaerobic Digestion of Wet biomass into Fuel Wastes produced during agricultural and forestry operation energy plantation e.g. Husks, shells. ABT compatible import and export meter on the basis of which energy bills shall be raised by the generating plant Period between two successive meter reading dates Build, Own and Operate Build - Own - Operate - Transfer Build, Own and Transfer Balancing and Settlement Code Compounded Annual Growth Rate A structure designed to secure lowering of the water surface in a canal over a short distance and safe dissipation of the excess hydraulic energy. End user of the Electricity Generated in a Captive Generating Plant Competitive Bidding Guidelines Conduct of Business Regulations Contract Demand Clean Development Mechanism
ARR Banking of Power
Barrage Bio-Gas Plant Bio Mass Bill Meter Billing Month BOO BOOT BOT BSC CAGR Canal Fall
Captive User CBG CBR CD CDM
4 CEA CEO CERC CER CFA Check Meter
Compendium of State Government Policies on Renewable Energy Sector in India
Central Electricity Authority Chief Executive Officer Central Electricity Regulatory Commission Certified Emission Reduction Central Finance Assistance ABT compatible import and export meter for performing a check on the accuracy of the bill meter Micro Projects - upto 100 kW Mini Projects - Above 100 kW and upto 5 MW Small Projects - Above 5 MW and upto 25 MW
Classification of SHP
COD COG COS Co-generation Conventional Hydro Power Projects CPI CPPs CPSU CSP CSR CTU CUF C- WET Date of Commissioning DER Developer Distribution Licensee Distribution System DPR DISCOM DSI EAR
Commercial Operation Date Cost of Generation Cost of Supply The process in which more than one form of energy (such as steam and electricity) are produced in a sequential manner. Hydro Power Projects above 25 MW Consumer Price Index Captive Power Plants Central Power Sector Units Concentrated Solar Power Corporate Social Responsibility Central Transmission Utility Capacity Utilization Factor Centre for Wind Energy Technology Date on which supply of energy is commercially commenced by the generating plant Debt-Equity Ratio Entity which develops the projects A licensee authorized to operate and maintain a distribution system for supply of electricity to the consumers in his area of supply The portion of an electric system that is dedicated to delivering electric energy to end users. Detailed Project Report Distribution Company Detailed Survey Investigations Energy Audit Report
EBA ED Energy Account Month EHV Energy Consumption EMD EPC contract EPA EOI EWA Export Meter FIs Firm Power
Energy Banking Agreement Electricity Duty Period from the date of meter reading in previous month to date of meter reading in following month Extra High Voltage Useful energy input that is supplied by the fuel ( normally bagasse or other such biomass fuel) Earnest Money Deposit Engineering, Procurement and Construction Contract Energy Purchase Agreement Expression of Interest Energy Wheeling Agreement Bill meter installed at the grid substation Financial Institutions Quantum of Energy which a supplier is obliged to delivered as scheduled in the given period. The technologies which can supply power on firm basis e.g. Bio Mass, Bagasse etc. Year starting on 1st April of Calendar year and ending on 31st March of next calendar year. Forum of Regulators Financial Year Generation Based Incentive A machine that converts mechanical energy into electrical energy. Gross Fixed Asset(s) Green House Gas Government of Assam Government of India Government of Jammu & Kashmir Means high voltage backbone system of interconnecting transmission lines, substations and generating plants Means the grid code specified by CERC/SERC Power Projects Injecting Power in to the Grid Power maintaining reliability & stability of Power supply as Grid supply Means the solar thermal power plant that uses other forms of energy Input sources along with solar thermal energy for electricity generation, and wherein not less than 75% of electricity is generated from solar energy component. High Tension
Financial Year FOR FY GBI Generator GFA GHG GOA GOI GOJK Grid Grid Code Grid Mode Grid Quality Power Hybrid Solar Thermal Power Plant
HT
6 Hz IA IC ICB IDC IEGC Import Meter
Grid Frequency Implementation Agreement Installed Capacity International Competitive Bidding Interest During Construction Indian Electricity Grid Code Bill Meter Installed at the Grid Substation of STU Interface point of renewable energy generating facility with the transmission system or distribution system, as the case may be. Facilities which include without limitation switching equipment, control, protection and metering devices etc. Means energy supplied over and above the firm power, which is interruptible on a very short notice. The internal rate of return is the discount rate at which the sum of periodic benefits (revenues minus operating and maintenance costs) is equal to the present value of the initial investment. A body interested in investing in a project Independent Power Producers Indian Renewable Energy Development Agency Internal Rate of Return Project without Grid Connection Interest on Working Capital Indian Wind Power Association Kilo Calories Kilo Gram Kilo Watt-hour Kilo Volt Kilo Volt- Ampere Reactive power in Kilo Volt Ampere. Letter of Allotment Letter of Intent Person granted licensee under section 14 of the Act. Letter of Credit Load Dispatch Centre Letter of Comfort on Transmission Letter of Permission Long Run Marginal Cost
Inter-connection Point Inter-connection Facilities Infirm Power Internal Rate of Return (IRR)
Investor IPPs IREDA IRR Isolation Mode IWC IWPA K Cal. Kg KWh kV KVA KVARH LoA LoI Licensee LC LDC LCT LoP LRMC
LTPLR MAT MCR MMC MNRE MkCal MPPs MoA MOU MOP MSW MW MU MYT NEP NGHR NGO Non-Firm Power
Long Term Prime Lending Rate Minimum Alternate Tax Maximum Continuous Rating Monthly Minimum Charges Ministry of New and Renewable Energy Million Kilo Calories Merchant Power Producers Memorandum of Agreement Memorandum of Understanding Ministry of Power Municipal Solid Waste Mega Watt Million Unit Multi Year Tariff National Electricity Policy Normative Gross Heat Rate Non-Government Organization The power from Renewable Sources which can not be scheduled e.g. Wind and Small Hydro. Non Firm Power is dependent on natural phenomenon like sun, cloud, wind etc., that cannot be predicted Network Operator No Objection Certificate Net Present Value Open Access Non-discriminatory provision for use of transmission lines/distribution system / associated facilities with such lines or system by any licensee /consumer/ person engaged in generation in accordance with the regulations specified by the appropriate commission Operation and Maintenance Profit after Tax Power Evacuation Agreement Power Factor Pre-feasibility Report Primary Lending Rate Power Purchase Agreement/ Power Supply Agreement Means a Generating Station or the Evacuation System upto InterConnection Point.
NO NOC NPV OA Open Access
O&M PAT PEA PF PFR PLR PPA/PSA Project
8 PT PV
Potential Transformer Photovoltaic Percentage share of purchase of electricity from renewable sources as specified in the regulations. The rate of return on investment is the ratio of annual benefits (net of annual cost) as a percentage of the original Renewable Energy Sources Renewable Energy Certificate The portion of power that is produced by load inductances or capacitances. Sources of energy used to produce electricity such as Small Hydro, Wind, Solar, Biomass, Bagasse based co-generation, Urban/Municipal Waste. Means the grid quality energy/power generated from renewable energy sources Power plants other than the conventional power plants generating grid quality electricity from renewable energy sources Renewable sources such as Small Hydro, Wind, Solar including its integration with Combined Cycle, Biomass, Bio fuel cogeneration, urban/municipal waste and other such sources as approved by the MNRE Renewable Energy Obligation Regional Load Dispatch Centre Return on Equity Run of the River Plant without storage reservoirs where water is used at the rate at which it "runs" in the river. Renewable Purchase Specification Royalty paid by SHP to the Government on the Water used in the Project Renewable Purchase Obligation Rupees per Kilo Watt hour Rupees per Million Kilo Calories Repair and Maintenance Renewable Portfolio Standard Standard Bidding Document Scheduled of Generation in MW or MU ex-bus given by the State Load Dispatch Centre for any period. System Coordination and Techno-Economic Clearance
Quantum of Purchase Rate of Return RES REC Reactive Power Renewable Sources
Renewable Energy/ Power Renewable Energy Power Plants Renewable Energy Sources
REO RLDC ROE ROR Run-of- river Plant RPS Royalty on Water RPO Rs./kWh Rs./ M k Cal. R&M RPS SBD Scheduled Generation SC & TEC
Self Identified Project SERC SFC Small Aero generator (Mini-wind mills)
Developers to Identify Projects State Electricity Regulation Commission Specific Fuel Consumption It is a stand alone generator which can be used to produce electricity for captive purposes. Can be installed where wind speed is more than 15 kmph. It consists of smaller capacity in wind electric generator, (up to 30 kW) a tower, a battery bank with an inverter and electronic control system. Small Hydro Plant (Electricity Generating Station) Hydro Power Station with an installed capacity up-to and including 25 MW State Load Dispatch Centre Straight - Line Method Storage Projects Sub- State Load Dispatch Centre Solar Power Generator Special Purpose Vehicle The solar photo voltaic (PV) power project that uses sunlight for direct conversion into electricity through photo voltaic technology. The solar thermal power project that uses sunlight for direct conversion into electricity through concentrated solar power technology based on either line focus or pointy focus principle. The direct sun light is concentrated several times to reach higher energy densities and thus higher temperatures whereby the heat generated is used to operate a conventional cycle to generated electricity. Legal entity owning, operating and maintaining a generating station with no other business or activity to be engaged in by the legal entity State or Sponsored Agencies to identify projects State Technical Committee State Transmission Utility Facility equipment that switches, changes, or regulates electric voltage. The substation capacities are given in kVA (kilovolt-amperes). In relation to Electricity, means the sale of Electricity to licensee or Consumer Area holding power transformers and related switchgear, circuit breakers etc. The channel located between a hydroelectric powerhouse and the river into which the water is discharged after passing through the turbines. Transmission and Distribution
SHP Small Hydro Plant SLDC SLM SP SSLDC SPG SPV Solar PV Power Solar Thermal Power (ST)
Special Purpose Vehicle State Identified Projects STC STU Substation Substation capacity Supply Switchyard Tail race
T&D
10 TEC TEFR TL TOD TP TPC TPH TPS
Tecno-Economic-Clearance Techno-Economic Feasibility Report Transformation Loss Time of Day Tariff Policy Third Party Consumers Tonnes Per Hour Thermal Power Station The charges payable by renewable energy sources for the use of transmission system A Licensee authorized to established or operate transmission lines Purchase of electricity for resale there of United Nation's Framework Convention for Climate Change Unscheduled Interchange Useful heat (steam) that is provided to the process by the cogeneration facility Value Added Tax Wind Energy Association Wind Energy Generator. A machine/device, which converts kinetic energy of wind into electrical energy with proven technology Operation whereby distribution system and associated facilities of transmission licensee /distribution licensee are used by another person on payment basis to be determined under section 62 of Electricity Act 2003 Cluster of WEGs elected by a single developer and generating electricity from wind Wind Power Developer/ Wind Power Density Wholesale Price Index Wind Turbine Generators Means a financial year
Transmission Charges Transmission Licensee Trading UNFCCC UI Useful thermal output VAT WEA WEG Wheeling Charges
Wind Farm WPD WPI WTGs Year
COMBINED SUMMARY OF STATE POLICIES
COMBINED SUMMARY OF STATE POLICIES FOR SMALL HYDRO POWER PROJECTS

Sl. No 1 Name of State/ Description Order Date Andhra Pradesh G.O.Ms No. 165 11.07.2007- for Mini Hydel Projects 2 Eligible Producer Arunachal Pradesh Assam Bihar (From RE Policy of State)
dated No: PWRS/HPD/W- 1305/2005/ Notification No.PEL. 196/2002/ dated 24th January, 2008 and 199 dated March 2007 No: PWRS/W-1305/2005/ Pt-I dated 13th Oct. 08 Local entrepreneurs with sole proprietorship /NGOs/ Co-operative Societies / JV concerns Consortium with one partner to be Arunachalee. Any registered company from outside the State with differentiation in free power, upfront money and processing fee with that of local entrepreneurs Any Industry, Institution, Private Agency, Partnership Firm, Consortia, Panchayat, Co-Operative or Registered Society
Land Allotment
Land shall be acquired and Land to be allotted / sold at Government land, if available leased to the developer premium / lease, case wise and on lease, otherwise private against payment of land shall form part of bid document. purchase. revenue as per relevant tariff of the State Government (SG). Lease till BOOT period.
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Operative Period Sale of Power and Tariff
50 years
Thirty five years from the date 5 Years with immediate effect of award
ASEB/Successor Co/HT State grid/ BSEB/third party/HT To SG at 10 paise lower tariff as consumer up to 5 MW/local Consumer of BSEB/Pvt. per CERC/ SERC or for sale grid/any consumer outside the Consumer outside the State State Wheeling rate as determined by Wheeling charges as decided by On BSEB T&D system as per the SERC/State. agreed terms with Developer AERC Not allowed without prior Banking facility within fixed period of 6 months permission of SG
Wheeling
Banking
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Sl. No 8
Name of State/ Description Water Royalty
Andhra Pradesh Percentage generated of energy
Arunachal Pradesh
Assam
Bihar (From RE policy of State)
For project up to 5 MW No Developer to give price equivalent to 10% of the power royalty if sold in Assam. generated to the SG in lieu of Above 5 MW @ Rs.0.25 per the water rights/ cess. unit.
For power project on irrigation canal fall/ barrages / dams, a water cess @ Rs. 0.05 /kWh / year 9 Power Evacuation and Grid Interfacing Evacuation facilities at developers cost Developer to bear the cost of transmission network from the project to the point of sale ASEB/ GENCO to provide evacuation facilities at charges to be mutually agreed. Cost of transmission lines in excess of 5 km to be borne by the IPPs/user society and ASEB/ GENCO on mutually agreed terms and conditions 10 Incentives and General SG to allow 50% share of No entry tax on power Carbon Credit under CDM. generation & transmission equipments for projects. Indigenous tribal Developer exempted from supplying free power to the SG for projects up to 5 MW capacity. Incentives/concessions as applicable to new Industrial units/backward areas. Concessions to industrial units in backward areas applicable to the projects in backward areas. Developer to bear cost for evacuation of power to the nearest State/BSEB grid/substation.

Sl. No 1 Name of State/ Description Order Date Chhattisgarh Haryana (From RE policy of State) Himachal Pradesh Up to 5 MW Himachal Pradesh Above 5 MW
Notification No. 131/DoE/2002 GoH, Renewable Energy Deptt. Dated 23-11-2005 dated 29.08.2002
Eligible Producer
Generally Private investors. Companies, Cooperatives, Partnerships, Local Self CREDA/CSEB may also Governments, State Nodal install. Agency, Boards & Corporations, Power utilities, Private developers, Public Private Partnership Companies, Consortia, Registered Societies, NGOs, individuals etc. Award of land by State Govt. State Govt. to acquire land if necessary at the cost of IPP.
SHP up to 2 MW reserved for Himachalis / and Cooperative Societies comprising Himachalis. Up to 5 MW, preference to Himachalis. Any Private Investor / PSU/ Co-operative Societies comprising Himachalis Govt. to acquire land for permanent structures Land for other purposes on lease basis on Govt. approved rates.
Any Private Investor /Cooperative Society comprising of the bonafide Himachalis. Not more than 2 projects to IPP
Land Allotment
Operative Period
Up to 28.08.2010
Date of notification till a new 40 years after which the Project to revert to the State policy is notified Government free of cost To Licensee/Utilities at HERC tariff Surplus power from captive power/Co-generation to utilities at negotiated price. HPSEB to purchase power @ Rs. 2.50 per unit Third party sale within the State allowed where cost of generation is above Rs. 2.50 per unit For captive use at a fee of 2% (including losses) For sale / captive use of power out side state 1% of energy received (including losses) Developer free to dispose off merchant power Govt. of HP/HPSEB to have right of first refusal on sale.
Sale of Power and Tariff
CSEB to buy surplus power @ Rs. 2.25 per unit after captive consumption or sale to third party
Wheeling
Wheeling charges to be fixed Licensee / Utilities to transmit by CSEB. power on its grid, and make it available to the producer for captive use or for third Party sale within the State as per approved tariff / surcharge, notified by HERC
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Sl. No 7
Name of State/ Description Banking
Chhattisgarh
Haryana (From RE policy of State) To be allowed by HVPNL/ DHBVN/ UHBVN/ for a period of one year free of cost. If the banked energy is not utilized within 12 months no charges shall be paid inlieu of this power.
Himachal Pradesh Up To 5 MW Allowed
Himachal Pradesh Above 5 MW
Water Royalty
Payable to SG at prescribed rates
Allowed to use the water for power generation through micro/ mini/ small hydel plants. No royalty on water used for power generation for nonconsumptive use.
No royalty up to 5 MW for 12 Free power @ 12% for 12 years, 12% for next 18 years years, 18% for next 18 years and beyond at 18% for sale and thereafter 30% within the state
Power Evacuation and Grid Interfacing
Upto 2 km by Developer After 2 Km to be shared equally between developer and CSEB (upto 5 km.) Laying of the transmission lines by CSEB.
Cost of power evacuation up to Cost to be borne by Developer HVPN / UHBVN, DHBVN network to be borne by the Developer.
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Incentives and General
No electricity duty payable All new projects to be treated as for 5 years Industry in terms of Industrial Policy, 2005 and all the CREDA may cancel the incentives available to new allotment of site in case of projects to be applicable as per non execution of Project this Policy. within time limit set by it
As per MNRE/HP Govt. For new projects Upfront premium exempted for projects up to 2 MW Above 2 MW and up to 5 MW - Rs.45,000/- per MW with ceiling of Rs.75,000/-
As per MNRE/HP Govt. Incentives for commissioning early

Sl. No 1 2 Name of State/ Description Order Date Eligible Producer J&K Karnataka (From RE policy of State) Kerala (Captive Plant) Kerala (IPP)
Or. No. 211-PDD of 2003 No. EN 354 NCE 2008 Bangalore, G.O. (MS) No.5/2006/PD dated G.O. (MS) No.5/2006/PD dated 17-03-2006 Dated 19th January, 2010 17-03-2006 dated. 09.10.2003
Independent Power Producer (IPP) to bid for identified projects. Private land at their cost Govt. land at lease for 40 Yrs Government to provide land to Karnataka Renewable Energy Development Limited for sublease to Developer After 30 years the project stands transferred to Government Farmers to be equity partners of not less than 5% of gross energy generated
Who intends to set CPP for its Company or body corporate or own consumption within the State association or body of individual or artificial judicial Preference to HT/EHT person industrial consumers
Land Allotment
Operative Period
Forty years from date of award Up to 2014 & then revert back to GOJK / extension on mutually agreed terms
BOOT period -30 years from BOOT period -30 years from scheduled date of allotment scheduled date of allotment
HT consumer/Local grids/ State Government is committed KSEB have first right to KSEB to purchase energy generated by IPP at the bid purchase excess power over (J&KPDD) main grid/Consumer to procure RE power & reserves first right of refusal of Purchase rates. the captive consumption at a outside of Power tariff approved by KSERC If KSEB does not purchase power, Commis Otherwise CPP is allowed to sion to permit open access sell to third party No wheeling charges for sale 5% wheeling charges to J&KPDD /Local Grid Allowed for 2 months Allowed for energy banked with KPTCL/Distribution licensee No water cess Surcharge , transmission & wheeling charges as decided by KSREC
Wheeling
7 8
Banking Water Royalty
Exempted for first 15 years To be determined by the After 15 years, 12% of net Government energy wheeled minus wheeling charges.
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Sl. No 9
Name of State/ Description Power Evacuation and Grid Interfacing
J&K
Karnataka (From RE policy of State) KPTCL to provide transmission lines and developers to bear the cost of lines from the project site to the sub-stations as per grid norms
Kerala (Captive Plant)
Kerala (IPP)
IPPs to lay lines for connectivity to the nearest grid substation normally at 132 kV or 33 kV
Developer to construct & Developer to construct & maintain the transmission maintain the transmission facilities up to KSEB/ STU facilities up to KSEB/ STU grid at its own cost grid at its own cost Developer to bear the cost Modification/ up- gradation of any modification/ upof sub station of KSEB to gradation of sub station of be at the cost of developer. KSEB/ STU which draws power from the project
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Micro projects exempted from Income Tax No entry tax on power generation, transmission equipment and building material for projects. SHP to be treated as an industry and incentives available accordingly
Incentives allowed by Developer to pay all taxes, Installed capacity of single MNRE/Government of India Hydro Electric Project to be duties and other levies limited to 25 MW to be passed on to the Project to be made developer through KREDL Allotment of project to be operational within 36 months based on two stage bidding. Generation of electricity from from the date of financial Bidder to quote Premium RE sources to be treated as closure , failure to result in per MW payable upfront industry and incentives cancellation of allotment of Criterion for selection to be available to industrial units site and forfeiture of upfront the lowest levelised tariff extended to RE projects. premium & CPP to pay rate for sale of electricity for penalty the entire BOOT period. Developer to pay all taxes, Project not transferable duties and other levies other than take over by Govt. Project to be made If developer leaves project operational within 36 months from the date of incomplete, Government financial closure , failure to reserves the right to take result in cancellation of over the project with out allotment of site and compensation forfeiture of upfront On completion of BOOT premium & IPP to pay liquidity damages as per period, the entire project Implementation agreement components including transmission system to During implementation transfer of ownership stand transferred to Govt. in permitted, subject to proper working condition, approval of Government. free of cost & encumbrances On completion of BOOT Any tail race scheme dam period, the entire project toe and other regulated components including flows are open only to transmission system to stand KSEB/ successor entities. transferred to Govt. in proper working condition free of cost & encumbrances.

Sl. No 1 2 Name of State/ Description Order Date Eligible Producer Madhya Pradesh Maharashtra Manipur (From RE policy of State) Meghalaya (From RE policy of State)
No. PVT-1204/(160/2004)/ H P No.1/1/2005- S& (Misc) dated 12-09-2006 Dated: 15th September 2005
All Power producers generating Grid-grade electricity with installed capacity not exceeding 25 MW SHP (up to 25 MW) to be installed by MANIREDA either by direct implementation or through producers Producers generating electricity for captive consumption Companies, Co-operative, partnerships, Village Development Board/ Village Authorities, individuals etc.
Power producing entrepreneur. Companies, cooperative, partnership individuals etc. Power producers with capacity less than 10 kW and more than 25 MW not eligible. Power producers captive consumption for
Land Allotment
Govt. land on lease rent @ Rs.1/ kW of installed capacity/year, Premium and lease rent @ other wise private land at of Rs.1 per year developer cost Private land to be acquired by Govt. at developers cost Govt. land on lease Forest land as per Forest Act
4 5
Date of notification till revised Date of publication till revised 100% IPP Surplus Power of CPP to any consumer/ Distribution companies / Power Trading Co. (PTC) To any consumer of Maharashtra / distribution licensee or power trading company. Maharashtra DISCOM to have first right of refusal.
Date of publication superseded or modified
till
Minimum Rs.2.25/- per unit By DISCOMS at SERC tariff. to be increased every year for 10 operational years. Thereafter the rate of increase to be mutually settled between Power Deptt. and developer.
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Sl. No
Name of State/ Description
Madhya Pradesh State Distribution Co/ SPTC to have first right of refusal for purchase of Power
Maharashtra
Manipur (From RE policy of State) PPA for 20 years unless Developer wants shorter period
Meghalaya (From RE policy of State)
Wheeling
Wheeling and transmission charges for sale of power to Third Party Consumers / Distribution Licensee / Power Trading Company Subsidy @ 4% towards wheeling charges within the State
Wheeling and transmission losses as per MERC
Wheeling charges @ 2% of the energy fed to the grid.
As applicable
Banking
Allowed 100% of energy every financial year on payment of 2% of banked energy.
As per MERC
Allowed up to 1 year
Water Royalty
At the rate of Rs.0.05 per unit of energy generated quarterly to be escalated by 5% (compounded) every year. Cost to be borne by Developer Developer to bear the cost of transmission lines to destination of his use.
Not exceeding 10% of the tariff for electricity consumers
Charges as admissible.
Developer to bear the cost of Evacuation facilities and Grid interfacing including maintenance to nearest HT line Power Department to undertake augmentation of the sub-station capacity at 33/11 kV or higher transmission line levels at its cost to receive the power generated.
Developer to bear the entire cost.
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No electricity cess SHPs to be treated as Industry and eligible for incentives Power for captive use or third party sale exempted from Electricity Duty
CPPs exempted from Electricity Duty on self consumption for first five years CPPs exempted from tax on Sale of Electricity for consumption in Maharashtra.
Exemption from electricity duty for 5 years from COD for captive use or sale to a third party. Producers to be treated as industrial units and similar incentives available to them
Infrastructural facilities to be provided on the lines of industrial estates. Consumption of electricity for captive use or sale to third party exempted from electricity duty for 5 years.
Sl. No
Madhya Pradesh Carbon Credit/any such incentive No entry tax for 5 years on plant and machinery 50% incentive of free power to developers for early COD IPPs free to change option to CPP & vice versa with approval of WRD / NVDA Transfer of Project allowed with approval
Maharashtra Incentives for commissioning early
Manipur (From RE policy of State) Concession given to Industrial units in backward areas to be provided Infrastructural facilities to be provided on the lines to other industrial units if plant is set up in industrial area developed by State Govt.
Meghalaya (From RE policy of State) Eligible for Sales Tax/ VAT deferment/ remission.
IPPs / CPPs free to change their entity Transfer of allotment with approval of SG
GoI Incentives for RE promotion Exemption of tax on RE devices and spare parts. Sale Tax exempted Allowed to use water for power generation, wherever possible.
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Sl. No 1 Name of State/ Description Order Date Mizoram (From RE policy of State) Orissa (From RE policy of State) Resolution No. 6971/ST, Bhubaneswar, ST-IV-RE-13/ 2005, dated 3-12-2005 Companies, cooperative, partnerships, individuals, charitable societies, Non-Governmental Organizations etc. Government agencies and the producers. (JV) Power producers captive consumption. 3 Land Allotment for Government land at lease rent of Rs.1/sq. meter / annum for 33 years. Agricultural land without conversion charges 4 Operative Period From date of publication in the official gazette till superseeded or modified. SG to purchase at a minimum rate of Rs. 3.50/unit for 200203 with escalation of 5% every year for 10 years. 10 years Five years w.e.f. December, 2006. 8th Any Public Sector, Private Entrepreneur, Registered NGOs, Cooperatives, Consortia etc. Punjab (From RE policy of State) No.10/106/2006-STE(1)5390 dated 24th Nov, 2006. Tripura (From RE policy of State)
Eligible Producer
Companies, cooperative, partnerships, individuals, charitable societies, Non-Governmental Organizations etc. Government agencies and the producers (JV) Power producers for captive consumption. Government Land on lease. Private Land on payment Forest Land as per the Forest Conservation Act Date of notification superseded or modified till
To the bulk suppliers/ distribution licensee
Mini/ Micro Hydel project Rs.3.49 per unit (Base year 2006-07) with five annual escalations @ 3% up to 2011-2012. Thereafter PSEB/HT tariff whichever is higher.
Department / TSECL to purchase electricity at TERC tariff Third party sale permitted. PPA for a minimum period of 10 years. Department to consider PPA for shorter period on merit. 2% of the energy supplied to the grid.
Wheeling
Wheeling charges of 2% of the energy supplied to the grid.
Allowed, subject to payment of transmission/ distribution and wheeling charges both for captive use and sale out side the State as approved by OERC
2% of energy fed to the grid
Sl. No
Mizoram (From RE policy of State)
Orissa (From RE policy of State) No transmission charges for CPP or NRSE maintenance for 5 years.
Punjab (From RE policy of State)
Tripura (From RE policy of State)
Banking
Allowed up to one year
Allowed on annual basis. Banking charges - 2.5% of energy despatched.
Allowed.
Banked for one Financial year.
Water Royalty
No royalty
For use of river/ canal water, cess @ one paise per unit
No royalty for initial period of 7 years. Exempted projects. for mini
Developers to bear the entire cost to the nearest HT lines. Cost of augmentation of sub-station capacity at 33/ 11 kV or higher and transmission lines to be borne by the Department
Grid interfacing with the generating units to be constructed by the developer at his own cost
Developers to bear the entire cost to the nearest HT lines. Cost of augmentation of sub-station capacity at 33/ 11 kV or higher and transmission lines to be borne by the Department PEDA to assist in carbon credits. Exemption from electricity duty. VAT @ 4% on manufacturing and sale of NRSE devise system and equipment/machinery. Octroi on energy generation and equipment machinery exempted. Producers to be treated an Industry and similar incentives available to them. Incentives provided by Central Government : as per "North East Industrial and Incentive Promotion Policy (NEIIP), 2007. Renewable Energy equipment and materials exempted from State sales tax / VAT, alternately reimbursed. 100% CDM benefit to developers in first year, 10% to beneficiaries in 2nd year to be increased by 10% every year upto 50% and then shared equally between developer and beneficiary.
10
Consumption of electricity for captive use/sale to third party exempted from electricity duty. Developers to be treated as industrial units for incentives. Concession given to the industrial unit in the backward areas to be provided to Developers. Renewable Energy equipment and materials exempted from State sales tax.
Exempted from electricity duty
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Sl. No 1 2 3 Name of State/ Description Order Date Eligible Producer Land Allotment No acquisition fee and stamp duty for land acquired through State Govt. Govt. land for 30 years lease at fixed rate of Rs.100 per acre 4 5 Operative Period Sale of Power and Tariff Forty years from date of award HT consumer/Local rural grids not connected to UPCL main grid/Rural Power Distribution entities/Outside the state UERC to determine the wheeling charges for third party consumers or sale outside the state No sale of power by the industrial undertaking to any third party. HV/EHV Industrial Consumers for captive HEP up to 3 MW Uttar Pradesh Uttarakhand West Bengal
Wheeling
Wheeling charges of 30 paise / kWh Wheeling of power not allowed to more than one unit of the same industrial undertaking. Allowed for a period of six months beyond which sale at weighted average of the fuel cost of Thermal Generating station of the utility
Banking
Allowed. Developer to bear the difference between average pooled price of banked-in and banked-out energy For use of river/canal water, water royalty to be charged @ 5 paisa/unit sold Exempted first 15 years, Beyond 15 years royalty @ 18% to GOU Sale to other Parties, 12% of net Energy wheeled
Water Royalty
Developers to provide evacuation facilities from project to grid sub-station UPPCL/DISCOMs to bear 50% cost of transmission system
IPPs to lay lines for connectivity to the nearest grid substation normally at 132 kV or 33 kV
Industrial undertaking to lay its own transmission lines and the associated system up to the nearest grid substation of the utility.
Sl. No 10
Name of State/ Description Incentives and General
Uttar Pradesh All necessary facilities SHP in private sector for
Uttarakhand No entry Tax on Generation, Transmission equipment & Building Materials for project Incentives for early commissioning Levies, taxes, charges on IPPs applicable for 10 years Penalty in case Plant not made operational in time limit
West Bengal (From RE policy of State)
Power generation exempted from electricity duty.
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COMBINED SUMMARY OF STATE POLICIES FOR WIND POWER PROJECTS

Sl. No 1 Name of State/ Description Order Date Andhra Pradesh G.O.Ms.No.48 11.04.2008 Amendment 09.09.2008 G.O.Ms.No.19 16.03.1996 2 Eligible Producer dated and dated dated Any Industry, Institution, Private Agency, Partnership Firm, Consortia, Panchayat, CoOperative Or Registered Society Bihar (From RE policy of State) Chhattisgarh Notification No. 1905/2006 dated 7th August , 2006 Gujarat G.R. No. EDA-1020013054-B dated 13th June, 2007 G.R. No. WND-11-20082321-B dated 7.1.09 Any company or body corporate or association of body of individuals, whether incorporated or not, or artificial juridical person for setting up Wind Turbine Generators (WTG), either for captive use and /or for selling of electricity Govt. land on lease WTGs may be set up on private land, or revenue waste land/ Private land to be acquired Gujarat Energy Development by the Govt. and made Agency GEDA land if available available to the party at acquisition cost. From date of publication in the 20th June, 2007 to 30th June, Gazette till revised. 2012. First to State Government / GUVNL/ Distribution Agency at the CSERC rate. licensee to purchase surplus power after captive Otherwise to third party. use Third party sale allowed Rs. 3.50 / unit. w. e. f. 1st April, 2009
Wind Farm Developers, Wind Energy Generator (WEG) manufacturers, Govt. owned Co. Joint Venture Co. and Private Investors. Minimum Turbine Capacity of WEGs to be 225 kW
Land Allotment
Developer to be allocated Government land on lease, Govt. land to harness up to otherwise private purchase. maximum 200 MW Private land from land owner on their own
4 5
5 Years from date of Policy
5 Years with immediate effect
For captive use , third party State grid/ BSEB/third party/HT sale or to DISCOMS Consumer of BSEB/Pvt. Consumer First 10 years from COD Rs.3.10 / unit 11 th to 20 th year APERC as per as
Beyond 20 th year mutually agreed 6 Wheeling
Concessional wheeling and On BSEB transmission and transmission charges in kind @ distribution system as per 5% of energy delivered in to the agreed terms
To consumption site: At 66 kV & above:-
Sl. No
Andhra Pradesh grid (including T&D losses) for captive use or third party sale
Chhattisgarh
Gujarat On payment of transmission charges including losses Below 66 kV:

Transmission and wheeling losses @ 10% of the energy fed to the grid. For only one WTG transmission charges & transmission and wheeling losses @ 7% of the energy fed to the grid. Note: For wheeling to more than 2 locations 5 paise per unit on energy fed to the grid 7 8 Banking Power Evacuation and Grid Interfacing Not allowed Developer to bear entire cost Developer to bear cost for Through CSEB grid on CSERC At 66 kV up to 100 km by the developer and beyond by for interconnection to Grid. evacuation of power to the tariff GETCO nearest State/BSEB grid/substation. Developer to share Carbon Incentives/concessions as Credits with DISCOMS in the applicable to new Industrial ratio of 90% and 10% units/backward areas.
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Sl. No 1 Name of State/ Description Order Date Karnataka (From RE policy of State) Kerala Madhya Pradesh (From RE policy of State) Notification dated 17.10. 2006 & Amendment dated 12.05.2008 and as per MPERC order dated 11.06.2004 & 01.03.2006 Any Industry, Institution or Private unit, a Joint Venture Public sector units. Maharashtra (From RE policy of State) Government Resolution (i) No.APAU(NCE)-2007/ Pra.Kra.693/ Urja-7 dated 14th October 2008 (ii) Amendment dated 03-08-2009
No. EN 354 NCE 2008 GO (MS) No.7/2007/PD dated Bangalore, Dated 19th January, 11-05-2007 & Amendment GO 2010 (Rt.) No. 295/08/PD dated 22.11.2008 KPTCL for allotment of projects Any individual, Company, Body above 500 MW corporate, Partnership firm, Joint venturewhether incorporated or not, Artificial judicial person / Captive generating plant owner Government land for Karnataka Renewable Energy Development Limited (KREDL) Private land from owners Land owner farmers to be equity partners for equity not less than 5% of gross energy generated 10% barren Government land reserved for industrial use to KREDL for RE development KREDL to sub-lease land to developer for 30 years.
Eligible Producer
Land Allotment
Land @ Rs. 1/- year (token The barren land meant for premium) for 30 years or life industrial use on lease for 30 of the Project years. Private land to be acquired by Govt. & made available to Developer at acquisition cost Private land including Agricultural land exempted from Land Ceiling for its acquisition 50% exemption on stamp duty on private land. Land use permission for sites certified by MNES/C-WET 5 years
4 5
5 years up to 2014
To ESCOMs in area where To other buyers if KSEB/ Varying from Rs. 4.03/ kWh in It shall be binding on 1st year to Rs. 3.36 /kWh in 5th Developers to sell 100% of the project is located, at KERC Successor entities refuse electricity generated to year Tariff Licensee or Client in the State. 5% wheeling charges Wheeling charges as per MPERC 4% subsidy on wheeling charges
Wheeling
Sl. No 7
Karnataka (From RE policy of State) Allowed for energy banked with KPTCL/Distribution licensee
Kerala
Madhya Pradesh (From RE policy of State) Allowed 100% MPSEB / Distribution Co. to charge 2% of Banked power as banking charges
Maharashtra (From RE policy of State)
KPCTL to provide transmis- Developer to construct & Cost for Power evacuation Developers to install the sion lines and developers to maintain Evacuation facilities at facilities to be power evacuation facilities borne by bear the cost of lines from the their own cost including modification from Developer project site to the sub-station project site to HV / EHV substation including transmission lines After commissioning, evacuation arrangement to be transferred to MSETC / MSEDCL with ownership and maintenance work 50% of the approved expenses on evacuation arrangement to be reimbursed to Developer as subsidy from Green Energy Fund
KREDL to facilitate availing CDM benefits After the plant completes 11 years, it has to sell power to Energy supply companies on tariff based on variable cost as per KERC norms Developer to commission the project with grid synchronization within 3 years from date of statutory clearance 50% of the installed capacity assigned for captive use
Benefits of Carbon Credit, to be shared equally between STU/ buyer and investor Reactive power charges as per KSERC Taxes, duties and other levies of Central / State Government as per rules.
Carbon credit to Investor Exempted from Entry Tax / Octroi / VAT. Developer to pay @ Rs. 50,000/- / MW as non refundable processing fee along with application One Private party to be allowed to install Wind monitoring mast at 15 locations at a time. If Private Institution is not able to complete the Wind monitoring & start Project within 18 months time from the date of approval, the Energy Department may allot location to another institution for transfer of Project use. Developer to commission the Project in 15 months
MSEDCL to pay through Letter of Credit (LC) to the Developer Cost of opening of LC to be reimbursed from Green Energy Fund (GEF) by MEDA as 100% subsidy 100% refund of Octroi Tax/ Entry Tax for equipments to be made through GEF Promoters/ developers/ investors who do not wish to obtain facilities concessions under this policy, need not take infrastructure clearance from the Government No Electricity duty for first 10 years from COD for captive use/third party sale
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Sl. No 1 Name of State/ Description Order Date Manipur (From RE policy of State) No.1/1/2005- S& (Misc) dated 12-09-2006 producing All Power producers Power entrepreneur. Companies, generating Grid-grade cooperative, partnership electricity with installed individuals etc. capacity not exceeding 25 MW All power producers generating grid-grade Producers generating electricity with installed electricity for captive capacity between 10 kW consumption and 25 MW Companies, Co-operative, partnerships, Village For captive consumption Development Board/ Village Authorities, individuals etc. Companies, cooperative, partnerships, individuals, charitable societies, NonGovernmental Organizations, etc. Producers generating 10 kW to 25 MW of grid-grade Electricity Producers in the joint-sector, formed by Government agencies and the producers. For captive consumption. Land lease not exceeding 99 Government land if available years, From the date of publication till superseded or modified Power Department to DISCOM to purchase electricity purchase electricity at a at SERC rate & on mutually minimum rate of Rs.2.25/- accepted terms and conditions per unit to be increased every year for 10 operational years. Thereafter the rate of increase to be mutually settled between Power Deptt. and developer. PPA for 20 years unless Developer wants shorter period From the date of publication till With immediate effect for 10 superseded or modified years Department to purchase To bulk suppliers/ electricity at a minimum rate distribution licensee on of Rs. 3.50/unit applicable basis of PPA with the for the year 2002-03 with approval of OERC escalation of 5% every year Energy not utilized during for 10 operational years. the year for captive use to Thereafter the rate of be treated as sold to increase to be mutually GRIDCO/ DISTCO. settled between Department and the Producer. It shall not be compulsory for power producer to sell power to Department Meghalaya ( From RE policy of State) Mizoram (From RE policy of State) Orissa ( From RE policy of State) Resolution No. 6971/ST, Bhubaneswar, ST-IV-RE-13/ 2005, dated 3-12-2005 Any Public Sector, Private Entrepreneur, Registered NGOs, Cooperatives, Consortia etc.
Eligible Producer
Land Allotment
4 5
Developers with concurrence of the Department may sell the
Sl. No
Manipur (From RE policy of State)
Mizoram (From RE policy of State) electricity to a third party within and outside the State, at a rate to be mutually settled between them. PPA for minimum period of 10 years unless Developer wants for shorter period
Orissa (From RE policy of State)
Wheeling
Department to transmit on its grid the power generated by producer and make it available to him for captive use or to a third party for sale within the State, at a uniform wheeling charge of 2% of the energy fed to the grid, Third party to be a HT consumer of power.
STU to transmit on its grid the power for captive use of developer or to a third party for sale within the state, at an applicable wheeling charge. Third party to be HT consumer unless condition relaxed by DISCOM.
Department to transmit on its Allowed, subject to grid the power generated payment of transmission/ and make it available to him distribution and wheeling for captive use or to a third charges both for captive party nominated by eligible use and sale out side the producer for sale within the State as approved by State, at a uniform wheeling OERC charge of 2% of the energy Developer may supply supplied to the grid. energy to any one area not Third party to be HT served by the Licensee. consumer unless condition relaxed by DISCOM Allowed up to 1year Allowed on annual basis. Banking charges - 2.5% of energy dispatched
Banking
Allowed up to 1 year
Developer to bear cost for evacuation facilities & interfacing up to the nearest HT lines as well as for Mtc. Alternatively, these works and their maintenance could be undertaken by the Power department at charges to be decided by the Department Cost of augmentation of substation capacity at 33/11 kV or higher & transmission lines to be borne by the Department.
Developer to bear cost for evacuation facilities & interfacing up to the nearest HT lines as well as for Maintenance. Alternatively, these works and their maintenance could be undertaken by the DISCOM at charges to be decided by the DISCOM/ SERC
Developer to bear cost for evacuation facilities & interfacing up to the nearest HT lines as well as for Maintenance Alternatively, the above works and their maintenance could be undertaken by the Department at charges to be decided by the Department and the producer on mutual agreement. Cost of augmentation of sub-station capacity at 33/11 kV or higher & transmission lines to be borne by the Department.
Grid interfacing with the generating units to be constructed by the developer at their own cost. Scheme for inter connection to the nearest substation to be approved by GRIDCO/ DISTCO and shall form the part of DPR.
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Sl. No 9
Mizoram (From RE policy of State)
All transactions involving Infrastructural facilities to be wheeling, banking or sale of on the lines of industrial units power to be settled on if plant is set up in industrial monthly basis area developed by State Govt. Exemption from electricity duty for 5 years from COD for Exemption from electricity captive use or third party sale. duty for 5 years from COD for captive use or third party Producers to be treated as sale. industrial units and similar incentives available to them Sales Tax/ VAT deferment / remission as applicable Concessions given to Industrial units in backward Meghalaya Nonareas to be provided Conventional and Rural Energy Development Infrastructural facilities to be Agency (MNREDA), to on the lines of industrial units facilitate clearances for the if plant is set up in industrial projects at the State and area developed by State Govt. Central levels and grant of loans by Indian Renewal GoI Incentives Energy Development Exemption of tax on RE Authority (IREDA) and devices and spare parts. subsidies by MNRE. Sale Tax exempted Developer to submit MANIREDA to facilitate grant of loans by IREDA & MNRE & accord of clearances for execution If the applicant does not take effective steps (i.e at least 10% of the total project cost not incurred within six months) to implement the project, the agreement to be terminated and site allotted to another applicant
Exemption from electricity Exempted from electricity duty for captive use or third duty party sale No transmission charges Infrastructural facilities to be for CPP or NRSE on the lines of industrial units maintenance for a period if plant is set up in industrial for 5 years from COD area developed by State In the event of project work Govt. not started within a year of Producers to be treated as approval of PPA, the MOU industrial units and similar and PPA will automatically incentives available to them stand cancelled. Concessions given to Industrial units in backward areas to be provided State Government to extend all incentives and facilities granted by the Central Government for similar Undertaking in other States. Equipments and materials exempted from State sales tax
applications for projects and All transactions involving grid interfacing to MNREDA wheeling, banking or sale of and DISCOM. power to be settled on a monthly basis MNREDA/ State government to provide clearance within Reduction in contract a period of 2 months from the demand up to 30% of date of submission of installed capacity permitted, application in case power plant is not utilizing Department's Grid for supply of power to the consumer

