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Renewable Energy Department, Haryana & HAREDA
Akshay Urja Bhawan
Institutional Plot No.1
Sector 17
Panchkula Pin: 134109
0172-2587233, 2587833..View more
State Renewable Power Policy

            The Haryana Govt. vide its Notification No.  22/69/2005-5P dated 23rd November, 2005 has notified the Policy for Promoting Generation of Electricity through Renewable Energy Sources which was further amended vide Notification No. 22/69/2005-5Power dated 19th June, 2008 and No. 22/72/2005-5Power dated 29th March, 2010. The salient feature of this Policy are highlighted as under:-


To create conditions conducive for the involvement of private sector or public –private  sector participation in Renewable  Energy Sources  based power projects in the State.

2.       TARGET

The State Govt. aims to achieve a minimum of 10%(i.e. 500 MW )  of the total capacity addition of 5000 MW of conventional power to be   generated through Renewable Energy Power Projects by 2012 as per Ministry of Non-conventional Energy Sources, Govt. of India’s policy .



  i)          To promote setting up of Biomass Based Power Projects.

 ii)          To promote Co-generation Power Projects.

 iii)         To promote Small Hydro Power Projects

 iv)         To promote Wind Energy Based Power Projects

 v)           To promote Solar Energy Based Power Projects.

 vi)          To promote Waste to Energy Power Projects based on  Urban, Municipal and Industrial Waste.


4.         THRUST AREAS


4.1       Power Generation from biomass.

A potential of generation of 1400 MW of power through biomass exists in the State. The State Govt. is committed to exploit this potential. 


4.2       Power Generation through bagasse co-generation

 To harness the potential of cogeneration in cooperative / private sector sugar mills which is estimated to be 100 to 150 MW.


4.3       Power Generation through small hydro power projects.

 To harness 45 MW of power which can be generated through     the water falls available at various locations in canals of the State.


4.4       Municipal Solid Waste


The daily availability of Municipal Solid Waste in cities like Faridabad, Gurgaon, Ambala, Sirsa,Yamunanagar, Panipat,Rohtak, Bhiwani,  Sonepat, Hisar is between 120 metric tonnes to 600 metric tonnes.  Waste to energy power plants or fuel palletisation plants based on  Municipal Garbage can be set up in these cities to generate about 17MW of power.


4.5       Solar Energy


The solar insolation  level in the State is in the range of 5.5 KWH to 6.5 KWH per of area and the State has about 320 clear sunny  days in a year.  This offers a great potential for using solar energy for various thermal and electrical energy applications in the State. 


4.6       Wind Energy


Sufficient untapped wind energy power potential is available in the State specifically in the Morni hill area of Distt.Panchkula and Aravelli Hills  in Southern Haryana.  Wind Monitoring Stations are being set up in Panchkula, Gurgaon and Mahendergarh districts to assess  the available  wind potential for power generation in the State.


5.         NODAL AGENCY


 Haryana Renewable Energy Development Agency (HAREDA) shall be the State Nodal Agency for co-ordinating all activities relating to  Renewable Energy Development including generation of power using non-conventional energy sources.  HAREDA shall be responsible for  laying down the procedure for inviting the proposals from Independent Power Producers (IPPs), DPR preparation, evaluation of project  proposals, project approvals and project progress monitoring etc.


 It shall function as a single window clearing Agency for all Renewable Energy Power Projects for facilitating necessary clearances and  approvals on behalf of the Govt. of Haryana.




The scheme of promotional and fiscal incentives as contained herein will come into operation with the date of its notification in the official  gazette and will remain in force till a new policy is notified.




Those who intend to generate electricity from Non-conventional Energy Sources such as Solar, Wind-Electric Generators, Biomass  Combustion, Cogeneration, Municipal and Industrial Waste, Small Hydro (upto 25 MW) and New Technologies like Bio-oil, Fuel Cell etc.   There will be no restriction on generation capacity or supply of electricity to the grid.


 There shall be no restriction on legal structure of entrepreneur in generation of power.  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. would all be eligible producers provided they undertake to generate  power from non-conventional energy sources, and fulfil the laid down conditions.




 i)          Interfacing, including transformers, C & R panels duly equipped with the requisite protection schemes, marshalling kiosks, kiosk protection, metering, High Tension inter connection points  from the points of generation to HVPN, UHBVN, DHBVN and any other licensee nearest Light/High Tension lines etc. as well as maintenance of Light Tension lines will be as per the orders of the Haryana Electricity Regulatory Commission/Central Electricity Regulatory Commission/ Appellate Tribunal for Electricity  on Renewable Energy Tariff & other issues, as modified from time to time “


 ii)         Depending upon the generation capacity, if the sub-station capacity at 33/11 KV or higher levels, is required to be augmented for 66 KV or higher capacity, transmission lines are to be provided. This will be undertaken by the Licensee/ Utilities at the cost of power producers.


 iii)         Two sets of separate meters will be installed on the H.T.side by the producer, as main meters and check meters. In case of co-generation/ captive power generation two sets of separate meters will be installed, one for export of power and other for import of power.


 iv)        Necessary current limiting devices will 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.


 v)         There shall be no restriction on the generation capacity of the project.”




 Licensee/ Utilities will undertake to transmit on its grid the power generated by power producers using non-conventional energy sources and  make it available to the producer for captive use or to a Third Party within the State as per approved tariff including surcharge, additional  surcharge, if any,  notified by HERC  from time to time.    If H.T./ L.T. lines required to be laid beyond Licensee/ Utilities lines for wheeling  the power at any desired point, then the cost of the same shall have to be borne by the promoter/ power producer.  In case, the power is to  be sold to a third party, the name of such party shall be indicated by the power producer at the time of making an application in the  prescribed form of Licensee/ Utilities.  However, in respect of third party sale, licensee/ utilities would have preference over the power  generated by the power producers and third party sale would be allowed when the surplus power is not being evacuated by the licensee/  utilities.




(i)         New Projects


 Licensee/ Utilities will purchase electricity offered by the power producers in case of new projects set up after the notification of the present  policy at the rate to be decided by the Haryana Electricity Regulatory Commission as per provisions in the New Electricity Act,2003.


 (ia)       “HAREDA  shall invite proposals from IPPs through competitive bidding route and the IPPs will be asked to offer their most  competitive rate on which they want to sell  power to the State Power Utilities and the offered rate should not be more than the tariff decided  by the HERC from time to time.”


(ii)         For old  captive/co-generation projects which are having surplus power to offer for sale to the power utilities, the tariff  shall be negotiated  tariff based on negotiation between the power producers and the power utilities. 


11.       BANKING:


 HVPNL/ DHBVN/ UHBVN/ licensee is to permit electricity generated by eligible producers to be banked.  The banking facility shall be  allowed for a period of one year by the Licensee/  Utilities free of cost. However, withdrawal of banked power should 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 with the concerned  power utilities/ licensee, it will automatically lapse and no charges shall be paid in lieu of such power.




 Non-conventional energy sources power generation and its sale to the Licensee/ Utilities or third party or for its captive use shall be exempted  from the electricity duty.


13.       WATER CHARGES:


 Producer will be allowed to use the 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.




 Local Area Development Tax will be exempted on plant, machinery, equipment that has been capitalized in view of the provisions of section  5(f) of Haryana Act No.13 of 2000.




 The co-generation projects should be designed to use and should use non-fossil fuels such as bagasse, biomass, biogas, agricultural waste  such as rice husk, ground nut shells etc.  The use of conventional fossil fuels in these cogeneration projects may be necessary during the  period of off-season to augment the non-fossil fuels and therefore, the use of same shall be allowed as per Ministry of Non-conventional  Energy Sources, Govt. of India policy in this respect from time to time.


 The “fuel cost pass through” on this account shall not be 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.




             All new projects will be treated as “Industry” in terms of Industrial Policy , 2005 and all the incentives available to new projects will be  applicable  as per Industrial Policy, 2005.




 The Power Purchase Agreement (PPA) to be signed between IPP and concerned power utilities / licensee shall be valid for a minimum  period of 20 years or more depending on the plant’s life.  After this period, this 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.