Sl. No 1 Name of State/ Description Order Date Punjab (From RE policy of State) Rajasthan Tamilnadu Uttarakhand (From RE policy of State) No.263/I(2)/2008-04(8)-96/ 2001 29th dated Jan, 2008
No.10/106/2006-STE(1)5390 Energy Deptt. letter No.F.20(3) dated 24th Nov, 2006 Energy / 98/Pt.III dated 30.4.2003 Private developers to set up Wind Farm Developers wind power projects on first (WFD), Wind Energy Genecome first served basis on the rator (WEG) manufacturers, basis of wind data assessment Government Owned Comcarried out by them panies, Private companies, Joint Venture Companies and Private investors. Minimum capacity of WEG's to be 225 kW.
Eligible Producer
Land Allotment
Government at lease rent of State Government to provide Rs.1 / sq. m / annum for 33 land for wind farm at 10% of 'District Level Committee (DLC) years rates on first cum first served Agricultural land without basis. conversion charges Five years w.e.f. 8th December, Plants commissioned up to 31st 2006. March, 2009, unless superseded /modified Rs.3.49 per unit (Base year 2006-07) with annual escalation @ 5% up to 20112012 There after PSEB / HT tariff, whichever is higher. For captive consumption or Reasonable power tariff sale to a third party or to RVPN To RVPN/ DISCOMS, at a rate of Rs. 3.32 per unit during 2003-04 plus 2% increase per year for 10 years Thereafter, a fixed rate of Rs. 3.92 per unit up to the 20th year UPCL to have first right of purchase of electricity UERC to determine price of electricity State Government to provide guarantee for payments to be made by UPCL for purchase of power UPCL/PTCUL to transmit the power generated through its grid for captive use or third party sale within/ outside the state Wheeling charges to be announced in advance
Operative Period
Wheeling
10% of the energy fed into the Concessional wheeling charges grid. @5% for captive use
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Sl. No 7
Punjab (From RE policy of State) Allowed.
Rajasthan Allowed in a calendar year Banked energy, not consumed to be treated as sold to RVPN at 60% of the prevailing 'Large Industrial tariff'.
Tamilnadu Allowed subject to 5% charges in a financial year
Uttarakhand (From RE policy of State) Allowed at mutually agreed terms
Developer, to bear the cost for providing the evacuation system including transmission lines. VAT @ 4% on manufacturing & sale of NRSE devise / system and equipment / machinery PEDA to assist in seeking carbon credit under CDM Octroi exempted
Developer to undertake and bear the cost of grid interfacing facilities plus maintenance cost.
Power evacuation arrangements to be provided by Developer. A. MNRE, Govt. of India Accelerated depreciation up to 80% for income tax calculations subject to a minimum utilization for 6 months in the year in which deduction is claimed. Import of wind electric generator permitted under Open General License. Customer duty concessions on wind electric generators and certain essential spares. Tax holiday for 10 years B. Govt. of Tamilnadu To buy surplus energy at Rs. 2.75 per unit from the wind mills commissioned before 15.05.2006 and Rs 2.90 per unit commissioned after 15.05.2006
T&D lines from generation site to be provided by UPCL/ PTCUL CDM Benefits to be passed to the developers Not more than three projects in each category to be allotted to a developer Preference to industrial units located in State in the open competitive bidding process provided the bid is not less than 80% of the highest bid If developer does not restrict to the prescribed time schedule of completion of project, premium to be forfeited and allotment canceled Projects to be offered for 40 years from the date of award Application fee (Nonrefundable) - Rs. 5000/ Processing fee (Non-refundable) - For projects up to 1MW - Rs. 10,000/- and more than 1MW - Rs. 25,000/ Security Payment - For projects up to 1MW - Rs. 20,000/- and more than 1MW- Rs. 50,000/ Committee headed by Chief Secretary to accord approvals/clearances through a single window mechanism
COMBINED SUMMARY OF STATE POLICIES FOR SOLAR POWER PROJECTS

Sl. No 1 Name of State/ Description Order Date Bihar (From RE policy of State) Chhattisgarh (From RE policy of State) Gujarat Haryana (From RE policy of State)
Notification No. 38 dated April 8, Solar Power Policy - 2009 GoH, Renewable Energy G.R.No.SLR-11-2008-2176-B Deptt. Dated 23-11-2005 2002 dated 6th January, 2009 Any Industry, Institution, Private Every unit, organisation or Private agency setting up of Agency, Partnership Firm, RE projects . Consortia, Panchayat, CoOperative Or Registered Parties may set-up units Society either themselves or as a joint venture Any company or body corporate or association of body of individuals, whether incorporated or not, or artificial juidical person, Minimum project capacity of a Solar Power Generators (SPG), in case of solar Photovoltaic (SPV) and Solar Thermal (ST) to be 5 MW each A maximum 500 MW SPG allowed for installation Companies, Cooperatives, Partnerships, Local Self Governments, State Nodal Agency, Boards & Corporations, Power utilities, Private developers, Public Private Partnership Companies, Consortia, Registered Societies, NGOs, individuals etc.
Eligible Producer
Land Allotment
Government land, if available Govt. land, if available, on lease, on lease, otherwise private purchase. Private land to be acquired by the Govt. and made available to the party at acquisition cost. 5 Years with immediate effect Up to 31.3.2014.
State Govt. to acquire land if necessary at the cost of IPP.
Operative Period
Date of notification till a new policy is notified To Licensee/ Utilities at HERC tariff (for new projects after this Policy) Surplus power from captive power to utilities at negotiated price. ( for old projects)
State grid/ BSEB/third party/HT Parties may use the power Open Access for Third part themselves or sell it to a third sale Consumer of BSEB/Pvt. party after permission from Consumer Cross subsidy surcharge GoC, CSEB. not applicable for open CSEB to purchase at rate access for third party sale of Rs. 2.25 per unit. within the state. For third party, the rates to be settled mutually . Energy to be sold to Distribution licensees in the State at levelised fixed tariff for SPV & ST (as detailed in Policy) for 25 years
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Sl. No 6
Name of State/ Description Wheeling
Chhattisgarh (From RE policy of State)
Gujarat
Haryana (From RE policy of State)
On BSEB transmission and On CSEB's transmission / Allowed at a wheeling charges On Licensee / Utilities Grid for of 2% of the energy fed to the captive use or for Third Party distribution system as per distribution system Grid agreed terms with Developer sale within the State as per approved HERC tariff. Allowed for one year free of cost. If the banked energy is not utilized within twelve months, no charges shall be paid in lieu of such power.
Banking
Developer to bear cost for Developer to bear cost for Power by the SPG to be Cost of power evacuation evacuation of Power from up to HVPN/UHBVN, injected at 66 kV. evacuation of power to the plant to nearest grid sub-station DHBVN network to be nearest State/BSEB grid/sub Evacuation facility from the borne by the Developer. station. Lines/equipments to be Solar substation/switch yard maintained by CSEB at to GETCO substation to be Developer's cost. approved & laid by GETCO Incentives/concessions as Incentives / concessions as Developer to pass 50% of the gross benefit of CDM to applicable to new Industrial applicable to new Industrial the distribution licensee units units/backward areas. SPGs installed and Reactive charges to be paid commissioned during this to CSEB for taking reactive period to be eligible for the power from them. incentives, for a period of 25 years from the date of Electricity sold to third party commissioning or for self use exempted Benefits of this policy will not from electricity duty for 5 be available to the projects years set up under MNRE incentive scheme for SPG Any subsidy/incentive received by SPG developers from any source to be reduced from tariff rate except accelerated depreciation under IT Act Exemption from demand cut up to 50% of the installed capacity assigned for captive use Exempted from payment of Electricity duty All new projects to be treated as "Industry" in terms of Industrial Policy , 2005 and all the incentives available to new projects to be applicable as per this Policy.

Sl. No 1 Name of State/ Description Order Date Karnataka (From RE policy of State) Kerala (From RE policy of State) Madhya Pradesh (From RE policy of State) Manipur (From RE policy of State)
No. EN 354 NCE 2008 G.O.(MS) No. 16/2002/Sted Notification dated 17.10. 2006 No.1/1/2005- S& (Misc) dated Bangalore, Dated 19th January, dated 03.04.2002 & Amendment dated 12-09-2006 2010 12.05.2008 KPTCL for allotment of projects Companies, Co-operative, above 100 MW Partnerships, Local Self Governments, registered societies, NGOs, individuals Power producers for captive consumption Any Industry, Institution or Private unit, / Joint Venture Public sector units. Minimum capacity for standalone Solar Photovoltaic Unit up to 5 kW. All Power producers generating Grid-grade electricity with installed capacity not exceeding 25 MW Producers generating electricity for captive consumption Companies, Co-operative, partnerships, Village Development Board/ Village Authorities, individuals etc.
Eligible Producer
Land Allotment
Government land for Karnataka Renewable Energy Development Limited (KREDL) Private land from owners Land owner farmers to be equity partners for equity not less than 5% of gross energy generated 10% barren Government lands reserved for industrial use to KREDL for RE development KREDL to sub-lease land to developer for 30 years.
Land @ Rs. 1/- /year (token premium) for 30 years or life of the Project Private land to be acquired by Govt. & made available to Developer at acquisition cost Private land including Agricultural land exempted from Land Ceiling for its acquisition 50% exemption on stamp duty on private land.
Operative Period
5 years up to 2014
5 Years
From the date publication until superseded or modified
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Sl. No 5
Name of State/ Description Sale of Power and Tariff
Karnataka (From RE policy of State) To ESCOMs in area where Project is located at KERC Tariff of Rs. 3.40 / unit.
Kerala (From RE policy of State)
Madhya Pradesh (From RE policy of State)
PPA for a minimum period of Sale of Power from one Power Department to purcompany to its sister five years. chase electricity at a concern to be deemed as minimum rate of Rs.2.25/ Power purchase by KSEB at captive user of power per unit to be increased every a ceiling rate of Rs.2.80 per year for 10 operational years. unit with 2000-01 as base Power can be utilized by Generator itself or for sale to Thereafter the rate of year and 5% escalation MPSEB or its Successor every year up to 5 years of increase to be mutually Company or to any operation. settled between Power consumer Deptt. and developer. Higher Tariff in special Tariff as per MPERC cases PPA for 20 years unless Developer wants shorter period On KSEB grid for captive use or for banking, at a wheeling charge of 5 % of energy fed into the grid, including transmission loss Wheeling charges as per Department to transmit on MPERC its grid the power generated by producer and 4% subsidy is available make it available to him for captive use or to a third party for sale within the State, at a uniform wheeling charge of 2% of the energy fed to the grid, Third party to be a HT consumer of power.
Wheeling
5% wheeling charges
Banking
Allowed for energy banked with KPTCL/Distribution licensee
Allowed 100% from June to Allowed 100% Allowed up to 1 year February every financial year & from March to June. MPSEB / Distribution Co. to charge 2% of Banked power If the banked energy is not as banking charges. utilized at the end of the year, it can be purchased by KSEB at the average selling rate of KSEB Developer to bear cost for Cost for Power evacuation Developer to bear cost for evacuation facilities & facilities to be borne by evacuation facilities & interfacing including Developer interfacing up to the nearest maintenance. HT lines as well as for Mtc. KSEB to initially bear the Alternatively, these works expenditure for erection of and their maintenance HT sub stations and could be undertaken by the transmission infrastructure. Power department at
KPCTL to provide transmission lines and developers to bear the cost of lines from the project site to the sub-stations as per grid norms
Sl. No
Karnataka (From RE policy of State)
Kerala (From RE policy of State) ANERT to recover 50 per cent of this expenditure from the power project promoters and give it to KSEB.
Manipur (From RE policy of State) charges to be decided by the Department Cost of augmentation of sub-station capacity at 33/ 11 kV or higher & transmission lines to be borne by the Department.
KREDL to facilitate availing CDM MNRE supported solar grid connected projects of 1MW and above have incentive up to Rs 12/kWh for solar PV and Rs. 10/kWh for solar thermal in addition to tariff allowed by KERC. Roof Top grid connected solar kWp projects of 5 kWp to 100 KWp to be connected at 415 V, 3 phase, 11 kV level of distribution licensees with maximum energy injection to be not more than 70% of the consumption from distribution licensee sources After the plant completes 11 years, it has to sell power to Energy supply companies on tariff based on variable cost as per KERC norms Developer to commission the project with grid synchronization within a period of 3 years from the date of statutory clearance 50% of the installed capacity assigned for captive use
Industry status under the schemes administrated by Industries Department and incentives to be made available to them. Large Industries having 2000 kVA and above as connected load, to produce at least 5 per cent of their requirement through captive power plants KSEB to provide facilities of an irrevocable, divisible, revolving and confirmed stand by Letter of Credit (LC) by any Nationalised Bank. The amount of LC to be equal to the Expected Payment for one month by Board. All transactions involving wheeling, banking or sale of power to be settled on a monthly basis.
Carbon credit benefits to Investor Exempted from Entry Tax / Octroi / VAT. The units which do not intend to take benefits under this Policy to be at liberty to set up Project under Electricity Act -2003 Developer to commission the Project in 15 months
All transactions involving wheeling, banking or sale of power to be settled on monthly basis Exemption from electricity duty for 5 years from COD for captive use or third party sale. Producers to be treated as industrial units and similar incentives available to them Concessions given to Industrial units in backward areas to be provided Infrastructural facilities to be on the lines of industrial units if plant is set up in industrial area developed by State Govt. GoI Incentives Exemption of tax on Solar devices and spare parts. Sale Tax exempted MANIREDA to facilitate grant of loans by IREDA & MNRE & accord of clearances for execution If the applicant does not take effective steps (i.e., at least 10% of the total project cost not incurred within six months) to implement the project, the agreement to be terminated and site allotted to another applicant
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Sl. No 1 2 Name of State/ Description Order Date Eligible Producer Power producing Companies, cooperative, partnerships, individuals, entrepreneur. Companies, charitable societies, cooperative, partnership Non-Governmental Organiindividuals etc. zations, etc. All power producers generating grid-grade Producers generating 10 kW to 25 MW of grid-grade electricity with installed Electricity capacity between 10 kW and 25 MW Producers in the joint-sector, formed by Government For captive consumption agencies and the producers. For captive consumption. 3 Land Allotment Land lease not exceeding 99 years, Government land if available Government land at lease rent of Rs.1/sq. meter/ If the applicant does not take annum for 33 years effective step to implement the project within 6 months Agricultural land without from date of obtaining conversion charges possession of land the agreement shall be terminated 8th Resolution No. 6971/ST, Bhubaneswar, ST-IV-RE-13/ 2005, dated 3-12-2005 Any Public Sector, Private Entrepreneur, Registered NGOs, Cooperatives, Consortia etc. Meghalaya (From RE policy of State) Mizoram (From RE policy of State) Orissa (From RE policy of State) Punjab (From RE policy of State) No.10/106/2006-STE(1)5390 dated 24th Nov, 2006.
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years w.e.f. From the date of publication till With immediate effect for 10 Five December, 2006. years superseded or modified
bulk suppliers/ Rs.7.00 per unit (Base year DISCOM to purchase electricity Department to purchase To 2006-07) with annual distribution licensee on electricity at a minimum rate at SERC rate & on mutually escalation @ 5% up to basis of PPA with the of Rs. 3.50/unit applicable accepted terms and conditions 2011-2012 approval of OERC for the year 2002-03 with escalation of 5% every year Energy not utilized during Thereafter PSEB / HT tariff, for 10 operational years. whichever is higher the year for captive use to be treated as sold to Thereafter the rate of GRIDCO/ DISTCO. increase to be mutually settled between Department and the Producer. It shall not be compulsory for
Sl. No
Mizoram (From RE policy of State) power producer to sell power to Department Developers with concurrence of the Department may sell the electricity to a third party within and outside the State, at a rate to be mutually settled between them. PPA for minimum period of 10 years unless Developer wants for shorter period
Wheeling
STU to transmit on its grid the power for captive use of developer or to a third party or sale within the state, at an applicable wheeling charge. Third party to be HT consumer of the power unless relaxed by the DISCOM.
Department to transmit on its Allowed, subject to payment 2% of energy fed to the grid grid the power generated of transmission/ distribution and make it available to him and wheeling charges both for captive use or to a third for captive use and out side party nominated by eligible the State as approved by producer for sale within the OERC State, at a uniform wheeling charge of 2% of the energy Developer may supply energy to any area not supplied to the grid. served by the licensee. Third party to be HT consumer unless condition relaxed by DISCOM Allowed up to 1year Allowed on annual basis. Banking charges 2.5% of energy dispatched Private developer, at its own cost to provide the evacuation system including transmission lines. Allowed.
Banking
Developer to bear cost for evacuation facilities & interfacing up to the nearest HT lines as well as for Maintenance. Alternatively, these works and their maintenance could be undertaken by the DISCOM at charges to be decided by the DISCOM/ SERC
Developer to bear cost for evacuation facilities & interfacing up to the nearest HT lines as well as for Maintenance Alternatively, the above works and their maintenance could be undertaken by the Department at charges to be decided by the Department and the producer on mutual agreement.
Grid interfacing with the generating units to be constructed by the developer at their own cost.
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Mizoram (From RE policy of State) Cost of augmentation of sub-station capacity at 33/ 11 kV or higher & transmission lines to be borne by the Department
Infrastructural facilities to be Exemption from electricity Exempted from electricity VAT @ 4% on duty for captive use or third on the lines of industrial units duty manufacturing & sale of party sale if plant is set up in industrial NRSE devise / system and No transmission charges for area developed by State equipment / machinery Infrastructural facilities to be CPP or NRSE maintenance Govt. on the lines of industrial for a period for 5 years from PEDA to assist in seeking units if plant is set up in Exemption from electricity COD carbon credit under CDM industrial area developed by duty for 5 years from COD for In the event of project work Octroi exempted State Govt. captive use or third party sale. not started within a year of Sales Tax/ VAT deferment / Producers to be treated as approval of PPA, the MOU industrial units and similar remission as applicable and PPA will automatically incentives available to them stand cancelled. Meghalaya NonConventional and Rural Concessions given to Industrial units in backward Energy Development Agency areas to be provided (MNREDA), to facilitate clearances for the projects at State Government to extend the State and Central levels all incentives and facilities and grant of loans by Indian granted by the Central Renewal Energy Government for similar Development Authority Undertaking in other States. (IREDA) and subsidies by MNRE. Equipments and materials exempted from State sales Developer to submit tax applications for projects and grid interfacing to MNREDA All transactions involving and DISCOM. wheeling, banking or sale of power to be settled on a MNREDA/ State government monthly basis to provide clearance within a period of 2 months from the Reduction in contract date of submission of demand up to 30% of application installed capacity permitted, in case power plant is not utilizing Department's Grid for supply of power to the consumer

Sl. No 1 Name of State/ Description Order Date Rajasthan (From RE policy of State) Energy Deptt. letter no. F.20 (4) Energy/ 2004 dated 25.10.2004 and amended vide letters of even nos. dated 10.3.2005, 16.7.05, 18.8.05, 24.2.06, 30-11-06 ,19-1-07, 27/29-3-2008, 15.5.2008, and 10-11-2008. Companies, cooperative, partnerships, individuals, charitable societies, Non-Governmental Organizations etc. Government agencies and the producers (JV) Power producers consumption 3 Land Allotment Government land to be allotted to Power Producer at concessional rates viz, 10% of DLC rates as detailed in policy Private Land to be procured at cost. If any Producer initiates activities on the allotted land without project approval, grid connectivity to be allowed only after payment of an amount @ Rs. 5.00 lacs per MW as penalty amount to RREC 4 5 Operative Period Sale of Power and Tariff Producers may use power for captive consumption or for sale to consumers/ licensees including DISCOMS. Energy to be offered to open access consumer/ DISCOMS/ CPPs within the State After fulfilling RE Obligation developers may sell surplus energy out side the State. Date of its notification till superseded or modified Department / TSECL to purchase UPCL to have first right of purchase electricity at TERC tariff of electricity Third party sale permitted. UERC to determine price of electricity for captive Tripura (From RE policy of State) Uttarakhand (From RE policy of State) No.263/I(2)/2008-04(8)-96/2001 29th dated Jan, 2008
Eligible Producer
Government Land on lease Private Land on payment basis Forest Land as per the Forest Conservation Act
PPA for a minimum period of 10 years. Government of Uttarakhand to Provide guarantee for Payments Department to consider PPA for to be made by UPCL for purchase shorter period on merit. of Power
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Rajasthan (From RE policy of State) Price of power to be sold to consumers / licensees other than DISCOMS as per mutual agreement between seller and the purchaser. For DISCOMS the price of power to be as per RERC order 09-03-2007 & amendment 14-03-2007 Cap on purchase of energy to be as specified by the (RERC)
Tripura (From RE policy of State) Increase of tariff to be mutually settled between Department / TSECL and the producer
Uttarakhand (From RE policy of State)
Wheeling
Except in case of power sold to 2% of the energy supplied to the grid. DISCOMS, Producer to pay wheeling charges @ 10% of the energy billed into the grid inclusive of the T&D losses. In respect of third party sale and / or captive use for which PPAs are signed after March 31, 2007, the transmission, wheeling and other charges shall be as specified by RERC.
UPCL/PTCUL to transmit power through its grid for captive use or third party sale within/ outside the state Wheeling charges to be announced in advance
Banking
Allowed For third party sale / captive use for which PPAs signed after March 31, 2007, the banking to be as specified by RERC.
Banked for one Financial year. Unutilised banked energy will be settled at the rate specified in the PPA.
Allowed at mutually agreed terms
A. Except in case of solar power not exceeding 220 kW the grid interfacing arrangements to be made by Developer/ RVPN/ Discom Interfacing arrangements from the points of generation to the pooling station and further Receiving station to be developed by the Producer at his own cost. Maintenance from Plant to receiving station to be done by developer and O&M from Pooling station to Receiving station by RVPN /Discom to whom it get transferred after completion of interconnection
Developers to bear the entire cost of T&D lines from generation site to be Power evacuation and interfacing provided by UPCL/PTCUL including maintenance to the nearest HT lines. Cost of augmentation of sub-station capacity at 33/11 kV or higher and transmission lines to be borne by the Department
Sl. No
Rajasthan (From RE policy of State) Producer to pay Rs. 2 lac per MW to RVPN/ Discom, for creation of facility for receiving Power. Augmentation of transmission/ distribution systems to evacuate the power from receiving station, to be done by RVPN / Discom B. RVPN/ DISCOM to grant interconnection facility, wherever adequate power evacuation capacity is available, within one month of intimation or COD, whichever is later.
Power projects established for which PPAs have been signed under the Policies -1999, 2000 and 2003 to be governed as per the terms & conditions under the concerned policies provided the power projects gets commissioned before 31st March 2005. Developer to deposit a refundable amount as security deposit of Rs. 5.0 lac per MW. in the form of cash or bank guarantee with RREC, towards completion of the project in the prescribed time frame,
Producers to be treated an Industry CDM Benefits to be passed to the and similar incentives available to them developers Not more than three projects in each Infrastructural facilities to be provided category to be allotted to a developer on the lines of industrial units Preference to be accorded to Sales Tax Exemption industrial units located in State in the open competitive bidding process Incentives provided by Central provided the bid is not less than 80% Government : as per "North East of the highest bid Industrial and Incentive Promotion If developer does not restrict to the Policy (NEIIP), 2007. prescribed time schedule of Solar equipment and materials completion of project, premium to be exempted from State sales tax / VAT forfeited and allotment canceled alternately reimbursed 100% Projects to be offered for 40 years from the date of award, CDM benefit to developers in first year, 10% to beneficiaries in 2nd Application fee (Non-refundable) year to be increased by 10% every Rs. 5000/year upto 50% and then shared Processing fee (Non-refundable) equally between developer and For projects up to 1MW - Rs. 10,000/ beneficiary. - and more than 1MW - Rs. 25,000/ Producer to deposit an amount equal Security Payment - For projects up to 1MW - Rs. 20,000/- and more than to 2.5% of the estimated cost of the 1MW- Rs. 50,000/project as security deposit towards completion of the project within the Committee headed by Chief prescribed time frame. Secretary to accord approvals / clearances through a single window All transactions to be settled on mechanism monthly basis.
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COMBINED SUMMARY OF STATE POLICIES FOR BIOMASS/BAGASSE POWER PROJECTS

Sl. No. 1 2 Name of State/ Description Order Date Eligible Producer Bihar (From RE policy of State) Chhattisgarh (From RE policy of State) Gujarat Haryana (From RE policy of State)
Notification No. 38 dated April 8, Resolution No. PWR-1096- GoH, Renewable Energy 1905-B dated nil 2002 Deptt. Dated 23-11-2005 Any Industry, Institution, Private Every unit, organisation or Private agency Agency, Partnership Firm, Consortia, Panchayat, Co Parties may set-up units Operative Or Registered either themselves or as a JV Society with CREDA. Sugar mill / Promoter / Developer having surplus power available in addition to the captive requirement of the sugar mill Companies, Cooperatives, Partnerships, Local Self Governments, State Nodal Agency, Boards & Corporations, Power utilities, Private developers, Public Private Partnership Companies, Consortia, Registered Societies, NGOs, individuals etc. State Govt. to acquire land if necessary at the cost of IPP.
Land Allotment
Government land on lease, Government land on lease. otherwise private purchase. Private land at acquisition cost. 5 Years with immediate effect State grid/ BSEB/third party/HT Consumer of BSEB/Pvt. Consumer
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Date of notification till a new policy is notified Developer may use the GEB to purchase surplus To Licensee/ Utilities at power themselves at any HERC tariff (for new electricity @ Rs.2.25 per place or sell to a third party. projects after this Policy) kWh with 1994-95 as base year with 5% escalation CSEB to purchase power at Surplus power from captive every year for a period of 10 Rs. 2.25 / unit. power to utilities at years from CoD negotiated price. (for old For third party, the rates to projects) Purchase price for the be settled mutually remaining period to be Meters and equipments to negotiated be installed by Developer at his cost
Wheeling
On BSEB transmission and Wheeling at rates fixed by Wheeling charges @ 2% of the On Licensee / Utilities Grid for distribution system as per CSEB energy fed to the Grid captive use or for Third Party agreed terms sale within the State as per approved HERC tariff. Allowed for one year free of cost.
Banking
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Chhattisgarh (From RE policy of State)
Gujarat
Haryana (From RE policy of State) If the banked energy is not utilized within twelve months, no charges shall be paid in Lieu of such power.
Developer to bear cost for Developer to construct & maintain Evacuation evacuation of power to the facilities at their own cost nearest State/BSEB grid/substation. These lines/equipments to be maintained by CSEB, at Developer's cost
Transmission lines for evacuation of power from plant to the nearest grid substation to be built by the developer. Metering equipment to be provided by the sugar mills at their own cost
Cost of power evacuation up to HVPN/UHBVN, DHBVN network to be borne by the Developer.
Incentives/concessions as Incentives / concessions as applicable to new Industrial applicable to new Industrial units/backward areas. units Reactive charges to be paid to CSEB for taking reactive power from them. Electricity sold to third party or for self use exempted from electricity duty for five years
All new projects to be treated as "Industry" in terms of Industrial Policy , 2005 and all the incentives available to new projects to be applicable as per this Policy Two sets of separate meters to be installed, one for power export & other for import Co-generation projects to be designed to use nonfossil fuels.
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Sl. No 1 Name of State/ Description Order Date Karnataka (From RE policy of State) Kerala (From RE policy of State) Madhya Pradesh (From RE policy of State) Maharashtra (From RE policy of State)
No. EN 354 NCE 2008 G.O.(MS) No. 16/2002/STED Notification dated 17.10. 2006 Government Resolution (i) Bangalore, Dated 19th January, dated 03.04.2002 & Amendment dated N o . A P A U ( N C E ) - 2 0 0 7 / 2010 12.05.2008 Pra.Kra.693/ Urja-7 dated 14th October 2008 (ii) Amendment dated 03-08-2009 Companies, Co-operative, Any Industry, Institution or Private unit/Joint Venture Partnerships, Local Self Governments, registered Public sector units. societies, NGOs, individuals etc. Power producers for captive consumption
Eligible Producer
Land Allotment
Government land for Karnataka Renewable Energy Development Limited (KREDL) Private land from owners Land owner farmers to be equity partners of not less than 5% of gross energy generated 10% barren Government lands reserved for industrial use to KREDL for RE development KREDL to sub-lease land to developer for 30 years. Government waste lands to be identified and offered to set up Biomass projects
Land @ Rs. 1/- /year (token premium) for 30 years or life of the Project Private land to be acquired by Govt. & made available to Developer at acquisition cost Private land including Agricultural land exempted from Land Ceiling for its acquisition 50% exemption on stamp duty on private land.
Operative Period
5 years up to 2014
5 Years
Sl. No 5
Name of State Description Sale of Power and Tariff
Karnatka (From RE policy of State) To ESCOMs in area where the project is located, at KERC Tariff
Kerala (From RE policy of State)
Madhya Pradesh (From RE policy of State) Sale of Power from one company to its sister concern to be deemed as captive user of power Power can be utilized by Generator itself or for sale to MPSEB or its Successor Company or to any consumer
Maharashtra (From RE policy of State) It shall be binding on Developers to sell 100% of electricity generated to Licensee or Client in the State.
PPA for a minimum period of five years. Power purchase by KSEB at a ceiling rate of Rs.2.80 per unit with 2000-01 as base year and 5% escalation every year up to 5 years of operation.
Tariff as per MPERC Higher Tariff in special Wheeling charges as per cases MPERC 6 Wheeling 5% wheeling charges On KSEB grid for captive use or for banking, at a wheeling charge of 5 % of energy fed into the grid,including transmission loss Allowed 100% from June to February every financial year & from March to June. If the banked energy is not utilized at the end of the year, it can be purchased by KSEB at the average selling rate of KSEB 8 Power Evacuation and Grid Interfacing KPCTL to provide transmission lines and developers to bear the cost of lines from the project site to the sub-station. Developer to bear cost for Cost for Power evacuation Developers to install the evacuation facilities & facilities to be power evacuation facilities borne by interfacing including Developer including modification from maintenance. project site to HV / EHV substation including KSEB to initially bear the transmission lines expenditure for erection of high- tension sub stations After commissioning, and transmission evacuation arrangement infrastructure. to be transferred to MSETC / MSEDCL with ANERT to recover 50 per ownership and cent of this expenditure from maintenance work 4% subsidy on is available
Banking
Allowed for energy banked with KPTCL/Distribution licensee
Allowed 100% MPSEB / Distribution Co. to charge 2% of Banked power as banking charges
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Karnataka (From RE policy of State)
Kerala (From RE policy of State) the power project promoters and give it to KSEB.
Maharashtra (From RE policy of State) 50% of the approved expenses on same to Developer
KREDL to facilitate availing Industry status under the CDM benefits schemes administrated by Industries Department and After the plant completes 11 incentives to be made years, it has to sell power to available to them. Energy supply companies on tariff based on variable cost Large Industries having as per KERC norms 2000 kVA and above as connected load, to produce Developer to commission the at least 5 per cent of their project with grid requirement through captive synchronization within 3 power plants years from date of statutory clearance KSEB to provide facilities of an irrevocable, divisible, 50% of the installed capacity revolving and confirmed assigned for captive use stand by Letter of Credit (LC) by any Nationalised Bank. Government to facilitate Biomass power plant with an The amount of LC to be enabling Tariff atmosphere in equal to the Expected Co-ordination with KERC Payment for one month by Board. Industries to be encouraged for co-generation by All transactions involving extending capital subsidy wheeling, banking or sale of scheme as one time grant power to be settled on a subject to surplus power fed monthly basis. to grid
Carbon credit benefits to No electricity duty for first 10 years for captive use/ Investor third party sale. Exempted from Entry Tax / For Bagasse project Octroi / VAT. Capital grant of Rs.1 Cr. / The units which do not project for HV/ EHV intend to take benefits under substation, if project runs this Policy to be at liberty to with minimum 80% PLF for set up Project under minimum one year Electricity Act -2003 If Co-operative sugar Developer to commission factory installs projects the Project in 15 months 100% exemption for the next 10 years to be given on 3% purchase tax which is charged on sugar cane purchased for crushing.

Sl. No 1 Name of State/ Description Order Date Manipur (From RE policy of State) No.1/1/2005- S& (Misc) dated 12-09-2006 All Power producers generating Grid-grade electricity with installed capacity not exceeding 25 MW Producers generating electricity for captive consumption Companies, Co-operative, partnerships, Village Development Board/ Village Authorities, individuals etc. 3 4 5 Land Allotment Operative Period Sale of Power and Tariff From the date of publication till superseded or modified Power Department to DISCOM to purchase electricity purchase electricity at a at SERC rate & on mutually minimum rate of Rs. 2.25/- accepted terms and conditions per unit to be increased every year for 10 operational years. Thereafter the rate of increase to be mutually settled between Power Deptt. and developer. PPA for 20 years unless Developer wants shorter period Power producing entrepreneur. Companies, cooperative, partnership individuals etc. All power producers generating grid-grade electricity with installed capacity between 10 kW and 25 MW For captive consumption Companies, cooperative, partnerships, individuals, charitable societies, Non-Governmental Organizations, etc. Producers generating 10 kW to 25 MW of grid-grade Electricity Producers in the joint-sector, formed by Government agencies and the producers. For captive consumption. Land lease not exceeding 99 Government land if available years, From the date of publication till With immediate effect for 10 superseded or modified years Department to purchase electricity at a minimum rate of Rs. 3.50/unit applicable for the year 2002-03 with escalation of 5% every year for 10 operational years. Thereafter the rate of increase to be mutually settled between Department and the Producer. It shall not be compulsory for power producer to sell power to Department Developers concurrence of with the To bulk suppliers/ distribution licensee on basis of PPA with the approval of OERC Energy not utilized during the year for captive use to be treated as sold to GRIDCO/ DISTCO. Meghalaya (From RE policy of State) Mizoram (From RE policy of State) Orissa (From RE policy of State) Resolution No. 6971/ST, Bhubaneswar, ST-IV-RE-13/ 2005, dated 3-12-2005 Any Public Sector, Private Entrepreneur, Registered NGOs, Cooperatives, Consortia etc.
Eligible Producer
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Mizoram (From RE policy of State) Department may sell the electricity to a third party within and outside the State, at a rate to be mutually settled between them.
PPA for minimum period of 10 years unless Developer wants for shorter period 6 Wheeling subject to Department to transmit on its STU to transmit on its grid Department to transmit on its Allowed, payment of transmission/ grid the power generated grid the power generated by the power for captive use of distribution and wheeling and make it available to him producer and make it developer or to a third party charges both for captive for captive use or to a third available to him for captive for sale within the state, at use and out side the State party nominated by eligible use or to a third party for sale an applicable wheeling as approved by OERC producer for sale within the within the State, at a uniform charge. State, at a uniform wheeling wheeling charge of 2% of the Developer may supply Third party to be HT charge of 2% of the energy energy fed to the grid, energy to any one area not consumer unless condition supplied to the grid. served by the licensee. Third party to be a HT relaxed by DISCOM. Third party to be HT consumer of power. consumer unless condition relaxed by DISCOM Allowed up to 1 year Allowed up to 1year Allowed on annual basis. Banking charges - 2.5% of energy dispatched
Banking
Developer to bear cost for Developer to bear cost for Developer to bear cost for Grid interfacing with the evacuation facilities & evacuation facilities & generating units to be evacuation facilities & interfacing up to the nearest interfacing up to the nearest constructed by the interfacing up to the nearest HT lines as well as for Mtc. HT lines as well as for developer at their own cost. HT lines as well as for Maintenance. Maintenance Alternatively, these works Scheme for inter and their maintenance could Alternatively, these works Alternatively, the above connection to the nearest works and their maintenance be undertaken by the Power and their maintenance could substation to be approved could be undertaken by the department at charges to be be undertaken by the by GRIDCO/ DISTCO and Department at charges to be decided by the Department DISCOM at charges to be shall form the part of DPR. decided by the Department decided by the DISCOM/ Cost of augmentation of suband the producer on mutual SERC station capacity at 33/11 kV agreement. or higher & transmission lines Cost of augmentation of to be borne by the sub-station capacity at 33/11 Department. kV or higher & transmission lines to be borne by the Department.
Sl. No 9
Manipur (From RE policy of State) All transactions involving wheeling, banking or sale of power to be settled on monthly basis Exemption from electricity duty for 5 years from COD for captive use or third party sale. Producers to be treated as industrial units and similar incentives available to them Concessions given to Industrial units in backward areas to be provided Infrastructural facilities to be on the lines of industrial units if plant is set up in industrial area developed by State Govt. GoI Incentives Exemption of tax on RE devices and spare parts. Sale Tax exempted MANIREDA to facilitate grant of loans by IREDA & MNRE & accord of clearances for execution If the applicant does not take effective steps (i.e., at least 10% of the total project cost not incurred within six months) to implement the project, the agreement to be terminated and site allotted to another applicant
Meghalaya (From RE policy of State) Infrastructural facilities to be on the lines of industrial units if plant is set up in industrial area developed by State Govt. Exemption from electricity duty for 5 years from COD for captive use or third party sale. Sales Tax/ VAT deferment / remission as applicable Meghalaya NonConventional and Rural Energy Development Agency (MNREDA), to facilitate clearances for the projects at the State and Central levels and grant of loans by Indian Renewal Energy Development Authority (IREDA) and subsidies by MNRE. Developer to submit applications for projects and grid interfacing to MNREDA and DISCOM. MNREDA/ State government to provide clearance within a period of 2 months from the date of submission of application
Mizoram (From RE policy of State) Exemption from electricity duty for captive use or third party sale Infrastructural facilities to be on the lines of industrial units if plant is set up in industrial area developed by State Govt. Producers to be treated as industrial units and similar incentives available to them Concessions given to Industrial units in backward areas to be provided State Government to extend all incentives and facilities granted by the Central Government for similar Undertaking in other States. Equipments and materials exempted from State sales tax All transactions involving wheeling, banking or sale of power to be settled on a monthly basis Reduction in contract demand to the extent of 30% of installed capacity of the power plants shall be permitted by the Department, in case power plant is not utilizing Department's Grid for supply of power to the consumer
Orissa (From RE policy of State) Exempted from electricity duty No transmission charges for CPP or NRSE maintenance for a period for 5 years from COD In the event of project work not started within a year of approval of PPA, the MOU and PPA will automatically stand cancelled.
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Sl. No 1 Name of State/ Description Order Date Punjab (From RE policy of State) Rajasthan Tripura (From RE policy of State) Uttarakhand (From RE policy of State) No.263/I(2)/2008-04(8)-96/ 2001 29th dated Jan, 2008
No.10/106/2006-STE(1)5390 Energy Deptt. Notification No. F dated 24th Nov, 2006. 20 (10) Energy 09/ dated 26.02.2010
Eligible Producer
Only one Biomass power project to be allocated through competitive bidding route in Tehsil (Taluka) in the State
Companies, cooperative, partnerships, individuals, charitable societies, Non-Governmental Organizations etc. Government agencies and the producers. (JV) Power producers for captive consumption.
Land Allotment
Government land at lease Government land at Government Land: on lease rent of Rs.1/sq. metre/ concessional rates viz, 10% Private Land on payment annum for 33 years . of DLC rates. Forest Land as per the Agricultural land without Private Land on payment. Forest Conservation Act conversion charges. Five years w.e.f. 8th December, From 26.02.2010 2006. superseded or modified. till Date of notification superseded or modified till
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Bagasse/ Biomass co- Producer to use power for generation projects- Rs.3.49 captive consumption or for per unit (Base year 2006-07) sale to third party/ licensee with five annual escalation @ including Discoms 3% up to 2011-2012 Price of power to be sold to Biomass power projectsthe consumers/ licensees Rs.3.49 per unit (Base year other than Discoms to be 2006-07) with five annual done on mutual agreement escalation @ 5% up to 2011between seller & purchaser. 2012
Department / TSECL to purchase electricity at TERC tariff Third party sale permitted. PPA for a minimum period of 10 years. Department to consider PPA for shorter period on merit.
Sl. No
Punjab (From RE policy of State) Thereafter PSEB / HT tariff whichever is higher
Rajasthan Price of power to be sold to Discoms to be specified by RERC
Uttarakhand (From RE policy of State) UPCL to have first right of purchase of electricity UERC to determine price of electricity Government of Uttarakhand to Provide guarantee for payments to be made by UPCL for purchase
Wheeling
Allowed For third party sale or for captive use within the State, Producer to execute a wheeling Agreement with Discom. Wheeling Agreement with RVPN to be executed separately if the Producer intends to use RVPN system for wheeling of power.
2% of the energy supplied to the grid.
UPCL / PTCUL to transmit power generated through its grid for captive use or third party sale within/ outside the state Wheeling charges to be announced in advance
Banking
Allowed.
Banked for one Financial year. Allowed at mutually agreed terms Developers to bear the T&D lines from generation entire cost of Power site. To be provided by UPCL/ evacuation and interfacing PTCUL including maintenance to the nearest HT lines. Cost of augmentation of sub-station capacity at 33/ 11 kV or higher and transmission lines to be borne by the Department
Developer, to bear the cost for Generating plant substation providing the evacuation to be developed and system including transmission maintained by producer at lines its own cost. For receiving station, Producer to terminate their 33 kV (minimum voltage level) power evacuation feeder to RVPN's GSS in consultation with RREC. Producer to pay grid connectivity charges to RVPN/ Discom as finalized by RERC within 3 months of PPA.
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Rajasthan Evacuation system beyond Generating Plant sub station till the nearest RPVN's grid sub station to be developed by Producer as per RERC regulation dated 23.1.2009 and amendments.
VAT @ 4% on manufacturing Consumption of power for Producers to be treated an Industry and similar and sale of NRSE devise Captive use to be exempted incentives available to system and equipment / from Electricity Duty @ 50% them. machinery for a period of 7 years from COD Incentives provided by Octroi exempted. Incentives available to Central Government : as per PEDA to assist in seeking industrial units under "North East Industrial and carbon credit under CDM scheme administered by Incentive Promotion Policy Industries Department to be (NEIIP), 2007. available to Developer. Renewable Energy Allowed to use water from equipment and materials Water Resource exempted from State sales Department (WRD) for tax/VAT, alternately power generation. reimbursed. Modification(s) if any, in the existing canal system to be 100% CDM benefit to developers in first year, 10% done by WRD at the cost of to beneficiaries in 2nd year power producer. to be increased by 10% Ground water department to every year up to 50% and accord similar status to then shared equally Biomass power Plant using between developer and "air cooled technology" as beneficiary. granted to drinking water scheme while granting NOC Use of 30% conventional fuel to be allowed for for drilling bore well/ tube Biomass based projects in well for fulfilling water the event of reduced requirement of the projects Biomass availability No other Biomass Power Projects to be permitted Producer to deposit an amount equal to 2.5% of the within the reserved area of estimated cost of the project existing/ approved/ earlier as security deposit towards registered projects.
CDM Benefits to be passed to the developers Not more than three projects in each category to be allotted to a developer Preference to be accorded to industrial units located in State in the open competitive bidding process provided the bid is not less than 80% of the highest bid If developer does not restrict to the prescribed time schedule of completion of project, premium to be forfeited and allotment canceled Projects to be offered for 40 years from the date of award, Application fee (Nonrefundable) - Rs. 5000/ Processing fee (Nonrefundable) - For projects up to 1MW - Rs. 10,000/and more than 1MW - Rs. 25,000/-
Sl. No
Rajasthan As per RERC order dated 17.08.2009, Biomass producers to be allowed to use fossil fuel (such as coal, lignite, natural gas, municipal waste) up to 15% during the lean period in some years. Incentives for early completion as per RERC tariff order. RREC to be Nodal Agency for facilitation of PPA/ WBA, loans from IREDA/ Institutions, allotment of land, water allocation, statutory clearances etc.
Tripura (From RE policy of State) completion of the project within the prescribed time frame.
Uttarakhand (From RE policy of State) Security Payment - For projects up to 1MW - Rs. 20,000/- and more than 1MW- Rs. 50,000/ Committee headed by Chief Secretary to accord approvals/clearances through a single window mechanism.
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SUMMARY OF STATE POLICIES, ORDER WISE FOR DEVELOPMENT OF POWER FROM RENEWABLE ENERGY SOURCES
79
ANDHRA PRADESH NEW WIND POWER POLICY