18.1     The State Govt. will acquire land if necessary at the cost of Independent Power Producers (IPP) if a request to that effect is made.


18.2     Setting up of Renewable Energy Power Projects in the State will be permitted by the Town & Country Planning Department without levying of  change of land use charges, External Development Charges, Scrutiny Fee and Infrastructure Development  Charges.





19.1      A comprehensive bid document shall be designed for inviting proposals from the Independent Power Producers, listing out technical and  financial  parameters for evaluation of the bids. On the basis of evaluation parameters contained in the tender document, bids shall be  evaluated by the Technical Appraisal Committee.


19.2      For the proposals for which the sites are identified by the Independent Power Producers, the proposal with DPR will be submitted by IPP to  HAREDA for its consideration and sanction (in accordance with clause No. 7 Part-III of the Electricity Act, 2003).


19.3     The proposal shall be considered by HAREDA as per the procedure laid down for approval of Renewable Energy Power Projects.  HAREDA will ensure that the proposed project shall not  affect the viability of the earlier allocated/ commissioned projects.






20.1     HAREDA shall invite proposals from private national/international investors through press advertisement.


20.2      A Technical Appraisal Committee (TAC) shall be constituted by the State Govt. to appraise the proposals / bids  in terms of technical and   financial capabilities, scrutinizing the techno-economic feasibility.  The TAC is authorized to seek any additional information from the bidders  to supplement the proposals and will submit its report within two months.


20.3      Project upto 5 MW capacity will be considered and approved by the Board of Governors of HAREDA on the recommendations of TAC  within two months time.


20.4      For the projects above 5 MW capacity, a High Powered Committee constituted  by the State Govt. under the chairmanship of Chief  Secretary, Govt. of Haryana  (Appendix-I ) shall consider  the report of Technical Appraisal Committee, shortlist, prioritize and approve /  reject the investment proposals for allocation of sites for preparation of Detailed Project Reports (DPR) by the private investors within two  months time. The High Powered Committee can co-opt any other members /experts as its member for a particular meeting with the approval  of the Chief Secretary.  


20.5      Once the proposal has been approved by the Board of Governors of HAREDA / High Powered Committee, HAREDA will enter into an  MOU with the private investors for preparation of DPR and implementation of the project within one months time.


20.6      After approval of DPR by the HAREDA, the private  investors is required to enter into PPA with  the concerned  power utilities/ licensee  for  the sale of power to it or to the third party after getting necessary approval from the Haryana Electricity Regulatory Commission(HERC)


20.7      The Power Producer and the concerned Power Utility/ licensee shall make efforts to enter into Power Purchase Agreement  within two  months time from the date of providing the clearance. In case there is delay beyond this period then either party can approach the Haryana  Electricity Regulatory Commission for decision in this matter within another two months.


20.8      If the applicant does not take effective steps to implement the project as per time schedule for submission of DPR, signing of Power Purchase  Agreement, Financial Closure of project & execution of project  mentioned in the Memorandum of Understanding signed with HAREDA, the  allocation could be terminated and the site shall be allocated to another applicant and the security deposited with the HAREDA by the power  producers shall be forfeited.




 Govt. of Haryana in Renewable Energy Department shall have the powers to amend / relax / issue clarification, if any, on any matter related to  interpretation of any provisions under the policy in consultation with the concerned Govt. Departments / Agencies.


                                                APPENDIX –I





1.         Chief Secretary, Haryana                                           Chairman


2.         Secretary, Finance Department                                 Member


3.         Secretary, Local Bodies Department                         Member


4.         Secretary, Power Department                                    Member


5.         Secretary, Irrigation Department                                Member


6.         Secretary, Agriculture Department                             Member


7.         Secretary, Renewable Energy Department               Member


8.         Secretary, Industries Department                              Member


9.         Secretary, Town & Country Planning                         Member


10.       Secretary, Environment Department                          Member


11.       Secretary, Forest Department                                    Member


12.       Director,Renewable Energy Deptt.                             Member





Downloadable Pdf: State Re Policy.pdf