DATED: 11-04-2008 AND AMENDMENT DATED: 09-09-2008
Sl. No. 1 2 3 4 5 Order Potential of Wind Energy Applicability Operative Period Applicable to Description Summary No. G.O. Ms. No. 48 and Amendment No. G.O. Ms. No.99 dated 09-09-2008 2100 MW From the date of Issue of Order 5 years from the date of the policy unless superseded or modified by any other order 6 7 Nodal Agency for Approval of Project up to 20 MW Eligible Developers All new approvals, PPAs, Wheeling Agreements etc. Existing PPA and Wheeling Agreements for existing projects to be governed by the old agreements
Non-Conventional Energy Development Corporation of Andhra Pradesh Ltd. (NEDCAP) Wind Farm developers, Wind Energy Generator Manufacturers, Government Owned Companies, Private Companies, Joint Venture Companies and Private Investors. WEGs should be new and match the specifications issued by Centre for Wind Energy Technology (C-WET) Minimum Turbine Capacity of WEGs to be not less than 225 kW Eligible developers to enter in to agreements as per guidelines issued by APERC Rs 3.50 paise/unit for 10 years from COD subject to approval of APERC. Tariff from 11th to 20th year shall be fixed by APERC DISCOMS shall have the first right of refusal of power purchase after 20th year of COD Tariff beyond 20th year shall be as mutually agreed by both the parties Order issued Vide G.O.Ms. No. 19 dated 16-03-1996 for allotment of Government land to private developers at market value to continue provided the land is used only for setting up of Wind Farm Memo. No. 71022/Asn.1(1)/97-1 dated 04-11-1997 and Memo. No. 2742/ Asn.1(1)/2005-1 dated 03-08-2005 from Special CS to Government authorizes District Collector to handover the land in advance possession to the developer subject to: Developer to deposit cost of land as fixed by the Collector Developer to give an undertaking that they would pay enhanced cost in case it is advised at the time of issue of alienation order Each eligible developer may be allocated available Government land to harness up to maximum 200 MW of wind power initially After Commissioning 100 MW capacity wind farms in the first stage in the allocated Government land. Government may lease land for another 100 MW capacity wind farms In case of projects being set up for own/captive use or third party sale, Government land may be made available on higher priority If the wind farm is setup in private land, the eligible developer to procure land from landholder on their own
Eligible Wind Farm (WEGs)
Tariff
10
Allotment of Government Land
(i)
(ii)
80
11
Compendium of State Government Policies on Renewable Energy Sector in India Use of Power Produced by Developers For captive consumption or sale to a third party or to DISCOMS PPA to be entered with DISCOMS as per power purchase guidelines and wheeling agreements with AP TRANSCO or / and DISCOMS as per Open Access Regulations and other guidelines issued by Regulatory Commission
12 13 14
Duration of PPAs Wheeling Agreements Power Evacuation Facilities
20 years As per Open Access Regulations Developer to bear the entire cost for interconnecting the wind farms with the grid and delivery of power as per orders, rules regulations and terms & conditions approved by the Commission For transfer of power by the developer for its own captive use or third party sale, it shall be governed by Open Access Regulations Balancing and settlement of energy and demand to be as per Balancing and Settlement code as approved by the Commission Third party sale to be permitted only to HT-1 category consumers as categorized in Tariff Orders issued by the Commission Concessional wheeling and transmission charges in kind @ 5% of energy delivered in to the grid (including T&D losses) for captive use or third party sale to be given to developer subject to approval of APERC For captive consumers or third party consumers, the minimum billing demand shall be 60% of the contracted maximum demand during June to September Wind power projects are not eligible for banking of energy Energy generated by captive generation plant not consumed during the billing month, would be deemed to have been sold to respective DISCOM DISCOM to pay for such un-utilized energy @ 85% of the tariff as amended Developer who sells energy to DISCOMS shall share carbon credits with DISCOMS Developer to retain 90% CDM benefits and pass on 10% benefit to Distribution Company subject to orders of the Commission
15
Wheeling
16
Banking
17
Sharing of Carbon Credits
18
Facilitation by NEDCAP
NEDCAP to facilitate Required clearances for the project at State and Central Government levels Grant of loans by IREDA/PFC/REC and other term loan Agencies/ Commercial Banks Regulate the allotment of projects
81
ANDHRA PRADESH GUIDELINES FOR ESTABLISHMENT OF MINI HYDEL POWER PROJECTS ALONG VAGUS AND STREAMS
ORDER DATED: 11-07-2007
Sl. No. 1 2 Order Establishment of Mini Hydel Stations on Major Canals and Rivers Establishment of Mini Hydel Stations along Vagus and Streams (A) (i) (ii) General Conditions: Royalty Charges Violation of Agreement To be collected from the developer as a percentage of energy generated or taking the actual generation of power from APTRANSCO (iii) Event of Adverse affect due to the Project (iv) Revision of Project Report (v) Flow of Water Stringent punishment for non-compliance or deviation from conditions of agreement Could entail the cancellation of the permission of project Government/Department would not be responsible for loss of capital investment of the developer even when the investment is financed For any adverse affect to upper/lower riparian rights or public, the consequential financial implications to be borne by the developer Flow pattern in the river/stream/canal not to be disturbed Diversion of water in to project shall in no way affect the upper/lower riparian rights to any extent Control of gate operation to be vested with Irrigation Department During lean flow or any other problem, modalities of generation of power should be as directed by the Irrigation Department Developers would have no right to vary proportional Head During reduction in flows, power generation to be stopped Developer shall not resort to storage of water, as it comes, to go down stream of the project In case of violation developer to pay panel charges in addition to royalty charges as imposed by the Department Department may order closure of the project and cancel the permission at the cost of developer Description Summary No. G.O. Ms. No. 165 dated 11th July, 2007 No Objection Certificate for setting up of Mini Hydel Stations on Major Canals and Rivers viz., Krishna, Godavari and Pennar or other rivers as notified by the Government, not to be entertained Government to consider the proposal subject to the following conditions:
Developer may revise the project report in case it is observed that the generation of a higher capacity is possible Government not to guarantee the continuous flow of water Developer to ensure that all effluents, discharge of water etc to be in accordance with APPCB Developer to furnish report every alternate month on the quality of water after use by the power station
(vi) Stipulations of AP Pollution Control Board (APPCB) (vii) (viii) Automatic Control to let out Water Regulation of Water
In event of shutdown or tripping of generating units, by-pass arrangements with automatic controls to be provided to let out water to the down stream Water to be Regulated by the Irrigation Department
82
Compendium of State Government Policies on Renewable Energy Sector in India Developer has no rights to operate the canal for utilization of water Developer shall not use water except for power generation Government may examine all aspects before releasing the water Even during flow in the canal, Irrigation Department reserves the right to deny the water to the project and pass orders to let the water through ByPass Arrangements Irrigation invariably takes priority over power generation Water requirements for drinking water and agriculture shall have prior claim for utilization of water Developer to plan generation of power accordingly Developer shall not have a superior claim on the utilization of water
(ix) Utilization of Water (x) Benefits of the Project
Developer shall not assign, under-let, or part with the possession and benefit of the project or liberties and privileges or any part thereof without prior written consent of the Government Firm shall not install/add/replace/modify any machinery or other installation without written consent of the Government Developer to be responsible for design, construction and O & M and all component works at his cost and risk Department to supply water as per the canal operational plan which is at the sole discretion of the Government Department to release water in pulses, resorting to on-off schedule, which is flexible Developer to abide by the above plan and shall not resort to storage
(xi) Addition/Replacement of Machinery (xii) (xiii) O & M of the Project Canal Operational Plan
(B)
Technical Conditions: (i) (ii) (iii) Lining Sluices Provision of Flow Meters Cement concrete lining of inlet and tailrace channels based on site conditions Off-take sluices at the off-take point in the streams and rivers to be as per designs approved by Irrigation Department Developer to provide and maintain flow meters at the point of inlets of approach channel and at the tailrace channel for measurement of discharge for water regulation Higher of the above two recordings to be considered for calculating the royalty charges Data generated through the flow meters to be transmitted to the control room of the Irrigation & CAD Department on daily basis Operational plan to be evolved and got approved by Government during flood situations and other natural exigencies APTRANSCO to provide power evacuation facilities to the developer at developers cost or developer may execute power evacuation facilities as sanctioned by APTRANSCO/DISCOMS at their cost Department shall reserve the right to conduct inspections and tests at all times Statutory inspections to be done by the department before charging the water conductor system Developer to provide free access to Upstream and Downstream points in canal by constructing Bridges on canals and provide independent necessary approaches for movement of vehicles on canal and to operate the inlet to the project, diversion gates, independently by department engineers
(iv) Operational Plan of Project
(v)
Inspections and Tests
Compendium of State Government Policies on Renewable Energy Sector in India (vi) Cost Towards Modification
83
Developer to bear the cost towards modifications, if any, to the stream system and its structures that become necessary on establishment of project Developer to construct and maintain protection bund 1.50 m above MWL on upstream up to where the ground levels are above bund levels Developer to take up necessary protection works for the banks on downstream at the confluence of tailrace channel with mainstream Developer to maintain canal on both upstream and downstream for a length of about 5 km for canal based project at their cost Developer to provide sluice in the weir/diversion structure as scouring sluice for allowing lean flows
(vii) Safety Clearance
Developer to demonstrate on the safety and functioning of by-pass system and obtain clearance from the Department before commencement of power generation every year Developer to be responsible on physical and financial terms and all such cases Department to quantify the physical and financial loss caused on establishment of the project and its decision shall be final and binding on the developer Developer to do the works as may be suggested by the Department at his cost and within the time limit fixed by the department Decision of Superintending Engineer, Irrigation shall be final on all such matters Failure to execute the works entails cancellation of No Objection Certificate, forfeiture of deposit Expenditure incurred by the department in maintaining the river/stream course and the river banks including protection works is recoverable from the developer Developer to maintain the river/stream course and river banks including protection works at his own cost Operation of schemes shall not be detrimental to the water regulation of envisaged ayacut and flows to lower down reservoirs Irrigation & CAD Department shall have the right to cancel the permission
(viii)
Physical and Financial
(ix) Execution of Works
(x) Operation of the Project (xi) Selection of Developer
By biding process
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ARUNACHAL PRADESH SMALL HYDRO POWER POLICY- 2007

DATED 24th JANUARY, 2008 & AMENDMENT DATED 13th OCT. 2008
Sl. No. 1 2 3 Order Title Policy Objective Description Summary No. PWRS/HPD/W-1305/2005 dated 24th January, 2008. And Amendment order No: PWRS/W-1305/2005/ Pt-I dated 13th Oct. 08 Small Hydro Power Policy, 2007 Private participation in development of Small Hydro Project with certain attractive incentives Formulation and notification an of action plan for small hydro power generation with players such as private entrepreneurs, cooperative societies and NGOs
Classification of SHP Projects
Category - I : Projects with installed capacity of above 1 MW up to 25 MW to operate in both Grid and Isolation mode. Category - II : Projects with installed capacity of above 100 kW up to 1MW to be designed for stand alone mode with or without connectivity to grid. Power supply to the consumers to be at High Voltage or Low Voltage Category - III : Projects of up to 100 kW shall be designed for stand alone mode without high tension systems.
Who Can Invest in SHP
Preference in allocation of Projects to be given to Local entrepreneurs with sole proprietorship /NGOs/Co-operative Societies / Joint venture concerns or Consortium of companies in which one or more than one partners to be Arunachalee. Any registered company from outside the State with differentiation in free power, upfront money and processing fee with that of local entrepreneurs Independent Power Producers (IPPs): To sell power to the State power Utilities / State Government under a Power Purchase Agreement (PPA) at a pre-determined Tariff as defined by the SERC or the State Government. Developer to be provided with open access facility for which a separate agreement with the State Transmission Utility (STU) at a tariff determined by the SERC / State Government. Merchant Power Producers (MPPs): To sell power to limited number of permitted pre-determined third party (or parties), preferably heavy power consuming industries set up within the State. MPPs to be provided with open access facility for which agreement has to be settled with STU State is not bound to purchase Power from MPPs. However, the State reserves the right to purchase power at a price as may be determined by the State/SERC. MPPs shall not be eligible for retail sale of power to general consumers to replicate the function of a DISCOM without a license. Power producers shall produce power only for their own consumption CPPs shall be treated at par with that of MPPs as far as the other conditions are concerned.
Commercial Categories of Power Producers
(A)
(B)
(C) Captive Power Producers (CPPs):
Compendium of State Government Policies on Renewable Energy Sector in India 7 Qualifying Criteria
85
Developers to furnish an undertaking on legal papers committing to engage the technical personnel, either as permanent employees or partners in the organization, at the time of submission of application for allotment of projects. Qualifications of personnel to be employed for various category of projects are detailed in the policy Project sites for development to be identified and notified by the State Government, or A shelf of projects shall be maintained by the State Government for allocation. Developers may approach the State Government with self-identified projects with full pre-feasibility report (PFR) for development on concept to commissioning basis. Government shall allocate Projects to the eligible applicant for development on BOOT (Build, Own, Operate and Transfer) basis for a period of 50 years.
8 Projects Identification and Allocation
9 Process of Allotment Application for Allotment (i) Category I Projects (ii) (iii) Category II & III Projects Earnest Application fee
Managing Director (MD), Hydro Power Development Corporation of Arunachal Pradesh Ltd., Itanagar Chief Engineer (CE), Department of Hydro Power Development, Itanagar
Director, APEDA, Itanagar Non-refundable demand draft of Rs. 5000 per application drawn on State Bank of India, payable at Itanagar in favour of MD, CE and Director APEDA As per eligibility and qualification criteria Selected Developer to deposit the Processing fee and Upfront Premium (both non-refundable) at the time of signing of the Memorandum of Agreement (MoA) with the State Government, failing which, the State Government shall have right to re-allocate the project to any other eligible developer Category of Hydro Project Processing fee Rs. (per project) Minimum Upfront Premium payment Rs. (per MW)
(iv) Selection of Developers (v) Processing Fee and Upfront Premium
Category I (a) > 10 MW up to 25 MW Indigenous Developers Non-indigenous Dev. (b) > 5 MW up to 10 MW Indigenous Developers Non-indigenous Dev. (c)> 1 MW up to 5MW Indigenous Developers Non-indigenous Dev. Category II >100kW up to 1000kW Indigenous Developers Non-indigenous Dev. Category III Up to 100kW Indigenous Developers Non-indigenous Dev. 10,000 20,000 Nil Nil 15,000 30,000 Nil 10,000 (per project) 50,000 1,00,000 35,000 70,000 25,000 50,000 20,000 40,000 15,000 30,000 10,000 20,000
86
Compendium of State Government Policies on Renewable Energy Sector in India Note: The local entrepreneurs / Indigenous developers /NGOs/Co-operative Societies, if applies under Joint venture or Consortium of Companies, the chargeable Processing Fee and Minimum Upfront Payment will be that of Nonindigenous Developers. (vi) Upfront Premium (vii) Preference to Indigenous Applicant Memorandum of Agreement (MoA) Not to form part of the project cost In case of more than one applicant meeting the eligibility and other criteria, preference to be given to indigenous applicant of the district in which the project is located Project completion time and COD as per proposal or agreed by the Government to be incorporated in MoA A High Level Selection Committee to examine the proposals of the prospective developers and submit its observations / recommendations to the State Government. Selected developers to sign the (MoA) within 30 days from the date of issue of Letter of Selection. Within 12 months from the date of signing of the MoA, the selected developer shall complete all post allotment obligations including preparation of Detailed Project Report ( DPR), possession of the project site and obtaining all statutory clearances of the State Government Developer to submit DPR with all clearances to the Secretary (Power), to enable State Government for examination and approval within three months. DPR of the selected developer submitted for System Coordination and Techno-Economic Clearance (SC&TEC) to be scruitnised by Standing Committee on Technical and Economic Affairs If project is not found feasible by the Standing Committee on Technical and Economic Affairs, the State Government, upon mutual understanding with the developer, shall terminate the agreement and the upfront payment shall be refunded to the developer without interest Upon failure of the developer to commence work at the project site within 18 months from the date of signing of the MoA, the agreement shall stand automatically terminated. Upfront payment shall be forfeited. Statutory regulations of the Central Government / CERC and the State Govt. / SERC while implementing the project. Provisions of the Forests (Conservation) Act, 1980. Developer to pay the cost of raising the compensatory afforestation including payment of the Net Present Value (NPV) of the forests land being diverted for non-forest purpose under relevant Forests (Conservation) Act, 1980 and Environmental Protection Act, 1986. To labour welfare under the Labour Laws/Acts during the implementation / operation and maintenance of the Project. The provisions of the Electricity Act 2003 and other laws and rules framed under such laws shall apply on the Projects under this policy. Land for project and other allied infrastructures shall be leased to the developer against payment of land revenue as per relevant tariff of the State Government. The period of lease to be continued till the BOOT period of the project.
(viii) 10
Single Window Selection
11 Statutory Clearances
12
Time Schedule for Commencement of Work
13 Compliance to Statutory Regulations by the Developer
14 Land Acquisition
15 Maintenance of Law and Order
Is the responsibility of the State Government in and around the project area for security and safety of personnel and properties of the project.
Compendium of State Government Policies on Renewable Energy Sector in India 16 Rehabilitation and Re-settlement Equity Participation Sale of Power
87
Rehabilitation and Re-settlement works for displaced persons due to the project shall be financed by the developer, as per relevant law/guidelines of the State. The State Government shall reserve the right of equity participation on mutual understanding with the developer through its agency on Joint Venture. IPP can enter into contract to sell power to the State Government through a PPA to be signed within 6 months after signing of MoA at a tariff 10 paise lower than the tariff as determined by the CERC/SERC or the State Government for sale outside the State. Point of sale of power to be at the place of injection to the State grid, unless incorporated in the PPA. Metering point shall be located at the point of sale defined in the PPA. Developer under IPP/MPP/CPP category may be allowed after prior approval of the Government to sell power outside the state only under a special license in the event of surrender of contracted power. Similar licensing can also be considered by the state in the situation of closure of the industries forcing the project to idle. State shall reserve the right to purchase the idle power from MPP/CPP. The State Government shall open Letter of Credit (LC) in favour of the Developer in State Bank of India, Itanagar for an amount which would be specified in the PPA for regular transactions of power purchased from the IPP/MPP/CPP etc. as the case may be.
17 18
19 20
Banking of Power Transmission System and Evacuation
Not allowed without prior permission of the State Government. STU and the developer to enter into an Agreement about Power Evacuation System and open access facility before the final investment decision. Letter of Comfort on Transmission (LCT) can be obtained from the STU before submission of application/ expression of interest (EOI) for allotment of the project. Transmission System which forms a part of the project to be specified in the LCT. Developer to bear the cost of transmission network from the project to the point of sale. Transmission system and other allied facilities will be made available to all developers for Open Access and Wheeling of Power. Developers to enter into an Agreement with the STU for payment of wheeling rate as may be determined by the SERC/State.
21 Wheeling Charges 22 23 Transfer and Sale of Power Plant Free Power and other Charges
Not allowed without the prior permission of the State Government As an incentive for timely completion, there shall be a moratorium of free power. Free power concessions to be made at the concessional rates. Moratorium period to be counted from the COD. Moratorium Period Rate of free power from scheduled COD after Moratorium period up to 50th Year One Year One Year Two Years Two Years 5% 10% 2.5% 8%
Category of Hydro Project
(a)
> 10 MW to 25 MW Indigenous Developers Non-indigenous Dev. >5 MW to 10 MW Indigenous Developers Non-indigenous Dev
(b)
88
Compendium of State Government Policies on Renewable Energy Sector in India (c) > 1 MW to 5 MW Indigenous Developers Non-indigenous Dev Up to 1000 kW Indigenous Developers Non-indigenous Dev.
Three Years Three Years
Nil 5%
(d)
Nil Nil
Nil 2.5%
Note: The local entrepreneurs / Indigenous developers /NGOs/Co-operative Societies, if applies under Joint Venture or Consortium of Companies, the chargeable Free Power will be same that of Non-indigenous Developers. 24 Force Majeure State Government not responsible for any losses arising out of the force majeure situation, i.e., earthquake, flood, fire, external invasion, civil commotion, landslide etc. No claim by the developers on above account shall be entertained by the State Government. State Govt. shall facilitate in obtaining subsidies, tax concession etc. as may be available from the Central Government for development of SHP. State Government shall allow 50% share of Carbon Credit Carbon Trading under CDM. benefit from
25 Incentives by State Government 26 Intellectual Property Right
Indigenous tribal entrepreneurs shall be exempted from supplying free power to the State Govt. for projects up to 5 MW capacity.
In the event of transfer of Intellectual Properties related to the project design, data, DPRs, etc. the cost of such properties shall be payable to the owner of such properties by the party/(parties) to whom it would be transferred. Developer to spell out the employment opportunities for the bonafide Arunachalees in the application. This shall be one of the selection criteria for allotment of project. Endeavours shall be made by the developers to employ local ITI Certificate holders during the construction, operation and maintenance of the projects. They should also be ready to take technical manpower on deputation from the State Government Departments and Organizations.
27
Employment Opportunities
28
Monitoring of Projects
Government shall have the right to monitor physical and financial progress of the projects on monthly/quarterly/half yearly basis through a Technical Committee headed by the Secretary (Power and NCER), Govt. of Arunachal Pradesh. Developers shall be liable to pay all the statutory levies viz. royalty on forest products, river bed materials, duties and taxes unless specifically exempted. Allotment of a project to a developer does not automatically confer him any territorial rights on both upstream and downstream sides of the project area. Developers shall facilitate using of tail race water for Agriculture / Horticulture purpose wherever it is found feasible and necessary. State Government shall have the right to use the tail race water for any other purpose including development of Hydro Projects on its own or allot to some other party. Developers shall make all necessary protective arrangements on upstream, downstream and tail race areas of the projects site to avoid soil erosion and damage to properties. Developer shall pay an amount worked out at the rate of 1 paise per unit of power sold during every financial year to the State Government for raising local area development fund effected by the Project (s).
29
General Conditions
89
GOVERNMENT OF ASSAM POLICY FOR SMALL HYDROPOWER DEVELOPMENT

DATED MARCH 2007
Sl. No. 1 2 3 4 5 6 Order Title Identified Potential for Small Hydro Power Applicable to Participation Prequalification Description Summary No. PEL.196/2002/199 dated March 2007 Policy for Development of Small Hydropower (SHP) 2007 117MW SHP up to 25 MW Independent Power Producer (IPP)/Users Society to bid for identified projects. Pre-qualification shall be based on the balance sheets, annual reports, past experience, financial and technical capacity etc. Prequalification criteria shall be specified in Bid Documents. 7 Pre-feasibility Studies (PFR)/DPR 8 Period of Project 9 Process of Allotment (A) (B) Weightage to be given for financial capacity, technical capability and past experience etc. Merit list to be prepared based on pre-qualification criteria of the applicants who bid for the identified projects. List of identified projects with estimated capacities available with Govt. ASEB/GENCO to prepare PFR/DPR. Evacuation arrangements to be specified in the PFR/DPR. Thirty five years from the date of award To revert back to Govt. of Assam (GOA) or extended further on mutually agreed terms after 35 years On the basis of competitive bidding and direct allotment to pre-qualified IPPs /user society depending upon the preparedness of the site Through competitive bidding for which PFR/DPR is available : Through advertisement Applications to be accompanied with non refundable draft of Rs. 25,000 for projects below 1MW ,Rs. 1lac for 1to 5MW and Rs.2lac above 5MW payable to ASEB/GENCO. All Bidders will be subject to pre-qualification Pre-qualified Bidders to be provided with PFR/DPR. Bids shall be invited for minimum premium of Rs 1 Lakh/MW payable upfront to Govt. of Assam. Project to be allotted to the highest bidder Successful Bidder to deposit premium within 2months or any other specified period. Successful bidder to be permitted to provide 50% of the bid amount in excess of the threshold as a bank guarantee encashable at the time of actual or scheduled financial closure, whichever is earlier Bidder to deposit full amount over and above the threshold amount at the time of actual or scheduled financial closure, whichever is earlier In case of identical premium for any site, a gradation list based on pre-qualification criteria shall be the basis for allotment.
90
Compendium of State Government Policies on Renewable Energy Sector in India (C) Projects for which PFR/DPR is not available to be allotted to pre-qualified bidders : Through advertisement Applications to be accompanied with non refundable draft of Rs. 25,000 for projects below 1 MW ,Rs. 1lac for 1to 5 MW and Rs.2lac above 5 MW payable to ASEB/Sucessor Company All Bidders will be subject to pre-qualification Merit list of bidders to be prepared according to pre-qualification criteria and projects allotted to bidders IPPs/Users Soceity may propose any feasible potential site with verifiable feasible PFR/DPR to Govt. for allotment Application fee and bid amount to be payable as B above Projects to be allotted on first cum basis
10 Facilitation to be provided by the Government
For efficient interaction with other Govt. Departments, the GOA shall declare ASEB/ Successor company as Nodal agency subsequently ASEB/ GENCO shall constitute a technical body and nodal officer for clearing of project proposal. Application to be disposed of within a period of 60 days. IIPs / Users society to obtain all the requisite clearances. Documents/clarifications to be submitted by IIPs / Users society to the Nodal Officer for clearances from the respective Departments within 30 days. In case of no intimation within the stipulated time, necessary clearance to the project deemed to be granted. Land to be allotted/ sold at premium/lease, case wise and form part of bid document. A steering committee shall be constituted by GOA to provide single window clearance for the project. A high power committee headed by Chief Secretary shall be constituted by GOA for redressal of problems and policy matters for the project HT consumer upto 5 MW within Assam Local grids which are not connected to ASEB/Successor Company main grid To rural power distribution entities Any consumer outside the state or to ASEB/Successor Company All sales to be approved by the AERC. Group of rural consumers to any rural interior area in a stand alone and distribution system subject to fulfillment of requirements of AERC. Infrastructure facilities of ASEB/DISCOMs/TRANSCO to be made available to all IPPs/ Users society for wheeling the generated energy Wheeling charges for bulk purchaser/third party consumer inside or outside the state to be determined by AERC No wheeling charges are applicable for sale to ASEB/Successor Company in case power is supplied to ASEB/DISCOMs ASEB/DISCOMs/TRANSCO to prepare a standard wheeling and banking agreement which will be made available prior to any bidding for projects, where applicable
11 Allotment of Land 12 Sale of Power 13 Wheeling Charges
Compendium of State Government Policies on Renewable Energy Sector in India 14 Evacuation of Power 15 16 Banking Despatch
91
ASEB/ GENCO to determine the evacuation facilities and the same would be specified in the application form ASEB/ GENCO to carry out the implementation of evacuation facilities at charges to be mutually agreed. Cost of transmission lines in excess of 5 kms to be borne by the IPPs/ user society and ASEB/ GENCO on mutually agreed terms and conditions
Allowed within fixed period span of 6 months Priority for despatch in to the Grid ahead of merit / any other source of supply subject to any overall restrictions on the proportion of power that may be bought from such sources, which may be imposed by the Govt. / Regulator. Project up to 5 MW No royalty provided entire energy generated is sold within the state of Assam Above 5 MW, a royalty @Rs.0.25 per unit of net energy generated will be paid to GOA by IPPs/ Users society. To be reviewed after 5 years For power projects on irrigation canal fall/ barrages/ dams, a water cess @Rs.0.05 per kWh per year shall be payable by IPPs/ User society to the Irrigation Deptt. or otherwise as specified by the GOA Electricity duty as per law will apply No further levies, taxes, charges to be levied for a period of 10 years from the date of this policy No entry tax will be levied by the GOA on power generation & transmission equipments except on building materials for projects Finance and physical incentives for SHP development available from MNRE, GOI shall be facilitated /extended to IPPs/ Users society
17
Royalty/ Duty/ Taxes
18 Incentives by Central/ State Government 19 20 Transfer of Allotment Time Limit
Free transfer of shares in the companies allotted projects. (i) (ii) IPP shall sign a MOU with Nodal Agency for development of the project within a month of the issue of allotment letter by GOA IPPs/User society shall submit applications for statutory clearances after carrying out confirmatory survey and investigation within 6 months from the date of allotment or any other period deemed fit by GOA. Failure to do so within the specified time shall be treated as noncompliance Nodal agency to accord approval of DPR/application within two months from the submission. IPP to enter in to an implementation agreement with the nodal agency within one month from the date of approval of the project. IPPs to achieve the financial closure within 12 months from the date of receipt of all statutory approvals & clearances. Project to be made operational within 36 months from the date of receipt of all statutory approvals & clearances. Failure to reach milestones (i & ii above) will result in automatic cancellation of allotment of site and forfeiture of upfront premium amounts. No compensation would be payable to IPPs/User society in such cases. Failure to reach milestones (iii above) would result in a liability to pay a penalty by IPP to Govt. of GOA. Penalty to be computed at the equivalent royalty revenue that would have been payable to GOA had the project met the milestone. In case the project enjoys an exemption from royalty in the initial years, the duration of royalty exemption would be reduced by period of delay.
(iii)
(iv) (v) (vi)
(vii) (viii) (ix)
92
21
Compendium of State Government Policies on Renewable Energy Sector in India Surrender of Allotment In case the project is not found techno-economically viable on completion of DPR, IPP/User society may surrender the allotment within the stipulated time frame to GOA. On surrender, premium amount paid in excess of threshold premium to be refunded back to IPP/User society. Preparation of the standard wheeling and banking agreement draft. Determination of evacuation requirements and overseeing banking, dispatch and royalty arrangements. The above to be drawn before six months of commission of a SHP Preparation of pre-feasibility studies, carrying out the bidding process and monitoring of the development of allotted projects / delivery as per time schedule. ASEB/GENCO will not participate in bidding process. However, after allotment, upon request from the IPP/Users society, ASEB/GENCO may consider participating as a minority partner or perform certain tasks for the bidder on a consultancy basis. Release of water in canals will be under control of Irrigation Deptt. IPPs/Users society will be allowed to utilize acquired canal land for power generation on lease for a period of 35 years. IPPs/Users society to obtain consent from Irrigation Department for design of works which have bearings on safety and operation of canals Cost of remodeling/improvement of works of existing irrigation schemes/ projects due to SHP projects shall be borne by IPPs/Users society.
22 Role of ASEB/GENCO/ DISCOMs/TRANSCO 23 Role of ASEB/GENCO
24
Role of Irrigation Department GOA
25 26
Regulatory Over Sight Due Diligence
Aspects of this policy that require regulatory approvals would be subject to such approvals in the manner approved by the Regulator. Applicant / IPP/Users society shall be responsible for carrying out due diligence with regard to his compliance responsibilities under various applicable central / state / other laws, rules and regulations and ensure compliance with the same. Vested with the Government of Assam
27
Power to Resolve Difficulties
93
BIHAR RENEWABLE ENERGY DEVELOPMENT AGENCY

POLICY GUIDELINES FOR PRIVATE PARTICIPATION FOR DEVELOPING NON CONVENTIONAL ENERGY SOURCES
Sl. No. 1 2 3 4 Title Operative Period for Incentives Eligibility Land Acquisition Item Details Policy Guidelines for Developing Non-Conventional Energy Sources 5 Years with immediate effect. Any Industry, Institution, Private Agency, Partnership Firm, Consortia, Panchayat, Co-Operative Or Registered Society. 5 Process of Allotment Government land, if available, at the site selected by the developer may be leased to him Government may assist in the acquisition of non-government private land. Alternatively, the developer may himself purchase private land, duly informing the Government for the use to be made of the land. The Government of Bihar (GoB) or Bihar State Electricity Board (BSEB) / Bihar State Hydroelectric Power Corporation (BSHPC)/Bihar Renewable Energy Development Agency (BREDA) may invite offers for suitable sites/ projects for development in private sector. The offers will be scrutinized by the GoB and their decision shall be final. Interested developers may also, on their own, select suitable sites/projects and submit proposal to the Government for approval. For projects up to 5 MW capacity, applications/proposals in specified form and conforming to guidelines from entrepreneurs, to the GoB will be sufficient. No approval/license will be needed. For projects of higher capacities, approval of Energy Department will be necessary and decision on such applications will be taken within 3(three) months . Developer to implement the project (including incurring 10% expenditure of the total project cost) within six months of approval/information of the project and allotment of land, otherwise the agreement could be terminated and the site allotted to another applicant. Authorities to enter into agreement within one month of application
6 7 Taxes and Duties Power Purchase and Pricing
Developers to pay all taxes and duties or any other levies, etc. to Central or State Government as per statutory rules in force. Purchase/sale price of power may be fixed by the Bihar Electricity Regulatory Commission. The developer and the third party, to whom electricity is wheeled through the BSEB grid, will be allowed to draw energy for their consumption during maintenance/shut down period of the project as per the prevalent BSEB tariff at that point of time. No restriction on power generation capacity or supply of electricity to the grid. To State grid / BSEB Developer may sell/utilise generated power at the place of generation or at any other place for captive use. Developer may be given license for distribution of power in a specified area.
Sale of Power
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Compendium of State Government Policies on Renewable Energy Sector in India To third party/private consumers through own transmission and distribution system or wheel through the BSEB systems on payment of appropriate wheeling charges . Third party must be an H.T. consumer of the BSEB. In case Developer proposes to sell full or part of its generation to the grid or use the grid for wheeling power to third parties the developer will design the system at their own cost, such that interfacing with the State grid/ BSEB grid is done as per the latters specifications and requirements. The entire cost of project, transmission system for evacuation of power to the nearest State/BSEB grid/sub-station including all metering & the protective instruments shall be borne by Developer.
9 Transmission System and Evacuation of Power
10 11
Wheeling Incentives by State Government
BSEB to extend the facility of wheeling the generated power through its transmission and distribution system as per agreed terms with Developer The projects will be entitled for availing facilities under the policies of the Government of India/ GoB. BSHPC/BREDA will provide necessary information and assistance regarding identification and selection of feasible sites. Loans as per guidelines and incentive/schemes of the Government of India and/or GoB, Indian Renewable Energy Development Agency (IREDA) and MNRE will be offered/available Incentives/concessions to be available as applicable to new Industrial units as per the guidelines of the Industrial Policy of GoB. Concessions as given to industrial units in backward areas will be available to the projects in backward areas. Developer will be allowed to use canal water-fall or river water flow with the consent of the Water Resources Department, GoB for power generation from mini/micro hydel schemes. Water to be released based on Irrigation demand. Developer to give price equivalent to 10% of the power generated to the State Government in lieu of the water rights/cess. If feasible, and water is available at source, developer can develop it at his own cost paying price equivalent to 10% of power generated to GoB A State Level Advisory Council headed by Secretary Energy to be constituted to monitor the progress, implementation and operation of projects.
12
95
GOVERNMENT OF CHHATTISGARH
CHHATTISGARH STATE RENEWABLE ENERGY DEVELOPMENT AGENCY NON-CONVENTIONAL ENERGY POLICIES
Sl. No. 1. 2. 3 Order Title Eligibility Description Summary Notification No. 38 dated April 8, 2002 Policy Directives on Incentives to Units Generating Power From NonConventional Energy Sources. 4 Process of Allotment Every unit, organisation or Private agency setting up RE projects shall be eligible for incentives. Parties may set-up units either themselves or as a joint venture with Chhattisgarh State Renewable Energy Development Agency, (CREDA). Developers to submit their application to Chief Executive Officer (CEO), CREDA with a copy to Secretary, Chhattisgarh State Electricity Board (CSEB) for permission. After approval by CEO, CREDA, the generating unit and also the user unit to enter into agreements with CSEB. Govt. land, if available, will be leased out to the party, keeping in view their minimum requirement, by Industries Department Govt. of Chhattisgarh (GoC), as per their norms. In case of non availability of Govt. land, private land will be acquired by the Govt. and made available to the party at acquisition cost. No service charges will be payable for use of the land. Permission not required for diversion of the land. Party will have to submit information regarding use of land to the concerned District Collector There will be no restrictions on generation capacity. Parties may use the power generated themselves at the point of generation or at any other place or sell it to a third party after obtaining permission from GoC, CSEB. CSEB may purchase the power generated by these units as per circumstances and its requirement. Purchase of Power by CSEB at Rs. 2.25 per unit. For sale of power to a third party, the rates will have to be settled mutually between the generating party and the third party which would purchase the power. Meters and equipments required for the sale of power to be installed by the party at his cost and at the points decided by CSEB. These meters and components will have to be duly approved and tested by CSEB. Electricity generated & sold to third party or consumed by the party itself will be exempted from payment of electricity duty for five years if capacity of power plant is below 25 MW. Exemption will be for three years if capacity of the power plant is 25 MW or above. Transmission/distribution lines and transformers required for transmitting power from generating unit to the nearest grid sub-station of CSEB and also equipments required for synchronizing, protection etc. will be installed
5 Land Acquisition
6 Sale of Power
7 Transmission System and Evacuation
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Compendium of State Government Policies on Renewable Energy Sector in India by the party themselves as per specifications of CSEB, or these can be installed by CSEB at the cost of the party. These lines/equipments will be maintained by CSEB, but the party will be required to pay operation and maintenance charges as fixed by CSEB, from time to time. Wheeling through CSEBs transmission/distribution system allowed on payment of wheeling charges to CSEB at rates fixed by CSEB. State Government will not compensate CSEB towards line losses etc. for the power wheeled.
Wheeling Charges
9 10
Reactive Charges Start Up Power
If the power producer takes reactive power from CSEB, they have to pay reactive power charges to CSEB. If power producer requires start up power for operation and maintenance of the power plant, he will have to pay double the charges of CSEB for 33 kV-two part tariff. New power generating units to be treated like new industry and they will be entitled to all the concessions given to new industrial units.
11
Incentives
97
CHHATTISGARH STATE RENEWABLE ENERGY DEVELOPMENT AGENCY

POLICY ON ALLOTMENT OF SITES INCENTIVE TO SMALL HYDEL PROJECT
Sl. No. 1 2 3 Order Title Objective Description Summary Notification No. 131/DoE/2002 dated 29.08.2002 Policy Directives on Allotments of Sites and Incentives to Small Hydel Projects up to 25 MW. Small Hydel power plants (SHPs) to be generally installed by Private investors. Chhattisgarh Renewable Energy Development Agency (CREDA) may also install SHPs with its own funds or through joint venture company formed by CREDA. Chhattisgarh State Electricity Board (CSEB) may also install SHPs as and when necessary.
4 5 Operative Period Eligibility Criteria
Up to 28.08.2010. Applicant should be a citizen of India. In case the applicant is a company, the company must be registered in India. Applicant/Company should have previous experience and should be technically sound and economically viable unit. Preference to be given to the applicant/company providing benefits of the plant to un-electrified villages and envisages wheeling for this purpose. In case of multiple response for a given site invited by CREDA, the award of site shall be done according to merit list prepared on the basis of criteria given above. In case of multiple response to sites selected by the applicants themselves, the allotment shall be on first come first served basis. Nodal Agency to get the Pre-Feasibility Reports (PFR) prepared and offer site to the Developer. Projects can also be identified by Developer(s) on their own, provided they are not in conflict with the planned/allotted project of Government and irrigation/drinking water plan of State Govt. Nodal Agency to get the permission/ NOCs required from other Departments. A non refundable application fee of Rs. 5/- per kW subject to a minimum of Rs. 10,000/- to be charged from each applicant. Applicant to submit two sets of PFR along with processing fee @ Rs. 25/per kW subject to a minimum of Rs. 25,000/-. Processing fee to be returned if the site is not allotted The entrepreneur to execute the project within maximum period of 3 years from the date of approval of the Detailed Project Report (DPR). Time limits for various stages of the project to be set by CREDA at the time of approval of the DPR. CREDA may cancel the allotment of site in case of non execution of the project within time limits set for various stages of the project or Due to the failure to make the plant operational within a period of 3 years from the approval of the DPR.
6 Projects identification and Allocation Process
7 Agreement Termination
98
8 9 10 Land Acquisition Water Royalty Electricity Duty
CREDA may increase the time limit(s) in case the delay is due to unavoidable circumstances.
Award of land to be done by the District / Division / State level committee / Board constituted under the C.G. Industrial Investment Promotion Act 2002. Water royalty will be payable to Water Resources Department, Govt. of Chhattisgarh at rates prescribed by that department from time to time. No electricity duty shall be payable for five years from the date of commissioning of the SHP installed as the NCE policy of the state announced vide its circular No. 38 dated 08.04.2002 CSEB shall mandatorily buy the excess power after actual captive consumption by the Entrepreneur or sale to third party/sister unit. CSEB to buy this excess power @ Rs. 2.25 per unit. Government may revise this rate from time to time. Cost for evacuation of power like grid interfacing equipment and transmission line to be borne by the Entrepreneur if the transmission line is up to a distance of 2 km. For distances exceeding 2 km, the cost for laying transmission lines to be shared equally by the Entrepreneur & CSEB. However cost sharing by CSEB will be limited up to a max. distance of 5 km. Laying of the transmission line to be done by CSEB. The entrepreneur can wheel electricity to his unit or to a third party or sister concern using the grid of the CSEB. Wheeling charge to be fixed as per policy of CSEB. In case the purchaser unit is out side the state, wheeling charges shall be decided by the SEBs of two states. Allottee cannot transfer the site awarded to him. In case allottee is a company, the actual portion of the promoter equity shall remain non transferable. After commissioning of the project the system can be transferred only with the prior permission of Nodal Agency.
11
Sale of Power
12
Transmission System and Evacuation
13 Wheeling Charges 14 Transfer of Power Plant 15 Co-Ordination /Monitoring
Inter-Departmental co-ordination shall be done by the district / divisional / state level committee / board constituted under the Chhattisgarh Industrial Investment Promotion Act 2002.
99
GOVERNMENT OF CHHATTISGARH STATE RENEWABLE ENERGY DEVELOPMENT AGENCY

WIND ENERGY POLICY
Sl. No. 1 2 Order Title Description Summary Notification No. 1905/2006 dated 7th August , 2006 Wind Energy Policy The policy shall prevail over the general policy declared for promoting generation of power through Non-conventional Energy sources issued in the year 2002.
3 4 5
Nodal Agency Operative Period Projects Identification and Eligible Site
Chhattisgarh State Renewable Energy Development Agency (CREDA). From the date of its publication in the Gazette of the Government of Chhattisgarh until further revision. CREDA to carry out the wind monitoring for the identification of wind power potential in the State. Any renowned wind energy consulting firm or manufacturer of wind energy generators-which is enlisted with the Government of India and is interested in wind energy prospecting, may be permitted to conduct wind monitoring. No two prospectors shall be allowed to conduct studies within 50 km apart. Allotted firm to carry out the monitoring for at least 24 consecutive months and shall have its data verified by the institution recommended by MNRE. After receiving the verified and certified, monitored data the site will be declared as an eligible site. Developer to be selected on the basis of an open tender for the installation of wind energy generators at eligible site . Developer to be given the land use right for the installation of generator at the land within 25 km radius of eligible site. If any private developer identifies an eligible site, then first right for installation of the generator will be given to that developer for the land within 10 km radius of eligible site.
6 Eligibility Criteria
7 8
Statutory Clearances Land Allotment
Necessary approvals for the project from all departments will be accorded as per the provisions of the Chhattisgarh Industrial Investment Promotion act. Government land will be given to the developer for 30 years or life period of project whichever is earlier, in accordance with the requirement conveyed by the Energy department to the Revenue department. If private land is required then the option for its use will be one of the following: (a) Acquisition of land will be carried out as per the ideal rehabilitation policy under land acquisition act of the State Government. Or (b) If land owner opted to give the right to use his land for the project to the developer then developer have to pay an annual rent of Rs. 5000/- per acre to the landowner. Rent to be increased @ 15% every three years.
(c)
100
(d) (e)
Arrangement will be in force for 30 years. Time-limit for land use right can be further increased with the approval from State Government subject to the developer following all terms and conditions of the MOU.
Sale of Power
State Government or its nominated agency shall have the first right to purchase the energy generated by the wind energy generator at the rate decided by Chhattisgarh State Electricity Regulatory Commission (CSERC). In the case of non-purchase of power by the State Government or its nominated agency, developer will be at liberty to sell the power to a third party. Grid interfacing and maintenance to be undertaken by the developer as per the specifications of the CSEB at their own expenses. If developer desire, CSEB could undertake these works, on payment of charges to be decided by it.
10
Grid Interfacing and Maintenance
11
CSEB will undertake to transmit on its grid the power generated by the developer and make it available to him for captive use or to the third party nominated by developer, at the charges determined by the CSERC, irrespective of the distance from the generating station. Wind energy generating companies shall be eligible for all the incentives for new industries, declared in the industrial policy of the Department of Industries of the Government of Chhattisgarh. Such firms will have to abide by the duties laid down in the industrial policy and in all the prevalent policies of the Government.
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Incentives by State Government
101
GOVERNMENT OF GUJARAT
INCENTIVE SCHEME FOR BAGASSE BASED CO-GENERATION
Sl. No. 1 2 3 4 5 Order Title Eligibility Transmission of Power to Grid. Sale of power Description Summary Resolution No. PWR-1096-1905-B dated Nil Incentive Scheme for Bagasse based co-generation Sugar mill/ promoter/ Developer having surplus power available in addition to the captive requirement of the sugar mill. Transmission lines for evacuation of power from co-generation plant to the nearest grid sub-station shall be built by the developer. GEB shall purchase surplus electricity generated by co-generation plant @ Rs.2.25 per kWh with 1994-95 as base year with 5% escalation every year for a period of 10 years from the date of commissioning of the project. Purchase price for the remaining period to be negotiated, subject to final decision of GERC
6 7 Metering Nodal Agency
Metering equipment shall be provided by sugar mills at their own cost at a point decided by GEB. Gujarat Energy Development Agency would function as a nodal agency for implementation of the scheme.
102
SOLAR POWER POLICY DATED 6TH JANUARY, 2009
Sl. No. 1 2 3 Order Title Operative Period Description Details G.R.No.SLR-11-2008-2176-B dated 6th January, 2009 Solar Power Policy 2009 4 5 6 7 InstalledCapacity Capacity Cap Eligibility Qualifying Criteria Date of issue up to 31. 03.2014 Solar Power Generators (SPGs) installed and commissioned during the operative period to be eligible for incentives for 25 years from COD.
A maximum 500 MW SPG shall be allowed for installation during the operative period of policy Minimum 5 MW each, both type Solar Photovoltaic (SPV) and Solar Thermal (ST) Any company or body corporate or association of body of individuals, whether incorporated or not, or artificial juridical person. A. Financial Criteria Internal resource Generation: Rs 1.20 Cr/ MW of capacity, computed as five times the maximum internal resources generated during any of the last five years business operations Net Worth: Rs 2.00 Cr / MW of capacity derived from any of the past three years annual accounts Annual Turnover: Rs 4.80 Cr./ MW of capacity derived from any of the past three years annual accounts Note: Entity to furnish documentary evidence certified by qualified auditors in support of their Financial Capability B. Technical Criteria Entity to have collaboration with proven technology supplier of Solar power projects. Entity must have experience of developing any Projects in the last 10 years whose aggregate capital costs must not be less than the amount equivalent to Rs. 3.00 Cr./MW of capacity The capital cost of at least one Project should be equivalent or more than Rs. 0.50 Cr /MW of the capacity
Note: .For this purpose capital expenditure on Projects that have been completed at least 7 days before the date of submission of proposal to be considered 8 Process of Allotment The entity desiring to set up Solar Power Project , either for sale of power and / or for captive use within the State, to submit a proposal, with requisite details to the Nodal Agency The qualifying entity to be decided by a Project Approval Committee
9 10 11 12 Restriction for use of Fossil Fuel Wheeling Charges Electricity Duty Exemption from Demand Cut
No fossil fuel viz: cola, gas, lignite, naphtha, wood etc. shall be allowed to be used in solar thermal project 2% of the energy fed to the grid, till the Wheeling charges determined by GERC Exempted Exemption from demand cut to the extent of 50% of the installed capacity of SPGs, assigned for captive use purpose shall be allowed
Compendium of State Government Policies on Renewable Energy Sector in India 13 Sale of Energy
103
Energy sold to distribution licensees in the state at levelised fixed tariff per unit as detailed below for 25 years under a PPA Sl. No. (i) Particulars Projects commissioned before 31.12.2010 Other Projects commissioned before 31.03.2014 Tariff for PV Projects (Rs. /kWh) 13.00 (for first 12 years) 3.00 (From 13th to 25th year) 12.00 (for first 12 years) 3.00 (From 13th to 25th year) Tariff for Thermal projects (Rs. /kWh) 10.00 (for first 12 years) 3.00 (From 13th to 25th year) 9.00 (for first 12 years) 3.00 (From 13th to 25th year)
(ii)
Note: Benefits of this policy will not be available to the projects set up under MNRE incentive scheme for SPG Further any subsidy/ incentive received by SPG developers from any source shall be reduced from above mentioned rate for purchase of power from SPG developers except the benefits of Accelerated Depreciation under Income Tax Act 14 Security Deposit 15 16 17 Plant and Machinery Metering of Electricity Grid Connectivity and Evacuation Developer to give Bank guarantee @ Rs.50 lakh per MW at the time of signing of PPA with GUVNL and/ or distribution licensee. In case the developer fails to achieve commercial operation within the time period mentioned in PPA ,the bank guarantee shall be forfeited. The Bank guarantee shall be refunded, if the commercial operation is achieved within the time period mentioned in PPA
Only new plant and machinery shall be eligible for installation under this policy Electricity generated from the SPGs, shall be metered on monthly basis jointly by GEDA/ GETCO at the sending sub-station of 6.6 kV or above located at site. The evacuation facility from the Solar substation/switch yard to GETCO substation shall be initially approved by GETCO after carrying out the system study. Power by the SPG to be injected at 66 kV. Transmission line from the switchyard of the solar substation to the GETCO substation shall be laid by GETCO
18
Open Access for Third Party Sale Forecasting and Scheduling Reactive Power Charges Penalty for Non-Fulfilling Power Purchase Obligation
Granted subject to payment of Open Access charges & losses Cross subsidy surcharge not applicable for open access obtained for third party sale within the state.
19 20 20
Not covered under scheduling procedure for intra-state ABT As per GERC order. Distribution licensee failing to meet minimum solar power purchase/ wheel of captive consumption or third party sale obligation specified by Commission is liable to pay penalty at the rate of Rs.12/kWh to GEDA Penalty not to be linked in case of non-availability of adequate generation from Solar Power Projects
21 23 24 Clean Development Mechanism (CDM) Benefit Mid Term Review Power to Remove Difficulty
Developer will pass on 50% of the gross benefit of CDM to the distribution licensee with whom PPA is signed State Govt. may undertake mid term review of this policy after 3 years or as and when the need arises. Vested with Project Approval Committee
104
WIND POWER POLICY 2007 DATED 13th JUNE, 2007 & AMENDMENT DATED 7th JAN, 2009
Sl. No. 1 2 3 Order Title Operative Period Description Summary Resolution No. G.R. No. EDA-102001-3054-B dated 13th June, 2007 and G.R. No. WND-11-2008-2321-B dated 7.1.09 Wind power policy-2007 and Wind power policy (First Amendment) -2007 20th June, 2007 to 30th June, 2012. Wind Turbine Generators (WTGs) installed and commissioned during the operative period shall be eligible for the incentives for a period of 20 years from COD 4 Eligible Unit Any company or body corporate or association of body of individuals, whether incorporated or not, or artificial juridical person for setting up WTGs, either for the purpose of captive use and /or for selling of electricity in accordance with EA-2003 as amended from time to time. Sites notified by Gujarat Energy Development Agency (GEDA) and or any other sites identified as potential site by the developer. (a) To consumption site at 66 kV voltage level and above: Allowed on payment of transmission charges and transmission losses otherwise applicable to normal Open Access Customer to the locations inside the State.
5 6
Eligible Site Wheeling of Electricity
(b)
Wheeling of power to consumption site below 66 kV voltage level: Allowed on payment of transmission charges and transmission losses otherwise applicable to normal Open Access Consumer and transmission and wheeling losses @ 10% of the energy fed to the grid. For Small investors having only one WTG in the state wheeling shall be allowed on payment of transmission charges, otherwise applicable to normal Open Access Consumer and transmission and wheeling losses @ 7% of the energy fed to the grid.
Note: Wind farm owner desired to wheel electricity to more than two locations shall pay 5 paise per unit on energy fed to the grid to concerned distribution company in whose area, power is consumed in addition to the above mentioned transmission charges and losses, as applicable 7 8 8 Exemption from Electricity Duty Exemption from Demand Cut Sale of Power Exempted, except for Third Party Sale. Exemption from demand cut to the extent of 30% of the installed capacity of WTGs, assigned for captive use allowed Electricity generated from 1st April, 2009 to be sold at rate of Rs. 3.50 / unit for entire period of PPA, with approval of GERC. GUVNL/ Distribution licensee may purchase surplus power from WTGs wheeling power for their captive use after adjustment of energy against consumption at recipient unit(s) @ 85% of tariff applicable to WTGs (commissioned in same tariff block). Provision to be applicable for WTGs commissioned under this policy, from the date of issue of the amendment .
9 10 Third Party Sale of Energy Land
Allowed as per GERC order. WTGs may be set up on private land, or revenue waste land/ GEDA land if available.
Compendium of State Government Policies on Renewable Energy Sector in India 11 Plant and Machinery 12 13 14 15 Metering of Electricity Reactive Power Charges Nodal Agency Renewable Purchase Obligation (RPO)
105
Only WTGs which are approved either by MNRE, GoI, or by recognized international test house, to be eligible. Second hand WTGs are not eligible.
On monthly basis jointly by GEDA/ GETCO at the sending sub-station of 66 kV or above, located at wind farm site. As per GERC order. Gujarat Energy Development Agency. Each distribution licensee to purchase electricity generated from all RE sources (Wind/ Solar/ Biomass/ Bagasse Cogeneration/ Mini/Micro Hydel etc) equivalent to a minimum of 10% of its total consumption of electricity during a year or as per GERC order. Distribution licensee failing to meet the RPO is liable to pay penalty to GEDA Penalty not to be levied in case of non availability of adequate generation from Wind power Projects. From Wind farm substation to GETCO substation within the range of 100 km shall be erected by the developer at their own cost and beyond this limit GETCO to erect the evacuation facility. Voltage level for evacuation shall be at 66 kV and above. Developer to give bank guarantee @ 5 lakh per MW to GETCO based on allotment of transmission capacity. Incase the developer fails to achieve commercial operation within the time period (as per policy) the bank guarantee shall be forfeited by GETCO.
16
Penalty for non Fulfilling Power Purchase Obligation
17
Grid Connectivity and vacuation Facility up to GETCO Substation
18 Security Deposit 19 Renewable Energy Certificate
GEDA shall develop suitable mechanism for issuance of "Renewable Energy Certificates" at market based tradable instrument to promote renewable energy in the state.
106
GOVERNMENT OF HARYANA
POLICY FOR GENERATION THROUGH RENEWABLE ENERGY SOURCES, DATED 23-11-2005
Sl. No. 1 2 3 4 Order Title Objective Potential Description Summary GoH, Renewable Energy Deptt. Dated 23-11-2005 Policy for Promoting Generation of Electricity through Renewable Energy Sources To involve Private Sector participation in Renewable Energy Sources based power projects in the State. 5 6 Operative Period Nodal Agency Biomass - 1400 MW Cogeneration - 100-150 MW SHP - 45 MW Solar - 320 Sunny days in a year Municipal waste - 17 MW
From the date of notification till a new policy is notified. Haryana Renewable Energy Development Agency (HAREDA) to co-coordinate all activities relating to Renewable Energy Development including generation of power using non-conventional energy sources. It shall function as a single window clearing Agency for all RE Projects for facilitating necessary clearances and approvals on behalf of the Govt. of Haryana. Companies, Cooperatives, Partnerships, Local Self Governments, State Nodal Agency, Boards & Corporations, Power utilities, Private developers, Public - Private Partnership Companies, Consortia, Registered Societies, NGOs, individuals etc. There will be no restriction on generation capacity or supply of electricity to the grid. Interfacing, from the point of generation to HVPN, UHBVN, DHBVN and any other licensees nearest Light/High Tension (HT) lines etc. as well as maintenance of LT lines will be undertaken by the producer as per the specifications and requirements of the licensee/ utilities Alternatively, these works and their maintenance could be undertaken by the Licensee/ Utilities on behalf of power producers at charges to be decided by the Licensee/ Utilities. HT lines to be maintained by the power utilities as licensee. After commissioning of the project, the power producers to transfer these lines to the concerned power utility as transfer of assets for its maintenance by the power utility till the validity of PPA. Utility to carry out the augmentation of T&D system of sub-station capacity at 33/11 kV or higher capacity, if required at the cost of power producers. Two sets of separate meters to be installed on the H.T. side by the producer. In case of co-generation/ captive power generation two sets of separate meters to be installed, one for export and other for import of power.
Eligible Producer
8 Grid Interfacing
107
Necessary current limiting devices to be installed in the generating equipment by the producer. Capacitors of sufficient rating will also be provided in the equipment to ensure that the power factor is always maintained above 0.8. Plants should have a capacity of at least 1 MW or above. Licensee / Utilities to transmit, on its grid, the power generated and make it available to the producer for captive use or for Third Party within the State as per approved tariff / surcharge, notified by HERC If H.T./ L.T. lines are required to be laid beyond Licensee/ Utilities lines for wheeling the power, then the cost of the same to be borne by the promoter/ power producer. For sale of power to a third party, the name of such party shall be indicated by the power producer at the time of making an application In case of third party sale, licensee/ utilities to have preference over the power generated by the power producers. Third party sale to be allowed when the surplus power is not being evacuated by the licensee/ utilities. Licensee/ Utilities to purchase electricity from new projects set up after the notification of the present policy at the rate to be decided by the HERC. For old captive/co-generation projects which are having surplus power to offer for sale to the power utilities, the tariff shall be negotiated To be allowed by HVPNL/ DHBVN/ UHBVN/ for a period of one year, free of cost. Withdrawal of banked power to be allowed only during non-peak hours. If the banked energy is not utilized within a period of twelve months from the date of power banked, it will automatically lapse and no charges shall be paid in lieu of such power
9 Wheeling Charges
10 Sale of Power (Purchase Price) 11 Banking
12 13
Electricity Duty Water Charges (Royalty)
Exempted Allowed to use water for power generation through micro/ mini/ small hydel plants. No royalty will be charged on the water used for power generation for non-consumptive use.
14 15
Local Area Development Tax Fuel / Raw Material for Cogeneration Plants
Exempted on plant, machinery, equipment that has been capitalized as per provisions of section 5(f) of Haryana Act No.13 of 2000. Co-generation projects to be designed to use non-fossil fuels. The use of conventional fossil fuels to be allowed as per MNRE policy . "Fuel cost pass through" not permitted as the tariff in these cases will be fixed taking into consideration the normal availability of non-fossil fuel for 240 days per annum only.
16 17
Incentives Tenure of Power Purchase Agreement
All new projects to be treated as "Industry" in terms of Industrial Policy, 2005 and all the incentives available to new projects to be applicable. Minimum period of 20 years or more depending on the plant's life. After this period, it shall be re-negotiated between power producer and concerned power utilities/ licensee. However, power utilities shall have the first right to refuse in case, it does not want to buy the power for period beyond 20 years State Govt. to acquire land if necessary at the cost of Independent Power Producers (IPP) if a request to that effect is made.
18
Land Acquisition
108
Compendium of State Government Policies on Renewable Energy Sector in India Setting up of RE Projects in the Agriculture Zone to be permitted by the Town & Country Planning Department without levying of conversion charges. Bidding to be evaluated by the Technical Appraisal Committee (TAC) constituted by the State Government When the site is identified by the IPPs, the proposal and DPR to be submitted to HAREDA HAREDA to invite proposal through press advertisement. Technical Appraisal Committee to (TAC) to appraise the proposal Project up to 5 MW capacity will be considered and approved by the Board of Governors of HAREDA on the recommendations of TAC within two months time. For the projects above 5 MW capacity, a High Powered Committee, under the chairmanship of Chief Secretary, Govt. of Haryana to consider the report of TAC, and approve/ reject the proposal Once the proposal has been approved by the Board of Governors of HAREDA / High Powered Committee, HAREDA to enter into an MOU with the private investors for preparation of DPR and implementation of the project within one months time. After approval of DPR by the HAREDA, private investors to enter into PPA with the concerned power utilities/ licensee, within two months , for the sale of power to it or to the third party after approval from (HERC) In case there is delay beyond two months then either party can approach HERC for decision in this matter within another two months. If the applicant does not take effective steps (i.e., at least 10% of the total project cost should be incurred) to implement the project within six months from the date of signing of PPA, the Agreement could be terminated and the site allocated to another applicant. Security deposited to be forfeited.
19
Invitation of Proposal
20
Process for Setting of Projects
109
HIMACHAL PRADESH
SMALL HYDRO POWER POLICY - 2006 AND AMENDMENTS (UP TO 5.0 MW)
Sl. No. 1 Description Projects Classification 2 Reservation/ Preference 3 Eligibility Summary Projects Identified by the IPPs as Self Identified Projects. Projects Identified by HIMURJA SHP up to 2.00 MW capacity reserved for the bonafide Himachalis / and Cooperative Societies comprising of the bonafide Himachalis. While allotting projects up to 5.00 MW, preference to be given to the bonafide Himachalis. Any Private Investor / PSU/ Co-operative Societies comprising the bonafide Himachalis Not more than 3 projects to be allotted for implementation to an IPP. Conditions to be relaxed for self identified projects of IPPs who have commissioned any HEP in State & no IPP should have more than 3 HEPs under execution. Applications to be received, after every six months, through advertisements issued by HIMURJA including self identified sites. Applications to be scrutinized by HIMURJA and approved by the Government. Private Investors to visit the potential sites to ensure that the Project components do not fall in the restricted zones and for verifying various project related parameters, before submitting their offers on the prescribed format. Application to be accepted in the prescribed format along with the application fee of Rs. 5000 & requisite documents. Application for the same name of the project already allotted upstream/ downstream not to be accepted at the proposed site. IPP may apply for more than one project, on separate application for each project. Applications to be assessed on the basis of various parameters viz. Financial & Technical Strength & Project Development Experience of the Bidders. IPP to submit Pre-feasibility Report (PFR) of the Project along with essential documents: (i) (ii) (iii) (iv) In case of the bonafide Himachali Promoter Directors /Cooperatives, a proof thereof to be furnished to HIMURJA/ Government. Details of the Company, individual equity share holder(s) with complete address, Tel. No./Fax No. etc. Himachal Pradesh (HP) Government reserves the right to reject any or all offers without assigning any reason. IPP to establish its corporate office in HP after the allocation of the Project Financial capability Technical capability Personal interaction 60 marks 30 marks 10 marks
Process of Allotment
Allocation of marks to Himachalis would be as under : (a) (b) (c)
110
Compendium of State Government Policies on Renewable Energy Sector in India However, to qualify the financial capability, minimum assets (both movable & immovable) should not be less than Rs. 10.00 lacs. After the allotment of the Project site(s) the allottee firm to fulfill the following pre -requisite criteria:(a) Furnishing of the Processing Fee (non-refundable) For bonafide Himachali, Rs. 25,000/- up to 2 MW Beyond 2.00 MW up to 5 MW Rs.25,000/- + Rs.10,000/- per MW for the capacity exceeding 2 MW. For others, Rs. 2.00 lac per Project. If an IPP enhances the capacity of already allotted Project after TEC / signing of IA then the IPP to furnish the processing fee afresh at the rate specified above.
(b)
Furnishing of Security charges (refundable) Security charges from the bonafide Himachali shall be as follows:(i) Up to 2MW - Rs. 50,000/- in shape of Bank Guarantee or (ii) Rs. 25,000/- in the shape of Demand Draft.
Beyond 2MW up to 5 MW- Rs. 75,000/- in the shape of Bank Guarantee or Rs.35,000/- in the shape of Demand Draft.
For others, the security charges will be paid in cash or by way of demand draft @ Rs. 50,000/- per MW.
SHP sites up to 5 MW which stands cancelled and TEC stands accorded to be considered for reallotment on the basis of advertisements. The allottee firm shall have to sign the MOU with the Government of Himachal Pradesh, within a stipulated date specified in the allotment letter. Up-front premium for SHPs above 2 MW and up to 5 MW to be charged in the following manner and shall be deposited by the Developer before signing of MOU: (A) For new Projects: (a) (b) (B) Upfront premium Exempted for projects up to 2 MW. Above 2 MW and up to 5 MW - Rs. 45,000/- per MW with the ceiling of Rs. 75,000/- (Non-refundable) in shape of Bank draft
For Projects where DPRs are ready and could not be allotted before and cancelled after due consideration Projects up to 5 MW : Rs.10,000/- (fixed) + cost of DPR Rs.75,000/- in the shape of Bank guarantee or Rs.35,000/- in the shape of D.D as per norms of MNRE
Beyond 2 MW up to 5 MW :
Upfront premium, processing charges and other security deposits shall not form part of the Project cost, & to be borne by the Developer. If Developer does not prepare DPR within 3 months of signing of MOU, MOU to be terminated automatically and bank guarantee forfeited. Developer to prepare DPR within 24 months from signing of MOU
111
DPR to be accorded Techno-economic clearance (TEC) by a committee to be constituted by HP Govt. before signing of Implementation Agreement (IR). Government of Himachal Pradesh to sign IA with the Developer within a period of 30 months from the date of signing of MOU. IPPs to obtain all the statutory/non statutory final clearances from all concerned Departments, after paying the prescribed fee within six months of signing of the IA, failing which the agreement automatically stand cancelled. Extension in this period, which is not due to force majeure reasons, may be allowed by levying an extension fee of Rs. 10,000/- per MW per month with maximum extension up to six months only and in case of established force majeure conditions up to six months without extension fee subject to the approval by the Government. In case of augmentation of capacity of already commissioned Projects by an IPP following capacity addition charges shall be levied, before according approval by the Government: (a) (b) (c) 0.50 MW and below Above 0.50 MW to 1 MW Above 1 MW Rs. 1.00 lacs Rs. 2.00 lacs Rs. 5.00 lacs per MW
Other charges such as processing fee, security deposits as specified above shall be payable by the IPP in addition to above charges. 5 Enhancement of Capacities 6 Land Acquisition IPPs to carry out the Environmental Impact Assessment (EIA) studies. If the aggregate capacity of the Projects in the cascade exceeds 5 MW the expenditure to be 1.5 % of the total Project cost. Enhancement of capacities allowed subject to levy of 3% additional free power over and above existing free power royalty 3% additional power not applicable if enhancement of capacity is up to 20% of originally allotted capacity In case where additional 3% is levied , additional upfront payment for advancement is not to be levied Provision under "The Himachal Pradesh Transfer of land (Regulation) Act, 1968 in Tribal Areas to be adhered to. Land, whether the private or Government except for permanent structures to be taken only on lease basis at the rates approved by the Government for the agreement period. Government to acquire land for the permanent structures by invoking the emergency clauses under the Land Acquisition Act, 1894. Government may consider the request of IPP for changing the name of Company or Consortium. Promoter(s) to be allowed to sublet/transfer its right by way of merger, change of management, Power of Attorney, by transfer, lease, mortgage or any other such possible means accrued under the MOU / IA to any other Himachalies or Cooperative societies comprising of such Himachalis at any stage The Company, 'if ROR Project' to ensure minimum flow of 15% water immediately downstream of the diversion structure of the Project all the times including lean seasons from November to March. The Company to build development works in the vicinity of the Project area for the benefit of local population.
7 Equity Participation
Rehabilitation and Re-Settlement
112
Compendium of State Government Policies on Renewable Energy Sector in India Expenditure on such works to be incurred by the Company to the tune of 1% of the Project cost. Amount on account of Local Area Development to be paid by Developer to Deputy Commissioner of the Project Affected Areas in equal installments starting from the date of signing of the IA till the COD. HPSEB to purchase power @ Rs. 2.50 per unit Third party sale within the State allowed for SHP Project where cost of generation is above Rs. 2.50 per unit It is obligatory for IPP to submit third party sale proposal within State, wherever peak load demand exists, duly approved by HPERC along-with the DPR for accordance of TEC Final Tariff rates to be determined by HPERC after the Financial closure.
Sale of Power
10 11 Banking of Power Transmission System and Evacuation
Allowed, as per prevailing rules and regulations Interfacing including Transformers, panels, kiosks, protection, metering, H.T. Lines, from the point of generation to the HPSEB nearest feasible H.T. sub station as well as maintenance to be undertaken by the Developer at his own cost. Alternatively, the above works and their maintenance could be undertaken by the HPSEB, at charges decided by the HPSEB & payable by the Developer. Developers may erect common dedicated transmission lines for joint evacuation of Power from two or more projects by way of suitable Consortium Agreements. Government of Himachal Pradesh to provide grid connectivity to the small HEPs in rural areas to provide "Off grid" solution To be payable in case of non-availability or partial availability of evacuation system beyond the interconnection point and / or backing down instructions from the State Load Dispatch Centre (SLDC). To be payable when water spillage exceeds 480 hours in a year and only where evacuation system is connected to manned 22 kV sub-stations declared as control sub-stations by the Board/33 kV/EHV Sub-stations of HPSEB. The benefit on account of deemed generation not allowed where captive use / third party sale is to be made outside the State A. Following not to count towards the Deemed generation:(i) Loss of generation at the Station due to the interruptions / outages attributed to lasting for a period of less than 20 minutes at a time. Loss of generation at the Station on account of Force Majeure event(s).
12 Deemed Generation
(ii) B.
Period of outage/interruption on account to such factor(s) shall be reconciled on monthly basis and the loss of generation of the Station counting towards Deemed Generation after accounting for the events above, shall be computed on following considerations: (i) If such period falls within the first twelve months after the COD the generation envisaged for the month in which such period falls, based on inflows relating to 75% dependable year as per the hydrological data contained in the Approved DPR; and If such period falls subsequent to first twelve months after the COD the generation actually achieved including the Deemed
(ii)
113
Generation, if any, in the corresponding months of the previous year or the one envisaged in that month based on inflows relating to 75% dependable year as per the hydrological data in the approved DPR whichever is less. C. HPSEB to pay for the Saleable Deemed Generation on the basis of the deemed generation after deducting on deemed basis the corresponding quantum of Govt. Supply, auxiliary consumption, transformation and transmission losses in deemed delivery of power at the interconnection Point. For working out benefit accruing on account of deemed generation any loss in generation during the first year of the operation of the plant shall be based on the hydrological data in the DPR relating to 75% dependable year. During the subsequent years, deemed generation shall be payable up to actual generation in previous years / 75% dependable year generation, whichever is lower
D.
13
Wheeling Charges
To be determined as per policy of HPSEB / SERC at that time. Wheeling for captive use within state allowed at a fee of 2% (including losses) For sale/ captive use of power out side state 1% including (system losses) of the energy received excluding Royalty. Royalty on water usage for sale of power within State as free power to the State from SHP up to 5 MW, is waived off for 12 years reckoned after 30 months from the date of signing of IA. Beyond 12 years, the royalty to be @ of 12% for next 18 years and beyond that @ 18%. 12 years relaxation in royalty shall however not be applicable to the Projects which make captive use of power outside the state or make third party sale outside the state. In that case, the royalty @ of 12% reckoned after 30 months from the date of signing of IA of the Project shall be applicable. Private Investor to pay all taxes and duties or other levies etc. to the Government of India/Himachal Pradesh Government After financial closure, within the time period of six months specified in the IA, the developers to submit a copy of the documents submitted to the Financial Institutions / Banks along with a copy of the loan sanctioned. Incentives/concessions offered by the MNES / H P Government to be applicable for all SHPs up to 5 MW. Final decision of the actual capacity of the Project shall rest with the Government. MNRE, Capital Subsidy Scheme for setting up of commercial SHPs up to 25 MW Station Capacity in Himachal Pradesh. MNRE to provide capital subsidy through Financial Institutions. Subsidy will be independent of quantum of term loan and will be limited to the amount indicated below :
Up to 100 kW 45% of Project cost limited to Rs. 30,000/per kW From 101 kW to 999 kW 45% of Project cost limited to Rs. 30.00 Lacs + Rs. 21,625/- per kW. From 1 MW up to 25 MW 45% of Project cost limited to Rs. 30.00 Lacs + Rs. 21,625/- per kW.
14
Royalty
15
Taxes & Duties
16
17
Incentives by MNRE, Govt. of India
A.
114
Compendium of State Government Policies on Renewable Energy Sector in India B. MNRE Scheme for providing promotional incentives for Detailed Survey & Investigation (DSI) and preparation of DPR for SHP sites up to 25 MW potential in Himachal Pradesh. Following promotional incentives under SHP programme of MNRE will be applicable in the form of grant-in-aid as per the amount given below or actual cost incurred for carrying out DSI and preparation of DPR
Up to 1 MW Rs. 1.75 lacs Above1 MW up to 10 MW Rs. 3.00 lacs Above 10 MW & up to 25 MW Rs. 5.00 lacs
Eligibility Criteria: (i) The promotional incentives for DSI Report and DPR are applicable to the developers who are the owners or have been allotted the Project site by the State Government. Proposals to carry out DSI to be considered for identified hydel sites where feasibility studies have been completed, and PFR enclosed.. 18 Intellectual Property Right The above incentives are subject to modifications from time to time.
(ii)
Developer to establish, own, operate and maintain the Project for a period of 40 years, after 30 months from the date of the signing of the IA (irrespective of extensions in the time period of the IA granted on any account). Thereafter, the Project shall revert to the State Government free of cost and free from all encumbrances. IPP to inform the local Police Station and the Labour Officer about the details of the labourers and other work force engaged, regularly. Company to provide minimum 70% employment to the bonafide Himachalis whose names are registered in Employment Exchange located in the State, for all unskilled/skilled staff and other non -executives required for execution, operation and maintenance of the Project. IPP to give an undertaking to the Fisheries Department of the local area that wherever feasible, rearing of fish shall be promoted by the IPP in consultation with the Fisheries Department in the Project area at the time of final implementation of the Project. Fisheries Department to charge compensation @ Rs. 0.50 lac / KM from Tail Race to weir of the Project and Rs. 0.50 lac / MW from IPPs. It will be mandatory to utilize this amount on the same stream / nallah or elsewhere and formulate schemes accordingly. Developer to stick to the time schedule for the investigations of the Project and submission of the DPR etc. Progress to be reviewed by a committee on quarterly basis. In case of default, H P Government have the right to cancel the MOU, forefeit the security and allot the Project to any other party or take it over itself without paying any compensation to the Private Investor. Private Investor to allow access to the authorized representative(s) of the Government /HPSEB / any other Agency authorized by Government to all locations of the Project to ensure compliance in this respect. Projects assets to be maintained by the developer on the condition that would ensure a residual life of the Project at the rated capacity for at least 30 years at any point of time. During the 10th, 20th, 30th & 35th years of operations, the Government or it's agency to carry out a mandatory inspection of the Project site.
19 Employment Opportunities
20 Monitoring of Projects
115
If the Project capacity or life is being undermined by inadequate maintenance, the Government of HP to seek remedial measures from the developer. If the developer fails to comply with the requirement, the Government shall have the right to take over the commercial operation of the Project and shall have full right upon the sale of power including Developer's share. Cost on account of suggestive remedial measures to be deducted from the sale of Developer's share of metered power including the O & M cost for such a period till the Project's assets are restored . Thereafter, the Project shall be handed over to the developer. Any difference and /or disputes arising at any time to be resolved by the parties hereto by mutual negotiations, failing which the matter shall be referred to the Arbitrator. However, all disputes shall be settled within the jurisdiction of Courts of Himachal Pradesh
21 General Conditions
22 Capacity Enhancement
Project Capacity Enhancement from below 5 MW to above 5 MW capacity , the 'additional Free Power ' Royalty will be charged on enhanced capacity in full and no exemption from free power royalty will be permitted. Two Years time to be given to IPPs for preparation & submission of DPR for according TEC otherwise allotment stand cancelled and project will be allotted to other IPP. IPPs to give Royalty to State @ 6% for first 12 years, 15% for next 18 years and 24% for next 10 years . The projects will revert back to State Govt. after expiry of 40 years from Scheduled COD. Provision of minimum assets of Rs. 10.00 lakhs is to be as eligibility for processing the Application in respect of Himachalli IPPs.
23
Self Identified Projects
116
HIMACHAL PRADESH
HYDRO POWER POLICY - 2006 & AMENDMENTS - JAN 2008, JAN & FEB 2009 (ABOVE 5 MW)
Sl. No. 1 2 Title Projects Classification Description Summary Generation - Projects above 5 MW Capacity 3 Eligibility Projects above 5 MW to 100 MW installed capacity identified under category -I, for allotment for implementation in Private Sector Allotted through Memorandum of Understanding (MOU ) route. Any Private Investor /Co-operative Societies comprising of the bonafide Himachalis. Not more than 2 projects to be allotted for implementation to an IPP . Company / Consortium to be selected on the basis of their equity in implementation of the Project & Company to retain their equity participation till three years after commissioning of Project IPPs to develop Projects either as Run of River (ROR) schemes or Storage Projects (SP). For SP, approval of State Government required to ensure minimum submergence of Habitations & Agricultural holdings. To be advertised through Notice Inviting Proposals (NIP) for Global invitation of Bids Developer can submit Bids for one or more Projects separately Bids as well as Processing Fee to be submitted separately for each Project Allotment on the basis of tentative installed capacity as mentioned in NIPs through Competitive Bidding Route. Bidders to quote a fixed Upfront charges of Rs.20.0 lac / MW capacity of Project and 'Additional Free Power' at a uniform rate over & above Royalty Charges, in all the 3 time bands of Royalty charges of12%, 18% and 30% of the deliverable energy up to 12 years, next 18 years and balance agreement period beyond 30 years. From concept to commissioning Transmission system for evacuation of power to form part of project and included in DPR Allowed subject to levy of 3% 'Additional Free Power' over & above the existing free power Royalty only if the enhancement is more than 20% of the Capacity originally allotted. When capacity enhancement is below 5 MW to above 5 MW, the additional free power royalty will be charged on enhanced capacity in full. Besides the additional free power as mentioned above . Where 'Additional Free Power' is levied, the additional Upfront Premium for enhancement not to be levied. Proposals to be examined and processed by concerned Agency Agency to submit proposal to State Govt. with their recommendations. Evaluation to be done as per criteria set by HPSEB for allotment of Projects under International Competive Bidding (ICB). The allotted Elevations of Projects will be indexed stream-wise & uploaded on Website of concerned Agency
4 Process of Allotment
Scope of Work
Capacity Enhancement
7 Self Identified Projects
117
Proposals to be considered for allotment on 'First Come First Serve' basis If Scheme is clashing / overlapping with any allotted Project, Proposal to be returned to identifier. Identifier allowed to participate in Bidding without any processing Fee and Bid Document issued free of cost. In case Identifier is unable to quote highest Bid in its offer under ICB, he will be offered Project at highest bid received if his offer is short by 30% of highest bid otherwise it will go to Highest Bidder. Upfront Premium of Rs. 20 lakhs / MW shall be charged from successful bidder as per the prevailing Policy on ICB basis IPPs to be given 'Two Years" time for preparation & submission of DPR for according TEC, failing which allotment stand cancelled. Govt will be free to allot it to another IPP. Upfront Premium @ Rs. 20.00 lakh / MW to be paid by IPP within 30 days of issuance of letter of allotment. Rate of Royalty to be 15% for first 12 years, 21% for next 18 years and 33% for balance period of 10 years Projects to revert back to State Govt. , free from all encumbrances after 40 years from scheduled COD.
8 Milestones
Milestone
After project allotment, MOU/ Pre-implementation Agreement or Implementation Agreement (IA) to be signed and following milestones to be achieved.
Time Period Consequential Action Projects where DPR / PFR ready Projects where Feasibilities to be ascertained by IPP - 50% at signing of MOU - 25% at signing IA - 25% at Financial Closure 30 days from signing of MOU One year from signing MOU -doCancellation of MOU Cancellation of MOU & forfeiture of Security Deposit /Upfront Premium -do-doCancellation of MOU & forfeiture of Security Deposit /Upfront Premium -doCancellation of allotment & forfeiture of Security Deposit/Upfront Premium Termination of IA & forfeiture of Security Deposit/Upfront Premium
(i) Upfront Premium
- 50% at signing of MOU - 25% at signing of IA - 25% at Financial Closure
(ii) Security Deposit (iii) Compendium of (a) Hydrological Data (b) Geological/ Geophysical Data (iv) Topographical Surveys (v) Feasibility/Non feasibility of Project
30 days from signing of MOU One year from signing MOU -do-
-do-
-do-doOne year from signing MOU
(vi) Power Evacuation One year from signing MOU Envisaged by Company (vii) Submission of DPR (viii) Signing of Implementation Agreement with Govt. (ix) Submission for TEC/ Statutory/Non-statutory Clearances/Land Acquisition 18 months from signing of MOU - 36 months from signing MOU - 30 months if DPR is ready & prepared by HPSEB Within 8 months from date of signing of IA
24 months from signing of MOU 42 months from signing of MOU
Within 8 months from date of signing of IA
118
(x) Obtaining Govt. Approvals/ Sanctions as per (ix) above (xi) Financial Closure/ Signing PPA/Start of Construction Work
Within 10 months from date of Submission of Proposals by Company Within 24 months from date of signing of IA or 6 months of obtaining Clearances/ Approvals, whichever is earlier As per Techno-economic Clearance of the DPR 40 years after Scheduled COD
Within 10 months from date of Submission of Proposals by Company Within 24 months from date of signing of IA or 6 months of obtaining Clearances/ Approvals, whichever is earlier As per Techno-economic Clearance of the DPR 40 years after Scheduled COD
Extension of Period subject to deposit of Rs. 10000-/ MW/month subject to max. Rs. 50 lacs Termination of IA & forfeiture of Security Deposit / Upfront Premium
(xii) Project Commissioning (xiii) Handing over of Project to Government
Disincentive as per Clause stipulated in IA Action as deemed fit
9 10
Statutory Clearances Agreement Termination
Concurrence of the competent authorities to be obtained as per the procedure applicable from time to time Agreement to remain in force up to a period of 40 years from COD Thereafter, the Project shall revert to the State Government free of cost and free from all encumbrances. Any change in Consortium / equity participation would terminate MOU /IA and Project to revert back to Government without any compensation. Developer is permitted to withdraw from Project if not found technoeconomically viable. The security and 50% of the upfront premium deposited shall be refunded without interest. Company consortium to be selected on basis of their equity participation Company to retain their equity participation till three years after commissioning of the project. Government may consider the request of IPP for changing the name of Company or Consortium provided that Promoter(s) retain the controlling interest ie 51% equity in the new entity. In the event of any contravention, State Govt. to terminate the IA forthwith at any stage. Free transfer of shares permitted in the Company's allotted Projects . Company permitted to incorporate a Special Purpose Vehicle (SPV) for implementation of Project with its registered office within HP with the same equity participation. All rights & obligations under this agreement to be transferred to new company Company to ensure opening its office in the State. The Second Party, 'if ROR Project' to ensure minimum flow of 15% water immediately downstream of the diversion structure of the Project throughout the year. For determination of minimum discharge, the average discharge in the lean months ie from Dec. to Feb. to be considered. However Second Party is at liberty to install mini hydel projects to harness such water for their captive use, subject to prior approval of State Govt. Activities of Local Area Development Committee (LADC) during execution of the Project it self and developer to keep a provision of 1.5% of the Project cost. Amount for local area development to be paid to Dy. Commissioner/ Chairman, LADC in equal installments during construction of projects in Ist quarter of every FY starting from date of Financial closure.
11
Equity Participation
12 Rehabilitation and Re-settlement
119
13 Disposal of Power
Developer to keep Govt. informed of change in construction cost and release the installments accordingly. Company to provide employment to one member of each of the displaced families as a result of acquisition of their land for Project Company to provide Training to the locals affected by Project Developer shall be free to dispose off merchant power as per Govt. of India Guidelines / provisions contained in Electricity Act-2003 Govt. of HP /HPSEB to have right of first refusal on sale of such power as remains after meeting commitments of Royalty in the shape of Free Power, Additional Free Power& Merchant Sale of Power, on Tariff to be determined by HPSERC and also for all SHP projects where IPP intend to use for its captive consumption within the State. . Developer to make arrangements for evacuation of Power from Project to Board's / PGCIL's Sub station (Interconnection Point) as per the provision in DPR. Beyond Interconnection Point, Developer to tie up the transmission system with HPSEB / PGCIL at mutually agreed wheeling charges. Developers to provide Royalty in the shape of free power to the Govt. of HP in lieu of surrender of potential site @ 12% of the Deliverable Energy of Project for 12 years starting from date of synchronization of the first unit/scheduled COD, whichever is earlier Royalty to be 18% for next 18 years and beyond that @ 30% beyond 30 years
14
15 Royalty
16 Incentive for Early Commercial Operation of Project
If Project's Commercial Operation is achieved before scheduled COD, the quantum of free power to govt. shall be as : From date of first unit synchronization to COD of Project - 12% of Deliverable energy From COD to scheduled COD (a) 12% of Deliverable energy less two tenth(0.2) percentage points for each period of 73 days (or part thereof) falling between the COD & scheduled COD 12% of Deliverable Energy for a period of 12 years from scheduled COD
(b) 17 Disincentive for Delayed Commercial Operation of Project
If Project's Commercial Operation is delayed beyond scheduled COD, the quantum of free power to govt. shall be as : From date of first unit synchronization to scheduled COD of Project - 12% of Deliverable energy Commencing from Scheduled COD & the number of days COD is delayed beyond scheduled COD (a) 12% of Deliverable energy plus two tenth (0.2) percentage points for each period of 73 days (or part there of) falling between the scheduled COD & COD. From COD up to the date falling (12) years from scheduled COD of the project - 12% of Deliverable energy. Developer to pay the amount of free power component as above (a & b) in 10 equal monthly installments from actual COD in addition to normal free power due.
(b) (c)
18
Incentives by MNRE, Govt. of India
A.
MNRE, Capital Subsidy Scheme for Setting up of commercial SHPs Up to 25 MW Station capacity In Himachal Pradesh. MNRE to provide capital subsidy through Financial Institutions.
120
Compendium of State Government Policies on Renewable Energy Sector in India Subsidy is intended for making re payment of the term loan provided to Developer of the SHP Projects by the Financial Institutions. Subsidy to be released after successful commissioning and commencement of commercial generation . Quantum of subsidy to be independent of quantum of term loan and limited to 45% of Project cost - limited to Rs. 2.25 Crores + Rs. 37.50 Lacs per MW
B.
MNRE Scheme for providing Promotional Incentives to Carry out Detailed Survey & Investigation (DSI) and preparation of Detailed Project Report (DPRs) for SHP sites up to 25 MW potential in Himachal Pradesh. Incentives under SHP programme to be applicable in the form of grantin-aid as per the amount given below or actual cost incurred for carrying out DSI and preparation of DPR by the State/developers, whichever is less. Up to 10 MW Rs. 3.00 lacs Above 10 MW & up to 25 MW Rs. 5.00 lacs
Eligibility Criteria: Promotional incentives for DSI Report and DPR applicable to the developers who are owners or have been allotted the Project site by the State Government for SHP development. Proposals for DSI to be considered for identified hydel sites where prefeasibility studies have been completed, and the PFR enclosed.. Proposals for preparation of DPR to be considered for SHP sites where DSI have been completed, and DSI report enclosed.
The above incentives are subject to modifications from time to time. 19 20 Carbon Credits Employment Opportunities Sale of equivalent Carbon credits by Developer to be through competitive process amongst buyers. Company shall inform the local Police Station and the Labour Officer about the details of the labourers and other work force engaged, regularly. Company to provide employment to the bonafide Himachalis whose names are registered in employment exchange located in the State, in respect of all the unskilled/skilled staff and other non -executives as may be required for execution, operation and maintenance of the Project. On non-availability of the requisite / qualified manpower, Company could recruit persons from outside the State after getting non-availability certificate from Labour Commissioner / Director Employment. Company to ensure employment to not less than 70% of the total employees/ officers/ executives from bonafide Himachali persons. IPP to give an undertaking to the Fisheries Department of the local area that wherever feasible, rearing of fish shall be promoted by the IPP in consultation with the Fisheries Department in the Project area at the time of final implementation of the Project. A Multi-disciplinary committee to review, on quarterly basis, the implementation of Project, Employment, Relief & Rehabilitation , Time & Cost overruns of Project (if any) , Payments etc. In case of default, the H P Government shall have the right to cancel the MOU,. Projects assets to be maintained by the developer in a condition that would ensure a residual life of the Project at the rated capacity for at least 30 years at any point of time. During the 10th , 20th , 30th & 35th years of operations, the Government or it's agency to carry out a mandatory inspection of the Project site
21
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If the Project capacity or life is being undermined by inadequate maintenance, the Government may seek remedial measures from the developer. If the developer fails to comply with the requirement, the Government shall have the right to take over the commercial operation of the Project and have full right the sale of power including developer's share. Cost on account of suggestive remedial measures to be deducted from the sale of developer's share of metered power including the operation & maintenance cost for such a period till the Project's assets are restored . Thereafter, the Project shall be handed over to the developer. To overcome any kind of natural calamity, Company to prepare Disaster Management Plan & its implementation and include in DPR. Company to ensure that the material excavated from site shall be dumped in the area approved by Ministry of Environment & Forests, GoI /State Pollution Control Board. Developer to reimburse to HPSEB the amount spent by Board on investigations and infrastructure works of Project, up to signing of IA with compound interest @ 10%/ annum within 3 months of signing of IA. Any difference and /or disputes arising at any time to be resolved by the parties hereto by mutual negotiations, failing which the matter to be referred to the Arbitrator. However, all disputes shall be settled within the jurisdiction of Courts of Himachal Pradesh Company to make financial provisions for mitigation of adverse impacts as per the approved EIA plan, Environment Management plan etc at the project cost Company to ensure to protect the water rights of the local inhabitants for drinking and irrigation purposes Note: Govt. of HP its Notification No.MPP-F(1)-2/2025-V dated 30-11-2009 has notified that the second party shall provide an additional 1% free power over and above 12% free power from hydel project for local area development fund.
22 Disaster Management
23
General Conditions
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JAMMU & KASHMIR POLICY FOR THE DEVELOPMENT OF SMALL HYDRO POWER
DATED 09-10-2003
Sl. No. 1 2 3 4 5 6 Order Potential for Hydro Power Applicability Applicable to Participation Prequalification Description Summary No. 211 PDD of 2003 dated 09-10-2003 20000 MW From the date of Notification SHP up to 25 MW as notified by Jammu & Kashmir State Power Development Corporation (J&KSPDC) Independent Power Producer (IPP) to bid for identified projects. Prequalification criteria shall be specified in Bid Documents. 7 Pre-feasibility Studies 8 Period of Project 9 Land Allotment Weightage to be given for financial capacity, technical capability and past experience etc. Applicants will be graded and listed based on balance sheet, annual reports and other evidence of financial and technical capacity J&KSPDC to prepare pre feasibility studies. Evacuation arrangements to be specified in the pre-feasibility studies. Forty years from the date of award To revert back to Govt. of J&K or extended further on mutually agreed terms after 40 years IPP to acquire private land at their own cost Government land to be given on lease for 40 years Construction of approach roads, water and power supplies to be done by IPP All necessary assistance to be provided by the Power Development Department / Corporation For canal fall schemes, availability of water in the canal will be subject to irrigation demand and the IPP does not have any right for additional water for power generation Through advertisement Applications to be accompanied with non refundable draft of Rs. 1,00,000 payable to J&KSPDC All Bidders will be subject to pre-qualification Pre-qualified Bidders to be provided pre-feasibility studies prepared by J&KSPDC Bids shall be invited for minimum premium of Rs 2 Lakh/MW payable to Govt. of J&K Highest Bidder to deposit premium / other amount due, within a period specified in Bid. Successful bidder to be permitted to provide 50% of the bid amount in excess of the threshold as a bank guarantee encashable at the time of actual or scheduled financial closure, whichever is earlier In case of identical premium for any site, a gradation list based on prequalification criteria shall be the basis for allotment
10
Compendium of State Government Policies on Renewable Energy Sector in India 11 Sale of Power 12 Wheeling Charges
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In case any project fails to get any acceptable Bid despite being bid out twice, the Govt. of J&K may allot the site to a GOJK agency. HT consumer within J&K Local grids which are not connected to Jammu & Kashmir Power Development Department (J&KPDD) main grid Any consumer outside the state or to J&KPDD All sales to be approved by the Regulator. J&KPDD to provide infrastructure facilities for wheeling the generated energy J&KPDD / J&KERC to determine the wheeling charges for wheeling the energy generated to third party consumers or outside the state For projects which are bid out prior to determination of rate by J&KPDD / J&KERC, the wheeling charges would be 10% of net energy supplied at the interconnection point No wheeling charges are applicable for sale to J&KPDD or local grids within J&K J&KPDD to provide standard wheeling and banking agreement draft prior to bidding of the projects IPPs to lay lines for connectivity to the nearest grid substation normally at 132 kV or 33 kV J&KPDD to determine the specification for evacuation facilities and the same will be specified in the application form. On specific request from IPP, J&KPDD to carry out the implementation of evacuation facilities at charges to be mutually negotiated. Allowed within fixed period span of 2 months to be specified in the standard wheeling and banking agreement Energy banked to be monetised at the average pooled purchase price paid by J&KPDD during the month of banking-in (into the J&KPDD system) and banking-out during the month (of J&KPDD system) respectively Point of Banking would be the interconnection point at which the energy will be fed in the J&KPDD system Developer to pay the difference between monetised value of the banked - in and the banked - out energy and the peak period differential adjustment within a period of 30 days failing which a penal interest will be levied on the outstanding amount. In case of a balance to the credit of developers, it shall be payable by J&KPDD within 30 days with a penal interest on overdue settlement
13 Grid Interfacing/Transmission Line 14 Banking
15 Despatch
Priority for despatch in to the Grid ahead of merit / any other source of supply subject to any overall restrictions on the proportion of power that may be bought from such sources, which may be imposed by the Govt. / Regulator. Exempted for first 15 years of operation on sale of power out side the state/ J&KPDD / consumers in rural areas not served or inadequately served by the concerned existing distribution licensee. For sale to other parties or to J&KPDD after 15 years, a royalty of 12% of net energy wheeled, after deducting wheeling charges, or supplied would be charged. There will not be any entry tax on power generation, transmission equipment and building material for projects.
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Royalty (Payment)
17
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Compendium of State Government Policies on Renewable Energy Sector in India Small Hydro Project shall be treated as an industry and few incentives available to industrial units in backward areas shall also be available to these units including toll tax exemption Income accrued from micro hydel projects to be exempted from income tax
18 19 Transfer of Allotment Time Limit
Free transfer of shares in the companies allotted projects. IPP shall submit DPR & applications for statutory clearances within 32 months from the date of allotment. IPPs to achieve the financial closure within 12 months from the date of receipt of all statutory approvals & clearances. Project to be made operational within 48 months from the date of receipt of all statutory approvals & clearances. Failure to reach above milestones will result in automatic cancellation of allotment of site and forfeiture of upfront premium amount. IPP to pay a penalty to Govt. of J&K (GoJK) in case it fails to make operational the plant within the time limit. Penalty to be computed at the equivalent royalty revenue that would have been payable to GoJK had the project met the milestone. In case the project enjoys an exemption from royalty in the initial years, the duration of royalty exemption would be reduced by period of delay. In case the project is not found techno-economically viable on completion of DPR, IPP may surrender the allotment within the stipulated time frame to GoJK On surrender, bank guarantee and premium amount paid in excess of threshold premium of Rs. 2 lacs/MW to be refunded back to IPP
20
Surrender of Allotment
21 Role of JKPDD
Preparation of the standard wheeling and banking agreement draft, determination of evacuation requirements and overseeing banking, dispatch and royalty arrangements. Preparation of pre-feasibility studies, carrying out the bidding process and monitoring of the development of allotted projects / delivery as per time schedule. J&KSPDC will not participate in bidding process. However, after allotment, upon request from the IPP, the J&KSPDC may consider participating as a minority partner (with less than 50% share holding interest) or perform certain tasks for the bidder on a consultancy basis.
22
Role of J&KSPDC
23 24
Regulatory Over Sight Due Diligence
Aspects of this policy that require regulatory approvals would be subject to such approvals in the manner approved by the Regulator. Applicant / IPP shall be responsible for carrying out due diligence with regard to his compliance responsibilities under various applicable central / state / other laws, rules and regulations and ensure compliance with the same. Vested with the Government of Jammu & Kashmir
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KARNATAKA RENEWABLE ENERGY POLICY

2009-14 DATED: 19 JANUARY 2010
Sl. No. 1 2 3 4 5 6 Order Title Applicability Time Period Scope of Policy Applicable Description Summary No. EN 354 NCE 2008 BANGALORE, DATED 19th JANUARY, 2010 Karnataka Renewable Energy Policy 2009-14 From the date of Notification Valid for 5 years up to 2014 Development of all sectors of Renewable Energy sources including Energy Conservation and Energy Efficiency All RE projects sanctioned prior to commencement of the policy, projects under development and those already commissioned. The policy covers the Energy Efficiency and Energy Conservation along with Demand Side Management (DSM) and Clean Development Mechanism (CDM) implementation
Sale of Power
It is obligatory to sell the electricity generated from RE projects to the respective geographical ESCOMs in which the project is located, at the Tariff determined by KERC Installed Capacity and Proposed Targets for 2009-14 RE Source Potential Installed (MW) Capacity (MW) Wind Power Mini and Small Hydro Cogeneration in Sugar Industry Biomass/Bio-gas Waste to Energy Total 12950 3000 1500 1000 135 18500 1368 416 535 81 2400 Capacity Addition by 2014 (MW) Target 2969 600 281 300 50 4200
Potential Proposed to be harnessed by 2014
Land for RE Projects
Government to provide land for development of RE Projects under Land Revenue Act to Karnataka Renewable Energy Development Limited (KREDL) Amendments to be made in the Karnataka Land Reforms Act to enable the developers to purchase private land directly from owners of the land. For waste to energy projects, Municipal bodies to identify and give the land to KREDL through Karnataka Industrial Area Development Board. Land owner farmers to be equity partners in the RE projects for equity not less than 5% of gross energy generated 10% barren Government lands reserved for industrial use at declared renewable energy sites will be given to KREDL for developing the land for RE projects Forest land identified for RE projects to be processed within a period of 4 months Identified revenue, private and forest land to be developed by KREDL.
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Compendium of State Government Policies on Renewable Energy Sector in India KREDL will sub-lease the developed land to developer for 30 years. After 30 years the project stands transferred to Government Land-Lease rent will be as per the prime landing rate over current market price on the date of handing over the projects Various Statuary Clearance for RE projects will be dealt by KREDL with concerned department and agencies. Developers to apply in prescribed formats to different departments and give a copy to KREDL KREDL to pursue with concerned department for approval and clearances within 90 days of the applications submitted for all departments/agencies and 120 days for forest clearance Issues pending for longer period to be placed before the Quarterly Review Meetings held at the level of Chief Secretary, Government of Karnataka KREDL to obtain all statuary clearances before handing over lands for RE project
10
Statuary Clearances
11 12 Renewable Energy Special Economic Zone (SEZ) Implementation of Renewable Energy Projects Allotment Committee
10% of all SEZ land will be kept at the disposal of KREDL for development of RE projects RE project identified by KREDL will be offered for development on Public Private Partnership/Build Own Operate Transfer Mode specially in wind and mini hydro projects A committee under Chairmanship of Principal Secretary, Energy Department will consider for allotment of capacity of the RE projects to the private entrepreneurs A state level empowered committee under the Chairmanship of Chief Secretary to provide single window clearance to projects which are not accorded clearances/approvals within the specified time period KPTCL to provide transmission lines and developers to bear the cost of lines from the project site to the sub-stations as per grid norms It is mandatory for the developer to commission the project with grid synchronization within a period of 3 years from the date of statuary clearance Generation of electricity from RE sources to be treated as industry under provisions of Industrial policy 2009 and incentives available to industrial units to be extended to RE projects State Government is committed to procure RE power subject to KERC guidelines and reserves the first right of refusal or purchase of power Energy supply companies / Distribution licensees to procure power at tariff determined by KERC After the plant completes 11 years, it has to sell power to Energy Supply Companies on tariff based on variable cost as per KERC norms KERC has determined solar tariff at Rs. 3.40 paise/unit. MNRE supported solar grid connected projects of 1MW and above have incentive up to Rs. 12/kWh for solar PV and Rs. 10/kWh for solar thermal projects in addition to tariff allowed by KERC. Same incentives to be applicable to solar grid connected projects as per this policy Roof Top grid connected solar kWp projects of 5 kWp to 100 kWp to be connected at 415 V, 3 phase, 11 kV level of distribution licensees with maximum energy injection to be not more than 70% of the consumption from distribution licensee sources Injection exceeding 70% of consumption in a billing period not to be considered for commercial purpose, neither the deficit to be carried forward to next billing period
13
14
Single Window Clearance
15 16 17
Evacuation Arrangement Time Limit for Project Completion Regulatory Issues and RE Obligation
(i) Solar Tariff Incentives
(ii) Roof Top Solar Tariff
Compendium of State Government Policies on Renewable Energy Sector in India (iii) Wheeling Charges 5% Allowed for energy banked with KPTCL/Distribution licensee (vi) Settlements
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The above power will be eligible for a tariff of Rs. 3.40 /kWh along with net metering facility Incentive from MNRE to be passed on to the developer Roof top system will be eligible for any other subsidies extended to the roof top projects Solar Photo Voltaic systems below 2 kWp will be battery backed isolated stand alone systems Isolated Solar Photo Voltaic sources up to 200 kWp will be for Rural Applications
(iv) Banking of Electricity (v) PPA
Sale of electricity by developer to be governed by PPA witnessed by KERC PPA to be executed in a time bound manner Power Company of Karnataka Ltd. to assign PPAs to ESCOMS with back to back arrangements All transactions between KPTCL/ESCOMS/Distribution Licensees and the Developer involving wheeling or sale of power to be settled on monthly basis KPTCL/Distribution licensees to pay interest on payment delayed beyond a month @ SBI short term PLR for delayed amount for actual period of delay
(vii)
Grid Tie Policy and Net Metering Exemption from Demand cut
Grid connected solar power system installed on commercial establishment and individual homes to get net metering facility to feed excess power back to the grid with power credits accruing to the photovoltaic energy producer 50% of the installed capacity assigned for captive use To be determined by the Government Incentives allowed by MNRE/Government of India regarding detailed survey and investigation/DPR, generation based incentive etc. to be passed on to the developer through KREDL As per industrial policy 2009-10 VAT on RE equipments, instruments and energy efficient power saving appliances directly purchased by consumer to be considered for suitable revision under Karnataka State Sales Act Government to facilitate Biomass power plant with an enabling Tariff atmosphere in co-ordination with KERC ESCOMs to extend facility of LC to the developer for realizing payment in scheduled period for power sold to ESCOMs. Cost of opening of LC to be reimbursed to ESCOMs by KREDL
(viii)
(ix) Security Deposit & Royalty 18 (i) Policy on Financial Incentives
(ii) (iii)
Entry Tax Value Added Tax (VAT)
(iv) Incentives for Biomass Power Generation Projects (v) Letter of Credit (LC)
(vi) Registration
Various agreements executed by developers with different Government departments other than land leased including forest land leased to be considered for revision of registration fee State level committee to guide on the issues Energy auditing and energy efficiency measures will be mandatory for all industrial and commercial installation of 600 kVA and above contract demand Rebate in electricity bill for domestic users at the rate of Rs 100 per month for installation of solar water heaters
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Energy Conservation & Energy Efficiency Measures
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Compendium of State Government Policies on Renewable Energy Sector in India Energy Conservation & Energy Efficiency Measures are mandatory for all public utilities Large Industries with 2000 kVA and above connected load to produce at least 5% of their requirement through captive power plant using RE sources KREDL to offer identified windy sites for development on Public Private Participation/Build Operate Own and Transfer (BOOT) mode restricted to 50 MW at a given area each time In case of potential in the said location, further allocation to be considered after successful commissioning of allotted project Only three sites to be considered Government waste land in windy locations identified for industrial development to be offered for wind projects Projects more than 10 years old to be considered for augmentation with efficient higher capacity wind turbine generators Small wind generators up to 10 kW to be promoted for stand alone systems KPTCL to be considered for allotment of wind power projects above 500 MW and solar projects above 100 MW Certain geographical regions have been reserved for allotment of wind power projects to KPTCL KREDL to identify potential for development on Public Private Participation/ Build Operate Own and Transfer (BOOT) mode Mini Hydro projects in the Western Ghats Districts/Forest areas will be restricted to maximum 5 MW and preferably Run of the River (ROR) projects PICO hydel projects less than 10 kW will be identified by KREDL in fast track mode and central financial assistance of 90% of the PICO hydel projects cost provided by MNRE to be passed on to eligible beneficiaries
20
Wind Projects
21 Small Hydro Projects
22 23 24 25
Biomass Projects Co-generation in Industry Benefits under CDM Facilitation
Government waste lands to be identified and offered to setup biomass projects Industries to be encouraged for co-generation by extending capital subsidy scheme as one time grant subject to surplus power fed to grid KREDL will facilitate to avail CDM benefits for RE projects KREDL to be the Nodal Agency for development of renewable energy, energy efficiency and energy conservation programmes and implementation of RE policy and all related works Developer to make suitable financial provisions for taking care of all environmental issues RE projects to provide employment to local peoples in respect of unskilled/ skilled staff and other non-executives for execution and O&M of the project High level inter departmental review committee to be constituted to regularly monitor implementation of all provisions of the policy Vested with Government of Karnataka
26 27 28 29
Environmental Issues Local Employment Monitoring Amendment/Relaxation etc
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GOVERNMENT OF KERALA
RENEWABLE ENERGY POLICY
Sl. No. 1 2 3 Order Title Objective Description Summary G.O.(MS) No. 16/2002/STED, dated 03.04.2002 Kerala Renewable Energy Policy 4 Nodal Agency Development, propagation and promotion of Non-conventional Energy sources. Provision of single window services for project clearance etc. Agency for Non conventional Energy and Rural Technology (ANERT) It will co-ordinate all activities relating to Renewable Energy Development & function as a single window clearing agency for all renewable energy power projects including small hydel power plants up to and including 3 MW, for necessary clearances and approvals. Kerala state Electricity Board (KSEB) will be the authority for SHP projects above 3 MW and up to 25 MW. Companies, co-operative, partnerships, Local Self Governments, registered societies, NGOs, individuals etc. Power producers generating grid-grade electricity including power producers from 'stand alone projects' using Non-conventional Energy Sources SHP Power producers having installed station capacity of and below 25 MW Power producers generating electricity for captive consumption Interfacing, including transformers, panels, kiosk protection, metering, HT lines from points of generation to the nearest HT line etc. as well as their maintenance will be undertaken by the producer as per the specifications and requirements of KSEB, at producers cost. Alternatively, these works and their maintenance could be undertaken by the Board at charges to be decided by the Board. KSEB to undertake augmentation of the sub-station capacity and transmission lines including laying of transmission lines The producer to install meters to measure the outflow and inflow of energy based on KSEB instructions. Power procured by KSEB from SHP at a ceiling rate of Rs.2.50 per unit and from other RE sources at ceiling rate of Rs. 2.80 per unit with 200001 as base year and 5% escalation every year for 5 years There after the rate shall be mutually settled between KSEB and the producer, in all cases of Renewable Energy sources including SHP. In special cases, the committee will study and recommend to Government for considering a higher tariff. All transactions between KSEB and producer involving wheeling, banking or sale of power to be settled on a monthly basis 100% for the period from June to February every financial year. Allowed from March to June Producer can take this banked power back only during the period from June to February in the same financial year.
5 Eligible Producers
6 Grid Interfacing
7 Sale of Power (Tariff)
8 Banking
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Compendium of State Government Policies on Renewable Energy Sector in India Accounting to be done at the end of every financial year. If the banked energy is not utilized at the end of the year, it will lapse and the same can be purchased by KSEB at the average selling rate of KSEB applicable during the corresponding year.
Wheeling
KSEB to transmit on its grid the power generated by producer and make it available to him for captive use or for banking, at a uniform wheeling charge of 5 per cent of energy fed into the grid, including transmission loss KSEB to initially bear the expenditure for erection of high- tension sub stations and transmission infrastructure. ANERT to recover 50 per cent of this expenditure from the power project promoters and give it to KSEB. Developers to bear the cost of transmission lines from the sub station to the project and all other related equipment such as metering arrangement and protection system, capacitor banks etc.
10
Evacuation Arrangement
11 12 13
Settlement Power Purchase Agreement Security
All transactions involving wheeling, banking or sale of power to be settled on a monthly basis. KSEB and eligible producers to enter into a Power Purchase Agreement (PPA) for a minimum period of five years. KSEB to provide facilities of an irrevocable, divisible, revolving and confirmed stand by Letter of Credit (LC) by any Nationalised Bank. The amount of LC to be equal to the Expected Payment for one month by Board.
14
Incentives by State Government Entry Tax/ Octroi refund Use of Energy Conservation Device Statutory Regulations
All new projects producing power from Renewable Energy Sources to be given industry status under the schemes administrated by Industries Department and incentives to be made available to them. Exempted Mandatory to Conserve Energy. Large Industries having 2000 KVA and above as connected load, should produce at least 5 per cent of their requirement through captive power plants using RE Sources Choice of Green Pricing is given to interested customers, who choose to pay extra for the energy generated from RE Sources (Green Energy). An appraisal committee with representatives from ANERT, KSEB, Power Department (Government of Kerala) and two or more experts in the corresponding field (depending on the type of project) to be constituted to co-ordinate matters relating to different renewable energy projects.
15 16 17
18
General Conditions
131
GUIDELINES FOR DEVELOPMENT OF WIND FARMS IN PRIVATE LAND
Sl. No. 1 2 3 4 Order Title Objective Eligibility Description Summary GO (MS) No.7/2007/PD dated 11-05-2007 & Amendment GO (Rt.) No. 295/08/ PD dated 22.11.2008 Guidelines for Development of Wind Farms in Private Land To ensure optimum utilization of natural resources to suit the overall development of the state. Any individual, Company, Body corporate, Partnership firm, Joint venturewhether incorporated or not, Artificial judicial person Any person, as defined in Electricity Act-2003, who intends to set up captive generating plants for its own consumption within the State. Preference for allotment for setting up Wind farms as captive generating plants to be given to HT / EHT industrial consumers having settled undisputed dues with KSEB / State Utility /Local bodies. Government not to allow development of wind farm as CPPs by power intensive units and units which do not strictly adhere to the pollution control standards laid out from lime to time. Developer to obtain Technical approval from Agency for Non-conventional Energy and Rural Technology (ANERT) Developer to submit technical proposal in the prescribed format after conducting survey/investigation and finalization of Wind Electric Generators (WEG) to ANERT. A Demand Draft in favour of Director, ANERT, towards non-refundable processing fee, to be sent along with the technical proposal. Technical proposal with out Demand draft will be rejected Certified copy of title deeds and copy of sale agreement / lease agreement /consent letter from owner of the land to be submitted along with the technical proposal. Documents relating to the proposed land to be identified by ANERT According technical approval, to the proposal no way indicates confirmation of any right of the developer on the proposed land. ANERT to scrutinize and take a decision on the technical proposal within a period of 120 days from the date of receipt. ANERT to inform developer for any defect within 60 days from the date of receipt of proposal and give the developer one month time to resubmit the proposal after rectifying all the defects. Developer to proceed with the implementation of the project if the Technical Proposal is not rejected within 120 days after receipt of modified proposal by ANERT. Technical approval shall be valid for 2 years from the date of issue. On getting technical clearance, DPR to be submitted by the developer to ANERT before starting the installation work. Technical proposal to cover all aspects connected with the development of the Wind farm including technical specifications of WEGs, details of the proposed land, information of the location of WEGs, spacing between WEGs boundary clearances, evacuation plan etc.
5 Procedure for Technical Approval (Proposed)
6 Technical Proposal
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Compendium of State Government Policies on Renewable Energy Sector in India 7 Infrastructure Development Developer to ascertain the feasibility of the site and expected energy output from the Wind farm prior lo submission of technical proposal. Developer at their own cost and responsibility to carry out necessary infrastructure development. Government in consultation with KSEB/STU to fix the development charges from time to time on per Mega watt (MW) basis and the developers to remit the charges to Kerala State Electricity Board (KSEB)/State Tramission Utility (STU). In addition developer to pay development charge to KSEB/STU. KSEB/STU to issue permission for interconnection to the grid on a first come first served basis based on payment of the development charges For small developers proposing to install single WEG, KSEB/STU may permit payment of the development charges in 2 equal installments (one before interconnection permission and other before interconnection) In the case of small developers (proposing to install WEGs of capacity up to 1 mw), KSEB/STU may permit interconnection to the grid on payment of 50% of the development charges and the balance to be paid before interconnection. For technical proposals already under consideration as on 31-12-2006, the infrastructure development charge is tentatively fixed as Rs.20 lakhs per MW which will be finalised in consultation with KSEB and the difference, if any, will be settled between the developer and KSEB/STU Application for interconnection for power evacuation to be submitted to KSEB/STU in the prescribed format with a copy lo ANERT. Application shall contain (a) (b) Technical details of WEGs and their locations. Proposed evacuation plan including specifications of transformer, tie-line, transmission line/sub-transmission line, metering and protective equipment etc. and drawings. Estimate of implementing the above evacuation plan. Non-refundable application fee of Rs.20,000/MW to be paid as Demand Draft in favour of KSEB/STU.
Interconnection Permission
(c) (d) 9 Evacuation Facility
Developer to enter into bulk power supply/wheeling agreement with KSEB/ STU/ Successor entities of KSEB or other buyers for sale of power. Power to be sold to other buyers only if KSEB/ Successor entities of KSEB refuses to purchase power. KSEB/STU to develop the evacuation facility as per master plan prepared in consultation with ANERT to evacuate the power from each of the potential areas. Plan to include construction of pooling station, transmission/subtransmission line from pooling station to KSEB/STU substation and augmentation / up-gradation required for existing substations and grid for further evacuation. KSEB/STU to prepare an estimate including supervision charges payable to KSEB/STU for such evacuation facility beyond and including pooling station. Construction and maintenance of evacuation lines from WEGs to the pooling station to be at Developer's cost and responsibility In case developers undertakes development of evacuation facility, KSEB/ STU may permit such requests upon satisfaction of Developer's technical and financial qualifications.
133
Developer to develop the evacuation facility as per the master plan in full or part as per KSEB/STU design. However in cases where the evacuation facility is developed by the developer in part, that has lo be carried out according to KSEB/STU's proposal and not according to the capacity requirement of the developer. KSEB/STU to reimburse the cost as per the sanctioned estimate for the work after deducting supervision charges. Developer shall be eligible for adjustment of infrastructure development charges in the estimated cost..
10 Metering
Necessary main and check ABT compatible Special Energy Meters (SEM) of 0.2 accuracy class having import-export registering facility as per applicable IEC / BIS standards to be installed at the cost of developer, as per applicable CEA (Installation & Operation of Meters) regulations 2006 with its amendment there upon. C-WET / MNRE approved machines only to be given Technical Approval by ANERT. Technical Proposals with machines under type certification can be submitted and in such cases, a conditional Technical Approval to be given. However, installation can be started only after obtaining permission from ANERT producing the type approval /certification from C-WET. Minimum distance between any two WEGs (existing and having technical approval) is 5 times the diameter of the rotor in the predominant wind direction and 3 times the diameter of the rotor in a direction perpendicular lo the predominant wind direction. The distance from WEGs to the boundary of the plot proposed by developer to be at least half of the rotor diameter plus 5 meters. Site to be inspected by a technical committee constituted by ANERT and its recommendations regarding boundary clearance inter machine spacing etc. shall be binding on developer. Developer to install adequate compensating equipment to maintain power factor more than 0.95 lag. Developer to pay for the reactive power drawn by the WEG's at the rate decided by KSERC. Developer to comply with grid code including load dispatch and system operation schedule, metering, protection code. safety code etc and all accepted codes and prudent utility practices as applicable from time lo time Technical approval is transferable lo investors upon satisfying the Eligibility conditions, as above, if the transferee is ready to abide by terms and conditions on which technical approval had been issued for the project. For transferring the technical approval, the developer to submit a transfer application along with the transferee's undertaking and remit a nonrefundable transfer fee of Rs. 100000/- per MW capacity to ANERT. If the transferring unit is below 1 MW the same to be counted as 1 MW for this purpose.
11
Type Certification
12 Distance between WEGs and Boundary Clearances
13
Technical Requirements
14
Transferability of Technical Approval
15 16 CDM Benefits General Conditions
Benefits of Carbon Credit, if any available, to be shared equally between STU/ buyer and investor Developer to pay taxes, duties and other levies to the Central / State Government as per statutes and rules in force.
134
Compendium of State Government Policies on Renewable Energy Sector in India Developer to develop the Wind farm in accordance with the Technical Approval given by ANERT Any remedial / compensatory measures directed by competent agencies to protect environment or any other activity found necessary by concerned Government Departments/ Local Bodies have to be carried out by the Developer at his own cost. Developer to abide by the rules and regulations framed by the Government. All directions/ approvals/ rules laid down in the relevant Acts/ controls/ rectifications issued by CEA / CERC/ SREB/ KSERC or other Government Departments/ Agencies from time to time as adopted by the Government shall be binding on Developer. In case of dispute, the interpretation of the guidelines by the Government to be final. In all such matters, to the extent possible, an opportunity will be given to the affected stakeholders.
135
GUIDELINES FOR THE DEVELOPMENT OF HYDEL SCHEME BY PRIVATE SECTOR CAPTIVE POWER PROJECTS
Sl. No. 1 2 3 Order Title Eligibility Description Summary G.O. (MS) No.5/2006/PD dated 17-03-2006 Guidelines for the development of Hydel Scheme by Private Sector - Captive Power Projects 4 5 Installed Capacity Capacity Ceiling for Allotment Person as defined in EA 2003 who intends to set CPP for its own consumption within the State. Preference to HT/EHT industrial consumer
To be fixed for each project by the Government Annual generation potential from the projects, not to exceed the annual requirement of the company (based on the past 3 years consumption) plus capacity to be added within the next 5 years from the date of allotment. (i) (ii) Developer to submit Techno Economic Feasibility Report (TEFR) to Government for approval within 15 months from the date of allotment After TEFR approval developer to obtain all statutory clearance and approvals within 12 months of approval of TEFR and financial closure within 6 months thereafter. Project to be made operational within 36 months from date of financial closure. Failure to reach any of milestones i & ii above to result in automatic cancellation of allotment of site and forfeiture of upfront premium and no compensation payable to CPP. If the project is not made operational within 36 months, CPP to pay penalty to Government. Developer may surrender the allotment back if on completion of TEFR within the time frame the project is found techno economically unviable. TEFR to become property of Govt. and 75% upfront premium returned to the developer. Applicant to submit request for qualification (RFQ) and price bid documents (RPF) in the prescribed formats. Pre-qualification evaluation to be based on balance sheet, annual report and evidence of financial capability and technical capability. Weightage to be given to financial capability, technical capability and past experience etc. based on the above criterion. Applicants to be short listed and qualified based on the above. Proposals and Bids of the short listed qualified applicants to be considered for allotment. Bidders to quote premium per MW payable upfront to the Government. Project to be allotted to the highest Bids. Upfront premium to be the primary consideration of allotment. Kerala State Electricity Board (KSEB) to have first right to purchase excess power over the captive consumption. Otherwise CPP is allowed to sell to third party
Milestone for Development of Project.
(iii) (iv)
(v) (vi) (vii) 7 Basis of Allotment
8 Purchase of Excess Power
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Compendium of State Government Policies on Renewable Energy Sector in India Developer to pay surcharge and transmission & wheeling charges as decided by KSREC for energy sold to third party consumer/ distribution licensee/ power trading company. Purchase of surplus power by KSEB, to be at a tariff approved by KSERC Developer to enter in to a wheeling agreement with KSEB/ STU for evacuation of power. Wheeling transaction to be settled on monthly basis. CPP to have open access for carrying power from their plant to their destination of use subject to availability of transmission facility. Wheeling charge and transmission losses to be decided by KSERC. Energy consumption from grid over and above captive consumption to be charged at KSEB rates for that category Developer to construct & maintain the transmission facilities up to KSEB/ STU grid at its own cost Developer to bear the cost of any modification/ up- gradation of sub station of KSEB/ STU which draws power from the project Proposal for transmission facilities and interfacing equipment etc to be submitted to KSEB/STU along with TEFR for approval within 15 months of date of allotment Developer to install & maintain ToD meter and allied equipment as prescribed by KSEB/ STU. KSEB/ STU along with developer to jointly seal meter & metering device.
9 Captive Consumption 10 Transmission Facility and Grid Interface
11 Maintenance
Maintenance of project components, equipment and transmission lines up to the interconnection point to be carried out by the developer at his cost under supervision of KSEB. To cover all cost including civil, electrical and mechanical work, cost of transmission lines up to KSEB grid , up-gradation / modification of KSEB substation. Developer to arrange financial requirement in accordance with the guidelines
12
Project Cost
13 14 Project Repot Project Information
Developer to procure DPR from KSEB for projects where the DPR has been prepared by KSEB KSEB/ any other agency authorized by the government to provide information such as project site, hydrological details, transmission access etc to the bidder on a cost as specified in bid document Main and check meters having import-export registering facility and allied equipment as prescribed by KSEB to be installed at the inter connection point and maintained by the developer at his own cost. Energy fed in to the grid and supplied to the company by the Board to be settled on annual basis. Accounting year : From 1st June to 31st May
15
Metering
16
Accounting
17
Consumption Restriction
Developer to abide by grid discipline & not entitled for any compensation in the event of grid failure, shut down etc. resulting in non consumption of generated electricity. 30 years from the scheduled date of allotment of the project. Thereafter revert back to Government/KSEB or extended further on mutually agreed terms. Developer to pay all taxes, duties and other levies to the Central or State Government as per the rules.
18
Boot Period
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General Condition
Compendium of State Government Policies on Renewable Energy Sector in India All the energy transaction and bills to be settled on monthly basis.
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Project not transferable, other than take over by Government after allotment. In case developer does not commence the work on the project within stipulated time, Govt. reserves the right to cancel the allotment, and take over the project with out giving any compensation. Construction of the project to be strictly as per TEFR and the design specification approved by KSEB Developer to utilise consultancy services of KSEB for field investigation, preparation of TEFR, design specifications, detailed estimates, tender documents etc. at mutually agreed rates and conditions. If developer leaves project incomplete or close the industry or abandon the project or violates allotment conditions, Government reserves the right to take over the project with out compensation and free from all encumbrances. Developer not to pledge, hypothecate or mortgage Govt./ KSEB land with out approval. On completion of BOOT period the entire project components including transmission system shall stand transferred to Govt. in proper working condition free of cost and free of all encumbrances. In case not done so, Govt. may recover the property with all project components without any liability. Any remedial / compensatory measures to protect the environment or otherwise to be carried out by developer at his cost. Any tail race scheme, dam toe and other regulated flows are open only to KSEB/ successor entities. Project to be implemented as per TEFR and any violation which restricts the functions of existing hydel station to result in cancellation of allotment. In the event of any dispute, the interpretation of these guidelines made by Government to be final.
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GUIDELINES FOR THE DEVELOPMENT OF HYDEL SCHEME BY PRIVATE SECTOR ON BOOT BASIS BY IPPS
Sl. No. 1 2 3 4 5 6 Order Title Eligibility Installed Capacity Capacity Ceiling for Allotment Milestone for Development of Project. Description Summary G.O. (MS) No.5/2006/PD dated 17-03-2006 Guidelines for the development of Hydel Scheme by Private Sector - on BOOT basis by IPPs Any Company or body corporate or association or body of individual or artificial judicial person To be fixed for each project by the Government to harness the optimum generation potential Installed capacity of single Hydro Electric Project to be limited to 25 MW (i) (ii) Developer to submit Techno Economic Feasibility Report (TEFR) to Government for approval within 15months from the date of allotment. After TEFR approval developer to obtain all statutory clearance and approvals within 12 months of approval of TEFR and financial closure within 6 months thereafter. Project to be made operational within 36 months from date of financial closure. Failure to reach any milestones i & ii to result in automatic cancellation of allotment of site and forfeiture of implementation guarantee deposit. No compensation payable to IPP. If the project is not made operational within 36 months, liquidated damages to be paid by IPP as per implementation agreement. IPP may surrender the allotment back if on completion of TEFR within the time frame the project is found techno economically unviable. TEFR to become property of Govt. and 75% upfront premium returned to the developer.
(iii) (iv)
(v) (vi) (vii) 7 8 Boot Period Procedure for Selection and Allotment
30 years from the scheduled date of allotment of the project. Allotment through two stage bidding process by inviting tenders. In first stage, applicant to submit request for qualification All bidders to be subject to pre-qualification based on balance sheet, annual report and evidence of financial capability and technical capability. Weightage to be given to financial capability, technical capability and other relevant attributes. Based on the above criterion the applicants to be short listed In the second stage, proposals to be invited from qualified bidders. Proposals and bids of the short listed qualified applicants to be considered for allotment. Criterion for selection of IPP bidder to be the lowest levelised tariff rate for sale of electricity for the entire BOOT period.
9 10 Acceptance of Offer Purchase of Generated Power
Government to accept or reject the offer considering the financial viability of the rate. Kerala State Electricity Board (KSEB) to have first right to purchase power at the bid rates subject to the approval of KSERC. If KSEB does not purchase power, Commission to permit non discriminate open access as per provision of EA 2003.
Compendium of State Government Policies on Renewable Energy Sector in India 11 Transmission Facility and Grid Interface
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Developer to construct & maintain the transmission facilities up to KSEB grid at its own cost KSEB reserves the right to extra power through this transmission line. Developer to bear the cost of any modification/ up- gradation of sub station of KSEB which draws power from the project. Proposal for transmission facilities and interfacing equipment etc to be submitted to KSEB along with TEFR for approval within 15 months of date of allotment
12
Maintenance
Maintenance of project components, equipment and transmission lines up to the interconnection point to be carried out by the developer at his cost under supervision of KSEB. Company to prepare TEFR and submit to the KSEB/ any other agency authorized by Government for evaluation and approval. DPR prepared and data available for SHP to be made available to all bidders on cost
13
Project Report
14
Metering
Main and check meters having import-export registering facility and allied equipment as prescribed by KSEB to be installed at the inter connection point and maintained by the developer at his own cost. Energy fed in to the grid and supplied to the company by the Board to be settled on monthly basis. In case generation is regulated due to constraints in the power system, the generation from the scheme to be regulated/stopped as directed by Load Dispatch Centre (LDC) without any compensation. In extra ordinary circumstances Developer to operate & maintain generating station in accordance with the directive of State Government.
15 16
Accounting Generation Restriction
17 18 19 Water Cess Grid Discipline General Condition
Not required. IPP to operate as per the instructions from State Load Dispatch Centre (SLDC) or KSEB/STU till formation of SLDC Construction of the project to be strictly as per TEFR and the design specifications approved by KSEB/ any other agency authorised by the Government During implementation transfer of ownership to be permitted, subject to approval of Government. Free transfer of shares permitted as specified in bid document/ PPA after project implementation. Developer to commence and complete the project as per schedule prescribed by the concerned authority. Developer to develop the power station at full installed capacity and operate at optimum capacity. Developer to abide by the rules and regulations of Government of Kerala Direction of Govt/ statutory authorities shall be binding on the company. If developer leaves project incomplete or close the industry or abandon the project or violates allotment conditions, Government reserves the right to take over the project with out compensation and free from encumbrances. Any remedial / compensatory measures to protect the environment or otherwise to be carried out by developer at his cost. Developer not to pledge, hypothecate or mortgage Govt./ KSEB land with out approval.
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Compendium of State Government Policies on Renewable Energy Sector in India On completion of BOOT period the entire project components including transmission system shall stand transferred to Govt. in proper working condition free of cost and free of all encumbrances. In case not done so, Govt. may recover the property with all project components without any liability. Developer to pay all taxes, duties and other levies to the Central or State Government as per the rules in force. All the energy transactions and bills to be settled on monthly basis. Project to be implemented as per TEFR and any violation which restricts the functions of existing hydel station to result in cancellation of allotment. In the event of dispute, the interpretation of these guidelines made by Government is final. Tail race scheme, dam toe and other regulated flows reserved for development by KSEB or successor entities and not opened for allocation to IPP Prior sanction of government to be obtained for sale of surplus power out side the State
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GOVERNMENT OF MADHYA PRADESH

POLICY FOR PROMOTING GENERATION OF ELECTRICITY THROUGH NON - CONVENTIONAL ENERGY SOURCES - 2008
Sl. No. 1 2 3 Order Title Eligibility for Incentives Description Details Notification dated 17.10. 2006 & Amendment dated 12.05.2008 Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources Any Industry, Institution or Private unit, (either by itself or as a Joint Venture) Public sector units : Minimum capacity for stand-alone Solar Photovoltaic Unit up to 5 kW. Maximum capacity for other RE Projects based on available potential. Developer to commence & commission the Project in prescribed time limit as given below : Type of Project Project Commencement (months) Wind / Solar Biomass City Waste 3 9 Commissioning (months) 15 30
Note: State Govt. may extend prescribed time limit under unavoidable circumstances. 4 5 Operative Period / Validity Purchase Rate 5 Years Rate of Power generated by RE Sources to be decided by MPERC Rate of Power generated from Wind Energy, (as per MPERC order dated 11.06.2004 & 01.03.2006 ) are as follows Year 1 2 3 6 7 8 9 Third Party Sale Open Access Status of Industry Wheeling
st nd rd
Rate (Rs. /kWh) 4.03 3.86 3.69
Year 4 5
th th
Rate (Rs. /kWh) 3.52 3.36
As per Electricity Act. 2003 Exempted from open access charges. Projects to be given the status of Industry & get Benefits accordingly. Available through M. P. Power Transmission Company. Wheeling charges to be decided by MPERC 4% subsidy is available
10 11 12
Reactive Charges Contract Demand Reduction Land Allotment
Payable as per rates decided by MPERC Industrial units, if a consumer of MPSEB & have a RE Power unit/power consumer, will be allowed reduction in their contract demand. Land use permission @ Rs. 1/- (token) premium /year for 30 years or life of the Project to be given Private land to be acquired by Govt. & made available to Developer at acquisition cost
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Compendium of State Government Policies on Renewable Energy Sector in India 50% exemption on stamp duty on private land. Developer to deposit this amount as Bank Guaranty for 21 months in case of Wind / Solar Project and 36 months for Biomass City Waste Project. Bank Guaranty will be forfeited in case of non completion of Project. Guidelines issued by Ministry of Environment & Forest, Govt. of India and State Govt. to be applicable for Forest land
13 14 Power Evacuation Facilities
All expenses for Power evacuation facility to be borne by Developer (A) Biomass Based Projects (B) No other Biomass project to be allowed within radius of 25 km of the Project This facility to be given only on completion of Project within specified time. Producer to be allowed to use up to 25% conventional fuel based on declared heat rate.
Wind Energy Projects Developer to pay @ Rs. 50,000/- / MW as non-refundable processing fee along with application. (i) BANKING : 100% Banking of generated power is allowed subject to: (ii) (iii) (iv) (v) MPSEB / Distribution Co. to verify documents of banked power at end of each financial year Banked power not to be returned by more than a fixed quantity at a time keeping in view power availability & demand. MPSEB to purchase balance power as per orders issued by MPERC MPSEB / Distribution Co. to charge 2% of Banked power as banking charges.
Permission to be granted for certified WEG by C-WET, Chennai. Transmission lines & related facilities to be provided as per MPERC order dated 11.06.2004 & 01.03 2006 Land use permission for sites certified by MNES / C-WET, Chennai to be only considered. Permission for unidentified locations for carrying out Wind monitoring by Private Institutions to be given by Energy Department / MPUVN & to be certified by C-WET, Chennai . One Private party to be allowed to install Wind monitoring mast at 15 locations at a time. If site found suitable for Wind Farm, the first right to develop it to be given to Private Institution for area surrounding 5 km radius of mast. If Private Institution is not able to complete the Wind monitoring & start project within 18 months time from the date of approval, the Energy Department has right to allot that location to another institution for transfer of project use. Private land including that of Agricultural land to be exempted from Land Ceiling for its acquisition.
(vi) (vii) (viii)
(ix) 15 Sale of Power
Sale of Power from one company to its sister concern to be deemed as captive user of power Power so generated can be utilized by Generator itself or for sale to MPSEB or its Successor Company or sale to any consumer
Compendium of State Government Policies on Renewable Energy Sector in India 16 17 Clean Development Mechanism (CDM) Benefit Exemptions
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Carbon credit related financial benefits (on availability) would directly be given to Investor Non Conventional Energy Plants including accessories equipments are exempted from Entry Tax / Octroi. Value Added Tax (if imposed in future) would be exempted For implementation of the Projects, an Empowered Committee headed by Chief Secretary has been constituted The units which do not intend to take benefits under this Policy to be at liberty to set up Project under Electricity Act 2003.
18
General Conditions
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GOVERNMENT OF MADHYA PRADESH

INCENTIVE POLICY FOR THE DEVELOPMENT OF SMALL HYDRO POWER PROJECTS - 2006
Sl. No. 1 2 3 Title Objective Nodal Agency Description Summary Incentive Policy for the Development of Small Hydro Power Projects in Madhya Pradesh, 2006 To promote generation through Small Hydropower Projects ( Estimated Potential 410 MW) with Private Sector Participation. Water Resources Department (WRD) / Narmada Valley Development Authority (NVDA)/ Madhya Pradesh Power Generation Company Limited (MPPGCL) respectively for projects in their jurisdiction All SHPs up to 25 MW capacity , identified by the WRD / NVDA / MPPGCL or a private developer. All projects allotted by the erstwhile Madhya Pradesh Electricity Board (MPEB) now Madhya Pradesh State Electricity Board (MPSEB) and/or yet to attain the stage of commercial production. SHPs can be Captive Power Projects (CPP) /Independent Power Projects (IPP). Identified SHPs to be notified by the WRD & NVDA. Sites, identified by a private Developer shall be treated as Self Identified sites and dealt separately under the provisions of this policy. Government or Semi Government organization of the State or Union Government is equally eligible to avail the benefits of this policy.
Scope
5 6 Operative Period Eligibility
From the date of notification in the State Gazette till it is revised / withdrawn / amended or cancelled The projects allotted to be on Build, Own, Operate and Transfer (BOOT) basis. BOOT period, to be of 30 years from COD or the life of the project whichever is earlier. At the end of the BOOT period the entire project including its assets to be transferred to the State Government free of cost. Developer to properly insure all the assets of the project during the currency of the BOOT agreement and maintain the same in proper condition for eventual transfer. In case the land of project site has been privately acquired by the developer, it shall be transferred to the State Government on payment of cost of land at prevailing market rate determined by the district Collector. At the end of BOOT period, the State Government may invite fresh bids for Operation & Maintenance of the project for a period of 5 years at a time on the criteria that the offer not being less than the terms and conditions on which the project was allotted to the original developer.
Selection Process
State Govt has constituted Project Clearance & Implementation Board (PCIB) to expedite the selection process with respect to SHPs under WRD / NVDA. PCIB to: Determine the norms & procedures, bid documents to select the Developers Finalize terms & conditions of the Hydro Power Development Agreement (HPDA)
Compendium of State Government Policies on Renewable Energy Sector in India 7.1 Projects Classification To approve lease of Government land to the Developer To approve incentives available to the Developer
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To approve any interpretation / explanation / classification / amendment of this policy proposed by WRD / NVDA.
The SHPs are categorized as Projects where a Detailed Project Report (DPR) has already been prepared by the concerned Department. Projects for which only potential sites have been identified, but no DPR has been prepared. Projects for which neither DPR has been prepared nor sites have been identified. Projects shall be offered through public invitation process for CPPs as well as IPPs. In case of both IPP & CPP, the Developer shall have the option to set up the project under a Special Purpose Vehicle (SPV) Bidding criterion to be pre qualification based on technical and financial capabilities as well as past experience, and the quantum of energy that each bidder is willing to offer free of cost to WRD/NVDA. Minimum free power to be offered for the projects shall be as Sl. No. 1. 2. 3. Estimated Installed Capacity Up to 5 MW More than 5 MW & up to 10 MW More than 10 MW up to 25 MW Free power as % of actual total generation minus Auxiliary Consumption 5%, with exemption of 3 years from the COD 8%, with exemption of 2 years from the COD 10%, with exemption of 1 year from the COD
7.2
Developer to bid along with an earnest money to be specified in case of each project by the concerned nodal department. Bidding process to be time bound and the successful bidder to be intimated of his selection by issue of a Letter of Permission (LoP). LoP shall entitle the bidder to take up preparation of a Techno -Economic Feasibility Report (TEFR). Relevant data and information with the WRD, NVDA and MPPGCL to be made available to the bidder without any cost. On the approval of TEFR, a Letter of Allotment (LoA) to be issued to the bidder, and a HPDA will be signed between State Government and the Developer. (a) Bidding Process where DPR is available: Developers to submit their request for pre qualification along with offer for free supply of power. Criteria for pre-qualification and weightage assigned to be specified in the bid document. For pre qualification, apart from the technical and financial strengths experience of developer to be considered. Free power offer bids of only pre-qualified bidders to be opened and the bidder with highest free power above minimum benchmark to be selected.
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Compendium of State Government Policies on Renewable Energy Sector in India (b) Selected bidder to pay the cost of DPR prepared by the Government at rates decided by WRD/NVDA.
Bidding Process where DPR is not available: Criteria for pre-qualification and weightage assigned to be specified in the bid document. Among the pre-qualified bidders, selection of the strongest bidder will be done based on the technical and financial capability and past experience in executing and/or running similar projects. On payment of a prescribed fee, Letter of Intent (LoI), mentioning time limit (generally 12 months), to be issued to the selected bidder for preparation of DPR. Time frame for preparation of DPR to be extendable by another six months. In case of special circumstances the PCIB may consider further extension of time for preparation of the DPR in its absolute discretion. Bidder to submit DPR along with his offer for supply of free power, to the WRD/NVDA. WRD/NVDA shall, on receipt of DPR and offer for free power, invite bids from other pre qualified bidders for quantity of free supply of power. In the event of the initially selected bidder not willing to match the highest bid, the highest bidder will be selected and he has to reimburse the cost of preparation of the DPR, specified in the DPR, to initially selected bidder Under any circumstances (whether the project is viable or not) the bidder is not entitled for any claim or compensation from the Government for expenditure he has made on investigations, preparation of DPR and its scrutiny, etc.
(c)
Selection Process for Self Identified Sites: Developer is to identify sites, not identified by WRD or NVDA. Such sites shall be treated as Self Identified Sites. On receipt of an offer from a developer for a self identified site, and on payment of a prescribed fee, WRD/NVDA to ascertain that he meets the requisite pre-qualification bench mark, and on satisfaction, seek the approval of the Developer by the PCIB. In case of multiple offers for the same site the principle of first come first serve shall apply. LoI, mentioning time limit (generally 12 months), to be issued to the selected bidder for preparation of DPR. Time frame for preparation of DPR to be extendable by another six months. In case of special circumstances the PCIB may consider further extension of time for preparation of the DPR in its absolute discretion. Bidder to submit DPR along with his offer for supply of free power, to the WRD/NVDA. WRD/NVDA , on receipt of DPR and offer for free power, invite bids from other pre qualified bidders within a stipulated time frame, for quantity of free supply of power.
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In the event of the initially selected bidder not willing to match the highest bid, the highest bidder to be selected and he has to reimburse the cost of preparation of the DPR, specified in the DPR, to initially selected bidder
Development of Projects
On selection of the bidder, a LoP to be issued to him for preparation of TEFR. Based on the DPR, bidder to prepare TEFR Bidder has to understand that the water releases shall be strictly scheduled to meet the requirements of irrigation/domestic or industrial demands and have to maximize the energy generation without compromising on these requirements. If the selected bidder is satisfied about the techno-economic viability of the project he shall submit the TEFR to WRD/NVDA within three months, from the date of LoP, along with the processing fee as Sl No. 1. 2. 3. Estimated Installed Capacity Up to 5 MW More than 5 MW & up to 10 MW More than 10 MW up to 25 MW Processing Fee* Rs. in Lacs 1.00 2.00 5.00
*The fee can be revised by the PCIB from time-to-time. Under any circumstance (whether the project is viable or not), the selected bidder is not entitled for any claim or compensation from the Government for expenditure that he has made on investigations,
8.1
Approval of TEFR by WRD/ NVDA
Preparation of TEFR and its scrutiny, etc. TEFR submitted by the Developer to be approved by the WRD/NVDA after ensuring the following. (a) (b) It is consistent with the requirement of domestic/irrigation/industrial water, navigation, flood control etc. It proposes to exploit the full potential of the site in terms of generation of power. Generally the developer would be expected to develop the full site to its potential in one phase only. PCIB may permit phase wise development, in case of technical compulsions and its decision on the matter shall be final. It meets the norms regarding dam design and safety.
(c) (d)
On being satisfied that all the conditions have been met, WRD/NVDA shall issue LoA to the developer within 8 days of receipt of the TEFR or submission of clarification to WRD/NVDA. Developer to deposit a performance security with WRD/NVDA and sign the HPDA within a period of 30 days of issue of the LoA. Performance security to be 2% of the estimated cost of the project in the form of a Bank Guarantee by a Schedule Bank acceptable to WRD/NVDA or cash security by way of a Demand Draft. Project shall be made operational within the time frame mentioned below from the date of signing the HPDA. Sl. No. Estimated Installed Capacity 1. 2. 3. Up to 5 MW More than 5 MW & up to 10 MW More than 10 MW up to 25 MW Commissioning 30 Months 36 Months 40 Months
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Compendium of State Government Policies on Renewable Energy Sector in India In case, PCIB extends the period of 12 months for obtaining necessary approvals and financial closure, the commissioning period mentioned in the table above will be extended accordingly. The project development milestone up to the COD shall form part of the HPDA and may be reviewed at a specific request of the developer by WRD/NVDA based on any exigencies that may arise during the development of the project. On successful commissioning of the project within time frame, security deposit to be refunded with approval of PCIB
8.2 Land Acquisition
Land if available with the Government, to be leased to developer within a period of 30 days of signing of the HPDA in the following manner: If the land belongs to the WRD/NVDA, the WRD/NVDA will lease it out to the developer under intimation to the District Collector. If the land belongs to the Revenue Department, the District Collector will transfer it to WRD/NVDA and WRD/NVDA will lease it out to the developer, under intimation to the District Collector. If the land belongs to some other Department, the WRD/NVDA will obtain NOC of that Department, take possession of the land and lease it out to the developer, under intimation to the District Collector. Premium and lease rent together for the total area of the land so leased will be at the rate of a token sum of Rs 1/- per year. Lease shall be for the period prescribed by the HPDA. Standard terms of lease will be approved by the PCIB. In case the land required by the developer is private land, Govt. will acquire the land on developer's behalf if he so requests, but the acquisition cost will be fully met by the developer. In case of forest land including Revenue land classified as Chote-bade jhad ke jungle, or any revenue or private land classified as forest or defined as forest, provision of Forest (Conservation) Act, 1980 and rules made there under from time to time and instruction of Central/State Government shall apply. On signing of the HPDA, the developer shall seek and obtain all the necessary approvals and also arrange for financial closure within a period of 12 months after signing of the HPDA. The period can be extended by the PCIB on case to case basis if it is satisfied that the reasons for delay are beyond the control of the developers. WRD/NVDA to extend all possible assistance for obtaining such approvals In case of failure to obtain the approvals and the financial closure within the prescribed period, the HPDA shall stand automatically cancelled and the performance security shall be forfeited. In case the project can not be set up for want of an approval from the State or the Central Government, the security shall not be forfeited. Interfacing including the transformer panels, protection, metering etc. from the point of generation to the nearest sub-station or an interconnection point or at nearest transmission line subject to fulfilment of technical and safety parameters in accordance with MP Grid Code, MP Electricity Supply Code,2004, MPERC and CERC regulations shall be the responsibility of the Developer. Madhya Pradesh Power Transmission Company Limited (MPPTCL) and/ or the concerned Distribution Company may take up the work and maintain the same on cost basis to be borne by the developer.
Statutory Clearances
10 Grid Interfacing
Compendium of State Government Policies on Renewable Energy Sector in India 11 Transmission / Distribution
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Any dispensation in this regard made by the Regulatory Commission shall be final. Developer is free to construct his own dedicated transmission lines from the point of generation to the point of consumption of the energy. He shall also have the right of open access for existing transmission facilities of the state Metering equipment, as may be stipulated by MPPTCL or respective Distribution Company to be installed at the production and/or consumption sites as per the provisions of MPERC regulations on metering and MP Electricity Supply Code, 2004 at the cost of the developer. Any official of the MPPTCL/respective Distribution Company may inspect the same. Developer shall sign wheeling agreement with MPPTCL/respective Distribution Company as per terms of this policy but subject to the final dispensation by the Regulatory Commission in respect of wheeling and transmission/distribution losses. Developer shall be responsible for payment of wheeling and transmission charges to the MPPTCL/respective Distribution Company in case of sale of power to Third Party Consumers / Distribution Licensee / Power Trading Company subject to the final dispensation by MPERC. MPPTCL or concerned State Distribution Company to facilitate wheeling of power for Third Party Sale at rates be decided by MPERC. State Government to extend subsidy @ 4% towards wheeling charges within the State of MP. 100% IPP Surplus Power of CPP to any consumer/ Distribution companies / Power trading Co. (PTC) State Distribution Co/ SPTC to have first right for refusal for purchase of Power WRD/ NVDA engineers to have the right of inspection of power project. Developer to render all requisite help and assistance. Developer to maintain all records regarding capacity , generation, down time, with relevant constrains etc. and make available these records to the inspecting authority. MPERC has exclusive jurisdiction on those provisions of the Policy which are within its regulatory mandate under the provision of EA 2003. In the event of dispute in interpretation of this policy or any clause in the agreement between developer & WRD/NVDA or MPPTCL/ Transmission Licensee/ Distribution Licensee, the same shall be referred to MPERC to the extent of its jurisdiction Developers to whom CPP/IPPs were allotted by erstwhile MPEB under the 1994 policy to have the option of continuing under the old policy or to come under the new policy. Such option to be exercised by developer within one month of issue of this policy by making an application to WRD/NVDA, who will issue the permission to migrate into the new policy subject to their signing of a MoU laying down a revised implementation schedule. Permission to migrate will be liable to be terminated if the developer does not adhere to the revised implementation schedule. Permission of WRD/NVDA shall also be subject to dispensation by MPERC.
11.1 Wheeling
12 Sale of Power 13 Inspection of project
14
Jurisdiction of MPERC
15
General Conditions
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Compendium of State Government Policies on Renewable Energy Sector in India IPPs will be free to change their option to CPP in due course of time & vice versa with the approval of WRD/NVDA. Change in option from sale to third party to Licensee and switching from one third party consumer to other third party consumer shall also be permissible by WRD/NVDA subject to dispensation by MPERC. Policy to be periodically reviewed and in normal circumstances next review to be after three years. GoMP reserves the right to amend / delete certain provisions of this policy and include additional provisions, if found necessary. GoMP may from time to time issue orders and practice directions in regard to the implementation of policy.However, such amendments shall be made applicable with prospective effect only. Developer to be allowed the use of approach road to the powerhouse, if it is in the possession of WRD/NVDA. Developer and WRD/NVDA shall carry out the maintenance of the roads, for common use, jointly. WRD/NVDA to provide residential quarters, if spare accommodation is available with the department near the project site for the developer or his staff during construction period, on rental basis. Developer to carry out the maintenance of the same, at his own cost. Developer shall be free to surrender the project any time before start of the work on the project and in that case the performance security to be forfeited by WRD/NVDA. Developer to have the option of transferring the project to any other developer with a written consent of WRD/NVDA and on payment of stipulated fees & meeting the pre qualification norms and conditions. New project to be eligible for incentives only if it meets the milestones prescribed under the HPDA. Projects which have migrated to this new policy shall be eligible for incentives if they meet the revised implementation schedule prescribed in the MoU signed with them. In case of sale to any third party or to any PTC, the State Trading Company (STC) or State Distribution Company (SDC) to have the first right of refusal. STC/concerned SDC may purchase power from the project if so opted by the Developer at rates to be decided by the MPERC. Open Access charges not to be payable, subject to dispensation of MPERC on the petition of WRD on issue of this policy. No electricity cess payable for the power supplied by the SHP. SHPs to be treated as Industry for the purpose of the Industrial Promotion Policy, 2004 as well as Madhya Pradesh Industrial Investment Promotional Assistance Scheme, 2004, and be eligible for the incentives available under this policy/scheme. Industrial consumers opting to buy power from an SHP shall be allowed a corresponding reduction in contract demand on a permanent basis subject to dispensation of MPERC. No water rate shall be payable for the use of water by the SHP. If a developer intends to generate and distribute electricity in a rural area developer shall not require any license, but shall comply with the measures specified in Electricity Act 2003 Power consumed from the SHPs for the purpose of captive use or third
16 Surrender/Transfer of Allotment
17
Incentive
151
party sale shall be exempted from payment of Electricity Duty subject to generation of more than 80% 0f the declared generation in the TEFR. In case of generation being less than 80%, the developer to produce documentary evidence indicating the reasons which are beyond the control of developer to WRD/NVDA, who may allow the exemption . Carbon Credit or any such incentive available for such SHPs shall be to the exclusive account of the Developer. All the equipment/plant and Machinery brought into the state for use in the SHP shall be exempted from payment of Entry Tax for a period of five years from the date of signing of HPDA. For the purpose of the Madhya Pradesh Industrial Investment Promotion Assistance Scheme, 2004 relating to Assistance in respect of the Commercial and related taxes arising out of investment in the SHP, the facility can be availed either by the SHP unit, or the industrial unit which consumes the energy from this SHP unit. The option to whom this benefit should flow, to be exercised by the SHP right in the beginning. If the Developer is able to commission the project before the schedule COD he shall be entitled for incentive @ 50% of the free power to be supplied to the GoMP i.e. the developer to provide only 50% of offered free power from the date of actual COD to the date of scheduled COD. WRD/NVDA to provide assistance for obtaining incentives offered by MNES/IREDA
18 Banking
Allowed .100% of energy every financial year subject to the following conditions; Developer has to pay 2% of the Banked energy to concerned State Distribution company/State Power Trading Company towards the Banking charges. Banked energy to be availed to the extent as per the decision of the concerned State Distribution company/State Power Trading Co. Banked energy can be availed except during Rabi season (November to February) and during peak hours. Balance energy, if any, at the end of the financial year to be purchased by the concerned State Distribution Company/State Power Trading Company as per the directions of the MPERC.
19 20
Security Deposit Delay in commissioning
On successful commissioning of the project within the stipulated period, the security deposit shall be refunded /released with the approval of PCIB. In the event of delay in commissioning of the Project as per the project development milestone for reasons attributable to the Developer except force majeure, the Developer to compensate the loss of free power to Government of M.P. for the delayed period as per the projected power generation in the DPR during this period. Loss to be compensated in form of equivalent quantity of free power over and above the committed free power as per agreement.
152
GOVERNMENT OF MAHARASHTRA
NEW POLICY FOR POWER GENERATION FROM NON - CONVENTIONAL SOURCE OF ENERGY-2008 DATED 14-10-2008 AND AMENDMENT DATED 03-08-2009
Sl. No. 1 2 3 Order Title Government Resolution Description Summary Government Resolution (i) No.APAU(NCE)-2007/ Pra.Kra.693/ Urja-7 dated 14th October 2008 (ii) Amendment dated 03-08-2009 New Policy for Power generation from Non - Conventional Source of Energy2008 Target fixed for commissioning of Renewable power projects: Wind power projects Cogeneration power project based on Bagasse Biomass based power generation project Small Hydro Power Projects 2000 MW 1000 MW 400 MW 100 MW
Once the fixed target under this policy is achieved, then new policy shall be launched. It shall be binding on Promoters/ Developers/ Investors to sell 100% of electricity generated through non-conventional energy source to Licensee or Client in the State. 100% electricity generated from Small Hydro Project up to 25 MW under Irrigation Department is permitted to sell to any licensee or a client. Government has the right to approve infrastructure clearance letter needed to become eligible for availing all allowable benefits for all types and capacities of RE projects. Promoters/ Developers to submit project proposal to Maharashtra Energy Development Agency (MEDA). MEDA to examine and submit its recommendations to Government. Infrastructure Clearance letter will be issued after approval from the Government. MEDA to prepare a Master Plan of developing 3500 MW capacity renewable energy project and submit to the Government for approval. After the Government approval the master plan will be issued by MEDA independently.
4 4.1 Wind Power Project Evacuation Arrangement
Following benefits will be payable for projects of 2000 MW capacity MEDA and Maharashtra State Electricity Transmission Company (MSETC) Maharashtra State Electricity Distribution Company (MSEDC) to jointly undertake the survey of LV, HV and EHV substation and required transmission and distribution lines of these projects. Private Developers to undertake erection of these substations, transmission and distribution lines as per the technical specifications and estimate approved by MSETC/MSEDCL Evacuation system would include strengthening or modification of existing system and the 33 kV lines to be connected to HV and EHV sub-station from the project site. After commissioning, the evacuation arrangement will be transferred to MSETC/MSEDCL. Ownership of evacuation arrangement, maintenance and repair work to rest with these companies.
Compendium of State Government Policies on Renewable Energy Sector in India 4.2 Expenditure of Evacuation System
153
For payment through Green Energy Fund, the amount of estimated expenditure approved by MSETC/ MSEDCL or the actual expenditure of the evacuation arrangement whichever is less will be treated as evacuation expenditure. After the Evacuation arrangement is completely transferred to MSETC/ MSEDCL, MEDA to reimburse 50% of the approved expenses on the evacuation arrangement to Developer/ promoter from Green Energy Fund as a subsidy as per the availability of fund. Developer/ Promoters to submit to MEDA the lay out plan of the proposed approach roads in the vicinity of the wind power projects. Developer/ Promoters to make a project report of proposed approach roads with estimated cost in consultation with PWD, Maharashtra State Road development Corporation 100% expenditure for the roads shall be payable as a subsidy from green energy fund. Promoters/ Developers to carry out the repairs / strengthening / reinforcement work of the existing roads in PWD/ZP areas, if required for transportation of the machinery for their project at their own cost. Refund of the expenditure done on these account will not be payable to the Developer/ Promoters from Green Energy fund. Developer using electricity generated from the project for their own captive purpose, electricity duty will not be levied for the first 10 years from the COD. This benefit will also be applicable for third party sale. A subsidy of 11% of the total share capital of the project shall be paid from green energy fund for the wind power project installed and commissioned by Co-Operative Institutions. MSEDCL to make available the facility of Letter of credit to the Developer for realizing their payment in scheduled period for the sale of electricity. The cost of opening for the letter of credit to be reimbursed to MSEDCL from Green Energy Fund by MEDA as 100% subsidy. Geology and Mining Department shall notify the sites where No Objection Certificate from this department is required to be submitted. It is mandatory for the Developer to produce No Objection Certificate issued by the Geology and Mining Department for installation of wind power project at such sites. Developer through MEDA, to make available the information and maps of wind sites in the State to the Geology and Mining Department. Development Commissioner (Industries) to issue No Objection Certificate within a period of two weeks. Once the promoter has taken the permission for wind power project, then No Objection Certificate is not required separately from Development Commissioner (Industries) while transferring the wind power project in the name of investor. 100% of refund of Octroi Tax/ Entry Tax for equipments of Wind Power Project will be made through Green Energy Fund by MEDA If the Developer/ investor of wind power project applies to Collector for the barren land of Govt. at declared wind site and if the land is permissible for industrial use as per planning, the Govt. barren shall be allotted for the wind power project on rental basis with 30 years lease agreement with regular terms and condition.
4.3
Refund from Green Energy Fund for Evacuation Arrangement Expenditure- Subsidy Approach Roads
4.4
4.5 Electricity Duty
4.6 Encouragement to Co-operative Sector Letter of Credit
4.7
4.8
No Objection Certificate issued by Geology and mining Department
4.9 No Objection Certificate issued by Development Commissioner (Industries)
4.10 4.11
Octroi Tax/ Entry Tax Govt. Barren Land for Wind Power Project on Lease Basis
Note: All the facilities will be applicable to wind power projects installed after commissioning of 750 MW capacity under the wind policy dated 26th February 2004 up to the declaration of this policy
154
5.
Compendium of State Government Policies on Renewable Energy Sector in India Baggase based Co-generation Power Project/ Energy Generation Project Evacuation Arrangement Electricity duty Capital Subsidy Following benefits will be payable for projects of 1000 MW capacity
5.1 5.2 5.3
Same facility as per Wind Power Project (Sl. No 4.1 to 4.3) Same facility as per Wind Power Project (Sl. No 4.5) For getting Capital grant of Rs.1 Cr. Per project for HV/ EHV substation, it is essential to get the HV/EHV sub - stations certified from Maharashtra State Electricity Distribution Company/ Maharashtra State Electricity Transmission Company. The above capital subsidy will be disbursed only after project runs with minimum 80% PLF for minimum one year If Co-operative sugar factory installs projects, 100% exemption for the next 10 years to be given on 3% purchase tax which is charged on sugar cane purchased for crushing. To be applicable for existing Cogeneration projects as well as new projects.
6. 6.1 6.2 7. 7.1 7.2 7.3 Agricultural waste Based (Biomass) Power Project Evacuation Arrangement Electricity Duty Small Hydro Project Evacuation Arrangement Electricity Duty Capital Subsidy
Following benefits will be payable for projects of 400 MW capacity. This benefits will also applicable to projects which are commissioned in the year 2007-2008 Same facility as per Wind Power Project (Sl. No 4.1 to 4.3) Same facility as per Wind Power Project (Sl. No 4.5) Following benefits will be payable for projects of 100 MW capacity. Same Facility as per Wind Power Project (Sl. No 4.1 to 4.3) Same facility as per Wind Power Project (Sl. No 4.5) Applicable up to 5 MW Capacity SHP based on Kolhapur type weir, waterfall, and run of the river. Subsidy of Rs.50, 000/- per kW. Maximum limit of subsidy will be Rs.1.5 Cr. Per project.
Note: The above capital subsidy will be disbursed only after project runs with minimum 80% PLF for minimum 1 year. 8. Other Points Apart from above mentioned points, all the decision taken by MERC from time to time will be applicable to above projects. All promoters/ developers/ investors who do not wish to obtain facilities concessions under this policy, need not take infrastructure clearance from the Government
155
GOVERNMENT OF MAHARASHTRA
HYDEL POLICY FOR DEVELOPMENT OF SMALL HYDRO POWER PROJECTS THROUGH PRIVATE PARTICIPATION
Sl. No. 1 2 3 4 5 6 Order Title Objective Applicable Nodal Agency Operative Period Description Summary No. PVT-1204/(160/2004)/ H P Dated: 15th September 2005. State Hydel Policy for Development of Small Hydro Power Projects To harness green power with help of private sector and create environment for attracting private sector. Also for any Government or semi Government organization of GOM who owns water resources. Government of Maharashtra, Water Resources Department (GoMWRD) From the date of publication till revised. SHP allotted shall be on Build, Operate & Transfer Basis (BOT). BOT period to be 30 years. At the end of the BOT period the absolute ownership of the SHP along with land, switchyard & allied equipment shall automatically stand transferred to GoMWRD free of cost. GoMWRD may extend the BOT period at its discretion. If the period is extended, GoMWRD reserves the right to review the charges. List of sites for SHPs to be displayed on the web site of GoMWRD. GoMWRD to offer projects through public notification. Bidding open to both CPP and IPP. Criteria for pre-qualification of Developers to be technical & financial capabilities, past experience and other relevant attributes of the developer. Main bidding documents to be issued only to pre-qualified developers. Minimum threshold premium mentioned in the bidding document. Bidders to quote a premium payable to the Government of Maharashtra (GoM) over and above threshold premium and support his bid by Earnest Money Deposit (EMD). Upfront premium to be the main consideration for allotment of project. Threshold premium shall be Rs.50 Lakhs/MW in case of SHPs in which GoMWRD has already made investment on trash rack and penstock. In other cases it shall be zero. GoMWRD to issue Letter of Permission (LoP) to the selected developer to empower him to make necessary investigations and prepare TechnoEconomic Feasibility Report (TEFR). If the developer comes forward with his own site for development of the project, GoMWRD to issue LoP directly provided the proposed project is not already investigated by GoMWRD. Decision of Secretary (CAD), GoM shall be final. TEFR to be prepared, such that generation is synchronised with the release of water as per irrigation /domestic /industrial demands. GoMWRD reserves the right to decide the release schedule and modify it from time to time as per the requirements. No claims of compensation on these grounds to be entertained.
7.1 Process of Allotment
156
Compendium of State Government Policies on Renewable Energy Sector in India Developer to submit the TEFR to GoMWRD within three months from the date of LoP along-with the processing fees as given below: Sl.No. 1. 2. 3. 4. Installed Capacity Up to 999 kW 1000 kW to 1999 kW 2000 kW to 4999 kW 5000 kW to 25000 kW Processing Fees in Rs. lakhs. 1 3.5 5 10
Under any circumstance, whether the project is viable or not, the developer is not entitled for any reimbursement of expenditure made on investigations, preparation of TEFR and its scrutiny. In normal situation development in stages will not be allowed. However, under specific conditions, Secretary (CAD), GoM is authorised to allow stage wise development. On receipt of LoA developer to deposit the Performance Security and sign the Hydro Power Development Agreement (HPDA) with GoMWRD within eight days. On submitting the documentary proof of clearances & financial closure , GoMWRD to issue letter to the developer (within 8 days) to deposit the amount of Upfront Premium offered by him within one month. Failure of developer to deposit amount of Upfront Premium within stipulated period will result into automatic cancellation of HPDA and forfeiture of Performance Security. GoMWRD to authorise the developer to start the development work within 8 days from payment of Upfront Premium. Project to be made operational within 24 months from the date of authorisation for development. During the project implementation the progress of the developer to be reviewed at various milestones and for delay if any are found to be beyond the control of the developer, necessary time extension may be given otherwise developer would be liable to pay a penalty as detailed in the HPDA. Developer to insure the assets of the project and keep them insured during the term of HPDA. GoMWRD engineers to inspect the power project before and after the monsoon. Developer to render all requisite help and cooperation for such inspection. Similarly, statutory inspection from Factory inspector / Electrical Inspector to be got done. Inspection Reports to be furnished to GoMWRD annually. Developer to maintain all the record regarding capacity, generation, PLF, downtime with relevant constraints etc. and make available all these records to inspecting authority for inspection.
7.2 Project Implementation and Monitoring
7.3
Surrender of Allotment
In case of surrender of allotment by developer due to any reason he will be penalised and no compensation would be payable as indicated below: Sl. No 1. 2. Stage at which project is surrendered Before signing HPDA After signing HPDA Penalty Forfeiture of Earnest Money Deposit except in the event the project is found unviable Forfeiture of Performance Security except when any state/central level clearances are denied. Forfeiture of Performance Security plus amount of Upfront Premium.
3.
After permission for development is given
Compendium of State Government Policies on Renewable Energy Sector in India 7.4 Statutory Clearances
157
Developer to arrange the necessary clearances & financial closure within 6 months from the date of signing HPDA. GoMWRD to facilitate developer in getting clearances. Period may be extended if there are valid reasons for such extension, & to be decided by Secretary (CAD), GoM. Failure of developer in arranging the various clearances & finance within a stipulated period will result into automatic cancellation of HPDA and forfeiture of Performance Security. In case, any of the state level or central level clearance is denied for a particular reason the performance Security only to be refunded to the developer. Land under the possession of the government to be handed over to the developer on lease rent. If no government land is available for setting the unit, the developer has to arrange for land acquisition from private parties at his cost.
7.5
Land Acquisition
7.6
Security Deposit
Amount of Security deposit shall be such that yearly charges payable to GoMWRD on account of water royalty, maintenance charges and land lease charges could be recovered from it. Developer may avail the Consultancy services of GoMWRD in respect of investigations, preparation of TEFR, estimates, designs & drafting specifications etc. at mutually agreed rates & conditions. Developer may establish, operate and maintain a power project with out license subject to : TEFR is approved by GOMWR All statutory clearances are there Technical standards relating to connectivity with grid as per EA are followed
Consultancy
Generation without License
10 11.1
Grid Interfacing Transmission / Distribution
As per MERC regulations Developer may construct and maintain dedicated transmission lines from the generation plant to the destination of his use. However, he will have the right to access for existing transmission facilities in the State and other dispensations of MERC regarding Transmission Open Access. Local distribution licensee permitted to evacuate power from SHP directly if he desires to do so. Developer to sign Energy Wheeling Agreement with Transmission entity / Distribution licensee. When an open access is provided by MERC, the developer is responsible for payment of transmission charges & surcharge thereon as decided by MERC for the energy sold to Third Party Consumer/Distribution Licensee/ Power Trading Company. Metering of energy generated at generating station and corresponding credit at the consumption point shall be on ToD (Time of Day) tariff slots.
11.2 Wheeling
Developer to sign wheeling agreement with Transmission entity / Distribution licensee when transmission lines of Transmission entities are used, rates of wheeling charges and transmission losses to be as decided by MERC and wheeling transactions to be settled accordingly. As per MERC In case of threat to security of State, public order, natural calamity, or in public interest. Developer to follow the directions of State Government in this regard
12 13
Banking Generation Restrictions
158
14 15
Compendium of State Government Policies on Renewable Energy Sector in India No Compensation for Grid Dailure Developers to Pay To Developer/ Third party consumer/ Captive user in the event of grid failure, shut down, interruption in power supply. Water royalty at the rate of Rs.0.05 per unit of energy generated quarterly. Charges for maintenance of intake structure, penstock etc. at the rate of Rs 0.05 for every unit generated quarterly. Land lease charges for the GoMWRD land at Rs.1/kW of installed capacity, Year at beginning of FY. All these charges to be settled within 30 days after the receipt of the invoice. Thereafter the interest at S.B.I. prime lending rate plus 2% per annum on delayed payment for delayed period to be made applicable. Rates of royalty, maintenance and lease charges are for the first year to be increased every subsequent years by 5% by compounding. These to be reviewed after 30 years if lease period is extended. During first 10 years after commissioning, if in any particular year, 75% of the 75% dependable water is not made available to the developer, water royalty charges and maintenance charges for that year to be waived off. Developer to pay taxes, duties & other levies as applicable unless specifically exempted. CPPs exempted from Electricity Duty and Tax on sale of electricity.
16
Taxes & Duties
17
Transfer of Allotment
Allowed with approval of GoMWRD. GoMWRD may give such approval provided, Financial institution has consented such transfer. GoMWRD is satisfied that the new developer shall consume the generated energy primarily for his own use ( in case of CPP only). Proposed developer agrees to all the terms & conditions agreed to by the original developer. New developer deposits transfer fees with GoMWRD at Rs. 1 Lakh/ MW of installation. Transfer fee may vary as per prevailing Whole Sale Price Index with base index of 2003-04. Transfer fees are in addition to transfer fees payable if any, to other Authority. To any consumer located in the state of Maharashtra or any willing distribution licensee or any power trading company. However, Maharashtra Electricity Distribution Company shall have the first right of refusal. Sale of power to be as per MERC regulations. MERC has jurisdiction on those provisions of Policy which are within its regulatory mandate such as electricity sales rates, power purchase agreements and provisions regarding wheeling, banking distribution and transmission loss charges etc. MERC has jurisdiction as per the provisions of EA- 2003 as regards the promotion of non-conventional energy sources, facilities for transmission of energy, sale of power to any interested consumer and sharing of purchase of power amongst the STU/Transmission Licensee/Distribution Licensee. Orders regulations, directives, guidelines issued by MERC regarding these issues from time to time shall be binding on all. In the event of dispute between developer & GoMWRD or STU/ Transmission Licensee/Distribution Licensee, the same shall be refered to MERC. Nodal officer of GoMWRD to assist in obtaining the clearances
18
Sale of Power
19
Jurisdiction of MERC
20
Obligation of GoMWRD
159
If the TEFR satisfies all the prerequisites, GoMWRD to approve the TEFR and issue Letter of Allotment (LoA) within one month from the date of submission of TEFR or date of giving all the clarifications by developer, whichever is later. GoMWRD to hand over the site for project within 15 days from the accord of permission accorded to commence the work. Developer to be allowed to use the approach road to the power house if it is in possession of GoMWRD. Developer at his own cost shall carry out the maintenance of the same. GoMWRD shall provide residential quarters, if available near the project site for developer for his staff during construction period on rental basis. Developer at his own cost to carry out the maintenance of the same. GoMWRD to make available the piece(s) of land if available for construction of residential quarters/office of maintenance staff on reasonable terms to be agreed between GoMWRD & Developer. Period of agreement to be the same as that of HPDA. Developer to handover such buildings to the GoMWRD at the end of the agreement free of cost. Developer not allowed for making any commercial use of such land. Developers to whom CPP is allotted by GoMWRD under previous policy & willing to opt for the provisions of this policy may apply for the same along-with the necessary processing fee of Rs. 0ne lakh per MW of installation. GoMWRD to accord permission if all conditions fulfilled subject to provisions of item No.19. Processing fee may vary prevailing Whole Sale Price Index with base index of 2003-04. IPPs & CPPs are free to change their option (entity) in due course of time. However, this permission shall be subjected to provisions of Section A-17 of this policy and dispensation emerging from the tariff and procurement process determination exercise initiated by MERC. Change in option from sale to third party to Licensee and vice versa and switching from one third party consumer to other third party consumer without change in entity shall also be governed by provisions of Item 19. In normal circumstances Policy review shall be after three years. However, GoM reserves the right to amend / delete certain provisions of this policy. Such amendments shall be made applicable with prospective effects only If the developer commissions the project at earlier date (given time is 24 months), he will be exempted from water royalty charges & maintenance charges to an extent of units generated before scheduled date of commissioning. CPPs exempted from Electricity Duty on the self consumption of electricity for first five years after commissioning if the consumption unit is located in Maharashtra. CPPs exempted from tax on Sale of Electricity only if the consumption unit is located in Maharashtra. Technical Consultancy at nominal charges. MEDA, Pune shall assist the developers in getting incentives from MNRE, GoI.
21 General Conditions
22 Incentive by the State Government
160
GOVERNMENT OF MANIPUR
POLICY ON RENEWABLE SOURCES FOR PROMOTION OF GENERATION THROUGH NON-CONVENTIONAL ENERGY SOURCES
Sl. No. 1 2 3 4 Order Title Nodal Agency Objective Description Summary No.1/1/2005- S& (Misc) dated 12-09-2006 Policy on Renewable Sources for Promoting Generation of Additional Power through Non-Conventional Energy Sources Manipur Renewable Energy Development agency (MANIREDA) 5 6 Operative Period Eligible Producers To promote generation of Grid- grade Power through New & Renewable Energy Sources like wind, solar, mini hydel, SHP, biomass and other waste. Ensure Provision of energy security in all villages Priority for village electrification by generation through RE sources.
From the date of its publication in the official gazette till superseded or modified. All Power producers generating Grid-grade electricity from RE Sources with installed capacity not exceeding 25 MW Producers generating electricity for captive consumption Companies, Co-operative, partnerships, Village Development Board/ Village Authorities, individuals etc. Interfacing including transformers, panels, kiosk, protection, metering, high tension lines etc as required from the point of generation to the nearest high tension lines, as well as their maintenance to be undertaken by the producer as per the specifications and requirements of the State Government at the entire cost Alternatively, these works and their maintenance could be undertaken by the Power Department at charges to be decided by the Department Power Department to undertake augmentation of the sub-station capacity at 33/11 kV or higher levels at its cost to receive the power generated. Power Department to undertake, at its cost, augmentation of transmission lines, if required. Producer to install two separate meters at his cost, one for receipt and other for release of power from the grid, on HT side. Meter and metering boxes to be sealed by State Govt. Producer to install necessary current limiting devices such as Thyristors in the generating equipment. Capacitors of sufficient rating to be provided in the equipment to ensure power factor above 0.80
Grid Interfacing
Facilities by Power Department, Government of Manipur Wheeling Department to transmit on its grid the power generated by producer and make it available to him for captive use or to a third party for sale within the State, at a uniform wheeling charge of 2% of the energy fed to the grid, Third party to be a HT consumer of power. Rs.2.25/- per unit (minimum) Rate to be increased every year for 10 operational years. Thereafter the rate of increase to be mutually settled between Power Deptt. and developer.
8.1
8.2 Purchase of power by Power Deptt. Govt. of Manipur
Compendium of State Government Policies on Renewable Energy Sector in India 8.3 8.4 8.5 9 10 10.1 10.2 Settlement on monthly basis Development of SHP (up to 25 MW) Banking Power Purchase Agreement (PPA) Incentives by the State Govt. Exemption from electricity duty Grant of incentive available to industries 5 years from COD for captive use or sale to a third party.
161
All transactions between power Deptt. and producer involving wheeling, banking or sale of power to be settled on monthly basis To be installed by MANIREDA either by direct implementation or through producers. Allowed up to 1 year 20 years unless Developer wants shorter period
Producers to be treated as industrial units and similar incentives available to them Concession given to Industrial units in backward areas to be provided Infrastructural facilities such as approach road, water supply, power during construction period, etc. will be provided on the lines of provisions for such facilities to other industrial units if such generation plant is set up in industrial area developed by State Govt. Incentive for generation of energy through RE sources by the Government of India under the following heads namely : (a) Industrial policy for Renewable energy development in India; (b) Incentives for promotion of renewable emery/ non conventional energy sources and (c) Policy measures in vogue to be applied in Manipur as given in the Annexure-I, Annexure-II and Annexure-III. (Refer policy) Exemption of tax on RE devices and spare parts. All scheme under RE Sources to be implemented through MANIREDA To facilitate detailed survey, preparation of DPR, funding, support & imparting training for project management and training etc. Accord of clearances for execution of RE projects. Grant of loans by IREDA & MNRE Clearance for the project generating electricity from RE Sources at the State and Central levels. Incase of failure to get private investors to take up the projects for electrification of villages, MANIREDA to take up the project. In such cases item not funded by MNRE including grid interfacing mentioned under item 7 above shall be borne by the State Government as share of State counterpart funding. Appropriate allocation of funds to be made by planning Deptt. to meet such liabilities. Allowed to use water for power generation, wherever possible. Cost of modification(s) required, if any, in the existing canal system to be done by the Irrigation Department, at the cost of the producer. Royalty for use of water at a rate not exceeding 10% of the electricity tariff for electricity consumers. Producers to submit application for setting up projects and grid interfacing to MANIREDA/ Power Deptt., Govt of Manipur MANIREDA/ Power Deptt. to provide clearances at the earliest. An agreement to be entered within one month from the date of clearance. If the applicant does not take effective steps (i.e., at least 10% of the total project cost not incurred within six months) to implement the project, the agreement to be terminated and site to be allotted to another applicant.
10.3 11 Sale Tax Facilities by Manipur Renewable Energy Development agency (MANIREDA)
Exempted
12
Availability of Water for Power Generation
13
Application and Clearances
14
Monitoring by State Level Advisory Council (SLAC)
SLAC headed by Chief Secretary , to monitor the progress of generation of electricity through RE source , undertake review of policy, to aid and advice the State Nodal Agency to make necessary changes according to necessity etc.
162
GOVERNMENT OF MEGHALAYA
POLICY FOR GENERATION THROUGH RENEWABLE ENERGY SOURCES
Sl. No. 1 2 Title Eligible Producers Description Summary Policy for Promoting Generation of Power through Non-conventional Energy Sources 3 Grid Interfacing Power producing entrepreneur. Companies, cooperative, partnership individuals etc. All power producers generating grid-grade electricity. It is compulsory for Developers to sell electricity to DISCOM or its successor company. Power producers having installed capacity of less than 10 kW and more than 25 MW will not be treated as "Eligible Producers". Power producers producing electricity for captive consumption Interfacing, including transformers, panels kiosk, protection metering, HT lines from the points of generation to the nearest HT lines etc. as well as their maintenance will be undertaken by the producers, as per the specification and requirements of the DISCOM, and producer to bear the entire cost. Alternatively, these works and their maintenance could be undertaken by the DISCOM at charges to be decided by the DISCOM/ SERC when it is set up. Two separate meters, one for import and other for export of power from/ to the grid, to be installed on the HT side by the eligible producers at his cost. Meters and metering boxes will be sealed by the State Transmission Utility (STU). STU to transmit on its grid the power for captive use of developer or to a third party nominated by eligible producers for sale within the state, at an applicable wheeling charge. However, the third party will have to be HT consumer of the power unless this condition is relaxed specifically by the DISCOM.
4 Wheeling Charges
5. 6 Sale of Power Incentives by State Government
DISCOM to purchase electricity offered by the developer as per the tariff fixed by the SERC on mutually accepted terms and conditions. Developer to use the water for power generation. Royalty on the water used for Small Hydro Projects will be charged as admissible. Infrastructural facilities such as approach roads, water supply, crane, power during construction period etc will be provided on the lines of industrial estates. Consumption of electricity generated by eligible producer for its captive use or upon sale to a nominated third party will be exempted from electricity duty for a period of 5 years. Producer will be eligible for Sales Tax/ VAT deferment/ remission under the provision of schemes notified in this respect by Finance Department as modified from time to time
Compendium of State Government Policies on Renewable Energy Sector in India 7 Process of Allotment by Nodal Agency
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Meghalaya Non-Conventional and Rural Energy Development Agency (MNREDA), as a state nodal agency, shall facilitate clearances for the projects at the State and Central levels MNREDA shall also facilitate grant of loans to such projects by Indian Renewal Energy Development Authority (IREDA) and subsidies by the Ministry of Non-Conventional Renewable Energy (MNRE). Developer to submit their applications for projects and for grid interfacing to MNREDA and DISCOM. MNREDA/ State government to provide clearance within a period of 2 months from the date of submission of application. An agreement will be entered into with the applicant producers within a period of one month from the date of such clearance provided.
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GOVERNMENT OF MIZORAM
POLICY FOR POWER THROUGH NON-CONVENTIONAL ENERGY SOURCES
Sl. No. 1 2 3 4 5 Title Objective Nodal Agency Operative Period Land acquisition Description Summary Power Policy For Power through Non-Conventional Energy Sources To promote generation of grid-grade power through Non-Conventional Energy Sources (NCES) Zoram Energy Development Agency (ZEDA) From the date of publication in the official gazette until superseded or modified by another order Not withstanding the provisions in the existing Revenue Acts and Rules, land lease can be considered for a period not exceeding 99 years, based on merit or life of the project, as the case may be. 7 Grid Interfacing Companies, cooperative, partnerships, individuals, charitable societies, Non-Governmental Organizations, etc. All power producers generating 10 kW to 25 MW of grid-grade Electricity from NCES. Renewable energy producers in the joint-sector, formed by Government agencies and the producers. Power producers producing electricity for captive consumption. Interfacing including transformers, panels, kiosk, protection, metering, high tension lines from the point of generation to the nearest high tension lines, etc. as well as their maintenance will be undertaken by the producer as per the specifications and requirements of the Power & Electricity Department, and producer to bear the entire cost. Alternatively, the above works and their maintenance could be undertaken by the Department at charges to be decided by the Department and the producer on mutual agreement. Department to undertake to augment the sub-station capacity at 33/11 kV or higher levels at its cost to receive the power generated by eligible producer. Department will also undertake, at its cost, augmentation of transmission lines, if required. Power Producer at his cost to install meters to measure the outflow and inflow of energy as per the prevailing Rules and Regulations of the Department, which will be jointly sealed by the Department and the producer. Producer to ensure the quality of power delivered in accordance with the prevailing Regulations. Department to undertake to transmit on its grid the power generated and make it available to him for captive use or to a third party nominated by eligible producer for sale within the State, at a uniform wheeling charge of 2% of the energy supplied to the grid. However, the third party will have to be HT consumer of the power unless this condition is relaxed specifically by the Department. Department to purchase electricity at a minimum rate of Rs. 3.50/unit applicable for the year 2002-03. Escalation at the rate of 5% every year on 1st April for a period of ten operational years.
Eligible Producers
8 Wheeling
9 Sale of Power (Tariff)
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Thereafter the rate of increase shall be mutually settled between Department and the Producer. It shall not be compulsory for such power producer to sell the electricity generated to Department Developers have the option with concurrence of the Department to sell the electricity to a third party within and outside the State, at a rate to be mutually settled between them. However, if the third party is a consumer of Department, and needs support of the Department's system , in case of outage of the power station, then he will have to pay minimum charges as per Schedule of Tariff of the Department in force. All transactions between the Department and the Producer involving wheeling, banking or sale of power will be settled on a monthly basis.
10 11 12 Banking of Power Settlement on Monthly Basis Exemption from Demand Cut
Allowed for a period up to one year All transaction between Department and Developer i.e. wheeling, banking, sale of power to be settled on monthly basis. A reduction in contract demand to the extent of 30% of installed capacity of the power plants shall be permitted by the Department, in case power plant is not utilizing Department's Grid for supply of power to the consumer. Minimum period of 10 years between Department and Developer However, if any eligible producer intends to enter into PPA for shorter period, the Department will consider such proposal on the merit of the case Irrevocable, divisible revolving and confirmed LC by Nationalized Bank LC to be equal to the expected three months payments by the Department. Consumption of electricity generated by producers for its captive use or upon sale to a nominated third party to be exempted from electricity duty. Producers to be treated an eligible industry under the schemes administered by Industry Department and incentives available to "eligible producers" for establishing such power generation plants. Concession given to the industrial unit in the backward areas to be provided to Developers. Infrastructural facilities such as approach road, water supply, power during construction period, etc. To provide facilities on the lines of provisions for such facilities to other industrial units State Government to extend all incentives and facilities granted by the Central Government for similar Undertakings in other States. Renewable Energy equipment and materials shall be exempted from State sales tax. ZEDA to facilitate clearances for the project for producing electricity from NCES at the State and Central levels Agency shall also facilitate grant of loans to such projects by IREDA and subsidies by the MNES, Government of India. Producers will be allowed to use water for power Generation, wherever possible. Cost of modification(s), in the existing canal system to be done by the Minor Irrigation Department or Agriculture Department, at the cost of the producer. Department will not charge royalty for use of such water.
13
Power Purchase Agreement (PPA)
14
Security Package
15
16 Statutory Clearances (Facilitation by ZEDA) 17 Availability of Water for Generation
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GOVERNMENT OF ORISSA
POLICY GUIDELINES ON POWER GENERATION FROM NON-CONVENTIONAL ENERGY SOURCES DATED 3RD DECEMBER, 2005
Sl. No. 1 2 3 Order Title Potential Sources (i) (ii) (iii) Solar Power Biomass Energy Wind Energy Photovoltaic Power Mode Bio-methanation, Gasification & Cogeneration, sanitary landfill & incineration Mode Agro/ Animal and Municipal waste Wind power generation mode Thermal/ Hydro Power Mode Hydro Power Mode Thermal power generation mode Capacity up to 100 kW with individual generation unit a few kW to 100 kW Capacity up to 2000 kW (2MW) with individual generation unit more than 100 kW to 1000 kW (1 MW) Capacity up to 25 MW with individual generation unit from1 MW to 5 MW Description Summary Resolution No. 6971/ST, Bhubaneswar, ST-IV-RE-13/2005, dated 3-12-2005 Policy Guidelines on Power Generation from Non-Conventional Energy Sources
(iv) Ocean/Tidal/Wave Energy (v) Micro/Mini/ Small Hydro Energy
(vi) Geothermal Energy 4 Classification of SHP
Micro Power Projects Mini Power Projects
Small Power Projects 5 6 Operative Period Eligibility
With immediate effect and will remain in force for a period of 10 years Any Public Sector, Private Entrepreneur, Registered NGOs, Cooperatives, Consortia etc. fulfilling the following criteria: Technical soundness of the pre-feasibility survey & investigation Financial solvency of the party Experience of the party in the relevant field
State Government to enter into MOU with eligible parties 7 Grid Interfacing & Metering 8 Wheeling 9 10 11 Open Access Power Banking Sale of Power Grid interfacing with the generating units to be constructed by the developer at their own cost. Scheme for inter connection to the nearest substation shall require the approval of GRIDCO/ DISTCO and shall form the part of DPR. Main and check meters to be installed by the developer at the interconnection points of GRIDCO/ DISTCO substation after testing. Allowed, subject to payment of transmission/ distribution and wheeling charges both for captive use and out side the State as approved by OERC Developer may supply energy to any one area or any area not served by the licensee .
Permitted. Allowed on annual basis. Banking charges - 2.5% of energy dispatched. To the bulk suppliers/ distribution licensee on the basis of PPA with the licensee, with the approval of OERC Energy from the project, not utilized during the year by developer for his captive use will be treated as sold to GRIDCO/ DISTCO.
Compendium of State Government Policies on Renewable Energy Sector in India 12 Incentives 13 Guideline for Preparation of Project Report. Exempted from electricity duty
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Government land if available will be allotted for units generating power from RE Sources No transmission charges shall be levied for CPP or NRSE maintenance for a period for 5 years from the date of commissioning. The intending producer after MOU to prepare DPR through reputed consultant and submit the same to Chief Executive, OREDA for detailed scrutiny. Capital subsidy allowable, Financial Assistance of IREDA (if sought for), MNRE Subsidies and other such allowable financial & fiscal incentives shall be considered by the Chief Executive, OREDA. Thereafter clearance by the State Technical Committee (STC) headed by Secretary, Science & Technical Deptt. will be processed
14 15 Clearances Application Procedures
All the required clearances from State Government Agencies to be obtained before submission of the DPR to STC. Eligible entrepreneurs, to apply to Chief Executive, OREDA in the prescribed format for obtaining Government approval. If Grid interface is required, approval of GRIDCO/ DISTCO will be necessary. If the applicant does not take effective step to implement the project within 6 months from the date of obtaining possession of land the agreement shall be terminated. For Small, Mini and Micro hydel projects, Administrative Department will be the Energy Department and the Science & Technology Department. Government of Orissa will handle the rest of the programmes. The Chief Executive (CEO), OREDA to make a list of all projects to the intending producers, along with pre feasibility report (PFR) CEO, OREDA to advertise, in the month of January every year, all the feasibility reports, inviting letters of interest. First preference to be given to producers who wants to set up the projects as Captive Power Plant, exclusively for their own use. After receipt of letters of interest, the same to be segregated in to CPP and IPP Groups. State Govt. to allocate project through MOU, on receipt of report from the CEO, OREDA. In case of more than one application for a single project, the same will be short listed by the STC. In case there is no response for any particular project, the same will be assigned on a first cum first serve basis. State Govt. to allocate project based on pre-qualification evaluation. Producer to prepare DPR along with Power evacuation agreement (PEA) and submit to the CEO, OREDA and DISTCOS/ any lawful Authority for approval. CEO, OREDA to process the DPR for placement before STC. STC to scrutinize and approve the DPR on receipt of the clearance for power evacuation arrangements from GRIDCO/ DISTCOS/ any lawful Authority. Producer for Captive use to seek permission of OERC before start up the project.
16 Procedure for Setting up of Power Plant Projects
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Compendium of State Government Policies on Renewable Energy Sector in India IPP to take up the project on approval of tariff schedule for sale of power by the Govt. DISTCOM / State Government may approve the tariff if the cost per kWh is within + 10% of the highest cost of energy purchased by the DISTCO during the year from any source. If the cost is higher than the limit, specific approval of the State Govt. required. All commissioned projects to be reviewed for their fitness and power generation capabilities every 2 years by OREDA. In the event of project work not being started within a year of approval of the PPA, the MOU and PPA will automatically stand cancelled.
17 Nodal Agency
OREDA as a single window for promotion and facilitation of all projects.
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GOVERNMENT OF PUNJAB
NEW AND RENEWABLE SOURCE OF ENERGY (NRSE) POLICY, DATED 24TH NOVEMBER, 2006
Sl. No. 1 2 3 Order Title Targets Description Summary No.10/106/2006-STE(1)5390 dated 24th Nov, 2006. New and Renewable Source of Energy (NRSE) Policy- 2006) 4 Measures to be adopted To add generation capacity of 1000 MW by the year 2020 through RE Sources and bring the share to 10% of conventional power. To motivate all sectors of economy to ensure conservation of energy to the extent of 20% by the year 2020. In case share of power generated through RE Sources is less than 10%, STU/ Licensees to purchase power from RE Projects out side the State in the Northern region at same tariff as applicable in Punjab.
Thrust areas
To promote investment through private / public sector participation in the following areas: Small / Micro Hydro Projects: Untapped estimate potential of 200 MW to be tapped by the year 2012. Co-generation: Sugar, paper, fertilizer chemical, textile and other industries with estimated potential of 220 MW to be exploited by the year 2012. Power Generation from Biomass/ Agro Residue and Waste: Estimated to be about 22.65 million tons for generating decentralized power of more than 1500 MW to be exploited by the year 2020. Only one biomass power project to be allocated through competitive bidding route in Tehsil (Taluka) in the State to have sufficient command area Power Generation from Urban, Municipal and Industrial Liquids/Solid Waste: To exploit about 5000 Metric Tons Municipal, urban, and industrial solid waste, which can lead to power generation of 100 MW, through waste energy project. Power Generation from Solar Energy: The state is endowed with vast potential of solar energy estimated at 4.7 kWh/m2 of solar insolation levels and the Governments keen to tap this resource by setting up solar energy based power projects. Wind Power: Self identified projects in the sector shall be promoted by allowing private developers to set up wind power projects on first come first served basis on the basis of wind data assessment carried out by them. Energy Conservation: Energy Conservation measures shall be implemented and enforced in the State in accordance with the provisions of Energy Conservation Act. 2001 by PEDA. If Government land is available, the required land for setting up RE projects to be provided on nominal lease rent Rs.1/sq.meter/annum for a period of 33 years subject to further renewal. If the land belongs to local bodies/ gram panchayat, the State would encourage them to provide the land for RE project. Agricultural land shall be allowed for setting up of RE project without conversion charges. Value Added Tax (VAT) shall be levied @ 4% on manufacturing and sale of NRSE device systems, and equipments /machinery required for RE projects.
Incentives
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Octroi on energy generation and equipment/machinery for RE power projects exempted. PSEB to purchase power from RE projects with out any restriction. Private developer, at its own cost to provide the evacuation system including transmission lines. For use of river/ canal water, cess @ one paise per unit of electricity generated will be charged for SHP Project developed by the private developers. For providing administrative support for obtaining clearances, financial and technical assistance etc., the facilitation service charges @ 0.1% of the project cost as per DPR will be charged by PEDA on all NRSE projects. All project developers (private as well as Government) can seek assistance of PEDA in terms of seeking carbon credit under CDM for NRSE projects.
The various physical and financial incentives available for setting up NRSE power projects are detailed in Appendix-II (Refer Policy) 7 Facilities by Punjab State Electricity Board (i) (ii) Wheeling Sale of power (a) Mini/ Micro Hydel project (b) Bagasse/ Biomass cogeneration projects (c) Biomass power projects (d) Power generation from urban, Municipal and Industrial Liquid/ solid waste (e) Power generation from Solar energy (f) Wind Power projects Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 3% up to 2011-2012 Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 3% up to 2011-2012 Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 5% up to 2011-2012 Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 5% up to 2011-2012 2% of energy fed to the grid
Rs.7.00 per unit (Base year 2006-07) with five annual escalation @ 5% up to 2011-2012 Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 5% up to 2011-2012
Note: At the end of above specified escalation periods, the tariff payable shall be the last escalated tariff or the PSEB HT tariff applicable in that year which ever is higher (iii) Settlement of Bill All transactions between PSEB/Licensees and the producer involving wheeling or sale of power to be settled on monthly basis. PSEB/Licensees to pay interest on payment delayed beyond a month @ State bank of India short term PLR rate plus 2%, for delayed amount for actual period of delay. Allowed. Exempted PSEB/licensee will provide facility of irrevocable and revolving, letter of credit issued by any nationalized bank Amount of L.C. shall be equal to the bill amount of one month on the basis of average of last three months.
(iv) Banking (v) Exemption from Electricity Duty
(vi) Letter of Credit (LC)
Compendium of State Government Policies on Renewable Energy Sector in India 8 Clearance for NRSE Projects
171
State government to provide the clearances in time bound manner through a single window clearance mechanism within a period of 60 days
The detailed procedure for according approvals/ clearances and composition of empowered committee- refer Appendix-I of policy 9 Allotment of Project On the basis of financial and technical parameters contained in the tender document, bids would be invited and evaluated by an expert technical committee appointed by PEDA. Punjab Energy Development Agency (PEDA) . Powers vested with the Government
10 11
Nodal Agency Amendments/ relaxation/ interpretation of Provision of the Policy Applicability
12
Five years w.e.f. 8th December, 2006.
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GOVERNMENT OF RAJASTHAN
POLICY FOR PROMOTING GENERATION THROUGH NON-CONVENTIONAL ENERGY SOURCES
Sl. No. 1 Order Description Summary Energy Deptt. letter no. F.20 (4) Energy/2004 dated 25.10.2004 and amended vide letters of even nos. dated 10.3.2005, 16.7.05, 18.8.05, 24.2.06, 30-11-06, 19-1-07, 27/29-3-2008, 15.5.2008, and 10-11-2008. Policy For Promoting Generation Of Electricity through Non-Conventional Energy Sources - 2004 To promote Generation of power from non-conventional energy sources, Rajasthan Renewable Energy Corporation (RREC). It will also play the role of facilitator for: Execution of Power Purchase Agreement (PPA) / Wheeling and Banking Agreement (WBA) with Rajasthan Vidyut Prasaran Nigam (RVPN) / Discoms Loans from IREDA/PFC/REC/Financial Institutions/Commercial Banks. Power Producers may use the power for captive consumption or for sale to consumers/licensees including Discoms. The cap on purchase of energy from power generated through Non Conventional Energy Sources shall be in accordance with that specified by the Rajasthan Electricity Regulatory Commission. Energy to be offered to open access consumer/ Discoms/ CPPs within the State for fulfillment of RE Obligation as per RERC After fulfilling RE Obligation developers may sell surplus energy out side the State. The price of power to be sold by the Producer to consumers / licensees other than Discoms to be determined by the mutual understanding / agreement between the seller and the purchaser. For the Discoms the price of such power will be as per RERC order 03-2007 & amendment 14-03-2007 09-
2 3 4
Title Objective Nodal Agency
5 Sale of Power
For wind farms commissioned after March 31, 2007 and for biomass power plants commissioned after September 30, 2008, the tariff shall be in accordance with that specified by RERC. Except in case of solar power not exceeding 220 KW the grid interfacing arrangements will be made by Developer/ RVPN/ Discom as under: Pooling Station: Interfacing arrangements from the points of generation to the pooling station including the pooling station shall be developed and maintained by the Power Producer as per the specifications and requirements of the RVPN/ Discom, and the entire cost for this will be borne by the Power Producer. Receiving Station RVPN/Discom shall finalise the location in consultation with RERC of receiving station and electricity generated will be received at minimum 33 kV level. Power Producer to pay Rs. 2 lacs per MW to RVPN/ Discom, creation for proper facility for receiving Power. Charges to be 30 days of allocation by RERC for wind projects
Grid Interfacing
(A)
Compendium of State Government Policies on Renewable Energy Sector in India Transmission from Pooling Station to Receiving Station: To be developed by the Power Producer at his own cost.
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This will, however, be deemed to have been transferred to RVPN / Discom for O&M as soon as interconnection between pooling station and receiving station is established.
Note: In case the length of the transmission system up to Receiving Station is at a distance longer than that specified by RERC, compensation shall be provided to Developer as to be determined by RERC. Transmission and Distribution Network Augmentation: For augmentation of transmission/ distribution systems to evacuate the power from receiving station, RVPN / Discom shall develop/ augment the necessary transmission/ distribution network within mutually agreed timeframe. (B) RVPN/ DISCOM to grant inter-connection facility, wherever adequate power evacuation capacity is available, within one month of intimation or COD, whichever is later. Power Producer to install necessary current limiting devices such as Thyristor in the generating equipment. Capacitors of sufficient rating to be provided in the Wind Farm to ensure that the average power factor is maintained as per requirements of State Load Despatch Centre, measured at metering point of the Wind Farm.
(C)
(D)
Power Producer shall comply with Grid Code including Load Despatch and System Operation Code, Metering Code, Protection Code, Safety Code etc. Except in case of power sold to Discoms, the Power Producer to pay wheeling charges @ 10% of the energy billed into the grid inclusive of T&D losses. In respect of third party sale and / or captive use for which PPAs are signed after March 31, 2007, the transmission, wheeling and other charges shall be as specified by RERC. Allowed Discoms at the end of 31st December of every calendar year, to pay to the Producer for the energy billed into the grid but has remained un-utilised by the Producer at the pooled rate for procurement of power by the Discom in the preceding financial year If at the end of the calendar year it is found that the Power Producers has drawn more electricity than that billed by him into the system, he shall be liable to pay the cost of the same at the HT tariff prevailing at the end of the proceeding financial year. In respect of third party sale and / or captive use for which PPAs are signed after March 31, 2007, the banking of power generated shall be as specified by RERC. Sale of electricity by Power Producer to Discoms to be governed by the PPA executed between the Discom and the Power Producer and witnessed by RREC. PPA for wind power will be for 20 years. For power Projects other than wind power PPA will be for 10 years. At the end of the period of PPA the new PPA can be executed at mutually agreed rates Power Producer to execute WBA with the Discom for banking.
Wheeling
Banking
Power Purchase Agreement (PPA) and Wheeling & Banking Agreement (WBA)
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Compendium of State Government Policies on Renewable Energy Sector in India Wheeling agreement with RVPN to be executed separately if the Producer intends to use the system of RVPN for wheeling power PPAs & WBAs to be assigned, in parts, on one-time basis in each case, to other parties after completion of the project and its connectivity to the grid, with the consent of RREC & RVPN / Discom(s) on payment of Rs. 1.00 lac per application to RREC
10 11 12
Settlement of Accounts Merit Order Dispatch Incentive by the State Government
On monthly basis except banking arrangements which will be settled within one month of the closing of every calendar year. Not applicable Consumption of electricity generated by Power Producers for its captive use or for sale to a nominated third party exempted from Electricity Duty @ 50% for a period of 7 years from COD. Generation of electricity from RE Sources to be treated as eligible Industry under the schemes administered by Industries Department and incentives available to industrial units to be available to the Power Producers. A State Level Empowered Committee headed by Addl. Secretary (Infrastructure) to provide single window clearance Government land required for RE projects is to be allotted to Power Producer at concessional rates viz, 10% of DLC rates as detailed below: (a) (b) (c) Site for wind power project to be chosen by the Developer after ascertaining the wind parameters. Land other than the Government land to be procured by the Producer/ Developer at his own cost. While land may be allotted to the Developer / Producer for the project, signing of lease agreement by the Collector shall only be after deposit of the Security Money in RREC for at least 10% of the Project capacity for which the land was allotted.
13
Land Acquisition
RREC to forward land allotment application for the identified Govt. land to the concerned District Collector within a period of 7 days from the receipt of the application. The land application in case of wind farm can be forwarded only if the same is for site for which wind parameters are certified by C-WET. Power Producer to register the application with RREC in prescribed proforma along with the required project report, documents, attachments and the interfacing scheme etc. Power Producer to deposit an amount of Rs. 50,000/- per MW with RREC towards processing fee, which shall be non-refundable along with the application. In case the applicant had already submitted an application for a project under Wind Policy 2003, along with processing fee, and re-apply for the same project under the new NCES Policy 2004, the processing fee paid earlier for the same project may be adjusted in the total processing fee due under the NCES Policy 2004. For the projects registered from April 1, 2007 onwards the processing fee shall be Rs. 25,000/- per MW. Power Producer to select the site for establishing the power project and submit the application to RREC for allotment of Government land if any. Every application would be given a registration number by RREC. List of registered applications shall be displayed on the notice board of RREC.
14 Registration of Projects
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In exceptional circumstances, where the wind pattern changes adversely for any particular location, RREC may permit re-location of a project to an alternative site once during the life of the project, so long as the investor remains the same. For such change, no additional charges shall be levied other than for the land so allotted. In case such relocation entails additional investment for evacuating the power on the part of RVPN / Discom, the connectivity charges shall be levied as per actuals. RREC to forward the grid interfacing plan submitted by the applicant to RVPN/Discom for technical acceptance. RREC to issue in principal clearance for the project on verification of following: (a) (b) Plan/layout of the project to be strictly in accordance with standard guidelines of MNRE/C-WET. Suggested grid interfacing arrangement of the applicant is accepted and approved by RVPN/Discom.
15
Approval of Power Project
Project proposal in principle cleared by RREC and put up before the State Level Empowered Committee (SLEC). Decision for single window clearance (approval of project) will be taken by the SLEC within one month. Power Producer to initiate activities on the identified / allotted land only after approval of SLEC. If any Producer initiates activities on the identified or the allotted land without project approval, subject to regularization of land by the competent authority, grid connectivity would be allowed to such project only after payment of an amount @ Rs. 5.00 lacs per MW as penalty amount by Power Producer to RREC. If this provision is violated second time by the Power Producer, no grid connectivity would be permitted to such project. Developer to deposit a refundable amount as security deposit with RREC, towards completion of the project in the prescribed time frame, within 30 days of the approval of the project by SLEC in the case of solar power projects and Capacity allocation by RREC in the case of wind energy projects In the case of biomass power projects. SECURITY DEPOSIT, as per item 16A (A) Wind Energy Projects: (a) (b) (i) (ii) (iii) (iv) In Jaisalmer district : Rs. 10 lacs per MW In other districts : Rs. 5.0 lacs per MW Amount to be Rs. 5.0 lacs with effect from April 1, 2007. For projects up to 25 MW, the security deposit shall be in the form of cash, on which no interest shall be payable. For projects exceeding 25 MW, the security deposit may be in the form of bank guarantee. If the security amount is not deposited within the time specified, the approval shall stand withdrawn and priority would be accorded to the next applicant. For re- submission to SLEC, the applicant to re-register the case, along with the processing fee, within the next 30 days, failing which the land allotted shall stand cancelled.
16 Security Deposit and its forfeiture
Provided that:
(v)
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Compendium of State Government Policies on Renewable Energy Sector in India (B) Biomass Energy Projects: Rs. 1.0 lac per MW. - in the form of cash or bank guarantee. (C) Solar Power Projects: Rs. 5.0 lac per MW. - in the form of cash or bank guarantee. TIMEFRAME FOR COMPLETION of A. Wind Energy Projects: (from date of allocation of capacity by RREC)Capacity (MW) Up to 25 26 - 50 51 - 75 76 - 100 101 & above B. Period (Months) 6 12 16 20 24
Biomass Energy Projects: (from date of project approval by SLEC)- 20 to 28 months
C. Solar Power Projects: - As determined by SLEC. EXTENSION OF TIME SCHEDULE RREC may extend the time schedule and provide new schedule if:(a) Power Producer makes an application giving convincing reasons for delay along-with extension fee, at least 15 days before the expiry of the prescribed period Extension Period (After the date of scheduled commissioning) One-month Two-months Three-months More than three months (b) (c) Amount (Rs. / MW) 50,000 1,00,000 2,00,000 5,00,000
The reasons given by the Power Producer in the application are found convincing. In the case of solar power projects, a request for extension in the original time frame stipulated by SLEC for the completion of the project shall be examined by a Committee and its recommendation would be placed before the SLEC for appropriate decision in regard to extension of the time period.
FORFEITURE (i) (ii) (iii) 17 Special Concessions/ Conditions For Biomass Projects Security deposit to stand forfeited in event of not adhering to the prescribed time schedule. Allotment of land shall also stand cancelled if the Project is not completed within the time frame Producer shall not be considered for allotment of land thereafter.
RESERVATION OF AREA FOR BIOMASS COLLECTION : When a Biomass based power plant of 7.5 MW is being set-up at a duly approved site, no other Biomass power plant shall be allowed within a radial distance of 40 kM provided that; (i) State Government shall have the right to review the Biomass availability and reduce the reservation area to not less than 30 kms radius, if it
177
would not affect the sustainability of existing plants. However, such review shall not beheld before 2011. (ii) Projects cleared under Policy dated 11.3.99 and complying with conditions laid down vide amendment dated 28.2.03 shall continue to enjoy 50 Km. reservation facility. Small capacity Biomass based Gasifiers being set-up under any programme of the State Govt. / GOI, through RREC or otherwise, would be allowed to be set-up within the reserved area defined as above. If Producer desires to install lower/higher capacity plant or wants to enhance the capacity of the power plant above 7.5 MW, the reservation area could be reduced/ extended by RREC to meet proportionate Biomass requirement for the plant. TIMEFRAME OF COMPLETION FOR BIO MASS PLANT (from date of registration) (i) (ii) Deposit of Security amount (Rs. 1 lac / MW) - within 1 month Finalization of land and power evacuation plan - within 4 months.
(iii)
(iv)
A.
For non-compliance of above conditions, the registration shall stand cancelled and the security deposit, if deposited, shall be refunded. B. EXTENSION OF TIME SCHEDULE On submission of application to RREC, along with convincing reasons, 15 days prior to expiry of the time-limit, along with penalty amount : C. For extension up to 1 month - @ Rs. 0.50 lacs / MW For extension up to 2 months - @ Rs. 1.00 lacs / MW No further extension beyond this limit.
USE OF CONVENTIONAL FUEL In the event of reduced biomass availability, Power Producer could be permitted to use conventional fuel (i) Up to 30%, computed on the basis of declared heat rate linked to P.L.F, plant of the aggregate capacity of 15 MW and above at a particular location up to 25%, on similar basis, for those below 15 MW.
(ii) D.
AVAILABILITY OF WATER Producers allowed to use water for generation, wherever possible. The modifications(s) required, if any, in the existing canal system to be done by the Irrigation Department at the cost of the Power Producer. For use of ground water, specific approval from concerned authorities has to be taken.
18 General Conditions (Savings)
Power projects established / for which PPAs have been signed under the Policies -1999, 2000 and 2003 to be governed as per the terms & conditions under the concerned policies provided the power projects gets commissioned before 31st March 2005.. Renewal of terms & conditions, if any, will be guided by this Policy or any other Policy prevalent at that time. For projects based on biomass the period of commissioning will be up to 30th September, 2008. Wind power project approved by RERC for which land has been allotted and settings also approved by RREC before promulgation of this Policy and substantial investment (50% of the proposed capital investment) has already been made by Power Producer will be governed by Policy-2003.
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Compendium of State Government Policies on Renewable Energy Sector in India (Clarification - The limit of 250 MW on PPAs to be signed by Discoms under Policy-2003 shall be observed by the Committee while considering such cases) A committee headed by Principle secretary (Energy) to determine whether the substantive investment has been made. Committee to consider only those cases where developer has submitted the application within 10 days of Notification of the policy.
Govt. of Rajasthan, Energy Deptt. No. F.20(4)Energy/2004 dated 24 -2-2009 Clarification regarding Fulfillment of RE Obligation for Open Access as given below: In continuation to the clarification issued by Energy Department vide No.20(4jEnergy-2004 dated 10.10.2008 regarding fulfillment of RE obligation for open access by the power producers setting up power plants based on RE Sources in the State under NES Policy 2004, following clarifications are hereby further issued:-
1.
Free Electricity to the State- Since the Solar Power Producers would be utilizing vast areas of land in the State,
they shall supply free power to the state as given below on the basis of actual generation : Installed Capacity (a) 0-50 MW capacity (b) 50 MW and 100 MW (c) 101 MW to 150 MW (d) 151 MW to 200 MW (e) 201 MW to 250 MW (f) Above 250 MW Quantum of free Nil 1% actual generation 2 % actual generation 3 % actual generation 4 % actual generation 5 % actual generation
2.
First Right of Refusal: The State Discoms would have the first right of refusal to 20% of the total energy generated. The quantum of power to be so purchased would have to meet the Renewable Energy obligations as may be prescribed by RERC at the relevant point of time. Tariff : The tariff for power purchase by State Discoms would be as prescribed by RERC. Open Access connectivity to the transmission system shall be given against the normal charges if spare capacity is available. In case spare capacity is not available the Power Producers shall be required to pay the cost of system strengthening/ augmentation as per provisions of Open Access Regulations. As per policy, the solar power producer shall be required to draw dedicated transmission line to the feasible sub-station as decided by RVPN. In case the total power produced is sold to the Discoms within the State then the cost of the system strengthening/ augmentation as given at (4) above will not be payable and Open Access for solar power plants shall only be considered in such cases where the land has been procured by the solar power producer at his own level and not in case of allotment of government land for the project. In case of unforeseen circumstances, like cloudy days, if the generation from the solar power plant is less than the quantum of electricity supplied to the third party by the Discom under third party sale agreement, the power producer will be liable to deposit to the Discom, charges for the excess power supplied, at the rate on which he sells power to the third party or the highest rate at which the Discom has procured power in that period, whichever is higher.
3. 4.
5. 6. 7. 8.
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POLICY FOR ELECTRICITY GENERATION FROM WIND ENERGY - 2003
Sl. No. 1 2 3 4 Order Title Objective Operative Period Description Details Energy Deptt. letter No.F.20(3) Energy / 98/Pt.III dated 30.4.2003 Policy for Promotion of Electricity Generation from Wind, 2003 To support wind power generation, up to 250 MW, with cap and attract investment in the State. Applicable to Wind Power Plants commissioned up to 31st March, 2009, unless superseded or modified by any other order. Policy supersedes the Policy for Promoting Generation of Power through Wind issued vide Government Order No. F.20(3)Energy/98 dated 4.2.2000. However it shall continue to be applicable to those Wind Power Projects, up to the cap of 100 MW for which Rajasthan Renewable Energy Corporation (RREC) has given specific approval. Wind Farm Developers (WFD), Wind Energy Generator (WEG) manufacturers, Government owned Companies, Private Companies, Joint Venture Companies and Private investors. Eligible producer to obtain permission for installation of wind power plant from State Government. WFD or WEG manufacturer who has set up at least 7.5 MW wind generation capacity in the country Manufacturer of WEGs having supplied, installed, commissioned wind energy generation capacity of at least 25 MW in India A company promoted by such entrepreneur and/or manufacturer. WEGs installed are new machines . Minimum capacity of WEGs proposed for installation to be 225 kW. WFD / Investor would be eligible for using the power produced for captive consumption or sale to a third party or to Rajasthan Vidyut Prasaran Nigam (RVPN) or any combination of the three options available. A PPA or Wheeling Agreement, or both, as the case may be, will be required to be entered into with RVPN /concerned Discom(s). In the case of power to be sold to RVPN/ DISCOMS, RVPN to pay a rate of Rs. 3.32 per unit for power supplied during 2003-04 which shall be increased at a simple rate of 2% (of Rs. 3.32) every year on 1st April of the year for a period of up to 10 years, i.e., up to 2012-13 with Base year 2003-04. Thereafter, from 2013-14 and onwards a fixed rate of Rs. 3.92 per unit charges to be paid by RVPN for a period up to the 20th year of the project. In case of sale of power to third party the Investor / Developer shall obtain license from RERC under Rajasthan Power Sector Reforms Act 1999. Tariff for such third party sale to be determined by RERC. Investors would be free to negotiate quantum of sale of power, if effected to a third party, and bill and collect the same directly from such third party. RVPN / Discoms to transmit Power on their grid and make it available to such producer for captive use or sale to a third party nominated by such producer within the State.
Eligible Producers
6 Eligible Wind Farm 7 Sale of Power
8 Wheeling
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Compendium of State Government Policies on Renewable Energy Sector in India Wheeling charges would of 10% of the energy fed into the grid. Third party if nominated to be consumer of DISCOM of category Large Industrial Service, as defined in Discom Tariff rules, unless the concerned DISCOM specifically relaxes this condition. Allowed in a calendar year for the period up to 31st December of the said calendar year. Banked energy, if not consumed within this period, to be treated to have been sold to RVPN at 60% of the prevailing energy charges of Large Industrial Service tariff rate. RVPN to enter into a PPA for a period of 20 years from COD. All transactions between RVPN and the Eligible Producers to be settled on monthly basis. RVPN / concerned DISCOM to sign the PPA / WBA within one month of its presentation
Banking of Power
10
Power Purchase Agreement (PPA)
11 12
Electricity Duty Grid Interfacing, Metering
Exempted for its captive use or for sale to a nominated third party for a period of five years from COD. Developer to undertake and bear the cost of grid interfacing facilities plus maintenance cost. RREC to finalize plan for the location of pooling station in consultation with RVPN and respective DISCOM Developer to deposit Rs. two lacs per MW with RREC for developing such pooling station. This amount would be transferred by RREC to RVPN. RVPN/concerned Discom to undertake to augment sub-station capacity at 132/33 or 33/11 kV or higher levels, augmentation of transmission lines and all related works at its cost, to receive the power generated by Eligible Producer. Developer allowed to set up own Sub-station and transmission lines at their cost as per pre-approved laid down specifications and prudent utility practices of RVPN. The facility so created would be deemed to have been transferred to RVPN by the developers/investor for operation and maintenance. Amount for development of pooling station shall not be charged from such Wind Farms. RVPN / concerned DISCOM to grant inter-connection facility, wherever adequate power evacuation capacity is available, within 15 days of intimation or COD, whichever is later. Eligible Producer, at his cost, install, at the pooling station, two separate meters, one for the import and another for export of power from/ to the grid RVPN / Discom to seal the meters and metering boxes. In addition to the above one back up metering system shall also be provided at the Wind Farm. One meter for recording reactive power drawn from the Grid shall also be provided. Eligible producer to install necessary current limiting devices such as Thyristors in the generating equipment. Capacitors of sufficient rating to be provided in the Wind Farm to ensure that the average power factor is maintained above 0.9, measured at metering point of the wind farm.
181
Eligible producer shall comply with Grid Code including Load Despatch and System Operation Code, Metering Code, Protection Code, Safety Code etc. as applicable from time to time in the State of Rajasthan. Applications for allotment of the Wind Project sites to be submitted in the prescribed Application Format to Rajasthan Renewable Energy Corporation Limited. The Developer to deposit an amount of Rs. 25,000/- per MW along with his application towards processing fee, which shall be non-refundable. RREC / RVPN / Discom to provide clearances within a period of two months from the date of submission of application. Application/ PPA to be terminated for not ensuing to COD Developer to deposit with RREC a refundable amount of Rs. one lac per MW as security deposit towards completion of the project within the stipulated time. Amount to be forfeited in the event of failure to adhere to the stipulated schedule of COD. The Developer to select the site for establishing the Wind Farm, after ascertaining the wind parameters in the wind mast areas mentioned in the Policy. RREC to take all necessary actions for allotting sites to developers, in accordance with procedure approved by Govt. of Rajasthan. State Government to provide land for the proposed wind farm at 10% of District Level Committee (DLC) rates on first cum first served basis. Land allotment to be treated as cancelled if the project is not commissioned as per committed schedule, and it is the sole discretion of RREC.
13
14 Security Deposit
15 Land Acquisition
16
Clearances
RREC shall facilitate clearances for the project at the State and Central levels and shall also facilitate PPA with RVPN/concerned DISCOM and grant of loans by IREDA/ PFC/ REC and other term loan Agencies/Commercial Banks.
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POLICY FOR PROMOTING GENERATION OF ELECTRICITY FROM BIOMASS, 2010
Sl. No. 1 2 3 4 5 Description Order Title Objective Enforcement Use of Power for Captive Purposes/ Sale Summary Energy Deptt. Notification No. F 20 (10) Energy/09 dated 26.02.2010 Policy for Promoting Generation of Electricity from Biomass, 2010 To promote generation of electricity from biomas From 26.02.2010 till superseded or modified. Power Producer to use power for captive consumption or for sale to third party/ licensee including Discoms Minimum Renewable Power Purchase Obligation of State Discoms to purchase energy generated from biomass based power plant to be as per the Order of Rajasthan Electricity Regulatory Commission (RERC). Grid interfacing arrangements to be made by power producers / RVPN/ Discom as under:
Grid Interfacing (i) (ii) Generating Plant sub Station. Receiving Station
To be developed and maintained by Power producer as per the grid code and entire cost to be borne by developer. Producer to terminate their 33 kV (minimum voltage level) power evacuation feeder to nearby RVPN's 132/33 kV or 220/132/33 kV GSS or any other RVPNS's GSS in consultation with RREC. Producer to pay grid connectivity charges to RVPN/ Discom as finalized by RERC within 3 months of PPA. Charges to include cost of complete line bay and its interconnection with existing electrical system at RVPN GSS. Evacuation system beyond Generating Plant Sub Station till the nearest RPVN's 220/132/33 kV or 132/33 kV grid sub station to be developed by Producer as per RERC regulation dated 23.1.2009 and amendments. If line bay and grid connectivity has been made by RVPN at a particular voltage (33 kV) and power producer on later date wants to supply the power on higher voltage, then on feasibility and consent of RVPN, this will be done by RVPN as a deposit work on behalf of the Producer. If Power Producer first connects his feeder to Discm's sub station and later on wants to connect his feeder to RVPN's sub station, then additional line work to be done by Producer and the addition of line bay in RVPN sub station to be done by RVPN as deposit work on behalf of Producer.
(iii)
Grid Connectivity
(iv)
Transmission from Generating Plant Sub Station to Receiving Station
(v)
Transmission & Distribution Net work Augmentation
To evacuate power from receiving station, RVPN/ Discom to develop / augment the necessary transmission / distribution net work within mutually agreed time frame. RVPN/ DISCOM to provide interconnection facility one month before COD as intimated by the Power Producer. Producer to install necessary current limiting devices such as Thyristor in the generating equipment, if required. Capacitor of sufficient rating to be provided to ensure that average power factor is maintained as per the requirement of State Load Despatch Centre, measured at metering point. Power producer to comply with Grid Code including Load Despatch and System Operation Code, Metering Code, Protection Code etc. as applicable in the State of Rajasthan.
Compendium of State Government Policies on Renewable Energy Sector in India 7 Power Purchase Agreement (PPA) 8 9 9.1 9.2 Settlement of Accounts Incentive by the State Government Exemption from Electricity Duty Grant of Incentives available to Industries Availability of water for Power Generation
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Sale of electricity to Discom to be governed by the PPA executed between concerned Discom and the Power Producer as per the order of RERC. For third party sale or for captive use within the State, Producer to execute a wheeling Agreement with Discom. Wheeling Agreement with RVPN to be executed separately if the Producer intends to use RVPN system for wheeling of power. Draft PPA to be finalized by RREC in consultation with RVPN/ Discom.
All transactions between the Producer and Discom/ RVPN regarding price of power and wheeling charges to be settled on monthly basis.
Consumption of power for Captive use to be exempted from Electricity Duty @ 50% for a period of 7 years from COD. To be treated as eligible industry under the scheme administered by Industries Department and incentives available to industrial units under such scheme to be available to the Producer. Allowed to use water from Water Resource Department (WRD) for power generation. In case use of ground water, permission to be obtained from Ground Water Department/ WRD. Producer to intimate estimated water requirement to RREC along with source of water. Modification(s) if any, in the existing canal system to be done by WRD at the cost of power producer. Ground water department to accord similar status to Biomass power Plant using "air cooled technology" as granted to drinking water scheme while granting NOC for drilling bore well/ tube well for fulfilling water requirement of the projects
9.3
9.4 10
Land on Concessional Rate RREC to be Nodal Agency
Government land to be allotted to Producer at concessional rate of 10% of District Level Committee (DLC) rates . Rajasthan Renewal Energy Corporation (RREC) to play the role of facilitator for: (i) (ii) (iii) (iv) (v) (vi) (vii) Execution of PPA/WBA with RVPN/ Discoms; Loans from IREDA/PFC/REC/Financial Institutions/ Commercial Banks; Allotment of revenue land; Water allocation from concerned department; Approval of power evacuation plan and allocation of bays etc. Arranging other statutory clearances/ approvals; Various clearances related to energy plantation for use as supplementary fuel in Biomass Power Plant. Biomass project up to 20 MW capacity to be eligible. Provided that project of less than 5 MW capacity can be set up within the reserved area of any plant capacity of 5 MW and more with the permission of RREC. Further no area to be kept reserved for projects less than 5 MW. Producer to submit application with RREC in the prescribed Performa (Form- A) appended with policy as Appendix 'F' along with the required documents as applicable. 1. 2. Certified copy of the memorandum & Article of Association of the Company. Certified copy of the registration certificate.
11
Registration of Power Project
184
3. 4.
Certified copy of the partnership deed. Certified copy of the Authority conferring powers on the person(s) who are competent to execute the MOU/ the agreement with GoR/ RREC/ RVPN/ DISCOM. Biomass Assessment Report. Pre Feasibility Report (PFR)/ Detailed Project Report (DPR). Processing fee in the form of DD payable to RREC at Jaipur. Annual report of the Company for last three years.
5. 6. 7. 8.
Producer to deposit Rs.25000/- per MW along with application with RREC towards processing fee, which is not refundable. Service taxes and cess etc payable extra as applicable. RREC to issue acceptance to the project within one month from the date of receipt of complete application. If Power producer submit an application for a specific area with out PFR/ DPR and Biomass assessment report, an application registration number (ARN) will be given by RREC and area will be booked for that power producer. On submission of DPR and Biomass assessment report within 6 months from the date of registration of application, project will be registered with RREC. If DPR and Biomass Assessment Report are not submitted within the stipulated period of 6 months the application shall be deemed to be cancelled and that specific reserved area to be free for any other power producer. If Producer wants to change the location of power plant due to insufficient availability of biomass, the application for change to be given within 3 months from the date of submission of application (ARN). RREC to reserve new available area within 15 days, but DPR and Biomass assessment report for new site have to be submitted within 8 months of the date of allotment of ARN, otherwise application would deemed to be cancelled. Biomass Power plants commissioned under earlier policies of State Government shall continue to be governed by the relevant policies in operation at the time of commissioning of the project. Plant for captive use with out using State grid has to register the project with RREC and to take approval of the State Government for setting up the project. Site for biomass power plant to be chosen by the Producer after ascertaining availability of biomass, required water and power evacuation facilities etc. RREC to forward land allotment application, grid interfacing plan, water requirement etc to the concerned authorities. Private land to be procured by the Producer directly from the private parties. Project meeting the following requirement to be considered as "in principle cleared" project. (i) (ii) (iii) (iv) For Government land, the land allotment is approved by the Revenue Department. For private land, the land has been procured by Power producer & land conversion done by the competent authority. Grid interfacing arrangement approved by RVPN/Discom. Allocation of water is approved by the concerned Department.
12
Approval of Power Projects
185
The "in principle cleared" project proposals meeting the above requirements to be put up for single window clearance before the State Level Empowered Committee (SLEC) headed by Chief Secretary.
13
Reservation of Area for Biomass Power Plants
No other Biomass Power Projects to be permitted within the reserved area of existing/ approved/ earlier registered projects as specified under: Sl. No. 1 2 3 4 5 6 5 More than 5 and up to 7.5 More than 7.5 and up to 10 More than 10 and up to 12.5 More than 12.5 and up to 15 More than 15 and up to 20 Capacity in MW Area Reserved (Radius in km) 60 75 80 85 90 100
Provided that: (a) (b) State Government shall have the right to review the biomass availability and accordingly reserve the right to change the reservation area. The reservation of area for plants commissioned/ approved and registered under earlier policies to be governed by the provisions as specified above provided that such reservation of already commissioned / approved and registered power plants does not overlap with the reserved area of any other power plants commissioned/ approved and registered under any policy. In the event of overlapping of reserved areas, the area reservation shall continue to be governed by the respective policy under which the same is registered. Biomass, i.e., forestry based & agro based industrial residues, energy plantation, forestry and agro-residues to be utilized as fuel for biomass power project. Biomass produced within Rajasthan such as Wheat husk, Millet husk, Barley husk, Jwar husk etc. not allowed to be used as fuel. As per RERC order dated 17.08.2009, Biomass producers to be allowed to use fossil fuel (such as coal, lignite, natural gas, municipal waste) up to 15% during the lean period in some years. Producers to deposit security amount @ Rs.1 lakh/MW within 2 months from the date of issue of PRN. Security amount to be refunded to the power producer within 2 months of commissioning of the project after recovery of penalty if any. Deposit of security amount (Rs.1 lakh/ MW) - within 2 months from the date of issue of PRN. Finalization of land, power evacuation plan and availability of water - within 4 months from the date of issue of PRN For non compliance of above condition, the extension in time limit to be granted on submission of application to RERC along with extension fee as follows: For extension up to 2 months - @ Rs.15000/- per MW For extension of more than 2 months up to 4 months @ Rs.25000/per MW No further extension beyond this limit and- project to be treated as cancelled and security deposit to be refunded by RREC within 15 days of expiry of time limit
14
Fuel for Biomass Power Plant
15
Security Deposit
16
Time frame for completion of different activities, subject to force majeure condition
186
Compendium of State Government Policies on Renewable Energy Sector in India Producer to commission the project within 24 months from the date of approval of the project. However extension in time schedule to be granted by SLEC on case to case basis after depositing penalty amount as under: (a) (b) (c) (d) For delay up to 3 months For delay more than 3 months but up to 6 months For delay more than 6 months but up to 9 months For delay more than 9 months Rs.25,000/- per MW Rs.50,000/- per MW Rs.75,000/- per MW Rs.1,00,000/- per MW
Power Producer to furnish monthly progress/status report of project from the date of approval of the project. Non compliance leads to forfeiting of security money and cancellation of project approval. Copy of work order along with cost, delivery schedule of supplies, civil works execution and erection & commissioning schedule to be supplied by the producer within 3 months of SLEC approval. Financial closure to be completed within 4 months from the SLEC approval Incentives for early completion as per RERC tariff order. After completion of the project and before commissioning, producer to furnish the complete up dated project report. Representatives of RREC to be present during commissioning of the project and commissioning report to be issued by RREC. Obligation of the Power Producer to be excused for the period of force majeure. Price of power to be sold by the power producer to consumer/ licensee other than Discoms to be determined by the mutual understanding/ agreement between seller and purchaser. Price of power to be sold to Discoms and other charges/ conditions to be specified by the Commission. The feed in tariff and other charges for mustard husk based project for F.Y. 2009-10 & 2010-11 to be as per Appendix-A appended with the policy. Power producer intending to set up biomass power project with non mustard biomass including Prosopis-Juliflora as a primary fuel source, to seek separate tariff determination by the Commission.
17 Price of Power and Other Charges
18
Promotion of Development of Prosopis- Juliflora/other Energy Plantation on Govt. land for use as supplementary fuel in Biomass Power Plants
Categories of land available for development of Prosopis- Juliflora/ other Energy Plantation: 1. Degraded forest land through JFM committee. 2. Govt. waste land/barren land/ saline land, Panchayat waste/barren land/ saline land through concerned Gram-Panchayat. Development of Prosopis- Juliflora/ other Energy Plantation on private land: Developer may develop Prosopis- Juliflora/ other Energy Plantation on private Khatidari land to be obtained on lease basis for 30 years or purchase land which is barren and unutilized for use as supplementary fuel for generation of electricity from biomass power plant in excess of ceiling limit prescribed in the Ceiling Act, 1973.
18.1
Eligibility Criteria
Facility available to Power plant who intends to supply 100% to State Discoms and those Power plants which are commissioned under earlier policies of the State Govt. and are supplying 100% power to State Discoms. 1. Eligible producer to identify suitable land for development of ProsopisJuliflora/ other Energy Plantation within the reserved area of power plant registered with RREC after approval of the project. Maximum 500 Hectare/ MW land in all categories to be permissible for development of Prosopis- Juliflora/ other Energy Plantation.
18.2
Identification of suitable land
2.
Compendium of State Government Policies on Renewable Energy Sector in India 18.3 Application for permission for development of ProsopisJuliflora/ other Energy Plantation on the identified land 1.
187
2. 3.
Eligible producer to apply to RREC for identified land for development of Prosopis- Juliflora/ other Energy Plantation in the prescribed format Appendix-G of the policy For non forest land producer to furnish resolution of the concerned Gram Panchayat in the prescribed format Appendix-B of the policy For degraded forest land producer to furnish resolution of the concerned JFM committee in the prescribed format Appendix-C of the policy
18.4 18.5
District Level Empowered Committee (DLEC) Grant of Permission
A committee under the Chairmanship of District Collector and members of concerned departments to be constituted. Land to be made available to the Concerned Gram Panchayat/ JFM committee for a period of 20 years and can be extended by DLEC for a period of another 10 years After approval of DLEC, a tripartite agreement between concerned Gram Panchayat, Zilla Parishad (CEO) and Power Producer to be executed with respect to the identified land in the format at Appendix-D of Policy. For degraded forest land a tripartite agreement to be executed between JFM committee, Forest department and Power Producer in the format at Appendix-E of Policy. The produce of approved land to be made available to Biomass Power Producer by the Gram Panchayat /JFM committee on the price as per terms and condition of the agreement . Price of biomass produced from Prosopis- Juliflora/ other Energy Plantation to be determined by DLEC for every financial year on the basis of fuel cost prescribed by RERC Responsibility of cutting uprooting and transporting of biomass produce from plantation site to the plant site rest with power producer. 40% of the fuel cost prescribed by RERC to be taken as cost towards cutting uprooting and transportation on lump sum basis. Producer to establish weighing facility at the plant site under the direction of DLEC. Producer to make the annual payment to Gram Panchayat /JFM committee as per the price determined at clause 2 above in four equal quarterly installments as per schedule given in the policy.
18.6
Determination of sale price by DLEC
1.
2.
3. 4.
18.7
One time Uprooting/ harvesting of ProsopisJuliflora from Degraded Forest Land One time Uprooting/ harvesting of ProsopisJuliflora from Government/ Panchayat Land Withdrawal of permission for development of ProsopisJuliflora/ other Energy Plantation EA-2003/ CERC/ RERC Regulation to prevail
Prosopis- Juliflora grown on degraded forest land which is identified by forest department for one time uprooting/ harvesting falling within the reserved area of Biomass Power Plant to be made available to the plant on priority. Prosopis- Juliflora grown on Government/ Panchyat land which is identified by Gram Panchyat for one time uprooting/ harvesting falling within the reserved area of Biomass Power Plant to be made available to the plant on priority. If Power Producer fail to install/ commission the power plant, the permission given for development of Prosopis- Juliflora/ other Energy Plantation on the identified land and all the grants allowed above shall stand cancelled. Not withstanding any thing contained in this policy the provision of the Electricity Act-2003 and the applicable CERC / RERC Regulations/ Orders issued to prevail for the purpose of implementation of this policy.
18.8
18.9
19
188
TAMIL NADU ENERGY DEVELOPMENT AGENCY

WIND ENERGY
Sl. No. 1 Description Potential in Tamil Nadu 2 Technology for Harnessing Wind Energy 3 Incentives offered for investors (a) MNRE, Govt. of India Accelerated depreciation on wind electric generator up to 80% for income tax calculations subject to a minimum utilization for 6 months in the year in which deduction is claimed. Import of wind electric generator permitted under Open General License. Custom duty concessions on wind electric generators and certain essential spares. Tax holiday allowed for 10 years in respect of profits/ gains from the private wind electric generators TNEB to buy surplus energy at the rate of Rs.2.75 per unit from the existing wind mills commissioned before 15.5.2006 from the date of renegotiation of existing agreement Rs.2.90 per unit from the wind mill commissioned after 15.5.2006 as per the new tariff order of May 2006 by Tamil Nadu Electricity Regulatory Commission. Rates have come in to effect as per TNEB order dt.14.9.07 Confessional wheeling charges levied at 5% for captive use of power under which industries can draw power produced any where in the state at the point of consumption Banking facility allowed subject to 5% charges for using power any time of the year up to 31st March of the financial year Attractive wheeling and banking facilities on charges of 5% each. Favorable terrain in potential locations with easy accessibility Higher PLF of 30% and therefore higher power generation per MW Reasonable power tariff and regular payment by TNEB Adequate infrastructure for power evacuation including permission for investors to put up their own substations Preparation of project report for availing loan etc. Selection of suitable sites, purchase and registration of land Co-ordination and follow up with Govt. and other Statutory Agencies for necessary clearances Assembly, erection and commissioning Operation & maintenance services under AMC Summary Tentative Gross potential - 5500 MW Harnessed up to 30.10.2008 - 4101 MW Wind Electric Generator for power generation Wind mills for water pumping Small wind power generator (Small Aero Generators)
(b) Govt. of Tamil Nadu
4 Why Tamil Nadu is a favourable Destination for Wind Power? 5 Service Offered by Manufacturers / Suppliers 6 Small aero Generators (Mini-wind Mills) (a) Economics (Tentative)
It is a stand alone type generator which can be used to produce electricity for captive purpose. It can be installed at places where wind speed is more than 15 kmph. 41 sites identified. Cost of the system Rs.2.50 3.00 lakhs/ kW. Saves around 2500 kWh per kW per annum depending on wind speed and duration
Compendium of State Government Policies on Renewable Energy Sector in India (b) Eligible categories of beneficiaries 7 Procedure for Obtaining Approval and Technical requirement to be complied with (i) (ii) 8 9 For Registration Payment at the time of registration Community users such as street lighting Direct use of Central and state Govt. agencies Individuals, Industrial users R&D and Academic Institutions
189
3 Sets of application to be submitted to CE/NCES office (As per details given in the order) As per details given in the order Electronic trivector meter with TOD provision to be provided. Individual Energy Purchase Agreement shall be executed with TNEB for purchase of power by TNEB. EPA to be for a period of 15 years or useful life of the plant which ever is less. Wind electric generator are interfaced at 11 kV, 22 kV, 33 kV level depending upon the voltage level of the net work available in the area. Developers to carry out the above work with material specified by TNEB after paying 11% charges on DCW basis. Power to be dispatched to the load centre by means of 110 kV and 230 kV lines.
Metering Arrangement Energy Purchase Agreement (EPA) Power Evacuation Facilities
10
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GOVERNMENT OF TRIPURA
DRAFT POLICY FOR PROMOTION OF GENERATION THROUGH NEW & RENEWABLE ENERGY SOURCES
Sl. No. 1 2 3 4 Title Objective Operative Period Eligible Producers Draft Policy For Promoting Generation of Electricity Through New & Renewable Energy Sources To promote generation of Grid quality Power through New & Renewable Energy Sources. From the date of notification in the official gazette until superseded or modified. 5 Selection Criteria All Power producers generating 10 kW to 25 MW of Grid-grade electricity from RE Sources RE producers in the joint sector, formed by Government agencies & the producers. Power producers generating electricity for captive consumption Companies, Co-operative, partnerships, individuals, charitable societies, Non-Govt. organizations. Financial Criteria: Average annual financial turnover of the Producer on Establishment, Operation & maintenance for last three consecutive financial years to be at least 50% of the Estimated Project cost. Technical Criteria: Producer to have (i) (ii) Collaboration with proven technology supplier of concerned power projects During last 10 years, experience of developing / successful commissioning of two similar projects costing not less than the amount equal to 40% of the estimated cost of the proposed project. Or One similar project costing not less than the amount equal to 60% of the estimated cost of the proposed project. 6 Land Acquisition 7 Selection & Process of Allotment Government Land: Land lease, as per existing Government rules and regulations, subject to its availability. Private Land: Non-Agricultural Conversion of land allowed , if Private/ Agricultural land is purchased by the eligible producers Forest Land: To be considered by the State Forest Department under the existing provisions of Forest Conservation Act. Tripura Renewable Energy Development Agency (TREDA), the State Nodal Agency, invite offers for suitable sites/projects for development in private sector. Project Approval Committee to scrutinize the offers and submit to the Government with recommendations/comments. State Government of Tripura to give final decision on the selection/ award of the projects .Decision of the Government to be final. Producers may also, select suitable sites/projects and submit proposals to the Agency in specified format available with the Agency. Decision on selection/award of the project to be communicated to the concerned producers normally within 3 months from the date of receipt of the proposal but, in no case the period to exceed 6 months. Description Summary
Compendium of State Government Policies on Renewable Energy Sector in India 8 Plant & Machinery 9 Power Purchase Agreement (PPA) 10 Grid Interfacing
191
Agency/ Department and the producer to enter into necessary agreement within one month of approval/award of the project. Plant and machinery of latest design and high efficiency to be preferred for installation. Protective / safety devices as approved by the Department in the grid code to be incorporated in the systems by the producers. Developer to obtain the clearance certificate from the State Electrical Inspectorate before commissioning. Department and eligible producers to enter into a PPA for a minimum period of 10 years. However, if any eligible producer intends to enter into PPA for shorter period, Department to consider such proposal on merit . Interfacing including transformers, panels, kiosk, protection, metering, high tension lines etc as required from the point of generation to the nearest high tension lines, as well as their maintenance to be undertaken by the producer as per the specifications and requirements of the Power Department / Tripura State Electricity Company Limited (TSECL), and producers to bear the entire cost Alternatively, these works and their maintenance could be undertaken by the Department at charges to be decided by the Department / TSECL and the Producer on mutual agreement. Advance intimation to Department / TSECL with the time schedule to be furnished by the eligible producer. Department to undertake augmentation of the sub-station capacity at 33/ 11 kV or higher levels at its cost to receive the power generated. Power Department, Government of Tripura / TSECL to undertake, at its cost, augmentation of transmission lines, if required. Eligible producer at his cost to install the line equipment as required for grid connectivity and install meters at his end to measure the outflow and inflow of energy as per the prevailing Rules and Regulations of the Department. In case of decentralized generation of power for local consumption, Department /TSECL to undertake, at its cost, construction of required local transmission and distribution lines, if the same do not exist in the locality. Department/TSECL to be the owner of the T & D lines constructed at its cost and the producer to pay the wheeling charges to the Department/ TSECL for using such T & D lines. Producer to ensure the "Grid Quality" of power delivered. In the event of technical problem for synchronizing with grid, energy producer to distribute energy locally as stand alone source, as authorized by Department. Producer to comply with grid code including load despatch & system operation code, metering code, protection code, safety code etc. as applicable from time to time in the state of Tripura. Department to transmit on its grid the power generated by producer and make it available to him for captive use or to a third party nominated by producer for sale within the State, at a uniform wheeling charge as decided mutually by the concerned authorities or @ 2% of the energy supplied to the grid. However, CERC/TERC regulations, if any in force, will be the guiding factor in deciding such wheeling charges.
11
Wheeling Charges
192
12 Tariff
Compendium of State Government Policies on Renewable Energy Sector in India It will be compulsory for the Department / TSECL to purchase electricity offered by the producers at a Price fixed by Commission/TERC, as preferential tariff as per provisions of I. E. Act 2003, with no restriction on time or quantum of electricity supplied for sale. Thereafter the rate of increase of tariff every year to be mutually settled between Department / TSECL and the producer. However, at any point of time, the TERC's Regulation on Renewable Purchase obligation and compliance to be a guideline and decision of Commission / TERC to be final. Producer with concurrence of the Department may sell electricity generated to a third party within and outside the State, at a rate to be settled as per regulations of the TERC. However, if the third party is a consumer of Power Department and needs support of the Department's system in case of outage of power from the power station of the producer, the third party will have to pay minimum charges as per Schedule of Tariff of the Department in force. Use of conventional fuel in the process of generation of electricity to be allowed for Biomass based projects in the event of reduced biomass availability Use of conventional fuel to be restricted to 30% on the basis of the criteria applicable for an efficient Duel fuel Biomass based power plants as finalized by the Department State Electricity Corporation or the Agency or the Department, to permit electricity generated to be banked for a period up to one financial year. If the banked energy is not utilized by the producer within one month of the end of the concerned financial year, the same will be treated as purchased by the State Electricity Corporation or the Agency or the Department, as the case may be and will be settled at the rate specified in the Power Purchase Agreement. Producer, within one month upon approval of the project, to deposit with the Department, an amount equal to 2.5% of the estimated cost of the project as security deposit towards completion of the project within the prescribed time frame. Amount to be released on successful commissioning of the project within the time frame. Deposit may be in the form of bank guarantee on any Nationalized Bank.
13
Use of Conventional Fuel
14
Banking
15
Security Deposit
16 17 Transactions Settlement Exemption from Demand Cut
All transactions between the Department and the eligible producer involving wheeling or sale of power to be settled on a monthly basis. A reduction in contract demand to the extent of 30% of installed capacity of the power plants to be permitted by the Department, in case power plant is not utilizing Department's Grid for supply of power to the consumer. Exempted for its captive use or upon sale to a nominated third party.
18
Exemption from Electricity Duty
19
Incentives
Grant of incentives available to Industries: Eligible producers to be treated an eligible Industry and similar incentives to be available to them. Infrastructural facilities such as approach road, water supply, power during construction period, etc. to be provided on the lines of provisions for such facilities to other industrial units if located within Industrial Areas / estates / Growth Centre / Parks. Incentives provided by Central Government : Action to be taken as per existing framework for processing of applications received for various
193
incentives under "North East Industrial and Incentive Promotion Policy (NEIIP), 2007. Sales Tax Exemption: - Renewable Energy equipment and materials shall be exempted from State sales tax / VAT or other state levies or alternately, sales tax/VAT paid by the producer on Renewable energy equipments and materials to be suitably reimbursed to the producer. Free supply of solid waste at site : Concerned Municipal/ urban local bodies to provide garbage at the project site free of cost for urban, Municipal (Solid/Liquid) & industrial waste based power projects. Alternatively, the producers will be allowed to collect the garbage at its own & the concerned Municipal / Urban local body will pay charges to the producers on mutually agreed terms & conditions. Clearances for the project at the State and Central levels. Grant of loans to such projects by Indian Renewable Energy Development Agency (IREDA) and subsidies by the Ministry of New and Renewable Energy (MNRE), Government of India. Producers to be allowed to use water for project construction and for power generation, wherever possible. Cost of modification(s) required, if any, in the existing canal system to be done by the Minor Irrigation Department (MID) or Agriculture Department, at the cost of the producer. MID or the Department entrusted with minor irrigation not to charge royalty for use of such water for initial period of 7 years. In case of mini hydel, the royalties of forest items for construction of reservoirs / dams / Power House / fore-bay / penstocks etc. to be exempted. Sanctioned projects to be completed and commissioned within a period of 12 to 18 months, from the date of issue of formal sanction/approval. If the producer fails to maintain this timeframe without sufficient and appropriate reasons, the approval/sanction to be cancelled and all facilities extended to the eligible producer to be withdrawn. Security Deposit to be forfeited.
20
Facilitation by The Agency
21
Availability of Water for Power Generation
22 Time Frame
23 Sharing of CDM Benefit
CDM benefits between Developer and Beneficiaries will be as : 100% of gross process to be retained by the project developer in the first year after the date of commercial operation of the generating station. In the second year, the share of the beneficiaries to be 10 % which shall be progressively increased by 10% every year till it reaches 50%, There after the proceeds shall be shared in equal proportion, by the generating company and the beneficiary.
24
Monitoring Committee
A State Level Monitoring Committee headed by the Chief Secretary of the state and the Principal Chief Conservator of Forests to monitor the progress of generation of electricity, undertake review of the policy, if required, and makes recommendations to the State Government accordingly. To be ensured by TREDA. For issues relating to grid connectivity & distribution etc., Department to be ensure the delivery of quality power to consumers.
25
Quality Control
194
UTTARAKHAND POLICY FOR RENEWABLE ENERGY SOURCES WITH PRIVATE SECTOR AND COMMUNITY PARTICIPATION
DATED 29 JANUARY 2008
Sl. No. 1 2 3 Order Title Potential Proposed to be Harnessed by 2020 Description Summary No.263/I(2)/2008-04(8)-96/2001 29th dated Jan, 2008 Policy for Promoting Generation of Electricity through Renewable Energy Sources with Private Sector & Community Participation 4 5 6 Applicability Energy Conservation Incentives (i) Sale of Electricity (ii) Wheeling (iii) Banking UPCL to have first right of purchase of electricity UERC to determine price of electricity Government of Uttarakhand to provide guarantee for payments to be made by UPCL for purchase UPCL/PTCUL to transmit the power generated through its grid for captive use or third party sale within/outside the state Wheeling charges applicable and to be announced in advance Hydro Electric Power 600 MW Co-generation 220 MW Biomass/Agro Residue and Waste 300 MW Solar Power Projects To be setup Wind Power To Assess and Exploit the available Potential Urban, Municipal and Industrial Liquid/Solid Waste Few Projects Geothermal Power To exploit the available potential
From the date of Notification in the official gazette of Government of Uttarakhand Energy auditing to be made mandatory for industrial units where load exceeds 25 kW
Allowed at mutually agreed terms T&D lines from generation site to be provided by UPCL/PTCUL Government land, if available to be provided for the project on nominal lease rent of Rs. 1/Sqm for 33 years High level empowered committee headed by Chief Secretary constituted for accord of approvals/clearances through a single window mechanism
(iv) Evacuation of Energy (v) 6 7 Power from Municipal Solid Waste
Single Window Clearance Classification of Projects (A) Hydro Projects
Micro - up to 100 kW Mini - above 100 kW and up to 5 MW Small above 5 MW and up to 25 MW
(i) Self Identified Projects Developers to identify projects, prepare DPR and ask for allotment (ii) State Identified Projects (iii) Allotment of Hydro Projects - Self Identified Projects Eligibility Criteria (a) Micro Projects Individuals who are domiciles of Uttarakhand, States/its sponsored agencies to identify projects, prepare DPR and allot the projects
195
Gram Panchayats of Uttarakhand in the vicinity of the site Societies of Uttarakhand registered under the Society Registration Act, 1860/UP Cooperative Society Act 1965 Individuals who are domiciles of Uttarakhand, Gram Panchayats of Uttarakhand in the vicinity of the site Societies of Uttarakhand registered under the Society Registration Act, 1860/UP Cooperative Society Act 1965 Firms registered under the Company Act 1956 and having their manufacturing units located in Uttarakhand Open to all without reservations Premium to be decided later Technical capability including past experience in developing, constructing or operating Energy Projects maximum 60 marks; Financial capability, including the capacity to invest in the equity of the project and the ability to arrange for institutional finance. The minimum financial capability (Solvency Certificate to be provided) would be Rs.10.00 lakhs for Micro projects and Rs.50.00 Lakhs for Mini projects maximum 40 marks.
(b) Mini Projects
(c) Small Projects
(d) Evaluation Criteria
(e) Mode of Payment (i) Application fee (Non-refundable) (ii) Processing fee (Non-refundable)
In the form of Bank Draft of any Nationalised Bank Rs. 5000/ Micro Projects Mini Projects Small Projects Micro Projects Mini Projects Small Projects Rs. 10,000/Rs. 25,000/Rs. 1,00,000/Rs. 20,000/Rs. 50,000/Rs. 1,00,000/-
(iii) Security Payment (On signing implementation agreement) (f) Allotment of Hydro Projects - State Identified Projects (i) Eligibility and Evaluation Criteria (ii) Allotment Procedures (a) Prequalification
To be provided in the Request for Qualification (RFQ) /Request for Proposal (RFP) biding documents Open competitive biding without reservations through advertisement As per prequalification criteria laid down in RFQ Broadly based on balance sheet, annual report, technical and financial capacity Applicants to be short-listed after evaluation
(b) Financial Bid (c) Premium
Short-listed applicants to submit their financial bids based on premium Above 2 MW and up to 5 MW Rs. 1,00,000/MW Above 5 MW and up to 25 MW Rs. 5,00,000/MW
Note: Project to be allotted to the highest bidder (B) Other RE Projects (i) Allotment (ii) Evaluation Criteria Co-generation, Biomass/agro-residue Wind, Solar, Urban and Industrial Waste projects etc. On self identification and wherever possible on tariff based bidding Technical capability including past experience in developing, constructing or operating Energy Projects maximum 60 marks;
196
Compendium of State Government Policies on Renewable Energy Sector in India Financial capability, including the capacity to invest in the equity of the project and the ability to arrange for Institutional Finance maximum 40 marks
(iii) Mode of Payment (iv) Application fee (Non-refundable) (v) Processing fee (Non-refundable) (vi) Security Payment (On signing implementation agreement) 8 9 CDM Benefits Miscellaneous
In the form of Bank Draft of any Nationalised Bank Rs. 5000/ For projects up to 1MW For projects more than 1MW For projects up to 1MW For projects more than 1MW Rs. 10,000/Rs. 25,000/Rs. 20,000/Rs. 50,000/-
To be passed to the Developers (i) (ii) Not more than three projects in each category (as at item no. 2 above) to be allotted to a developer Preference to be accorded to industrial units located in Uttarakhand in the open competitive bidding process provided the bid is not less than 80% of the highest bid State Government reserves its rights to allot a project to a State owned Enterprise In case Micro/Mini hydro projects remains un-allocated, the same to be allotted to any developer through open competitive bidding If the developer does not restrict to the prescribed time schedule of completion of project, premium to be forfeited and allotment canceled Projects allotted before notification of this policy shall be governed by the policy under which the allotment was made. In case of augmentation of the capacity of self identified projects, the developer to pay additional premium of Rs. 1 lakh per MW or fraction thereof up to 5 MW and Rs. 5 lakh per MW or fraction thereof above 5 MW along with requisite amount to take into effect the inflation from the date of payment of premium. In case the developer sells his projects before commissioning, he has to pay an additional amount equal to the bid premium Projects to be offered for a period of 40 years from the date of award, thereafter they shall revert to the State Government or extended further on mutually agreed terms No royalty on micro, mini and other RE projects Royalty @ 18% of energy generated to be charged from 16th year of operation of small hydro projects which are governed by this policy.
(iii) (iv) (v) (vi) (vii)
(viii) (ix)
10
Royalty
197
UTTARAKHAND POLICY ON HYDRO POWER DEVELOPMENT BY PRIVATE SECTOR (UP TO 25 MW)

Sl. No. 1 2 3 4 Description Potential Identified for SHP Applicability Participation Prequalification Summary 175 MW at 35 identified locations From the date of Notification Independent Power Producers (IPP) to bid for identified projects. 5 Pre-feasibility of Identified Projects 6 Period of Projects 7 Process of Allotment 8 Sale of Power 9 Wheeling Charges Prequalification criteria shall be specified in Bid Documents. Weightage to be given for financial capacity, technical capability and past experience etc. Uttarakhand Jal Vidyut Nigam Ltd. (UJVNL) to prepare pre feasibility studies. Evacuation arrangements to be specified in the pre feasibility studies. Forty years from the date of award To revert back to Govt. of Uttarakhand (GoU) or extended further on mutually agreed terms after 40 years Through advertisement Applications to be submitted along with non refundable draft of Rs. 1,00.000 payable to UJVNL All Bidders will be subject to pre-qualification Pre-qualified Bidders to be provided pre-feasibility studies prepared by UJVNL Bids shall be invited for minimum premium of Rs 5 lakh/MW payable to Govt. of Uttarakhand. Highest Bidder to deposit premium / other amount due, within a period specified in Bid. In case of identical premium for any site, pre-qualification criteria shall be the basis for allotment In case any project fails to get any acceptable Bid despite being bid out twice, the GoU may allot the site to a GoU Agency. HT consumer within Uttarakhand, Local rural grids which are not connected to Uttarakhand Power Corporation Ltd (UPCL) main grid Rural Power Distribution entities Any consumer outside the state or to UPCL All sales to be approved by the Regulator. UPCL to provide infrastructure facilities for wheeling the generated energy UERC to determine the wheeling charges for wheeling the energy generated to third party consumers or outside the state For projects which are bid out prior to determination of rate by UERC, the wheeling charges would be 10% of net energy supplied at the interconnection point No wheeling charges are applicable for sale to UPCL/ rural power distribution entities/local grids within Uttarakhand
198
Compendium of State Government Policies on Renewable Energy Sector in India UPCL to provide standard wheeling and banking agreement draft prior to bidding of the projects IPPs to lay lines for connectivity to the nearest grid substation normally at 132 kV or 33 kV UPCL to determine the specification for evacuation facilities and the same will be specified in the application form. On specific request from IPP, the UPCL to carry out the implementation of evacuation facilities at charges to be mutually negotiated. Allowed within fixed period span of 2 months to be specified in the standard wheeling and banking agreement Energy banked to be monetised at the average pooled purchase price Point of Banking would be the interconnection point at which the energy will be fed in the UPCLs system Developer to pay the difference between monetised value of the banked - in and the banked - Out energy and the peak period differential adjustment within a period of 30 days failing which a penal interest will be levied on the outstanding amount. In case of a balance to the credit of developers, it shall be payable by UPCL within 30 days with a penal interest on overdue settlement
10
Grid Interfacing/ Transmission Line
11
Banking
12 Despatch
Priority for despatch in to the Grid ahead of merit / any other source of supply subject to any overall restrictions on the proportion of power that may be bought from such sources, which may be imposed by the Govt. / Regulator. Exempted for first 15 years of operation on sale of power out side the state/UPCL / consumers in rural areas not served or inadequately served by the concerned existing distribution licensee. For sale to other parties, a royalty of 12% of net energy wheeled, after deducting wheeling charges, or supplied directly without wheeling would be charged. Beyond the 15th year royalty of 18% of net energy wheeled or supplied directly to be made to GoU free of charge by IPPs. In the event of third party sale, electricity duty as per law will apply. No further levies, taxes, charges other than stipulated in the policy would be levied by State Government / its agencies / regulator on the IPPs governed by this policy for a period of 10 years from the date of this policy
13
Royalty (Payment)
14 15 16
Incentives by State Government Transfer of Allotment Time Limit
There will not be any entry tax on power generation, transmission equipment and building material for projects. Free transfer of shares in the companies allotted projects. IPP shall submit DPR & applications for statutory clearances within 32 months from the date of allotment. IPPs to achieve the financial closure within 12 months from the date of receipt of all statutory approvals & clearances. Project to be made operational within 48 months from the date of receipt of all statutory approvals & clearances. Failure to reach above milestones will result in automatic cancellation of allotment of site and forfeiture of upfront premium amounts. Incentives for early commissioning IPP to pay a penalty to GoU in case it fails to make operational the plant within the time limit.
Compendium of State Government Policies on Renewable Energy Sector in India 17 Surrender of Allotment
199
Penalty to be computed at the equivalent royalty revenue that would have been payable to GoU had the project met the milestone. In case the project enjoys an exemption from royalty in the initial years, the duration of royalty exemption would be reduced by period of delay. In case the project is not found techno-economically viable on completion of DPR, IPP may surrender the allotment within the stipulated time frame to GoU On surrender, bank guarantee and upfront premium to be refunded back to IPP
18 Role of UPCL
Preparation of the standard wheeling and banking agreement draft, determination of evacuation requirements and overseeing banking, dispatch and royalty arrangements. Preparation of pre-feasibility studies, carrying out the bidding process and monitoring of the development of allotted projects / delivery as per time schedule. UJVNL will not participate in bidding process. However, after allotment, upon request from the IPP, the UJVNL may consider participating as a minority partner (with less than 50% share holding interest) or perform certain tasks for the bidder on a consultancy basis.
19
Role of UJVNL
20 21
Regulatory Over sight Due Diligence
Aspects of this policy that require regulatory approvals would be subject to such approvals in the manner approved by the Regulator. Applicant / IPP shall be responsible for carrying out due diligence with regard to his compliance responsibilities under various applicable central / state / other laws, rules and regulations and ensure compliance with the same. Vested with the Government of Uttarakhand.
22
200
GOVERNMENT OF UTTAR PRADESH

POLICY GUIDELINES FOR DEVELOPMENT OF SMALL HYDRO POWER PROJECTS UP TO 25 MW CAPACITY IN UP
Sl. No. 1 2 3 Title Power Potential for SHP Major Incentives (a) (b) Announced by Government of India Announced by Government of UP Incentives/ financial assistance for SHP by MNRE, GoI may be availed of by the developer. All necessary facilities for SHP in private sector Land for SHP with sub station to be acquired by the State Govt. and transferred to the private sector at the acquisition cost with out acquisition fee and stamp duty for registration of the land . Government land if required to be made available, for a period of 30 years on lease at fixed rate of Rs.100 per acre, which can be further renewed up to 30 years or lesser period equal to the remaining period of life of the project subject to the approval of both the parties. Private developer shall not be required to obtain Govt. permission for the right of way for construction of transmission line and associated works linking SHP plant with the state grid sub station. However, he shall intimate the owner of private land in advance and adequate compensation for use of private land for over head lines as per rule shall be payable by him. In case of laying of under ground cables in private land, no compensation shall be required to be paid to private owner provided that the land is filled with earth and properly levelled. In case land belongs to State or local bodies no payment to be made for right of way for transmission lines. Power generation from such small hydro power plant shall be exempted from electricity duty. Description Summary Policy Guidelines for Development of Small Hydro Power projects up to 25 MW capacity in U.P. 167 MW identified at 60 locations.
4 5 Taxes and Duties Private Sector Participation
Payable by Developer Identified small hydro power projects to be advertised in order to seek bids from private entrepreneurs'. Bidders to be assessed for pre qualification based on pre determined attributes and only qualified bidders to be considered for allotments, to abide by provision of EA. Project to be advertised widely to seek bids from private entrepreneurs A comprehensive tender document shall be designed for inviting tariff based bids listing out technical and financial parameters. All pre qualified bidders will be subject to pre qualification criteria mentioned in the document. Interested parties may bid for more than one potential site with the condition of submission of separate bid for each site. The state Govt. shall constitute high power committee of experts under the chairman ship of secretary/ principal secretary of additional energy/ energy department for final allotment of project.
Allotment of Project
Compendium of State Government Policies on Renewable Energy Sector in India 7 8 Administrative Charges Clearance by the Irrigation Department UP
201
For private sector allotment up to 15 MW, Non-conventional Energy Development Agency (NEDA) will act as a Nodal agency For projects above 15 MW and up to 25 MW it will be UPJVNL. Accordingly NEDA or UPJNVL be, will act as convener of committee to put the case before the committee for final allotment. The bidder with lowest levelised tariff for 25 years will be considered for allotment for SHP.
Facilitation service charges 0.25% of the project cost payable to NEDA/ UPJVNL. To provide No Objection Certificate to the private developer for setting up of SHP proposed after the allotment has been made within 60 days from the date of application by private developer. To provide all assistance in the development of SHP as and when required within stipulated time frame work. After allotment the private developer shall sign a MOU with the nodal agencies NEDA/ UPJVNL If the applicant does not take effective steps to implement the project within six months from the date of allotment of project, the allotment could be cancelled and considered for re-allotment to any other development or Govt. agencies for implementation Nodal agencies to assist the developer in obtaining statutory /necessary approvals required to build and operate the small hydro power project. The entire cost of SHP including civil works, E&M works shall be borne by private developer. Since the developer is required to sell power to UPPCL / state DISCOMs, 50% of the cost of transmission system shall be borne by the developer and balance 50% by the UPPCL/ state DISCOMs. Private developers to be responsible for laying lines for connectivity to the nearest grid substations at the appropriate voltage which may normally be 132 kV or 33 kV For use of river/ canal water, water royalty shall be charged @ 5 paise per unit sold to be payable by the developer.
9 Operational issues
202
GOVERNMENT OF WEST BENGAL

POLICY ON MINI/ MICRO HYDRO ELECTRIC POWER STATION UP TO 3 MW
Sl. No. 1 Description Eligibility Summary High and extra high voltage industrial consumers to set up captive power plant through non-conventional energy sources including Mini/ Micro Hydro Electric Power Station up to 3 MW 3 Banking Facilities 4 Power and Sale of Unused Power Wheeling charge of 30 paise /kWh that will be revised from time to time. Wheeling of power will be allowed to not more than one unit of the same Industrial Undertaking. Industrial undertaking to lay its own transmission lines and the associated system up to the nearest grid sub-station of the utility. Developers to maintain the transmission lines. Allowed for a period of six months The industrial undertaking will be allowed to draw power from the bank during different time blocks of the day. If the banked energy is not used for six months it will be sold to the utility at a rate equivalent to weighted average of the sent out fuel cost of Thermal Generating Station of the utility. The entire power/ energy generated at the captive power plant shall be injected to/ banked with utilitys grid. The amount of energy injected to the grid along with the quantum of energy withdrawn from the Bank each month, shall be shared by the companys constituent member of Joint Venture Project in a manner to be intimated in writing to the utility at the beginning of each year. A consumer having Solar P.V. installation to be allowed to inject his surplus energy to the grid with the banking facility as admissible for industrial undertaking having captive Hydel Power Station up to 3 MW. There will be no provision of sale of power by the industrial undertaking to any third party. However, a captive power plant set-up through a joint venture company constituted by a maximum of 2 industrial undertakings will be eligible to exclusively consume the power from the captive power plant in one unit each of the participating industrial undertaking in the joint venture company. Captive power can be wheeled through the system of one utility only.
Transmission and Wheeling of Power Generated
5 Payment
The industrial undertaking shall have to ensure payment of AMGR as per power supply agreement executed by them with the utilities

Comparative Study of SHP in Various States Upto 2010

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Comparative Study of SHP in Various States Upto 2010

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CONTENTS

GLOSSARY & ABBREVIATIONS

GLOSSARY & ABBREVIATIONS

ARR Banking of Power

Captive User CBG CBR CD CDM

4 CEA CEO CERC CER CFA Check Meter

Compendium of State Government Policies on Renewable Energy Sector in India

Compendium of State Government Policies on Renewable Energy Sector in India

6 Hz IA IC ICB IDC IEGC Import Meter

Compendium of State Government Policies on Renewable Energy Sector in India

Compendium of State Government Policies on Renewable Energy Sector in India

NO NOC NPV OA Open Access

O&M PAT PEA PF PFR PLR PPA/PSA Project

Compendium of State Government Policies on Renewable Energy Sector in India

Compendium of State Government Policies on Renewable Energy Sector in India

10 TEC TEFR TL TOD TP TPC TPH TPS

Compendium of State Government Policies on Renewable Energy Sector in India

Wind Farm WPD WPI WTGs Year

COMBINED SUMMARY OF STATE POLICIES

COMBINED SUMMARY OF STATE POLICIES FOR SMALL HYDRO POWER PROJECTS

Operative Period Sale of Power and Tariff

Name of State/ Description Water Royalty

Andhra Pradesh Percentage generated of energy

Bihar (From RE policy of State)

COMBINED SUMMARY OF STATE POLICIES FOR SMALL HYDRO POWER PROJECTS

Sale of Power and Tariff

Name of State/ Description Banking

Himachal Pradesh Up To 5 MW Allowed

Himachal Pradesh Above 5 MW

Compendium of State Government Policies on Renewable Energy Sector in India

Payable to SG at prescribed rates

Power Evacuation and Grid Interfacing

Incentives and General

As per MNRE/HP Govt. Incentives for commissioning early

COMBINED SUMMARY OF STATE POLICIES FOR SMALL HYDRO POWER PROJECTS

Sale of Power and Tariff

Banking Water Royalty

Name of State/ Description Power Evacuation and Grid Interfacing

Kerala (Captive Plant)

Incentives and General

COMBINED SUMMARY OF STATE POLICIES FOR SMALL HYDRO POWER PROJECTS

Operative Period Sale of Power and Tariff

Date of publication superseded or modified

Name of State/ Description

Meghalaya (From RE policy of State)

Wheeling and transmission losses as per MERC

Wheeling charges @ 2% of the energy fed to the grid.

Compendium of State Government Policies on Renewable Energy Sector in India

Allowed 100% of energy every financial year on payment of 2% of banked energy.

Not exceeding 10% of the tariff for electricity consumers

Power Evacuation and Grid Interfacing

Developer to bear the entire cost.

Incentives and General

Name of State/ Description

Maharashtra Incentives for commissioning early

Compendium of State Government Policies on Renewable Energy Sector in India

COMBINED SUMMARY OF STATE POLICIES FOR SMALL HYDRO POWER PROJECTS

Compendium of State Government Policies on Renewable Energy Sector in India

Sale of Power and Tariff

To the bulk suppliers/ distribution licensee

Wheeling charges of 2% of the energy supplied to the grid.

2% of energy fed to the grid

Name of State/ Description